If you work in the shipping industry, then you know that there is a lot of jargon to keep track of. From acronyms to technical terms, it can be difficult to keep everything straight.That's why we've put together a shipping terms glossary to help you make sense of it all.In this glossary, you'll find definitions for common shipping terms, as well as some lesser-known ones.
Whether you're new to the shipping industry or a seasoned pro, we hope you find this glossary to be a helpful resource.
Advanced Cargo Information System or Automated Customs Environment, two systems used by the U.S. Customs and Border Protection to track inbound shipments of cargo and conveyances entering the United States.
Advance payment is a type of down payment or prepayment a good or service is realized. Advance payments are sometimes required to clear the trade and sometimes to cover the seller's costs to supply the product or service.
Advance payment may cover the total amount or part-paying a supplier before the goods are delivered. The general practice in cross-border trade is that the payment is made after the freight service is received. However, making payment at the reservation stage is a common method in practice.
Advanced Charges, i.e., Freight Forwarding charges, are the fees charged on transportation for a shipment advanced or assigned between the carriers or the shipping companies. Advanced Charges are collected from the consignee or whoever organized the shipment.
Freight charges advanced between the carriers could be collected by any of these carriers from the consignor.
Shipping agents pay in advance on behalf of their customers for any costs incurred during the shipping process. Many freight forwarder companies add a certain percentage of depreciation or profits to these costs and pass them on to their customers. Sometimes advance fees are called credit limitations.
The advice of shipment is a caution sent to buyer companies "consignee" advising that the shipment has taken place. The advice of shipment includes the content of the loaded goods, the number of packages or parcels, the type of products, and their prices. A copy of the invoice and bill of lading can be attached with the advice of shipment. Because one of the purposes of sending advice on the shipment is to enable the importer company to make shipping insurance with the information, it will obtain.
The ASN typically contains information about the contents of the shipment, the expected delivery date, the carrier or shipping method used, and any special instructions or handling requirements.
Air Freight covers the transporting cargo by aircraft. Both cargo aircraft and commercial passenger aircraft are used to transport cargo. Air freight also indicates the cost of transporting freight transported by air. So, air freight also means the cost of air transportation. Air freight is the fastest and the safest shipping type.
Air cargo means the goods that are moved by airways. Since the definition of air freight also means the cost of transportation by air, the cargoes to be transported by air are defined as air cargo by the sector employees. Air cargo covers all products transported by air transport. Both export shipments and courier service shipments. Transport of express shipments worldwide is within the scope of "air mail, air freight, and air express" air cargo.
Air Waybill is a legally enforceable freight document issued by the Carrier or agent (on behalf of the Carrier), containing information about the items being shipped. It has basic information about the goods, sender and receiver, incoterms, and delivery conditions. Air waybill is a standard document prepared for air shipments and circulated by the IATA (International Air Transport Association).
This surcharge only applies to southbound containers transported by rail through the ports of Long Beach and Los Angeles.
Companies that offer passenger and freight transport services by air are called air carriers. In order for a company to provide air cargo service, it must be authorized by IATA (International Air Transport Association). The Warsaw Convention determines the authorities and responsibilities of the air carriers involved in international transportation.
All risks It is a type of marine insurance. It is the widest standard type of collateral at the shipping stage for overseas trade. All risks do not cover damages caused by wars, strikes, and riots.
All risk provides protection against all risks of physical loss or damage, with the exception of the conditions as mentioned above. However, the delays experienced during the shipping or at the ports are not covered.
The fact that the freight transportation originating from an international trade does not occur on a previously agreed term by the parties may cause conflict. The dispute in the overseas trade process can be determined by arbitration, according to which law it will be resolved. Transportation and shipping arbitration handles a variety of complex, cross-border transportation disputes in jurisdictions around the world.
It is the notice sent by the Carrier to the company in the "notify" part of the bill of lading before the cargo reaches the destination port.
Arrival notice contains information such as product, quantity, weight, and volume in the transport vehicle. The importer company checks the information in the arrival notice and starts customs procedures through the customs broker.
Arrival notice also includes information such as BL number and container number. Although as a standard procedure, shipping companies send Arrival notices and tracking transit and accept on-time delivery. It is the buyer's responsibility to track the load and start the transactions on time.
The cargo could be transferred to another consignee or shipping company by assignment in overseas shipments. Mostly it's seen at ocean freight. Assignment (shipping assignment) enables the transfer of a shipment's rights and ownership of the goods to any other consignee. The assignment term is used in connection with a B/L. The assignment involves the transfer of rights, title, and interest in order to assign goods by endorsing the bill of lading.
Aggregate shipment is the transportation of the cargo to be sent to a single buyer from different vendors as a single cargo by being brought together and consolidated. Consolidation avoids multiple customs clearances. This both reduces costs and speeds up transactions. Aggregation is a cost-effective model for collecting multiple orders and shipping goods across the world.
Additional services except the regular shipping operation suppose additional costs from the Carrier called accessorials charges. Costs of additional services and privileges provided during the transportation process are not included in the freight rate and are usually listed as additional costs (assessorials). For example, Collection/delivery, Inside pick up, Collect on delivery, transit privileges, Fuel surcharge, Arrival notification, and transfer.
The Automated Export System (AES) allows you to submit an Electronic Export Information (EEI) form electronically to U.S. Customs and Border Protection. The primary function of AES is to transfer any export-related information to the U.S. government. The data generated by AES is used not only for export statistics but also for many calculations, such as GDP.
As a shipping term, it means next to or near. For example, FAS, Free Alongside ship, used in incoterms 2020, means that the seller must deliver the goods alongside the vessel at a specific port.
Amazon Reference ID numbers are assigned to every customer and order as a way to keep track of them.
The Automated Manifest System (AMS) is the system used by US customs for submitting documents they require for processing shipments coming into the US.
It is a term used to indicate that the freight is undamaged.
It is a term that describes the ship's movement in the opposite direction or the vessel's rear.
Any Time, Day or Night, Sundays and Holidays Included is a term formed using the initials of the words. It refers to the continuous and uninterrupted operation of the ships.
It is used to show direction relative to the ship. It is used to indicate the stacked load.
It is the inspection of a business's compliance with predetermined standards. The audit can be performed by experts appointed by the receiving company, audit firms, inspection firms, or public authorities.
It is a system that means businesses record all processes related to the work. An audit trail contains sufficient records to track a transaction from start to finish. The audit trail can be kept as a digital record.
The Australia-United States Free Trade Agreement is the abbreviation that defines the bilateral free trade agreement between the USA and Australia.
AIS is the satellite system VTS (vessel tracking service) uses to track ships.
In the shipping industry, one-way shipping is costly, so when transporting vehicles from one port to another, planning is also done for the return load. The way of transportation between two ports is called Backhaul. A carrier is looking for another load if any container is unloaded to the destination port. Briefly, it is the return movement of a container or truck from its starting destination
A Bill of lading is a transport bill used for shipments made by ship (Sea waybill), train (Rail waybill), or airplane (Air waybill) and determining the conditions under which the loading will take place between the Carrier and the customer (exporter or importer). A Bill of lading is a valuable document representing the loaded goods' belonging.
The BL indicates that the goods have been received for carriage and to whom it will be delivered at the destination. The content of the BL includes information such as the sender and receiver company information, the type of cargo, its quantity, the number of packages or parcels, its weight, loading date, and estimated delivery date.
A blank endorsement on the B/L specifies that it did not specify a buyer for the goods on the bill of lading. The bill of lading also represents the ownership of the goods, and the goods change hands with the endorsement of the document. Bill of ladings can be blank endorsed by putting a shipper stamp on the reverse side of it. However, Non-negotiable Bills are the exception. Endorsement allows a bill of lading to be transferred to someone else. Bills of lading can be transferred to another company in three ways "To the name of," "To the order of," and To order."
Shipments made without specifying the recipient or sender on the bill of lading are called Blind Shipping. The main purpose of companies that prefer blind shipments is to ensure that their customers do not know the exporter, that is, the supplier company. In this way, the suppliers ship directly to the final buyers, but the buyers are the interlocutors or distributors. Blind shipping is especially preferred by companies that do drop shipping.
Two different Bills of Lading are created for a blind shipment. The first is between the exporting company and the importing company. The second bill of lading includes the importer and his customer at the destination.
Bonded warehouses are the areas where the goods are kept until the customs authorities complete the customs clearance. A bonded warehouse controlled by customs. These warehouses are duty-free areas until the importation process. In these warehouses, the goods can be kept until the customs duty is paid and the import procedures are completed, or they are sent to another country (for example, by re-export or transit trade).
Products that are hosted in the bonded warehouse, whose import operations are still in progress, or which are planned to be kept for a certain period are called bonded goods. Bonded goods, duties, VAT, and other expense items are unpaid goods. All necessary taxes and charges must be paid to complete the import. Bonded goods are kept in warehouses under customs clearance is completed.
Booking is arrangements between Carrier and shipper for freight confirmation, mostly for sea shipments. Importer or exporter companies require a full container or less container space from carriers on any specific date for cargo. Booking includes the agreement related to shipment conditions such as freight, delivery time, and loading date. Booking carries an option date, and the deal will automatically expire if the shipper does not make the necessary preparations.
A Booking Confirmation serves as a receipt for the main shipment leg (i.e., ocean or air).
This is an administration fee from the forwarder at origin.
Bulk cargo is a shipment type that is shipped without any package, pallet, or box. The term bulk means that dry cargoes such as mines, grain, coal, etc., are transported unpackaged, unloaded in containers, and loaded directly into the ship's holds. Bulk carriers transport bulk cargo.
The loads transported by bulk carriers but transported in pieces with equipment such as pallets, sacks, and barrels are called break bulk cargoes.
It is a definition that emphasizes the importance of volume rather than weight in load. Products that are low in weight but take up much space.
A financial document prepared by banks. It is a movable asset that may be exchanged for money.
A term describing the width of the ships.
A beneficial cargo owner (BCO) is an importer that takes control of a shipment at the destination using their own logistics assets instead of utilizing a third-party source like a freight forwarder or NVOCC.
The party that receives payment in a business transaction.
A bilateral is an agreement with a mutual commitment between the parties.
It's a document confirming the sale of a commodity, detailing the sales condition.
Billable weight is a pricing technique used by carriers to calculate shipping rates per package, taking into account both dimensional weight (the length, width, and height of a package) and the actual weight of the shipment.
The party responsible for making a payment due to a commercial transaction.
The U.S. Bureau of Industry and Security. Increasing U.S. exports is one of their responsibility.
Secure made of metal or wood used to keep the load carried during the shipping process stable.
Stacking cargo closely to prevent the load from being damaged by shaking.
Equipment used to secure containers to a chassis or wagon.
It's the port where the cargo ships enter the destination country.
The front side of the ship.
It's the empty part of the container.
Equipment used to secure the cargo in the container.
The Bunker Adjustment Factor (BAF) is an additional charge levied on the shippers to compensate for fluctuations in the price of the ship's fuel.
Cargo insurance compensates exporter and importer companies against physical loss or damage of goods during transportation and covers goods in temporary storage during transportation. Shipping cargo insurance policies are issued by insurance companies based on the clauses prepared by the International Underwriting Association of London.
In the form of CIP incoterms, the seller, i.e.," the exporter" company, organizes the processes of loading the container or vehicle, organizing the inland transportation, finalizing the port process and customs clearance, and shipping the cargo according to the final destination. CIP is a form of delivery that can be used for any mode of transport, including multimodal, regardless of which mode of transport is chosen.
CPT incoterm is especially used in multi-vehicle transportation types. The seller, i.e., the exporter, is responsible for inland transportation, export customs clearance, and organizing the overseas shipment without insurance. Basically, the exporter company is responsible for managing the shipment. After the shipment, all costs excluding freight belong to the importer for CPT shipments.
The basic elements of the international logistics sector are transport companies, that is, carrier companies. Sea, land, air, and rail transport are the fields in which carrier companies operate. Carriers are companies that provide the shipment of goods from one place to another via a domestic or international logistics network and establish the commercial bridge between buyers and sellers.
A Carrier’s Lien is a freight carrier‘s right to hold on to cargo until they have received payment for transporting the goods.
A certificate of origin is a document showing in which country a product was manufactured. The local chamber of commerce or chamber of industry usually approves the certificate of origin. Some countries require that the certificate of origin of the imported goods be presented at the local consulates in the country of origin.
The transport documents are based on the contract of carriage between the shipper and the carrier, and the buyer, the importer, is defined as the consignee. The consignor is the other party in the contract of carriage, the exporter, who sends the consignment to be delivered by land, sea, or air.
Consolidation provides scale savings in shipment by creating large loading lots from small quantities of cargo. The main reason for consolidation is to reduce transportation costs and speed up the paperwork and customs processes. Consolidated transportation is in case of shipment of the products to the same customer and the same region, transporting them in one piece by combining them and waiting for a while.
A fee charged to a shipper by a freight forwarder for services related to consolidation in LCL shipping.
Containers are transportation equipment with specific dimensions and standards used in international freight transportation. A large part of maritime transport worldwide is provided by container ships. Container transportation is compatible with multimodal and intermodal transportation. It can be transported by container ships and trucks.
A container cleaning fee is charged by shipping lines to consignees for cleaning a container after it has been imported and returned to the container depot.
A CFS (container freight station) is a warehouse that specializes in the consolidation and deconsolidation of cargo.
Fumigating or de-fumigating (removing fumigants after treatment) cargo goods, packaging and wood pallets may be required either under the IMO International Maritime Dangerous Goods Code, or US law, as enforced by CBP.
In CFR incoterms, the seller, i.e., the exporter company, organizes the processes of loading the container, inland transportation, handling the port charges and customs process in their coşuntuya, and delivering the cargo to the buyer at a port located in the country of the buyer, i.e., the importer. CFR is one of the 11 loading variants that make up incoterms.
The CIF delivery terms is similar to the CFR, except for the marine insurance requirement. In short, in the seller's country, inland transportation, customs and port costs, and international transportation organization, including insurance, are the responsibility of the exporter company. Although the transportation cost belongs to the exporter, the risks belong to the importer.
Customs bonds or bonds allow importers to process imports at US customs. Customs bonds are temporary documents issued on the Importer's behalf, on the shipping company's application, and through the customs broker. Customs bonds are issued annually and must be renewed at the end of every 12 months. Without the bond, the import loads of the shipments can't be cleared by US Customs.
Customs brokers are the officials responsible for preparing and checking customs documents and issuing export or import declarations. Customs legislation constantly changes depending on trade relations between countries, sectoral and local developments. Customs brokers are responsible for following the changing legislation and checking that foreign trade transactions are in compliance with all applicable laws.
Customs clearance covers the customs procedures regarding the export and import stage. The customs procedures carried out at the stage of exporting the products from the seller's country are called Export Customs Clearance. The customs procedures that will be subject to the buyer's country at the stage of entry of the products are defined as Import Customs Clearance.
A customs clearance fee is levied by the customs clearance agent or customs broker to cover the cost of preparing and filing customs documents.
U.S. Customs and Border Protection (CBP), a division of the Department of Homeland Security, is responsible for enforcing U.S. customs laws at ports of entry to prevent the importation of prohibited goods into the United States. CBP also conducts inspections of cargo containers entering or leaving the country. The agency’s mission includes protecting the borders of the United States from illegal immigration, drug smuggling, and terrorist activity; facilitating legitimate trade and travel; and promoting economic growth and job creation.
Inland cargo transportation of a cargo ship originating from a different country within another country
It's a free trade agreement. The US, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua are the parties to the Central America-Dominican Republic Free Trade Agreement.
The Canadian Customs Invoice is an outstanding invoice required for the export from the USA to Canada: This invoice covers goods over CAD 2,500 that are taxable and not classified under HTSUS Section 9810.
All kinds of goods transported between two destinations by land, sea, air, or train.
It's some kind of declaration required by customs at the stage of international shipments' arrival or departure from a country.
A document containing the details of the cargo carried on a ship and a breakdown of the load carried.
The Caribbean Community consists of the island and coastal states in the Caribbean Sea, with 15 principal and 5 associate members.
A document that allows the shipment of products to another country free of customs duties for display or demonstration.
The payment method in which the sales amount will be paid on delivery.
It is a safety mark called the China Compulsory Certificate mark, which must be present on products imported into China from abroad.
It is a list of items that can be used for commercial and military purposes, printed by the U.S. Department of Commerce as required by Export Management Regulations.
It is a sign that means that the product to which it is attached meets all the requirements and regulations of the relevant regulations.
It is a document showing that the products purchased or supplied meet the technical regulations and the national, regional, or international standards of the country of import.
It states that a written product is produced and sold in the U.S. This document also indicates that the producer company has no unresolved enforcement related to the U.S. Food and Drug Administration (FDA).
Documentation that the products have been checked by an authorized inspection company and appear suitable before shipment.
The Chamber of Commerce is a professional organization with a legal personality as a public institution that carries out activities to remove the obstacles to its members' professional activities. It defends its members' interests and assists them in development.
It is a sign that shows that a commercial document (for example, COO) has been approved by the relevant chamber so that it can be considered internationally valid.
Explanatory sections on the Harmonized System (H.S.) content include chapter notes and subheading notes.
The measurement used by freight carriers to determine the price you will pay to ship your goods.
The frame base with a wheeled vehicle used to stabilize and secure the container.
The Chassis Usage Fee, also known as the Chassis Usage Charge, is a fee that is imposed by the carrier on the consignee, for using their container chassis.
Mostly wooden material is put in front and back of the wheels of your vehicles to prevent them from slipping and moving.
Containerload or carload (Abbr.)
Payment request to the shipping company due to damage or lost products during the shipping phase.
CM is the abbreviation of Cubic Meters, while cm is the abbreviation of centimeters.
It's called Title 15 of the CFR and contains the codes of general and permanent rules issued by the U.S. Federal Registry.
The EAR regulation is the regulation that determines whether the exporters need an export license or not.
It is a commercial document that includes product or service details such as price, quantity, weight, and various components. In addition, information about the buyer and seller companies is included. The commercial invoice is an official document requested in shipment and customs processes.
All kinds of commercial goods
It is a legal system widely used in the USA and the U.K., based on tradition and past precedents.
It is the term that expresses compliance with industry rules, showing that international companies operate under international and local laws.
Damages and deficiencies are not noticed during the shipping phase or when the goods are first received.
An additional charge added to the base rate ocean freight cost, reflecting the additional expenses that the ship lines incur when calling at congested ports.
The intermediate carrier provides the transfer of cargo between two or more main transport vehicles.
The goods shipped to a place specified by an agent or buyer.
Consumer goods imported by the USA enter through customs in this category. According to CBP statistics, 95% of U.S. imports are products in this category.
It is the definition made for the cargoes that are suitable for the dimensions and weight limits of the containers.
The document, prepared separately for each container, contains information about the loaded cargo, the loading port, and the destination port.
It refers to products whose international trade is prohibited and not allowed to be transported—for example, illegal drugs and unauthorized explosives.
Written agreements between buyers, sellers, investors, suppliers, or service providers for different purposes such as product and service sales, leasing, partnership, etc.
A contract of carriage defines the legal responsibilities of the carrier and the user. The carrier may be a freight trucking carrier, air cargo carrier, ocean carrier, etc. and the user is either the consignor or consignee.
The document specifies the country where the internationally traded products are produced or assembled, provided it is above a specific rate. It is a mandatory document in the customs of many nations. It contains information about the product and the manufacturer and phrases such as Made in China, Assembled in The U.S.
This term, which is the abbreviation of Customs-Trade Partnership Against Terrorism, includes the standards that the USA started to implement for customs inspections after 2001. C-TPAT reduces waiting times at customs through security of the supply chain and reduction of border controls.
It is used as an abbreviation for the Cubic unit of measure.
Ships and shipping containers, such as containers, have volume and weight limits. Sometimes, even if the upper limit in terms of weight is not reached, there is no room for additional loading due to the volume of the loaded product. Cube Out is a logistics term that expresses this situation.
The Currency Adjustment Factor (CAF) is an accessorial percentage surcharge used by carriers to account for potential exposure to foreign currencies.
The government office consists of customs offices, where export and import transactions are made.
They are the institutions where export and import records are kept, declarations are recorded, and customs taxes are collected on behalf of the state. It is usually found in border areas, ports, and airports.
A Customs bond is a contract between three parties (Customs, a principal (i.e. an importer), and a surety) to ensure that all the duties and fees associated with the rules and regulations of importing or other Customs activities are paid to Customs by the principal.
See: Bonded Warehouse
It is a document prepared at customs points where information such as product value, H.S. class, and origin of imported products are recorded—also known as Entry Summary or Form 7501 in the U.S.
It is the same as a commercial invoice except for a few points. Compared to a standard invoice, a custom invoice contains details such as origin, container, and weight information.
The term refers to the rules and practices to which export and import will be subjected in customs.
The phrase "Customs Value Only" is added to the invoices issued for the products sent abroad for purposes such as sending samples and displaying them in foreign fairs and exhibitions. This statement indicates that the invoice is free of charge, and the invoice total is valid for customs records and taxation.
Indicates the deadline for the cargo delivery to the port or terminal. Besides, export companies must send the export document set to their customs broker. They have another cut-off to finish the customs documentation.
DAP, in incoterms, is the most responsible form of delivery after DDP. The seller is responsible for all processes except for paying the customs duties and customs clearance that must be handled in the buyer's country. It is a form of delivery added to Incoterms 2010 to replace the DAS, DEU, and DDU used in Incoterms 2000.
Delivered at the terminal, DAT Delivery is one of the 11 different forms of delivery included in incoterms 2010. As of 2020, Incoterms has left new incoterms named DPU (Delivered at Place Unloaded) instead of DAT. In the form of DAT delivery, the seller, the exporting company, is responsible for delivering the cargo at a specific location in the buyer's country and for all stages, except for customs clearance in the buyer's country until this stage.
DDP delivery method is incoterms in which the exporter undertakes all processes and costs, including transportation, customs, and insurance. Among the 11 Incoterms, the mode of transport bears the most responsibility on the exporter. In the form of DDP delivery, the seller, i.e., the exporter company, organizes all delivery stages. Since customs duties payable in the importer's country are also the seller's responsibility, all-expense items must be calculated before starting the trade process. Learn more about the differences between CIF and DDP.
The load type determines which term the fee for delivery is called. Drayage applies to containers. Trucking Fee applies to ocean freighted pallets. Airfreight Cartage applies to air-freighted pallets. This charge covers delivery from a warehouse at the destination terminal to your requested delivery point. The two variable factors that determine how high this fee is the fee is distance and either freight class (for most US truck carriers) or chargeable weight.
In maritime transportation, container filling and unloading processes are limited to certain limits. If the container is not delivered to the port or container warehouse empty within a specified period of time under the name of free time, the demurrage period begins. Depending on the tariff announced by the carrier in advance, a daily demurrage fee that increases in certain periods is applied.
On the other hand, detention cost is the expense incurred if the container taken out of the port does not return to the port within the free period. The difference between demurrage is that it defines the expense incurred outside the port, not in the port.
The process of transporting dangerous goods requires special permits and special equipment. Therefore, flammable, explosive, poisonous, toxic, and similar products are classified as hazardous goods.
Declaration documents stating the content of the products are prepared during the shipment process of dangerous goods. For example, the form designed for air transport is called DG IATA, and the document prepared for maritime transport is called DG IMO.
The Abbreviation of "Directorate of Defense Trade Controls" is a government agency within the U.S. Department of State.
Used to identify dangerous cargo. It is an abbreviation for "dangerous and hazardous."
It's the abbreviation of "doing business as."
It divides the loads into small loads by dividing them at the terminals according to the distribution centers.
Deemed export means transmitting any commercial information or technology to other countries. Deemed export needs the same process as the usual export.
It is a document showing that the goods have been received. For example, suppose there is any damaged or missing item in the incoming products or their packaging. In that case, the buyer issues the delivery receipt accordingly and has it signed by the shipping officer who made the delivery. If any insurance claim occurs, the insurance company will request this document.
Demurrage is the amount cut off by the line while the container is waiting at the port as complete. Detention is the amount charged by the carrier for the time interval between emptying the entire container and delivering the empty to a warehouse determined by the line.
It is impossible to transfer the products included in the invoices with this statement to a different company at customs or transit trade to another country. As long as the parties involved do not reach a mutual agreement, in the USA, as in many countries, forwarding and transfer transactions are prevented by legal assurance.
Volumetric Weight or Dimensional Weight is a weight-measurement technique used in eCommerce logistics in which the weight of a package is calculated as the product of its length, breadth & height divided by a courier-specific constant.
It is the banking term defined in detail by the ICC, used for the nonconformities detected in the documents that do not comply with the conditions specified in the letter of credit.
Particular areas, usually used by distributors, where the storage and distribution of products to be distributed throughout a region, city, or country is organized.
Changing the buyer, i.e., the importer, of the products shipped for export or changing the delivery country.
In maritime transport, as part of the port, the area where ships dock and loading/unloading operations can be done.
The document shows that the cargo has been loaded from the dock to the ship. Information on the Dock Receipt can be used when creating a bill of lading.
It's the short form of the U.S. Department of Transportation. DOT operates in the U.S. as an executive agency that oversees transportation.
It means a refund of fees previously charged by customs. Disadvantages may occur due to reasons such as re-export or exemption from taxes paid in the past.
It is a logistics term called Cartage, used for short-distance transport. (For example, transportation within the same city)
Also called sales without stock. The seller does not receive the products from the manufacturer. Instead, the shipment is made directly from the producer to the final customer when the goods are sold.
It is a directory of rules applied in programs where regular rules, such as the export compliance program (ECP), are processed. Two or more must abide by the laws created under the title of Due Diligence. Non-compliances are controlled by sanctions such as fines.
The attempt to sell products to a country below the minimum market price is defined as dumping. Dumping is an unfair competition method. Sometimes it's applied with government support, sometimes with large-capital companies, to create a market share in a product group in the target country.
The amount is taken into account when calculating customs duty.
Also known as Tariffs. Usually, the import stage refers to the customs duties determined according to the product group and the exporting country. However, in some countries, duties are rarely required for some export products.
An export license is an official document that shows the export license granted to an organization or company for a particular product group. Within the scope of the free market economy, export transactions are not subject to permission. However, depending on the general and technical characteristics of certain products, exporting only to authorized companies is a common practice. For example, exports of some chemical or medical products or weapons.
The term "Ex Works" means that the seller delivers the goods at the disposal of his own place or another place such as a factory or warehouse. EXW represents the minimum obligation for the seller. Exworks price is the base price of the goods; additional costs such as customs, insurance, and freight are not included in the export price.
Export Declaration is the declaration given by the exporting company to the customs regarding the products to be exported through the customs broker. Before the Export of the goods, all mandatory fields in the Export Declaration must be filled, and documents such as invoices and packing list must be submitted to the customs authorities. The document used to complete the customs clearance of the goods in all import and export transactions and to ensure their exit from the customs is called the customs declaration.
EAR is an export regulation whose compliance control is administered by the United States Department of Commerce, Department of Industry and Security ("BIS"). The EAR governs whether a person or entity can export certain products subject to export controls from the U.S., re-export from a foreign country, or transfer from one person to another in a foreign country.
ECCNs identify items subject to U.S. export control regulations and may require an export license. If a product has an ECCN, the EAR also lists the reasons for checking that product (such as anti-terrorism, national security, and crime-fighting).
eCO is a system that enables chambers of commerce to generate certificates of origin digitally. This way, document transfer and control between customs can be done online. The American World Trade Chamber of Commerce (AWTCC) manages the eCO portal in the USA.
Electronic Export Information (EEI) is a system where export information is filed via AES. Formerly known as the Shipper's Export Declaration (SED), the EEI provides general information about the export process and is used to develop U.S. export statistics and controls.
It is a system that provides digital transfer of documents such as bills of lading, commercial invoice, and certificate of origin.
To impose trade sanctions on another country to protect the country's economy, a particular industry, or national security, either through tariffs, quotas, or a complete trade cut.
Authorization by the government to purchase property for public use
The logistics term that explains the movement of empty containers.
The final destination and the last recipient of the cargo. Sometimes the final buyer is a different company involved in the next purchase phase. In other words, the buyer company transfers the goods to another company.
It's an agreement that signals transfer between two parties. Signature on the back of the bill of lading. Indicates that the value of the negotiable document is transferred to the bearer.
It is the notification of the imported load to the customs by the customs broker authorized by the importer.
Document issued when transferring containers, between terminals, or from one transport vehicle to another.
ERP is a system in which some components, including software and hardware, work in an integrated manner, which collects the data of resources from different fields to a single point. It enables the management of organizational processes from the same system.
ETA is an indication of the time that a vehicle is expected at its destination.
Estimated Time of Completion is the time estimated for the activities relating to loading or unloading of goods to be completed.
Estimated Time of Departure is the projection of time that is expected for a transport system to depart its point of origin/location.
Estimated Time of Readiness - Estimated time until the ship is ready for loading.
Estimated Time of Sailing is a term used for the shipment or movement of goods and people via the sea/ocean.
The exception indicates a problem with the delivery. This phrase detects damaged or missing items on the received products.
Sometimes, even though there is not enough product to fill the container, the container can be used as FCL by paying the freight of the empty part. By paying extra for equipment such as a trailer, you can ensure that it is collected only for the use of your company.
Expedited shipping is the process of moving freight in a time-sensitive manner. When utilizing expedited shipping services, shippers often prioritize on-time transportation service above and beyond their bottom line.
With explanatory notes presented as the explanation of H.S. codes, you can determine the hs code in which your product is included and identify the products included and excluded from the same number. These notes also have the technical description of the products.
In international trade, it is the selling party.
It is a compliance program that includes written procedures to ensure that exporting companies comply with export procedures and do not make mistakes. As a result, the likelihood of companies participating in the ECP program violating export regulations is minimal.
Permits, licenses, and authorizations required to export or import is determined in the export and import control processes.
Software with many functions, such as document preparation, sharing, reporting, and checking, where exporters control all processes, including customs and shipping.
They are companies that provide technical support to companies that do not have an export department in processes such as export, customs procedures, and transportation. If requested, an EMC can fully manage your exports on behalf of your company.
According to FCA delivery terms, the seller, the exporter company, delivers the goods to the first carrier at a point requested by the buyer, that is, the importer. The responsibility of the exporter ends with the fulfillment of the customs procedures. FCA is the least risky mode of transportation after EXW for exporting companies among the 11 different delivery terms included in incoterms 2020.
Free Alongside Ship, the exporter, organizes the inland transport and prepares the container at the port next to the ship specified by the buyer. The seller company also completes the customs procedures. After this point, it is up to the importer company to organize the shipment, take out insurance and complete the customs clearance in his own country.
FOB is a form of delivery that requires the goods to be loaded on the ship's deck to be transported. In short, the exporter is responsible for inland transportation, harbor charges, and customs clearance processes. The seller's liability ends as soon as the products or containers are loaded onto the ship. FOB delivery term is only used for port shipments. It's also the most popular incoterms with EXW and CIF
A freight forwarder is a company that specializes in the transportation of goods from one country to another. The term "freight forwarder" was coined by the International Air Transport Association (IATA) in the 1960s, and has since become a genericized trademark for companies providing such services. Freight forwarders are also known as consolidators or logistics service providers. They provide services such as arranging air cargo shipping, ocean freight forwarding, warehousing, customs brokerage, and trucking.
Full Container Load identifies the container organized by the exporter or importer for use by a single loader. It is preferred by shippers who have enough cargo to fill all standard 20' or 40' containers. In an FCL container, the entire load belongs to a single company. The FCL loading type usually provides the best price for large volume shipments.
What is Free Trade Agreement?
Free trade agreements (FTAs) are bilateral or multilateral treaties that establish rules for the free movement of goods, services, capital and people between two or more countries. FTAs can be classified into three broad categories:
The main objective behind entering into these agreements is to reduce tariffs and other barriers to trade. However, they may also include provisions related to intellectual property rights, government procurement, environmental protection, labor standards, competition policy, dispute settlement mechanisms, etc.
An area where there are no restrictions on imports or exports. This means that you can import anything from anywhere in the world without having to pay duties or taxes.
It's the short form of "freight of all kinds." It is often used to describe containers containing cargo from more than one exporter.
Incorrect information in the bill of lading (shipping documents)
An agency of the U.S. federal government whose job is to enforce the laws of shipping by sea.
It is the official journal of the new rules and regulations published by the U.S. government.
Abbreviation to describe a 40ft container.
The term expresses extraordinary situations and disasters such as earthquakes and hurricanes. It is used to indicate exceptional circumstances in contracts such as insurance contracts.
A term denoting the direction of a ship sailing parallel to the center line.
They are industrial zones that are not subject to customs duties and are assumed to be outside the customs area of their country. Usually, there are manufacturing companies and warehouses. It is called FTZ, for short. Every product entering these zones is subject to import procedures, and every product leaving is subject to export procedures.
It is an abbreviation of "Foreign principal party of interest." Represents the buyer abroad, that is, the importer.
It refers to the period that the container or transport vehicle can wait without incurring additional costs to the company organizing the shipment. For example, free time for containers to wait at ports is usually limited to 3, 5, or 7 days.
Products that the freight company transports.
Usually, the person establishes business connections between small-scale shipping and exporting/importing companies.
Freight Carriers are the freight companies that physically transport “carry” the freight on behalf of shippers. In most cases they are not also freight forwarders, who manage the shipment on behalf of the shipper, however, NVOCCs are kind of a combination of carrier and forwarder.
If you are making an international freight shipment, the shipment will likely be carried by separate freight companies for pickup, main transit and delivery. Freight trucking companies and railroad companies carry most pickup, delivery, and other domestic freight. Cargo and standard airlines for air freight, and ocean carriers for sea freight, carry most international freight.
Freight class is a standardized shipping industry pricing classification establishing uniform parameters for commerce between multiple brokers, warehouses and carriers. It is determined based upon a range of factors, including: ease of handling, value, weight, length, height, density and liability.
Abbreviation of the Foreign Trade Regulations (FTR). It regulates international trade practices in the USA. BASE. Census Bureau periodically checks and updates FTRs.
Indicates a fully loaded truck. There is only one exporter's load in the FTL vehicle.
Afumigation certificate, sometimes referred to as a pest-control certificate, isa document that serves as confirmation that any wooden packing materials (ie,pallets) used in a cargo shipment have been fumigated. They contain detailssuch as treatment purpose, fumigants used, and temperature range.
Insurance against loss or damage to goods during transit. Goods movement insurance covers losses due to fire, theft, accidents, strikes, riots, war, natural disasters, acts of terrorism, etc.
An invoice issued by an exporting agent to the buyer upon completion of export transaction.
A person authorized by the seller to receive payment for the sale of goods.
The act of transporting goods from one place to another.
Transportation of goods from one location to another.
This clause states that if the goods fail to meet the agreed quality or quantity, then the supplier will replace them with new ones at his/her own expense.
WTO members signed the agreement in 1995 to improve trade by removing tariffs and quotas, restricting trade between countries, and prolonging processes.
It refers to the orders opened by U.S. customs to monitor the orders that have not been entered into the system.
A General Rate Increase (GRI) is an adjustment of sea freight rates across all orspecific trade routes during a set time frame. GRIs are usually spurred by thesupply and demand chain within freight shipping and generally initiated bybigger carriers.
Total weight, including the container itself, the cargo inside, and the importance of the truck if transported by truck. GVW is the sum of the tare of the container and the weight of the cargo in it.
Haulage is the name given to the business of transporting the goods that need to be transported from one address to another through transport such as ships, trucks, planes, and trains. Haulage is the transportation of goods between the addresses of exporting and importing companies, along with factories, warehouses, and ports.
Hazardous materials (HM) are defined as any material that is capable of causing serious injury or death if released into the environment. HM can be divided into two categories: 1) those which pose a significant risk to human health and 2) those which pose a threat to the environment. The former category includes chemicals, biological agents, radioactive substances, and other potentially hazardous materials. The latter category consists of toxic wastes, flammables, corrosives, explosives, and other dangerous substances.
Charges levied by a carrier for handling and storage of goods. Handling charges vary depending on the size and weight of the shipment.
This fee is charged by the port authority for using its facilities. Harbor service fees are based on the number of days the ship stays in port.
Cargo that requires special equipment to move it. Heavy lift cargo includes cars, trucks, tractors, cranes, forklifts, etc.
Bill of lading used to track the progress of goods through the transportation system.
Agreement whereby the buyer agrees to hold harmless the seller from any claims arising out of the use of the product sold.
Port where the shipper has its headquarters. The home port is usually the same as the shipping address.
A House Bill of Lading (HBL) is a BOL created by an Ocean TransportIntermediary (OTI), such as a freight forwarder or non-vessel operating company(NVOCC), and is issued to the supplier once the cargo has been received. TheHBL is an essential document in shipping, as it's the formal acknowledgment ofthe receipt of goods being shipped.
The HS code is created for categorizing internationally traded goods and covers the first six digits of the universal part. HTS is a code system that can be up to 12 digits. HS codes are universal, while HTS codes are country-specific. For example, the USA uses a 10-digit HTS code, while EU countries use an 8-digit HTS code. During the export or import phase, the customs procedures of the products are made according to the HS number. In short, there is an HS code for each tradable item.
The place where ships dock for loading, unloading, supply, and other needs.
Administrator with authority to operate on the harbors
The open side in the deck of a ship docked in the cargo hold.
It's the abbreviation of "The Harbor Maintenance Fee."
Its the Abbreviation of "The Harmonized Tariff Schedule of the United States"
Certificate issued by the government stating that the goods have been inspected and found to be free from defects.
Waybill used when the air waybill is not signed by the consignee. It is used only when the consignment is shipped via air.
A federal law passed in 1887 that regulates interstate commerce. This act prohibits carriers from charging unreasonable rates and establishes minimum standards of safety and sanitation.
Coverage provided by the carrier against loss or damage to the goods during transit. Insurance coverage is provided either by the carrier or by the shipper.
Value stated on the bill of lading at time of issue. If the value changes after issuance, the new value will appear on the bill of lader.
Document showing the amount due for the purchase of goods. Invoices are sent to the customer before the goods leave the warehouse.
Inbound freight defines the transportation and storage processes during the production facilities' raw material purchasing stages. Inbound freight covers shipping and storage charges. Inbound freight receives raw materials and deals with suppliers.
Incoterms are the rules that determine the rights and obligations between the buyer and the seller in the shipping processes that take place during the export and import stages. The latest version of incoterms determined by the ICC and revised periodically is incoterms 2020. Incoterms contain 11 different modes of transport, and they are divided into two main groups "Rules for all modes of transport" and "Rules for sea and inland waterway transport."
Inland Haulage Charges are the transportation costs incurred when movingfreight from a seaport of loading to an inland container freight station, andvice versa.
Intermodal Transport is a form of transport using two or more transport vehicles without changing the container. Intermodal transportation is a safe, economical, and environmentally friendly transportation method. The fact that the loads are not exposed to the download-restore processes during vehicle change reduces the risk of damage or loss of the products. The transfer takes place faster and with minimum handling costs. Intermodal transit takes place using ships, trucks, and trains.
Import is the inclusion of the products and services purchased from another country within the country borders of the buyer company by completing the transportation and customs processes. Importing is basically an international purchase. The company that performs this transaction is called the importer.
Import duty is a tax collected on imports and some exports by a country's customs authorities. A good's value will usually dictate the import duty. Depending on the context, import duty may also be known as a customs duty, tariff, import tax or import tariff.
An in bond shipment covers the stage before customs for an imported or exported shipment. Importers may prefer bond shipping for various reasons arising from logistics processes or expectations. In bond, describe that customs have not cleared the goods. So it's not entered the borders of a country yet.
Its the Abbreviation of "International Maritime Dangerous Goods"
IMO establishes these regulations.
The form submitted by the importer company or shipping agency to the customs of the destination country, in which basic information such as content information of the imported goods, the contact information of both companies, and incoterms are presented.
A license allows companies purchasing products or services abroad to import from the government.
A location where you can transfer the cargo between two or more carriers.
It is a trade organization that aims to develop international trade by developing policies to increase and facilitate trade between member countries. With missions such as reducing tariffs and preventing quotas, Dispute resolution acts as a mediator and competent authority between countries by creating a basis for economic and political reconciliation.
For forwarders andcarriers, UPS, FedEx, and DHL are the leaders in Express Freight. Most shippers(consignees and consignors) would refer to these companies as beinginternational couriers.
Express freight is only cost-effective for small shipments. Moreover,each international courier has their own weight and size restrictions. Largershipments will generally be cheaper to transport by air freight, and largerstill by ocean freight.
Of all the shipping modes, shipping by an international courier is themost streamlined, in part because the shipment is completed by one company frompickup to drop-off.
The master document, in which the cargo records entering the countries are listed, also helps countries to prepare trade statistics and calculate the import duties.
An ImporterSecurity Filing (ISF), also known as “10+2,” is a filing required by the CBPthat documents importing information and details, as shipments pass from pointto point. Importers who do not file the ISF properly prior to the shipment oftheir goods will be penalized (US$5,000 fine). The ISF must be transmitted atleast 24 hours prior to an ocean's shipment's departure to the United States.
It is the standard on wooden packaging materials subject to international trade, determined by the International Phytosanitary Convention (IPPC) for phytosanitary measures to prevent the transport and spread of harmful organisms with wooden packaging materials used in export.
ITARs are the International Armaments Traffic Regulations that regulate the regimes necessary to protect U.S. national security and control the export of defense and military technologies.
The KAX is responsible for managing the relationship with the client. He/she is also responsible for maintaining the account. A KAX can be either internal or external. An internal KAX works directly under the sales manager. An external KAX works for the sales department but reports to the marketing department.
LCL is the transportation of the products of more than one company with a single container by combining loads of more than one company for loads that will not fill one container. LCL can also be defined as consolidation. LCL enables exporting and importing companies to ship small quantities of cargo at a low cost.
LTL (Less Than Truckload) refers to the small freight or a limited quantity for a truck. In short, if there is not enough load to fill a truck, it is necessary to consolidate the goods of more than one company with LTL. With LTL, exporters and importers can ship at a cost proportional to the truck's load. LTL offers a more profitable transportation model for transporters with partial cargo transportation compared to an alternative and full truck.
Main Transit Fees include Ocean Freight/Air Freight Charge, Bunker Adjustment Factor, Currency Adjustment Factor, War Risk Surcharge, Peak Season Surcharge, and Panama Transit Fee.
A letter of credit is a payment method that enables exporters and importers to trade with a secure payment method, prepares the export documents in accordance with the L/C conditions of the exporter, and gives the assurance that the issuing bank will make the payment on behalf of the importer after the shipment processes are completed. The parties in the letter of credit; Applicant is Beneficiary, Issuing Bank, and Confirming Bank.
Logistics is the process of moving goods from one location to another. Logisticians plan, coordinate, and manage the movement of goods through the supply chain. They work closely with the buyers and sellers to ensure that the right products reach the right customers at the right time.
Laden means loaded, ladened. It also refers to being filled with a considerable quantity. It is also used as a verb: fill or place a load on a container or vessel.
Includes all shipping costs (plus loading, handling, and unloading at the port of destination), insurance, customs, and taxes. In short, it is the sum of the costs incurred until the goods are delivered to the buyer's warehouse. Then, the total cost per unit can be calculated with the landed cost.
License requirement for export is not required for many countries and most product groups. However, although an export license is required, exceptions may apply under specific criteria.
In sales contracts, buyer companies set deadlines, quality standards, and a minimum number of shipments. They encourage manufacturers to be more careful with compensations to be paid if they are not met. Penalties that do not meet the buyer's standards are called liquidated damages.
Import cargo enters the customs territory. If necessary, a physical examination of the products is made. Then, import documents are examined, and customs duties are calculated based on the import invoice. When the import declaration is opened, the taxes to be paid become clear.
The amount measured in degrees that boats lean from vertical to side.
The person assigned to load and unload ships at the port.
It's the abbreviation of "Just in Time." An inventory control system enables factories and shipping companies to work with zero stock.
The J-List contains the list of products exempt from a certificate of origin in import into the USA. For example, marking fun arts products is not practical. In addition, many liquids are not suitable for marking.
Market research is used to identify potential customers and their needs. Market research is done through surveys, focus groups, interviews, and market analysis. It helps companies understand what consumers want and need.
A merchant invoice is a document that details the terms of sale and payment made between a supplier and a customer. Merchant invoices include information about the product being sold, the price of the product, the quantity of the product, and any discounts offered.
The MOQ is the smallest order quantity required to fulfill a contract. For example, if you buy 10 widgets at $10 each, your MOQ would be $100. If you buy 100 widgets at $5 each, your MOQ will be $500.
Modified VAT is a tax on the value added to a good or service after its manufacture or production. Modified VAT is charged at different rates depending on where the good or service is consumed.
The model number is a unique identifier assigned to a specific product. Model numbers are typically found on the back of the box or on the bottom of the packaging.
A multinational company has operations in multiple countries. Multinational companies often use intermodal transportation because they can save money and time compared to air freight.
MSD is a discount applied when more than one shipment is received during a billing period. MSD is calculated based on the total weight of all shipments received.
International shipments sometimes require the cargo to be transported using more than one transportation vehicle due to geographical conditions, delivery times, or economic conditions. This requires the use of multimodal transport as an integrated system. In multimodal transportation, a single transportation contract is prepared for all transportation vehicles used between loading and destination points.
The carrier's illegal transactions make attractive cargo offers to customers, reducing costs and offering low offers.
Seaway shipment, ocean freight, transporting cargo with vessels.
Numbers, letters, and other signs distinguish parcels, packages, or pallets during shipping.
Bills of lading prepared by line owners are defined as Master Bill of Lading. Non-vessel operating carriers and freight forwarders are not authorized to prepare MBLs.
A Material Safety DataSheet (MSDS) is a document that contains information on the potential hazards(health, fire, reactivity and environmental) and how to work safely with thechemical product. It is an essential starting point for the development of acomplete health and safety program. It also contains information on the use,storage, handling and emergency procedures all related to the hazards of thematerial. The MSDS contains much more information about the material than thelabel. MSDSs are prepared by the supplier or manufacturer of the material. It is intended to tell what the hazards of the product are, how to use the productsafely, what to expect if the recommendations are not followed, what to do ifaccidents occur, how to recognize symptoms of overexposure, and what to do ifsuch incidents occur.
It is usually provided by the exporter (via the manufacturer) along witha UN Number and only is only necessary when shipping hazardous goods.
It is the exemption status from trade priorities and customs duties, primarily from industrialized countries to developing countries.
It is an abbreviation for Merchandise processing fee. A US customs fee is calculated for importing at U.S. customs. The Goods Handling Fee is a tax calculated in proportion to the "Ad valorem" invoice value. (0.34% of invoice value, minimum $27.75, maximum $538.40)
Notify party defines the party to be notified about the cargo at the destination in the bills of lading. While the buyer of the goods is the consignee, that is, the importer, the notify party is usually a customs broker or shipping agent. If the payment is made by letter of credit, what will be written in the "notify" section is specified in the letter of credit. In sales against documents, the notify part is usually the bank.
The NFC is a classification system used by the United States Department of Transportation to classify commodities according to their relative importance and risk. The National Freight Classification System was developed in 1973.
Net weight refers to the actual weight of the merchandise minus any applicable charges such as insurance, brokerage fees, etc.
An NDI is a person who imports goods into the U.S. from another country without having been issued a permit by the U.S. Customs Service. Non-domestic importers must pay duties and taxes on imported products.
An advance payment is a deposit paid before the start of a project. It is nonrefundable unless there is a change in the scope of work or the client cancels the agreement.
Goods which cannot be returned to the seller. These include items sold under warranty, such as computers and appliances.
A bill of lading is a document that serves as proof of ownership of the goods being shipped. A voidable bill of lading allows the shipper to return the goods if the carrier fails to deliver them within the agreed upon time frame. However, a non-voidable bill of lading does not allow the shipper to return goods after the agreed upon time frame expires.
NAFTA (North America Free Trade Agreement) is a trade association established in 1994 with the participation of Canada, the USA, and Mexico and offers free trade opportunities among its members. NAFTA ended on July 1, 2020, and was replaced by the USMCA.
Its abbreviation of The National Customs Brokers and Forwarders Association of America
NEC is an abbreviation of "Not Elsewhere Classified," and NES is the short form of "Not Elsewhere Specified."
Negotiable documents can be transferred to a third party unless the phrase non-negotiable is added. For example, bills of lading used in sea transportation differ from other lading bills. Because the sea waybill is a negotiable document with the document's endorsement and the ownership of the goods changes, it is added to the terms of the letter of credit that the bills of lading are non-negotiable, especially in the letter of sale sales.
It is a certificate prepared for the protection of particular products from dumping.
An abbreviation for non-vessel operating common carrier behaves.
NVOCC is a cargo consolidator acting as a carrier by accepting legal carrier responsibilities even though it does not own a vehicle. It issues its bill of lading, called House B/L or House AWB.
Ocean freight, i.e., "sea freight," is the international transportation of goods by sea. Sea transport provides the transportation of heavy and dimensional cargoes that cannot be transported by air, with more advantageous freight costs than road transport. Sea transport, which includes transportation types such as container, bulk cargo, tanker, and ro-ro, provides full (FCL) or partial (LCL) transportation options.
Outbound freight includes the goods that companies will ship to their customers and the finished products they transfer to the distribution channel. Outbound freight consists of every stage in the distribution processes of final products, including storage and shipping. Outbound logistics aims to control and minimize transportation and storage costs.
An offer to purchase is a promise to buy something at a certain price. An offer to purchase may be accepted by the seller's signature on the offer.
Insurance coverage provided by the carrier while the goods are in transit.
An open account is a type of business transaction where the customer makes payments directly to the supplier rather than through a third party. Open accounts are often used in small businesses because they can save money on commissions and other costs associated with collecting payments.
Transportation over land. Overland transport includes railroads, trucks, ships, barges, pipelines, and air freight.
A statement on the bill of lading showing that the cargo has been loaded onto the ship. When necessary, the terms of the letter of credit must be stated on the bill of lading.
Statement on the bill of lading indicating that the cargo has been loaded onto the open deck.
The Onboard BOL is the receipt given by the carrier when the shipment has been physically loaded onto a container ship (for ocean freight) or airplane (for air freight).
Comparison of the carrier's net sales and costs. It is used to measure operational efficiency.
Order bill of lading is the bill that uses express words to make the bill negotiable. This means that delivery is to be made to the further order of the Consignee using words such as “delivery to A Ltd. or to order or assigns.
The place of origin where the goods begin to be transported.
Detection of sending more products than specified in the export documents.
In international shipments, a packing list or weight list is a document prepared to specify details such as the definitions of the products loaded on the transport vehicle, parcel, several containers, weight, and volume information. A packing list is a mandatory document in many countries' customs clearance stages.
In the shipping industry, parcel shipment refers to loading the goods of more than one company on the same transport vehicle to be transported to the same destination. Partial transportation brings the transportation cost to an economic level for both transportation companies, exporters, and importers. Partial shipment offers the advantage of fast and economical shipment, especially to small-scale trade companies and sometimes bigger companies that need partial transportation.
Port of destination (POD) is the port where a ship will be loaded or unloaded. It is also known as the port of call, port of discharge, and port of loading/discharge. The POD can be any port within the country or outside the country.
Port of shipment is the port where a ship docks to unload its cargo. It is also known as “the place of discharge” or “place of delivery”. The term “port of shipment” is used when the goods are shipped from one country to another, and it is usually the last point at which the goods leave the country before they reach their ultimate destination.
A power of attorney (POA) is a legal document used in shipping to grant a customs broker the authority to process Customs clearance on your behalf.
A signed POA is necessary in order to clear your goods through US Customs.
Your freight forwarder may offer brokerage services directly, or they may contract a brokerage service. You can also contact a broker through the Freightos.com marketplace.
Payment terms define when and how much the buyer pays for the goods. There are two types of payment terms: fixed and variable. Fixed payment terms are based on a set amount of time, such as 30 days. Variable payment terms are based on the value of the goods, such as per pound.
A PIR is an inspection report prepared by the carrier during transportation. This report details the condition of the goods at each stop along the way.
The location where the carrier picks up the shipment. For example, if you ship your package via UPS Ground service, the pickup location would be the UPS facility. If you ship your package via FedEx Express International, the pickup location would probably be the FedEx office.
The location where the consignee receives the shipment. In most cases, this is the address listed on the bill of lading. However, some shippers may use a different address, such as the post office box number.
A prepaid shipping label is a form of preprinted shipping label that has been paid for in advance. Prepaid labels are often used by businesses that want to send large quantities of items. They are available through many online retailers.
Pro forma invoice is a statement of account that shows what the seller owes the buyer. Pro forma invoices are created by sellers to show what the buyer owes them. These statements are not legally binding but are useful tools for buyers to compare prices between companies.
Proof of delivery is documentation showing that the carrier delivered the goods to the recipient. This includes copies of the original delivery receipt, tracking information, and any other documents provided by the carrier.
If you pay within 10 business days after receiving the merchandise, you can get a prompt payment discount. You will need to provide proof of purchase.
Property insurance protects against loss or damage to the contents of your shipment. Property insurance covers the cost of replacing lost or damaged goods.
Wooden transport platforms in standard sizes, stackable, and can be loaded and unloaded into containers by forklift.
The free trade agreement signed to develop bilateral trade between the United States and Panama.
Stackable parcels and packages made of cardboard, usually not exceeding 150 pounds/75kg, are used for courier and export shipments with containers.
In a business transaction, the party that makes the sale and receives payment for the product or service.
In a business transaction, the party that buys a product or service and pays for it.
The "Phytosanitary Certificate" shows that the exporter of plant and herbal products is free from diseases and harmful substances in the products to be exported. This certificate of conformity is issued by the Ministry of Agriculture in the USA.
Dock where cargo ships can load and unload.
The address where the freight forwarder will deliver the cargo to the final consignee. Final destination.
The address where the cargo is received by the carrier.
The place where the shipper receives the cargo from the shipper. The starting point of the shipment.
Abbreviation for "Port of Loading." The place where the container or cargo will load onto the ship.
Political risks directly affect business ventures and investment decisions. Moreover, the level of political risks affects the orientation of exporters, importers, and all suppliers forming the supply chain to commercial activities.
It's also called the harbor. It includes piers or docks.
Intermediate ports where cargo and container ships stop for cargo supply, repair, or transfer.
The first port where the ship will unload the cargo and enters the country.
The customs point where the cargo is loaded and exits the country.
Abbreviation of "Principal Party of Interest"
Prepayments made by the shipper before the carrier releases the bill of lading.
The main classification of export products is HTS codes. ECCNs (Export Control Classification Numbers) and USML (United States Munitions List) are other classifications.
A quarantine is a period during which a vessel is detained because of a disease outbreak or other health concerns. Quarantines may occur due to violations of various laws or issues such as disease outbreak.
Fixing imports with a specific rate and not allowing imports above this amount.
A proposal to sell a good under certain conditions and at a specific price.
In international trade, the receiver represents the buyer, i.e., the importer. The exporter is the sender, and the importer is the receiver. Products shipped overseas based on the trade between them are sent to a predetermined delivery point or the address of the importer. The receiver is the party responsible for receiving the goods at the delivery point.
Special equipment called Reefer Container or "Refrigerated Container" is used to ship products that need to be transported under particular temperature and humidity conditions. Generally, frozen food, fruit and vegetables, fish and meat products, medicines, and medical products are transported in this way. Reefer container not only has temperature control but also has features such as air circulation and air conditioning.
A set of factors within the formulas during freight pricing.
Abbreviation of "Request for proposal"
Abbreviation of "Request for Quotation".
The principle of being reasonable in transportation fees. According to the International Chamber of Commerce and legal regulations, the transportation fee should be at a level that will cover the traffic and transportation costs to the carrier and leave a reasonable profit to the carrier. A proposal to sell a good under certain conditions and at a specific price.
A received for shipment bill of lading may be issued to the shipper by the carrier or his agent for goods left with the carrier or agent at the load port prior to the arrival of the vessel. A received for shipment bill of lading may be on a specific form, but standard bill of lading forms are often used.
Container transport between transport vehicles owned by the same.
Money order. Money transfer between two accounts
Payment made to the carrier for the transport service.
Also called RoRo, they are the ships that transport motor vehicles and especially trailers between two ports.
Sea Way Bill is a type of digital bill of lading used in maritime transportation. It is arranged if the exporter or importer requests it from the shipping company before shipment. The main purpose of SWB is to prevent delays that may arise from transferring bills of lading by post and express courier, especially for shipments between ports at a close distance. The shipping company sends a digital SWB to its agency at the destination port so that the importer, the receiving company, can start the import process without wasting time.
A shipper is the consignor company that does the loading. As agreed by the parties, the company that sends by sea, land, air, or train also prepares the export documents and shares the necessary information with the shipping company to schedule the bill of lading. The shipper is the party responsible for the shipment. If the importer organizes the transportation by the incoterms agreed by the parties, the consignee undertakes the freight cost and the risks arising from the transportation. In every case, the shipper is the seller company that does the loading process.
The supply chain covers the entire process in which the product reaches the manufacturer, wholesaler, distributor, retailer, and consumer. In the scope of international trade, the supply chain refers to the shipment process that takes place between the exporter and the importer. In the global supply chain, steps such as transportation vehicles, warehouses, ports, and customs are followed.
Sales tax is a tax imposed on sales transactions. Sales taxes vary depending on the state and locality where the transaction occurs.
When you place an order, you create a shipment. A shipment consists of one or more items ordered. When you receive your shipment, you have received all the items listed on the invoice. You will pay the total amount due when you receive the shipment.
This fee is charged when you store the item(s) in warehouse. Storage fees vary according to the storage period and location.
Stowage means storing goods in containers.
A straight bill of lading is generally accepted to be one that makes the goods deliverable to a named consignee and either contains no words importing transferability or contains words negating transferability (such as "non-transferable").
One of the most distinguishing characteristics of a straight bill is that the consignee is identified when the bill is issued and cannot be altered later. As a result, approving the bill does not allow the shipper or consignee to transfer legal title and ownership of the goods to a third party.
An embargo sanction made by one government against another country.
It is an executive agency of the U.S. government established to support small businesses in the U.S.
An SBA-affiliated network of hundreds of offices set up to support small businesses across the U.S.
An SBA-affiliated network of hundreds of offices set up to support small businesses across the U.S.
Schedule B codes used for export outside the U.S. ensure that exporters comply with U.S. export regulations.
Schedule B codes used for export outside the U.S. ensure that exporters comply with U.S. export regulations.
Each year, the U.S. Office of Trade Representative (USTR) publishes a Special 301 Report designating certain nations as "Priority Foreign Countries" for having insufficient intellectual property protections or breaking trade agreements.
Equipment such as rigging or crane used to load or unload cargo on ships.
A document that outlines instructions for the freight forwarder is given by an exporting company to their freight forwarder.
Documentation that travels with a package as it gets to its destination, like packing lists or bills of lading.
A shipping quote is a document that shows the rates of a shipment and the incurable surcharges during transportation. In general, the document contain: the information regarding the point of pickup and delivery; the mode of transportation used; the details of cargo.
when the quantity listed on the shipping documentation is not met by the number of units received.
Wedges, serial-parallel skids, made to allow easy access to forklifts or other lifting equipment.
Abbreviation of Simplified Network Application Process—Redesign
Before the products are put aboard a ship for shipment, exporters must give a certified weight of the commodities under SOLAS.
The commercial process of evaluating potential suppliers to determine which will provide the most strategic advantage.
Positioning the container in such a way that it can be reloaded or unloaded as needed.
Starboard side of the ship. Opposite of port.
The back of the ship. Opposite the head.
Abbreviation for "Said to Contain." Abbreviation for packaging. A note placed on the bill of lading by the carrier for packed items.
Private companies and their workers that carry out loading and unloading operations in ports.
Unloading from a container.
Loading the container.
Abbreviation for "Said to Weight." The note placed on the bill of lading by the carrier that does not control the carrier's weight statement.
Over the tariff or extra payments
Additional tax.
Tariffs are the rates set by the government for the transportation of goods. They are based on the weight and size of the cargo. Tariffs are usually determined by the country's customs office.
Terms & Conditions (also known as Terms and Conditions) are written agreements between two parties. These include contracts, terms and conditions, and other legal documents. Terms & Conditions are often found in online shopping websites, mobile apps, and social media platforms.
A tracking number is a unique identifier assigned to each shipment. This number allows you to track the status of your shipment. Tracking numbers are available through the website of the shipping company or via email.
A Traffic Mitigation Fee (TMF) is a fee paid when a terminal becomes congested. It covers the added cost of workers forced to operate outside of normal hours to avoid delays and loss of business.
In 2005, a program called OffPeak was instituted by PierPASS to alleviate frequent delays at the Los Angeles and Long Beach terminals in California. Any shipment processed during peak hours at those terminals (M-F, 3 AM – 6 PM) now incurs a TMF to cover off-peak shifts (weeknights and Saturdays).
Transshipment refers to transferring cargo from one ship to another during an overseas shipment. The transfer process is usually done by loading the goods onto another vessel after they are unloaded at a port. The number of direct shipping services are less than the indirect services around the world in maritime shipment. However, sometimes buyer companies prefer letters of credit or sales contracts that contain a transshipment not allowed clause in order to reduce the risk of delays, damage, and loss of products on the way.
Transportation means the delivery of a product from one point to another. International transportation includes export and import shipments between two countries by seaway, truck shipment, airway, and railroad. Transportation covers all supply chain steps within the international trade, including inland shipments, transshipments, and overseas shipments. Its also known as carriage or shipping.
Terminal Charges or terminal Handling Charges refer to the expenses incurred due to the operations carried out at the port terminals during the containers' arrival, transfer, or export stages. During the transfer of containers or partial parcels, all transactions that must be carried out within the port and customs area are priced under the name of handling charges. For example, unloading, transporting and stacking. Sometimes a container or parcel needs to be moved inside the port or warehouse. THC covers these processes.
The rear side of the container or trailer. The opposite side of the nose or front.
The empty weight of the wagon or container in car or container transport.
An area allocated for the preparation of containers to be loaded on ships, trains, trucks, or planes or for immediate stowing of containers to be unloaded from these vehicles.
Abbreviation for "Twenty Foot Equivalent Unit." 20 Feet container.
3PL or third-party logistics, also known as outsourced logistics, refers to services provided indirectly by a company to companies that need assistance in logistics.
Trailer load
A container at the back side of a truck.
The weight of a shipment loaded on the truck.
The time from the arrival of a ship in port to its departure from the dock.
An ULD is a device that holds up to 50 kilograms of cargo. An ULD is used to load and unload heavy loads.
The time between a ship's arrival in port and its departure.
Cargo not requested, investigated, or received by the buyer.
The bilateral free trade agreement signed between the U.S. and Chile.
Bilateral free trade agreement signed between The U.S. and Colombia.
Bilateral free trade agreement signed between The U.S. and Colombia.
Bilateral free trade agreement signed between The U.S. and Korea.
The bilateral free trade agreement signed between the U.S. and Peru
Packages ready to move, loaded in pallets, crates, and loads.
Four-digit logistics code used to explain the dangerous goods.
North American free trade agreement established after NAFTA.
Abbreviation of The United States Munitions List
Abbreviation of The United States principal party of interest
Value Added Tax (VAT) is a value added tax applied at different levels of production. It is levied on products sold in Europe. VAT is not included in the price of most products. However, it can be included in the price if the buyer requests it.
Marine craft used for shipping and transportation
A document containing information about the passengers and cargo on board a ship
A traffic monitoring system used to track ships, working similarly to an air traffic control system.
Warehouses are stocking areas where production equipment such as raw materials, semi-finished products, spare parts, or finished products are stored. Shipment processes over warehouses are planned according to the supply chain flow. Warehouses can have different structures according to the product group and sector. Some warehouses consist of sensitive closed areas such as air circulation and temperature control. Within the scope of international trade, warehouses are bonded areas where cargoes are kept while export or import operations are in progress.
The waybill is a document that includes the details about the goods, freight routes, freight charges, and contact details of the seller and buyer company. Basically, it's prepared by the carrier and confirmed by the shipper, i.e., the exporter company. Air waybills and Sea Waybills are the common types of the waybill. A waybill is a shipping contract between a freight company and a shipper.
Insuring the losses that may occur in the goods in the event of any war.
A building placed on the edge of a harbor to make ship docking easier.
Wharfage is the fee charged by ocean carriers to cover the port authority’s cost of using a wharf to unload cargo from a vessel.
Wharfage is usually included in the base freight rate or the Terminal Handling Charge.
WCO has 184 members. The main task of the WCO is to simplify and harmonize customs regimes for international trade in goods.
The WTO is a multilateral trading system that determines international trade rules and includes the "Dispute Settlement Body," which can be described as a court.
Yardage is the distance covered by a vehicle or ship. Yardage is calculated by multiplying the speed with the time taken to cover a certain distance.
A zone is a specific geographical location. In logistics, zones are defined based on the type of business activity. Zones include:
