Air Waybill - AWB

An AWB is a bill of lading, that covers both domestic and international flights transporting cargo to a specified destination.

Allotment

Reserved space by airlines on behalf of forwarders / shippers.

Alongside

The side of a ship. (1) cargo to be delivered " alongside" are to be placed on the dock or lighter within reach of the transport ship's tackle so that they can be loaded aboard the ship. (2) cargo delivered to the port of embarkation, but without loading fees.

Assembly Service

When a forwarder assembles shipments from many suppliers and handle them as one shipment.

ATA

Depending on the context . Actual Time of Arrival, Airport-To-Airport, Air Transport Association of America.

ATA Carnet

see: Carnet De Passage

ATD

Actual Time of Departure.

B

BAF - BunkerAdjustment Factor

The fuel surcharge on ocean shipments, was set in 1990 during the golf war, while global fuel prices reached high levels.
This surcharge is officially not in use, due to the lack of flexibility in calculating the changes in ships size and the number of containers loaded.

Bill Of Lading

A document which  is a written evidence regarding receipt of the goods (cargo), the conditions on which transportation is made and the engagement to deliver goods at the prescribed port of destination to the lawful holder of the bill of lading. A bill of lading is both a receipt for merchandise and a contract to deliver it as freight.

Bonded Warehouse

Bonded warehouse is a warehouse where goods are stored  on which payment of duties is deferred until the goods enter the Customs Territory. The goods are not subject to duties if reshipped to foreign points.

Break Bulk (B/B)

Disassembling of consolidated shipments, under one MAWB, for delivery or re-consignment of each shipment to specific consignee according to the relevant HAWB

Brussels Tariff Nomenclature

See: Harmonized System

C

A customs document alowing  the holder to carry or send merchandise temporarily into certain foreign countries for display, demonstration or similar purposes without paying import duties or posting bonds. The Carnet serves both as the entry document and the bond.

Chargeable Weight

The weight of the shipment which is used to determin airfreight charges. The chargeable weight may be the dimensional weight, or on container shipments, the gross weight of the shipment less the tare weight of the container.

Charges Collect

Transportation charges ( may include accessorial charges ) that are entered on the air way bill to be collected from the consignee. Equivalent terms are "freight collect" or "charges forward"

A transportation service under which the carrier collects the purchase price of the goods from the receiver at the time of delivery. As the term COD implies, there are no credit provisions in COD service.

Combi Aircraft

An aircraft configured to carry both passengers and cargo on the Main Deck.

Conference

A group of ocean freight carriers banding together in order to limit and regulate competition between themselves
Conference lines are shipping routes with fixed schedule and rates agreed by the conference members.

Consolidation

In order to handle small lot of consignment efficiently and competitively, freight forwarder usually put many consignments into one lot then tender to carrier for forwarding. In this case, each consignment will be shipped with one HAWB respectively and all of them will be under one master AWB.

Container Yard

The area where the containers are delivered to and received from the vessel/inland carriers.

Contingency Insurance

Also called difference in conditions insurance. Insurance which protects the interests of the insured in the event another party's insurance fails or falls short.

D

Dangerous Goods

Commodities classified into 9 groups, by IATA according to its nature in terms of the effect of its danger to carrier's flying safety.

Declared Value for Carriage

The value of goods declared to the carrier by the shipper for the purposes of determining charges or of establishing the limit of the carrier's liability for loss, damage, or delay.

Declared Value for Customs

The selling price of the contents of a shipment or the replacement cost, if the contents are not for resale. The amount must be equal to or greater than the declared value.

Demurrage

The detention of containers by shippers or receivers of freight beyond a specified grace period.

Dimensional Weight ( Air freight )

Also called measurement weight. This is the size of consignment calculated by total square centimeters divided by 6000. Carriers charge for freight based on the dimensional weight or actual gross weight whichever is higher.

Dolly

A piece of equipment with wheels, used to move containers and pallets to/from the aircraft.

Drawback

Drawback is a refund of duties paid on imported goods that is provided at the time of their re-exportation.

E

EDIFACT - E.D.I

EDIFACT, Electronic Data Interchange for Administration, Commerce, and transportation, is an international syntax used in the interchange of electronic data.

Embargo

Temporary refusal to accept traffic for transportation at certain points or in certain routes due to emergencies, limitations of facilities, or other abnormal circumstances.

ETA

Estimated Time of Arrival.

ETD

Estimated Time of Departure.

F

F.A.K

Freight all kinds. Usually refers to ocean consolidated cargo. Rate for FAK as opposed to commodity rate.

FCL

Full container load.

Flag of convenience

The national flag flown by a ship that is registered in a country other than that of it's owners.

Free Domicile

A term used in international transportation where the shipper pays all transportation charges and any applicable duties and/or taxes.

Free in and out

A pricing term indicating that the charterer of a vessel is responsible for the cost of loading and unloading goods from the vessel.

Freighter

An aircraft for the carriage of cargo only. Both the main deck and the lower deck are used for carrying cargo.

G

Gateway

Gateway refers to a major airport or seaport, may also mean the port where export customs clearance takes place.

General average

A loss that affects all cargo interests on board vessel as the ship herself. A general average loss may occur whether goods are insured or not. It is one that results from an intentional sacrifice incurred by the master of a vessel in time of danger for the benefit of both ship and cargo. From the most ancient times, the maritime laws of all trading nation have held that such a sacrifice shall be borne by all for whose benefit the sacrifice was made, and alone by the owner of the cargo thrown overboard.

Gross Weight

Actual weight of a shipment including packaging material.

H

Harmonized System - HS

The Harmonized Commodity Description and Coding System is a system for classifying goods in international trade, identifying a given commodity by a single number.

HAWB

House Air waybill is an AWB issued by a freight forwarder identifying a specific shipment in a consolidation.

Hazardous Materials

See: Dangerous goods

I

IATA

International Air Transport Association Established in 1945, IATA is a trade association serving airlines, passengers, shippers, travel agents, and governments. The association promotes safety, and standardization.

IFP - Interim Fuel Participation

IFP is a fuel surcharge in ocean fright forwarding and other industrial fields.
It is relacing the BAF surcharge and updated, during acute fuel price fluctuation (over 25%).

Import Quota

A mean of restricting imports by the issuance of licenses to importers, assigning each a quota, after determination of the total amount of any commodity which is to be imported during a period. Import licenses may also specify the country from which the importer must purchase the goods.

Incoterms

International Commercial Terms Maintained by the International Chamber of Commerce (ICC), this codification of terms is used in foreign trade contracts to define the point up to which the seller is responsible for the delivery of the goods and the point in which the risk of loss is transferred from the seller to the buyer:
EXW - Ex - worksFCA - Free Carrier (named place)
FAS - Free Alongside Ship (named port of shipment)
FOB - Free On Board (named port of shipment)
FCA - Free Carrier (named place)
CFR - Cost and Freight (named port of destination)
CIF - Cost Insurance and Freight (named port of destination)
CPT - Carriage paid to (named place of destination)
CIP - Carriage and Insurance paid to (named place of destination)
DAF- Delivered At Frontier (named place)
DES - Delivered Ex Ship (named port of destination)
DEQ - Delivered Ex Quay (named port of destination)
DDU - Delivered Duty Unpaid (named place of destination)
DDP - Delivered Duty Paid (named place of destination)

Intermodal

J

Jettison

To unload or throw overboard at sea a part of a ship's cargo to lighten the ship in case of emergency.

L

LCL

Less than Container Load. A shipment that does not fully fill’s a container

Liner terms

Conditions under which a shipping company will transport goods, including the cost for shipping the goods (freight) and the cost both for loading and discharge of the vessel.

Lower Deck

The lower compartment of an aircraft, below the Main Deck.

M

Main Deck

Also known as Upper Deck .The deck on which the major portion of cargo is carried. A freighter aircraft has it entire upper deck equipped for main deck type of containers/pallets while Combi aircraft uses it rear part of the upper deck for cargo loading. There is no main deck type of container/pallet at passenger aircraft.

N

N.V.O.CC - Non vessel operating common carrier

A carrier issuing bills of lading for carriage of goods on vessels which he neither operates nor owns.

NVD

No Value Declared.

P

Shipment of cargo by carrier from origin pier to discharge pier. Applies to container yard ( CY ) cargo.

POA - Power Of Attorney

An authorization granted by consignee or importer to its customs broker for the processing of customs clearance on his behalf.

POD

Proof Of Delivery, a cargo/package receipt stating time and date of delivery with the signature of recipient.

R

A ship that has the ability to load and discharge cargo which rolls on wheels.

S

Said to contain ( S.T.C )

A clause in transport documents which exclude liability of the carrier for the consistency between the description of goods and the actual goods.

Said to weigh ( S.T.W )

A clause in transport documents which exclude liability of the carrier for the consistency between the stated weight and the actual weight of the goods.

A clause in transport documents noting that the shipper (and not the carrier) was responsible for the loading and counting of the container contents.

T

The Air Cargo Tariff - Published by IATA.

Tare Weight

U

ULD

Unit Load Device, Any type of container, container with integral pallet, aircraft container or aircraft pallet.

Upper Deck

See Main Deck

W

Warsaw convention

An international multilateral agreemant which regulates the conditions of international transportation by air. Among other things it establishes the limitation of air carriers liability.

Weight break

The levels at which the freight rate per Kg decreases, based on the principle that the higher the break, the lower the rate per Kg. Usually starts with a minimum fee.

Wharfage

A fee assessed by a pier or dock owner for handling incoming and outgoing cargo.