G L O S S A R Y O F T E R M S                               Courtesy: Shipmefast.com

‘A’

Act of God

An extraordinary and unexpected natural event, accidents of a nature beyond human control and

without the possibility of prevention such as flood, lightning or hurricane usually quoted as ‘Force

Mejeure’.

Ad Valorem

In proportion to the value: A phrase applied to certain freight or customs duties levied on goods,

property etc. set as a percentage of their value.

Allotment

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.

All Risk

All Risks Coverage, a type of marine insurance, is the broadest kind of standard coverage, but

excludes damage caused by war, strikes, and riots.

Alongside

A phrase referring to the side of a ship. Goods to be delivered alongside are to be placed on the

dock or lighter within reach of the transport ship's tackle so that they can be loaded aboard the

ship. Goods are delivered to the port of embarkation, but without loading fees.

Arrival Notice

Written notice sent by a carrier to a nominated party advising of the arrival of the vessel and/or a

certain shipment.

‘B’

Ballast

Materials, solely carried to improve the trim and the stability of the vessel. In vessels usually

water is carried as ballast in tanks especially designed for that purpose.

Bank Guarantee

An undertaking by a bank to be answerable for payment of a sum of money in the event of non

performance by the party on whose behalf the guarantee is issued.

Bare Boat Charter

A charter whereby the charterer leases the bare ship and appoints the master and crew himself.

Charterer take over all responsibility for the operation of the vessel and expenses for the duration.

Barge

Flat bottomed inland cargo vessel for canals and rivers with or without own propulsion for the

purpose of transporting goods.

Synonym : Lighter

River Shuttle Containers – RSC develops a client service through haulage

Bay

A vertical division of a vessel, used as a part of the indication of a stowage place for containers.

Bay Plan

A stowage plan which shows the locations of all the containers on the vessel.

Bill of Lading

Bills of lading are contracts between the owner of the goods and the carrier. There are two types.

A straight bill of lading is nonnegotiable. A negotiable or shipper's order bill of lading can be

bought, sold, or traded while goods are in transit and is used for many types of financing

transactions. The customer usually needs the original or a copy as proof of ownership to take

possession of the goods.

A document issued on behalf of the carrier which evidences a contract of carriage by sea.

The document has the following functions.

1. A receipt of goods, signed by a duly authorized person on behalf of the carriers.

2. A document of title to the foods described therein.

3. Evidence of the terms and conditions of carriage agreed upon between the two parties.

Bonded Warehouse

The Customs Service authorizes bonded warehouses for storage or manufacture of goods on

which payment of duties is deferred until the goods enter the Customs Territory. The goods are

not subject to duties if reshipped to foreign points.

Break Bulk Cargo

General Cargo conventionally stowed as opposed to unitized, containerized and Roll On- Roll Off

cargo.

Synonym : Conventional Cargo

Break-bulk Vessel

A general cargo vessel designed to efficiently handle un-containerized cargo. Vessels are usually

self-sustaining in that they have their own loading and unloading machinery.

Bulk Carrier

Single deck vessel designed to carry homogeneous unpacked dry cargo such as grain, iron ore

and coal.

Bunker Adjustment Factor

Abbreviation : BAF

Adjustment applied by shipping lines or liner conferences to offset the effect of fluctuation in the

cost of bunkers.

Bunkers

Quantity of fuel on board a vessel

‘C’

Cabotage

Transport of goods between two ports or places located in the same country.

Cargo

Goods transported or to be transported, all goods carried on a ship covered by a B/L. As per IMO

definition : any goods, ware, merchandise, and articles of any kind whatsoever carried on a ship,

other than mail, ship’s stores, ship’s spare parts, ship’s equipment, stowage material, crew’s

effects and passenger’s accompanied baggage.

Cargo Manifest

Document which lists all bills of lading particulars of the goods loaded on a vessel, for official and

administrative purposes.

Carnet

A customs document permitting the holder to carry or send merchandise temporarily into certain

foreign countries for display, demonstration or other purposes without paying import duties or

posting bonds.

Carrier Haulage

An inland transport service which is performed by the Carrier and/or a subcontractor for the

account and on behalf of the Merchant, in accordance with the conditions and charges of the

relevant bill of lading or transport document.

Certificate of Origin

A certificate, showing the country of original production of goods. Frequently used by customs in

ascertaining duties under preferential tariff programs or in connection with regulation imports from

specific sources.

Charter party

A contract in which the ship owner agrees to place his vessel or a part of it at the disposal of a

third party, the charterer, for the carriage of goods for which he receives a freight per ton cargo,

or let his vessel for a definite period or trip for which a hire is paid.

Charterer

The legal person who has signed a charter party with the owner of a vessel or an aircraft and thus

hires or leases a vessel or a part of the capacity thereof.

CIF

Cost, Insurance and Freight (named port of destination)

The seller has the same obligations as under CFR, but must also procure marine insurance

against the buyer’s risk of loss of, or damage to the goods during carriage.

Clean Bill of Lading

A Bill of Lading which does not contain any qualification about the apparent order and condition of

goods to be transported (it bears no stamped clauses on the front of the B/L). It bears no

superimposed clauses expressly declaring a defective condition of the goods or packaging

(resolution of the ICS 1951).

Clean on Board

When goods are loaded on board and the document issued on respect of these goods is clean.

Note : Through the usage of UCP 500 rules the term has now become superfluous.

Commercial Invoice

The commercial invoice is a bill for the goods from the seller to the buyer. These invoices are

often used by governments to determine the true value of goods for the assessment of customs

duties and are also used to prepare consular documentation. Governments using the commercial

invoice to control imports often specify its form, content, number of copies, language to be used,

and other characteristics.

Consignee

The party such as mentioned in the transport document by whom the goods, cargo or containers

are to be received. The person or firm named in a freight contract to whom goods have been

consigned or turned over. For export control purposes, the documentation differentiates between

an intermediate consignee and an ultimate consignee.

Consignment

Delivery of merchandise from an exporter (the consignor) to an agent (the consignee) under

agreement that the agent sell the merchandise for the account of the exporter. The consignor

retains title to the goods until sold. The consignee sells the goods for commission and remits the

net proceeds to the consignor.

Consortium

Consortium is a form of cooperation between two or more carriers to operate in a particular trade

lane.

Container

An item of equipment as defined by the International Organization for Standardization (ISO) for

transport purposes.

Container Freight Station

Abbreviation : CFS

A facility at which (export) LCL (Less than Container Load) cargo in received from merchants for

loading (Stuffing) into containers or at which (import) LCL Cargo is unloaded (stripped) from

container and delivered to merchants.

Container Lease

The contract by which the owner of containers (lessor) gives the user of container to a lessee for

a specified period of time and for fixed payments.

Container Number

Identification number of a container consisting of prefix and serial number and check digit (e.g.

ECMU 123456-7, see also container serial number and container prefix.)

Currency Adjustment Factor (CAF)

Adjustment applied by shipping lines or liner conferences on freight rates to offset losses or gains

for carriers resulting from fluctuation in exchange rates or tariff currencies.

A freight surcharge or adjustment factor imposed by an international carrier to offset foreign

currency fluctuations. In some cases an emergency currency adjustment factor (ECAF) may be

applied when a charge or rate has been originally published in a currency that is experiencing

sustained or rapid decline. The CAF is charged as a percentage of the freight.

Cost and Freight (C&F)

Cost and Freight (CFR) to a named overseas port of import. Under this term, the seller quotes a

price for the goods that includes the cost of transportation to the named point of debarkation. The

cost of insurance is left to the buyer's account. (Typically used for ocean shipments only. CPT, or

carriage paid to, is a term used for shipment by modes other than water.) Also, a method of

import valuation that includes insurance and freight charges with the merchandise values.

Cost, Insurance and Freight (CIF)

Cost, insurance, and freight (CIF) to a named overseas port of import. Under this term, the seller

quotes a price for the goods (including insurance), all transportation, and miscellaneous charges

to the point of debarkation for the vessel. (Typically used for ocean shipments only. CIP, or

carriage and insurance paid to, is a term used for shipment by modes other than water.)

Custom Broker

An authorized agent specialized in custom clearance procedures on account of

importers/exporters.

Container Yard

A facility at which FCL traffic and empty containers are received from or delivered to the Merchant

by or on behalf of the carrier.

‘D’

Dangerous Goods

Goods are to be considered dangerous if the transport of such goods might cause harm, risk,

peril, or other evil to people, environment, equipment or any property whatsoever.

Dangerous Goods Declaration

Documents issued by a consignor in accordance with applicable conventions or regulations,

describing hazardous goods or materials for transport purposes, and stating that the latter have

been packed and labeled in accordance with the provisions of the relevant conventions or

regulations.

DDP (Delivered Duty Paid)

While the term "Ex Works" signifies the seller's minimum obligation, the term "DDP - Deliver Duty

Paid", when followed by words naming the buyer's premises, denotes the other extreme -- the

seller's maximum obligation. The term "Deliver Duty Paid" may be used irrespective of the mode

of transport. If the parties wish that the seller should clear the goods for import but that some of

the cost payable upon the import of the goods should be excluded -- such as value added tax

(GST) and/or other similar taxes -- this should be made clear by adding words to this effect (e.g.,

"exclusive of GST and/or taxes").

DDU (Delivered Duty Unpaid)

Deliver Duty Unpaid, referring to DDP except buyer pays for the import duty.

Deadweight

Abbreviation : DWT

The total weight of cargo, cargo equipment, bunkers, provisions, water, stores and spare parts

which a vessel can lift when loaded to her maximum draught as applicable under the

circumstances. The deadweight is expressed in tons.

Delivery Instructions

Provides specific information to the inland carrier concerning the arrangement made by the

forwarder to deliver the merchandise to the particular pier or steamship line. Not to be confused

with Delivery Order which is used for import cargo.

Delivery Order

A document issued by or on behalf of the carrier authorizing the release of import cargo identified

thereon and manifested under a single bill of lading.

Demurrage

Compensation / Additional charge imposed for exceeding the free time which is included in the

rate and allowed for the use of certain equipment at the terminal payable by the shipper or

receiver to the carrier. Excess time taken for loading or unloading a vessel, thus causing delay of

scheduled departure. Demurrage refers only to situations in which the charter or shipper, rather

than the vessel's operator, is at fault.

Direct Delivery

Direct discharge from vessel onto railroad car, road vehicle or barge with the purpose of

immediate transport from the port area (usually occurs when ports lack adequate storage space

or when ports are not equipped to handle a specific cargo).

Draft

The draft of a vessel is the vertical between the waterline and the underside of the keel of the

vessel. During the construction of a vessel the marks showing the draft are welded on each side

of the vessel.

Synonym : Draught

Duty

A tax imposed on imports by the customs authority of a country. Duties are generally based on

the value of the goods (ad valorem duties), some other factors such as weight or quantity

(specific duties), or a combination of value and other factors (compound duties).

Drayage

Road transportation between the nearest railway terminal and the stuffing place.

‘E’

Embargo

A government order prohibiting the entry or departure of commercial vessels or goods at its ports.

Equipment

The type of material used, 20 feet dry, 40 feet container, open top, flat rack etc…….

Ex Works (...named place) (EXW)

A term of sale in which for the quoted price, the seller merely makes the goods available to the

buyer at the seller's "named place" of business. This trade term places the greatest responsibility

on the buyer and minimum obligations on the seller. The Ex Works term is often used when

making an initial quotation for the sale of goods without any costs included.

‘F’

FCL or CY

Full Container Load, also known as CY. CY is the abbreviation of Container Yard. When the term

CY to CY, it means full container load all the way from origin to destination.

Free Carrier (FCA)

Free Carrier, FCA, to a named place. This term replaces the former "FOB named inland port" to

designate the seller's responsibility for the cost of loading goods at the named shipping point. It

may be used for multimodal transport, container stations, and any mode of transport, including

air.

Free On Board (FOB)

Common price term used in international trade meaning seller's responsible for the cost of goods

is to the point of loading it to the vessel deck or aircraft loading deck. The risk of loss of or

damage to the goods is transferred from the seller to the buyer when the goods have been so

delivered. FOB normally comes with port of loading either airport or sea port.

Free Alongside Ship

Free Alongside Ship, FAS, at a named port of export. Under FAS, the seller quotes a price for the

goods that includes charges for delivery of the goods alongside a vessel at the port of departure.

The seller handles the cost of unloading and wharfage; loading, ocean transportation, and

insurance are left to the buyer. FAS is also a method of export and import valuation.

Federal Maritime Commission

The FMC is an independent agency which regulates ocean borne transportation in the foreign

commerce and in the domestic offshore trade of the United States.

Flash Point

The lowest temperature at which a good produces enough vapour to form a flammable mixture

with air.

Flat Rack Container

A container with two end walls and open sides. Especially for heavy loads and over-dimensional

cargo. Containers do not have sides or a top. This allows easy fork-lift and crane access.

Forty Foot Equivalent Unit

Abbreviation : FEU

Unit of measurement equipment to one forty foot shipping container.

Forwarder (Freight Forwarder)

The party arranging the carriage of goods including connected services and/or associated

formalities on behalf of a shipper or consignee.

Free In and Out

Abbreviation : FIO

Transport condition denoting that the freight rate excludes the costs of loading and discharging.

Free In Liner Out

Abbreviation : FILO

Transport condition denoting that the freight rate is inclusive of the sea carriage and the cost of

discharging, the latter as per the custom of the port. It excludes the cost of loading.

Free Port

An international port or an area within an international port at which, crew, passengers, baggage,

cargo, mail and stores may be disembarked or unloaded, may remain and may be transshipped,

without being subjected to any customs charges or duties.

(Examination is possible for instance to meet security or narcotics control requirements)

Free Trade Zone

A part of the territory of a state where any goods introduced are generally regarded, in so far as

import duties and taxes are concerned, as being exempted. (Kyoto Convention)

Freight All Kinds

Abbreviation : FAK

Single freight which is charged irrespective of the commodity.

FAK is a shipping classification. Goods classified FAK are usually charged higher rates than

those marked with a specific classification and are frequently in a container which includes

various classes of cargo.

Freight Collect

Freight and charges to be paid by the consignee, receiver of the goods.

Freight Manifest

Document which lists all amounts of money due for the carriage of the goods on a vessel.

Freight Prepaid

Freight and charges to be paid by the shipper.

Freight Carriage ... paid to

Like C & F, "Freight/Carriage paid to ..." means that the seller pays the freight for the carriage of

the goods to the named destination. However, the risk of loss of or damage to the goods, as well

as of any cost increases, is transferred from the seller to the buyer when the goods have been

delivered into the custody of the first carrier and not at the ship's rail. The term can be used for all

modes of transport including multi-modal operations and container or "roll on-roll off" traffic by

trailer and ferries. When the seller has to furnish a bill of lading, waybill or carrier's receipt, he

duly fulfills this obligation by presenting such a document issued by the person with whom he has

contracted for carriage to the named destination.

Freight Carriage ... and Insurance paid to

This term is the same as "Freight/Carriage Paid to ..." but with the addition that the seller has to

procure transport insurance against the risk of loss of damage to the goods during the carriage.

The seller contracts with the insurer and pays the insurance premium.

Full Container Load

Abbreviation : FCL

A container stuffed or striped under risk and for account of the shipper and/or the consignee.

Full Liner Terms (Liner In Liner Out)

Condition of carriage denoting that costs for loading and unloading are borne by the carrier

subject to the custom of the port concerned.

Fully Cellular Containership

Abbreviation : FCC

A vessel specifically designed to carry containers, with cell-guides under deck and necessary

fittings and equipment on deck.

‘G’

Gateway

In the context of travel activities, gateway refers to a major airport or seaport. Internationally,

gateway can also mean the port where customs clearance takes place.

General Average

Abbreviation : G/A

Intentional and successful act or sacrifice which is carried out to safeguard vessel and cargo.

When a vessel is in danger, the master has the right to sacrifice property and/or to incur

reasonable expenditure. Measures taken for the sole benefit of any particular interest are not

considered general average.

General Average Act (York-Antwerp Rules)

There is a general average act when, and only when any extraordinary sacrifice or 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.

General Cargo

Cargo consisting of goods, unpacked or packed, for example in cartons, crates, bags or bales,

often palletized. General Cargo can be shipped either in break bulk or containerized form.

Gross Weight

Weight (mass) of goods including packing, and including the carrier’s equipment expressed in

whole kilograms or tons.

‘H’

Hague Rules

Rules governing the carriage of goods by sea and identifying the rights and responsibilities of

carriers and owners of cargo. These rules were published in 1924 following an international

convention and were subsequently given the force of law by many maritime nations.

Haulage

The inland carriage of cargo or containers between name locations / points.

‘I’

Import License

A document required and issued by some national governments authorising the importation of

goods.Also referred as import permit. With such documentation, customs clearance can be

conducted.

Inco terms

Maintained by the International Chamber of Commerce (ICC), this codification of terms is used in

foreign trade contracts to define which parties incur the costs and at what specific point the costs

are incurred. (also see incoterm chart)

Insurance Certificate

This certificate is used to assure the consignee that insurance is provided to cover loss of or

damage to the cargo while in transit.

Intermodal Transport

The movement of goods (containers) in one and the same loading unit or vehicle which uses

successively several modes of transport without handling of goods themselves in changing

modes.

Integrated Carriers

Carriers that have both air and ground fleets; or other combinations, such as sea, rail, and truck.

Since they usually handle thousands of small parcels an hour, they are less expensive and offer

more diverse services than regular carriers.

Intermediate Consignee

An intermediate consignee is the bank, forwarding agent, or other intermediary (if any) that acts in

a foreign country as an agent for the exporter, the purchaser, or the ultimate consignee, for the

purpose of effecting delivery of the export to the ultimate consignee.

Intermodal

Movement of goods by more than one mode of transport, i.e. airplane, truck, railroad and ship.

International Maritime Dangerous Goods Code

Abbreviation : IMDG Code

A code, representing the classification of dangerous goods as defined by the International

Maritime Organisation (IMO) in compliance with the international legal requirements.

International Maritime Organisation

Abbreviation : IMO

A United Nations agency concerned with safety at sea. Its work includes codes and rules relating

to tonnage measurement of vessels, load lines, pollution and the carriage of dangerous goods.

Its previous name was the Inter-Governmental Maritime Consultative Organization (IMCO).

Irrevocable Letter of Credit

A letter of credit in which the specified payment is guaranteed by the issuing bank if all terms and

conditions are met by the drawee. It is as good as the issuing bank.

‘J’

Jettison

The act of intentionally throwing cargo overboard, e.g. with the objective of lightening a vessel,

which has run aground, such for the common good of all interests: vessel, crew and remaining

cargo (Refer GA)

‘L’

Less than Container Load

Abbreviation : LCL

A general reference for identifying cargo in any quantity intended for carriage in a container,

where the carrier is responsible for packing and/or unpacking the container. For operational

purposes a LCL (less than full container load) container is considered a container in which

multiple consignments are loaded.

Letter of Credit

Abbreviation : L/C

A written undertaking by a bank (issuing bank) given to the seller (beneficiary) at the request, and

or the instructions of the buyer (applicant) to pay at sight or at a determinable future date up to a

stated sum of money, within a prescribed time limit and against stipulated documents.

Letter of Indemnity

Document in which one party undertakes to compensate and protect another from liability for the

performance and for the costs and consequences of carrying out a certain act. The issue of a

letter of indemnity is sometimes used in order to allow consignee to take delivery of goods without

surrendering Original Bills of Lading which has been delayed or become lost.

Lien

A legal claim upon real or personal property to pay a debt or duty.

Liner In Free Out

Abbreviation : LIFO

Transport condition denoting that the freight rate is inclusive of the sea carriage and the cost of

loading, the latter as per the custom of the port. It excludes the cost of discharging.

‘M’

Mate’s Receipt

A document signed by the chief officer of a vessel acknowledging the receipt of a certain

consignment on board that vessel. On this document, remarks can be made as to the order and

condition of the consignment.

Merchant Haulage

Inland transport of cargo in shipping containers arranged by the Merchant. It includes empty

container-moves to and from hand-over points in respect of container released by the Carrier to

Merchants.

Note : Carrier’s responsibility under the Bill of Lading does not include the inland transport stretch

under Merchant Haulage.

Marine Cargo Insurance

Broadly, insurance covering loss of, or damage to, goods at sea. Marine insurance typically

compensates the owner of merchandise for losses in excess of those which can be legally

recovered from the carrier that are sustained from fire, shipwreck, piracy, and various other

causes. Three of the most common types of marine insurance coverage are "free of particular

average" (f.p.a.), "with average" (w.a.), and "All Risks Coverage."

‘N’

Net Weight

The weight of the goods, including all packing but excluding the carrier’s requirement.

Non Vessel Operating Common Carrier

Abbreviation : NVOCC

A party who undertakes to carry goods and issues his own name of Bill of Lading for such

carriage, without having the availability of any own means of transport.

Notify Party

The party to be notified of arrival of goods.

‘O’

On carriage

The carriage of containers by any mode of transport to the place of delivery after the discharge

from the ocean vessel at the port of discharge.

Open Top Container

A freight container similar in all respect to a general purpose container except that is has no rigid

roof but may have a flexible and moveable or removable cover, for example one made of canvas

or plastic or reinforced plastic material normally supported on moveable or removable roof rows.

Out of Gauge Cargo

Cargo which dimensions are exceeding the normal dimensions of a 20 or 40 feet container, e.g.

overlength, overwidth, overheight, or combinations thereof.

Outsiders

A carrier, which operates on a route served by a liner conference but which is not a member of

that conference.

‘P’

Packing List

A shipping document issued by shipper to carrier, Customs and consignee serving the purposes

of identifying detail information of package count, products count, measurement of each package,

weight of each package, etc.

Panamax Size

The maximum measurements and dimensions of a vessel capable to pass the Panama Canal (33

metres).

Pilot

Local expert advising a vessel’s captain on safe navigation in those areas where the captain is

ignorant of local circumstances or where it is obligatory to take a pilot.

Place of Delivery

The location where a consignment (shipment) is delivered to the consignee viz. the place where

the carrier’s liability ends for the transport venture.

Place of Receipt

The location where a consignment (shipment) is received by the carrier from the shipper viz. the

place where the carrier’s liability for transport venture commences.

Pool

The shared use of an equipment by a number of companies, which make together the

investments in the equipment mentioned.

Port of Call

Place where a vessel actually drops anchor or moors during a certain voyage.

Port of Discharge

The port where the cargo is actually unloaded from the vessel.

Port of Loading

The port where the cargo is actually loaded on the vessel.

Pre-trip Inspection

Abbreviation : PTI

A technical inspection of Reefer containers prior to positioning for stuffing.

Pre-Carriage

The carriage of containers by any mode of transport from the place of receipt to the port of

loading on the ocean vessel.

Principal

Person for whom another person acts as agent.

Pro Forma Invoice

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,

and similar characteristics). When an importer applies for Letter of Credit as the means of

payment, a Pro Forma Invoice from the beneficiary of such Letter of Credit, usually the exporter,

is required by the L/C issuing bank.

Project Cargo

Quantity of goods connected to the same project and often carried on different moments and from

various places. This is a term normal referred to when shipping cargo air or sea, which does not

fall within standard methods. i.e. over-height, or oversize cargo which requires special equipment

and handle.

‘Q’

Quarantine

The period during which an arriving vessel, including its equipment, cargo, crew or passengers,

suspected to carry or carrying a contagious disease is detained in strict isolation to prevent the

spread of such a disease.

Quay (Pier)

Part of a wharf which is intended for the mooring of vessels.

Quotation

Amount stated as the price according to tariff for certain services to be provided or issued to a

customer with specification on condition for carriage.

‘R’

Ramp

An artificial inclined path, road or track along which wheeled vehicles, cargo and trailers may

pass for the purpose of changing their elevation and facilitating the loading and unloading

operation . (e.g. an entrance way into a roll-on-roll-off vessel).

Reefer Cargo

Cargo requiring temperature control.

Reefer Container

A thermal container with refrigerating appliances (mechanical compressor unit, absorption unit

etc.) to control the temperature of cargo.

Roll-on-Roll-off

Abbreviation : RoRo

System of loading and discharging a vessel whereby the cargo is driven on and off by means of a

ramp. A type of ship designed to load & discharge cargo which rolls on wheels or tracks.

Routing

The determination of the most efficient route(s) that people, goods, materials and or means of

transport have to follow.

‘S’

Said to Contain

Abbreviation : STC

Term in Bill of Lading signifying that the master and the carrier are unaware of the nature or

quantity of the contents of e.g. a container and are relying on the description furnished by the

shipper.

Salvage

The saving or rescue of a vessel and/or the cargo from loss and/or damage at sea.

Service Bill

A service Bill (of lading) is a document issued by one carrier to another for documentary and

internal control purposes. No freight details will be mentioned and the service Bill of Lading is not

a contract of carriage.

Ship Operator

A ship operator is the legal person making decision about the daily operation and employment of

the shipment and crew.

Ship Owner

The legal person officially registered as such in the certificate of registry of the vessel.

Shipper

The merchant (person) by whom, in whose name or on whose behalf a contract of carriage of

goods has been concluded with a carrier or any party by whom, in whose name or on whose

behalf the goods are actually delivered to the carrier in relation to the contract of carriage.

1. One who transports foods for a charge, in normal usage such a person would be called a

carrier, but carriers are also called “Shippers”.

2. One who tenders goods to a carrier for transportation.

3. The sender of goods to be transported as distinct from the receiver or the consignee.

Shipping Marks

The identification shown on individual packages to facilitate moving the packages without delay or

confusion to their final destination and to enable the checking of cargo against documents. The

letters, numbers or other symbols placed on the outside of cargo to facilitate identification.

Shipping Note

Document provided by the shipper or his agent to the carrier, multimodal transport operator,

terminal or other receiving authority, giving information about export consignments offered for

transport, and providing the necessary receipt and declarations of liability.

Shipping Weight

Shipping weight represents the gross weight in kilograms of shipments, including the weight of

moisture content, wrappings, crates, boxes, and containers (other than cargo vans and similar

substantial outer containers).

Sling

Special chain, wire rope, synthetic fiber strap or ropes used for cargo handling purposes.

Slot

The space on board a vessel, required by on TEU.

Spontaneous Ignition Temperature

The lowest temperature at which a substance will start burning spontaneously without an

external source of ignition.

Spreader

Device used for lifting containers and unitized cargo.

Stack

An identifiable amount of containers stowed in an orderly way in one specified place on an

(Ocean) terminal, container freight station (CFS), container yard or depot.

Stack weight

The total weight of the containers in a certain row.

Stevedore

A person or company working on the Terminal, loading, stowing, discharging vessels etc.

Stowage

The placing and securing of containers on board a vessel.

Stowage Factor

Ration of cargo’s cubic measurement to its weight, expressed in cubic fee or cubic metres per

ton, used in order to assess the total quantity of cargo which can be loaded in a certain space.

Stowage Plan

A plan indicating the locations of all the containers on a container vessel (synonym – Bay plan)

Stripping

The unloading of cargo out of a container.

Stuffing

The loading of cargo into a container.

Surcharge

An additional charge added to the net ocean freight.

‘T’

Tank container

A tank, surrounded by a framework with the overall dimensions of a container for the transport of

liquids or gasses in bulk.

Tare weight of Container

Mass of an empty container including all fittings and appliances associated with that particular

type of container on its normal operating condition.

Terms of Delivery

All the conditions agreed upon between trading partners regarding the delivery of goods and the

related services.

Noted : Under normal circumstances the INCOTERMS are used to prevent any

misunderstandings.

TEU

Twenty Foot Equivalent Unit

Unit of measurement equivalent to one twenty foot shipping container.

Tier

A horizontal division of a vessel from bottom to top. The numbers run from bottom to deck and

from deck to upwards and are used as a part of the indication of a stowage place for containers.

Time Charter

A contract whereby a vessel is let to a charterer for a stipulated period of time or voyage, for a

remuneration known as hire, generally a daily rate per ton deadweight. The ship-owner continues

to manage the vessel through the master and crew who remain his servants.

Transhipment

A shipment under on Bill of Lading, whereby sea (ocean) transport is broken into two or more

parts. The port where the sea (ocean) transport is broken is the transshipment port.

Twist lock

Device which has to be inserted into the corner fittings of a shipping container and is turned or

twisted, thus locking the container for the purpose of securing or lifting.

‘U’

United Nations Dangerous Goods Number / United Nations Number

Abbreviation : UNDG Number or UN Number

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 group of substances.

Note : The prefix ‘UN’ must always be used in conjunction with these numbers.

Ultimate Consignee

The ultimate consignee is the person located abroad who is the true party in interest, receiving

the export for the designated end-use.

‘V’

Value for Customs Purposes Only

The U.S. Customs Service defines "value for Customs purposes only" as the value submitted on

the entry documentation by the importer which may or may not reflect information from the

manufacturer but in no way reflects Customs appraisement of the merchandise.

Voyage Number

Reference number assigned by the carrier to the voyage of the vessel.

‘W’

War Risk

War risks must be covered under a separate policy for war risks.

Waybill

Non-negotiable document evidencing the contract for the transport of cargo.

Wharf

A place for berthing vessels.

Wharfage

The fee charged for the use of a wharf for mooring, loading or discharging a vessel. A charge

assessed by a pier or dock owner for handling incoming or outgoing cargo.

‘Y’

Yield Management

The process of maximizing the contribution of every slot or vessel. Basically it should be seen as

the process of allocating the right type of capacity to the right type of customer at the right price

as to maximize revenue or yield. The concept should be used in combination with the load

management.