GLOSSARY

Under the Incoterm CIF (cost, insurance, and freight), the seller assumes the responsibility for all of the arrangement and transportation costs for shipping goods to the destination port. The buyer will then assume all further responsibilities once the ship has reached port. CIF is broadly similar to the term CFR (Cost and Freight), with the exception that the seller is required to obtain insurance for the goods while in transit.

Container Load Plan is a document prepared before loading cargos into a container. CLP discloses the details of the cargos, such as individual weight, total weight, measurements, markings, shipper information, the origin of goods and destination, and location of cargos within the container.

Carrier-owned Container (COC) is the shipping container owned by the carrier.

A cold chain is a low temperature-controlled supply chain. An unbroken cold chain is an uninterrupted series of refrigerated production, storage and distribution activities, which maintain a desired low-temperature range.

A commerical invoice is a document prepared by the seller to indicate the value of goods and request payment from the buyer. It is also used by customs authorities to calculate duty.

The consignee is the party that receives goods from a carrier when transportation is complete. The party that sends goods is the consignor.

The consignor is the party that sends goods. The consignee is the party that receives goods from a carrier when transportation is complete.

Consolidation is when a carrier or a shipper combines several smaller shipments (less than container load) into one full container.

Credit memo, also known as credit note, is a document sent by a seller to a buyer which includes information about a credited amount to the buyer's account.

Cross trade shipments occur when cargo is shipped from one country to another without passing through the country that the shipper’s business has been registered in. Cross trade is also known as triangular operations or intermediation.

A Customs bond is a financial guarantee filed between three parties: the principal, the insurance/surety agent, and U.S. Customs. The bond’s purpose is to make sure that all duties, taxes, and fees owed to the U.S. federal government will be taken care of.

Customs Broker is a firm that represents importers/exporters in dealings with customs. Normally responsible for obtaining and submitting all documents for clearing merchandise through customs, arranging inland transport, and paying all charges related to these functions.

The submission of documents related to shipment for CBP (Customs and Border Protection) review and release.

The last date that the container can be returned to the port terminal to make the requested schedule. It’s usually two days before the departure date, but will vary depending on the carrier and the port.

Container yard (CY) is a designated storage area for containers in a terminal or dry port before they are loaded or offloaded from a ship. It is a physical facility which ocean carriers accept and deliver ocean containers, as well as issue and receive back empty containers.

Container Yard to Container Yard. It means the carrier will start handling your container from the origin port and complete their handling process at the destination port.

DA (destination agent) is a person or company that facilitates cargo movement and arranges shipments for arrival at the destination port. Destination agent is also known as a freight forwarder.

If the goods are sent on DAP (delivered-at-place) basis, the seller is responsible for the delivery of the goods including transport costs to the named destination of the buyer.

Dry Container or Dry Cargo Container. It is used for transporting all types of goods, except liquids. The dry container comes in a variety of sizes, 20′, 40′ or slightly above 45′. In logistics DC may also stand for Distribution Center.

Destination Delivery Charge (DDC) is a charge based on container size applied in many tariffs to cargo. DDC is considered accessorial and is added to the base ocean freight.

In DDP (Delivery Duty Paid): Seller takes responsibility for all risk and fees of shipping goods until they reach their destination.

Delivered Duty Unpaid (DDU): Seller is responsible for ensuring goods arrive safely to a destination; the buyer is responsible for import duties.

Debit memo, also known as debit note, is a document issued by a seller to a buyer to notify current debt obligations. Such transactions often involve an extension of credit, meaning a vendor sends a shipment before an official invoice is sent or the buyer's cost is paid.

Also known as DEM or demurrage charge. Demurrage is a container storage charge at a port collected by a shipping company.

An item's weight and dimensions.

When freight is density-based, the freight’s density will determine the class. The NMFC code will tell you how to class your item. Some items have a permanent class, whereas others could be classed based on density, packaging, value, or other factors.

DET (detention) is the charge to store containers at the shipping lines' warehouse. Similar to DEM fees, DET fees also have a policy of free container storage for a period of time (or days).

A DO (delivery order) is a document issued by the shipper, carrier or freight forwarder instructing the shipping line and the port operator to turn over the cargo to the party responsible to carry out the import activities.

Transport of goods over a short distance. It is part of a longer overall move, such as from a ship to a warehouse.

The e-AWB is the term IATA uses to describe the interchange of electronic data (EDI) messages, in lieu of a paper air waybill, to conclude the contract of carriage.

EGM (Export General Manifest) is a form filed by the carrier at the time of the shipping process, along with other shipping bills filed by the exporter.

An express release means that the original HBL (House Bill of Lading) was never issued or printed. In these cases, the shipper has fully released the goods from the start and is not pending any type of payment for the goods.

In Ex Works (EXW) the seller makes a product available for pick up at a specific location normally the seller's premises, and the buyer has to pay the transport costs.

FAK (Freight All Kinds) refers to the FCL (full container load) of mixed shipments for different consignees. FAK combines different classes of shipments into a given classification to be transported as a single shipment at a fixed rate.

FBA is a program run by Amazon online retail offering warehousing, packaging, and shipping services through the Amazon platform.

Under the FCA Incoterm, the seller is responsible for delivering the goods to an agreed port. The seller then transfers the cleared goods to the carrier appointed by the buyer. The seller includes transportation costs in its price and assumes the risk of loss until the carrier receives the goods. At this point, the buyer assumes all responsibility.

Full container load (FCL) is when the shipper utilizes all the space in a container.

FCX is a container for a single consignee with cargo combined from multiple suppliers.

Forty-foot Equivalent Unit. FEU is the 40-foot length container which is also known as 2 TEU (twenty-foot Equivalent Unit).

Federal Maritime Commission (FMC) is the U.S. Federal Authority governing sea transport.

Free on Board (FOB) is a term used to indicate whether the seller or the buyer is liable for the goods during shipping. "FOB origin" means the buyer is at risk once the seller ships the goods. "FOB destination" means the seller retains the risk until the goods reach the buyer.

A freight forwarder is a shipping agent specializing in freight shipping. To its customers, a freight forwarder is the carrier. To a carrier, the freight forwarder is the shipper.

Fuel surcharge is an additional fee to recover increased fuel cost, most often imposed for airfreight.

General Rate Increase (GRI) is the amount by which ocean carriers increase their base rates across specific lines, generally as a result of increased demand.

HACCP is a process control system that identifies where hazards might occur in the food throughout the entire supply chain.

Minimum Market Guidelines. See Open Rate.

Minimum Rate Guidelines. See Open Rate.

When a freight forwarder handles the freight negotiations for a particular named account, the carrier quotes the forwarder a special rate for that named account only. The forwarder then books the freight on behalf of the named account with a Named Account Rate.

Open rates are generally the highest rates with at least 3 months of validity. An open rate is typically quoted if you are a new customer to the shipping line. Open rate is also known as MRG (Minimum Rate Guidelines), MMG (Minimum Market Guidelines), and Tariff Rates.

Spot Rates are used to entice more shipments for a specific voyage within a specific short time frame. When a shipping line is low on bookings due to low demand, it may offer spot rates for a particular time frame.

HBL (House Bill of Lading) is issued by a freight forwarder on receipt of goods from shipper agreeing to deliver goods at destination.