Shipping Terms Glossary

The unloading of a container or cargo van.

Damage-Free Car. Boxcars equipped with special bracing material.

An amount added or deducted from base rate to make a rate to or from some other point or via another route.

When documents presented do not conform to the requirements of the letter of credit (L/C), it is referred to as a “discrepancy.” Banks will not process L/C’s which have discrepancies. They will refer the situation back to the buyer and/or seller and await further...

The weight, in tons of 2,240 pounds, of the vessel and its contents. Calculated by dividing the volume of water displaced in cubic feet by 35, the average density of sea water.

A change made either in the route of a shipment in transit (see Reconsignment) or of the entire ship.

Carriers’ practice of dividing revenue received from through rates where joint hauls are involved. This is usually according to agreed formulae.

– For ships, a cargo handling area parallel to the shoreline where a vessel normally ties up. – For land transportation, a loading or unloading platform at an industrial location or carrier terminal.

A form used to acknowledge receipt of cargo and often serves as basis for preparation of the ocean bill of lading.

Present a rate proposal to a conference meeting for adoption as a conference group rate.

Instructions given by a shipper to a bank indicating that documents transferring title to goods should be delivered to the buyer only upon the buyer’s acceptance of the attached draft.

An indication on a draft that the documents attached are to be released to the drawee only on payment.

A set of wheels that support the front of a container; used when the automotive unit is disconnected.

Through transportation of a container and its contents from consignor to consignee. Also known as House to House. Not necessarily a through rate.

– The number of feet that the hull of a ship is beneath the surface of the water. – An unconditional order in writing, addressed by one party (drawer) to another party (drawee), requiring the drawee to pay at a fixed or determinable future date a specified sum in...

An order issued by a seller against a purchaser; directs payment, usually through an intermediary bank. Typical bank drafts are negotiable instruments and are similar in many ways to checks on checking accounts in a bank.

A draft to which no documents are attached.

A draft that matures on a fixed date, regardless of the time of acceptance.

A time draft under a letter of credit that has been accepted and purchased by a bank at a discount.

A draft payable on demand upon presentation.

A draft that matures at a fixed or determinable time after presentation or acceptance.

A partial refund of an import fee. Refund usually results because goods are re-exported from the country that collected the fee.

The individual or firm that issues a draft and thus stands to receive payment.

Charge made for local hauling by dray or truck. Same as Cartage.

Abbreviation for “Destination Rail Freight Station.” Same as CFS at destination, except a DRFS is operated by the rail carrier participating in the shipment.

Cargo that is not liquid and normally does not require temperature control.

A container constructed to carry grain, powder and other free-flowing solids in bulk. Used in conjunction with a tilt chassis or platform.

Delay in Startup Insurance is a policy to protect the seller of a construction project from penalties if the project is not completed on time. See “Liquidated Damages.”

Attempting to import merchandise into a country at a price less than the fair market value, usually through subsidy by exporting country.