PAPS (Pre-Arrival Processing System)
An electronic system that allows U.S. Customs to review and pre-release shipments for import into the U.S.
Waybill (WB)
A document prepared by a transportation line at the point of a shipment; shows the point of the origin, destination, route, consignor, consignee, description of shipment and amount charged for the transportation service. A waybill is forwarded with the shipment or sent by mail to the agent at the transfer point or waybill destination. Unlike a bill of lading, a waybill is not a document of title.
Warehouse
A place for the reception and storage of cargoes.
Truckload
This may be as little as 5,000 pounds, or as much as 50,000 pounds. Charges differ from LTL charges, in that the carrier typically charges on a per-mile basis, with some minimum charge for deliveries under 500 miles. These charges vary significantly in different areas of the country based on the availability of loads in that area, at that point and time.
Through Rate
The total rate from the point of origin to final destination.
TEU
Twenty-foot Equivalent Unit (20″) .
Terminal
An assigned area in which containers are prepared for loading into a vessel or are stacked immediately after discharge from the vessel.
Tariff
A publication setting forth the charges, rates and rules of transportation companies.
Tare Weight
The weight of packing material or, in carload shipments, the weight of the empty freight car, or the weight of a container.
S.E.D. (Shipper’s Export Declaration or “Ex Dec”)
A U.S. Commerce Department document describing all goods exported from the U.S. The shipper of the goods is responsible to make sure the document is filled out correctly, even though it may be done as a service for them by a freight forwarder or an NVOCC. This official document must be submitted by a U.S. exporter whenever a shipment of merchandise goes from the U.S. to a foreign destination. The joint Bureau of Census-International Trade Administration issues this form used for compiling U.S. export control laws. In it the shipper shows the value, weight, consignee, destination, etc., of export shipments as well as the Schedule B identification number.
Schedule B
Refers to Schedule B, Statistical Classification of Domestic and Foreign Commodities Exported from the United States. A number assigned to each commodity being exported from the Harmonized Tariff.
Surcharge
An extra or additional charge.
Supply Air
Cooled or warmed air leaving the evaporator delivered to the interior of the container. Supply air is sometimes called delivery-air.
Stuffing
The loading of a container.
Stripping
The unloading of a container.
Straight Bill of Lading
A term for a non negotiable bill of lading.
Said to Contain (STC)
A standard clause used to protect carrier, NVOCC operators or forwarders when cargoes are stuffed into the container by shippers, their agents or other third parties. See also Shipper’s Load and Count.
Shipper’s Load and Count
Shipments loaded and sealed by shippers and not checked or verified by the carriers or forwarders. Neither the carriers nor the forwarders will assume any liability for shortages of cargoes as long as the container seal remains intact at the time of devanning.
Shipper
The person for whom the owners of a ship agree to carry goods to a specified destination and at a specified price. Also called “Consignor”. The conditions under which the transportation is effected are stipulated in the bill of lading.
Seal
A metal strip and lead fastener used for locking containers, freight cars or truck doors. Seals are numbered for record and security purposes.
Salvage Value
The value on which salvage is awarded. It generally means the value of ship and cargoes when they have been brought to a place of safety by the salvors.
Salvage Lien
A maritime lien which exists when a ship or goods come into the possession of one who preserves them from the perils at sea. All salvage services carry with them a maritime lien on the items saved.
Salvage Clause
A marine insurance policy clause which states the proportion of salvage charges for which underwriters are liable.
Salvage
The property which has been recovered from a wrecked vessel, or the recovery of the ship herself.
Reefer
In the industry, it is the generic name for a temperature-controlled container. The containers, which are insulated, are specially designed to allow temperature controlled air circulation within the container. A refrigeration plant is built into the rear of the container.
Power of Attorney
A method a company uses to assign authority to another company or person to perform a certain function on the behalf of the first company.
Port of Entry
At this port foreign goods are admitted into the receiving country. The Customs authority designated this point where goods are examined and go through clearance.
Payer
A party responsible for the payment as evidenced by the given instrument. Under letters of credit, the payer is the party on whom the draft is drawn, usually the drawee bank.
Payee
A party named as the beneficiary of funds. Under letters of credit, the payee is either the drawer of the draft or a bank.
Pallet
A flat metal or wood bottom for cargo.
Packing List
Itemized list of commodities with marks/numbers but no cost values indicated.
Pallet
A platform (usually two-deck), with or without sides, on which a number of packages or pieces may be loaded to facilitate handling by a lift-truck.
Packing List
A document provided by the shipper detailing the packaging of the goods, including their weight and measurement, and assortment, etc.
PIP (Partners in Protection)
A CCRA initiative designed to enlist the cooperation of private industry in efforts to enhance border security and increase awareness of customs compliance issues.
PARS/INPARS (Pre-Arrival Review System)
Available both at the border and inland (INPARS). An electronic system that allows CCRA to review and pre-release shipments for import into Canada.
O.B.L. (Ocean Bill of Lading or Original Bill of Lading)
Document that indicates that the exporter will consign a shipment to an international carrier for transportation to a specified foreign market and defines the terms of the contract of carriage. It serves as a collection document. If it is a straight B/L, the foreign buyer can obtain the shipment from the carrier by simply showing proof of identity. If a negotiable B/L is used, the buyer must first pay for the goods, post a bond, surrender the original B/L, or meet other conditions agreed upon by the seller.
Overheight Cargo
Cargoes which exceed 9-1/2 ft. in height. They have to be stowed normally in an open-top container.
Outbound
Outward bound. Direction of vessel or cargo going out from port of loading or point/place of receipt.
N.M.F.C. (National Motor Freight Classification)
A listing of items used to determine the “class” of a particular item shipped. The class of the item along with the weight and distance traveled, is a determinator of the freight charge.
Net Weight (Actual Net Weight)
Weight of the goods alone without any immediate wrappings; e.g., the weight of the contents of a tin can excluding the can’s weight.
Non-vessel Owning / Operating Common Carrier (N.V.O.C.C.)
(a) A cargo consolidator of small shipments in ocean trade, generally soliciting business and arranging for or performing containerization functions at the port. (b) A carrier issuing bill of lading for carriage of goods on vessel which he neither owns nor operates.
NVOCC
Non-Vessel Operating Common Carrier. Cargo consolidator of small shipments in ocean trade into containers at the port.
NAFTA (North American Free Trade Agreement )
The joint Canada, Mexico and United States treaty to reduce tariffs and trade barriers to promote cross-border economic activity.
Minimum Charge
The lowest charge that can be assessed to transport a shipment.
Measurement Ton
1 cubic metre. One of the alternative bases of Freight Tariff.
Maximum Rate
The highest freight rate permitted by a regulatory body to apply between points.
Maximum Payload
Maximum cargo that can be loaded into a container either by weight or volume.
Maritime
Business pertaining to commerce or navigation transacted upon the sea or in seaports in such matters as the court of admiralty has jurisdiction over.
Marine Insurance
Broadly, insurance covering loss or damage of goods at sea. Marine insurance typically compensates the owner of merchandise for losses sustained from fire, shipwreck, piracy and various other causes but excludes losses that can be legally recovered.
Maquiladoras (ma
Duty-free (for U. S. import) manufacturing plants located in Mexico.
Manifest
A document that lists in detail all the bills of lading issued by a vessel or its agent or master, i.e., a detailed summary of the total cargoes or containers loaded in a vessel. Used principally for customs purposes. It is also called summary of Bills of Lading.
LTL (Less than truckload)
This term typically refers to shipments of 150 – 10,000 pounds, not requiring the full use of a trailor.
LCL (Less than Container Load)
The quantity of freight less than that required for the application of a container load rate. Loose Freight.
Locking Bar
Device that secures container doors at top and bottom.
Load Factor
Percent of loaded containers against total capacity of vessel or allocation.
Letter of Indemnity
Guarantee from the shipper or consignee to indemnify carriers or forwarders for costs and/or loss, if any, in order to obtain favourable action by carriers or forwarders. It is customary practice for carries and forwarders to demand letters of indemnity from consignees for taking delivery of cargoes without surrendering bill of lading which has been delayed or is lost.
Invoice
Documentation supplying Customs with the type of goods, quantity, price of each type and terms of sale. The type of invoice required is determined by the shipment’s value.
International Organization for Standardization (ISO)
ISO is a worldwide federation of national standards bodies from some 130 countries, one from each country. It is a non-governmental organization established in 1947 to promote the development of standardization facilitating international trade. ISO’s work results in international agreements which are published as International Standards.
Intermodal Transport
Moving ocean freight containers by various transportation modes. The fact that the containers are of the same size and have common handling characteristics permits them to be transferred from truck to railroad to air carrier to ocean carrier.
Intermodal
Pertaining to transportation involving more than one form of carrier: truck, ship and rail.
Incoterms
Incoterms are a set of uniform rules codifying the interpretation of trade terms defining the rights and obligation of both buyer and seller in an international transaction, thereby enabling an otherwise complex basis for a sale contract to be accomplished in three letters. Incoterms are drafted by the International Chamber of Commerce.
Inbound
Inward bound. Direction of vessel or cargo going to port of discharge or final destination.
In Transit
In passage from one place to another.
In Bond
A term, which indicates that an imported shipment was not cleared by Customs at the border, and is moving under a surety bond.
Import Permit
Usually required for items that might affect the public health, morals, animal life, vegetation, etc. Examples include foodstuffs, feedstuffs, pharmaceuticals (human and veterinary), medical equipment, seeds, plants and various written material (including tapes, cassettes, movies, TV tapes or TV movies). In some countries an import permit is the same as an import licence.
Import Licence
A document required and issued by some national governments authorizing the importation of goods into their individual countries.
Import
To bring in goods from a foreign country.
Harmonized Commodity Description and Coding System
A multi-purpose international goods-classification for manufacturers. Transporters, exporters, importers, customs officials, statisticians, and others in classifying goods moving in international trade under a single commodity code. Developed under the auspices of the Customs Cooperations Council (CCC), an international customs organization in Brussels, this code is a hierarchically structured product nomenclature containing approximately 5,000 headings and subheadings describing the articles moving in international trade. It is organized into 99 chapters arranged in 22 sections. Sections encompass an industry [ (e.g., Section XI, Textiles and Textile Articles); chapters encompass the various materials and products of the industry (e.g.: Chapter 50, Silk; Chapter 55, Manmade Staple Fibres; Chapter 57, Carpets).] The basic code contains four-digit headings and six-digit subheadings. (The U.S. will add digits for tariff and statistical purposes. In the U.S., duty rates will be the 8-digit level; statistical suffixes will be at the 10-digit level.
General Tariff
A tariff that applies to countries that do not enjoy either preferential or most-favored-nation tariff treatment. When the general tariff rate differs from the most-favored-nation rate, the general rate is usually the higher rate.
Gross Weight
Entire weight of goods, packaging and container, ready for shipment.
Gross Tonnage
Applies to vessels, not to cargo. Determined by dividing by 100 the contents, in cubic feet, of the vessel’s closed-in spaces. A vessel ton is 100 cubic feet.
Gooseneck
The front rails of the chassis that raise above the plane of the chassis and engage in the tunnel of a container.
Genset (Generator Set)
A portable power generator, which converts fuel into electrical power by mechanical means, and from which a reefer draws power. A clip-on generator set is mounted to the front of the refrigeration unit. An underslung generator set is mounted to the chassis upon which the reefer is mounted for handling and transport. The underslung generator set can be either side-mounted or center-mounted on the chassis.
Freight Forwarder
A freight forwarder combines less-than-truckload (LTL) or less-than-carload (LCL) shipments into carload or truckload lots. Freight forwarders are designated as common carriers. They also issue bills of lading and accept responsibility for cargo. The term may also refer to the company that fills railroad trains with trailers.
F.O.B. Destination
“F.O.B. Destination” changes the location where title and risk pass. Under this arrangement, title and risk remain with the seller until they have delivered the freight to the delivery location specified in the contract.
F.O.B Origin
“F.O.B. Origin” means that title and risk pass to the buyer at the moment of the seller’s delivery to the carrier. The parties may agree to have title and risk pass at a different time or to allocate freight charges by a written agreement.
Free On Board (FOB)
An acronym for “free on board” when used in a sales contract. The seller agrees to deliver merchandise, free of all transportation expense, to the place specified by the contract. Once delivery is complete, the title to all the goods and the risk of damage become the buyer’s.
Free Along Side (FAS)
A basis of pricing meaning the price of goods alongside a transport vessel at a specified location. The buyer is responsible for loading the goods onto the transport vessel and paying all the cost of shipping beyond that location.
FOB
Free On Board. It is an INCOTERMS term of sale where the seller of the cargoes are responsible for all charges of the transportation of the cargoes all the way up to their arrival on board the ship. It includes all charges of carriers or forwarders levied at the port of loading.
FIO
Free In and Out. It is a term used in ship-chartering whereby the owner of the ship is not responsible for any charges incurred in the ports of loading or unloading.
FEU
Forty foot (40’) Equivalent Unit. Commonly describes a 40- foot container.
FCL
Full Container Load. It is an arrangement whereby the shipper packs cargoes into a container provided by the carrier or the forwarder before delivering to the container terminal.
FAST (Free and Secure Trade)
A joint Canada/US border security agreement, of which C-TPAT and PIP are the main initiatives.
FAK
Freight All Kind. A system whereby freight is charged per container, irrespective of the nature of the cargoes, and not according to a Tariff. FAS Free Alongside Ship. An INCOTERMS term of sale in which the buyer is responsible for all charges of the transportation of the cargoes after they arrive at the side of the ship. It is not a commonly-used term of sale in international trade today.
FAF
Fuel Adjustment Factor. An ancillary charge on ocean freight shipments to account for fluctuations in fuel costs.
Free Trade Zone
A country’s government designates this area, where any non-prohibited merchandise may enter duty-free. In this zone goods may be used in manufacturing, put on display, warehoused, etc., and re-exportation is also duty-free if the merchandise should pass from the zone into another area of the country.
Force Majeure
The title of a standard clause in marine contract that relieves the parties for responsibility upon non-fulfillment of their obligations resulting from conditions beyond their control (such as earthquakes, floods, or war).
Export Declaration
A government document permitting designated goods to be shipped out of the country.
Export
Shipment of goods to another country.
Exchange Rate
The ratio of prices at which the currencies of nations are exchanged at a particular time.
Ex Works
An INCOTERMS term of sale in which the buyer is responsible for taking delivery of the goods at the premises of the factory. Also known as “F.C.A.”
ETD
Estimated time of departure of carriers.
ETA
Estimated time of arrival of carriers.
En route
Along the route of movement.
Dim Weight (Dimensional Weight or Volume Weight)
Freight charges calculated by the cubic dimension (total cubic inches). This measurement, along with the weight of the pieces shipped, is typically used by airfreight carriers to determine their freight charges.
Dry Cargo
Cargo that does not require temperature control.
Drayage
Charge made for local hauling by dray or truck; road transportation between the nearest Ocean Port or Railway terminal and the stuffing/destuffing place.
Door-to-Door
Through transportation of a container and its cargoes from consignor’s premises to consignee’s premises.
Differential Rate
An amount added or deducted from base rate to make a rate to or from some other point or via another route.
Devanning
The removal of cargo from a container. Also known as unstuffing, unloading or stripping.
Detention Charge
See “Detention”.
Detention (Demurrage)
Charges raised by the carrier or the forwarder for detaining container/trailer at customer premises for a period longer than that provided in the Tariff of the carrier or the forwarder.
Destination Delivery Charge (DDC)
A charge assessed by the carrier for the handling of a full container at destinations. The term is more commonly used in the U.S.A. trade.
Destination
The place where the carrier or the forwarder actually turns over the cargo or container to consignee or his agent. It may also be termed “Final Destination”.
Demurrage
Detention of a freight vehicle or container beyond a stipulated time.
Delivery Order
A document authorizing delivery to a nominated party of cargoes in the care of a third party. The document is issued by a carrier or a forwarder on surrender of a bill of lading and then used by the merchant to transfer title by endorsement.
Dangerous Goods
The term used by I.M.C.O. for hazardous materials which are capable of posing a significant risk to health, safety or property while being transported.
Cube
A measure of volume expressed in cubic feet.
Consolidator
A person or firm performing a consolidation service of small lots of cargoes for shippers.
Consolidation
The combination of many small shipments into one container.
Consolidated Cargo
Cargo containing shipments of two or more shippers, usually shipped by a firm called a consolidator. The consolidator takes advantage of lower FCL rates, and savings are passed on to shippers.
Cargo Manifest
A manifest that lists only cargoes, without freight and charges.
C-TPAT (Customs-Trade Partnership Against Terrorism)
A joint government and trade community initiative in developing, enhancing and maintaining effective security processes throughout the global supply chain.
CIF
Cost, Insurance and Freight. A term of trading in which the buyer of the goods pay for the cost of the goods, the cost of transporting the goods from origin to the port of discharge or final destination and the insurance premium for a maritime insurance policy for the value of the order.
CFS
Container Freight Station. A carrier facility where Less Than Container load shipments are consolidated or unloaded.
CFR
A pricing term indication that the cost of the goods and freight charges are included in the quoted price.
Customs Invoice
A form requiring all data in a commercial invoice along with a certificate of value and/or a certificate of origin. Required in a few countries (usually former British territories) and usually serves as a seller’s commercial invoice.
Customs
The authorities designated to collect duties on imports and exports that are levied by a country (also applying to the procedures involved in such collection). They are responsible for ensuring that no illegal importation takes place.
Container
A truck trailer body that can be detached from the chassis for loading into a vessel or a rail car or stacked in a container depot. Containers may be ventilated, insulated, refrigerated, flat rack, vehicle rack, open top, high cube, bulk liquid, or equipped with interior devices. A container may be 20 feet, 40 feet, 45 feet, 48 feet, or 53 feet in length; 8’0″ or 8’6″ in width; and 8’6″ or 9’6″ in height.
Consignor
The person or company shown as the shipper on the bill of lading.
Consignment
Goods in transit under a bill of lading; the delivery of merchandise from an exporter (the consignor) to an agent (the consignee) under agreement that the agent sell the merchandise for the exporter
Consignee
The person or company (named in the bill of lading) to whom commodities are shipped. The owner of the cargo.
Commodity
Article shipped. For dangerous and hazardous cargo, the correct commodity identification is crucial.
Commercial Invoice
Represents a complete record of the transaction between exporter and importer with regard to the goods sold. Also reports the content of the shipment and serves as the basis for all other documents concerning the shipment.
Clean Bill of Lading
A receipt for goods issued by a carrier with an indication that the goods were received in “apparent good order and condition” without damage or other irregularities.
Classification Rating
The designation provided in a classification by which a class rate is determined.
Classification
A publication, such as The Uniform Freight Classification (railroad) or the National Motor Freight Classification (motor carrier), that assigns ratings to various articles and provides bill of lading descriptions and rules.
Claim
A demand for payment made upon a transportation line due to loss sustained through its alleged negligence.
Chassis
A wheeled flat-bed constructed to accommodate containers moved over the road. Also termed as “Trailers”.
Certificate of Origin
A document certifying in which country the goods were produced. Used in international commerce.
Carrier
Any person or entity who, in a contract of carriage, undertakes to perform or to procure the performance of carriage by rail, road, sea, air, inland waterway, or by a combination of such modes.
Bulk Carriers
A vessel carrying dry, liquid, grain, not packaged, bundled or bottled cargo, and is loaded without marks and number or count.
Broker
An individual, partnership or corporation which arranges transportation service for client companies.
Bonded Warehouses
This facility is authorized by Customs authorities for storage or processing of goods. No Customs duties are incurred until the goods are removed.
Bonded Carrier
A carrier licensed by U.S. Customs to carry Customs-controlled merchandise between Customs points. Old Dominion is a bonded carrier.
B/L (Bill of Lading)
A document which acknowledges receipt of the goods and establishes the terms of a contract between a shipper and transportation company. It signifies which freight is to be moved between specified points for a specified charge. As the most fundamental document in goods transportation, it serves as a document of title, a contract of carriage, and a receipt for goods. It is prepared by the shipper on forms issued by the carrier. It is a legal document.
Bill of Sale
This document is a confirmation of the transfer of ownership of certain goods to another person (i.e., in return for money paid or loaned).
Air Waybill
A bill of lading that covers both domestic and international flights transporting goods to a specified destination. This is non-negotiable and serves as a receipt for the shipper, indicating that the carrier has accepted the goods listed and obligating it to carry the consignment to the airport of destination according to specified conditions.
Arrival Notice
An advice that the carrier or forwarder sends to the consignee advising of goods coming forward for delivery. Pertinent information such as bill of lading number, container number and total charges due from consignee etc, are included and sent to consignee prior to vessel arrival. This is done gratuitously by the carrier or forwarder to ensure smooth delivery but there is no obligation by the carrier or the forwarder to do so. The responsibility to monitor the transit and present himself to take timely delivery still rests with the consignee.
Actual Gross Weight
The full weight of a shipment, including goods and packaging.
Accessorial Fees
Charges for service beyond standard transportation pricing. Such fees would include special pickup or delivery on domestic shipments, and documentation and communication fees for international shipments.
Client Login
Access our Capital Works
& TR Plus systems.
