A list of common terms, abbreviations, or words used in the freight forwarding industry.
A point beyond the mid-point of a ship’s length, toward the stern relative to an object or point of reference (‘abaft the fore hatch’).
Further aft than the beam: a relative bearing of greater than 90 degrees from the bow: ‘two points abaft the port beam’.
An action wherein a shipper/consignee seeks authority to abandon all or parts of their cargo.
A discount allowed for damage or overcharge in the payment of a bill.
On the beam, a relative bearing at right angles to the centerline of the ship’s keel.
Some modern references claim that AB stands for able-bodied seaman as well as, or instead of, able seaman. Able seaman was originally entered using the abbreviation AB instead of the more obvious AS in ships’ muster books or articles. Such an entry was likely to avoid confusion with ordinary seaman (OS). Later the abbreviation began to be written as A.B., leading to the folk-etymological able-bodied seaman. The correct term, able seaman, remains in use in legal documents, in seaman’s papers, and aboard ship.
An Able Seaman (also AB) is an unlicensed member of the deck department of a merchant ship. An AB may work as a watch-stander, a day worker, or a combination of these roles.
On or in a vessel (see also ‘close aboard’). Referring to cargo being put, or laden, onto a means of transport.
On or above the deck, in plain view, not hiding anything.
The hull section of a vessel above waterline, the visible part of a ship. Also, topsides.
This is a special pennant flown to indicate the absence of a commanding officer, admiral, his chief of staff, or officer whose flag is flying (division, squadron, or flotilla commander).
The bearing of an object in relation to North. This can be either a true bearing, using the geographical or true North, or magnetic bearing, using magnetic North. For more information see ‘bearing’ and ‘relative bearing’.
The assumption that the carrier will cover extraordinary or other special charges without increasing the price to the shipper.
The process of receiving a consignment from a consignor, usually against the issue of a receipt. As from this moment the carrier bears responsibility for the consignment.
Charges that are applied to the base tariff rate or base contract rate, e.g., bunkers, container, currency or destination/delivery.
A portable flight of steps down a ship’s side.
The purchasing party, the importer, the buyer involved in any transaction.
A notification relating to the receipt of e.g. goods, messages and documents.
When a Bill of Lading is accepted or signed by a shipper or shipper’s agent without protest, the shipper is said to acquiesce to the terms, giving a silent form of consent.
Accidents of a nature beyond human control such as flood, lightning or hurricane, which are usually quoted as ‘force majeure’.
In water transportation, the deliberate sacrifice of cargo to make the vessel safe for the remaining cargo. Those sharing in the spared cargo proportionately cover the loss.
A letter from a state or power authorising action by a privateer. For more information see ‘Letter of marque.’
An accounting system that measures the cost and performance of specific activities performed within an organisation. For example, an ABC approach might measure the cost incurred by the accounts receivable department in handling calls for billing errors, whereas the traditional accounting approach ignores the activity and measures the cost of the accounts receivable department as a percentage of revenue.
An accounting system that measures the cost and performance of specific activities performed within an organisation. For example, an ABC approach might measure the cost incurred by the accounts receivable department in handling calls for billing errors, whereas the traditional accounting approach ignores the activity and measures the cost of the accounts receivable department as a percentage of revenue.
A one-off charter operated at the necessity of an airline or charterer.
This is a Latin term meaning ‘according to value.’ Import duty applied as a percentage of the cargo’s dutiable value. Ocean Freight can be assessed based on the value of the merchandise as well.
Additional charges above ocean freight.
This is a senior naval officer of Flag rank. In ascending order of seniority: Rear Admiral, Vice Admiral, Admiral and Admiral of the Fleet (Royal Navy). The term derives from the Arabic, Amir al-Bahr (ruler of the sea).
A high naval authority in charge of a state’s Navy or a major territorial component. In the Royal Navy (UK) the Board of Admiralty, executing the office of the Lord High Admiral, promulgates Naval law in the form of Queen’s (or King’s) Regulations and Admiralty Instructions.
A court which has jurisdiction over maritime questions pertaining to ocean transport, including contracts, charters, collisions, and cargo damages.
Admiralty law (also referred to as maritime law) is a distinct body of law which governs maritime questions and offences. It is a body of both domestic law governing maritime activities, and private international law governing the relationships between private entities which operate vessels on the oceans. It deals with matters including marine commerce, marine navigation, shipping, sailors, and the transportation of passengers and goods by sea. Admiralty law also covers many commercial activities, although land-based or occurring wholly on land, that are maritime in character.
Afloat and unattached in any way to the shore or seabed, but not under way/power. It implies that a vessel is not under control and therefore goes where the wind and current take her (loose from moorings, or out of place). Also refers to any gear not fastened down or put away properly. It can also be used to mean ‘absent without leave’.
To move cargo up-line to a vessel leaving sooner than the one initially booked.
Load made on the security of the documents covering the shipment.
A note for one month’s wages issued to sailors on their signing a ship’s articles.
A document transmitted (email/ EDI) to a consignee in advance of delivery, detailing the contents of a shipment and key information about shipping mode and dates. Within the ANSI X-12 message standards this is known as an 856 message.
A charge paid by a carrier to an agent or to another carrier, which the delivering carrier then collects from the consignee. Such charges are usually for agents’ forwarding fees and incidental expenses paid out of pocket for account of the shipment by an agent or other carrier.
Shipment of goods on shipper’s own account. A bill of adventure is a document signed by the master of the ship that carries goods at the owner’s risk.
This document is sent by one party to another to whom a shipment has been sent, on consignment or otherwise. It involves a description of the goods sent, the carrier or other type of transportation being used, the date of departure, and any additional pertinent data. Note: (Bankers use the term letter of advice when notifying interested parties of such actions as the opening of credits, the drawing of drafts and the payment or non-payment of drafts.)
A notice sent to a local or foreign buyer advising that shipment has gone forward and contains details of packing, routing, etc. A copy of the invoice is usually enclosed and sometimes, if desired, a copy of the bill of lading.
A bank operating in the country of the seller which handles Letters of Credit on behalf of a Foreign Bank.
A term indicating that a shipper’s agent or representative is not empowered to make definite decisions or adjustment without the approval of the group or individual represented.
A company that controls, or is controlled by another company, or is one of two or more commonly controlled companies.
An agreement made by an ocean carrier to provide cargo space on a vessel at a specified time and for a specified price to accommodate an exporter or importer.
The condition of a vessel which is floating freely (not aground or sunk). This is a term more generally used to describe vessels in service e.g. ‘the company has 10 ships afloat’.
Towards the stern (of the vessel).
The period of duty/working hours (or ‘watch’) on board a vessel between 12:00hrs to 16:00hrs.
An insurance policy which provides coverage against all types of loss or damage as opposed to specific ones.
The carrier line appoints the port agent and defines the specific duties and areas of responsibility of that agent.
This is the fee payable by a ship-owner or ship operator to a port agent.
This is also known as USAID, an American Federal Agency primarily responsible for administering civilian foreign aid.
A tariff published by an agent on behalf of several carriers.
A person authorised to transact business for and in the name of another person or company. Types of agents are: brokers, commission merchants, resident buyers, sales agents or manufacturer’s representatives.
Numerous shipments from different shippers to one consignee that are consolidated and treated as a single consignment.
Numerous shipments from different shippers delivered to one consignee, that are consolidated and treated as a single consignment.
The value of a shipment agreed upon in order to secure a specific freight shipment.
The weight prescribed by agreement between carrier and shipper for goods shipped in certain packages or a certain number.
The term applies to the area of agriculture can be defined as ‘ A program, administered by USDA’s Animal and Plant Health Inspection Service, that inspects incoming passengers, luggage, and cargo at U.S. ports of entry in order to protect U.S. agriculture from foreign animal and plant pests and diseases’.
Said of a vessel resting on or touching the ground or bottom of a waterway.
Forward of the bow.
A cry to draw attention on board. This is usually a term used to hail a boat or a ship, as ‘Boat ahoy!’
When the boat is lying broadside to the sea. Also to ride out a storm with no sails and helm held to leeward. Also to ride out a storm with no sails and helm held to leeward.
Any device external to a vessel or aircraft specifically intended to assist navigators in determining their position or safe course, or to warn them of dangers or obstructions to navigation.
A non-asset based firm that negotiates low shipping rates with airlines, then takes orders at a higher rate in order to make a profit using the airline’s assets to move the product.
Is a non-negotiable document covering transport of cargo from airport to airport. Note the difference between a Master Air Waybill – A shippers contract of carriage with an airline and a House Air Waybill – issued by a freight forwarder such as Damco.
The entire ship’s company, including officers and enlisted personnel.
The total price to move cargo from its origin to its destination; inclusive of all charges, as opposed to detailed charges of Seafreight + + +.
All Inclusive
Freight rate includes all costs associated with a particular shipment, no surcharges apply.
Having no night watches.
Extensive insurance coverage of cargo including coverage due to external circumstances, such as fire, collision, pilferage, etc.
Transport exclusively by water.
A collision between a moving vessel and a stationary object.
A share of the capacity of a means of transport assigned to a certain party, e.g. a carrier or an agent, for the purpose of the booking of cargo for a specific voyage.
An insurance provision that all loss or damage to goods is insured except any that is self-caused. For more information see All-Risk Insurance.
A clause included in marine insurance policies to cover loss and damage from external causes, such as fire, collision, pilferage, etc. but not against innate flaws in the goods, such as decay, germination, nor against faulty packaging, improper packing/ loading or loss of market, nor against war, strikes, riots and civil commotions. For more information see Marine Cargo Insurance.
The point above the ship’s uppermost solid structure; overhead or high above.
Refers to the side of a ship, used to describe goods delivered to port of embarkation without loading fees (see Incoterms).
The privilege to use the rate producing the lowest charge.
This is a widely used contract term requiring that a vessel should not rest on the ground. In some ports the ship is aground when approaching or at berth.
The temperature of a surrounding body. The ambient temperature of a container is the atmospheric temperature to which it is exposed.
A written notice of a change in the terms of a letter of credit. The amendment becomes an integral part of the original letter of credit.
This is one of several classification societies; with a mission to promote the security of life, property and the natural environment, primarily through the development and verification of standards for the design, construction and operational maintenance of marine-related facilities (i.e. vessels). The American Bureau of Shipping (ABS), first chartered in the State of New York in 1862 to certify ship captains. It is a classification society, with a mission to promote the security of life, property and the natural environment, primarily through the development and verification of standards for the design, construction and operational maintenance of marine-related facilities. At the end of 2006, ABS was the third largest class society with a classed fleet of over 10,000 commercial vessels and offshore facilities. ABS’ core service is the provision of classification services through the development of standards called ABS Rules. These rules form the basis for assessing the design and construction of new vessels and the integrity of existing vessels and marine structures.
An organization that develops and publishes a set of voluntary product standards, most commonly in relation to electronic communication, unit load and transportation package sizes for containers.
A (Marine Insurance) term used to differentiate between the conditions of American Policies from those of other nations, principally England.
In the middle portion of a ship, along the line of the keel.
An object designed to prevent or slow the drift of a ship, attached to the ship by a line or chain; typically a metal, hook-like or plough-like object designed to grip the bottom under the body of water. For more information see ‘sea anchor’.
A round black shape hoisted in the forepart of a vessel to show that it is anchored.
A small buoy secured by a light line to the anchor, designed to indicate the position of the anchor on the sea bed.
The chain connecting the ship to the anchor.
A team of men who handle ground tackle when the ship is anchoring or getting underway.
White light displayed by a ship at anchor. Two such lights are displayed by a ship over 150 feet (46 m) in length.
The anchor line, rope or cable connecting the anchor chain to the vessel. For more information see ‘Rode’.
A consignment of crew tasked with ensuring that the anchor is holding and the vessel is not drifting. It is very important during rough weather and at night. Most marine GPS units boast Anchor Watch alarm capabilities.
A suitable place for a ship to anchor; usually an area of a port or harbour.
The term used when an anchor is just clear of the sea bed.
Traditional lower-deck slang term for the Royal Navy.
This is the container services business operated by MSC (UK) Ltd, with primary business activities including container storage, cleaning, repairs, conversions, customisations and reefer pre-tripping.
the most widely accepted standards for EDI messaging (US developed).
A type of sonar used by the Allies for detecting submarines during the Second World War.
Anti-submarine warfare
A rating that applies to an item regardless of weight.
A rating that applies to an item regardless of weight.
A chartering term referring to when a vessel will work.
Usually refers to a rating that applies to an article regardless of weight.
When freight appears to be free of damage; so far as a general survey can determine.
The combination of the true wind and the headwind caused by the boat’s forward motion. For example, it causes a light side wind to appear to come from well ahead of the beam.
Application Programming Interface. It is an interface that defines interactions between multiple software applications or mixed hardware-software intermediaries
Determination of the dutiable value of imported merchandise by a Customs official who follows procedures outlined in their country’s tariff, such as the U.S. Tariff Act of 1930.
The process of referring to an agreed person for judgment on issues of a dispute; without requiring the use of courts.
A standard clause to be included in the contracts of exporters and importers, as suggested by the American Arbitration Association. It states that any controversy or claim will be settled by arbitration in accordance with the rules of the American Arbitration Association.
The portion of the horizon over which a lighted aid to navigation is visible from seaward.
A ship’s weapons.
The procedure whereby, in common law jurisdictions, a ship (and sometimes cargo and/or freight) may be seized by an admiralty court at the institution of or during an action ‘in rem’ – against a thing rather than a person – (infra) to provide pre-judgment security for the plaintiff’s maritime claim.
The date on which goods or a means of transport is due to arrive at the delivery site of the transport.
Regulations governing the military and naval forces of UK and USA; read to every ship’s company on commissioning and at specified intervals during the commission.
Artificial Tween Decks Forty feet long, eight feet wide, one foot thick steel platform with hardwood flooring. Equipped with ten bullrings for securing oversized, heavy lift or wheeled cargo.
Forty feet long, eight feet wide, one foot thick steel platform with hardwood flooring. Equipped with ten bullrings for securing oversized, heavy lift or wheeled cargo.
A vessel that is on the beach, shore or land.
A third party provider that owns transportation and/or warehouse assets.
A stipulation within a letter of credit in which some or all of the proceeds are assigned from the original beneficiary to one or more additional beneficiaries.
Toward the stern; an object or vessel that is abaft another vessel or object. For more information see Port Side for diagram of all the ship’s directions.
A harbour used to provide shelter from a storm.
(Customs) ATA is the acronym for the combined French and English words “Admission Temporaire/Temporary Admission.” An ATA Carnet is an international Customs document which may be used for the temporary admission of certain goods into 92 participating countries and territories worldwide in lieu of the usual customs documents and without having to pay duties or value-added taxes. The carnet serves as a guarantee against the payment of customs duties and taxes (including VAT), which may become due on goods temporarily imported and not re-exported. Carnets also simplify customs clearance and ensure re-entry into the originating country by acting as a “Certificate of Registration”.
At right angles to the fore and aft or centerline of a ship; A direction across the width of a vessel.
A container carrier operating large RORO (Roll-On Roll-off) ships between Europe and North America.
A party involved in ther international movement of goods in whatever function that has been approved by or on behlaf of a national Customs administrationas complying with WCO or equipment supply chain security standards (종합인증우수업체)
This is the U.S. Customs’ computer system which brokers use to file importers’ entries electronically. An electronic system allowing customhouse brokers and importers to interface via computer with the US Customs Service for transmitting entry and entry summary data on imported merchandise.
The U.S. Customs’ master computer system to replace the Automated Commercial System.
This is the U.S. Customs’ master computer system, which is being replaced by the Automated Commercial Environment system (ACE).
This is the U.S. Customs’ computerized system used to automate the flow of customs-related information among customs brokers, importers, and carriers. A part of Custom’s Automated Commercial System (ACS), controls imported merchandise from the time a carrier’s cargo manifest is electronically transmitted to Customs until control is relinquished to another segment of the ACS.
The Automated System for Customs Data is a computerised system designed by the UNCTAD (United Nations Conference on Trade and Development) to administer a country’s Customs. Currently there are three different generations of ASYCUDA in use: ASYCUDA 2.7, ASYCUDA++ and ASYCUDA World. All of them were built using different paradigms and solutions available at the time of conception, being ASYCUDA World the most recent one and less used so far (early 2009). UNCTAD’s premise was to build a computer system to assist customs authorities (or their local equivalent) all over the world to automate and control their core processes and obtain timely, accurate and valuable information to support government projections and planning.
A short range coastal tracking system used on ships and by Vessel Traffic Services (VTS) for identifying and locating vessels by electronically exchanging data with other nearby ships and VTS stations. Information such as unique identification, position, course, and speed can be displayed on a screen or an ECDIS. AIS is intended to assist the vessel’s watch standing officers and allow maritime authorities to track and monitor vessel movements, and integrates a standardized VHF transceiver system such as a LORAN-C or Global Positioning System receiver, with other electronic navigation sensors, such as a gyrocompass or rate of turn indicator. The International Maritime Organization’s (IMO) International Convention for the Safety of Life at Sea (SOLAS) requires AIS to be fitted aboard international voyaging ships with gross tonnage (GT) of 300 or more tons, and all passenger ships regardless of size. It is estimated that more than 40,000 ships currently carry AIS class A equipment.
The Panama Canal Authority.
A command to cease or desist from whatever is being done.
A common marine insurance term. An early meaning (c.1500) of the word average is ‘damage sustained at sea’. The root is found in Arabic as awar, in Italian as avaria and in French as avarie. Hence an average adjuster is a person who assesses an insurable loss. Marine damage is either particular average, which is borne only by the owner of the damaged property, or general average, where the owner can claim a proportional contribution from all the parties to the marine venture. The type of calculations used in adjusting general average gave rise to the use of ‘average’ to mean ‘arithmetic mean’.
In general average affairs average adjusters are entrusted with the task of apportioning the loss and expenditure over the parties interested in the maritime venture and to determine which expenses are to be regarded as average or general average.
The average inventory level over a period of time.
Average Order Value measures the average total of every order placed over a defined period of time. AOV is one of the most important metrics for online stores to be aware of, driving key business decisions.
The average selling price (ASP) of goods or commodities is the average price at which a particular product or commodity is sold across channels or markets. To calculate the average selling price, all you have to do is divide net sales with the number of products sold.
A measure of weight or mass equal to 0.4535924277 kilograms.
A vessel that is so low in the water that the water is constantly washing across the surface.
The position of an anchor just clear of the bottom.
The reply to an order or command to indicate that it, firstly, is heard; and, secondly, is understood and will be carried out. (‘Aye, aye, sir’ to officers). Also ‘yarr’.
An instrument used to take bearings of celestial objects.
An instrument employed for ascertaining the position of the sun with respect to magnetic north. The azimuth of an object is its bearing from the observer measured as an angle clockwise from true north.
To use the advantage of the tide being with you when the wind is not.
Long lines or cables, reaching from the rear of the vessel to the mast heads, used to support the mast.
A soft covering for cables (or any other obstructions) that prevents sail chafing from occurring.
Materials solely carried to improve the trim and the stability of the vessel. In vessels usually sea water is carried as ballast in tanks, specially conceived for that purpose. (See also Ballast).
Materials solely carried to improve the trim and the stability of the vessel. In vessels usually water is carried as ballast in tanks, specially conceived for that purpose.
Special payment above the chartering price when the ship has to sail a long way on ballast to reach the loading port.
The world’s largest private shipping organization based in Copenhagen, which has been in operation since 1905. BIMCO promotes proper shipping practices and opposes objectionable and unfair import charges, claims, etc. It claims a worldwide membership of 2720, including ship-owners, managers, brokers, agents and others involved in the shipping industry. BIMCO holds observer status with a number of United Nations (UN) organs.
A large area of elevated sea floor.
A guarantee issued by a bank to a carrier to be used in lieu of lost or misplaced original negotiable bill of lading.
A form of financing used in import/export transactions.
Traditional Royal Navy term for a day or shorter period of rest and relaxation.
An EDI message sent to convey the Bayplan on occupied and empty slots in a certain vessel at a particular time.
Large mass of sand or earth, formed by the surge of the sea. They are mostly found at the entrances of great rivers or havens, and often render navigation extremely dangerous, but confer tranquility once inside.
A bar pilot guides ships over the dangerous sandbars at the mouth of rivers and bays.
A series of bars and spaces read by a scanning device for translation into a numeric or alphanumeric identification code that represents data in machine-readable or computerized form.
The PDF 1000 style barcode is used to store up to 1800 characters of text. Designed to allow more information to be stored and retrieved electronically; it has not achieved wide use.
A method of chartering of the ship, leaving the charterer with almost all the responsibilities of the owner.
A charter in which the bare ship is chartered without crew; the charterer, for a stipulated sum taking over the vessel for a stated period of time, with a minimum of restrictions; the charterer appoints the master and the crew and pays all running expenses. For further information see Demise Charter.
A flat bottomed inland cargo vessel, with or without own propulsion, ideal for transporting goods on canals and rivers.
An act committed by the master or mariners of a vessel for some unlawful or fraudulent purpose, contrary to their duty to the owners, whereby the latter sustain injury. It may include negligence, if so gross as to evidence fraud.
A term of measure referring to 42 gallons of liquid at 60F.
A sailor stationed in the crow’s nest.
Trade in which merchandise is exchanged directly for other merchandise without use of money. Barter is an important means of trade with countries using currency that is not readily convertible.
Ports from which standard tariff rates apply to those normally serviced directly by members.
A tariff term referring to ocean rate less accessorial charges or base tariff rate.
Charges for the service of transportation of cargo from the first port of loading to the last port of discharge. Charges are applied by container.
A point (location) used in construction of through rates between other points.
Section of vessel in which containers are held.
A stowage plan which shows the locations of all the containers on the vessel.
Deliberately running a vessel aground, to load and unload (as with landing craft), or sometimes to prevent a damaged vessel sinking.
A lighted or unlighted fixed aid to navigation attached directly to the Earth’s surface (lights and day beacons both constitute beacons.)
The width of a vessel at the widest point, or a point alongside the ship at the mid-point of its length.
The sides of a ship. ‘On her beam ends’ may mean the vessel is literally on her side and possibly about to capsize; more often, the phrase means the vessel is listing 45 degrees or more.
A large squared off stone used for scraping clean the deck of a sailing man-of-war.
Turn away from the wind, often with reference to a transit.
The horizontal direction of a line of sight between two objects on the surface of the earth. For more information see ‘absolute bearing’ and ‘relative bearing’.
Sailing closer to the wind than about 60° (see also reaching, running and tacking).
The scale describing wind force devised by Admiral Sir Francis Beaufort in 1808, in which winds are graded by the effect of their force (originally, the amount of sail that a fully-rigged frigate could carry).
Debris may be hurled about.
Scale now reads up to Force 17 determining varying strengths of hurricane:
Literally, the area of a ship before the foremast (the forecastle). The term is most often used to describe men whose living quarters are located here, officers being quartered in the stern-most areas of the ship (near the quarterdeck). Officer-trainees lived between the two ends of the ship and become known as ‘midshipmen’. Crew members who started out as seamen, then became midshipmen, and later, officers, were said to have gone from ‘one end of the ship to the other’.
To make fast a line around a fitting, usually a cleat or belaying pin.
An order to halt a current activity or countermand an order prior to execution.
Bars of iron or hard wood to which running rigging may be secured, or belayed.
Freight accommodation located below the main deck.
The process of comparing a firm’s performance against the practices of other leading companies – in or outside of an industry – for the purpose of improving performance. Companies also benchmark internally by tracking and comparing past performance.
A knot used to join two ropes or lines. For more information see hitch.
It is the result of vertical forces acting on a ship because of local differences between weight and buoyancy. The total of these forces should be zero; otherwise a change of draft will occur. At sea the bending moment will change as a result of wave impact which then periodically changes the buoyancy distribution.
Note: The maximum allowed bending moment of a vessel is restricted by the class bureau to certain limits, which are different under port and sea conditions.
Referring to the importer of record, who physically takes possession of cargo at destination and does not act as a third party in the movement of such goods.
A triangular mainsail, without an upper spar, which is hoisted up the mast by a single halyard attached to the head of the sail. This configuration, introduced to Europe about 1920, allows the use of a tall mast, enabling sails to be set higher where wind speed is greater.
Railways: the most restrictive loading gauge (standard measure) or the lowest common denominator of loading gauges on the railways of continental Europe.
The place beside a pier, quay, or wharf where a vessel can be loaded or discharged.
A bed or sleeping accommodation on a boat or ship.
A location in a port or harbor used specifically for mooring vessels while not at sea.
This is a regular scheduled steamship line with regular published schedules (port of call) to and from defined trade areas.
Focuses on the total number of containers that (ALL) cranes moved on/off a particular vessel each hour, one of the indicators of terminal productivity.
This is an expression covering assessment of ocean freight rates generally implying that loading and discharging expenses will be for the ship owner’s account, and will usually apply from the end of the ship’s tackle in port of loading to the end of the ship’s tackle in port of discharge.
Shipped under a rate that does not include the cost of loading or unloading.
Also known as competitive benchmarking, the methodology that determines state-of-industry performance or application.
The bilge is the compartment at the bottom of the hull of a ship or boat where water collects so that it may be pumped out of the vessel at a later time.
A pair of keels on either side of the hull, usually slanted outwards. In yachts, they allow the use of a drying mooring, the boat standing upright on the keels (and often a skeg) when the tide is out.
A ship that has run upon her own anchor, so the anchor cable runs under the hull.
The Bill of Health is the certificate issued by local medical authorities indicating the general health conditions in the port of departure or in the ports of call. The Bill of Health must have been communicated before departure by the Consul of the country of destination.
When a vessel has ‘free pratique’ (i.e. a clean bill of health), this means that the vessel has a clean Bill of Health certifying that there is no question of contagious disease and that all quarantine regulations have been complied with, so that people may embark and disembark.
Legal document signed by or for the captain/master, agents, owners of a vessel or the (common) carrier. It is written evidence of the contract of carriage by sea and/or by land. It is (1) A receipt of the goods (in the owner’s/carrier’s or his/their agent’s custody) and (2) An undertaking to carry and deliver the goods safely to the place directed/agreed, dangers of the sea excepted, against (3) Surrender of the document where/when provisions in the document stipulate delivery to order of a named person, to order (blank) or to bearer 4) It evidences the terms of the contract of carriage.
A list of all charges linked to an ISSO/ESSO according to predefined contracts
A document that confirms the transfer of ownership of certain goods to another person in return for money paid or loaned.
Customer designated as party paying for services.
Weight stated in a waybill and/or (freight) bill of lading.
Open-front canvas top for the cockpit of a boat, usually supported by a metal frame.
A punitive instrument.
The stand on which the ship’s compass is mounted.
A ship’s sick list – the list of men unable to report for duty traditionally given to the officer or mate of the watch by the ship’s surgeon. The list was kept at the binnacle.
A post mounted on the ship’s bow, for fastening ropes or cables.
The anchor cable is tied to the bitts, when the cable is fully paid out, the bitter end has been reached. The last part of a rope or cable.
A bond covering a group of persons, articles or properties.
A rate applicable to or from a group of points. A special rate applicable to several different articles in a single shipment.
Stowing cargo destined for a specific location close together to avoid unnecessary movement.
A blue and white flag (the flag for the letter “P”) hoisted at the fore trucks of ships about to sail. Formerly a white ship on a blue ground
To gain access to a vessel.
A relatively small, usually open craft or vessel designed to float on, and provide transport over, water. An inland vessel of any size.
A pole with a hook on the end, used to reach into the water to catch buoys or other floating objects.
A non-commissioned officer responsible for the sails
A stay (wire/chain) that holds the bowsprit downwards, counteracting the effect of the forestay. This is usually made of wire or chain to eliminate stretch.
A common American term, meaning the movement of a tractor, without trailer over the highway.
A set of wheels built specifically as rear wheels under a container.
From ‘bol’ or ‘bole’, the round trunk of a tree. A substantial vertical pillar to which lines may be made fast. Generally on the quayside rather than the ship.
A device fitted on a chassis or rail car to hold and secure the container.
Latin for in good faith; without dishonesty
Port of initial Customs entry of a vessel to any country (first port of call).
Goods stored under Customs bond until the import duties are paid or the goods are re-exported. Customs bond is a guarantee from a company to a government that the importer will faithfully abide by all laws and regulations governing the importation of merchandise into the country.
Warehouse owned by persons approved by the relevant customs and excise authorities (for example in the USA it is the Treasury Department), and under bond (or guarantee) for the strict observance of the revenue laws. Utilized for storing goods until duties are paid or goods are otherwise properly released.
A secure building or area, approved by customs, where cargo, for which export clearance has been performed, is stored. Goods are considered foreign and must go out for export. In some countries, a bonded warehouse is defined as a warehouse with customs officials onsite. In others, it is a warehouse in which customs inspect cargo prior to authorizing export clearance. Ensure the local definition is established. In some countries, some manufacturers are also granted a license to operate a bonded warehouse in which they can store manufactured products in anticipation of export and hence suspend payment of local taxes (e.g. on cigarettes).
A secure building or area, approved by customs, where cargo, for which export clearance has been performed, is stored.
A sliding hatch or cover.
1. Act of recording arrangements for the movement/transportation of goods by vessel or other conveyance. 2. To express in advance a desire for something in order to reserve it e.g. transportation of goods. 3. Also known as a booking request.
The reservation number used to secure equipment and act as a control number prior to the completion of a bill of lading. It is also the common reference for the carrier, the client and the terminal, truckers, etc..
A spar attached to the foot of a fore-and-aft sail. During certain sailing maneuvers, the boom moves rapidly from one side of the boat to the other.
Sailors must take care not to obstruct this movement with their head. Failure to do so can give one insight into the origins of the name “boom”…
A sail control that lets you apply downward tension on a boom, countering the upward tension provided by the sail. The boom vang adds an element of control to sail shape when the sheet is let out enough that it no longer pulls the boom down. Boom vang tension helps control leech twist, a primary component of sail power.
Masts or yards, lying on board in reserve.
A type of air circulation in a temperature control container. Air is pulled by a fan from the top of the container, passed through the evaporator coil for cooling and then forced through the space under the load and up through the cargo. This type of airflow provides even temperatures.
Structural members on the longitudinal sides of the base of a container.
Pledging a ship as security in a financial transaction. Money can be borrowed against a ship, or its equipment, repaid with interest upon the ship’s arrival at port, and forfeited should the ship sink.
The front of a ship.
A small propeller or water-jet at the bow, used for maneuvering larger vessels at slow speed. This may be mounted externally, or in a tunnel running through the bow from side to side.
A type of knot, producing a strong loop of a fixed size, topologically similar to a sheet bend. It is also a rope attached to the side of a sail to pull it towards the bow (for keeping the windward edge of the sail steady).
To pull or hoist.
A spar projecting from the bow used as an anchor for the forestay and other rigging.
A colloquial shipping phrase. A common term for an ocean-going freight container.
A closed rail freight car.
A lump sum charged to move cargo in various size containers from origin to destination.
To state all 32 points of the compass, starting at north, proceeding clockwise. The phrase is sometimes applied to a wind that is constantly shifting.
To furl or truss a sail by pulling it in towards the mast, or the ropes used to do so.
The handle of the pump, by which it is worked.
The measure of an engine’s horsepower without the loss in power caused by the gearbox, generator, differential, water pump, and other auxiliary components such as alternator, power steering pump, muffled exhaust system, etc. ‘Brake’ refers to a device which was used to load an engine and hold it at a desired RPM. During testing, the output torque and rotational speed were measured to determine the ‘brake horsepower’.
Palletized packaged goods that are not containerized. To break bulk is to unload and distribute a portion or all of the contents of a rail car
A structure above the weather deck, extending the full width of the vessel, which houses a command center, itself called by association, the bridge.
An inland location where the cargo is received by the ocean carrier and then moved to a coastal port for loading.
A port where the cargo is received by the ocean carrier and stuffed into containers and then moved to another coastal port for loading onto a larger vessel.
Cause a ship to be stationary by arranging the sails.
A sudden movement in navigation, when the ship, while scudding before the wind, accidentally turns her leeward side to windward. The term is also used to describe the point when water starts to come over the gunwhale due to this turn.
An individual or firm that acts as an intermediary, often between a buyer and seller, usually for a commission.
Freight forwarder/broker compensation as specified by the ocean tariff.
Authority granted by the Interstate Commerce Commission (ICC) to persons to engage in the business of arranging for the transportation of persons or property in interstate commerce.
The old Customs Co-operation Council Nomenclature for the classification of goods. This has now been replaced by the Harmonized System.
The chief bosun’s mate (in the Royal Navy), responsible for discipline.
(Logistics) Raw materials, component parts or finished goods maintained in inventory specifically in anticipation of unforeseen shortages of materials or component parts or unusual demand for finished goods.
Goods that are shipped loose – not in packages or containers (e.g. grain, coal, sulfur).
Refers to a container with two or three portholes on the top and discharge hatches in the doors; allows the container transport of free-flowing bulk commodities such as grain, iron ore and coal.
Cargo-securing devices mounted in a floor of containers that allow lashing and securing of cargo.
The extension of the ship’s side above the level of the weather deck.
A private boat selling goods.
(Tank) spaces on board a vessel to store fuel.
Adjustment applied by shipping lines to offset the effect of fluctuations in the cost of bunkers. Also known as Bunker Contribution or BUC, and also Fuel Adjustment Factor, or FAF.
An extra charge added to an ocean carrier’s freight rates. Also known as FAF (Fuel Adjustment Factor).
Surcharge assessed by carrier which is applied to freight rates to supplement an unexpected rise in fuel costs.
A maritime term referring to fuel used aboard the ship. Bunker fuel is technically any type of fuel oil used aboard ships. It gets its name from the containers on ships and in ports that it is stored in; in the days of steam they were coal bunkers but now they are bunker-fuel tanks. For more information see HFO.
A signalman who prepares and flies flag hoists. He is also known in the American Navy as a skivvy waver.
One of the lines tied to the bottom of a square sail and used to haul it up to the yard when furling.
A floating object of defined shape and colour, which is anchored at a given position and serves as an aid to navigation.
The upward force extended by the vertical component of integrated pressure acting on the hull below the waterline; usually calculated as being equal to the weight of the water displaced by the hull.
Lifted by a buoy, especially a cable that has been lifted to prevent it from trailing on the bottom.
The primary U.S. Government export control authority.
Bureau Veritas S. A. (formerly BVQI, Bureau Veritas Quality International) is an international certification agency. The company started in 1828 in Antwerp as Bureau de Renseignements pour les Assurances Maritimes (Information Office for Maritime Insurance), a classification society. In 1829, the company was renamed Bureau Veritas. By this time it already had 10000 ships in its register. Today, Bureau Veritas is one of the world’s largest global Conformity Assessment and Certification organizations. In addition to certifications, they are a worldwide leading firm in providing HSE expertise (Health, Safety and Environmental). Today the headquarters are in Neuilly-sur-Seine, nearby La Défense. The company went public on the Paris Bourse in October 2007.
A short description of a concept which can be used for commercial purposes. It typically centers on a commodity or service that can be sold for money.
A process that identifies and evaluates the potential effects (financial, life/safety, regularltory, legal/contractual, reputation etc) of natural and made-made events on business operations.
Commerce in goods, services, or information that takes place between business enterprises. Contrast to the exchange of goods, services, or information between businesses and private individuals (business-to-consumer or B2C).
Commerce in goods, services, or information that takes place between business enterprises and private individuals.
A ‘buyer’s market’ is considered to exist when goods can easily be secured and when the economic forces of business tend to cause goods to be priced at the purchaser’s estimate of value. In other words, a state of trade favorable to the buyer, with relatively large supply and low prices.
By means into the wind
Any items to have gone overboard.
Trade or transport in coastal waters or between two ports/points within a country especially by parties other than domestic carriers. Many countries, such as the USA, have laws requiring domestic-owned vessels to perform domestic interport water transportation services.
Doors in a warehouse where vehicles back up to load/unload cargo.
A fee that covers re-submission of necessary information required by Customs due to an amendment request that is made by the customer after the carrier has submitted the documentation to local customs authorities. Import countries where this is applicable: – European Union – Norway – Switzerland – United States – Canada – Puerto Rico – Mexico
A subset of marine insurance. Cargo insurance protects international traders against the risk of loss or damage to cargo transported by all types of carriers and methods of shipment including oceangoing vessels, inland waterway vessels, trucks, railcars, and airplanes. An international trader may obtain cargo insurance either directly from an insurance company or through the carrier, freight forwarder, or logistics firm handling the shipment.
(Shipment) A list of a ship’s cargo or passengers, but without a listing of charges.
For more information see: ICCWBO
A United States statute governing the rights and responsibilities between shippers of cargo and ship-owners regarding ocean shipments to and from the United States.
For more information see: ICCWBO
Bill issued by the carrierline
A release order used to advise customs of the details of the shipment, its ownership, port of lading, etc. By means of this document the carrier certifies that the firm or individual named in the certificate is the owner or consignee of the cargo. A U.S. Customs form used in lieu of a bill of lading.
Return on financial investment measured in cash flow
Cash on delivery (COD), sometimes called collect on delivery, is the sale of goods by mail order where payment is made on delivery rather than in advance. If the goods are not paid for, they are returned to the retailer/Fulfilment Centre
Container slot where container fits into place on vessel.
A document issued by a government entity on behalf of an exporter stating that specified goods comply with the laws of the exporting country for distribution in that country’s commerce. A certificate of free sale provides assurance to the country of import that the imported goods meet the country of export state, provincial and national requirements for sale. Certificates of free sale are typically issued for food products, dietary supplements, drugs, cosmetics and medical devices.
Document issued by a certifying authority stating the country of origin. A certificate origin can be the key document in requesting a special reduced tariff rate for imports from countries listed in programs such as GSP (Generalized System of Preferences) or NAFTA (North American Free Trade Agreement).
Customer initiated request for a change of the port of discharge. COD happens when a shipment has been received and gated-in at origin port of loading but prior to arrival at final port of discharge.
Trailer or wheeled unit on which a container is placed in order to move container over the road.
Request for advice concerning the status of a claim.
A clause inserted in the bill of lading by some shipping/transportation companies, stating that they have not noted or are not familiar with any irregularities or discrepancies in the packing or in the general condition of any part of the goods or its description.
A software licence distributed by software companies to allow clients to connect to its server software and use the software’s services.
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 is a variable length barcode capable of encoding the entire 128 character ASCII character set. Code 128 allows three subsets, A, B and C.
Code 128A allows all standard upper case alpha-numeric keyboard characters plus control characters.
Code 128B allows all standard upper case alpha-numeric keyboard characters and lower case alpha characters.
Code 128C includes a set of 100 digit pairs from 00 to 99 inclusive. This allows double density numeric digits, two digits per barcoded character.
Furthermore, Code 128 Auto automatically selects the subset that will produce the smallest barcode.
This barcode is an alphanumeric barcode allowing upper case letters and numbers. Each character consists of nine elements. 3 of the nine elements are wide, hence the name “3 of 9”. Extended 3 of 9 allows the full 128 ASCII character set to be encoded by printing two barcode characters for each text character.
Code 93 is an alpha-numeric barcode allowing upper case letters and numbers. BarCode/VBX will convert lower case letters to upper case before encoding them. Extended Code 93 allows the full 128 character ASCII character set to be encoded.
Container type
Provides a combined transport by at least two different modes of transportation from a place from which the goods are taken to a place designated for delivery.
Describes the commercial transaction between the buyer and seller. Where involved in Letter of Credit (L/C) shipments the Commercial Invoice must exactly match the details within the letter of credit. L/C Shipments are not common for SCM customers (FCR most common. Where a customer has an L/C flow additional checks should be priced and implemented on documents from the vendors to avoid Disruptions.
A specification of goods/product types, e.g. toys, electronics or welding machinery.
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 web application developed in order to facilitate direct online communication between Damco origins offices and our clients. An exception management tool where each exception is captured/reported as it occurs.
A letter of guarantee from a company indemnifying the carrier of responsibility associated with the release of goods in lieu of a bill of lading.
Defined in the 1984 Shipping Act as: … an association of ocean common carriers permitted, pursuant to an approved or effective agreement, to engage in concerted activity and to utilise a common tariff; but the term does not include a joint service, consortium, pooling, sailing or transshipment arrangement. It is basically a group of steamship companies offering equitable freight rates, standardised shipping practices and regularly scheduled services between designated ports. These arrangements are given anti-trust immunity as authorised by the 1984 Shipping Act.
A fee imposed by carriers to customers for shipments through heavily congested ports. The aim is to encourage customers to use alternative ports to ease congestion.
The person or firm named in a freight contract to whom goods have been shipped or turned over for care.
The individual, company or entity that ships goods, or gives goods to another for care. The consignor is usually the exporter or his agent.
The combining of less than full load (LTL/LCL) shipments of cargo into one shipment at a centrally located point of origin by a freight consolidator, and transporting them as a single shipment to a destination point. Consolidation of cargo often results in reduced shipping rates.
Document required by some foreign countries, showing exact information as to consignor, consignee, value description etc. for a shipment.
Weatherproof box designed for the shipment of freight, generally used for overseas shipments. The container is separable from the chassis when loaded onto vessels or rail cars.
This fee covers the additional costs for extra or special cleaning and is applicable when the container does not meet the standard cleanliness criteria (inside and outside) upon empty return from the customer. This service of additional cleaning of the container may also be triggered by a customer request. This charge is not applicable to shipper-owned containers.
A storage area, where shippers and consignees may pick up or drop off empty containers. A container depot may not be owned or controlled by a shipper or its agent and may not receive loaded containers.
A facility where freight shipments are consolidated or de-consolidated and staged between transport legs. A CFS is typically located in proximity to an ocean, port, or airport, where cargo containers are transported to and from.
A report showing the orders planned to be loaded per container.
A report showing the actual orders loaded in a container.
Rail service whereby a container is loaded onto a flat car without chassis, bogies or wheels.
Container seals, or seals for short, are ‘one-time door locks’ used to secure goods containers. Each seal-lock can be used only once. Seals are numbered for record and security purposes, minimize the risk of unauthorized access and manipulation to the container contents. After a container is stuffed, the seal must be applied and the number documented. Heavy-duty container seals are designed to withstand natural elements and last the entire voyage of the container until it is removed by the customer at the destination. Unbroken seal can be a proof of integrity.
The charge assessed by the terminal for the positioning of containers within the terminal/yard.
List showing how cargo is stowed in each container.
Area adjacent to the vessel berth where containers are delivered to and received from the vessel or inland carrier.
The streamline pull of products in response to customer requirements while minimising the cost of distribution.
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.
For-hire interstate operators which offer transportation services to certain shippers under contracts.
Mainly a concept of warehousing or other larger contract based agreements.
A unit cost saving that was not included in the original budget
A company’s primary function considered essential to its success.
Also known as Currency Adjustment Factor. Used to adjust ocean freight due to currency fluctuations.
For more information see: ICCWBO
A legal term used in contracts for international trade that specifies that the seller of the goods is required to arrange for the carriage of goods by sea to a port of destination and provide the buyer with the documents necessary to obtain the items from the carrier.
The costs incurred due to re-work caused by errors. Also includes the cost of lost opportunity due to lack of resources.
Something that must happen if an IT service/process/plan/project or other activity is to succeed.
The critical customer requirements for a project.
The internal critical quality parameters that relate to what’s important to the quality of the process or service to ensure that the product/process or service meets the wants and needs of the customer.
Shipment from one country to another where business is not controlled
Cross-border E-Commerce occurs whenever a product is purchased by a customer outside of the merchant’s home country
Cross-docking is a practice in logistics of unloading materials from a manufacturer or mode of transportation directly to the customer or another mode of transportation, with little or no storage in between.
1 cubic metre = 35,314 cubic feet.
This is a compensatory cost-sharing measure to remove the carrier’s risks associated with currency fluctuations. An overview of CAF calculations can be found here. The charge will apply to all bookings that are taken on these trade lanes. It is applicable primarily, but not limited, to European trades, e.g.: Europe – Far East Europe – Middle East/Red Sea/Indian Sub-Continent US to/from Europe
The party Maersk is contracted with and paying us for our services
Customer Satisfaction Surveys performed throughout the years to continuously measure how we are performing and how satisfied our customers are with the services we provide. As such, we measure the extent to which – according to our customers – we understand their needs. Customers tell us furthermore how responsive, proactive, cost-competitive, innovative, sustainable, accurate and timely we are, how we handle complaints, how our IT systems perform, what the quality level is of the services we provide, if the scope of our services is broad enough and more.
The process of declaring and clearing cargoes through customs.
Consumption Entry Form required by U.S. Customs for importing 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 is used to expedite clearance of cargo. It allows 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 for the 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 finalisation 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 is the law known as the “Foreign Vessel Repair Statute”. It 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 labour and labour 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 (CF-226) and filed at the port of first arrival within 5 working days.
Independent broker certified by the U.S. Bureau of Customs to act for importers and businessmen in the handling of customs formalities and other details of importing and exporting goods.
A joint US government-business initiative intended to strengthen overall supply chain and border security.
Last possible time when containers/cargoes may be delivered to a ship or designated point.
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.
The process of reducing cycle time, cutting costs and improving customer service.
LCL product containers where Damco acts as the consolidator/ co-loader on behalf of customers. Damco offers a DCC service from – to key origins/ destinations.
A methodology that explains how to initiate, plan, execute and close projects successfully.
This fee covers the additional costs incurred by the carrier in the movement of Dangerous cargo from or to an inland location.
Additional costs consist of licenses, permits, and the carrier has to use specialized vendors with certifications that cost more.
This fee will be applicable to dangerous bookings where carrier inland haulage (export or import) has been requested by the customer.
Substances which can pose a significant risk to health and therefore, require special handling and documentation depending on substance classification, mode and regulatory regime. Rule and guidance for DG shipments by air are produced by ICAO (International Civil Aviation Organization) and IATA (International Air Transport Association), for maritime shipments these regulations are produced by the IMO (International Maritime Organization). The most widely applied regulatory scheme is that for the transportation of dangerous goods. The United Nations Economic and Social Council issues the UN Recommendations on the Transport of Dangerous Goods, which form the basis for most regional, national, and international regulatory schemes. We have experts with DG knowledge and training who should be consulted when developing proposals to customers with DG requirements.
Statement of hazordous goods content issues by shipper
Efficiency ratio that measures the average number of days a company takes to pay its suppliers.
Calculation used by a company to estimate their average collection period
For more information, see > www.iccwbo.org
An international trade term used to describe a deal in which a seller agrees to pay all costs and suffer any potential losses of moving goods sold to a specific location.
(1) The physical and legal transfer of a shipment from consignor to carrier and from carrier/ transport agent to consignee.
(2) The act of putting property into the legal possession of another, whether involving the actual transfer of the physical control of the object from one to the other or being constructively effected in various other ways.
A delivery agreement whereby the seller assumes all of the responsibility, risk, and costs associated with transporting goods until the buyer receives or transfers them at the destination port.
For more information, see > www.iccwbo.org
For more information, see > www.iccwbo.org
An order from the consignee, shipper or owner of freight to a terminal operator, carrier or warehouse to deliver freight to another party. On imports, it may also be known as a pier release.
A document which is neither a bill of lading or a waybill but contains an undertaking which
(1) is given under or for the purposes of a contract for the carriage by sea of goods to which the document relates, or of goods which include those goods; and
(2) is an undertaking by the carrier to a person identified in the document to deliver those goods to that person which the document relates.
Delivery orders are capable of transferring contractual rights by way of endorsements, but they are not necessarily documents of title in the sense of being able to pass constructive possession.
Another name for supply chain, with emphasis on the customer or party controlling demand.
This fee is applicable when the customer holds carrier equipment in the terminal for longer than the agreed amount of free time.
It can be incurred for both exports (early drop-off) and imports (late pick-up).
Export: Demurrage days are counted from gate-in (full) to container loading minus free days.
Import: Demurrage days are counted from container discharge to gate-out (full) minus free days.
Applicable to all containers that remain at a terminal location longer than agreed free time.
The depth of the ship is taken as the distance between the undersides of the deck amid ship to the bottom of the keel.
Facility operated by the ocean carrier or his agent at which containers are interchanged with the delivering motor carrier.
Detention charges occur when the consignee holds onto the carrier’s container outside of the port, terminal, or depot beyond the free time that is allotted. Detention is charged when import containers have been picked up, but the container (regardless if it’s full or empty) is still in the possession of the consignee and has not been returned within the allotted time.
This fee is applicable when the customer holds carrier equipment longer than the agreed amount of free time.
Export: Detention days are counted from pick-up empty to gate-in full minus free days.
This fee is applicable to all containers that remain in the customer’s possession longer than the agreed free time.
Not applicable for shipper owned containers.
*Applicable calculation methods may vary by country.
This fee is applicable when the customer holds carrier equipment longer than the agreed free time.
Import: Detention days are counted from gate-out full to gate-in empty minus free days.*
This fee is applicable to all containers that remain in the customer’s possession longer than the agreed free time.
*Applicable calculation methods may vary by country.
The carrier has the ability to hold shipments at transhipment ports until further instructions are received from the customer.
This gives the customers the flexibility to delay the cargo arrival, when it assists them in their business.
Note: the carrier is unable to hold containers longer than 14 days unless the customer submits a written letter of indemnity to the carrier which states that the carrier will not be liable for any cargo damage not covered by Insurance during the extra detention period.
The DIT charge is applicable based on the request by the customer and subject to the carrier’s acceptance.
The unloading of cargo from a container, also called stripping.
Amount added or deducted from base rate to create a rate to or from some other point or via another route.
The size of the parcel/shipment
Customers selling through their webstore (URL) directly to the end Consumer. As part of the omni-channel strategy for most Brands, they want to sell through their own website to help provide a seamless experience to its most loyal as well as new customers
Swedish customs clearance term
Discharge Port is a port where cargo is unloaded from the vessel.
The full range of activities and planning required to move a product from the production line to the end-user.
Used interchangeably with Warehouse. A traditional warehouse only stores inventory (typically on a long-term basis), where a distribution center is a facility that briefly stores inventory until orders get fulfilled and then sent to their next or final destination.
A system of determining demand for an inventory at distribution centres, consolidating the demand information backwards, and acting as input to the production and material system.
Intermediary entity between the producer of a product and another entity in the distribution channel or supply chain, such as a retailer, a value-added reseller (VAR) or system integrator (SI). The distributor performs some of the same functions that a wholesaler does but generally takes a more active role
Fee for diverting cargo from original intended destination port to a new location.
Receipt given for a shipment received or delivered at a pier or dock. When delivery of a foreign shipment is completed, the dock receipt is exchanged for a bill of lading with the transportation line.
Shipping term denoting shipping services from the shipper’s door to the consignee’s door.
Rail car capable of carrying two containers stacked on top of each other.
A request to retrieve and verify the data logger information in a Reefer container. This can be done either via Remote Container Management (RCM) or through manual download by reefer technicians in the port. The data-logger information is taken from controller of the container, containing data like temperature settings, supply/return air, humidity etc.
Marine: The depth to which a vessel’s deepest point is under water. Rail: A cut of coupled cars. Financial: A signed, written order by one party that instructs another party to pay a third party a specific amount. It can also be called a bill of exchange.
99% refund of imported or duty paid materials which are to be re-exported.
Inland transportation from vendors to the port of shipment, and from discharge port to the point of stripping the ocean container. Drayage is hence undertaken for CY and CFS cargo.
A fulfilment method where a store doesn’t keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third party and has it shipped directly to the customer. As a result, the merchant never sees or handles the product
Used to lay up vessels for repair.
Material used around cargo to prevent breakage or shifting, normally provided by shipper. Its weight is included in the rating.
A tax levied by governments on the import, export or consumption of goods. Usually tax is based on the value of goods (ad valorem) although can be based on weights, quantities, etc.
(1) Payment returned for cargo re-exported or trade show material.
(2) A customs refund on re-exported cargo.
A method of using multiple prediction and real time factors to determine the draft limitations on ships.
EAN barcodes are used when the country origin needs to be known. There are 8 digits in EAN 8, where the first two characters are used to define the country of origin, the next 5 are data, followed by the checksum. Both 2 and 5 digit supplementals are also supported.
Income after a company’s taxes and all other expenses have been paid. Also called profit or net income.
EBITDA is revenue and other income deducting operating cost and other cost
The optimum order size that achieves the best possible balance between meeting order needs and minimized ordering and inventory holding costs.
A measure of the shareholder value as a company’s operating profits after tax, less a charge for the capital used in creating the profits. EVA is a registered trademark of Stern & Co. in the USA.
Decrease in unit costs because of increasing Production, so that fixed costs can be spread across more units.
A consumer-driven system of replenishment in which high-quality products and accurate information flow through a paperless (EDI) system between all distribution points from the manufacturing line to the retail checkout counter.
The process of receiving, packaging, and shipping orders. Any company selling products directly to consumers through the internet must deal with fulfilment
Equipment Interchange Receipt. A document used to receive or deliver a full or empty container/chassis at any terminal or inland container pool/depot.
The automated exchange of any predefined and structured data for business among information systems of two or more organisations.
EDI message is an approved, published and maintained formal description of how to structure the data required to perform a specific business function in such a way as to allow for the transfer and handling of this data by electronic means.
Payment for goods or services via exchanges of electronic authorisations against bank accounts. Authorisation is sent to an automated clearing house (usually a bank), which verifies the source of the transaction as having control over the accounts, and performs the fund transfer.
Shipper instruction on ocean shipment for creation of BL
A web -based system that supports the creation of client SOPs and links the SOP to required internal/external operational procedures.
A resource planning approach that integrates all aspects of forecasting, planning and manufacturing for the purposes of efficiently planning resources. Often also used as a term to describe the systems platforms used to support an enterprise. Some of the largest ERP providers include SAP, Oracle, Microsoft and Infor. Many of our customers use these platforms. We have the knowledge and experience to support integration (EDI messaging) with these platforms.
A document transferring the responsibility of a container from one party to another; to be signed off by both parties. A new document is necessary at each stop where there is such a transfer of responsibility.
Report showing discrepancies (errors) in data input.
Estimated times for shipment Arrival and Departure.
The buyer receives the cargo directly from the factory and thereafter arranges shipment, insurance and other related services themselves. For more information see: ICCWBO
Expected Receipt Date in MODS is the day the customer/supplier plan to hand the cargo over to Damco CFS.
Document required of the exporter by the export authority of the country the goods are being exported from specifying the shipment.
A document prepared by a government authority granting the right to export certain materials at a specified quantity to a specified country. License requirements vary by country and ship-to.
A number for required for the exporter on the Shippers Export declaration.
Sea Waybill, this B/L cannot be negotiated or transferred to a 3rd Party.
Additional vessel brought into schedule to cope with exceptionally strong market conditions.
U.S. Government agency responsible for overseeing regulatory aspects of the Shipping Act.
Transportation conveyance utilised to relay cargo from the mother vessel to ultimate destination or from first receipt port to mother vessel.
Feeder Ports are smaller ports as compared to base ports, where mother vessels cannot berth, but smaller vessels can.
A vessel used to connect with a mother vessel to service a port not called at by the mother or line vessel.
Inventory concept to describe that the first received goods are the goods dispatched first, this is particularly important with perishable items.
Truck designed to haul heavy or oversized non-containerisable cargo.
Heavy duty cranes that are able to handle exceptionally heavy cargo if unable to use conventional gantry cranes.
A state of emergency or condition that permits a company to depart from the strict terms of contract because of an event or effect that cannot be reasonably anticipated or controlled, i.e: beyond human control (French superior or irresistible force). Compare: ACT OF GOD, INEVITABLE ACCIDENT, VIS MAJOR.
Persons or firms engaged in the transportation of goods or passengers for compensation. Classified into two general categories, specialised and general freight motor carriers.
Used to describe the size of a forty-foot container (= 2 TEU).
The FCR is a proof of delivery of goods in good order and condition for shipment. The document is issued by us to the shipper and serves as proof to another party that payment to the vendor can take place according to agreed terms. The FCR is not a document to title or evidence of carriage. Under an FCR we are only responsible for goods while they are in our custody, if goods are lost or damaged during transit, the client must file a claim against the ocean carrier.
For more information see: ICCWBO
For more information see: ICCWBO
A freight shipping rate of the loading goods into the ship in the logistics terms that includes the freight rate of cargo and the cost of offloading as per the customs of a port, but the loading of the cargo on the shipboard is not included in the freight rate.
A term in international commercial law specifying at what point respective obligations, costs, and risk involved in the delivery of goods shift from the seller to the buyer under the Incoterms standard published by the International Chamber of Commerce.
Free on board indicates whether the seller or the buyer is liable for goods that are damaged or destroyed during shipping. When used with an identified physical location, the designation determines which party has responsibility for the payment of the freight charges and at what point title for the shipment passes from the seller to the buyer.
In international shipping, for example, “FOB [name of originating port]” means that the seller (consignor) is responsible for transportation of the goods to the port of shipment and the cost of loading. The buyer (consignee) pays the costs of ocean freight, insurance, unloading, and transportation from the arrival port to the final destination. The seller passes the risk to the buyer when the goods are loaded at the originating port.
The time allowed for loading/ unloading containers/ equipment before demurrage or detention charges apply.
Is a special commercial zone often near ports/airports where foreign and domestic merchandise and materials may be brought in without the payment of duties. Goods can be transformed/ stored within zones until exit where duties then become liable for payment. We operate several facilities and operations in FTZ locations.
Usually refers to consolidated cargo.
Destination (Collect) Freight Bill: Prepaid Freight Bill. (1) Bill rendered by a transportation line to consignee containing description of freight shipper name, point of origin and weight charges (if not prepaid). (2) Bill rendered by a transportation line to shipper containing description of freight, consignee, destination and weight charges.
Responsible for collections of freight/charges/release of cargo/release of bills of ladings.
(1) Person engaged in assembling, collecting, consolidating shipping and distributing less than trailerload freight. (2) Also, a person acting as an agent in the transshipping of freight to or from foreign countries and clearing freight through federal customs.
Evidence that the freight charges for the cargo have been paid. If in writing, it may be presented at the pier to obtain release of the cargo. Normally, once the freight is paid, freight releases are arranged without additional documentation. Also known as freight bill receipt.
Fulfillment logistics is the part of the supply chain that involves transporting customer orders and shipments, storing inventory in an ecommerce warehouse, packing boxes, and delivering orders on time.
A fulfillment center is the hub for all of the logistics processes required to get a seller’s product to their customer.
Containers are charged a specific rate for ocean transit regardless of their (lack of) contents. A full container will thus offer a better price per unit shipped than will a LCL.
The trailer is loaded as full as the nature of the freight and other conditions permit, so that no more of the same type of freight can be loaded, consistent with safety and damage precautions.
A relationship between two parties where both share the benefits of value created, originating from the agreement. For example, if in a gain share agreement, we can reduce shipping costs through better equipment utilization, a portion of this value created would flow to our company.
An opening in the bulwark of the ship allowing passengers to board or leave the ship.
Port crane used to load and discharge containers from vessels, can be positioned by moving along rail tracks.
Method of storing apparel in containers for garments that should not be folded.
Gate-in is a term used to describe when a container enters the terminal. The shipper must have made a booking with the shipping line before the container is allowed to enter the area.
Gate-out is the term used to describe when a container leaves the terminal after the container has been released by the shipping line and by Customs.
General Average is defined in the York-Antwerp rules as: There is a General Average act when, and only when, any extraordinary sacrifice expenditure is intentionally and reasonably made or incurred for the common safety for the purpose of preserving from peril the property involved in a common maritime adventure. When a cargo ship encounters a serious accident at sea, e.g. a grounding, the vessel owners may ha to incur additional costs to salvage the ship and its cargo and may resort to declaring General Average.
General Average requires that all parties with an interest in saving ship, the cargo, etc. share proportionately the cost of saving the common adventure. This means that cargo owners would be responsible a proportion of the costs equal to the proportion of the value of the cargo to the common adventure. General Average is applied according to an internationally acknowledged set of rules, the York-Antwerp rules.
A program providing for free/ reduced rates of duty for merchandise from beneficiary developing independent countries and territories to encourage their growth.
Generator sets which supply power to refrigerated containers when no external source is available. It is used to regulate the temperature in a reefer container. It can use its own power or plugs provided on the pier/vessel.
The internationalization of international business, communications and culture.
The evaluation and modification of an organization’s entire supply chain from design, planning, purchasing, sourcing, production, shipping and returns to minimize the environmental impact of the supply chain, often resulting in cost savings. We have several capabilities and initiatives to support green supply chain development with key customers.
Gross Merchandise Value is a term used in online retailing to indicate a total sales dollar value for merchandise sold through a particular marketplace over a certain time frame. There are a few ways to calculate GMV. The simplest explanation for a retailer is that GMV is the sales price charged to the customer, multiplied by the number of items sold.
A ship’s total internal volume expressed in “register tons”, each of which is equal to 100 cubic feet (2.83 m3). Gross register tonnage uses the total permanently enclosed capacity of the vessel as its basis for volume, it is not a measure of the ship’s weight or displacement and should not be confused with terms such as deadweight tonnage or displacement. Typically, this is used for dockage fees, canal transit fees, and similar purposes where it is appropriate to charge based on the size of the entire vessel.
Weight of goods including packaging.
A set of rules designed to resolve the problem of ship owners excluding themselves from all liabilities related to loss or damage of cargo under their control. Carrier must demonstrate “reasonable care” in the handling of cargo.
The cost involved in transferring, preparing and otherwise contracting inventory.
Specialized container equipped with hanger beams for the purpose of stowing garments on hangers.
A cargo description, which is a contradiction of terms. A chemical is a substance and whether it is harmless or not, depends on the context in which the substance appears or is used. Maersk does not accept harmless chemicals as a valid cargo description on the shipping documents.
The Harmonized Commodity Description and Coding System, is an internationally standardized system of names and numbers to classify traded products. It came into effect in 1988 and has since been developed and maintained by the World Customs Organization (WCO). Under the HS Convention, the contracting parties are obliged to base their tariff schedules on the HS nomenclature, although parties set their own rates of duty.
An organized listing of goods and their duty rates which is primarily used by Customs as the basis for classifying imported products and therefore, establishing the applicable duties.
The local transport of goods also used interchangeably with cartage/ drayage. More common in Europe as a way of describing road transportation.
A type of cargo that includes substances capable of posing unreasonable risk to the personnel, vessel and marine environment. Such goods are classified under the IMDG code which gives detailed information about the risk and nature of the individual substances as well as guidance on special handling.
Charge for cargo which is too heavy to be lifted by standard cranes or ship’s tackle.
Equipment type used when a reefer is supplied in the place of a DRY/HIGH container.
High-cube 40 foot-long or 45-foot-long container with additional height
Marrying 2 or more portions of one shipment that originate at different geographical locations, moving under one bill of lading, from one shipper to one consignee. Authority for this service must be granted by tariff publication.
Section of vessel in which containers are stored.
The expansion, acquisition or merger of firms in similar industries/ segments. E.g. supermarket chain merging with another.
A House Bill of Lading is issued by a Freight Forwarder (e.g. Damco). This allows the freight forwarder to procure and essentially resell the transport whilst holding cargo until payment by the customer via the Master BL/ Master Sea Waybill. The HBL should always be issued on a back-to-back basis with a MBL, which means that the HBL should be an EXACT replica of the MBL issued by the actual Shipping line, in respect of all details except the shipper, consignee and notify party details which will be different in the HBL and MBL.
A centralized location, can refer to the center of an airline, trucking or maritime network that connects many routes (spokes) in the network. By most optimally locating hubs, companies can maximize transport efficiencies and access to markets.
Tractor that pulls containers around the pier for positioning. Also known as a yard hustler.
International Maritime Control Organisation classification for hazardous cargo.
International Maritime Dangerous Goods Code, see Dangerous Goods.
Import Cargo Manifest can be defined as a declaration by the carrier to the Customs about all Containers and their content loaded on a particular vessel. It is also referred to as the Import General Manifest or IGM.
Tax on imported goods and services from abroad.
A document required to import certain goods and services.
See 10+2 Rule.
Goods and services which one country’s residents purchase and transport from another country into their own country.
Import Shipment.
The Incoterms® rules are a globally-recognised set of standards, used worldwide in international and domestic contracts for the delivery of goods, brought together by the International Chamber of Commerce (ICC). They help traders avoid costly misunderstandings by clarifying the tasks, costs and risks involved in the delivery of goods from sellers to buyers. The Incoterms® rules are recognised by UNCITRAL as the global standard for the interpretation of the most common terms in foreign trade. Incoterms® 2020 have come into effect on 1 January 2020. All contracts made under Incoterms® 2000 and any other previous editions remain valid and parties to a contract for the sale of goods can agree to choose any version of the Incoterms® rules. However, it is recommended using the most current version of the rules, Incoterms® 2020. It is important to clearly specify the chosen version.
For more information, training and app, see: https://iccwbo.org/resources-for-business/incoterms-rules/
A separate action taken by an individual member of a conference agreement to change rates or terms of carriage as laid out in the conference agreements.
Carrier that is not a member of a shipping conference.
A quantitative measure of the rate at which the average price level of a basket of selected goods and services in an economy increases over a period. Often expressed as a percentage, inflation indicates a decrease in the purchasing power of a nation’s currency.
Transportation company which hauls imports or exports between ports and inland points.
A document issued by an inspection authority, indicating that goods have been inspected according to certain regulatory, customer or industry standards.
Document which assures the consignee that insurance is provided to cover loss or damage to the cargo while in transit. A certificate issued by an insurer to a shipper (or other party) as evidence that a shipment of merchandise is covered under a marine policy.
Carriers that have both air and ground fleets or other combinations, such as sea, rail and truck. They usually handle thousands of small parcels an hour.
A company arranges direct delivery of the goods to the customer from the stocks of another company belonging to the same corporate group.
A non-governmental membership-based organization representing freight forwarders and logistics providers in some 150 countries
This is strictly a numeric barcode. Each encoded character is made up of five elements, two are wide and three are narrow. The number of characters to be printed must be an even number. If the number of characters to be printed is odd, a zero will be appended to the beginning of the code.
Coordinated transport of freight, especially in connection with relatively long-haul movements, using any combination of freight forwarders, piggy-back, containerisation, air freight, assemblers, rail and road.
Consolidates container loads or piggyback trailers from several shippers and contracts with railroads for volume space.
The coordination of freight transport using a combination of transport modes e.g. barge and truck.
Trade association serving airlines, passengers and shippers, defines key rules for transport of cargo, maintains a global list of airport codes.
Trade association representing freight forwarders worldwide to promote industry interests, uniform documentation and terms for forwarding activities.
Freight torwarders that handle booking, paperwork and consolidation of exports.
International Maritime Control Organisation. See IMO.
An amendment to the Safety of Life at Sea Convestion on minimum security arrangements for ships, ports and government agencies. It prescribes responsibilities to governments, shipping companies, shipboard personelle and port/facility personal to detect security threats and take preventative meausres against security incidents affecting ships or port facilities used in international trade.
The value or listing of raw materials, work in progress and finished goods on-hand at any point of time within the supply chain.
Generally, carrying costs or holding costs are financial measurements that calculate all the costs associated with holding goods in storage. It includes inventory-in-storage, warehousing, obsolescence, deterioration, spoilage and labour costs, as well as insurance and taxes.
The cost of goods sold, divided by the average level of inventory on hand. The ratio measures how many times a company’s inventory has been sold during the year.
The speed with which products move from receiving dock to shipping dock.
See Commercial Invoice.
Inland Point Intermodal. Cargo moving via land from/to an inland point. See also Micro Bridge.
Information System Agreement. Leading organisation of ocean carriers that develops, promotes and implements electronic commerce solutions for the maritime industry.
(1) Immediate Transportation Entry: refers to an IT entry (U.S. Customs). Allows the cargo to move beyond the vessel entry point in bond for customs clearance at the destination named in the I.T. movement from one customs district to another, e.g. cargo entering the U.S. at Los Angeles destined for Chicago can move to Chicago before having a customs inspection. (2) Information Technology: A generic term for people or systems working toward business improvement.
International Transport Implementation Guidelines Group.ITIGG is an international group of experts engaged in the development and implementation of UN/EDIFACT-standard messages for electronic trading in the transport industry. ITIGG is a subgroup of D4, the UN/EDIFACT Message Development Group for Transport. ITIGG develops recommendations which provide software developers with a series of simple, straightforward tools to assist in designing applications which can be used for trading electronically throughout the world, and to clarify the intentions of the designers of key UN/EDIFACT messages.
A rate from a point located on one transportation line to a point on another transportation line which is published in a single tariff.
Section 27 of the Merchant Marine Act of 1920, requiring that all shipments by water between ports in the United States (including Puerto Rico) be carried by U.S.-flag, be U.S.-built, and U.S.-crewed vessels.
Journal of Commerce A trade publication. Trade transportation journal.
In this method of inventory control, warehousing is minimal or non-existent; the container is the moveable warehouse and must arrive “just in time,” i.e. not too early and not too late.
A Japanese word meaning improvement. Specifically used in continuous improvement approaches: small, ongoing positive changes can reap major improvements.
Cargo, including all commodities, requiring a label according to the provisions of the International Maritime Dangerous Goods Code.
The act of loading cargo.
Containers moving from a foreign country by vessel, and then sent to an inland point in the U.S. or elsewhere by land transportation (rail or truck). See also MLB.
The total cost of a shipment delivered to a named location, specifically the cost of goods plus all associated shipping costs.
Inventory concept to describe that the last received goods are the goods dispatched first.
Common term for an amount of goods to be shipped and which do not fill an entire container. Ocean rates for LCL are commonly higher on a per-unit basis than for a full container load. Thus, consolidation of several LCL loads from different places or shippers into a full container can save on costs.
See “”Less Than Container Load”” (LCL).
(1) Letter of agreement issued by a bank stating a foreign purchaser has established a line of credit in a seller’s favor and confirming that payment for goods will be made upon presentation of certain documents which are in agreement with terms on the letter of credit. (2) A letter addressed by a banker to a correspondent certifying that a person named therein is entitled to draw on him or his credit up to a certain sum. (3) A letter addressed by a banker to a person, to whom credit is given, authorizing him to draw on the issuing bank or on a bank in his country up to a certain sum and guaranteeing to accept the drafts if duly made, also called commercial letter of credit, confirmed credit or confirmed letter of credit. Letters of credit may take various forms, represent various undertakings for various purposes and be subject to different conditions.
A document which the shipper indemnifies the shipping company against the implications of claims that may arise from the issue of a clean Bill of Lading when the goods were not loaded in accordance with the description in the Bill of Lading. There are two different letters of indemnity: letters of indemnity for quantitative clauses and letters of indemnity for non-quantitative clauses. When the Bill of Lading forms the basis of a documentary credit, the bank demands a clean Bill of Lading. This is a Bill of Lading without reservations by the captain. If for one reason or another, the goods were not loaded as prescribed, the captain may want to put reservations on the Bill of Lading. By doing so, the Bill of Lading is no longer clean and the bank will not give documentary credit. In order to remedy this, it is custom to put the reservations not on the Bill of Lading, but on the mates receipt and to draw up a letter of indemnity which the shipper indemnifies the captain (the shipping company) against the potential implications thereof.
LoLo ships are cargo ships with on-board cranes to load and unload cargo.
Marine portion of a vessel’s route covering the greatest distance, usually across an ocean (e.g. Singapore-Los Angeles).
A freight shipping rate of the loading goods into the ship in the logistics terms that includes in the freight rate, whereas unloading is not.
Liquified Natural Gas Carrier.
Physical placement of cargo within a container, truck or on a vessel/ aircraft or other means of transport.
Term used to describe modification and preparation/ translation of products to serve the needs of a specific market.
The management of freight and information throughout the total supply chain from the original raw material source to the ultimate consumer of the finished product, encompasing factories, assembly and packing plants, warehouses, distribution centers and retail outlets.
Also known as stevedore. Worker who loads and unloads a ship. Terminal operator who is designed to facilitate the operation of loading and discharging vessels, as well as other terminal activities.
Long Ton1 Long Ton = 2,240 lbs
A carrier employing vessel(s) in the main or principal routes in a trade but not participating within a consortium.
Entire listing of all cargo on board a vessel as required by the relevant local authorities e.g. customs. Same as cargo manifest.
The identifying details on or of a package or the actual markings that appear on the packages.
A contract of carriage between the carrier and customer issued by the Shipping Line (carrier) to the NVOCC Operator, Freight Forwarder, or customer. The MBL is a document of title.
A document prepared by a supplier/ shipper of hazardous materials that details safety information and procedures for handling or using the product or material. MSDS sheets typically contain a listing of hazardous ingredients, handling procedures, first aid procedures and precautions.
The procurement, movement and management of materials and products from acquisition through to production.
Service of coordinating 3rd party logistics services (Merchant Haulage arrangements) on behalf of the customer. This service is applied based upon the customer’s request for the carrier to coordinate inland haulage on a merchant haulage Bill of Lading. The customer holds the contract with the haulage provider. The carrier can refuse to offer this service.
Metric Ton. 1 MT = 2,204.62lbs or 35.314 cft.
A scheduled event that marks the completion of a defined phase within a project or flow of goods.
A Milk Run is a delivery method used to transport mixed loads from various suppliers to one customer. Instead of each supplier sending a truck every week to meet the needs of one customer, one truck (or vehicle) visits the suppliers to pick up the loads for that customer. This method of transport got its name from the dairy industry practice, where one tanker used to collect milk from several dairy farms for delivery to a milk processing company.
Shipment consisting of items described in and rated under two or more rate items within a tariff.
An abbreviation for Mini Land Bridge Containers moving from a foreign country by vessel, and then sent to an inland point in the U.S. or elsewhere by land transportation (rail or truck). See also Land Bridge.
Main ocean vessel in a liner service designated to move containers from set origin points to set destination ports/points on a regular basis.
This barcode is a variable length barcode that can encode up to 15 numeric digits. Checksum generation is dependent on the value of the checksum parameter. The following table indicates the value of the checksum property and the type of checksum created. Setting, Description, 0, one modulus 10 checksum, 1, two modulus 10 checksums, 2, one modulus 11 checksum/one modulus 10 checksum.
Damco program where cargo, from multiple individual countries, is shipped to a single location for consolidation into larger shipments to destination, thus minimizing shipping costs whilst maintaining security and reliability within the supply chain.
Use of multiple modes of transport to move products from origin to destination.
Outsourcing of production/ sourcing that is in a country close to the domestic market of the contracting company.
Something that can be negotiated, transferred or assigned from one person to another in return for equivalent value by being delivered either with endorsement (as of an instrument to order) or without endorsement (as of an instrument to bearer) so that the title passes to the transferee who is not prejudiced in his rights by any defect or flaw in the title of prior parties nor by personal defenses available to prior parties among themselves provided in both cases that the transferee is a bona fide holder without notice e.g. bills of lading, bills of exchange, promissory notes, and cheques that are payable to bearer or order are negotiable instruments, as are also, in some jurisdictions, some other instruments (as bonds, some forms of stock) i.e. negotiable paper/negotiable securities. “Negotiable” used analogously for “transferable” – see also negotiability/transferability.
Bank where a shipper negotiates documents or where documents are first presented, usually at country of origin. Also, often referred to as the advising bank.
Three or more different sizes of the same item or commodity which must be enclosed, each smaller piece within the next larger piece, or three or more of the items must be placed one within the other so that the top item does not project above the lower item by more than 1/3 of its height. Nested Solid: Three or more of items must be placed on or inside the other, so that the external side surfaces of the top item is in contact with the internal side surfaces of the item below, and the top item does not project above the next lower item by more than 1/2 inch.
A leading indicator of future growth and is measured via a very simple but highly relevant question: “Based on your experience with Maersk, how likely are you to recommend Maersk to a business associate or colleague?
Customers are invited to score us on the above-mentioned question on a scale ranging from 0 to 10. Those who give us a score 9-10 are considered to be our Promoters. They are loyal to Maersk and will keep buying from us and refer others to us, fueling growth. Passives (score 7-8) are satisfied but unenthusiastic Maersk-customers who are vulnerable to competitive offerings. Detractors (score 0-6) are unhappy customers who can hamper growth through negative word-of-mouth. Subtracting the percentage of Detractors from the percentage of Promoters gives the Net Promoter Score. The NPS can range from -100 (every customer is a Detractor) to +100 (every customer is a Promoter).
The weight of goods without packaging.
Investigating body designated by conference carriers to ensure that all regulations and rules are adhered to.
Third party providers who generally do not own assets, such as transportation and/or warehouse equipment.
A document not made out “to order”, but being a receipt and evidence of the contract of carriage, but which is not a document of title, e.g. a waybill and, in some jurisdictions (such as the USA), a (straight) consigned bill of lading.
Non-Vessel Operating Common Carrier, A Carrier offering an international cargo transport service through the use of underlying carriers and under their own rate structure in accordance with tariffs filed with the Federal Maritime Commission in Washington D.C.
A set of rules development by the Nordic Association of Freight Forwarders, including the freight forwarders liability under various transport law conventions, such as SIM, CMR, the Hague-Visby Rules and the Warsaw Convention. The Norid Association of Freight Forwarders is a coalition of unions in Denmark, Finland, Norway and Sweden and is in turn a part of FIATA, the international Freight forwarder organisation
Not Otherwise Enumerated
Not Otherwise Stated.
Company/person who appears on the bill of lading or waybill to be notified when the cargo arrives at destination. Could be different from the consignee but is often the actual receiver of the goods. A notify party has no particular rights (beyond the notification) under the bill of lading or waybill.
Used in our Operating System to denote freight forwarding shipments; used more generally to describe an ocean freight forwarder/ NVOCC.
Origin Motor Terminal, Origin Rail Terminal, Destination Motor Terminal. Location designated by a motor/rail carrier at origin/destination points where, the motor carrier or his authorized agent assembles, holds or stores an ocean carrier’s containers and chassis; where loaded containers are received from shippers or their agents, where empty containers are delivered to shippers or their agents.
Cargo stowed on the deck of the vessel.
Service of providing inland import transportation to our customer’s premises from the port of discharge. This offers the customer flexibility of door-to-door transportation. This service is applicable when the carrier provides inland transportation to the desired inland location, based on the request of the customer.
The proportion of time that a transit system adheres to its published schedule times within stated tolerances.
During the course of any project questions will arise. Keep a working list of open issues and identified problems which must be solved. Update the status of each issue as it is addressed.
Rates established for each individual carrier. These rates are listed in a tariff list but may differ according to carrier.
A News solution on Connect enabling quick and efficient sharing of information relating to daily operations. Possible to subscribe to customizable alerts.
The sales opportunities where we want regional support from the solution engineers and building blocks team need to be passed through the OMEB and approved before assistance is provided
This includes the time and the process involved from the placement of the order to the receipt of the shipment. It includes the following processes: Communicating the order, order processing, transporting the shipment.
Order Management System. It is any tool or platform that tracks sales, orders, inventory, and fulfillment as well as enables the people, processes, and partnerships necessary for products to find their way to the customers who bought them
Process or work-flow associated with the picking, packing and delivery of the packed items to a shipping carrier
The OCC is a document containing Damco’s standard charges for origin related activities. Charges are assessed annually and adjusted subject to cost inflation, market development and profitability objectives.
Original bill of lading. See also Negotiable Bill of Lading.
A company that produces parts and equipment that may be marketed by another manufacturer.
The service is to handle and ship cargo that is “out-of-gauge”. This is to provide the ability to ship cargo which exceeds the dimensions of standard containers by length, width, height and/or weight, but which still remains feasible for the carrier to handle as ‘containerized cargo’. This fee is applicable to out of gauge shipments.
Export shipments.
Out-of-Gauge Cargo describes break bulk cargo, which is not suitable for stuffing into a standard container due to the cargo dimensions and which requires the use of special equipment like flat racks, platforms- or open top containers.
Destination port, other than a base port, to which rates apply but which may be subject to additional outport arbitraries.
To hire a third-party provider to assume tasks previously performed in-house.
(1) Cargo volume count more than originally shipped. (2) Cargo taken beyond original port of discharge.
A special rate concession made by shipping lines, rail carriers and truckers serving the U.S. West Coast for export and import traffic, intended to benefit Midwest shippers and importers by equalizing rates to and from other coastal areas, and offering these Midwest companies a comparable alternative. The steamship companies lower their rates, and the inland carriers pick up the terminal charges, which consist of handling charges, wharfage charges and car loading or unloading charges. OCP rates apply to cargo shipped from or consigned to the states of: North Dakota, South Dakota, Nebraska, Colorado, New Mexico and all states east thereof. OCP rates in Canada apply to the provinces of: Manitoba, Ontario and Quebec.
Booking Services at Origin or Destination, a single point of contact provided with accurate and timely freight bookings.
Logistics handled internally by a company.
Basic domestic and international transport handled for a company by an outside provider e.g. a shipping line.
The integration and management of all logistics services of a complex supply chain usually involving several sub-contractors managed by a logistics company on behalf of a customer.
Trademark term (Accenture 1996) “an integrator that assembles the resources, capabilities and technology of its own organization and other organizations to design build and run comprehensive supply chain services”.
List of packages for each shipment, showing individual breakdown in weights/measure and quantity.
Wooden structure used to support cargo and ease movement by forklifts.
Also known as the 80-20 rule, postulates that 20% of the effort leads to 80% of results.
A chart that indicates the temperature reading in a reefer container.
Shippers and providers who enter into agreements designed to benefit both parties.
On a daily basis.
All logistics activities from the production line to the final user, including traffic, packaging, materials handling, warehousing, order entry, customer service, inventory control etc.
Picking a piece of inventory out from a warehouse and packing it for shipment
A structure built away from land and extending some distance over water, often used for docking boats. Also known as a wharf.
The transportation of highway trailers or demountable trailer bodies on specially equipped rail flat cars.
Cargo stolen from the container, warehouse or terminal.
Depth to which a vessel may safely load. Identified by a circle on the vessel’s side with a vertical line through and a number of small horizontal lines showing the max depth for summer and winter.
Point of sale refers to the time at which a cardholder and a merchant complete a transaction. This is present in online purchases, Door Deliveries and transactions carried out in traditional brick and mortar stores. The point of sale (or POS) in retail industries uses a combination of software as well as hardware.
South Europe Conference [SEAC] charge incurred when the shipper is not able to deliver cargo directly alongside the vessel. The carrier may assess its expenses in moving cargo from the shipper’s point of delivery to the vessel.
A port where cargoes and containers are unloaded from a vessel.
A port where cargoes or containers are loaded onto a vessel.
The moving of empty equipment from surplus areas to deficit areas.
An assessment and review of the completed project/solution. It should be performed after a period of live running, sometime after the project is completed. The purpose is to ascertain the degree of success from the project, the efficacy of the solution to see if further improvements can be made and to learn lessons from the project which may benefit future projects for the team members/organization.
The POSTNET barcode is used on envelopes and postcards that are sent through the U.S. Postal Service. This barcode is placed in the lower right-hand corner of the envelope.
Service of providing inland export transportation from our customer’s premises to the port of loading. This offers the customer the flexibility of door-to-door transportation. This service is applicable when the carrier provides inland transportation from the desired inland location, based on the request of the customer.
A service arranged by the carrier to have a technician perform an extra check on temperature-controlled containers to ensure that the unit is functional and ready to transport commodities at the required temperature settings. The inspection is performed before release of the empty container. This service is applied upon the customer’s request and/or to certain types of commodities where it is mandatory to be applied in order to permit transport of the shipment.
Commonly used abbreviation when contacting the Finance GSC team handling late ICB creation (for example emails to: PNQGSCPNFICB@maersk.com)
A charge paid by shippers to ship agents for services provided by the agent in Turkish and Greek ports, generally for loading activities conducted by port stevedores. It is not an actual contractual term so the obligation to pay does not depend on its inclusion in the bill of lading.
Turkey: 3% on Total Ocean Freight including all surcharges and intermodal charges.
Greece: 3% Piraeus, 5% Salonika (except on cargo originating in Bulgaria).
An informal preliminary document (usually invoice) sent to buyers describing a shipment of goods in advance of their delivery.
Documentation signed by the receiver of goods to evidence the completion of the shipment of goods.
Maersk Line’s liability insurance. It protects us for ordinary losses (damage to cargo, pollution, personal injury etc.) but NOT for risks that arise out of bad business practices (Ad valorem BL, knowing mis-description of cargo etc.).
A form of mutual maritime insurance provided by a P&I Club. A P&I Club provides cover for open-ended risks that traditional insurers are reluctant to insure. Typical P&I cover includes: a carrier’s third party risks for damaged caused to cargo during carriage; war risks; and risks of environmental damage such as oil spills and pollution.
A production and distribution strategy based upon specific customer demand. In a pure pull strategy, only goods and services that are ordered by a customer are produced and shipped, e.g. the historical DELL model of PC production to order.
Common grouping of orders for goods/services. Several SKU categories may be listed on one purchase order. Most customers group their orders in a particular way to facilitate distribution at the other end. For example, one purchase order for an apparel importer might encompass 2 dozen green sweaters and 2 dozen red sweaters. If those P.O.s originated from the same store, it is simple for the store to put all items under that P.O. onto the right truck.
A production and distribution strategy based upon forecasts rather than actual demand, essentially product is produced towards forecast and stored in inventory until required.
The systematic planning, measuring and control of a combination of people, materials, metrology and machines, with the objective of producing a product that satisfies the quality and profitability of the enterprise.
A quarterly meeting with a key customer to discuss operational and business improvements and ways forward. (30% looking backward, 70% looking forward).
A pier, wharf or other structure built along a shore for landing, loading and unloading boats or ships.
Manual / SOP / description of how a task is done.
A consumer-driven system of replenishment in which high-quality products and accurate information flow through a paperless (EDI) system between all distribution points from the manufacturing line to the retail checkout counter. Distributors, carriers and suppliers act as trading partners and focus on improving the total supply system.
A legal instrument used to release one person’s right, title or interest to another without providing a guarantee or warranty of title.
Officially the Importer Security Filing (ISF) for US bound cargo; the importer or their agent must supply the Customs & Border Protection (CBP) with the ISF filing containing 10 data elements (importer: Manufacturers Name & Address, Seller/Owner Name & Address, Ship To, Stuffing location, Consolidator, Importer of record, Consignee numbers, Country of Origin, HTS Code) + 2 (Carrier: Vessel stow plan, Container status messages) 24 hours prior to vessel loading in a foreign port.
Location for loading and unloading containers at railroad terminal.
Group of carriers who discuss rates and common problems with options to file independent tariffs.
Can be issued on the carrier’s actual receipt or taking custody of goods, if requested goods are not yet necessarily loaded on board a vessel or other conveyance. This form of bill of lading would usually be switched to an on-board bill of lading or added as an on-board notation upon the actual loading of goods on board a vessel or other conveyance.
Refers to a refrigerated container.
An approach to improving business operations through reinventing, reevaluating, redesigning and redoing.
A unit of interior capacity of ships.1 Register Ton = 100 cubic feet or 2,832 cubic meters. Also known as vessel ton.
Marine shipment that is transferred to its ultimate destination port after having been shipped to an intermediate point.
Cargo is released from the carrier to the consignee/ agent.
The process of moving the inventory of an item from a reserve storage location to the primary picking location or to another mode of storage in which picking is performed.
A formal request by a company or customer for information or prices on products/ services or a defined quotation to support customer needs.
A restow is a move where a container is off loaded from on board the ship and put back onto the ship either at the same stow position or a different stow position. This could be due to incorrect stowage of a container or a change of destination was requested at a later stage.
Cargo to be returned to original place of receipt.
Number of tons which freight is paid for per ton.
Reverse Logistics is a rather general term. In its broadest sense, reverse logistics stands for all operations related to the reuse of products and materials. The management of these operations can be referred to as Product Recovery Management (PRM). PRM is concerned with the care of products and materials after they have been used. Some of these activities are, to some extent, similar to those occurring in the case of internal returns of defective items due to unreliable production processes. Reverse logistics refers however to all logistics activities the collection, disassembly and processing of used products, product parts and/or materials in order to ensure a sustainable (environmentally-friendly) recovery.
RoRo ships typically come with ramps or slips that allow workers to drive wheeled cargo on and off them.
Roll on/Roll off Vessel used for carrying cars and light trucks. Vehicles are driven on and driven off, as opposed to being loaded with cranes or other external equipment.
See IMO, recent updates to SOLAS, effective July 2016, require that the shipper (or a third party under the shipper’s responsibility) is required to weigh the packed container or all of its contents, depending on the selected method. The weighing equipment that is used must meet national certification and calibration requirements. The SOLAS amendments demand that the weight verification must be ‘signed’: a specific person must be named and identified as having verified the accuracy of the weight calculation on behalf of the shipper. A carrier may rely on this signed weight verification as being accurate.
The average volume of inventory on hand when a new order is received, safety stock is put in place usually to cope with demand and supply volatility and is a factor of volatility, product value, customer needs and product complexity. Safety stock on many occasions is a high cost for organizations. Our SCD teams can review inventory management practices for key customers and suggest improvements.
Seals are ‘one-time door locks’ used to secure goods containers. Each seal-lock can be used only once. Seals are numbered for record and security purposes, minimize the risk of unauthorized access and manipulation to the container contents. After a container is stuffed, the seal must be applied and the number documented. Heavy-duty container seals are designed to withstand natural elements and last the entire voyage of the container until it is removed by the customer at the destination. Unbroken seal can be a proof of integrity.
A type of bill of lading used for port-to-port or combined transport carriage. A waybill is identical to a negotiable bill of lading except that it is not a document of title. There are no originals issued for this type of document. In some jurisdictions, such as the USA, a waybill is deemed the equivalent of a (straight) consigned bill of lading. See also Waybill.
Sell through rate is a calculation, commonly represented as a percentage, comparing the amount of inventory a retailer receives from a manufacturer or supplier against what is actually sold to the customer
Private contracts between one or more carriers and one or more shippers to transport cargo between specified points under terms and conditions of carriage agreed and listed in the contract. It often allows for particular rates based on volume over a specified period of time. Also commonly known as a service contract.
A contract or addendum between the client and service provider that specifies in measurable terms the type, quantity and quality of the services the service provider will provide.
Specific temperature that a refrigerated container has been set to keep. Ideally, the set point and the actual temperature should be identical throughout the voyage.
Shanghai Shipping Exchange (SSE), jointly founded by the Ministry of Transport and Shanghai Municipal People’s Government on November 28 1996 under the approval of the State Council, is the first state-level shipping exchange in China and the founding of the SSE represents a major step taken by the Chinese government to promote and invigorate China’s shipping market and match the construction of Shanghai International Shipping Center.
A delivery of a parcel
A date range set by the buyer, during which time the supplier must ship the cargo. The buyer decides on the dates based on when he will need the stock. If the buyer chooses a date that is too early, he may not have space for the stock. If he chooses a date that is too late, he may not have the stock in time for a sale.
Shipped on Board is a definite statement that the goods are actually on-board the vessel. This is the most satisfactory type of receipt and the shippers prefer such a B/L as there is no doubt about the goods being on-board.
1) Person who consigns something (e.g. the goods of an individual shipment). 2) Legal entity or person named on the bill of lading or waybill as shipper and/or who (or in whose name or on whose behalf) a contract of carriage has been concluded with a carrier. Also known as consignor.
Contents of containers as loaded (stuffed), stowed (packed/braced), weighed and/or counted by or for the shipper, usually a CY load.
A form required by export authorities of many countries to document the export of goods.
Shipper instruction on ocean shipment for creation of BL
Equivalent of booking and contract of carriage evidencing the agreement to transport goods.
Suppliers of various items to the vessel.
Cargo volume count (at delivery destination) less than originally shipped.
Cargo missing a vessel that it was originally intended for.
The act of moving the cargo (vehicles) within the terminal/port or from one terminal to another in the same port on its own wheels. In rail it is the process of sorting items of rolling stock into complete train sets or consists, or the reverse.
A carrier’s chartering of slots/spaces on other carrier’s vessels.
User Group for Shipping Lines and Container Terminals. SMDG develops and promotes UN/EDIFACT EDI messages for the maritime industry and is an official Pan European User Group recognized by the UN/EDIFACT Board.
An official form usually required by U.S. Customs if the rate of duty is based upon the value, and the value of the shipment exceeds USD 500. This document is usually prepared by the foreign exporter or his forwarder and is used by customs in determining the value of the shipment. The exporter or his agent must attest to the authenticity of the data furnished.
Rate established for a specified commodity for a specific period of time.
Steamship.
1 Short Ton = 2 000 lbs.
The Standard Carrier Alpha Code (SCAC) is a privately controlled US code used to identify vessel operating common carriers. It is typically two to four letters long. The National Motor Freight Traffic Association developed the SCAC code in the 1960s to help road transport companies computerize data and records.
Reference to Standard Trading Terms which outline the general position of our company regarding the conduct of its services and limitations of liabilities in specific circumstances.
Abbreviation for Said To Contain.
The rear part of a ship, technically defined as the area built up over the sternpost, extending upwards from the counter to the taffrail.
Terminal operator who is designated to facilitate the operation of loading and discharging vessels and various terminal activities. Also known as longshoreman.
Smallest unit grouping for goods, normally indicating a single retail item. Usually, several SKUs will be under one purchase order.
Charge for goods held in storage facilities (warehouses) under a fixed agreement for periods of time, and which is not included in other arrangement.
Service of providing inland import transportation to our customer’s premises from the port of discharge. This offers the customer flexibility of door-to-door transportation. This service is applicable when the carrier provides inland transportation to the desired inland location, based on the request of the customer.
A service offered to the customer in which the carrier performs stripping (cargo unloading) or stuffing (cargo loading) of the customer’s container at the port area. This service is applied based upon the customer request.
A service offered to the customer in which the carrier performs stripping (cargo unloading) or stuffing (cargo loading) of the customer’s container at the port area. This service is applied based upon the customer request.
Sulphur Emission Control Areas (SECAs) or Emission Control Areas (ECAs) are sea areas in which stricter controls were established to minimize airborne emissions (SOx, NOx, ODS, VOC) from ships as defined by Annex VI of the 1997 MARPOL Protocol which came into effect in May 2005. Annex VI contains provisions for two sets of emission and fuel quality requirements regarding SOx and PM, or NOx, a global requirement and more stringent controls in special Emission Control Areas (ECA). These regulations stemmed from concerns about the contribution of the shipping industry to “”local and global air pollution and environmental problems.”” By July 2010 a revised more stringent Annex VI was enforced with significantly tightened emissions limits.
The movement of materials and information through the logistics process from acquisition of raw materials to delivery to end-user. The supply chain includes all vendors, service providers and customers.
Backed by extensive experience in supply chain and project management, our SCD teams use proven methods and analytical tools to implement solutions that help customers to maximize the value they gain from their supply chain.
The management and control of all materials and information in the logistics process from acquisition of raw materials to delivery to end-user.
Additional charges above ocean freight. See also Add-Ons.
Society for Worldwide Interbank Financial TelecommunicationA cooperative organised under Belgian law providing the following services to participating financial institutions: Letters of credit (opening and transmission), money transfers, payment security settlements. Other businesses participating in SWIFT are: Security brokers and delaters, clearing and depository institutions, security exchanges and travellers cheques issuers.
This service is provided by the carrier to ‘switch’ transport documents (B/L’s) to show new parties by issuing a 2nd set of documents. A ‘switch’ is used to prevent the shipper from being visible to the buyer and protects the interests of the cargo intermediary. The service is applicable upon the customer’s request for this service.
Weight of an empty container. Gross weight = net weight + tare weight.
List of published rates, rules and regulations applicable to the transportation of goods in specified trade lanes or between two areas.
An electronic message transmitted from an agent or shipping line at the port of loading (POL) to the agent at the port of discharge (POD). This message signifies that the shipper has surrendered the original Bill of Lading (OBL).
This service covers the cost of the handling of a container at the destination port or terminal. This service is applicable to all shipments.
This service covers the cost of handling a container at the origin port or terminal. This service is applicable to all shipments.
Charge assessed by the terminal for cargo being delivered for export.
The terms of carriage are printed on the first page of every Bill of Lading and are available via the homepage of the individual carrier. They document the contractual general terms and conditions under the shipping contract.
Terms of Sale (i.e. FOB/CIF/FAS).
Twenty-foot Equivalent Unit A measure of container capacity still used by some institutions 1 FFE = 2 TEU
Companies that can be employed (hired) to assume tasks that were previously performed in-house by the client.
A rate applicable from point of origin to destination. A through rate may be either a joint rate or a combination of two or more rates.
It refers to the number of boxes/cartons stored on a layer, or tier, (the TI) and the number of layers high that these will be stacked on the pallet (the HI).[1] It can also be used in reference to the stacking pattern used to load a pallet in order to generate a relatively stable stack. These measurements will usually be asked for following the Cube (cubic feet) of a Master Carton.
A document which can be issued to ease border crossings in Europe. Customs at a European location places a seal on a container and issues the TIR Carnet. The document and seal allow the container to cross borders without inspection to the consignee’s door, where destination customs will then inspect the cargo.
The shipper, by way of endorsement and passing of the document, allows a transfer of the rights to take delivery of the goods in the document e.g. a bill of lading.
(1) The sum of average order quantity (one half of order quantity) plus safety stock. Safety stock is the amount on hand after the arrival of the order. (2) Also, the average normal use stock plus the average lead stock plus safety stock.
The sum of purchasing, transportation and storage costs in the movement of finished products through the post production channel.
An approach to business management that focuses on quality and typically has: a strong customer orientation, total involvement, measurement systems, systematic support and continuous improvement.
A request on a transportation line to trace a shipment for the purpose of expediting its movement or establishing delivery. Common usage of this term has been simplified to mean any request for status of a shipment.
Trailer on Flat Car Rail Service in which a container is loaded on a rail car with chassis, bogies or wheels.
The process of transferring a shipment from one mode of transport to another.
Transfer of containers from one vessel to another vessel. Synonymous with Transshipments.
List of the particulars of the shipment and a record of the documents being transmitted, together with instructions for the disposition of documents.
Transport Management System assists in the planning and coordination of shipping tracking and delivering freight from one place to another. It also tracks processes and delivers customized shipping solutions that save time and money
The shipment of freight to an intermediate destination and from there to another destination.
This barcode is a specially defined subset of Code 128 that is used mostly on shipping containers. It is numeric only, having a fixed length of 19 digits.
Free space above a liquid contained in a tank, drum or tank-container, expressed as a percentage of the total capacity. Ullage is often used to leave room for possible expansion of the liquid.
The party who has been designated on the invoice or packing list as the final recipient of the stated merchandise.
A container carrier with a minimum capacity of 12,500 TEUs.
A tanker vessel with a minimum capacity of 320,000 dwt.
The four-digit number assigned by the United Nations Committee of Experts on the Transport of Dangerous Goods to classify a substance or a particular groups of substances. Note: The prefix ‘UN’ must always be used in conjunction with these numbers.
The same as UNDG. An identification number referring to hazardous cargoes as classified by the I.M.O.
A term mostly used in aircraft. Ocean Shipping uses instead ‘Household Goods’ or ‘Personal Effects.’
United Nations Centre for Trade Facilitation and Electronic Business. The worldwide facilitation of international transactions through the simplification and harmonization of procedures and information flows.
Acronym for the ‘United Nations Commission on International Trade Law,’ established by a United Nations General Assembly Resolution in 1966.
The aim of UNCITRAL is to harmonize and unify international trade law. It was instrumental in the preparation of the Hamburg Rules, 1978, and prepared the United Nations Convention on the Liability of Operators of Transport Terminals in International Trade, 1991.
In addition, UNCITRAL has been active in the area of international commercial arbitration and has prepared the UNCITRAL Model Law on International Commercial Arbitration, 1985, the UNCITRAL Model Law on International Commercial Conciliation, 2002, the UNCITRAL Arbitration Rules, the UNCITRAL Conciliation Rules, and the UNCITRAL Notes on Organizing Arbitral Proceedings.
A bill containing reservations as to the good order and condition of the goods, or the packaging, or both – for example, ‘bags torn;’ ‘drums leaking;’ ‘one case damaged’ or ‘rolls chafed.’
Serving a watch on the weather side of the ship, exposed to wind and spray.
A vessel that is moving under control: that is, neither at anchor, made fast to the shore, aground nor adrift.
Commonly used to define the distance between the lowest point on the ship’s keel (or hull) and the highest point on the channel bottom beneath the ship.
The underwater section of a vessel beneath the waterline, normally not visible except when in drydock.
United Nations Electronic Data Interchange for Administration, Commerce and Transport.
An internationally recognized codification of rules unifying banking practice regarding documentary credits (L/C’s) and should be referenced within L/C’s. The UCP was co-developed with the International Chamber of Commerce (ICC).
Uniform Freight Classification
The cost associated with a single unit of product; it is calculated as the total cost of producing a product or service divided by the number of units in the run or lot.
Packages loaded on a pallet, in a crate or any other way that enables them to be handled at one time as a unit.
A pallet.
A pallet or container used to load many items including freight on wide-body aircraft and specific narrow-body aircraft.
A train of a specified number of railcars, perhaps 100, which remain as a unit for a designated destination or until a change in routing is made.
Established in July 1976; jointly by the six shareholding states from the Persian Gulf (Bahrain, Iraq, Kuwait, Qatar, Saudi Arabia and UAE). The head office is located in the State of Kuwait. UASC is the largest ocean carrier of dry cargo to the Middle East.
Established in 1964 as a permanent intergovernmental body. It is the principal organ of the United Nations General Assembly dealing with trade, investment, and development issues.
The organization’s goals are to ‘maximize the trade, investment and development opportunities of developing countries and assist them in their efforts to integrate into the world economy on an equitable basis.’
The creation of the conference was based on concerns of developing countries over the international market, multi-national corporations, and great disparity between developed nations and developing nations. In the 1970s and 1980s, UNCTAD was closely associated with the idea of a New International Economic Order (NIEO).
Currently, UNCTAD has 194 member States and is headquartered in Geneva, Switzerland.
Also called the Law of the Sea Convention or the Law of the Sea treaty, is the international agreement that resulted from the third United Nations Conference on the Law of the Sea (UNCLOS III), which took place from 1973 through 1982. The Law of the Sea Convention defines the rights and responsibilities of nations in their use of the world’s oceans, establishing guidelines for businesses, the environment, and the management of marine natural resources.
The consolidation of a quantity of individual items into one large shipping unit for easier and faster handling through methods such as palletizing, stripping, slinging and containerization.
Port equipment employed to unload ships carrying dry bulk cargo. (Note: Small movable and hoist able unloaders are sometimes referred to as “vacuvators.”).
The removal of a shipment from a container to a platform or warehouse.
United Nations Code for Trade and Transport Locations, a geographic coding scheme developed and maintained by the UNECE. Assigns codes to locations uses in trade and transport.
To remove the ropes that attach a ship to the shore.
Slack off quickly and run slack to a belaying point. This order is given when a line or wire has been stopped off or falls have been four-in-hand and the hauling part is to be belayed.
UPC (Universal Product Code) version A is used to encode an 11 digit number. The first digit is the system number and the rest are data characters. Both 2 and 5 digit supplementals are also supported.
UPCE is a zero suppressed version of the UPCA barcode. This version allows 11 digits to be encoded. The first digit must be zero. Both 2 and 5 digit supplementals are also supported.
UPCE is a zero suppressed version of the UPCA barcode. This version allows 6 digits to be encoded. The first digit must be zero. Both 2 and 5 digit supplementals are also supported.
UPCE is a zero suppressed version of the UPCA barcode. This version allows 6 digits to be encoded. The first digit must be zero. Both 2 and 5 digit supplementals are also supported.
Specially selected personnel destined for high office.
United States Customs and Border Protection Agency Customs authority for the USA
The legal right of using and enjoying the profits of something belonging to another party.
The quotient of used capacity and available capacity.
A document required for commodities deemed important to national security, foreign-policy objectives, or protecting domestic supplies of strategic materials. The license constitutes permission to export a specific product to a specific party. The exporter applies for the license, which must be returned to an Export Administration after completing the specified shipments.
A consignment which contains one or more valuable articles.
Transport charges for certain goods, based on the value declared for the carriage of such goods (also: ‘Ad Valorem’).
A form of indirect sales tax paid on products and services at each stage of production or distribution, based on the value added at that stage and included in the cost to the ultimate customer.
Variation on supply chain. The term is used to communicate the value each member, contributor or participant adds to the value of the final delivered product.
A statement of the unique value add an organization offers its customers in differentiating itself from its competition.
A rope leading from the gaff to either side of the deck; used to prevent the gaff from sagging. For more information see boom vang.
The maximum degree of heel after which a vessel becomes unable to return to an upright position.
A term for stowing cargo in a container.
Costs that vary directly with the level of activity within a short time. Examples include costs of moving cargo inland on trains or trucks, stevedoring in some ports, and short-term equipment leases.
External supplier of merchandise.
A container designed with openings in the side and/or end walls to permit the ingress of outside air when the doors are closed.
Verified Copy (VC) is a draft of Bill of Lading (B/L) issued by the carrier to the shipper who gave his final approval that all inserted Information in this draft are correct.
Today, the weight of containers provided by the shippers is not always accurate, leading to accidents and posing a huge risk for the personnel, on the roads, inside the terminal, to cargo and equipment. Indeed, there were often discrepancies observed between the declared gross mass and the actual gross mass of a packed container.
In May 2014, the International Maritime Organization adopted an amendment to the Safety of Life at Sea (SOLAS) regarding a mandatory container weight verification requirement on shippers. This convention applies to all containers shipments to which SOLAS amendments apply.
From 1st July 2016, shippers will be required to provide the Verified Gross Mass (VGM) of each shipment to their ocean carrier. The responsibility is with the shipper to confirm the VGM before the carrier’s load list cut-off date.
The new SOLAS amendments introduce two main new requirements:
The shipper is responsible for providing the verified weight by stating it in the shipping document and submitting it to the master or his representative and to the terminal representative sufficiently in advance to be used in the preparation of the ship stowage plan;
The verified gross mass is a condition for loading a packed container onto a ship.
If not confirmed, the container will not be loaded on board (potential increased charges).
Please consult our FAQs to know more about VGM.
More information can be found as well at IMO (International Maritime Organization).
The expansion, acquisition or merger of firms in the same value chain e.g. a supermarket buying a dairy producer that provides milk to the supermarket.
A floating structure designed for the transport of cargo and/or passengers.
The international carrier is obligated to make declarations of the ship’s crew and contents at both the port of departure and arrival. The vessel manifest lists various details about each shipment by bill of lading number. Obviously, the bill of lading serves as the core source from which the manifest is created.
A carrier defined by maritime law, offering an international cargo transport service operating their own vessels under their own rate structure in accordance with tariffs filed with the Federal Maritime Commission.
A term agreement between two or more carriers in which a number of container positions (“”slots””) equal in space are reserved on particular vessels for each of the participants. The number of slots (space) on different vessels on the same route can vary by vessel type and direction but may also be expressed as each party’s capacity use of the vessels employed jointly.
Allows equipment and supplies arriving at one port to be loaded on a vessel, aircraft, etc., for its exclusive use and to be exported from the same port.
A unit of interior capacity of ships equal to 100 cubic feet or 2,832 cubic meters; register ton.
The shape of a boat or ship which sees the shape of the hull comes to a straight line to the keel.
The Protocol to amend the International Convention for the Unification of Certain Rules of Law Relating to Bills of Lading, signed at Brussels on 25th August, 1924.
These amendments to the Hague Rules, adopted in Brussels on February 23rd, 1968, came into force on June 23rd, 1977, for ten nations and since then for many more.
The Visby Rules were the result of the CMI Conference of 1963 in Stockholm, Sweden, which formally adopted the Rules in the ancient town of Visby after the Conference.
The Hague/Visby Rules are the Hague Rules as amended by the Visby Rules. A further Protocol to Amend the International Convention for the Unification of Certain Rules of Law Relating to Bills of Lading signed at Brussels on August 25th, 1924 as Amended by Protocol of February 23rd, 1968, was adopted on December 21st, 1979 and entered into force on February 14th, 1984.
Most nations which have adopted Visby have adopted this Protocol, which is called the ‘Visby S.D.R. Protocol’.
Used in tariffs to specify commodities.
Measure of relative deviation in a system.
A Genoa-based container operator.
A charge for the carriage of goods based on their volume (by units of one cubic meter or 40 cubic feet).
Rate applicable in connection with a specified volume (weight) of freight.
The journey of cargo consignment from its origin to final destination.
A contract under which the shipowner agrees to carry an agreed quantity of cargo from a specified port or ports to another port or ports for a remuneration called freight, which is calculated according to the quantity of cargo loaded, or sometimes at a lump sum freight.
The reference number assigned by the carrier or his agent to the voyage of the vessel.
The central deck of a ship between the forecastle and the quarterdeck.
A trucking tariff term referring to any period of time beyond the allocated Free Time that a driver has to wait while the customer loads or unloads a container. Until the Free Time period has expired a driver can wait without the customer incurring extra expenses. Waiting Time, however, is chargeable to the client.
In the event the necessary Waiting Time would be too costly, shippers may opt for a ‘drag-and-drop’ solution, whereas the trucker would drop the container and immediately leave. They will return to pick up the container once laden. This option is more costly than a straight load but may be a lot cheaper than paying for Waiting Time.
Document used to allow cargo carriage by different flag vessels other than original destination country vessels. Also for government cargo where vessels under certain flags cannot carry the shipments.
A clause in a marine insurance policy stating that no acts of the insurer or insured in recovering, saving or preserving the property insured, shall be considered a dismissal from or acceptance of abandonment.
The turbulence behind a vessel; not to be confused with wash.
A number of strong and thick planks running length-wise along the ship, covering the lower part of the ship’s side.
Marine insurance coverage for the loss of goods resulting from an act of war. Each time there is a ‘hot spot’ of unrest near a shipping port or shipping lane, tariffs will be raised because the cargo owners and vessel operators’ insurance premiums are increased due to a ‘War Risk Clause.’
Insurance issued by marine underwriters against war-like operations specifically described in the policy. In former times, war risk insurance was taken out only in times of war, but currently many exporters cover most of their shipments with war risk insurance as a protection against losses from derelict torpedoes and floating mines placed during former wars, and also as a safeguard against unforeseen warlike developments.
In the US, war risk insurance is written in a separate policy from the ordinary marine insurance; it is desirable to take out both policies with the same underwriter in order to avoid the ill effects of a possible dispute between underwriters as to the cause (marine peril or war peril) of a given loss.
A secured facility for the storage of cargo; numerous types exist and are usually designed to the specific supply chain processes they support. Warehouses can be bonded and/or non-bonded, they can be shared user (multi-customer) or client dedicated.
The document that identifies goods imported when placed in a bonded warehouse. The duty is not imposed on the products when stored in the warehouse but will be collected when they are withdrawn for delivery or consumption.
A receipt of commodities deposited in a warehouse, identifying the commodities deposited. It is non-negotiable if delivery is only permitted to a specified person or firm, but it is negotiable if made out to the order of a person or firm or to a bearer. Endorsement (without endorsement if made out to bearer) and delivery of a negotiable warehouse receipt serves to transfer the property covered by the receipt and serves to transfer the property covered by the receipt. Warehouse receipts are common documents in international banking.
An agreement allowing merchandise that has been withdrawn from a bonded warehouse at one US port to be exported from the same port without paying duty.
An agreement allowing merchandise that has been withdrawn from a bonded warehouse at one port to be transported in bond to another port, where a superseding entry will be filed.
An agreement allowing merchandise that has been withdrawn from a bonded warehouse at one port – to be transported in bond through the US – to be exported from another port, without paying duty.
A clause in marine insurance policy whereby the underwriter agrees to cover the goods while in transit between the initial point of shipment and the point of destination, with certain limitations, and also subject to the law of insurable interest. When it was first introduced, the warehouse-to-warehouse clause was extremely important, but now its importance is diminished by the marine extension clauses, which override its provisions.
The storing of goods/cargo.
Warehousing and distribution are the two supply chain activities that often require the largest proportion of a supply chain operation’s budgets. See Warehousing and Distribution Center (DC).
The Convention for the Unification of Certain Rules Relating to International Carriage by Air, signed at Warsaw, 12 October 1929, or that Convention as amended by the Hague Protocol, 1955, stipulating obligations or parties and limitations and/or exonerations of carriers.
The waves created by a vessel; not to be confused with wake.
A period of time during which a part of the crew is on duty. Changes of watch are marked by strokes on the ship’s bell.
Water transport vessels. Ships, boats, personal water craft etc.
A strake of timber laid against the frames or bulwark stanchions at the margin of a laid wooden deck, usually about twice the thickness of the deck plank.
See Seaway bill.
A document prepared by a transportation line at the point of a shipment; shows the point of origin, destination, route, consignor, consignee, description of shipment and amount charged for the transportation service. A waybill is forwarded with the shipment or sent by mail to the agent at the transfer point or waybill destination. Unlike a bill of lading, a waybill is not a document of title.
A location defined by navigational coordinates, especially as part of a planned route.
The loss or deterioration of an item resulting from ordinary use.
Tacking away from the wind in a square-rigged vessel. For more information see Gybe.
Whichever deck is that exposed to the weather – usually either the main deck or, in larger vessels, the upper deck.
A favorable position over another sailing vessel to with respect to the wind.
The side of a ship exposed to the wind.
Some ports might not work with strong winds presenting dangerous conditions on the cranes, some others on the handling equipment, or again on the vertical stacks of containers.
A ship that is easily sailed and maneuvered; makes little leeway when sailing to windward.
To heave up (an anchor) – a preparatory task before setting sail.
Gross – The weight of the goods including packing, wrappers, or containers, internal and external. The total weight as shipped.
Net – The weight of the goods themselves without the inclusion of any wrapper.
Tare – The weight of the packaging or container.
Weight/Measurement Ton – In many cases, a rate is shown per weight/measurement ton, carrier’s option. This means that the rate will be assessed on either a weight ton or measurement ton basis, whichever will yield the carrier the greater revenue. As example, the rate may be quoted on the basis of 2,240 pounds or 40 cubic feet or of one metric ton or one cubic meter.
Weight Ton – There are three types of weight ton; the short ton, weighing 2,000 pounds; the long ton, weighing 2,240 pounds; and the metric ton weight 2,204.68 pounds. The last is frequently quoted for cargo being exported from Europe.
Net weight of goods, plus inside packing.
A cargo on which the transportation charge is assessed on the basis of weight.
A charge for the carriage of goods based on their weight.
Payload achieved as against available, expressed as a percentage. Cargo is frequently limited by volume rather than weight; load factors of 100% are rarely achieved.
The basis for assessing freight charges used in breakbulk shipments. Also known as ‘worm.’ In a Bill of Lading, the term signify that the master and the carrier are unaware of the nature or quantity of the contents of e.g. a carton, crate, container or bundle and are relying on the abbreviation for Weight and/or measurement. This is also a possible method to assess a freight rate to a shipment. In ocean freight, the W/M is per metric ton or per cubic meter – whichever is greater. In air freight, the W/M is per kilogram or per cubic foot – whichever is greater.
Gross/Long Ton: 2,240 lbs. (1016 kg) Net/Short Ton: 2,000 lbs (907.19 kg) Metric/Kilo Ton: 2,204.6 lbs (1,000 kg)
Places in the ship’s hold for the pumps.
A structure built along a shore, and often into the water, at which boats can be docked and loaded or unloaded; Also known as pier or quay.
This fee is assessed by a port authority or port operator to the carrier for the usage of a port’s wharf. The fee is then charged back to the customer in order to provide transparency and to share the costs. This fee will be applicable to shipments moving to/from port terminals that charge wharfage fees.
The usual steering device on larger vessels, a wheel connected by cables to the rudder.
The location on a ship where the steering wheel is located; often interchanged with pilothouse and bridge.
This expression refers to the time when a notice of readiness can be tendered by the master. It converts a “berth charter” into a “port charter”, whereby a ship becomes an “arrived ship” and can tender notice of readiness, thus triggering off laytime, if the berth is unavailable and the charterparty expressly states that notice can be given whether the vessel has arrived in the berth or not.
A vertical lever connected to the tiller, used for steering on larger ships before the development of the ship’s wheel.
Foam or spray on wave tops caused by stronger winds (usually above Force 4).
To leave room between two ships moored (berthed) allowing space for maneuver.
The wind resistance of a boat.
A condition wherein the ship is detained in one particular station by contrary winds.
A winch mechanism, usually with a horizontal axis. It is used where the mechanical advantage is greater than that obtainable by block and tackle (such as raising the anchor on small ships).
Sea conditions with a tidal current and a wind in opposite directions, leading to short, heavy seas.
In the direction that the wind is coming from.
A freight booking made by a shipper or freight forwarder to reserve space but not actually having a specific cargo at the time the booking is made. Carriers often overbook a vessel by 10 to 20 percent in recognition that ‘windy booking’ cargo will not actually ship.
A marine insurance term meaning that shipment is protected for partial damage whenever the damage exceeds a stated percentage.
An insurance term meaning that the partial loss or damage of goods is insured. The damage must generally be caused by sea water. Many have a minimum percentage of damage before payment. It can also be extended to cover loss by theft, pilferage, delivery, leakage, and breakage.
A phrase preceding the signature of a drawer or endorser of a negotiable instrument; it signifies that the instrument is passed onto subsequent holders without any liability to the endorser in the event of non-payment or non-delivery.
A term indicating a shipper’s agent or representative is empowered to make definitive decisions and adjustments abroad without the approval of the group or individual represented. For more information see advisory capacity.
All materials, and partly finished products that are at various stages of the production process. Excludes inventory of raw materials at the start of the production cycle and finished products inventory at the end of the production cycle.
An organization that supervises international trade, seeking to deal with global rules of trade between nations through several rounds of successive trade negotiations to promote the free and fair flow of goods and services between nations.
To protect a section of rope from chafing by: laying yarns (worming), wrapping marline or other small stuff (serving) around it, and stitching a covering of canvas (parceling) over all.
Standard for inter-industry electronic interchange of business transactions.
International standard of the CCITT for packet switching of electronic data transmission.
A CCITT recommendation designed to facilitate international message and information exchange between subscribers of computer based store-and-forward services and office information systems in association with public and private data networks.
A series of computer networking standards regarding electronic directory services.
The movement of cargo from one transport unit directly onto another, with minimal or no warehousing. In practice, crossdocking operations may utilize staging areas where inbound materials are sorted, consolidated, and stored until the outbound shipment is complete and ready to ship.
Requiring a miniscule amount of moisture.
Xiamen International Container Terminals
The very end of a yard; often mistaken for a “yard”
The acknowledgement of an order, or agreement. For more information see aye, aye.
A vessel’s rotational motion about the vertical axis, causing the fore and aft ends to swing from side to side repetitively. For more information see Pitch.
Year on Year of figures/prices as compared with the corresponding ones from one year earlier.
Year To Date.
Revenue, not necessarily profitable, per unit of traffic.
The remaining slot capacity for a trade/voyage in a certain port of loading after deduction of the allowance for specific contracts.
The process of maximizing the contribution of every slot, vessel, trade and network. Basically, it should be seen as the process of allocating the right type of capacity to the right kind of customer at the right price as to maximize revenue or yield. The concept should be used in combination with load factor management.
A code of rules adopted by an international convention in 1890
Abbreviation for: Azimuth, Zinc.
A rubber dinghy. An inflatable craft for the transport of people.
Marked with or arranged in zones.
The rate for which the carrier will undertake the haulage of goods or containers between either the place of delivery and the carrier’s appropriate terminal. Such haulage will be undertaken only subject to the terms and conditions of the tariff and of the carrier’s Combined Transport Bill of Lading.
