Maritime, Shipping and Commercial Terms,
Expressions, Abbreviations, Measuring Units, etc.
Cost and Freight. Terms of sale. Seller quotes price including the cost of goods and all transportation charges to the named point of destination.
· Corrective Action
· Current Account
Goto : Currency Adjustment Factor.
Transport of goods between two locations within the same country.
Special section specifically for ad Valorem type cargo.
The vessel ‘s stay in port.
A vessel-specific code to be used for the communication between vessels, port authorities and other relevant participants in international trade.
Corrective Action Request
Goods carried on a ship covered by a B/L.
Doors at cargo warehouse where vehicles back in to load/unload cargo.
The physical handling of goods.
An invoice of all cargo loaded on board a vessel. Entire listing of all cargo on board a vessel is required by the relevant local authorities. Same as Manifest.
Cargo Payment Methods
CAF : Cost, Assurance, and Freight CIF : Cost, Insurance and Freight C&F : Cost and Freight
Seller quotes a price including cost of transportation to the named destination. Title passes when the goods arrive at this point and not when the goods are shipped.
FOB : Free on Board. Destination Freight Collect. Title passing to buyer, and freight charges being paid by buyer.
Cargo Release Control Book
List of Bills of Lading per vessel which is used to control freight payment and their release to the pier.
A message sent by an agent to all relevant parties, with the aim of establishing the whereabouts of missing or overlanded cargo.
Carriage and Insurance Paid (CIP)
Means that the seller delivers the goods to the carrier nominated by him but the seller must in addition pay the cost of carriage necessary to bring the goods to the named destination. This means that the buyer bears all risks and any additional costs occurring after the goods have been so delivered.
However, in CIP the seller also has to procure insurance against the buyer's risk of loss of or damage to the goods during the carriage. Consequently, the seller contracts for insurance and pays the insurance premium. If subsequent carriers are used for the carriage to the agreed destination, the risk passes when the goods have been delivered to the first carrier. The CIP term requires the seller to clear the goods for export. This term may be used irrespective of the mode of transport including multimodal transport.
Carriage Paid To (CPT)
means that the seller delivers the goods to the carrier nominated by him but the seller must in addition pay the cost of carriage necessary to bring the goods to the named destination. This means that the buyer bears all risks and any other costs occurring after the goods have been so delivered. If subsequent carriers are used for the carriage to the agreed destination, the risk passes when the goods have been delivered to the first carrier. The CPT term requires the seller to clear the goods for export. This term may be used irrespective of the mode of transport including multimodal transport.
One who owns, operates or charters vehicles of transportation for movement of cargo.
U.S. Custom’s form used in lieu of Bill of Lading.
The inland transport service, which is performed by under the sea-Carrier’s
responsibility under the terms and conditions of a tariff and of the relevant transport document (B/L).
The Carrier has the right to exercise a lien on cargo on "freight collect" shipments and thus retain possession of the goods as security for the charges due.
Cargo Acceptance Service Pattern
Commodity Box Rate
Cubic Meter - 35.314 cubic feet.
Connecting Carrier Agreement
Container slot where container fits into place on vessel.
Steel bars and rails used to steer containers during loading and discharging whilst loaded in the ship.
The location of a cell on board of a container vessel identified by a code for successively the bay, the row and the tier, indicating the position of each container on a vessel.
A vessel specially designed, built, and equipped for the transport of containers.
Goto : Council of European and Japanese National Shipowner's Associations.
Certificate of Classification
A certificate, issued by the classification society which states the class of a vessel.
Certificate of Origin
Formal document (required at destination) stating origin of cargo and relevant cargo details.
Goto : Cost and Freight
Goto : Container Freight Station.
Loose containerisable cargo handled in a container freight station (warehouse).
Container freight station charge, assessed by Carrier for the handling of cargo at the terminal.
Cargo received and stuffed by Carrier at origin and de-vanned by Carrier at destination.
Cargo received and stuffed by Carrier at origin then delivered intact at destination.
Chains & Binders
Equipment used to secure (brace & chock) oversized cargo to equipment.
A contract in which the shipowner agrees to place his vessel or part of a vessel at the disposal of a Charterer for the purpose of carrying goods, against a freight per ton of cargo, or a daily hire.
Vessel whose owner makes vessels available on bid basis.
The signatory to a charter party with the owner of a vessel who thus hires or leases a vessel or a part of its capacity.
Trailer or wheeled unit on which a container is placed in order to move container over the road.
Customer Information Application.
Goto : Cost, Insurance and Freight
Goto : Carriage and Insurance Paid
A request for payment by a customer due to shortage or damage to cargo.
Request for advice concerning the status of a claim.
An organisation whose main function is to carry out surveys of vessels, with the purpose of setting and maintaining standards of construction and maintenance of vessels, engines, and safety equipment. A classification society also inspects and approves the construction standards for containers.
Clean Bill of Lading
A Bill of Lading which does not take exception from the apparent order and condition of the goods to be transported.
Clean on Board
Mention specifying that the Bill of Lading is issued without exceptions.
Container Loan Plan. Describes how the inside of container is stowed with cargo.
a. Contribution Margin
b. Current Month
a. Change of Destination
b. Continue on Docket
c. Cost of Diversion
d. Cash on Delivery
Codabar is a variable length barcode that can encode 16 data characters including 0-9, plus the symbols - $ ; / . +. Codabar is used primarily for numeric data.
Code 128 Auto
Code 128 is a variable length bar code that is capable of encoding the entire 128 character ASCII character set. Code 128 allows three subsets, A, B and C. This version, "Code 128 Auto", will automatically select the subset that will produce the smallest bar code.
Code 128 is a variable length bar code that is capable of encoding the entire 128 character ASCII character set. Code 128 allows three subsets, A, B and C. This subset (A) allows all standard upper case alpha-numeric keyboard characters plus control characters.
Code 128 is a variable length bar code that is capable of encoding the entire 128 character ASCII character set. Code 128 allows three subsets, A, B and C. This subset (B) allows all standard upper case alpha-numeric keyboard characters and lower case alpha characters.
Code 128 is a variable length bar code that is capable of encoding the entire 128 character ASCII character set. Code 128 allows three subsets, A, B and C. This subset (C) includes a set of 100 digit pairs from 00 to 99 inclusive. This allows double density numeric digits, two digits per bar coded character.
Code 3 of 9
This bar code is an alphanumeric bar code allowing uppercase letters and numbers. Each character consists of nine elements. 3 of the nine elements are wide, hence the name "3 of 9".
Code 93 is an alpha-numeric bar code allowing upper case letters and numbers. BarCode/VBX will convert lower case letters to upper case before encoding them.
Container on a Flat Car. Containers moving on articulated flat rail cars without chassis.
An empty space between two bulkheads or two decks separating tanks, the engine room or other compartments from each other.
Collapsible Flat Rack
Specialised flat rack on which either/both ends can collapse to accommodate odd-sized cargo (® Flat Rack).
Transport where the major part of the journey is by f. inst. sea and any pre-/on-carriage is carried out by another mode such as road.
Combined Transport B/L
Transport document providing for a combined transport by at least two different modes of transport from a place at which the goods are taken to a place designated for delivery under the responsibility of the Carrier.
A document stating the values of the transaction between the buyer and seller.
Remuneration payable to an agent by the Principal, usually a percentage of the freight revenue.
Indication of the type of cargo.
Commodity Box Rate
A freight rate classified by commodity and offered per container.
Point reached by two or more transportation lines.
Tariff published by or for the account of two or more transportation lines as issuing carriers.
A letter of guarantee from a company relieving the Carrier of responsibility associated in the release of goods without an original Bill of Lading. This practise should be exercised with extreme caution, and cannot be recommended.
A programme that can "infect" other programs by corrupting data so as to possibly include a replicated copy of itself.
Devices for facilitating the positioning of containers. The cones insert into the bottom corner castings of the container.
a. A group of steamship companies offering equal freight rates, standardised shipping practices and regularly scheduled service between designated ports. In the USA, these arrangements are given anti-trust immunity as authorised by the Shipping Act of 1984.
b. Group of Carriers allowed by FMC to determine rate levels, service and rules of a given trade route bound together by a common tariff or certain geographical area.
Carrier that belongs to the Conference.
Certificate declaring that the Carrier is a member of the conference.
Administrative officer hired by the member lines of a conference to over® the day-to-day operations of the conference.
Specific language mandated by the conference basic agreement prohibiting the promulgation of confidential conference information.
Accumulation of vessels at a port resulting in waiting time for arriving vessels to load or discharge for a vacant berth.
An intermediary Carrier utilised to connect cargo to/from mother vessel.
The party listed in the Bill of Lading to whom the cargo or containers is destined.
Internal code assigned to each Consignee.
A volume of goods to be transported from a Shipper to a Consignee via one or several modes of transport and specified in one single transport document (B/L).
Instructions from either the Shipper or the Consignee to a freight forwarder, Carrier or his agent, or other provider of a service, with respect to the cargo movement and associated activities.
To group and stuff several small shipments together in one container.
Container stuffed with several shipments from different Shippers for delivery to one or more Consignees.
Effort extended to put same destination cargo together in same container for ease of delivery.
Location where the consolidation of consignments takes place.
A firm or a company which provides consolidation of cargo.
Group of Carriers pooling resources in a trade lane to maximise their resources efficiently.
A document produced by the shipper/seller of goods an accurate description of the merchandise and the country of origin. All items are itemized and with actual price.
Copy of the B/L signed for consulate purposes.
Some shipping documents must be presented to the Consul for legalisation either prior to or just after sailing.
Container (Freight Container)
An item of equipment as defined by the International Organisation for Standardisation (ISO) for transport purposes. An enclosed permanent, reusable, non-disposable, weather-tight shipping conveyance, usually fitted with hardwood floors. A rectangular unit used for shipment, generally made of steel or aluminium; standard lengths are 20’ and 40’, 8’ wide.
A vehicle specially built for the purpose of transporting containers so that the container and chassis serve as a road trailer when assembled.
Container Check Digit
The 7th digit of the serial number of a container used to check whether prefix and serial number of the container are correct.
Storage location for empty containers.
Container Freight Station (CFS)
A facility at which (export) small cargo lots are received from Shippers for loading (stuffing) into containers or at which small cargo lots (import) cargo are unloaded (stripped) from containers and delivered to Consignees.
The contract by which the owner of containers (lessor) gives the use of containers to a lessee (Carrier) for a specified period of time against fixed payments.
Container Load Plan
A list of cargo loaded in a specific container and possibly their sequence of loading.
Identification number assigned to each container (MAEU 1234567).
Where containers are stored usually inland for container availability to accounts. Carrier location holding empty containers, various points for Shipper’s utilisation; an area designated for storage of empty container/equipment.
A four letter code that forms the first part of a container identification number indicating the owner of a container (APMU…./MAEU….).
Container Safety Convention (CSC)
International convention for safe containers.
Container Serial Number
A seven digit serial number (6 plus 1 Check Digit) which forms the second part of a container identification number.
Container Service Charges
Charges to be paid by cargo interests according to tariff.
Vessel built to accommodate ocean containers.
Container Stuffing List (CSL)
List showing how cargo is stowed in each container.
Location where loaded and/or empty containers are loaded or discharged from a vessel or from a chassis/wagon.
Container Yard (CY)
A facility at which full and empty containers are received from or delivered to the Shippers by or on behalf of the Carrier.
Indication that goods are stowed in a container.
Continuous Flow Distribution (CFD)
The streamline pull of products in response to customer requirements while minimizing the cost of distribution.
Continuous Replenishment Program (CRP)
A program that triggers the manufacturing and movement of a product through the supply chain when the identical product is purchased by an end user.
An agreement enforceable by law between two or more parties stipulating their rights and obligations.
For-hire interstate operators which offer transportations services to certain shippers under contracts.
Contract of Affreightment
An agreement whereby the shipowner agrees to carry goods by water, or supplies a vessel for the purpose of carrying goods by sea, in return for a sum of money called freight.
Contribution Margin (CM)
Goto : NTV. Contribution towards fixed costs. Freight revenue minus variable costs.
Goto : Break Bulk Cargo.
Warehouse worker assigned to reconstruct or repair cartons, crates, boxes, etc.
A companyґs primary function considered essential to its success.
Corner Fittings (Corner Casting)
Fittings located at the eight corners of containers facilitating the support, stacking, handling and securing of containers.
Vertical structural post at either side of an 'end frame' of a container joining a top and a bottom corner fitting.
Goto : Company Guarantee.
Correction Notice (C/N)
Internal documents for correction to manifest which reflect a change in the details of a shipment.
Cost and Freight (CFR)
Means that the seller delivers when the goods pass the ship's rail in the port of shipment. The seller must pay the costs and freight necessary to bring the goods to the named port of destination BUT the risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time of delivery, are transferred from the seller to the buyer. The CFR term requires the seller to clear the goods for export. This term can be used only for sea and inland waterway transport. If the parties do not intend to deliver the goods across the ship's rail, the CPT term should be used.
Cost Insurance Freight (CIF)
Terms of sale. Seller quotes a price including cost of goods, insurance and transportation charges to point of destination.
Term associated with rail movement of cotton from an inland point to rail ramp at load port.
Council of European and Japanese National Shipowner's Associations (CENSA)
Organisation with objectives promoting and protecting sound shipping policies in all sectors of shipping, to co-ordinate and present the views of its members and to exchange views with other shipowner groups.
Country of Origin
Country in which the goods have been produced or manufactured, according to certain Customs criteria.
Country of Provenance
The country from which cargo is shipped to the importing country.
Connecting Point Spain. Term associated with point in Spain (Algeciras) utilised to feeder/tranship containers to the ultimate destination(s).
Goto : Carriage Paid To
Corporate Rate Agreement
A machine designed for moving and lifting weight by means of a projecting arm or a horizontal beam.
Credit & Collection
Department which oversees money owed to container line.
Agreement between Carrier and Shipper for release of cargo with promise to pay ocean freight within a specified timeframe. Document signed by the Shipper which binds Shipper to credit terms of the conference or agreement body.
Confidential Reference File
The process of moving merchandise directly from the receiving dock to the shipping dock, eliminating the need to place the merchandise in storage.
Document that indicates B/L and corresponding container(s) or vice-versa.
Shipping services provided by a Carrier between countries other than that in which the vessel(s) is/are registered (UNCTAD).
a. Goto : Container Safety Convention.
b. Container Service Charge
Container Service Port
Container Service Tariff
Combined Transport Bill of Lading
1,728 Cubic Inches.
Currency Adjustment Factor (CAF)
Adjustment made by shipping lines or liner conferences on freight rates to offset losses or gains for Carriers as a result of fluctuations in exchange rates of tariff currencies.
Customer Service (C/S)
Department designed to meet customer requirements.
A Government body that deals with the levy of duties and taxes on imported goods from foreign countries and the control over the export and import of goods f. inst. quotas, prohibited goods.
An authorised agent specialised in customs clearance procedures on behalf of importers/exporters.
a. Shipment cleared by Customs for movement.
b. The process of declaring and clearing cargoes through Customs.
Form required by U.S. Customs for entering goods into the United States. The form contains information as to the origin of the cargo, a description of the merchandise, and estimated duties applicable to the particular commodity. Estimated duties must be paid at the time the entry is filled.
Immediate Delivery Entry Used to expedite clearance of cargo. It allows for up to ten days for the payment of estimated duty and processing of the consumption entry. In addition, it permits the delivery of the cargo prior to payment of the estimated duty and then allows subsequent filing of the consumption entry and duty. Also known as an ID entry.
Immediate Transportation Entry
Allows the cargo to be moved from the pier to an inland destination via a bonded carrier without the payment of duties or finalization of the entry at the port of arrival. Known as an IT entry. Transportation and Exportation Entry Allows goods coming from or going to a third country, such as Canada or Mexico, to enter the United States for the purpose of transshipment. Known as a T&E entry.
Vessel Repair Entry
The law known as the "Foreign Vessel Repair Statute" provides that when any repairs in a foreign country are made on a vessel documented under the laws of the United States, an ad valorem duty of 50% is imposed on the cost of repair, including labor and labor costs, when the vessel arrives in the United States. All equipment, parts, or materials purchased, and repairs made, outside the United States must be declared on Customs Form 226 (CF226) and filed at the port of first arrival within 5 working days.
Customs House Broker (ChB)
Agent representative licensed by FMC who negotiates customs clearance for import cargo on behalf of the Consignee through U.S. Customs.
Document required by the customs in an importing country in which an exporter states the invoice or other price, and specifies costs for freight, insurance and packing etc., terms of delivery and payment, for the purpose of determining the customs value and assessment of duties in the importing country.
Area where containers are brought for Customs inspection.
The cargo value expressed in a monetary amount, for a shipment declared to Customs for duty and statistical reasons.
Where cargo is temporarily stored awaiting inspection or where cargo is stored when seized by Customs for lack of permit/entry.
Last possible date cargoes may be delivered to a ship or a designated point.
Goto : Container Yard.
Full container, stuffed by a Shipper at origin and delivered to a pier facility at destination where it is devanned by the Carrier for subsequent delivery.
Full container, stuffed by Shipper at origin and delivered to Carrier’s terminal for vessel loading and discharged at destination terminal for pick up and unstuffing by Consignee.
Counting inventory by checking a particular location or set of locations and comparing the physical counts with the system-maintained inventory levels.
The amount of time it takes to complete a business process. For example, the amount of time from when a service is ordered until it is received by the customer.
Cycle Time Reduction
The process of reducing cycle time, cutting costs and improveing customer service.