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Trade Index Glossary |
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Ad Valorem |
| According to value. |
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Air waybill
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A bill of lading that covers both domestic and international air transport of goods to a specified destination. This is a non-negotiable instrument of air transport that serves as a receipt for the shipper, indicating that the carrier has accepted the goods listed and obligates itself to carry the consignment to the airport of destination according to specified conditions.
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Alongside
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A phrase referring to the side of a ship. Goods to be delivered "alongside" are to be placed on the dock or barge within reach of the transport ship's tackle so that they can be loaded aboard the ship.
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BAF (Bunker Adjustment Factor)
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An ancillary charge assessed by carriers on some ocean container freight shipments to account for fluctuation in fuel cost.
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Barratry
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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.
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Bill of lading
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A document that establishes the terms of a contract between a shipper and a transportation company under which freight is to be moved between specified points for a specified charge. Usually prepared by the shipper on forms issued by the carrier, it serves as a document of title, a contract of carriage, and a receipt for goods.
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Bonded warehouse
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A warehouse authorized by Customs authorities for storage of goods on which payment of duties is deferred until the goods are removed.
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Booking
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An arrangement with a steamship company for the acceptance and carriage of freight.
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Cabotage
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Refers to the required use of domestic carriers for shipments in U.S. coastal waters.
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CAF (currency adjustment factor)
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An ancillary charge on some ocean freight shipments, expressed as a percentage of a base rate, to compensate ocean carriers for fluctuations in the value of the U.S. dollar against foreign currencies.
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Carrier
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The company that transports goods from one point to another. May be a vessel, airline, trucking company, or railroad.
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Certificate of inspection
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A document certifying that merchandise (such as perishable goods) was in good condition immediately prior to its shipment.
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Certificate of insurance
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A document stating that insurance is in effect.
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Certificate of origin
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A document, required by certain foreign countries for tariff purposes, certifying the country of origin of specified goods.
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CFR (cost and freight)
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A pricing term indicating that the cost of the goods and freight charges are included in the quoted price. The buyer arranges for and pays insurance.
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CFS (container freight station)
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A carrier facility where less-than-container load shipments are consolidated for shipment or unloaded for final delivery.
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Chargeable weight
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The weight used to determine air-freight charges. The chargeable weight may be the dimensional weight, or for container shipments, the gross weight of the shipment less the tare weight of the container.
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C & I (cost and insurance)
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A pricing term indicating that the cost of the product and insurance is included in the quoted price. The buyer is responsible for freight to the named port of destination.
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CIF (cost, insurance, and freight)
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A pricing term indicating that the cost of the goods, insurance, and freight is included in the quoted price.
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Claim agent
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An overseas representative of the insurance company.
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Commercial invoice
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An itemized list of goods shipped, usually included among an exporter's collection papers.
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Common carrier
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An individual, partnership, or corporation that transports persons or goods for compensation.
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Confirmed letter of credit
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A letter of credit, issued by a foreign bank, with validity confirmed by a U.S. bank. When confirmed, the U.S. bank undertakes responsibility for payment even if the foreign buyer or bank defaults.
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Contingency insurance
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When a product is sold under terms that require the buyer to provide insurance coverage, the seller may elect to purchase "backup insurance" in case the coverage provided by the buyer is not sufficient to cover the value of the shipment.
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Consignee
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The person or firm to whom something is sold or shipped. Buyer or importer.
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Consignor
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The person or firm from whom the goods have been received for shipment, the seller, shipper, or exporter.
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Consular invoice
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A document, required by some foreign countries, describing a shipment of goods and showing information, such as the consignor, consignee, and value of the shipment. Certified by a consular official of the foreign country, it is used by the country's customs officials to verify the value, quantity, and nature of the shipment.
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Container
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A uniform, sealed, reusable metal "box" (generally 40 feet in length, able to hold about 40,000 pounds) in which goods are shipped by vessel or rail. The use of containers (or containerization) in trade is generally thought to require less labor and reduce losses due to breakage, spoilage, and pilferage than more traditional shipment methods.
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Container ship
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A ship specially constructed to handle containerized cargo.
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Credit risk insurance
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Insurance designed to cover risks of nonpayment for delivered goods.
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Customs
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The authorities designated to collect duties levied by a country on imports and exports. The term also applies to the procedures involved in such collection.
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Customhouse broker
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An individual or firm licensed to enter and clear goods through Customs.
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CY (container yard)
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A carrier facility where full containers are held.
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Demurrage
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A surcharge assessed by steamship lines and railroads for storage at their port facility longer than the allotted "free time."
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Destination control statement
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Any of various statements that the U.S. Government requires to be displayed on export shipments and that specify the destinations for which export of the shipment has been authorized.
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Dock receipt
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A receipt issued by an ocean carrier to acknowledge receipt of a shipment at the carrier's dock or warehouse facilities.
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Export license
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A Government document that permits the "licensee" to engage in the export of designated goods to certain destinations.
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FAF (fuel adjustment factor)
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An ancillary charge on some ocean freight shipments to account for fluctuation in fuel costs. Also referred to as BAF or bunker adjustment factor.
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FAS (free alongside)
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A pricing term indicating that the quoted price includes the cost of delivering the goods alongside a designated vessel.
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FCL (full container load)
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Shipment of a full container.
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FEU (40-foot-equivalent unit)
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Commonly describes a 40-foot container.
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FOB (free on board)
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A pricing term indicating that the quoted price includes the cost of loading the goods into transport vessels at the specified place.
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Force majeure
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The title of a standard clause in marine contracts exempting the parties for non-fulfillment of their obligations as a result of conditions beyond their control, such as earthquakes, floods, or war.
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Freight forwarder
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An independent business that handles export shipments for compensation.
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General export license
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Any of various export licenses covering export commodities for which validated export licenses are not required. No formal application or written authorization is needed to ship exports under a general export license.
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Gross weight
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The full weight of a shipment, including goods and packaging.
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Harbor tax
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A tax paid quarterly by exporters to U.S. customs based on a percentage of their total value of exports.
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Import license
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A document required and issued by some national governments for the importation of goods into their country.
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Independent action
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When an ocean shipping conference member carrier sets a tariff for a rate or service that is different from the established conference tariff.
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Inland bill of lading
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A bill of lading used in transporting goods overland to the exporter's international carrier. Although a through bill of lading can sometimes be used, it is usually necessary to prepare both an inland bill of lading and an ocean bill of lading for export shipments.
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Inward charges
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Charges incurred by a ship or cargo when entering a port.
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IPI (interior points intermodel)
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A term used by ocean carriers to describe door to door delivery service. Ocean carriers frequently quote rates on an IPI basis.
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Keelage
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A duty charged for permitting a ship to enter and anchor in a port or harbor.
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Landing charges
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The initial charges for landing imported goods, such as those for receiving goods from dockside vessels or from barges to lighters. They may also cover wharfage or delivery from the dock to land conveyance or warehouse.
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Less than containerload (LCL)
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A quantity of product/commodity less than the amount needed to completely fill a container.
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Liner conference
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An agreement among carriers that regularly serve a particular trade route to establish freight rates and service levels.
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Liner discharge
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Payment by the ship owner for unloading of cargo, including stevedore wages.
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Manifest
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A list of passengers or an invoice of cargo.
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Marine insurance
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Insurance that compensates the owner of goods transported overseas in the event of loss that cannot be legally recovered from the carrier. Also covers air shipments.
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Marking
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Letters, numbers, and other symbols placed on cargo packages to facilitate identification.
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NVOCC (non-vessel operating common carrier)
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Cargo consolidator of small shipments in ocean trade, generally arranging for, or performing, containerization functions at the port.
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Open insurance policy
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A marine insurance policy that applies to all shipments made by an exporter over a period of time rather than to one shipment only.
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Package cargo
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Cargo in boxes, barrels, crates, bales, or other containers, as opposed to bulk or loose cargo.
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Pallet
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A small wooden platform on which cargo is stored for ease of loading and unloading. Cargo shipped on pallets is referred to as palletized cargo.
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Perils of the sea
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A marine insurance term used to designate heavy weather, stranding, lightning, collision, and sea water damage.
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Phytosanitary inspection certificate
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A certificate, issued by the U.S. Department of Agriculture, Animal and Plant Health Inspection Service, to satisfy import regulations for foreign countries, indicating that a U.S. shipment has been inspected and is free from harmful pests and plant diseases.
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Port authority
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The entity whose duty is to construct, manage, maintain, and improve a port. Ports may be administered by States, municipalities, statutory trusts, or private or corporate entities. Also known as harbor authority, harbor board, port trust, or port commission.
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Port charges
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Fees assessed against a vessel, cargo, and passengers while in port, including harbor dues, tariff charges, wharfage, towage, etc.
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Pro forma invoice
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An invoice provided by a supplier prior to the shipment of merchandise, informing the buyer of the kinds and quantities of goods to be sent, their value, and important specifications (weight, size, etc.).
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Quotation
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An offer to sell goods at a stated price and under specified conditions.
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Roll-on/Roll-off (Ro/Ro)
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A term applied to ships that are outfitted so that vehicles or heavy machinery can be driven on or off without the use of special cranes.
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Schedule B
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Refers to "Schedule B, Statistical Classification of Domestic and Foreign Commodities Exported from the United States." All commodities exported from the United States must be assigned a ten-digit Schedule B number.
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Shipment
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Freight tendered to a carrier by one consignor at one place for delivery to one consignee at one place on one bill of lading.
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Shipper's export declaration
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A form required by the U.S. Department of Commerce and the U.S. Customs Service for all shipments and prepared by a shipper, indicating the value, weight, destination, and other basic information about an export shipment.
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Shipper's letter of instruction
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Shipper's communication to their freight forwarder or carrier including all the detail of the shipment. This communication is used by the forwarder or carrier to complete the bill of lading and other shipping documents.
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Ship's manifest
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An instrument in writing, signed by the captain of a ship, that lists the individual shipments constituting the ship's cargo.
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Steamship conference
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A group of steamship operators that collectively set rate and service levels in a specific geographic trade route.
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Stowage
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The loading of a vessel by handling and placing goods within the container so as to ensure stability of the container, maximum use of space, safety of cargo, and efficient loading and unloading. A description of each item and its disposition in the vessel after loading is contained in the ship's stowage plan.
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Tare weight
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The weight of a container and packing materials without the weight of the goods it contains.
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Tariff
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A document issued by carriers or conferences that establish all rules, rates, and charges for the movement of goods.
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TEU (20-foot-equivalent unit)
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Commonly describes a 20-foot container.
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Terminal handling charges
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An ancillary charge on some ocean freight shipments to cover the cost of moving the container from the container yard to ocean vessel.
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Tramp steamer
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A ship not operating on regular routes or schedules.
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TVA (time volume agreement)
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A contract between a carrier and shipper that usually specifies the movement of a certain number of containers over a period of time, usually 12 months.
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U.S. flag vessel
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A merchant ship under U.S. registry.
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Validated export license
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A required document issued by the U.S. Government authorizing the export of specific commodities. This license is for a specific transaction or time period in which the exporting is to take place.
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Warehouse receipt
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A receipt issued by a warehouse listing goods received for storage.
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Wharfage
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A charge assessed by a pier or dock owner for handling incoming or outgoing cargo.
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