Ocean Freight Glossary

A1 Cargo or goods are in first class condition. Ad Valorem A fixed percentage of the value of goods. This is used to calculate customs duties and taxes. Accessorial Charge A charge made by a carrier for other than basic ocean transportation. Accessorial means a particular service other than basic transportation. AFT At or towards the stern or rear of a ship. Affreightment The hiring of a ship in whole or in part. All inclusive A shipping rate that includes all shipping and accesorial charges. Alongside Referring to the side of a ship. Cargo to be delivered 'alongside' are to be placed on the dock or barge within the reach of the transport ship so that they can be loaded abroad the ship. BAF Bunker adjustment factor. A fuel surcharge expressed as a percentage added or subtracted from the freight rate. Ballast Heavy weight, often sea water, necessary for the stability and safety of a ship at sea. Berth Place alongside a quay where a ship loads or discharges cargo. Bill of entry A shipper's detailed statement for customs purposes. Bill of lading A contract of carriage used by ocean, inland waterway, rail, truck common carriers, and contract carriers. This is a document signed by the carrier and acts as a contract of affreightment, a receipt and evidence of title to the cargo. Break Bulk A term for general cargo. Cargo loaded in bulk inside a vessel as compared to cargo in a container. C & F (CFR) Cost and freight. A term of sale. CAF Currency adjustment factor. A surcharge expressed as a percentage from the freight rate compensating the shipper. Used to compensate for fluctuations in currencies. CAN Customs assigned number Carrier Any person who undertakes to perform the performance of carriage by rail, road, sea, air, inland waterway or any combination. Cash In Advance A method of making payment for goods. Buyer must pay for goods before they are shipped. Cell Guides Upright metal fasteners welded to the ship's deck to secure the containers for the sea journey. Certificate of Origin Document presented to customs for import freight used to certify the national origin of the goods. CES Customs examination station. U.S. Customs agents are on duty full time. If required, freight is taken to a CES to be inspected. CFS Container Freight Station. A warehouse or terminal licensed by U.S. Customs to receive in-bond (import) freight to be deconsolidated. CIF Cost, insurance and freight CO or C/O Certificate of origin (see above) COD Cash on delivery Consignee (C/nee) Person towhom goods are to be delivered by the carrier at the place of destination. This is the receiver. Consignor The sender of the goods. Container Wood or metal storage for the carriage of cargo. Container Vessel Ship specially designed to carry shipping containers. Cranage Charge of use of wharf crane when a ship's own appliances for loading or unloading are used. CRF Clean report of findings. Details the quality, quantity and state of goods that are shipped. CRN Customs registered number C/V Certificate of value C/VO Certificate of value and origin DDC Destination delivery charge. An accessorial charge to deliver at destination. Delivery Order Written instructions issued by owner of freight (or authorized agent) directing that the freight be released or shipped to a specified party. Demurrage Charges caused by containers being stored at port and using space beyond specified 'free period' of time. Detention Charges caused by containers being kept outside port beyond specified free time. DF Dead freight (shipper or charterer pays for space booked but not occupied) Discharging Removing goods from a ship. Drayage The trucking movement of a container. Dry Van A basic 20/40 ft container. DWT Deadweight Ton - Weight of cargo, stores and water, i.e. the difference between lightship and loaded displacement. Deadweight Ton - 2,240 lbs. ETA Estimated time of arrival. ETD Estimated time of departure. ETS Estimated time of sailing. FAS Free alongside ship. The seller fulfills his obligation to deliver when the goods have been placed alongside the vessel/quay.It is to a customer's advantage to buy goods FAS, because they then have more control over their shipment. FCL Full container load FEU Forty foot equivalent unit. Two 20 -foot containers equals one FEU. FIATA International Federation of Freight Forwarders Association FILO Free in, liner out. Seafreight which the shipper pays load costs and the carrier pays discharge costs. FIO Free in and out. Freight booked FIO includes the seafreight, but not loading and discharging costs. FIOT Free in and out and trimmed. Trimming - the leveling out of bulk cargoes. FMC Federal Maritime Commission FOB Free on board. Usually referred to the loading/terminal costs. Fortnightly 14 days (every other week) FOT Free on truck. Includes all loading, discharging and seafreight costs. Also includes costs of placing goods onto trucks at the quay. Freight Forwarder Company or person who organizes transportation of cargo including one or all of the following: sea, truck, air or rail transport, haulage and customs clearance. FTA Freight Transport Association or Free Trade Agreements FTL Full Trailer Load General Average A maritime insurance term. All shippers help pay for damages or loss if any part of the ship or cargo is voluntarily sacrificed (thrown overboard) to save the ship and/or the rest of the cargo. It is usually recoverable under the ordinary marine insurance policy. Groupage A container with cargoes from/for different shippers/receivers containing more than one shipper's cargo. Otherwise known as LCL (less than a container load). Harimonized System Detailed numeric system used worldwide to classify freight. ID Import duty IFF Institute of Freight Forwarders IMDG International Maritime Dangerous Goods code IMO International Maritime Organization ISF International Shipping Federation Keelage Toll on vessels entering a port Laytime Time given by the shipowner to allow a chartered vessel to load and/or discharge cargo. LCL Less than a container load. A container with cargoes from/for different shippers/receivers. One container containing more than one shipper's cargo. LILO Liner in, liner out or full liner terms. Qualification to a freight rate which signifies that it consists of the ocean carriage and the cost of cargo handling at the loading and discharging ports according to the customs. LO/LO Lift on/lift off Mafi A term used for wheeled trailer used for carrying cargo also known as a roll trailer. Manifest A list of the cargo to be loaded including Bill of Lading number, weight, volume, shippers and receiver's names, etc. NMB National Maritime Board Open Top Container Container with a removable fabric roof which enable heavy/bulk cargo to be loaded into the container by crane/elevator. Overlanded Cargo discharged but not on the manifest, generally by accident. Overweight Container Law Since April 9, 1997 any container or trailer in intermodal commerce weighing over 29,000 lbs must provide all parties with actual weight, reasonable description of the cargo, identity of the certifying party, the trailer or container number, and the date of certification. Pallet A wooden frame on which pieces of general cargo are placed so they can be lifted using a forklift truck. Packing list Document which itemizes shipment contents. PD Port dues Phytosanitary Cert. Phyto means plants. Under WTO treaty, a competent government authority can issue a certificate based on inspection of goods confirming that a plant, seeds, or plant products are free of insects and disease which the destination country specifies. Prime Entry Statement of goods based on details included in the bill of lading. Pro Forma Pro forma invoice - it is a quotation. Rolltrailer A term for a wheeled trailer used for carrying cargo, also known as a mafi. It can be used to transport cargo to and from the vessel once on quay. RORO Roll on, Roll off. Handling of cargo onto or off ship by vehicles or trailers, which could remain onboard. Schedule B Number Classification number assigned to freight. Seafreight Charges of transporting cargo by sea. Shortlanded Cargo manifested for port, but not discharged either by accident or design. Short Shipped Cargo not loaded and left either by accident or design. SL & C Shipper's load and count SOB Shipped on board Starboard Right side of a ship when facing the front or forward end. Stern The aftermost part of the ship. Stowage Order Before certain classes are sent to the docks for shipment, a special stowage order must be obtained from the shipowner. It is the shipowner's authority to the shipworker to accept the goods and stow them where indicated. This must accompany the goods to the docks. Tank Container A container suitable for carrying liquids of powder Tare The actual weight of the container only without goods. Tariff A published listing containing actual rates, classifications, charges, and rules. A tariff is the distinguishing feature of a common carrier consisting of transportation between published points/routes of service based on a common set of rules, at specified costs. TEU 20-ft equivalent unit. A standard of measure used to indicate container vessel or terminal capacity. A 20-ft container. THC Terminal handling charge. Another accessorial charge. Transshipment Transfer and reloading of freight from one vessel to another or from one mode to another, i.e., truck to ship) during the course of shipment from origin to destination. U.S. Customs A division of the Department of Treasury is in charge of controlling the admissibility of goods into the country, and collecting duty and taxes. Customs also enforces laws and regulations regarding imported goods. VAT Valued Added Tax Warehouse Entry Applies to import goods that won't be used immediately. Wharfage Fees for use of wharf in discharging cargo.