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GLOSSARY OFTERMS ANDABBREVIATIONS1 Magellan Logistics 2015 - www.magellanlogistics.com.au
GLOSSARY OF TERMS AND ABBREVIATIONSNUMERICAL20’Standard Twenty Foot Long Shipping Container.40’Standard Forty Foot Long Shipping Container.20’HCTwenty Foot High Cube Container.40’HCForty Foot High Cube Container.20’GOHTwenty Foot Goods on Hanger Container.40’GOHForty Foot Goods on Hanger Container.20’RFTwenty Foot Reefer Container.40’RFForty Foot Reefer Container.20’NORTwenty Foot Non Operating Reefer Container.AACAAir Cargo Automation is an electronic reportingsystem set up by Australian Customs to reporton cargo prior to arrival in Australia.Ad Valorem“According to the value” or “on the value”.Rates of duty expressed as a percentage of thevalue of goods are known as “ad valorem rates”.1AgentA person authorized to transact business forand in the name of another person or company.AllotmentA term used to describe blocked spaceby airlines and shipping lines on behalf offorwarders/shippers.AWBAirway Bill – is a bill of lading which covers bothdomestic and international flights transportinggoods to a specified destination. Technically itis a non-negotiable instrument of air transportwhich serves as a receipt for the shipper,indicating that the carrier has accepted thegoods listed therein and obligates itself to carrythe consignment to the airport of destinationaccording to specified conditions.APCAAustralian Port Charge Additional.AQISAustralian Quarantine Inspection Service. Agovernment body protecting Australia fromcontaminated fauna and flora.ArbitraryAn additional rate charged over an alreadyfixed rate, when freight has to be moved by anadditional source of transport from one point, toget to another point.BBAFBunker Adjustment Factor. Adjusts the freightto reflect current cost of bunkers (fuel for ships). Magellan Logistics 2015 - www.magellanlogistics.com.au
GLOSSARY OF TERMS AND ABBREVIATIONSBCN (FCX)Buyers Consolidation. Full container shipmentsfrom multiple suppliers for the one consignee.B/L , BOLBill of Lading – acts as a receipt for the cargo andcontains the terms of the contract of carriageand is a document of title to the goods.Bonded WarehouseA place of security approved by the customauthorities for the deposit, keeping and securingof goods liable to excise duty, without paymentof this duty.BoxA colloquial name for a shipping container.Break Bulk (Seafreight)Goods shipped loose in a vessel’s hold and notin containers.Break Bulk (Airfreight)For consolidated air freight, it is moved underone MAWB and each consignment designatedto specific consignee or recipient is under onHAWB. When the freight forwarder receivesthe consolidated cargo from the carrier theywill break the consolation apart per HAWB thenproceed with the customs clearance along withassociated shipping and import documents.CCBMCubic Meter – calculated as length x width xheight.Certificate of OriginA document certifying the country of origin ofgoods which is issued or signed by a chamberof commerce or embassy.CFR/C&FCost and freight. An Incoterm where the sellerincludes the cost of transportation in the pricefor his goods (freight prepaid). Formally knownas C&F.CFSContainer Freight Station – a place for thepacking and unpacking of LCL consignments.CHIEFCustoms handling of Import and Export Freight– a customs computer system.CIFCost, Insurance and freight.An Incotermwhere the seller arranges and pays for the maincarriage to the port of destination and organizesthe insurance cover for the cargo while in transit.CAFCurrent adjustment factor – adjusts the freightto reflect currency exchange fluctuations.CMIComite maritime International – an internationalcommittee of maritime lawyers.CABAFCurrency and Bunker adjustment factor, acombination of CAF and BAF.Commercial InvoiceRepresents a complete record of a transactionbetween exporter and importer with regard tothe goods sold. Also reports the content of theshipment and serves as the basis for all otherdocuments about the shipment.CANCustoms Authority Number. Number providedby customs upon the clearance of export goods.2CarnetA customs document for permitting the holderto carry or send merchandise temporarilyinto certain foreign countries for display,demonstration or other purposes without payingimport duties or posting bonds. Magellan Logistics 2015 - www.magellanlogistics.com.au
GLOSSARY OF TERMS AND ABBREVIATIONSCOUClip on unit – a portable refrigeration unit.ConsignmentDelivery or merchandise from an exporter (theconsignor) to an agent (the consignee) underagreement that the agent sell the merchandisefor the account of the exporter. The consignorretains title to the goods until sold. Theconsignee sells the goods for commission andremits the net proceeds to the consignor.ConsolidationIn order to handle small lots of consignmentsefficiently and competitively, freight forwardersusually put many consignments into one lot thentender to carrier for forwarding. In this case,each consignment will be shipped with onehouse bill of lading respectively and all of themwill be under one master bill of lading.CRNCustoms Register Number – is the numberallocated by customs to an export, agent orfreight forwarder for use when exporting goodson the same shipment from more than oneshipper.Consignee (CNEE)The party, to whom a consignment is dispatched,having legal title to the goods.Consignor (CNOR)The sender of the goods.Consignment NoteA document that describes a consignmentmoving from one point to another, also knownas advice or dispatch note or connote.CODCash on Delivery – full payment for goods ondelivery.DCTCombined Transport – carriage buy more thanone mode of transport under one contract ofcarriage.DAPDelivered at Place - an Incoterm meaning thatthe seller is responsible for arranging carriageand for delivering the goods, ready for unloadingfrom the arriving conveyance, at the namedplace. (An important difference from DeliveredAt Terminal DAT, where the seller is responsiblefor unloading.)CYContainer Yard – a collection and distributionpoint for FCL Containers.Risk transfers from seller to buyer when thegoods are available for unloading; so unloadingis at the buyer’s risk.ConferenceAn organisation of a group of shipping linesoperating in one trade who have agreed tooperate a common tariff.The buyer is responsible for import clearanceand any applicable local taxes or import duties.ConsortiumA group of ‘Combined Transport’ operators whoagree to rationalize sailing in a trade and carryeach other’s cargo.3Cut Off DateThe last date for which goods can be acceptedfor a nominated sailing.DATDelivered at Terminal - an Incoterm meaning thatthe seller is responsible for arranging carriageand delivering the goods, unloaded from thearriving conveyance, at the named place. Magellan Logistics 2015 - www.magellanlogistics.com.au
GLOSSARY OF TERMS AND ABBREVIATIONSRisk transfers from seller to buyer when thegoods have been unloaded.The buyer is responsible for import clearanceand any applicable local taxes or import duties.DemurrageA charge raised for detaining cargo, containersor trailers for a longer period than provided forin the tariff.DDPDelivery Duty Paid – an Incoterm meaning theseller fulfils his obligation to deliver when thegoods have been made available at the namedplace in the country of importation. The sellerhas to bear the risks and costs, including duties,taxes and other charges of delivering the goodsthereto, cleared for importation.Deconsolidation PointPlace where loose cargo is ungrouped fordelivery.DOA document given to the party surrendering theoriginal Bill of Lading authorizing them to takedelivery of the goods.Documentary CreditThe basis of international trade by means ofwhich payment is made against surrender ofspecified documents.DutyIs a particular percentage (depending oncommodity) of the FOB value which is paid tothe government. The FOB value is the cost ofthe goods plus any other charges to get thosegoods onto a vessel.DOTDepartment of Trade – governmental departmentwith responsibility for shipping and trade.4DrawbackRepayment of a duty upon re-exportation ofgoods previously dging the condition of the carrier’sequipment when taking over and returning it,incorporating contractual terms under which theequipment is taken over.ETAEstimated Time of Arrival – indicates theestimation of the date/hour the carrier believesthe cargo, vessel or container will arrive at anominated point/port.ETDEstimated Time of Departure – indicates theestimation of the date/hour the carrier believesthe cargo, vessel or container will leave anominated point/port.Ex-Works (EXW)An Incoterm when the sellers only responsibilityis to make the goods available at his premisefor pickup.FFASFree Alongside Ship - an Incoterm that meansthe seller fulfils his obligation to deliver when hehas handed over the goods, cleared for export,into the charge of the carrier named by the buyerat the named place or point.FAKFreight All Kinds – refers to the full container loadsof mixed shipments for different consignees. Magellan Logistics 2015 - www.magellanlogistics.com.au
GLOSSARY OF TERMS AND ABBREVIATIONSFCLFull Container Load – an arrangement wherebythe shipper utilizes all the space in a container.GRPGroupage - refers to the full container loads ofmixed shipments for different consignees.FCX (BCN)Full container shipments from multiple suppliersfor the one consignee.GOHGarments On Hanger container used to transportgarments and other hanging product. Availablein 20’ and 40’ sizes.Feeder VesselA short-sea vessel used to fetch and carrygoods and containers to and from deep-seaports/vessels.FISFree Into Store – An unofficial term that meansthe seller is responsible for all costs – CIF/C&Fplus Customs Duty, Landing costs and alltransport charges delivered into buyers store.Flat RackContainer bottom specifically for heavy lifts andover width cargoes.FMCFederal Maritime Commission – US FederalAuthority governing sea transport.FOBFree On Board – An Incoterm where the seller isresponsible for all costs up to loading the shipat named port.GPGeneral Purpose – a closed steel container forthe carriage of all types of general. 20’ and 40’available in GP.GSTGoods and Service Tax – worked out as 10% ifthe CIF Value the duty amount. The CIF valueis the cost of goods marine insurance freightamount (cost to get cargo to destination port) duty.HFreightThe amount of money payable for the carriageof goods.Harmonised SystemThe Harmonized Commodity Description andCoding System (or Harmonized System, HS) isa system for classifying goods in internationaltrade, developed under the auspices of theCustoms Cooperation Council.GHazchem CodeHazardous chemical code placed on tankerscarrying dangerous chemicals.GATTGeneral Agreements on Tariffs and Trade – aninternational multilateral agreement embodyinga code of practice for fair-trading in internationalcommerce with headquarters in Geneva.5GroupageConsolidation of several LCL Consignmentsinto a container for difference consignees.HC - Hi-CubeIs a container which is higher than a GeneralPurpose Container – Available in both 20’ and40’ size and is most common on the AustralianCoastal and Australia-New Zealand TradeLanes. Magellan Logistics 2015 - www.magellanlogistics.com.au
GLOSSARY OF TERMS AND ABBREVIATIONSHBL - House Bill of LadingIssued by a freight forwarder or consolidatorcovering a single shipment containing thenames, addresses and specific description ofthe goods shipped.Import LicenseA document required and issued by somenational governments authorizing the importationof goods. Also referred as an import permit.With such documentation, customs clearancecan be conducted.HAWB – House Airway BillIssued by a freight forwarder – although similarto a Bill of Lading it does not confer title ingoods and therefore does not have the samelegal standing as Bill of Lading.IncotermsA list of standard terms stated by the ICC for allforeign trade contracts, which lists the respectiveresponsibilities of the buyer and seller.IIntermodalMovement of goods by more than one mode oftransport ie. aeroplane, truck, railroad and ship.IATAInternational Air Transport Association (IATA)established in 1945 is a trade association servingairlines, passengers, shippers, travel agents andgovernments. The association promotes safetystandardization in forms (baggage checks,tickets, weigh bills) and aids in establishinginternational airfares.Insulated ContainerSpecifically for cargoes requiring transport at aconstant temperature above or below freezingpoint. This is controlled by the ships or terminalscooling plant or a clip on reefer unit.IMDG CodeInternational Maritime Dangerous Goods Code– contains the IMO Recommendations for thecarriage of dangerous goods by sea. The formneeded for export of this sort of cargo is knownas an M041 and is available from a freightforwarder. Paperwork for imported dangerousgoods comes from the supplier.ISOInternational Standards Organisation – a bodyresponsible for setting standards for containerconstruction.IMOInternational Maritime Organisation – a UN bodycharges with the duty of making safety and antipollution conventions and recommendationsconcerning sea transport.Import CertificateThe import certificate is a means by whichthe government of the country of ultimatedestination exercises legal control over theinternal channeling of the commodities coveredby the import certificate.6ICCInternational Chamber of Commerce.ITF/IDFAir Cargo Charges – International Terminal Fee,International Documentation Fee.LLetter of Credit (L/C)Letter of Credit – a document in which the termsof documentary credit transactions are set out.LD3Lower deck type airline container. This is themost commonly used container in passengeraircraft. Magellan Logistics 2015 - www.magellanlogistics.com.au
GLOSSARY OF TERMS AND ABBREVIATIONSNLetter of Indemnity (L/I)Letter of Indemnity – sometimes also called aletter of guarantee, if an original bill of lading hasbecome lost or delayed it allows the consigneeto take delivery of his goods.LinerA vessel plying a regular pattern of trade on adefined route under a published sailing schedule.NVOCCNon Vessel Operating Common Carrier – acarrier issuing bills of lading for carriage ofgoods on a vessel which they neither own noroperate.Lower DeckThe compartment below the Main Deck of anaircraft.Notify PartyThe party to whom the cargo arrival notice issent.LO/LOLift On Lift Off – a wharf or cartage operatorcharge for lifting of containers on and off avessel or vehicle.NORNon-operating reefer container.LCLLess than Container Load – when a parcel istoo small to fill a container, it is grouped by thecarrier at a CFS depot with other compatiblecargo for the same destination.MOOBLOcean Bill of Lading issued by the shipping line/owners.O/HOver Height – a container with cargo exceedingthe height of the container.MAWBMaster Airway Bill – is the Airway Bill issued bythe airline or principle carrier.O/SOpen Sided – A container with open sides forover width cargo.MBLMaster Bill of Lading is the Bill of Lading issuedby the shipping line or principle carrier.O/TOpen Top – A container with open top loadingfacility, suitable for the carriage of heavy, overheight cargos. Can be equipped with tarpaulinroof.MMOMulti Modal Operator.ManifestList of goods on a vessel or aircraft.7Non ConferenceA shipping line which does not participate in aconsortium with other lines for tariff agreement.OOGOut of gauge – goods whose dimensions exceedthose of the container in which they are packed. Magellan Logistics 2015 - www.magellanlogistics.com.au
GLOSSARY OF TERMS AND ABBREVIATIONSO/WOver Width – a container with goods protrudingbeyond the sides of the container / flat rack ontowhich they are packed.PPacking ListDocument required by the buyer and Customs,indicating content being shipped, or contents ofeach packed.Packing DeclarationDocument required by AQIS which states howthe shipment as been packed with regards tostraw, timber, and bark. The packing declarationmust be completed in full including a numericallink to the shipment (eg. Container number, billnumber).POAPlace of Acceptance – the place where thegoods are received for shipment of transit andwhere the carriers liability commences.PODDefinition 1 - Place of Discharge – the placewhere the goods are discharged and carrier’sliability ends.Definition 2 - Proof of Delivery – a signed receiptacknowledging delivery.POLPort of Loading – the port at which acceptedcargo is loaded onto a vessel.Principle CarrierThe carrier who issues the Bill of Ladingregardless of whether or not the goods arecarried on their own, a third party’s or aconsortium members vessel.8PSCPort Service Charge. Cost of loading, unloadingFCL consignments at the terminal.RRO/RORoll on Roll Off – A vessel onto which goods canbe driven via a ramp.Routing OrderA document given to a supplier for instructionas to which freight forwarding company will behandling the details of the shipment.ReeferA refrigerated container used for cargo requiringtemperature control.SSCASea Cargo Automation is an electronic reportingsystem set up by Australian Customs to reporton cargo prior to arrival in Australia.SOBShipped on Board – an endorsement on the billof lading confirming that the goods have beenloaded on board.ShipperThe person who tenders the goods for carriage.Shipping MarkThe letters, numbers or other symbols placed onthe outside of cargo to facilitate identification. Magellan Logistics 2015 - www.magellanlogistics.com.au
GLOSSARY OF TERMS AND ABBREVIATIONSShort ShippedGoods not carried on the intended vessel.SLIShippers Letter of Instruction – ForwardingInstructions completed by shippers to freightforwarders instructing them on the completionof HAWB or HBL.SlotThe space on board a vessel occupied by acontainer.TTACTThe Air Cargo Tariff.Published by IAP(InternationalAirlinesPublications)andIATA company. Outlinesgeneral rtation charges, services and relatedcharges, payment of rates and charges andvarious other items. Airfreight Hazardous cargowill always travel on the “TACT” rate.Time SlotThe time booked to deliver a container or collecta container from the wharf.TEUTwenty Foot Equivalent Unit (20’).THCTerminal Handling Charge – A charge forhandling containers at ocean terminal/wharves. Also charge for handling LCL cargo atdeconsolidation depots.Tare WeightThe actual weight of the empty container, notincluding the goods.9TariffThe terms, condition and scale of charges forcarriage.TransshipWhen cargo is discharged from one ship andloaded onto another in order to reach a port ofno direct service or as a cheaper alternative tothe direct service.UULDUnit load device which links directly with theairplane cargo handling and restraint system.VVentContainer which contains ventilations sites toprevent condensation accumulating on cargo.WWaybillA Bill of Lading that acts as a receipt forthe goods and evidence of the contract forcarriage. A waybill is a bill of lading that andcan be defined as follows: a receipt for goods,is evidence of the contract; is a non-negotiabledocument.Under a waybill, delivery will be effected to anominated consignee upon proof of identity. Asa title it presents a personal contract betweenthe shipper and the carrier only. There is (atpresent) no mandatory law or convention andthe parties have absolute freedom of contract Magellan Logistics 2015 - www.magellanlogistics.com.au
GLOSSARY OF TERMS AND ABBREVIATIONSW/MWeight Measure the freight rate based on theweight of volume of the cargo. The rate uses thecomparative relationship between weight andvolume of cargo.WharfageA charge assessed by a pier or dock owner forhandling incoming or outgoing cargo.10 Magellan Logistics 2015 - www.magellanlogistics.com.au
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contains the terms of the contract of carriage and is a document of title to the goods. Bonded Warehouse A place of security approved by the custom authorities for the deposit, keeping and securing of goods liable to excise duty, without payment of this duty. Box A colloquial name for a
