Glossary of transport terms

 

Term Meaning
Bill of Lading (B/L) Consignment note for maritime transport.
Breakbulk The process of assimilating several smaller transports into a large one.
Bulk Goods transported in bulk and having a homogeneous nature.
Bulk Carrier Ships designated to transport large quantities of bulk goods.
Bunker Adjustment Factor (BAF) Tax collected to compensate fluctuations in the price of fuel.
Cabotage Hired transport of goods or persons loaded in one place and unloaded in a different place on the territory of the same country.
Currency Adjustment Factor (CAF) Tax collected to compensate fluctuations in currency exchange rates.
Cargo Goods loaded onto a ship.
Cargo Handling The action of loading and unloading goods onto/from a ship.
Cargo Manifest Document indicating all the goods that are transported during the ship's voyage.
Carriers Ship owners or operators, providing transport on such ships.
Conference Association of ship owners operating the same routes and establishing the uniform application of transport fees and taxes.
Consignee Person indicated on the B/L as the recipient of the goods.
Container Rectangular structure used for loading goods to be transported, having a structure that is resistant to multiple uses.
Container Manifest Document highlighting the contents of a container.
Container Terminal Area specially designated for the storage of containers.
Dangerous Cargo Flammable substances susceptible of combustion on their own or if they are stored next to other substances or capable of generating explosive gases or causing suffocation or poisoning by coming into contact with air.
Dangerous Liquids Liquids that release flammable vapors.
Deadweight Measurement specific to ships, indicating the number of tons that can be transported by the ship.
Demurrage (demmurage) Charge perceived by the shipping line for not loading/loading the ship until a date specified by contract.
Dry Cargo Goods transported in bulk, other than liquids.
Feeder Service Transport services from a regional port to a main port in view of a long voyage and vice-versa.
Feeder Vessel Small capacity vessel performing the feeder service.
Forty-Foot Equivalent Unit (F.E.U.) It refers to the measurement standard for the 40-foot container. A 40-foot container is the equivalent of 2 TEU. This equivalence standard is established by ISO.
Full Container Load ( FCL) Container carrying a full load.
Hague Rules Rules governing maritime transports and defining the rights and responsibilities of freight carriers and owners.
Less than Container Load (LCL) Batch of goods that doesn't occupy a full container and is consolidated with other batches.
Liner A transport ship following a regular schedule.
Long Tons (L/T) “Long” ton (2240 lbs).
Metric Tons (M/T) “Metric” ton (2205 lbs).
Non-vessel-operating Common Carrier (NVOCC) An agent of the ship that is responsible for loading the ship but does not operate it.
Stowage Placement of goods onto a ship so as to ensure the safety and stability of the ship, not only during its voyage, but also in ports, when loading and unloading goods.
Twenty Foot Equivalent Unit (T.E.U.) Measurement defining the transport capacity of a container transport ship, referring to the size of a 20’ container.
War Risk Insurance covering the loss of goods pursuant to an act of war.
Term Meaning
AWB (Air Waybill) Air transport document highlighting the transport contract between the consignor of the goods and the carrier.
Agent Person or organization acting on behalf of the carrier
Bank Shipment Transport where the consignee is identified as a bank, and the real consignee of the goods is stated in the “notify” section; the carrier is required to retain the goods until the mentioned bank provides acceptance.
Bonded Area Area authorized by the customs authority for the storage of goods with duty unpaid.
Booking Request to reserve transport space on board of the aircraft.
Break Bulk Agent De-consolidating agent that splits up consolidated transports.
Cargo / Freight Any good that is transported or bound to be transported by aircraft, except for postal transports or other goods transported under a postal convention.
Cargo Ground Handling Agent Authorized agent handling the goods on behalf of the carrier.
Chargeable Weight Taxable volumetric weight defined as the greater value between the gross weight and the volumetric weight (Lxlxh in cm / 6000).
Commodity Contents of the transport (for example: computer parts).
Consignee Person or company indicated in the AWB as the recipient of the transport.
Consolidation Different batches of goods, grouped and covered under a single AWB (Master Air Waybill), each having a distinct transport document issued by the agent as a House Air Waybill.
Consolidator Agent performing a consolidation.
Customs Broker Customs broker undertaking customs formalities.
Customs Formalities Customs formalities
Damage Damage to the goods, arising during transport and affecting their value or usability.
Damage Report A form that is filled out when the goods are damaged during transport.
Dangerous Goods / Special Cargo Transport containing goods that require special handling conditions in accordance with the nature of such goods.
Dangerous Goods Regulations (DGR) Regulations containing a list of all dangerous goods and imposing detailed conditions with regard to the packaging and handling of such goods.
Delivery Receipt Document signed by the consignee and representing proof of taking over the goods.
Destination The final location provided in the transport contract.
Dimensions (DIMS) The length, width and height of parcels measured in centimeters and used to determine the transport fees and to define the general information
Flight Number Flight identifier.
Forwarder Agent or company performing services (such as the collection, dispatching or delivery of goods) meant to facilitate the transport of goods.
Freighter Aircraft used exclusively for the transportation of cargo.
General Cargo Any transport of cargo, other than dangerous goods.
Gross Weight Gross weight of the cargo, including all packaging.
Handling Handling of cargo.
House Air Waybill (HAWB) Document issued by a consolidator and containing instructions for a break bulk agent. It is always accompanied by the MAWB.
IATA Abbreviation for the International Air Transport Association, an organization issuing rules and regulations that must be observed in air transports.
Letter of Credit (L/C) Letter addressed by a bank to another bank, by which a third party, usually a customer, is enabled to receive money.
Live Animal Regulations (LAR) IATA publication containing regulations relating to the transport of live animals.
Manifest Official list indicating the batches of goods on board of an aircraft.
Master Air Waybill (MAWB) Transport document for consolidated transports, indicating the consolidating agent as the consignor.
Origin The first location of departure provided in the transport contract.
Part Shipment Part of a batch of goods being transported under two or more transports.
Rate Fee collected by a carrier for transporting a unit of weight or volume.
Rerouting Diverted route of air transport, other than what’s specified in the AWB.
Road Feeder Service (RFS) Truck operating on a regular route or beyond the route of an aircraft.
Routing Route of a transport, specified in the AWB.
Shipper Person or company indicated in the AWB as the party contracting the transport.
Surcharges Additional charges
Tare Weight ULD weight (of a pallet or container).
UN number Number formed of 4 digits, assigned by the United Nations Committee and identifying dangerous goods.
Unit Load Device (ULD) Pallet or container.
Valuable cargo (VAL) Transport of valuable goods.
Volume Volume measured in cubic meters.
Weight Charge Fee based on the weight of the transported goods.
  • AWB - Air Waybill
  • CHC - Handling Airline Charges
  • CHA - Handling Airline Charges
  • CCA - Cargo Correction Advice
  • CASS - Cargo Accounts Settlement Systems
  • FSC - Fuel Surcharge
  • GCR - General Cargo Rates
  • SSC - Security Surcharge
  • SCR - Specific Commodity Rate
  • SLI - Shipper’s Letter of Instruction
  • INC - Insurance Charges
  • CC - Charges Collect
  • PP - Charges Prepaid
  • DGR - Dangerous Goods Regulations
  • IATA - Air Transport Association
  • L/C - Letter of Credit
  • LAR - Live Animal Regulation
  • NCV - No Value Declared for Carriage
  • NCV - No Customs Valued
  • POD - Proof of Delivery
  • T/T - Transit Time
  • TACT - The Air Cargo Tarrif
  • VAL - Valuable Cargo
  • VUL - Vulnerable Cargo
  • F A S (Free Alongside Ship) - The seller delivers when the goods are placed alongside the vessel, on quays or lighters, barges or on a raft, at the agreed port of loading. This means that the buyer has to bear all costs and risks of loss of or damage to the goods from that moment. The FAS term requires the buyer to clear the goods for export, and must not be used when the buyer cannot directly or indirectly fulfill the export formalities. This term should only be used for maritime or inland waterway transport.
  • F O B (Free on Board) - The seller delivers when the goods are over the railing of the ship, at the agreed port of loading. The buyer has to bear the costs and risks of loss of or damage to the goods from that moment. The FOB term requires the seller to clear the goods for export. This term should only be used for maritime or inland waterway transport. If the ship’s railing is not deemed relevant, such as the case of roll-on/roll-off traffic or container transport, the use of the FCA term is more appropriate.
  • C F R (Cost & Freight) - The seller is required to pay for the freight and the necessary costs to bring the goods up to the agreed port of destination, but the risk of losing or damaging the goods, as well as any additional costs arising from events occurred after the goods were delivered on board of the ship is transferred from the seller to the buyer when the goods are over the ship's railing at the port of loading. The CFR term requires the seller to clear the goods for export. If the ship’s railing is not deemed relevant, such as the case of roll-on/roll-off traffic or container transport, the use of the CPT term is more appropriate.
  • C I F (Cost, Insurance & Freight) - The seller has the same obligations as for CFR, but, additionally, the seller is required to obtain maritime insurance to cover the buyer’s risk of losing or damaging the goods during the maritime transport. The seller concludes and pays the insurance agreements and pays the insurance policy. The buyer should take note of the fact that, in using the CIF term, the seller is bound to obtain insurance for the minimum cover. The CIF term requires the seller to clear the goods for export. If the ship’s railing is not deemed relevant, such as the case of roll-on/roll-off traffic or container transport, the use of the CIP term is more appropriate.
  • E X W (EX Works) - The product and the risks are transferred to the buyer, including payment of the transport and the cost of insurance at the premises of the seller. It is the most convenient delivery term for the seller, who is required to make the packaged goods available to the buyer, who is bound to load it at its own expense and risk.
  • F C A (Free Carrier) - Free carrier means that the seller delivers when it has handed over the cleared goods for export to the carrier designated by the buyer at the agreed place or point. If the buyer fails to indicate a precise point, the seller may choose the point at the place or area mentioned where the carrier is bound to take custody of the goods. If, in accordance with the commercial practices, the seller's support is required to conclude the contract with the carrier (as is the case for CFR or air transport). The seller acts at the risk and expense of the buyer.
  • C P T (Carriage Paid To) - The seller pays for the transport of goods up to agreed destination. The risks of losing or damaging the goods, as well as any other additional expenses resulting from events occurred after the goods were handed over to the carrier are transferred from the seller to the buyer when the goods are handed over to the carrier. If successive carriers are used for the transport of goods, the risks are transferred from the seller to the buyer when the goods are handed over to the first carrier. The CPT term requires the seller to clear the goods for export. This term may be used for all types of transport, including multi-modal transport.
  • C I P (Carriage & Insurance Paid) - The seller has the same obligations as for CPT, but, additionally, the seller is required to obtain insurance to cover the risk of losing or damaging the goods during the transport. The seller concludes the contract and pays the insurance premium. The buyer should take note of the fact that, in using the CIP term, the seller is bound to obtain the insurance premium for the minimum cover. The CIP term requires the seller to clear the goods for export. This term may be used for all types of transport, including multi-modal transport.
  • D A T (Delivered at Terminal) - The seller delivers the goods and unloads them from the means of transport at the terminal (at the port or place) agreed with the buyer. Terminal shall mean any place, such as: quay, warehouse, street, cargo terminal, CFR terminal. The seller shall cover all costs associated with the delivery and unloading of goods at the agreed terminal. It is recommended that the concept of Terminal is very well defined. DAT covers the customs formalities for export but it does NOT cover the cost of customs formalities for import.
  • D A P (Delivered at Place) - The seller delivers the goods using adequate means of transport to the place agreed with the buyer. The seller shall cover all costs associated with the delivery and unloading of goods at the agreed terminal. It is recommended that the concept of Terminal is very well defined. If the seller bears the costs associated with the unloading of goods at the destination, it is NOT entitled to re-invoice these costs to the buyer. It is recommended that the concept of Place is very well defined. DAP covers the customs formalities for export but it does NOT cover the cost of customs formalities for import.
  • D D P (Delivered Duty Paid) - The seller delivers when the goods have been made available to the buyer, at the agreed place in the importing country. The seller must bear all expenses and risks associated with bringing the goods to this place, including customs duties, other taxes and official charges payable upon import, as well as the costs and risks of fulfilling the customs formalities. This term may be used regardless of the type of transport.
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