Shipping Terms Glossary

Most ocean freight is billed on the basis of weight or measurement tons (W/M). Weight tons can be expressed in short tons of 2000 pounds, long tons of 2240 pounds or metric tons of 1000 kilos (2204.62 pounds). Measurement tons are usually expressed as cargo...

A rate applicable to a carload of goods.

A Customs document permitting the holder to temporarily carry or send merchandise into certain foreign countries (for display, demonstration or similar purposes) without paying duties or posting bonds. Any of various Customs documents required for crossing some...

Any person or entity who, in a contract of carriage, undertakes to perform or to procure the performance of carriage by rail, road, sea, air, inland waterway or by a combination of such modes.

A certificate required by U.S. Customs to release cargo properly to the correct party.

Usually refers to intracity hauling on drays or trucks.

Customs form permitting in bond cargo to be moved from one location to another under Customs control, within the same Customs district. Usually in motor carrier’s possession while draying cargo.

Method of payment for goods in which documents transferring title are given the buyer upon payment of cash to an intermediary acting for the seller, usually a commission house.

A method of payment for goods in which the buyer pays the seller in advance of the shipment of goods. Usually employed when the goods, such as specialized machinery, are built to order.

A method of payment for goods in which cash is paid at the time of order and the transaction becomes binding on both buyer and seller.

Abbreviation for “Cubic Meter.”

Abbreviation for “Consumption Entry.” The process of declaring the importation of foreignmade goods for use in the United States.

The construction system employed in container vessels; permits ship containers to be stowed in a vertical line with each container supporting the one above it.

The point of equilibrium of the total weight of a containership, truck, train or a piece of cargo.

– A document certifying that merchandise (such as of Inspection perishable goods) was in good condition immediately prior to its shipment. – The document issued by the U.S. Coast Guard certifying an American flag vessel’s compliance with applicable laws and...

A certified document showing the origin of goods; used in international commerce.

Abbreviation for “Container Freight Station.” A shipping dock where cargo is loaded (“stuffed”) into or unloaded (“stripped”) from containers. Generally, this involves less than containerload shipments, although small shipments destined to same consignee are often...

A written contract between the owner of a vessel and the person desiring to employ the vessel (charterer); sets forth the terms of the arrangement such as duration of agreement, freight rate and ports involved in the trip.

A frame with wheels and container locking devices in order to secure the container for movement.

A piece of wood or other material placed at the side of cargo to prevent rolling or moving sideways.

Abbreviation for “Cost and Insurance.” A price that includes the cost of the goods, the marine insurance and all transportation charges except the ocean freight to the named point of destination.

Abbreviation for “Cost, Insurance, Freight.” (Named Port) Same as C&F or CFR except seller also provides insurance to named destination.

Price includes commission as well as CIF.

Abbreviation for “Cost, Insurance, Freight And Exchange.”

Abbreviation for “Cost, Insurance, Freight And Exchange.”

Abbreviation for “Cost, Insurance, Freight, Collection And Interest.”

Cost, Insurance, Freight, Interest and Exchange.

Abbreviation for “Completely Knocked Down.” Parts and subassemblies being transported to an assembly plant.

Abbreviation for “Carload” and “Containerload”.

A demand made upon a transportation line for payment on account of a loss sustained through its alleged negligence.

A publication,such as Uniform Freight Classification (railroad) or the National Motor Freight Classification (motor carrier), that assigns ratings to various articles and provides bill of lading descriptions and rules.

The designation provided in a classification by which a class rate is determined.

A railroad yard with many tracks used for assembling freight trains.

An antitrust act of the U.S. Congress making price discrimination unlawful.

A receipt for goods issued by a carrier with an indication that the goods were received in “apparent good order and condition,” without damage or other irregularities. If no notation or exception is made, the B/L is assumed to be “cleaned.”

The stopping of articles, such as peanuts, etc., for cleaning at a point between the point of origin and destination.

The size beyond which cars or loads cannot use Limits bridges, tunnels, etc.

A strip of wood or metal used to afford additional strength, to prevent warping, or to hold in place.

Refrigeration equipment attachable to an insulated container that does not have its own refrigeration unit.

Abbreviation for “Cubic Meter” (capital letters).

Abbreviation for “centimeter.”

Water transportation along the coast.

Abbreviation for: – Collect (cash) on Delivery. – Carried on Docket (pricing).

Abbreviation for the Railway Service “Container On Flat Car.”

Carriage of Goods by Sea Act. U.S. federal codification passed in 1936 which standardizes carrier’s liability under carrier’s bill of lading. U.S. enactment of The Hague Rules.

A bank that acts as an agent to the seller’s bank (the presenting bank). The collecting bank assumes no responsibility for either the documents or the merchandise.

A draft drawn on the buyer, usually accompanied by documents, with complete instructions concerning processing for payment or acceptance.

A firm that acts as an export sales agent for more than one noncompeting manufacturer.

A rate made up of two or more factors, separately published.

Represents a complete record of the transaction between exporter and importer with regard to the goods sold. Also reports the content of the shipment and serves as the basis for all other documents about the shipment.

Article shipped. For dangerous and hazardous cargo, the correct commodity identification is critical.

A rate published to apply to a specific article or articles.

A transportation company which provides service to the general public at published rates.

Law that derives its force and authority from precedent, custom and usage rather than from statutes, particularly with reference to the laws of England and the United States.

Damage that is not evident from viewing the unopened package.

An association of ship owners operating in the same trade route who operate under collective conditions and agree on tariff rates.

A letter of credit, issued by a foreign bank, whose validity has been confirmed by a domestic bank. An exporter with a confirmed letter of credit is assured of payment even if the foreign buyer or the foreign bank defaults.

The bank that adds its confirmation to another bank’s (the issuing bank’s) letter of credit and promises to pay the beneficiary upon presentation of documents specified in the letter of credit.

A carrier which has a direct physical connection with, or forms a link between two or more carriers.

A person or company to whom commodities are shipped.