See Third Party Logistics Provider.
Always Afloat. A charter party clause which stipulates that the ship is to berth for loading or discharging without touching the bottom of the sea/river/waterway etc. In many cases, owners may agree for the ship to touch on harmless grounds when low tide occurs.
AB INITIO (LAT)
From the beginning.
AIRFREIGHT OVERSIZED, OUTSIZED AND OVER DIMENSIONAL CARGO
Oversized and outsized cargo does not fit to any regular standard airfreight pallet dimensions container.
This includes long length cargo, over height cargo with special loading requirements and heavy lift cargo with special handling requirements.
Oversized, outsized and over dimensional cargo may require special air charter services.
An insurance term which is invariably enforced by the assured when the subject matter insured becomes a Constructive Total Loss.
Air Cargo Automation. The term applied by Australian Customs to the computer system that coordinates and controls the reporting and delivery of import air cargo in Australia.
A charge applied by Forwarders and Consolidators in Australia to cover the costs associated with the operation of the Air Cargo Automation System.
Australian Competition and Consumer Commission. Australia's competition regulator and national consumer law advocate.
Accredited Client Export Approval Number - Australian Customs. Section 4 of Customs Act - ACEAN means an accredited client export approval number allocated by the CEO (of Customs) to a person under an export information contract. See CAN.
ACT OF GOD
An inevitable event occurring without human intervention such as flood, tempest, or death. Operates in certain contracts such as those of insurers or carriers.
ACTUAL TOTAL LOSS
Insurance term. An actual total loss occurs when:
· The insured property is damaged to an extent where it is no longer recognizable as the property originally insured.
· The assured has been irretrievably deprived of the insured property.
· The insured property is destroyed.
European Agreement concerning the International Carriage of Dangerous Goods by Inland Waterways (ADN).
Australian Defence Force. A collective term covering all services Army, Navy and Air Force.
A remuneration allowed to Charterers on some charter parties after the Bills of Lading are signed. This virtually reduces the rate of freight.
The role of the Admiralty Marshal of the Federal Court of Australia is to take custody of a ship under arrest and to maintain the ship until such time as it is released by the Court or sold pursuant to an order of the Court.
According to the value. The term is usually applied to part or all of the ocean freight on goods that is assessed on a percentage of the value of those goods.
European Agreement concerning the International Carriage of Dangerous Goods by Road (ADR).
AD VALOREM (LAT)
According to the value. I.e. a percentage of the value.
A tanker chartered under the Average Freight Rate Assessment system. These are tankers of more medium sized and able to transit most tanker ports. Approximate size in the 80,000 to 119,999 dwt size.
A contract to carry goods by ship, which might be either verbal or written. In the Liner Trade a verbal contract is created when cargo is booked and then accepted by the carrier. Charter Parties are Contracts of Affreightment.
A fee charged by forwarders and brokers for arranging and handling a shipment.
The fees charged by an agent of a ship's owner for attending to the business of the ship whilst in port.
A person or company authorised to act on behalf of a principal. The authority is usually expressed in an agency agreement which will include details of the fee payable to the agent by the principal and the limits of the authority of the agent.
AGRICULTURE AND WATER RESOURCES, DEPARTMENT OF
The Australian Government department that enforces quarantine procedures and biosecurity regulations under the Biosecurity Act 2016. Refer also to BICON and MARS. The Department also issues certification to approve or otherwise certain export commodities and ensures that ships scheduled to load grain conform to regulations for hold cleanliness. Formerly known as the Australian Quarantine Inspection Service (AQIS) also provides import and export certification.
A ship is termed aground when it touched hard ground.
Australian Harmonised Export Commodity Classification Code.
An air transport document, which is non-negotiable.
A unit load device (ULD) which links directly with the aircraft cargo handling and restraint system.
AIRCRAFT ON GROUND (AOG)
A term in aviation maintenance indicating that a problem is serious enough to prevent an aircraft from flying. Generally there is a rush to acquire the parts to put the aircraft (A/C) back into service, and prevent further delays or cancellations of the planned itinerary.
An item of equipment consisting of a flat platform with a flat under-surface of standard dimensions on which goods are assembled and secured before being loaded as a unit onto the aircraft.
An aircraft used to transport cargo or passengers to or from an often otherwise inaccessible area.
Automatic Identification System. A high frequency radio (VHF) broadcasting system that transfers packets of data over the VHF data link and enables AIS equipped vessels and shore based stations to receive identification information that can be displayed on an electronic chart, computer display or compatible radar. This information can help in situational awareness and provide a means to assist in collision avoidance.
ALAMEDA CORRIDOR SURCHARGE
A charge paid by rail operators in the USA for using the 20 mile long express rail link called the Alameda Corridor, which links the ports of Long Beach and Los Angeles to the transcontinental rail network near downtown Los Angeles. Shipping lines pass this charge on to customers and consolidators also pass it on as a per w/m charge for LCL cargo.
The term applied to a marine insurance policy that incorporates Institute Cargo Clause (A) that is the widest of all policies covering all possible risks with the exception of those specifically named as Exclusions.
The temperature of a substance surrounding a body. The ambient temperature of a container - reefer or dry, would be the temperature of the air to which it is exposed outside.
Australian Maritime College based at Launceston, Tasmania. Integrated as a unit of the University of Tasmania.
AMERICAN BUREAU OF SHIPPING (ABS)
A ship classification society that verifies that marine vessels and offshore structures comply with the Rules that the society has established for design, construction and periodic survey.
Australia Maritime Safety Authority. A largely self-funded government agency with the charter of enhancing efficiency in the delivery of safety and other services to the Australian maritime industry.
The Antonov An-225 Mriya is a strategic airlift cargo aircraft that was designed by the Antonov Design Bureau in the Ukrainian SSR within the Soviet Union during the 1980s. It is powered by six turbofan engines and is the heaviest aircraft ever built, with a maximum takeoff weight of 640 tonnes. It also has the largest wingspan of any aircraft in operational service. The single example built has the Ukrainian civil registration UR-82060. A second airframe with a slightly different configuration.
Australia-New Zealand Closer Economic Relations Trade Agreement. A bi-lateral agreement between Australia and New Zealand mostly concerned with free trade status.
Asia Pacific Economic Cooperation. A multi-lateral forum that works to facilitate economic growth, cooperation, trade and investment in the Asia-Pacific region. APEC has 21 Member Economies; Australia is a founding member.
Australian Port Charge Additional - See the definition of BSRA.
Australian Peak Shippers Association Inc. The Designated Peak Shipper Body granted status under Part X of the Consumer & Competition Act to represent the interests of Australian exporters generally in relation to outwards liner shipping services from Australia.
Arbitrary at Origin Charge - See Arbitrary Charges below.
ARBITRARY CHARGES - OCEAN SHIPPING
Arbitrary charges are levied by shipping lines as an extra charge for moving a container from or to an inland point beyond the ports of loading or discharge.
Arbitrary at Destination Charge - See Arbitrary Charges above.
A method of dispute resolution involving a third party - the arbitrator, whose decision is usually binding on all parties concerned. Specific clauses are included in most maritime contracts.
ARREST or SEIZURE
An official warrant of arrest or seizure of a ship issued by a court on behalf of a claimant/creditor for any one of a variety of maritime claims. These claims are listed in the International Convention on the Arrest of Ships 1999. This Convention came into force in 2011 but not all countries are signatories.
A document, issued by a shipping line, consolidator or forwarder, which notifies a consignee and/or their agent of the arrival details of their cargo.
A term used in conjunction with the agreed terms of the charter party. A ship has arrived when she is within the precincts of the port or, confirmed to be in a specific agreed location and stated in the charter party.
Association of South East Asian Nations. A partnership of ten Asian nations formed in 1967. Australia is not a member nation but has concluded a free trade agreement with ASEAN countries.
A legal concept whereby one party transfers a right to another.
1. Insurance: In transportation insurance, where the shipper assigns the Certificate of Insurance over to the consignee. This assignment process is usually done by the shipper signing the back of the Insurance Certificate over a Company Stamp.
2. In shipping: The transfer of title (assignment) to a shipment of goods can be accomplished by correctly endorsing a negotiable Bill of Lading.
Actual Time of Arrival.
Actual Time of Departure.
Airline Terminal Fee. Same as ATO Fee. A charge applied by Airline Terminal Operators for the physical handling of import/export cargo at the airline bond store.
Actual Total Loss. When the subject matter has been destroyed beyond repair; if the damage or repairs necessary will exceed the valued policy, it would be considered as an ATL.
UNECE Agreement on the International Carriage of Perishable Foodstuffs and on the Special Equipment to be used for Such Carriage (ATP).
Australian Transport Safety Bureau based in Canberra. The ATSB conducts independent investigations into accidents and serious incidents involving Australian registered ships worldwide and also foreign flag ships operating in Australian waters. ATSB has a similar responsibility with other transport modes.
AusCheck conducts background checking services for the Aviation Security Identification Card (ASIC), Maritime Security Identification Card (MSIC), and National Health Security (NHS) check schemes.
Australian Ship Reporting System was a ship reporting system designed to contribute to safety of life at sea.
From 2012 onward this changed to the Automatic Identification System (AIS). The AIS is a Very High Frequency (VHF) radio broadcasting system which enables AIS equipped vessels and shore-based stations to send and receive identifying information. This information can be displayed on a computer or chart plotter and in situational awareness provides a means to assist in collision avoidance.
The AIS can handle over 2,000 reports per minute and may update information as often as every two seconds.
AUSTRALIAN BORDER FORCE (ABF)
Australian Border Force. Formed in 2015 is an operationally independent body under the Department of Home Affairs. The Force is responsible for operational border, investigations, compliance, detention and enforcement functions, and continues to be Australia's customs service.
An expert in the law and practice of marine insurance and general average who provides professional and independent advice on the claims arising from marine casualties.
Also known as a general average agreement. It is a written agreement signed by a consignee wherein he undertakes to accept liability for the general average contribution as determined by the Average Adjuster. After a general average has been declared, a consignee, in order to secure the release of his cargo, must provide this bond, together with a deposit or insurer's guarantee, to the shipowner.
High octane aviation gasoline used in piston-typed aircraft engines.
See Air Waybill.
A fee for preparing an AWB.
See Bill of Lading.
Arises when goods have been despatched to a certain port but on arrival the goods are rejected by the consignee. The freight charged for the return of the goods to the origin port constitutes Back Freight. Usually confined to the Liner Trade.
Bunker Adjustment Factor. A charge, usually expressed as a percentage of the ocean freight, charged by the carrier to offset fluctuations in the price of fuel oil. Confined to the Liner Trade.
Hold space available for cargo measured according to volume - cbm, to the inside of the cargo battens, on the frames and to the underside of the beams. It is the measure of hold capacity for cargo in bales or on pallets etc. where it does not conform to the shape of the shape of the ship.
When a ship is empty of cargo - known as light ship condition, the ship is likely to be unstable in the open sea. Ballast usually in the form of water is pumped into ballast tanks to help stabilise the vessel. That ballast water must be discharged before loading can commence. Strict conditions apply as to where and under what conditions that ballast water can be discharged.
A freight derivatives market operated by the Baltic Exchange, London. Baltex is a neutral, central and approved multilateral trading facility for dry freight. It is the world's only independent provider of dry bulk shipping indices and route assessments.
A private company based in London that collects ship fixture rate information and produces daily analyses of the main dry cargo markets as they develop.
A term applied by a court to a person not able to repay creditors. In Australia companies do not become bankrupt or placed in administration without a direction by a court and are subject to conditions expressed in federal legislation.
Also known as a Demise Charter. A charter under which the charterer takes complete control of the ship usually including providing the Master and crew. Some capital costs remain the Owner's responsibility. Normally a long-term charter i.e. years.
Usually a flat bottomed wooden or steel vessel customarily used in commercial ship canals and in ports where ships are unable to load/unload cargo due to shallow draughts. Barges can be used in connection with shore side cargo operations enabling work to be carried out on both sides of the ship.
Any wrongful action committed by the crew or master, e.g. scuttling the ship, throwing the cargo overboard.
A volumetric unit of measure for crude oil and petroleum products. 1 barrel equals 42 US gallons, 35 imperial gallons or 159 litres.
The section(s) of a container ship in which containers are held.
A document produced by a container terminal/stevedore in conjunction with the Chief Officer of the ships that shows the bay/cell position of every container loaded on the ship at that port. The cumulative process of loading containers at following ports will include those containers to produce the final Bay Plan for a voyage.
A naturally occurring raw material used in the manufacture of Aluminium. Australia's major deposits are in North Queensland and shipped through the Ports of Weipa and Gove to Australian and overseas smelters.
BEAUFORT WIND SCALE
A scale 0 to 12, that measures wind speed from 0 - Calm, to 12+ - Hurricane.
Flipping a box to fit sideways or upright depending upon its size and whether it can be turned due to its fragility.
The belly-hold is the space for cargo under the main deck of an aircraft, this is the area where the baggage is stowed on passenger aircraft.
The place at a port where a ship is docked.
The cost of loading and discharging is for the account of the shipowner. Same as for Liner Terms.
Australian Government's Biosecurity Import Conditions. The system that enables importers to determine conditions for the import of plants, animals, minerals and biological products and if a permit is required.
BILL OF LADING (MASTER)
In the Liner Trade a document issued by the carrier which is a receipt for the goods loaded on a ship and is the evidence of a contract of affreightment between the carrier and the shipper. The Bill is also evidence of title to the goods described and specifies the carrier’s terms and conditions of carriage. For a ship under charter the function of Bill, usually produced by the Charterer to be signed by the Master/Agent, will be specified in Charter Party. There are many types of Bills: see separate entries for Received for Shipment, Express, House, Through, Claused, Combined Transport.
BILL OF EXCHANGE
An order in writing from one person/company to another requiring them to pay a certain sum to a person/company named on the document, at a specified time and subject to certain conditions.
The Baltic and International Maritime Council, based in Copenhagen. It is an independent shipping association with a membership comprising shipowners, managers, brokers, agents and other stakeholders with vested interests in the shipping industry. BIMCO acts on behalf of its global membership to promote higher standards and greater harmony in regulatory matters. BIMCO also produces a large range of documents used in shipping operations.
BIOSECURITY INDUSTRY PARTICIPANTS
A person who is the holder of the approval of an approved arrangement (including a person to whom an approved arrangement has been transferred in the circumstances prescribed by regulations made for the purposes of section 411)
a. is a biosecurity industry participant; and
b. is covered by the approved arrangement.
BIOSECURITY RISK MATERIAL
Biosecurity Risk Material. Includes but is not limited to live insects, seeds, soil, dirt, clay, animal material, plant materials such as straw, twigs, leaves, roots, bark, food refuse and other debris.
A designated area outside the entry point into a port where a ship must stop and position itself to take on board a Pilot who will guide the ship into the port. Where Pilotage is compulsory through a particular or route such as in the Great Barrier Reef Marine Park, the Boarding Ground will not necessarily be at a port entrance but at sea. In these cases the Pilot might board/disembark by helicopter.
A measure of the pulling power of a tug in tons. It is an indication of the maximum pulling force that a tug can exert on another ship or object.
A container platform usually conforming to the ISO dimensions - 20ft and 40ft, without ends and used for transporting out-of-gauge/awkward cargoes on container ships.
A secure area/building where goods that are subject to ABF control usually due to unpaid import duty, are stored pending ABF clearance.
Imported goods under Customs control or deposited in a Customs Bond until import duty is paid.
A depository for goods on which duty has not been paid. The warehouse proprietor must provide a bond to the customs authorities as a security for any duties which may become payable.
A reservation, allocation or allotment.
The term applied to those Australian Government agencies that have a responsibility of ensuring the integrity of Australia's borders. These agencies are the Australian Border Force and the Department of Agriculture and Water Resources.
A form of mortgage whereby the owner or master of the ship pledges the ship (the keel or bottom hence bottomry) as security for a loan to complete the voyage of the ship. The freight to be earned might be included. A process rarely used due to other financing methods available. Associated with Respondentia which is later explained.
A colloquial name for a container.
BREAK BULK CARGO
General cargo carried on a ship which is not containerised but may be unitised/consolidated on pallets for ease of handling and stowage. The term includes reefer cargo.
BREAK BULK DEPOT
A depot where containers are unpacked and cargo is sorted.
BREAK BULK FEE
The fee charged by a Break-bulk depot for unpacking, sorting and stacking cargo, either air or sea.
Where cargo is of such a kind that it cannot fill all available space in the cargo hold of a ship, e.g. logs or bundles of timber. The unusable space is called Broken Stowage.
Basic Service Rate. An ocean container shipping term that actually means the base freight rate for the port-to-port segment of the transit. It may have several surcharge factors applied to it.
Basic Service Rate Additional - Means the same as APCA.
1. It was previously used as a charge by shipping lines for loading or unloading containers on or off vessels or for other services beyond the port-to-port carriage of the cargo, such as container unpacking and packing, and inland trucking.
2. Is currently used by groupage operators to describe the proportional charge applied to LCL cargo for the combined costs of container unpacking or packing, PSC and THC, and cartage to and from the wharf terminal.
Either dry cargo - Iron Ore, Coal, Grain etc. or liquid - Crude Oil, Petroleum Products, which is loaded and carried without packaging of any kind. Usually in full ship loads but also in smaller parcels.
A vertical steel partition separating holds/compartments in a ship.
Fuel in the form of heavy fuel oil, diesel or coal used in ship's engines.
BUNKER ADJUSTMENT FACTOR
(BAF) A surcharge applied by an ocean carrier to ocean freight rates to recover increased costs associated with Bunker fuel. Had previously been a percentage based surcharge, but is usually now levied as a flat amount.
The fuel that powers a ship's engines and which is stored in bunkers near wharves in readiness for pumping in to a ship's fuel tanks.
The process of re-fuelling a vessel.
See Bunker Adjustment Factor (BAF).
Bunker Charge - An ocean shipping bunker fuel surcharge.
BUREAU VERITAS S.A. (BV)
Bureau Veritas. A ship classification society based in France and register of shipping and officially authorised for the assignment of freeboard on ships. As a class society it is involved in ensuring that a ship operates according to a high level of internationally recognised safety standards. BV also is involved in certification in HSE (Health, Safety and Environmental) area.
Combined Currency Adjustment Factor and Bunker Adjustment Factor.
The coastwise movement of goods between national ports, e.g. Australia. Under Australia's Navigation Act 2012 this movement is reserved for national flag carriers or for ships licensed by the Department of Infrastructure, Regional Development and Cities, or for which a Permit has been issued.
Currency Adjustment Charge.
Currency Adjustment Factor. A surcharge levied by liner trade operators, usually in the form of a percentage of the ocean freight, to cater for fluctuations in foreign currency exchange rates against the Australian Dollar.
Customs Authority Number. A nine-character alpha numeric code issued by the Australian Border Force. All goods to be exported from Australia must be accompanied by a valid CAN. Exceptions are personal effects and low value items.
A Charter Party term. The charterers have the option to cancel the contract or their commitments with the shipowner/operator of the ship if the vessel is not delivered at the agreed loading port within the prescribed time. Abbreviation Laycan.
A plan of a ship showing her loading capacity. This is an essential item when the ship is loading for good stowage and utilisation of space.
An ill-defined standard in terms of tonnage but applied to ships that are too large to transit either the Panama Canal or the Suez Canal and must proceed via either Cape Horn or the Cape of Good Hope. Tonnage size ranges from approximately 90,000 dwt.
(IATA term) IATA cargo agents (airfreight forwarders) perform the air cargo sales, documentation, and cargo preparation for carriage functions on behalf of airlines. In return, the agent receives commissions or discounted freight rates from the airlines.
CARGO CARRYING CAPACITY
A term that can be expressed in different ways. Capacity might be stated in tonnes or volume in cubic metres. See Deadweight (DWT) also DWAT, Grain Capacity and Bale Capacity.
Anyone who carries cargo or passengers by road, rail, sea or air.
(Air) The air carrier issuing the Air Waybill and all air carriers who carry or undertake to carry cargo.
Under INCOTERMS can be defined as anybody [e.g. Forwarder] taking responsibility for the movement of the cargo).
CARRIER SECURITY SURCHARGE
A fee per TEU charged by shipping lines to cover costs associated increased security measures for ships.
The right of a carrier to hold cargo, pending payment of freight charges or of general average deposits and guarantees.
Currency Adjustment Surcharge.
Cargo Agent's Settlement System - IATA.
Cubic Metre - Also denoted as m3.
Charges Collect Fee. See Collection Fee.
Customs Connect Facility - also used as a code for Container Cleaning Fees charged by shipping lines.
Customs Client Identification code.
In some ocean trades, the code used for CY Congestion Surcharge; a charge applied by shipping lines to recover extra costs incurred in congested container yards (terminals).
Collect charges at destination. A term used widely in the airfreight industry.
CELLULAR CONTAINER SHIP
A ship constructed for the purpose of carrying containers with the holds fitted with vertical guides Cell Guides into which containers are slotted and lowered to form secure stacks restrained on all four corners. On some ships the cell guides extend above the deck.
CENTER OF GRAVITY
The center of gravity (CG) of an object is the point at which weight is evenly dispersed and all sides are in balance.
A way of measuring the viscosity of oil similar to seconds. Abbreviation CSC.
CERTIFICATE OF REGISTRATION
A certificate issued by a government authority that signifies the ship's nationality. In Australia the Certificate is issued by the Australian Maritime Safety Authority and will include the port of registration, official number, and name of the owner, date of construction, ship type and general dimensions.
CERTIFICATE OF ORIGIN
A document certifying the country in which the goods were grown, produced, manufactured etc. as required. The Certificate is usually required to be independently certified by a chamber of commerce or similar body. Used by Customs at the importing country to determine the level of import duty, if any.
Cost and Freight. An Incoterm 2018 which means that the selling price covers the cost of the goods sold and the ocean freight to transport the goods to the named destination port. Marine insurance is either arranged by the buyer or the goods are not covered by insurance.
Container Freight Station. A place where LCL cargo is consolidated and/or de-consolidated; also known as Depot, Consolidation Depot, or Container Base.
CHANGE OF DESTINATION FEE
A fee per request by shipper/consignee to alter the destination port of cargo already on board a vessel. Can be quite expensive depending upon where the cargo is stowed in the vessel.
(Airfreight) The greater of either the actual weight of the cargo or its 'volume weight'.
(IATA) Also called freight collect, or in other words - 'freight payable at destination'. The movement of 'charges forward' shipments to some countries is either restricted or in some cases not at all possible. It is wise to ascertain the regulations and facilities of destination countries before shipment. Additionally, IATA airlines charge TACT freight rates for shipments sent on a freight collect basis.
Chartering is an activity within the shipping and airfreight industry whereby a shipowner hires out the use of his/her vessel to a charterer. A Charter Broker sources different charterers for a prospective contract for a fee.
A company or a person who hires a ship from the owner/operator either on a voyage or time basis.
A written contract/agreement between a shipowner/operator and a charterer which sets out the terms and conditions under which the ship is chartered either for a voyage(s) or for a specified time. There are different charter party forms for different cargoes.
Cargo Handling Charges
Different products have different carrying temperature levels and these should be consulted. This is an explanation only.
Chilled cargo such as fresh fruit and vegetables, fresh meats and dairy products, usually travel plus or minus 0.5O C of the particular set point which may be above minus 10OC. Chilled products must be packed in the container to ensure that cold air circulates through the entire load. For chilled cargo the temperature is controlled by the supply air temperature sensor.
Cost Insurance Freight. An Incoterm which means that the seller has the same obligations as under CFR but with the addition that the seller has to obtain marine insurance for the cargo against the buyer's risk of loss or damage to the goods during carriage.
International Convention on the carriage of goods by Rail.
Carriage and Insurance Paid To. (INCOTERM).
Completely Knocked Down (as in unassembled or disassembled).
Container Load. See FCL.
Refers to the classification society that the ship has been entered into by the shipowner. The expression ships in class refers to ship currently classified by a classification society such as Lloyd's Register.
In marine insurance, a clause in a cargo policy which stipulates the minimum standard of vessel, as classified by a recognized classification society, required to carry the insured cargo. An additional premium may be charged by the underwriters for the additional risk involved if the vessel is not up to the stipulated standard.
An organisation that establishes and applies technical standards in relation to the design, construction, compliance verification and survey of ships and other marine related structures, e.g. Lloyd's Register, American Bureau of Shipping.
CLAUSED BILL OF LADING
An ocean bill of lading that carries an endorsement by the carrier stating that the goods were not received in good order and condition. Also termed Foul Bill of Lading and Dirty Bill.
CLEAN BILL OF LADING
A Bill of Lading that carries no qualification or endorsement that the goods have been shipped in anything other than good order and condition.
International Maritime Committee (Comite Maritime International). The international forum of maritime lawyers in Belgium, whose major purpose is to draft and promote uniform rules in matters relating to international maritime law.
1. Internationally - it is the International convention on the carriage of goods by road, and
2. Domestically in Australia - Cargo Management Re-engineering - a name given to describe a range of new laws and controls introduced by Australian Customs under Trade Modernisation legislation in the first five years of the 21st century.
A fee charged by freight forwarders and customs brokers to recover costs associated with compliance with the laws introduced in Australia in the first 5 years of the 21st century under the title of Trade Modernisation Legislation. The Australian Customs Service named the program of the introduction of the new laws, the Cargo Management Re-engineering (CMR) program.
Contract of Affreightment. See Affreightment above.
The Bill of Lading used for shipments on vessels chartered on the COAL-OREVOY Charter. Produced by BIMCO.
Australian Carriage of Goods by Sea Act 1991. This Act is administered by the Department of Infrastructure, Regional Development and Cities.
An alternative source of electrical power from shore supplying power while the ship's main and auxiliary engines are turned off during cargo unloading/loading operations. Also called Alternative Maritime Power (AMP) or Shore Power.
A container with hinged or removable walls and top.
COLLECTION FEE (CC FEE)
A percentage surcharge, usually between 2% and 6%, of the total freight bill, charged by carriers and forwarders on collect freight amounts. The charge is applied to recover interest on funds payable at the time of shipment; also to cover fluctuation of exchange rates.
An aircraft designed to carry both passengers and cargo on the main deck.
A ship designed to carry both conventional and containerised cargo.
A system, devised in Europe and used by forwarders, for the distribution of transport related costs between seller and buyer according to Incoterms. See the Combiterms costs distribution chart in the chapter on Incoterms.
The carriage of cargo by at least two different modes of transport from a place at which the goods are accepted, possibly at an inland location in one county and carried by ship to another country with final delivery also possibly inland. The responsibility for the safe movement of the cargo remains with the ocean carrier who issues the Combined Transport Bill of Lading.
A term that is used to describe a ship designed to carry both break bulk cargo and containers.
A document usually produced by the seller that provides details of the pricing of the goods covered by the contract of sale between the seller and buyer. Also used by Customs in determining the value of the goods for import duty purposes, if applicable.
These risks include insolvency, payment default and contract repudiation. In the export/import of goods these relate to the ability and willingness of buyers and overseas banks to pay for the goods.
The term applied to a company that holds itself out to accept any cargo for shipment as in the case of most freight forwarders. However, if that company refuses to accept the cargo they cease to be a Common Carrier. Shipping companies in most cases are not Common Carriers as they contend they have no obligation to accept any cargo that is offered and have the right to refuse to accept it.
COMMON USER BERTH
A cargo berth within a port that is owned and maintained by the port authority and is available to any stevedoring company for handling cargo to/from a ship as compared to a container terminal that is leased to one stevedore and not available to other stevedores.
In the refrigerating machinery in an integrated reefer container, the compressor is the heart of the system. The compressor draws the low pressure, low temperature superheated vapour from the evaporator outlet. This vapour travels down the suction line to the compressor suction side. The compressor keeps the pressure in the evaporator low to keep the refrigerant boiling temperature low. This allows the system to achieve low temperatures in the controlled space. Most compressors are now scroll type replacing traditional piston units.
In a reefer container the condenser is a heat exchanger. The refrigerant having given up much of its heat in the condenser will condense to a liquid to a temperature below its boiling point. The condenser will be
An association of liner shipping companies/operators who agree to offer a common freight tariff and who rationalise sailings to provide regular and adequate services to a specified range of ports. In Australia Conference operation is regulated under the Competition and Consumer Act 2010. The agreement between the member lines of the Conference must be registered with the Australian Department of Infrastructure, Regional Development and Cities. This type of agreement is becoming comparatively rare as less restrictive agreements still requiring registration, come into operation.
A vessel operating in a conference shipping service.
The risk of confiscation of cargo in foreign countries or waters may be insured. War risks insurance covers confiscation resulting from war. Any other confiscation risks may also be insured.
To cover costs of vessels being delayed at ports due to port congestion. When applied, is usually a rate per TEU or a percentage of the freight amount; or a rate per w/m for LCL and breakbulk cargo.
Standard Liner Bill of Lading produced by BIMCO.
Document prepared by a consignor and countersigned by the carrier as a proof of receipt of consignment for delivery at the destination.
Connote is a common abbreviation for consignment note.
A charter party term referring to lay days that are calculated irrespective of Saturdays, Sundays or holidays.
The person or company to whom the goods are directed and whose name appears on the Bill of Lading or other document as the person/company authorised to receive and take delivery of the goods.
The person or company responsible for sending the goods.
A grouping of different shipments into one combined shipment.
A transport company, freight forwarder, logistics provider that receives small consignments from different shippers that constitute less than a container load and groups these with compatible goods for the same destination into a full container load (FCL). The container is consigned to the consolidator's agent at the destination port, unpacked and the different consignments delivered to the respective consignees.
CONSULAR DOCUMENTS (INCLUDING CONSULAR INVOICE)
Documents, which may include the Bills of Lading, certificates of origin and commercial invoice that are officially stamped and thereby legalized, in the country of export, by a consul, or embassy official of the country of importation destination. The consular documents are then used by customs officials, in the importing country, upon arrival of the goods, to verify the quantities, nature, and value of the shipment.
A consortia is formed from a number of shipping companies who combine their ship capacity and capital resources in order to offer a shipping service for the carriage of containers and in some cases also break bulk cargo. The agreement between members of the consortia might require registration as in the case of conferences.
A standardised transportable steel box used for unitised cargo transportation.
The most common container sizes in international seaborne trade are 20 feet (TEU) and 40 feet (FEU). Also referred to as CTU - Cargo Transport Units.
A term generally used to describe a period - 1950s, during which initial moves were made to carry cargo previously handled as break bulk, in containers. Usually attributed to Malcolm p McLean and services inaugurated by his company Sealand between New Jersey and Puerto Rico. After a short time the concept spread worldwide.
The process of managing various levels of temperature and humidity within a reefer container to ensure the safe carriage of commodities within the container.
A construction of published IATA rates that is eligible for combination.
CONSTRUCTIVE TOTAL LOSS (CTL)
When the subject matter becomes damaged beyond repair or if the anticipated payment of the expenses would exceed the insured value, it is considered to be a CTL. The assured files a Notice of Abandonment with the underwriters in consideration for this loss.
A standardised transportable steel box used for unitised cargo transportation. The most common container sizes in international seaborne trade are 20 feet (TEU) and 40 feet (FEU). Also referred to as CTU - Cargo Transport Units.
Charge payable usually to a container terminal operator when the import container exceeds the free storage period at the terminal.
Charge payable to the carrier when the consignee fails to return the empty container to the carrier after unpacking within the time specified by the carrier.
CONTAINER FREIGHT STATION (CFS)
A place where containers are packed and unpacked as distinct from the shipper's/consignee's premises.
CONTAINER LOAD (CL)
See FCL. A shipment that fully utilizes a container's capacity, either by cubic measurement or by weight. It is more loosely applied to any shipment that is moving in a container alone.
Records maintained by a shipping company that enables them to monitor the number and type of containers under their control that they have available for release to a cargo exporter. Often called container control or container logistics. The same records are maintained by container leasing companies.
Vessel designed and fitted to carry containers. See Cellular Container Ship.
A location in a port where ships berth to discharge and load containers.
CONTAINER YARD (CY)
Container Yard. One of many similar terms used to describe a location where FCL containers might be temporarily stored pending shipment/collection and empty containers are stored and repaired.
An airfreight term. A bottomless, rigid shell made of fibreglass, metal or other suitable material used in combination with an aircraft pallet and net assembly. (IATA).
An airfreight term. A rigid structure that performs the function of a ULD without the use of a restraining net. (IATA).
In relation to shipping the term applied to regulations developed through the International Maritime Organisation that are finally ratified by governments, adapted in national legislation and enforced by agencies within those countries. The UN Convention on the Law of the Sea is one example.
Countervailing duties (CVDs), also known as anti-subsidy duties, are trade import duties imposed under World Trade Organization (WTO) rules to neutralize the negative effects of subsidies.
Carriage Paid To. (INCOTERM).
Consolidation Reference Number. Australian Customs abbreviation for a sub-manifest export authority number. Was previously called a Customs (sub-manifest) Reference Number. See CAN.
Cost Recovery Surcharge. In August 2009, this charge, applied by some shipping lines, is effectively a measure to restore freight rates to an acceptable level for the lines concerned. The CRS is quoted as USD280 per 20', USD 350 per 40', and USD 400 per 40'HC/RH/OT/OH/FR/CRTD.
UNECE Convention on Civil Liability for Damage Cause during Carriage of Dangerous Goods by Road, Rail and Inland Navigation Vessels (CRTD).
Also called petroleum, describes the raw commodity that is found in geologic formations beneath the earth's surface. It is a flammable liquid consisting of a complex mixture of hydrocarbons extracted by drilling. The nature of Crude Oil varies from one location to another. Heavier crudes yield more heat on burning than lighter crudes also called sweet crudes. The refining process yields many other products including petrol, kerosene and petrochemicals.
Congestion surcharge (Same as PCS Port Congestion Surcharge).
Convention for Safe Containers. Any container used for the international transport of goods must have a valid safety approval plate that certifies the capacity of the container and other details. The CSC is an international convention that Australia has accepted and is covered by the Navigation Act 2012.
Container Terminal - see Container Terminal.
Clean Truck Fee.
Has three or more general usages:
· Container Terminal Operator (used in shipping and land transport).
· Cargo Terminal Operator (used in air cargo and land transport).
· Combined Transport Operator (used by multimodal shipping lines and other multimodal transport operators to describe themselves).
A charge imposed by a Container or Cargo Terminal Operator for handling cargo.
Customs-Trade Partnership Against Terrorism (USA program).
Chassis Usage Surcharge.
CURRENCY ADJUSTMENT FACTOR (CAF)
A surcharge or a discount on the freight amount, by the 'Ocean Carrier', to provide for fluctuations in exchange rates.
CURRENCY COLLECT FEE
See Collection Fee.
A person licensed by the Australian Border Force to complete formalities for the clearance of import goods, to calculate and to pay import duty on behalf of the cargo owner.
The Charterer must load/discharge as fast as possible in the circumstances prevailing at the time of loading or discharging.
CUSTOM OF THE TRADE
Similar in procedure to Custom of the Port or, Customary Despatch. But instead it refers to the general trade's customs of a place instead of the port's customary procedure. Where the term is inserted in a contract, all the laws and customary procedure of trade of that country supersede any clauses in the contract that may run counter.
CUT-OFF DATE OR TIME
The last date or time at which export cargo will be received for a particular vessel or aircraft.
Container Yard - see Container Terminal.
See Delivery Order.
Delivered At Frontier (INCOTERM).
Destination Delivery Charge (ocean shipping).
Destination Documentation Fee.
Delivered Duty Paid (INCOTERM).
Delivered Duty Unpaid (INCOTERM).
Aside from the normal English meaning, there are also several legal definitions of the term that are written in relevant Acts and Regulations, Orders and Codes of Carriage and Handling. See the Chapter on dangerous Goods for more information.
A damage claim by the carrier for a breach of contract (Affreightment) when the charterer or shipper fails to furnish a full cargo of the full booking and for which space has been set aside in the ship.
The unrelieved weight of a heavy, motionless mass).
The weight of cargo, stores, water, fuel crew and passengers required to submerge the ship to its maximum permissible safe draught. Abbreviated as DWT and DWAT.
A transfer made of plastic, paper or ceramic substance that has printed on it a pattern or space on which words/numbers might be able to be written. The Decal is adhesive and can be applied to most surfaces. In shipping decals are often attached to the external wall of a container to indicate hazardous contents in the container. For reefer containers it is used in conjunction with the PTI indicating when the inspection was performed, the expiry date and the person/company that carried it out.
The removal of consignments from a container. A term usually used in relation to the unpacking of a container by a freight forwarder who then makes the goods available to the many consignees. Also referred to as Devanning.
DECLARED VALUE FOR CARRIAGE
An Airfreight term. The value of goods declared to the carrier by the consignor. This declaration may have consequences in relation to the carrier's limits of liability.
DEDUCTIBLE (ALSO KNOWN AS EXCESS)
The amount, under an Insurance Policy, that the Insurer deducts from the claim amount when making the remittance to the claimant.
Cargo carried on a ship's deck. Various regulations exist in relation to this cargo including CoGSA which refers to the conditions under which cargo is carried in this way, containers included.
During the operation of a reefer a layer of ice might form on the evaporator coils. This may occur as a result of fresh air entering the container through vents and will depend on the temperature set, the temperature of the cargo, the amount of fresh air ventilation and the cargo humidity.
The unit periodically enters a phase where heat is produced by a series of electrical bars, allowing defrosting to take place. At such times, all fans are turned off automatically in order to prevent heat from entering the cargo compartment.
However, the return air temperature sensor is so closely located to the refrigeration machinery that the temperature record will inevitably register some of this rise. The record will therefore display periodic temperature increases in keeping with the defrost periods. These increases, which are conspicuous on paper chart recorders, have no immediate effect on the actual temperature of the cargo and are not an indication of an unstable refrigeration unit.
Destination Equipment Handling Charge. See L/O - L/O (lift-on lift-off charge).
A process of blowing warm, dry air into a full container of cargo to reduce moisture content of the air and contents in the container and therefore minimise the possibility of condensation damage.
An Airfreight term. The carrier who effects delivery at final destination in accordance with the Air Waybill. N.b. commonly, all are same carrier except where an agent is involved or where a transshipment has been effected. (IATA).
A document or electronic advice authorising delivery of goods to a nominated authorised person/company issued by the carrier on surrender of an original Bill of Lading.
A method by which the shipowner might hire out his ship for a specified period, usually a long period, to a charterer who becomes responsible for all operating costs including obtaining the crew.
Literally means compensation for delay of a vessel, container, rail wagon, etc. In Australia, it is used to describe the penalty charges applied for detention beyond the free period of rental of ocean containers, for storage of postal articles at the int'l mail centre, and for detention of chartered vessels. See also: Detention, Storage.
DEPARTMENT OF AGRICULTURE AND WATER RESOURCES
The Australian Government department that enforces quarantine procedures and biosecurity regulations under the Biosecurity Act 2016. Refer also to BICON and MARS. The Department also issues certification to approve or otherwise certain export commodities and ensures that ships scheduled to load grain conform to regulations for hold cleanliness. Formerly known as the Australian Quarantine Inspection Service (AQIS) also provides import and export certification.
DEPARTMENT OF INFRASTRUCTURE, REGIONAL DEVELOPMENT AND CITIES
The Australian Federal Government department responsible for maritime affairs and the formation of relevant legislation.
Delivered Ex Quay (INCOTERM).
Delivered Ex Ship (INCOTERM).
For biosecurity purposes, a first port of entry, landing place or a port where imported goods, plants or livestock may be landed as declared by the Department of Agriculture and Water Resources.
A payment made by the shipowner/operator to the charterer for completing the discharge/loading of the ship in less than the lay time allowed.
The removal (or unloading) of the contents of a container or other unit load device. Also called Breaking-Bulk, Devanning, Discharging, Stripping, Unpacking, and Unstuffing.
Charges applied for detaining a vessel, wagon, truck, or cargo. It has had common application by wharf cartage contractors in Australia throughout the latter half of the 20th century, where frequent delays beyond the agreed time period for loading and unloading of trucks have occurred. See also Demurrage.
The removal (or unloading) of the contents of a container or other unit load device. Also called Breaking-Bulk, Destuffing, Discharging, Stripping, Unpacking, and Unstuffing.
A departure from the prescribed route which the ship should follow in the performance of the contract of carriage.
The temperature at which air becomes saturated with water vapour. Any drop of temperature will cause water droplets to form, e.g. cold container roofs and walls at night, commodities in the container.
Australian Department of Foreign Affairs and Trade. The Federal Government department representing Australia and Australia's interests internationally and maintaining relationships with foreign countries including negotiating trade agreements.
Destination Handling Charge - same as DTHC and THC - ocean freight port charge.
DIMS OR DIM'S
Abbreviation for Dimensions. I.e. Dimensions of a given unit of cargo - length, width and height.
To unload the contents of a vessel, container, or any other loading device.
The name often used to describe the demise charterer of a ship.
See Letter of Credit.
This term has several uses and meanings. As the term implies, all uses have the same common base which is: The transportation and delivery of cargo from the consignor's premises to the premises of the consignee. It may be used to describe a door-to-door delivery by one carrier, using different transport modes, or by one contractor using a number of carriers, and variations of these.
DOUBLE HULL TANKER
A ship designed for the carriage of oil in bulk where the cargo spaces are protected from the environment by a double hull consisting of a double side and double bottom spaces dedicated to the carriage of ballast water. These ballast spaces extend for the full length of the cargo carrying area. Mandated under the Marpol Convention for new build tankers over 5000 dwt.
DOUGLAS SEA SCALE
A scale also called the "international sea and swell scale" used to estimate the roughness of the sea for navigation. The scale has two codes: one code is for estimating the sea state, the other code is for describing the swell of the sea.
DRAUGHT or DRAFT
Depth of a submerged part of the ship from the bottom of the keel to the water line. Light draught is when the ship is completely empty of cargo and loaded draught when cargo has been loaded into the ship.
A repayment of duty upon the exportation of goods previously imported. The Australian Government is a signatory to an International Convention relating to Drawbacks of Duty.
Means cartage, or haulage, from the noun Dray, being a cart with no sides used for heavy haulage.
A charge raised by a container owner, not a shipping company, on termination of hire on a leased container. This charge is levied to discourage redelivery of units in low container demand areas where the leasing company may be forced to move units out to a more profitable area.
DRY BULK CARRIER
Single deck vessels designed with top-side tanks and hopper-side tanks in cargo spaces. Holds are generally self-trimming and intended primarily to carry single commodity solid bulk cargoes.
The Defence Strategic Goods List as published by the Australian Department of Defence. List goods which may have military use and could therefore be subject to export controls.
Discharge Terminal Handling - same as THC - ocean freight port charge.
Destination Terminal Handling Charge - same as THC - ocean freight port charge.
Any materials used to stow, support, and secure cargo packed in to containers or vessel holds. Dunnage material of wood or other plant derived material is a concern for Australian and other National Biosecurity and Health authorities.
Deadweight All Told. See Deadweight.
Deadweight. See Deadweight.
Emergency Bunker Surcharge. A fuel surcharge imposed by shipping lines. See Emergency Fuel Surcharge.
Export Clearance Number, issued by Australian Customs as the authority for the clearance of export cargo. This term was made redundant in October 2004 by the introduction of new terminology for export clearances in Australia under new customs laws. See CAN, EDN, ACEAN, CRN, and the chapter on Export Controls.
European Union - 'Export Control System'.
Electronic Chart Display. A system that uses the electronic display of navigation charts as compared to hard copy charts traditionally used in ship navigation. International standards on the training necessary for the safe use of ECDIS are currently being considered by the IMO. Also referred to as eNavigation.
Export Document Fee. A charge levied by airlines in Australia for handling the documents for each shipment they carry. See also IDF.
Electronic Data Interchange. The transfer of structured data from one computer to another.
Electronic Data Interchange (EDI) for Administration, Commerce and Transport.
Export Document Number, or Export Declaration Number - A number assigned by the Australian Customs ICS computer system to an Export Declaration - can be the Customs Authority Number (CAN) that authorises the exportation of goods. See CAN.
Electronic Delivery Order.
Emergency Fuel Adjustment Factor. Another term used by shipping lines to describe a surcharge for bunker fuel that they apply to an ocean freight rate. See Emergency Fuel Surcharge.
Environmental Fuel Surcharge. See LSFS for a full explanation.
See Emergency Fuel Surcharge.
Electronic Funds Transfer.
Equipment Handover Charge. Sometimes also termed LoLo. Charge levied by the carrier on the exporter or importer. An administrative charge to partly cover the cost of delivering/receiving an empty container to the exporter/importer at a container depot.
Equipment Imbalance charge - Destination. See Equipment Imbalance Surcharge.
Electronic Import Delivery Order.
See Equipment Imbalance Surcharge.
Equipment Imbalance charge - Origin. See Equipment Imbalance Surcharge.
EMERGENCY FUEL SURCHARGE (EFS) This charge, imposed by airlines and shipping lines, was introduced in the years 1999-2000 to recover the increasing costs of fuel for aircraft and ships. The airline charge is usually a 'per kg' cost over the basic per kg freight rate, and in the ocean trades, is either a flat charge per container, or a percentage surcharge applied to the base freight rate.
Equipment Handling Charge - Destination. See L/O - L/O (Lift-On Lift-Off Charge).
Equipment Handling Charge - Origin. See L/O - L/O (Lift-On Lift-Off Charge).
Information sent electronically to the Department of Agriculture and Water Resources usually 96 hours before the arrival of the ship at the first Australian port of call in order to obtain health clearance - pratique. Now operated under the MARS system.
EQUIPMENT IMBALANCE SURCHARGE
A surcharge on an ocean freight rate, imposed by shipping lines, to recover costs related to removing large quantities of empty containers from a country or countries where there is no export use for those containers that had been previously imported into those places. The charge is usually a flat rate per container, and it is not necessarily applied in all trades or at all times, rather it is only applied when such trade imbalances necessitate large expenditure on shifting empty containers from one place to another.
Export Receival Advice form used to detail the information required for the admission of cargo into the wharf area for loading onto ships.
Emergency Risk Surcharge - also called Piracy Risk Surcharge and Gulf of Aden surcharge. A charge per TEU introduced by shipping lines in 2008 to cover increased costs associated with the risk of piracy off East Africa and in the Gulf of Aden and the western Indian Ocean.
Estimated Time of Arrival.
Estimated Time of Departure.
Estimated (or Expected) Time of Sailing.
Elevating Transport Vehicle. A vehicle used for transporting cargo containers and pallets within airport cargo terminals.
A naturally occurring gas. All fruits release small amounts of Ethylene (C2H4), some release larger amounts during ripening than others, e.g. Apples, Peaches, Pears etc. Excess amounts can accelerate the ripening process. Lowering the temperature reduces the respiration and therefore the heat. Slowing the ripening process by refrigeration will reduce expression of Ethylene and prolong the shelf life.
European Union. A free trade agreement between European nations that also includes mutual agreements on non-trade issues.
The evaporator coil is the part of the reefer machinery which affects the heat transfer from the circulating air in the container to the refrigerant circulated within the refrigeration system. (Ref. SAL Fact Sheet 5/98).
Often used in airfreaight, 'ex' is a prefix meaning out of or from e.g. ex LHR would be flight leaving London Heathrow (LHR).
Excluding rust, oxidization and discolouration.
Part of the reefer container machinery. The valve allows the liquid refrigerant to move from the warm high pressure environment of the condenser output to the cold, low pressure environment of the evaporator input. Another function is to regulate the amount of refrigerant that flows through the evaporator.
EXPRESS BILL OF LADING
The term also refers to Express Release of Cargo. When the original Bill of Lading is presented to the carrier at the port of shipment with a request to instruct the carrier's agent at the destination to release the cargo without the presentation of the original Bill of Lading. The carrier would usually undertake a checking procedure before the cargo is released.
Incoterm specifying that the seller fulfils his obligation to deliver when he has made the goods available at his premises, to the buyer. In particular, the seller is not responsible for loading the goods on the vehicle or clearing the goods for export, unless otherwise agreed.
FAIR WORK COMMISSION
Created under the Fair Work Act 2009 as Australia's national workplace relations tribunal.
Fuel Adjustment Factor. See Bunker Adjustment Factor for more information.
Fairway Dues are a two part charge on cargo and vessel gross tonnage collected by the Swedish and Finnish governments to cover costs incurred in the construction, maintenance and care of public fairways used for navigation, and safety devices required by waterborne traffic, and from assistance provided by icebreakers.
FAK (Freight all Kinds)
A term used in sea and air freight business.
1. FAK Rate: A flat rate per container, or per unit of weight/measurement, regardless of the type of cargo.
2. FAK Container: A groupage or consolidated container, containing an assembly of compatible cargo belonging to different parties.
A container with inbuilt forced ventilation fans.
Free Alongside Ship. Incoterm which means that the seller fulfils his obligation when the goods have been placed alongside the ship on the wharf or in lighters at the named port of shipment.
First Available Vessel.
1. A FIATA form - (negotiable FIATA Multimodal Transport Bill of Lading).
2. Also used generally to denote a Forwarder's Bill of Lading (see House Bill of Lading).
FC and S
Free of Capture and Seizure, i.e. excluding war risks.
Free Carrier (INCOTERM).
Full Container Load. The shipper packs the container and utilises the space exclusively for his own cargo and presents the container to the carrier. It is not necessary for all the space to be utilised; that is the shipper's option.
Full Container Load/ Full Container Load. Also called House/House movement. A term used to describe a delivery whereby a container is packed by the exporter or forwarder and unpacked by the consignee. The shipping line receives and delivers the cargo as a sealed container unit.
Forwarders Certificate of Receipt (an FIATA form).
Forwarders Certificate of Transport (an FIATA form).
An ABF term referring to full container loads with multiple bill of lading destined for the one unpack address. For Department of Agriculture and Water Resources purposes this is the same as FCL.
A vessel employed in short sea trades to carry cargo between main ports and smaller ports where deep-sea ships do not call. Feeder ships usually operate from larger hub ports such as Singapore.
Forty Foot Equivalent Unit. The acronym of the measurement unit used to describe the space occupied by a 40ft container in a container vessel.
Forward Freight Agreement. Freight derivatives providing a means of hedging exposure to freight market risk through the trading of specified time charter and voyage rates for forward positions. Settlement is effected against a relevant route assessment, usually one published by the Baltic Exchange.
FIATA Forwarding Instructions (a FIATA form).
An IATA term (Consolidation List Message) - A standard CargoIMP message identifier used to provide a Check-list of House Waybills (HAWB's) associated with a Master Air Waybill (MAWB).
(English) International Federation of Freight Forwarders Associations. A Switzerland based organization that represents the interests of freight forwarders worldwide.
The current list of standard FIATA forms comprises:
· FIATA FCR (Forwarders Certificate of Receipt).
· FIATA FCT (Forwarders Certificate of Transport).
· FWR (FIATA Warehouse Receipt).
· FBL (negotiable FIATA Multimodal Transport Bill of Lading).
· FWB (non-negotiable FIATA Multimodal Transport Waybill).
· FIATA SDT (Shippers Declaration for the Transport of Dangerous Goods).
· FIATA SIC (Shippers Intermodal Weight Certificate).
· FFI (FIATA Forwarding Instructions).
Free In and Out. Cargo to be loaded and discharged free of expense to the ship owner/operator.
Free into Store (see DDP) not a current Incoterm.
The term used to signify that negotiations to charter a ship have been completed and the ship is now fixed for the agreed business. The negotiating process is called fixing.
Used in relation to the nationality of a ship that is flown from the stern of a commercial ship. Nationality is further indicated by the Port of Registry. The UN Convention on the Law of the Sea confers the right of a country to fix conditions for the registration of ships in its territory.
FLAG OF CONVENIENCE (FoC)
See Open Register.
The lowest temperature under very specific conditions at which a combustible liquid produces enough vapour to form an inflammable mixture with air.
FLAT RACK CONTAINER
A container with open sides and collapsible ends. Some are fitted with side gates and roof tarpaulins.
A very large plastic bag that is fitted to the inside of a general purpose shipping container for carrying liquids, powders and granules.
Goods lost by shipwreck or cast overboard which remains afloat.
The U.S.A Federal Maritime Commission, which governs maritime transport.
Free On Board. Incoterm that means the seller delivers the cargo when the goods pass the ship's rail at the named port of loading. This means that the buyer has to bear all costs and risks of loss or damage to the goods from that point. The FOB term requires the seller to clear the goods for export.
This term is used widely in the international freight industry to describe the variety of costs and charges that arise in moving cargo from the Ex-Works point up to the 'Free-On-Board the vessel or aircraft point'. FOB's therefore will include such costs as cartage from Factory door to export depot or vessel/aircraft; export clearance and handling costs, export document fees and other costs incurred to load the goods on board the vessel or aircraft.
Free of Damage Absolutely.
FOOD QUALITY SURCHARGE
A charge imposed by shipping lines to cover costs incurred in the preparation and cleaning of containers to bring them to a standard fit for the purpose of carrying food.
Free on Rail (An obsolete Incoterm).
Literally, an irresistible force or an event beyond control. It is a clause used in contracts of sale to stipulate which events shall not be deemed as events causing frustration, and as such these listed events shall cause postponement of the contract, rather than outright termination.
Accidental; Produced by chance or fortune.
Free on Truck (An obsolete Incoterm).
Federation of National Associations of Ship Brokers and Agents. A London based organisation that provides a united voice worldwide for shipbrokers and agents.
A form completed by the shipper or his agent containing instructions for the forwarding of the goods. This is the source of cargo details for the carrier to complete the Bill of Lading and other documentation.
FOUL BILL OF LADING
See Claused Bill of Lading.
Free of Particular Average. In marine insurance, means that the insurer is not responsible for partial losses other than a general average partial loss.
FREE CARRIER (FCA)
(INCOTERM) Goods are delivered free, cleared for export, to a named carrier at a named point.
FREE ON BOARD (FOB)
(INCOTERM) See FOB.
A period, usually about three days that a FCL is allowed to remain at a container terminal before storage costs/demurrage start to be applied.
The use of this word dates back to the 15th and 16th centuries, and its usage has evolved to have several meanings. The strict shipping line usage is that 'freight' means the amount payable to the carrier for the carriage of the cargo, and they do not use the word to describe the cargo itself. However, the word 'freight' is widely used throughout the world to describe the cargo, whether it be a single piece, or an entire load.
FREIGHT ALL KINDS (FAK)
Freight rate applicable to all types of goods and therefore is not restricted to a particular commodity. FAK freight rates are quoted primarily by under carriers to consolidators (NVOCCs and air freight consolidators) who fill shipping containers with different kinds of cargoes received either from different shippers or for different consignees or both. While the consolidator may charge its clients on a commodity-specific basis, it pays the under carrier a predetermined FAK rate.
A financial instrument's value that is derived on the future levels of freight rates, such as dry bulk freight rates and tanker rates. Freight derivatives are used most often by end users such as ship owners and charterers to mitigate risk and hedge against price spikes in the supply chain.
A company that manages the logistics of shipments on behalf of the exporter/importer. Services might include transportation, storage, documentation, payment of charges and delivery.
FREIGHT FORWARDERS SHIPPING RATE
The forwarder's shipping rate is the freight rate agreed between the shipper and forwarder before shipment.
The charge levied by the shipowner/operator on either the weight of the cargo, its volume measurement or as a per container rate for the ocean movement of the cargo. It is the main source of revenue for the carrier.
FREIGHT TONNE (TON)
In Ocean shipping, the base tonne (i.e. 1000kg = 1 m3) to which the freight rate is applied and from which the freight amount is calculated. Also called w/m tonne, meaning weight or measurement tonne. Example: A shipment has a weight of 2500kg and a volume of 3.50m3. It will be rated as 3.50 freight tonnes, or 3.50 w/m tonnes; i.e. the higher of the weight or measurement.
A term used to indicate the typical flow of the transportation of cargo from the main loading areas to the main discharging areas.
Different products have different carrying temperature levels and these should be consulted. This is an explanation only. For frozen cargo usually 'dead cargo' such as meat, the carriage temperature is usually about minus 20O C. Frozen have a different packing profile; it is only necessary for the air to circulate around a the periphery of the load - a block stow, one that has no deliberate spacing between any of the packages or pallets. For frozen cargo the temperature is controlled by the return air temperature sensor.
See Fuel Surcharge.
See Fuel Surcharge.
Now applied in all modes of transport.
1. A surcharge applied to an airfreight rate. Usually applied as xx number of currency units per kilogram of cargo, sometimes applied to the actual weight, but commonly applied by forwarders against the chargeable weight.
2. Ocean transport see 'Bunker Adjustment Factor'.
3. Domestic Land Transport in Australia - usually applied as a percentage surcharge against the base freight rate.
4. International couriers - usually applied as a percentage surcharge against the base freight rate.
Free Trade Agreement.
Full Truck or Trailer Load.
FULL CONTAINER LOAD
1. IATA term - Standard Cargo-IMP message identifier for electronic Master Air Waybill.
2. An FIATA form - non-negotiable FIATA Multimodal Transport Waybill.
FIATA Warehouse Receipt (A FIATA form).
An overhead crane used widely in container terminals that can straddle a rail line or road. Containers can be lifted with a hoist that can traverse horizontally on a beam that joins the legs of the crane at the top to lower the container alongside the rail line or road to be picked up by another machine - forklift or straddle carrier.
The last airport or port within a country from which a shipment departs for an international destination, and the first airport or port at which a shipment arrives from an international origin.
General Agreement on Tariffs and Trade. An agreement signed by most trading nations in 1947 that was designed to provide an international forum that encouraged free trade between member states. It was planned to achieve this by regulating and reducing tariffs on traded goods and providing a common mechanism for resolving trade disputes. The World Trade Organisation was formed as the successor to GATT.
Gross Domestic Product represents the total value (AUD) of all goods and services produced in a country over a specific period. Usually expressed as a comparison with the previous period to enable a comparison to be made and trends indicated.
GDP PER CAPITA
GDP value divided by population which is a further measure of the productivity of a country and an indicator of involvement in international trade.
Uniform General Charter Party (1994) produced by BIMCO.
A principle of Maritime Law that arises when an extraordinary sacrifice or expenditure is voluntarily made to save a common venture. The principle requires all parties to the venture to contribute to the losses and expenses incurred. The contributions are determined by each party's share of the value of the whole venture.
GENERAL AVERAGE DEPOSIT
A security deposit payable, when cargo is liable for a general average contribution, to the shipowner to obtain release of the cargo. See General Average Guarantee.
GENERAL AVERAGE GUARANTEE
A guarantee given in lieu of a monetary deposit, to the shipowner by an underwriter, to:
1. Remove the lien and obtain release of the cargo; and
2. As security for the payment of the general average contribution.
See also Average Bond.
Term applied to dry cargo, not liquids, that is not carried in a container and which might include timber, steel, bales/bags/drums and machinery. Ships suitable for carrying this type of cargo are often referred to as General Cargo ships.
GENERAL SALES AGENT
A General Sales Agent (GSA) is a sales representative for an airline in a specific country or region. Typically, the GSA is responsible for selling cargo space. A GSA will typically sell products from multiple airlines.
Formerly a German classification society which ceased to exist in 2013 and merged with the Norwegian society Det Norske Veritas (DNV) as above.
Global Financial Crisis also called the Global Recession. The financial crisis brought about by a complex interplay of valuation and liquidity problems in the United States and Europe from 2006 that was termed as the worst financial crisis since the Great Depression of the 1930s.
A term that generally used in economic terms, that describes global distribution of goods and services to be achieved through reduction in barriers to international trade such as tariffs, export fees, quotas and subsidies.
Garments on Hangers (loose in a shipping container).
A container that has been fitted out with special racks to accommodate the stowage of Garments on Hangers.
The charge levied by shipping lines for supplying and installing the special racks in a container to accommodate the stowage of Garments on Hangers.
General Purpose shipping container. Refers to a standard 20ft or 40ft dry container.
The maximum space available for cargo measured in cbm, the measurement being taken to the inside of the shell plating of the ship or to the outside of the frames and to the top of the beam or underside of the deck plating. It is a measurement of capacity for cargo like grain, where the cargo flows to conform to the shape of the ship.
General Rate Increase - A term used by shipping lines to label a general increase in ocean freight rates on particular trade routes. Also sometimes called RR = Rate Restoration.
GROSS TONNAGE (GT)
The internal cubic measurement of all enclosed spaces within a ship's hull and superstructure. Calculated to a formula of 1GT to a little less than 3 cbm. Mostly used as the basis for port charges.
Also called Consolidation. The consolidation (grouping) of LCL consignments into a container.
An agent who consolidates LCL cargo into containers for subsequent presentation to the shipping lines as FCL's.
Generalized System of Preferences - A global program designed to promote economic growth in the developing world by providing preferential duty rates for goods from developing countries. Australia is a participant in this program. The GSP origin certificate Form A is still used widely around the world. Visit website unctad.org for more information.
The Australian Tax known as the Goods and Services Tax. Not applicable to export goods, but is payable on most import shipments, and domestic sales. Some classes of goods, such as certain foods and medicines are exempt.
GULF OF ADEN SURCHARGE (GOA)
Same as Emergency Risk Surcharge - also called Piracy Risk Surcharge. A charge per TEU or per w/m introduced by shipping lines in 2008 to cover increased costs associated with the risk of piracy off East Africa and in the Gulf of Aden and the western Indian Ocean. The Charge is passed on by consolidators to customers as a rate per w/m for LCL cargo.
A code of rules, adopted under international convention in 1924, for the carriage of goods by sea. The rules specify the responsibilities, liabilities, rights and immunities of ocean carriers.
The amended Hague rules, altered by the Brussels protocol of 1968.The amendments arose because it was considered that the original Hague rules were too advantageous to the ocean carrier. Australia's Carriage of Goods by Sea Act embodies the international convention of the Hague-Visby Rules.
HALF HEIGHT CONTAINER
An open top container with or without a soft cover/tarpaulin, either 4ft or 4ft 9in high (1.12m - 1.45m).
The Hamburg Rules are a revision of the Hague-Visby Rules. They were established at a United Nations Conference in Hamburg in 1978, and have the effect of increasing the liability of ocean carriers. These rules have been surrounded by controversy, and have not yet been adopted by Australia.
Dry bulk carriers in the 40,000 to 64,999 dwt range.
A term used to describe smaller dry bulk carriers in the 10,000 to 39,000 dwt range.
Usually employed by a port authority to direct and coordinate all maritime activities within a port. This will include enforcement of relevant regulations governing ship movements within the harbour limits and issuing instructions in accordance with policies of the Port Authority. Customarily the Harbour Master will be a Master Mariner. Other responsibilities will depend on the type of port.
The opening or access in a rectangular or square form on the deck of a ship through which cargo passes either to be stowed below deck or, being discharged. It is usual to have one hatch opening per hold in the ship.
House Air Waybill i.e. A Waybill issued by a Forwarder or Consolidator, as distinct from a Master Air Waybill issued by an airline.
See Hazardous Surcharge.
See Dangerous Goods.
A surcharge applied by shipping lines for the carriage of hazardous cargo. Usually applied as a fixed amount per bill of lading, but could be applied as xx number of dollars per freight tonne of cargo.
See House Bill of Lading.
See High-Cube (container).
Handling (as in handling charge).
That section of the reefer machinery in which high pressure, high temperature sub-cooled liquid transfers heat to the low pressure, low temperature super-heated vapour returning to the compressor. This results in increased efficiency and safety.
See Overweight Surcharge.
See Half Height (container).
Refers to a container than instead of being the conventional 8'6" high is 9'6" high. This is usually a 40ft container and increases the cubic capacity.
HIGH SECURITY SEALS SURCHARGE
A charge levied by a shipping line to the shipper/consignee for affixing an approved seal to a container that has been received from a shipper with no seal affixed, or with an inadequate seal affixed.
Hectolitre - A unit of volume equivalent to 100 litres.
HOUSE BILL OF LADING
A Bill of Lading issued by a cargo consolidator or freight forwarder to the shipper. It is not accepted by the Carrier as sufficient evidence of the ownership of the cargo covered by the Bill.
See FCL/FCL. A shipment of goods from the shippers premises through to the consignee's premises.
Harmonized System. The International Convention on the Harmonized Commodity Description and Coding System.
The Harmonized System classification code number.
The property of absorbing moisture from the air. An example of hygroscopic is what makes honey have a long shelf life from pulling moisture out of the air.
International Air Transport Association. The international organisation of airlines that regulates conditions of operation, safety, schedules, and pricing for international air transport.
International Civil Aviation Organisation. Whereas IATA is an association of airlines, ICAO is an association of government bodies that suggests and attempts to set globally standard rules and terms for civil aviation, including the technical standards that relate to the carriage of Dangerous Goods.
International Chamber of Commerce based in Geneva.
(1) International Chamber of Shipping (2) Integrated Cargo System - Australian Customs Service computerised cargo reporting system, made operational in 2004. (3) European Union 'Import Control System'.
Inland Container Depot. A terminal away from the port where containers, and other cargo, can be moved to undergo Customs clearance. Often used to relieve congestion at the ocean terminal.
Import Document Fee. A charge levied by airlines in Australia for handling the documents for each shipment they carry.
International Cargo Handling Co-ordination Association.
An aircraft container, the shape of which is contoured to fit the shape and dimensions of an aircraft cargo hold.
Intermodal Logistics Centre.
International Maritime Bureau.
International Maritime Dangerous Goods Code. The IMO recommendations for the carriage of dangerous goods by sea.
International Monetary Fund. International institution engaged in advising countries of strategies to correct trade imbalances and in supporting currencies of countries experiencing financial difficulties.
International Maritime Organisation. The United Nations agency dealing with maritime affairs on behalf of member countries. The IMO provides a forum where countries discuss and formulate international policy on shipping matters. Based in London.
Ship Identification Number. The ship number consists of the three letters IMO followed by a unique seven-digit number assigned to sea-going merchant ships under the International Convention for the Safety of Life at Sea (SOLAS). The number must be visible on the ship at some distance to enable identification.
Imperial system uses measurements in non-decimal units including feet, inches, pounds and ounces. At this time, only three countries, Burma, Liberia, and the United States of America have not adopted the International System of Units (or metric system) as their official system of weights and measures.
Intermodal Fuel Surcharge. Shipping line cost recovery surcharge applied to inland movements of containers in the USA and Canada.
See Arbitrary Charges.
International commercial terms and abbreviations developed by the International Chamber of Commerce identifying parties responsibilities under different shipment terms which cover all modes of transport.
A term used in relation to cargo signifying a fault in the goods themselves, or in their packing causing deterioration, loss or damage without any person being at fault.
The International Code for the Safe Carriage of Packaged Irradiated Nuclear Fuel, Plutonium and High-Level Radioactive Wastes on board Ships as adopted and amended by the IMO.
International Maritime Satellite Communications. Inmarsat owns and operates a global satellite network, offering mobile and fixed communications services for maritime, enterprise, government & aviation.
Unable to satisfy creditors or discharge liabilities.
Clauses in a marine insurance policy which have been standardised for the trade by the American Institute of Marine Underwriters. The London Institute Clauses, used by the British market and internationally, are those adopted by the Institute of London Underwriters.
INSTITUTE OF CHARTERED SHIPBROKERS
The professional body to commercial shipping worldwide representing all sectors of shipping. London based.
A container possessing protective insulation to minimise the effect on cargo of external temperatures.
For an insurance policy to be valid, the assured must have an 'insurable interest' in the goods. This is defined as the insured being so related to the goods that he will benefit from their survival, or suffer loss or liability if they are damaged or lost.
In marine and transit insurance - generally 110% of the CIF value of the goods.
An amount to be paid for a contract of insurance.
INTER ALIA (LATIN)
Amongst other things.
Serving as an intermediate agent or agency.
A term to describe the interface where different modes of transport might be used to transport cargo.
INTERNATIONAL ORGANIZATION FOR STANDARDIZATION
The International Organization for Standardization is an international standard-setting body composed of representatives from various national standards organizations. Founded on 23 February 1947, the organization promotes worldwide proprietary, industrial and commercial standards. It is headquartered in Geneva, Switzerland, and works in 164 countries. It was one of the first organizations granted general consultative status with the United Nations Economic and Social Council.
Turning a piece of cargo upside down.
International Offshore Financial Centre. A country that offers incentives for businesses to locate their operations there. Widely used by companies to register their ships in those countries due to the material advantages offered by the country. Examples are Panama, Liberia, Bahamas, Honduras, Vanuatu, and Marshall Islands and are known as Open Register countries.
The ISM Code is the International Management Code for the Safe Operation of Ships and for Pollution Prevention. The purpose of the Code is to provide an international standard for the safe management and operation of ships and for pollution prevention. In relation to insurance of cargo, it is now a common requirement in policies that shippers ensure their goods are carried on vessels with current ISM compliance certification, failing which, the insurers may refuse to pay claims. See the IMO website for the text of the ISM code, and see the ISM insurance clauses on the Joint Cargo Committee page of the LMA website www.lmalloyds.com
International Standards Organisation maintains standards for business, government and society. Standards, e.g. dimensions, for containers internationally were developed and are managed by ISO.
International Standards for Phytosanitary Measures. See ISPM 15.
ISPM 15 denotes International Standards for Phytosanitary Measures number 15 - The Guidelines for Regulating Wood Packaging in International Trade. It aims to reduce the risk of unprocessed raw wood being used as a pathway for the introduction and the spread of pests and diseases.
Australia has regulated the import of timber packaging for many years and requires that all wood packaging be free of bark and may be subject to inspection and/or treatment depending on the mode of transport. (See the articles on this and other Biosecurity related issues in the relevant chapter in the manual).
ISPS (INT'L CODE)
The International Ship and Port Facility Security (ISPS) Code. For a detailed explanation see the Website of the IMO at http://www.imo.org/en/OurWork/Security/Guide_to_Maritime_Security/Pages/SOLAS-XI-2%20ISPS%20Code.aspx.
International Association of Dry Cargo Shipowners.
Involving the transportation by more than one form of transport during a single journey. In the movement of cargo by sea an intermodal transfer takes place at a port from the ship to land transport and the reverse.
International Association of Independent Tanker Owners.
A fee charged by Shipping Lines, Stevedores and others to recover costs associated with the implementation and management of security measures in compliance with the ISPS Code, introduced by the IMO (and the Australian government) in July 2004.
(IATA) The carrier who issues the Air Waybill.
International Terminal Fee. A charge applied at Australian Airports by Air Freight Forwarders to cover the cost of handling cargo and documents.
Goods which are cast into the sea where they sink and remain below the water surface.
The deliberate throwing overboard or destruction of cargo or ship's tackle to lighten the ship in a storm or to assist in saving the ship when in danger. The loss occasioned by a properly justified jettison is the subject of general average contribution.
The recommended unit for measuring energy and heat.
Kilogram. One Kg = 2.20462 LBS.
KNOWN OR UNKNOWN SHIPPER
The Aviation and/or maritime security status of a shipper/consignor of cargo. Also called Frequent/Infrequent shipper. In Australia the term for known shipper is Regular Customer. See the Chapter on Aviation Security for more information on the subject.
Cargo jettisoned and buoyed so that it may float and be recovered.
Descriptive term for an overland transit coming between two ocean passages during a container's journey from origin port to destination.
The unit of measurement of capacity of Roero vessels and PCC/PCTC which is calculated by multiplying the deck length in metres by the cargo deck width in lanes.
Lighter Aboard Ship. Also barge carrier or barge-carrying vessel. A ship capable of lifting barges by crane over the stern of the ship. Different configurations and capacities with some able to carry over 24 barges and carrying barges which might contain 600 to 1000 tonnes of cargo either in bulk or in containers. The barges float and can be towed to upriver berths for load/discharge. Formerly widely used in trade from US Gulf to Europe and Europe to West Africa. A variation on LASH but similar cargo handling method - SeaBees.
To secure cargo either in a hold or on deck to prevent movement.
A defect in cargo not immediately apparent.
A clause in charter parties that enables either party to cancel a fixture if certain conditions are not met. This might include the ship arriving after the agreed commencement of the presentation date.
Period calculated for a ship under voyage charter to load/discharge cargo under a Charter Party.
The symbol used to describe the weight measurement unit Pounds.
Less than Container Load. A small consignment that on its own will not fill the container to its capacity. For example personal effects.
Also called Pier/House movement. Exporters or forwarders deliver loose cargo to the ship's depot (container base or container freight stations). The ocean carrier packs all the loose cargo into a container and loads onto ship. At destination, the full container is delivered to the consignee for unpacking at his premises.
Also called Pier/Pier movement. Cargo is delivered 'loose' to Container Freight Station (CFS) and packed for shipment by ocean carrier. At destination, the cargo is then unpacked from the container at the ocean carrier's unpacking facility.
Luxury Car Tax. An import tax applied to passenger motor cars entering Australia and which exceed a prescribed value.
Length Between Perpendiculars. The distance on the summer load water line from the fore side of the stem to the aft side of the rudder post or to the centre of the rudder stock if there is no post.
See Letter of Credit.
LETTER OF CREDIT
The full definition of this term is provided by the ICC in their booklet 'Uniform Customs and Practice for Documentary Credits'. It reads:
For the purposes of these articles, the expressions documentary credits and standby letter(s) of credit used herein (hereinafter referred to as credit(s)), mean any arrangement, however named or described, whereby a bank (the issuing bank), acting at the request and on the instructions of a customer (the applicant for the credit),
1. is to make a payment to or to the order of a third party (the beneficiary), or is to pay or accept bills of exchange (drafts) drawn by the beneficiary, or
2. authorises another bank to effect such payment, or to pay, accept or negotiate such bills of exchange (drafts) against stipulated documents, provided that the terms and conditions of the credit are complied with.
LETTER OF INDEMNITY
A Guarantee document, usually countersigned by a bank, which indemnifies the shipowner against any risk or claim which may arise. Such documentary undertakings are given to the ship owner to allow a consignee to take delivery of cargo in instances where Bills of Lading have been lost or delayed.
Lexan is a polycarbonate resin thermoplastic.
LIFT ON/LIFT OFF (LO/LO)
Charge by the carrier for lifting of an FCL from the truck upon receipt at a depot or container yard. Term is also used when import FCL's are lifted at the ocean carriers facility onto the importers or forwarders truck. Also called EHC.
A specialised, large packing case used for personal effects.
An open or closed vessel from where cargo may be loaded/discharged. Often used when the depth of water in the port is shallow and the ship is unable to berth alongside the wharf.
A clause on a Bill of Lading that provides the carrier with a legal right for any amount due and entitles the carrier to sell or auction the cargo to recover outstanding amounts.
The weight of the empty ship's hull including the superstructure and machinery. Used when the ship is being sold for scrap.
A ship on a regular schedule, loading and discharging at specified ports of call.
Loading and discharge of the ship is carried out by the shipowner/operator for which the ocean freight paid by the cargo owner, covers the cost.
A ship employed on a regular schedule calling at specified advertised ports.
Gas is liquefied prior to export by a liquification train which removes the CO2 and by-products and acts like a giant refrigerator, freezing the gas cryogenically (to minus 162 degrees Centigrade) so that it is reduced to on six-hundredth of its gaseous volume. When the frozen LNG arrives at the customer's port, it is discharged into tanks and gradually vapourised back into its gaseous form.
LLOYD'S OPEN FORM
A printed form used in the contract of any salvage operation whereby the salvor is only remunerated on a no cure no pay basis and the award if successful is agreed upon beforehand by the master and/or owners with the salvors. In case of no agreement reached the parties will go to arbitration.
LLOYD'S REGISTER (LR)
A diversified group involved in oil and gas, process industries, nuclear and rail. Primarily in relation to shipping Lloyd's is Classification Society providing standards of and rules for the construction and maintenance of ships.
LLOYD'S REGISTER OF SHIPS
A catalogue of ships describing each ship - dimensions, age, ownership, place of construction and other important information used by industry and regulatory authorities. Data is mostly accessed electronically from a database.
Liquified Natural Gas. A naturally occurring gas that has been cooled to -162°C. At this temperature the gas turns into a clear, colourless, non-toxic liquid that is 600 times smaller in volume than in its gaseous state making it easier to transport.
Length Overall. The extreme length of the ship.
Also Plimsoll Line. An internationally recognised mark painted midships on both sides of commercial ships to indicate, together with associated markings, the maximum safe loaded draught of a ship under different conditions of weather, season, water salinity and location.
A certificate issued by a government authority or an authorised classification society confirming the assignment of loadlines in accordance with Measurement regulations.
A charge levied by the shipowner/operator to cover the cost of handling and delivering the empty container. Also known as Equipment Handover Charge.
An official book kept by the Master of the ship where all accidents and general navigation management are carefully recorded.
For a complete explanation see the article in Wikipedia at http://en.wikipedia.org/wiki/Logistics, which opens with the following definition:
Logistics is the management of the flow of goods, information and other resources, including energy and people, between the point of origin and the point of consumption in order to meet the requirements of consumers (frequently, and originally, military organizations). Logistics involves the integration of information, transportation, inventory, warehousing, material-handling, and packaging. Logistics is a channel of the supply chain which adds the value of time and place utility.
The Wikipedia article covers the following subject material relaying to logistics: Origins and definition, Logistician, Military logistics, Logistics management, Definitions of logistics outsourcing (3PL), Clarification of definitions of third-party logistics, Logistics Management Software, Business logistics, and Production logistics.
A shipping weight of 2240 lbs.
LONDON TANKER BROKERS PANEL (LTBP)
A group of independent tanker brokers based in London who determine the average charter rates for tankers. Those rates are known as Average Freight Rate Assessment (AFRA) rates.
On an aircraft, the deck (or compartment) below the main deck. Also called Lower Hold.
LOWER DECK CONTAINER
An aircraft container (ULD) that is shaped to fit the contours and/or dimensions of the aircraft's lower hold. These ULD's, as with main deck containers come in a variety of sizes and configurations.
See Lower Deck.
LOW NITROUS OXIDE EMISSION SURCHARGE
LOW SULPHUR FUEL SURCHARGE
Liquified Petroleum Gas such as Propane and Butane carried on special ships below -100°C.
Low Sulphur Fuel Surcharge (ocean freight surcharge) also named EFF and MAR. Under the international convention relating to Marine Pollution (MARPOL), shipping lines are required to use fuel oil with a low sulphur content. The extra cost of the fuel is passed on to shippers through a surcharge, which is charged usually as a fee per container. The charge was introduced in 2006 in relation to ships crossing the Baltic Sea but has been since extended to other areas.
LUMP SUM FREIGHT
A fixed freight amount agreed to be paid irrespective of the amount of cargo loaded.
Cubic Metre - Also denoted as cbm or CBM.
Ministry of Agriculture and Fisheries - New Zealand.
Also known as Roll Trailers these are trailers designed to be used for the transport of large heavy units, but can also be used for most types of general cargo and containers. MAFI trailers are frequently used for transporting cargo into or and out of the lower decks of a vessel, where the cargo is taken off trailer and stowed loose and secured.
On an aircraft, the upper, and larger cargo hold. In a passenger aircraft, the passengers sit on the main deck.
An inventory detailing the particulars of all cargo and passengers on board a ship.
Low Sulphur Fuel Surcharge (ocean freight surcharge) See LSFS.
Insurance taken out to insure cargo against risks associated with the carriage of goods by sea, e.g. loss or damage in transit.
Notices issued by the Australian Maritime Safety Authority under the authority of the Navigation Act 2012. These Notices advise the shipping industry and other interested parties, of matters such as the application of new regulations or pending implementation of new regulations.
MARITIME LABOUR CONVENTION (MLC)
A convention developed by the International Maritime Organisation (IMO). The convention establishes rights and protections at work for the world's seafarers and aims to achieve decent work arrangements for seafarers and secure economic interests in fair competition for quality shipowners. Australia is a signatory to this Convention.
MARKS AND NUMBERS
Literally the marks, numbers and/or labels applied to cargo packages. It is vital, to prevent misidentification and loss, that cargo shipped loose either by air, sea, road or rail, is adequately marked with identifying details, preferably, with consignee name and address, and, when second hand packaging is used, that all old markings, labels, addresses, etc. are removed. It is worthy of note that carriers will reject liability for the loss of loose cargo that is insufficiently marked and/or labelled.
The International Convention on the Prevention of Pollution from Ships. Australia is a signatory to this Convention.
Maritime Arrivals Reporting System introduced in 2016 by the Australian Department of Agriculture and Water Resources. MARS must be used by all international vessel masters and shipping agents who undertake functions to meet Department pre-arrival reporting requirements and associated biosecurity vessel clearance at the Australian border.
Mass is a measure of how much matter is in an object. An objects mass is the same where ever you are, an objects mass never changes, that's because the amount of matter an object is made of doesn't change.
The Captain of a merchant vessel.
MASTER BILL OF LADING
In the Liner Trade a document issued by the carrier which is a receipt for the goods loaded on a ship and is the evidence of a contract of affreightment between the carrier and the shipper. The Bill is also evidence of title to the goods described and specifies the carrier's terms and conditions of carriage. For a ship under charter the function of Bill, usually produced by the Charterer to be signed by the Master/Agent, will be specified in Charter Party. There are many types of Bills: see separate entries for Received for Shipment, Express, House, Through, Claused, Combined Transport.
The Modernised Australian Ship Tracking and Reporting System. This system is used to track the location of vessels and is operated by the Australian Maritime Safety Authority (AMSA). Operating requirements of ships is described in Marine Order 63 Vessel Reporting Systems, effective 1 January 2016.
A receipt signed by the Chief Officer of a commercial ship acknowledging that the cargo listed on the Receipt has been loaded on the ship. It may be claused by the Chief Officer if necessary drawing attention to the condition of the cargo. It is not normally used for container terminal loadings.
Any circumstance or fact that a prudent underwriter would be affected by in determining risk acceptance and premium level.
Master Air Waybill (i.e. An Air Waybill issued by an airline, either directly to an exporter, or to a forwarder).
The Mecanum wheel is an omnidirectional (move in any direction) wheel.
A naturally occurring organic process that is necessary for the life of the object which in fruit and vegetables leads to ripening.
A fumigant used to kill infestation in various commodities and to fumigate containers. An odourless and dangerous poison which is gradually being replaced by less toxic but equally effective chemicals.
Metric system is an internationally adopted decimal system of units for weights and measures.
A tonne of 1000 kgs equivalent to 2,204.6223 lbs.
MAXIMUM GROSS WEIGHT (MGW)
The maximum permitted weight of the container and its contents.
Maritime Industry Australia Limited. An industry association that represents the collective interests of maritime businesses, primarily those operating maritime assets of facilities from Australia. Formerly known as the Australian Shipowners Association.
This charge is applied in nearly all modes of transport, and is the lowest amount that will be charged for transporting a consignment between two ports.
Main Manifest Number - Australian Customs abbreviation for a main-manifest number under the ICS system.
Manifest Reference Number. Australian Customs abbreviation for a main-manifest number under the EXIT system - now redundant. See MMN.
Maritime Security Identification Card. A nationally consistent identification card issued to identify a person who has been the subject of a background check and has satisfied the minimum security requirements and needs to work unescorted in a maritime security zone. Issued to comply with the Australian Maritime Transport and Offshore Facilities Security Act 2003.
The Maritime Union of Australia. A registered trade union whose membership is made up of Australia seafarers and waterside workers.
A straight-run gasoline fraction boiling below kerosene. Used as a feedstock for refinery conversion and as a chemical feedstock.
A typical narrow-body airliner has a diameter of 3 to 4 m (10 to 13 ft). This allows for a single aisle in passenger aircraft, and seats between two and six people abreast.
A mixture of methane and ethane found in the earth's crust, often in association with oil.
NAVIGATION ACT 2012
Australian Federal legislation that comprehensively covers maritime affairs and includes sections that give effect to IMO Conventions.
These could take the form of lights, beacons, racons, signs, bouys, that are placed in a position to aid the safe navigation of the ship.
No commercial Value.
New Export System Fee - a fee charged by shipping lines and forwarders for making an electronic declaration to Customs of exports leaving the UK.
NET TONNAGE (NT)
The gross tonnage (GT) of the ship minus the cubic measurement converted to tonnage of non-revenue earning spaces such as the engine room.
A door at the front of the aircraft or 'nose' which can be raised above the cockpit for loading.
NOTICE OF READINESS (NOR)
Written notice usually from the Master of a ship to the charterer that the ship has arrived at the required port and is ready in all respects to load/discharge cargo as per Charter Party conditions.
An independent shipping line that is not a member of a conference or consortium.
Non-Operating Refrigerated Container.
No Risk After Discharge.
No Risk After Shipment.
Non-Vessel Operating Common Carrier. A Carrier (may be a Forwarder or Consolidator) who issues Bills of Lading for the carriage of cargo on vessels which he/she neither operates nor owns.
Original Bill of Lading.
See Over Dimensional.
OCEAN FREIGHT RATE
The freight charge for the ocean transport of cargo.
A measure of the detonation quality of gasoline. The higher the octane number, the higher the resistance to engine knock.
Origin Document Fee.
OFFICE OF TRANSPORT SECURITY (OTS)
Within the Australian Government Department of Infrastructure, Regional Development and Cities, OTS is the Government's preventative security regulator for the maritime and aviation sectors and primary adviser on transport security. OTS is responsible for administering an intelligence led, risk based preventative security regime for these sectors.
Origin Handling Charge - see OTHC and THC - ocean freight port charge.
A ship purposely built to carry petroleum products such as crude oil, in tanks.
System whereby containers are secured for carriage on a ship's deck. This usually means that the ship is fitted with location shoes and containers secured by lashings and twist-locks. On-deck carriage of non-containerised cargo is quite common and this cargo also requires securing.
See Out of Gauge and Out of Gauge Surcharge.
The term applied to those countries that maintain ship registration facilities that are open to all shipowners irrespective of the country of domicile of the actual shipowner. These countries operate in an open market environment and compete with each other to attract ship registration business. Financial incentives make it very attractive for shipowners to register their ships in those countries. Also referred to as Flag of Convenience countries and IOFC.
OPEN SIDED CONTAINER
A container with either a grille, shutters, or tarpaulin side(s).
OPEN TOP CONTAINER
An ISO container without a roof but covered with a soft top tarpaulin, that can be used for the loading of awkward and out-of-gauge, e.g. over-height, cargo.
Optional Port Lodgement - used in Australia to indicate that a customs declaration for a shipment can be lodged at any port regardless of which port the import cargo is to be discharged or delivered, or at which port cargo is to be loaded for export.
ORGANISATION OF PETROLEUM EXPORTING COUNTRIES (OPEC)
Membership comprises the 12 largest petroleum producing and exporting countries and its mission is to coordinate policies to ensure stabilisation of oil markets.
Open Top - (shipping container).
Origin Terminal Handling Charge - see THC - ocean freight port charge.
See Arbitrary charges.
Goods whose dimensions exceed those of the container in/on which they will be carried. This can refer to width, height and/or length.
A surcharge applied by shipping lines when cargo is shipped in open type containers, such as flat racks, open tops, and bolsters, and there are one or more protrusions of the cargo from the sides and/or the top of the container. These protrusions, of course, in a cellular vessel, will preclude the use of adjacent cells in the ship, cause problems in loading, and will result in loss of revenue and extra costs for the shipping company.
An independent shipping line. One that is not a member of a shipping conference.
The quantity of cargo discharged from a ship at the relevant port of discharge. If a discrepancy is found this may be the subject of a claim for loss.
This term is used in airfreight and domestic road and rail transport, and it simply means that the cargo to be carried does not fit within the confined spaces of the vehicles or equipment that will be used to carry it. Depending upon the sizes, this type of cargo may attract surcharges or higher than normal freight rates. For road transport, government permits and escorts may be required before the goods can be moved.
This surcharge (also called Heavy Surcharge) is quite common on some ocean shipping routes, but not on all routes. The charge, per TEU, is applied to containers that exceed a certain weight determined as the threshold weight by the carrier. The reason for the charge is mainly related to operational deadweight limits of vessels and the fact that heavy containers can cause loss of business opportunities if the vessel reaches its weight limit before all container slots are occupied.
A standard sized platform usually of wooden construction, on which unitised loads can be placed and secured. Usually lifted by forklift or in some cases pallet legs that are placed through the openings in the base of the pallet.
PANAMA CANAL SURCHARGE
A charge applied by shipping lines, usually on a per TEU basis, to recover the costs involved in transiting the Panama Canal. The Panama Canal Authority charges a toll on all ships passing through the canal.
The maximum sized ship able to transit the Panama Canal. The term applies to ships not exceeding capacity of 3000 TEU's with a beam below 33.2m. With the recent operation of expanded locks in the Canal larger vessels are now able to transit. These ships are termed Neo-Panamax and the maximum dimensions are length overall - 366m and beam maximum - 49m.
Applied to the labour force of a country and measures the percentage of the working age population who are in the labour force.
A loss which falls on the particular property insured, as opposed to a general average which is a loss for the account of all interests.
Payload is the carrying capacity of an aircraft, usually measured in terms of weight.
Pure Car Carrier.
Port Congestion Surcharge.
Pure Car and Truck Carrier.
PEAK SEASON SURCHARGE
Peak Season Surcharge. A charge applied by shipping lines, over the base freight rate, during the busiest seasons of the year. This charge is applied particularly to cargo moving out of South East Asian and Chinese ports during the pre and post-Christmas period. It is a method of improving the lines overall freight revenues, and it is applied at times when demand is high and supply (space) is low. When applied, is usually a fixed sum of money per container.
A collective name given to crude oil which is a natural occurring flammable liquid comprising a complex mixture of hydrocarbons and other liquid organic compounds. Refined and processed at a refinery to produce a large number of consumer products.
Protection and Indemnity Clubs providing insurance cover for third party risks to shipowners and operators.
PIER PASS FEE (TRAFFIC MITIGATION FEE)
A surcharge imposed on cargo moving in and out of the ports of Los Angeles and Long Beach between the hours of 3.00am and 5.59pm on weekdays. The charge, as billed to cargo interests by the Pier Pass Authority, is properly called the Traffic Mitigation Fee. The fee was introduced in 2005 to encourage cargo interests to deliver and collect containers during off peak hours with the objective of reducing traffic congestion and air pollution in and around the port area.
The foregoing Fee shall not be applicable to or paid by:
1. Empty Containers or empty chassis;
2. Import or Export Cargo entering or leaving any Terminal Facility during Off-Peak Hours;
3. Import Cargo or Export Cargo that transits the Alameda Corridor in a Container and is subject to a fee imposed by the Alameda Corridor Transportation Authority; and
4. Transshipment Cargo.
In relation to LCL cargo, the charge is usually billed by consolidators as a charge per w/m.
Thefts of cargo from a ship either while at sea or in port.
Robbery of goods by use of force as in wartime. The term is also applied to the theft of cargo from a ship.
A qualified and experienced Master Mariner employed by a port authority, government body or private organisation to board incoming and departing ships at a particular port and advise the Master on safely navigating the ship.
Minimum chargeable ULD. Weight.
1. Proof of Delivery; a signed receipt proving that delivery was effected.
2. Place of Delivery; The place where delivery is effected and the Carrier's liability ceases.
3. Port of discharge.
Port of Loading.
A government authority or private organisation that operates and manages a commercial port with specific responsibilities for safety, environmental protection, development and trade facilitation.
A gantry crane used at container terminals for the loading/discharge of containers on/from a ship. Usually owned and operated by the stevedore.
Charges levied on ships by a port authority for the use of port services and facilities and by port service providers such tug operators.
Two specific ports (Port of Load and Port of Discharge) is defined as port pairs.
The left-hand side of a ship looking forward from the stern.
PORT STATE CONTROL
A strategy practiced internationally by government authorities, in Australia the Australian Maritime Safety Authority (AMSA), to ensure the safe operation of ships calling at ports within the jurisdiction of the authority and compliance with international conventions on safety. Implemented through ship inspections by AMSA surveyors.
PORT SERVICE CHARGE
PSC. A charge payable on cargo loaded/discharged by the cargo owner to the shipowner/operator incorporating the port authority Wharfage.
Australian industry peak body representing the interests of port authorities.
Prepaid - as in 'freight charges prepaid'. This as opposed to CCX as in 'freight charges collect' at destination.
Pre Receival Advice. Cargo information sent electronically to the loading terminal before the delivery of the container/cargo.
Permission - health clearance, issued by a government authority, in Australia the Department of Agriculture and Water Resources. See MARS.
A term used to broadly describe the national or international transportation of large, heavy, high value or a critical (to the project they are intended for) pieces of equipment.
A sworn statement by the Master describing any unusual event that has occurred during a voyage. Usually completed before a Notary Public. If necessary the Statement can be used as evidence in cargo claims or other enquiries.
An insurance term. The immediate, or most effective cause of a loss. In insurance contracts, underwriters are not liable for losses unless such loss is proximately caused by an insured peril.
Piracy Risk Surcharge - See ERS (Emergency Risk Surcharge), Gulf of Aden Surcharge (GOA).
Port Service Charge - A charge for loading containers on and off vessels at wharf terminals. See also BSRA, APCA, and THC.
Peak Season Surcharge - See PSC.
In cases of reefers shipped with Modified Atmosphere MA, the port is used to flush the container with a mixture of nitrogen and oxygen as required by the produce to ensure it is in best condition on discharge.
Port Dues/Port tax (PWD) - Additional weight tax charged by port authorities to shipping lines at certain European ports.
Quarantine Pre Arrival Report. Information sent electronically - known as eQPAR now superseded by the MARS system usually sent 96 hours before arrival of the ship at the first Australian port of call in order to obtain health clearance - pratique.
A machine mostly used in container terminals capable of lifting and moving containers. The machine has an extendable jib which allows it to reach over other vehicles and high stack containers.
A Bill of Lading that indicates only that the cargo has been received into the custody of the ocean carrier; not that it has actually been shipped.
RECEIVED FOR SHIPMENT
A Bill of Lading marked to indicate that the goods described on the face of the Bill have been received into the custody of the carrier but have not been loaded on the ship.
A very large machine mostly found where dry bulk cargoes are stockpiled. The reclaimer usually has a large wheel at the end of an arm fitted with buckets that enables it to pick up the commodity and feed it to a conveyor system that then moves the cargo to the ship loader. The reclaimer can be moved short distances.
On completion of a Time or Demise charter when the ship is redelivered from the charterer to the Owner. This is usually accompanied by a Certificate certifying the time, date and place of redelivery of the ship stating the quantity of bunkers on board at the time of redelivery.
The International Maritime Organization (IMO) named the Great Barrier Reef as the world's first particularly sensitive sea area (PSSA) in 1990. The IMO also named Torres Strait as a PSSA in 2005. The Great Barrier Reef and Torres Strait vessel traffic service (REEFVTS) was established by the Australian and Queensland Governments in 2004 to improve the safety and efficiency of vessel movements and to help protect the marine environment. REEFVTS is operated under joint arrangements with Maritime Safety Queensland.
A container that is capable of refrigerating the contents and maintaining a set temperature for as long as required. Most reefer containers are built with an integrated compressor requiring only a power supply to operate. Reefer also refers to a multi-deck ship that is capable of carrying reefer cargo in break bulk form, e.g. bananas, at low temperatures.
Usually located at a container terminal, a static piece of equipment that can provide the power connection for four or more containers.
In Australia an agreement reached between shipping lines to operate a joint service that under the Australian Consumer and Competition Act 2010 requires registration by the Registrar of Shipping in the Department of Infrastructure, Regional Development and Cities.
The ratio (expressed as a percentage) of the amount of moisture in the air to that in saturated air at the same temperature.
Energy resources which are continually replenished, i.e. solar energy, wind power, wave power, biomass, hydroelectric, geothermal energy.
The process whereby fruit and vegetables that are living products after harvest continue to breath and take in oxygen. Carbon Dioxide and Ethylene and moisture are then released which is retarded by refrigeration.
In maritime law a loan of money using goods loaded on a ship as security which in the course of the voyage would be sold or exchanged. These proceeds would then form the repayment from the borrower, plus interest.
Shipping term. The tonne unit against which the freight payment is calculated. In general shipping it is one cubic metre or 1000 kg. See also W/M tonne, or Weight/Measurement tonne, and Freight tonne.
ROLLER BED TRANSFER SYSTEMS
A system to facilitate the movement of heavy or bulk loads into and out of trailers or bodies. These systems offer significant reductions in loading and unloading times and have considerable health and safety benefits since there is more control over the load and less manual handling is required.
Roll On/Roll Off ship. A ship with either a stern or quarter ramp on which cargo can be driven/towed/carried into/out of the ship. Designed to carry wheeled cargo such as cars, trucks, trailers, etc.
Roll On/Roll Off passenger ship. A RO/RO vessel built for freight vehicle transport along with passenger accommodation. Technically this covers all ferries with both a roll on/roll off car deck and passenger-carrying capacities, but in practice ships with facilities for more than 500 passengers are often referred to as cruise/ferries.
A treaty comprising international rules that revises the legal and political framework for the maritime carriage of goods. The convention establishes a modern, comprehensive, uniform legal regime governing the rights and obligations of shippers, carriers and consignees under a contract for door-to-door shipments. Not in operation pending full international ratification. The Rules will replace the Hague Rule, Hague-Visby Rules and the Hamburg Rules.
Rate Restoration - also known as GRI or General Rate Increase - A term used by shipping lines to label a general increase in ocean freight rates on particular trade routes.
See Revenue Tonne.
Lay time runs continuously - consecutive days of 24 hours including weekends and holidays.
Single Administrative Document. In the European Union and some other countries - a single document for administering all customs transactions.
Shipping Australia Limited. Peak body representing shipowners/operators, agents and other organisations with maritime connections.
The agreement between the seller/exporter of the goods and the buyer/importer. Standard contract forms that contain relevant clauses and conditions are often used as the basis of the agreement.
Compensation due to those who through their exertions have saved a ship and/ or goods from the perils of the seas, fire, pirates or enemies. The expression may also refer to that which is saved, or that which is abandoned by the assured to the underwriter, the former claiming total loss.
SCA AND SCA FEE
Sea Cargo Automation. The term applied by Australian Customs to the computer system that coordinates and controls the reporting and delivery of import sea-cargo in Australia. Sea Cargo Automation fee. A charge applied by Forwarders and Consolidators in Australia to cover the costs associated with the operation of the Sea Cargo Automation System.
Standard Carrier Alpha Code - a unique two-to-four-letter code used to identify transportation companies. The USA organisation, National Motor Freight Traffic Association (NMFTA) developed the SCAC identification codes in the mid 1960's to facilitate computerization in the transportation industry. See www.nmfta.org for more information.
The actual weight of a shipment.
See Specific Commodity Rate.
See Special Drawing Rights.
Shippers Declaration for the Transport of Dangerous Goods - A FIATA form.
Security Administration Surcharge (ocean freight).
SEAL (CONTAINER SEAL)
Usually a numbered or coded metal rod or metal band, used to seal the doors of containers after they have been packed. The seal number is usually recorded on The Bill of Lading, but may also be required by the consignee on other documents. Some types of seals provide better security than others. When shipping FCL loads of cargo, which may be subject to pilferage, it may be better to use a good quality padlock.
Terminal Security Surcharge. A charge passed on by shipping lines to recover additional security related costs imposed upon them by ocean container terminal operators.
Special Equipment Surcharge. A surcharge applied by shipping lines for supplying Flat Rack (FR) and Open Top (OT) containers to shippers.
A surcharge applied to air and sea cargo. For air cargo, usually applied as xx number of currency units per chargeable kilogram of cargo. For ocean cargo may be applied as a rate per container or revenue tonne or Bill of Lading.
Shipper's Export Declaration. USA term. Also used as a code for Security Surcharge Destination in some ocean trades.
A bulk carrier described as a Self-Trimming Bulk Carrier for cargoes other than grain, means that the vessel is able to self-trim specified free-flowing cargo when loaded by virtue of the physical characteristics of the design of its holds without the need for additional trimming.
A term that generally describes any cargo handling equipment that the ship is fitted with.
The expression used by the Australian Government to refer to changes in legislation that will change the conditions under which Australian flagged ships are permitted to operate.
The equipment situated on a wharf that is the final point in the movement of a dry bulk commodity usually from a conveyor system that effectively loads the cargo into the hold of the ship.
The Standard Ship Management Agreement form produced by BIMCO.
SHIPPED ON BOARD BILL OF LADING
A Shipped on Board Bill of Lading evidences the fact that the cargo has actually been loaded on board the vessel. A 'shipped' Bill is not issued unless the cargo is so loaded on board. This is in stark contrast to a Received Bill of Lading which evidences only that the cargo has been received at the ship's terminal.
The Consignor, or person or company that is sending the shipment.
SHIPPER'S LETTER OF INSTRUCTION (SLI)
A document containing instructions by shipper (consignor) relating to the preparation of documents and movement of the shipment.
See Shipping Conference.
When part or all of a consignment, which has been completely shipped, has not arrived at destination. It may have a different meaning to the term short shipment.
Term used to describe ship operations between ports in close proximity with voyages of short duration.
An incomplete delivery of the goods which are the subject of the contract between the buyer and seller. Also used to describe a situation where the carrier fails to load all cargo booked by the shipper and delivered to the terminal for a particular ship. This may be due to several factors including weather, strikes or other operational reasons.
A shipping line term meaning: Goods not carried on intended vessel.
Shippers Intermodal Weight Certificate - A FIATA form.
An opening in the side of a ship giving direct access from the wharf to the hold. Some wide ports allow Ro/Ro operation with forklifts or similar equipment which allow the load to be passed from a wharf machine to one in the ship. Often used with break bulk reefer cargoes unitised on pallets.
A vertical cylindrical structure usually associated with the storage of grain that is poured from a conveyor system through the top of the silo and bottom fed onto another system that conveys the grain to the ship loader and into the ship.
A common definition of the term single window is A facility that allows parties involved in trade and transport to lodge standardised information and documents with a single entry point to fulfil all import, export, and transit-related regulatory requirements. If information is electronic then individual data elements should only be submitted once.
Semi-trailer without a floor (platform) mostly constructed with different transverse ribs so as to offer various locating possibilities for different sized containers.
A skid is a single deck loading platform while a pallet is a double deck loading platform.
Shippers Letter of Instruction.
1. Is the space in a container vessel which can be taken up by one standard twenty foot container.
2. Also used to describe the appointed time to collect or deliver a container from or into the ship's container terminal yard - see Time Slot.
A term used to denote a part charter arrangement between a container shipowner/operator and another operator or consortia, company, freight forwarder to provide an agreed number of slots on a regular basis on the carrier's ships.
Shipper Owned Container.
The International Convention for the Safety of Life at Sea. Probably the most important international maritime agreement that deals with all aspects of measures to be taken for the preservation of life at sea.
SPECIAL DRAWING RIGHT (SDR)
Special Drawing Right (SDR): The official account unit of the International Monetary Fund. It is used as an international reserve asset to settle transactions between countries and help balance international liquidity.
SPECIFIC COMMODITY RATE (SCR)
A rate applicable to the carriage of a specific commodity between specific places.
A market in which goods/currency etc. are traded for immediate delivery and at the current price, i.e. spot price.
A device/frame used for lifting containers by engaging the container on corner post castings. Different sized spreaders can be used to carry multiple lifts. Some have telescopic arms to be able to carry different sized containers.
Insurance clause - Strikes, Riots and Civil Commotions.
Security Surcharge - Abbreviation now commonly used in air cargo business to denote the Security Surcharge applied to freight rates, mainly applied as a rate per kg.
Ship Security Surcharge - Destination.
Ship Security Levy - A port charge. See ISPS Code and ISPS Fee.
Ship Security Surcharge - Origin.
Air freight charges are calculated on weight or volume, whichever is the greater, using a volume/weight ratio of 6000cm3 = 1 kg or 167 kg = 1m3. This is known as the standard rate.
The right hand side of the ship when looking forward from the stern.
Said to Contain. A common abbreviation used on Bills of Lading and Waybills, e.g.: 1 x 20' container STC xxx number of packages.
A stand or specialised cage for keeping something off the ground or for facilitating the carriage and handling of goods. Used extensively in some industries to protect cargo from handling damage whilst simultaneously improving the handling speed when loading and unloading cargo. Many are collapsible and stackable and are used in the automotive manufacturing industry for shipping vehicle components. Other specialised types are used in the postal, airline and courier industries.
Standards of Training, Certification and Watch keeping for Seafarers. The internationally accepted IMO convention setting the standards of training and qualification of seafarers to ensure a high standard of safety in ship operation.
The aft most part of a ship.
The operation of loading and discharging cargo onto/from a ship.
The amount of room available for stowing materials aboard a ship, aircraft or container, or the placement (lading) of cargo in an ship or aircraft in a manner that provides optimum safety for the vessel and the cargo, gives maximum space usage, and allows easy access to cargo at the point of offloading.
The volume (cbm) occupied by I tonne of a particular cargo.
A vehicle specially constructed to lift and move containers in a container terminal and an intermodal zone. It is capable of straddling a rail/road truck to lift/load the container. Manually operated but in some port they are robotic.
STRAIGHT BILL OF LADING
A term for a non-negotiable Bill of Lading in the U.S.A.
Emptying a container. The removal (or unloading) of the contents of a container or other unit load device. Also called Breaking-Bulk, Destuffing, Devanning, Discharging, Unpacking, and Unstuffing.
A term to denote the packing of a container.
A legal principle whereby an Insurance Company can inherit the rights and liabilities of the assured, and counter-claim against the Carrier who caused the loss or damage. The subrogation process can begin once the Insurer has paid out the assured under the terms of the policy.
SUEZ CANAL TRANSIT SURCHARGE
A charge applied to containers that are carried through the Suez Canal. Usually a charge per TEU.
Usually applied to crude oil tankers of approximately 120,000 to 200,000 dwt.
A sequence of events involved in the production and distribution of a product or service. The chain is a system of organisations, people, technology, activities, information and resources.
In relation to cargo, an inspection to quantify loss and damage, usually in the presence of surveyors from insurance companies and carriers.
A specialist who conducts surveys of cargo or the hull and machinery of a ship. The surveyor might be employed by a government body such as AMSA to ensure compliance with safety regulations or a classification society to ensure that the ship follows Society Rules or, an insurance company to assess cargo damage.
A dry bulk carrier within the Handymax sector which is usually fitted with deck cranes.
Suez Canal Transit Surcharge (ocean freight surcharge).
The Air Cargo Tariff book, issued by IATA.
The IATA Tariff rate as listed in the TACT books. See Chapter on Freight rates for a full explanation of TACT rates.
A physical inspection of a container undertaken by a Biosecurity officer to visually verify that some aspects of the cargo, or the contents of a container or the outside of a container are free from biosecurity risk material.
An enclosed space in a ship that can be used for the carriage of liquid cargoes or fuel, fresh water or water ballast.
A container designed for the carriage of bulk gases, liquids and powders.
A voyage charter form issued by BIMCO and widely used in tanker chartering.
A cylindrical shaped container designed to carry bulk liquids. It is usually within a frame that enables the tank to be lifted by a container spreader at the terminal.
The weight of an empty container.
A list of ocean freight rates and charges and the terms and conditions of carriage normally confined to the Liner Trade.
TARIFF, WORKING, CUSTOMS
The Schedule of Harmonised Classifications and their related duty rates and terms and conditions.
Temporary Additional Risk Surcharge. See War Risk Surcharge.
To Be Advised - commonly used in the forwarding industry.
See Through Bill of Lading.
To Be Named.
Ocean shipping - Temperature Download Charge. A charge levied by a shipping line to a shipper who has requested the line to download and supply the temperature records for a refrigerated cargo shipment.
TERMINAL LOAD LIST
A list of containers actually loaded on a ship from a particular port showing the stowage position for each discharge port. Usually prepared by the terminal operator and can be used in conjunction with the release of export bills of lading.
Twenty-Foot Equivalent unit. The acronym used to describe the space occupied by a 20' container.
> i.e. 1 x 20' container = 1 TEU
1 x 40' container = 2 TEU
Used as measurement unit to describe the carrying capacity of a container vessel.
Terminal Handling Charge. A charge based on part of the cost for handling a container at a terminal often charged on both exports and imports. The charge is payable by the cargo owner to the carrier and is not common to all trades or ports.
THERMAL POWER STATION
A Thermal Power Station is a power plant in which a turbine which drives an electrical generator is steam driven. Fuel source is thermal coal that has low levels of pollutants. Australia is the world's leading exporter of this type of coal.
THIRD PARTY LOGISTICS PROVIDER
An organization that manages and performs logistics functions, using its own resources, on behalf of another company.
THROUGH BILL OF LADING
Used frequently in modern commerce. It is a Bill of Lading covering transport of the goods by more than one carrier or by more than one means of transport. The carrier who issues the bill will be responsible for the transhipping and/or on-forwarding.
In relation to cargo claims against the carrier, the time limit set for lodging claims. Once expired no claims will be considered. Under the Hague-Visby Rules a one year time limit applies from the time when the cargo was or should have been delivered. The clause on the Bill of Lading specifies the time limit.
The charter of a ship for an agreed period of time, e.g. approximately twelve months. Applies to all types of ships.
An appointment made by a container exporter/importer with a terminal at which time the container can be received or delivered.
A carnet issued under the auspices of the UN TIR (TRANSPORT INTERNATIONAUX ROUTIERS) customs convention for facilitating the international transport of goods by road.
Transshipment Number - Australian Customs abbreviation - See CAN.
Shoring and securing cargo either break bulk or in a container to prevent movement while in transit.
Imperial (English) Ton = 2240 pounds (LBS.) American Ton = 2000 pounds (LBS.) Metric Ton = 2204.6223 pounds (LBS.)
Metric ton = 1000 kg or 2204.6223 LBS.
A calculation performed by multiplying the distance travelled on a voyage by the tonnage of cargo carried. This could be done for one voyage or a number of voyages. The result is useful in determining changes in the demand for the ship and destinations/origins for cargo.
Where cargo can't have anything stacked on top of it due to its fragility and has to be either by itself or on top of another piece.
Theft, Pilferage and Non-Delivery (insurance term).
When the balance on merchandise trade in national accounts shows that the value of imports exceeds the value of exports.
Ships employed in this trade do not operate to a schedule and go wherever cargo is available. Voyages to particular ports might not be repeated and shipowners do not engage in service promotion as Liner Trade shipowners do. Tramp trade is often referred to as the Bulk Trade.
The carrier who transfers the cargo to another carrier at a transfer point (IATA).
TRANSPORT RELATED DOCUMENTS
The core documents related to the transport of goods are as follows:
· Shipper's Letter of Instruction
· Bill of Lading
· Master Bill of Lading
· House Bill of Lading
· Air Waybill
· Master Air Waybill
· House Air Waybill
· Combined Transport Bill of Lading
· Non-negotiable Waybill (Express)
· Interim receipt
· Pre-receival advice
· Marine Insurance Certificate.
The act of transferring goods from one ship - the first carrier at a transshipment port, to another ship - the second carrier, for onward movement to a port not usually served direct by the first carrier.
Terminal Receiving Charge. A charge for handling containers and goods at Container Terminals.
Terminal Security Charge.
Terminal Security Charge at Origin.
A small vessel predominantly used in ports to assist ships in manoeuvring. Also used in off-shore oil activity, salvage work and barge towing.
The space between any continuous decks. Intermediate deck within a cargo space above the lower hold and below the upper deck.
A cone with flattened sides that fits into a container corner casting with a moveable tip which when turned 90 degrees will securely lock and tie down the container.
The Uniform Customs and Practice for Documentary Credits. A set of rules on the issuance and use of letters of credit. The UCP is used by bankers and commercial parties almost universally in trade finance.
Unit Load Device. The collective term used to describe the specialised containers and pallet bases used with cargo aircraft.
A rate charged by an airline for carrying a ULD. See chapter on freight rates for an explanation.
The difference between the contents and the total capacity of a tank, cask or other vessel for containing liquids. The terms is used in relation to inspections for loss and so it describes the amount of liquid that is missing from the tank, cask, bottle, etc.
UNCLEAN BILL OF LADING
A Bill of Lading that has been claused/endorsed by the carrier to show that the goods covered by the Bill were not received and shipped in good order or condition or some other remark as to the condition of the cargo.
United Nations Commission on International Trade Law.
United Nations Convention on the Law of the Sea which came into force in November 1994. The Law of the Sea Convention defines the rights and responsibilities of nations with respect to their use of the world's oceans that includes the management of marine natural resources.
United Nations Conference on Trade and Development. Established in 1964 to promote the development-friendly integration of developing countries into the world economy.
Cargo that has not been cleared by the ABF and remains under ABF control.
UN Economic Commission for Europe.
UNIT LOAD DEVICE
An assembly of components consisting of any of the following:
1. Aircraft pallet and pallet net.
2. Aircraft pallet and pallet net over an igloo.
3. Aircraft container.
UNIT OF ACCOUNT
Under the Hague-Visby (amended Hague) rules, is a Special Drawing Right. See Special Drawing Right.
Ultra Large Crude Carrier. Referring to tankers in excess of approx. 350,000 GT.
Deficiency of liquid; space in a container or drum or tank that is not filled.
The removal (or unloading) of the contents of a container or other unit load device. Also called Breaking-Bulk, Destuffing, Devanning, Discharging, Stripping, and Unpacking.
A class of very large ore carriers (VOOC) built for Brazilian mining company Vale S.A. to carry Iron Ore from Brazil to Asian and European ports. Capacity ranges from 380,000 to 400,000 deadweight they are the largest bulk carriers ever built. Twelve ships have been ordered by Vale the first entered service in 2011. Similar ships although slightly smaller have also been ordered by Berge Bulk.
(IATA). Air Cargo having an actual value of US $1,000 (or equivalent) or more per gross kg or which contains precious metals, banknotes, pearls (including cultured pearls) and precious stones. In consequence of the greater responsibility, and also the higher level of liability borne by the airline, a freight surcharge of 200% of the normal rate is applied to the carriage of such goods.
An IATA term. A surcharge on an airfreight rate, charged under IATA rules and applied to the cost of carriage of valuable cargo. The airlines' normal liability level is increased upon payment of the surcharge.
VALUE FOR DUTY
The value used by Customs to determine duty payable. It is usually the FOB value of the cargo. Still declared even though duty might not be payable. Also used for import statistics.
Vehicle Booking System.
An undertaking such as one voyage of a ship.
A system whereby charterers make use of a wide range of information from various sources to determine the condition of the ship before completing the charter. The purpose is to ensure that the ship has been properly maintained, that it complies with international regulations and is suitable for the intended business.
Victorian Freight and Logistics Council. An independent advisory body that provides advice to government on the development, planning, regulation and operation of freight and logistics, transport and infrastructure services in Victoria Australia. http://www.vflc.com.au/
The United Nations Convention on Contracts for the International Sale of Goods (CISG) Drafted in Vienna in 1980.
Vehicle Identification Number (VIN)
The identifying code to identify individual motor vehicles, towed vehicles, motorcycles, scooters and mopeds.
French - face to face with, opposite one another. Used in the sense of 'as against'.
A document or endorsement in a passport by an authorised representative of a country verifying that a citizen of another country may lawfully enter that country. In Australia that authority is the Department of Immigration and Border Protection. A current visa is required as soon as the person enters Australian territory. Because of the likelihood of multiple entry into Australia or, late diversion of a ship to an Australian port, seafarers are able to obtain a Maritime Crew Visa through an on-line facility.
Very Large Crude Carrier. Referring to Tankers in the 200,000 to 349,999 GT range.
Charges based on volume.
The volumetric weight of a shipment is a calculation that reflects the density of a package. A less dense item generally occupies more volume of space, in comparison to its actual weight.
To Waive - a: to relinquish voluntarily (as a legal right) b: to refrain from pressing or enforcing (as a claim or rule): forgo (from Miriam Webster Dictionary).
The act of intentionally relinquishing or abandoning a known right, claim, or privilege; also: the legal instrument evidencing such an act (From Miriam Webster Dictionary).
WAR RISK SURCHARGE
A charge, usually per TEU for FCL cargo or per freight tonne for LCL cargo, levied by shipping lines for shipments originating, transiting, or destined for ports/countries considered to represent a risk of war. The surcharge reflects the associated increased costs of insurance, fuel and possible service disruptions.
WAR RISK INSURANCE
Insurance against loss or damage to property due to acts of enemies of a country. This coverage is freely written and included in marine risks insurance policies.
A receipt for goods shipped and a not negotiable document which authorises delivery only to the named consignee. It is not a document of title as it is not usually required to be presented to claim possession of the cargo.
Weight is the measure of the force of gravity acting on an object. Weight depends on how much gravity is acting on an object at its location.
The weight or quantity at which a shipment will be rated at a lower price for the cargo's transportation.
See Freight tonne or Revenue Tonne.
Traditionally, in the 'pre-containerisation era', and currently for break-bulk cargo, a charge applied for handling cargo on or off a vessel and across the wharf area. It is still being used to describe charges for handling cargo in and out of containers. The charge is usually levied on a 'per tonne/cubic metre' basis.
A wide-body aircraft has a diameter of 5 to 6 m (16 to 20 ft). This allows for two aisles in passenger aircraft, and seats between seven and ten people abreast.
In ocean shipping a season surcharge that may be applied per TEU to cargo being loaded or discharged at particular ports affected by extreme climatic conditions.
Weight/Measurement. See Freight Tonne.
A designated facility where wool bales are compressed in order to maximise the utilisation of the space in a container.
WORLD TRADE ORGANISATION (WTO)
The international organisation based in Geneva that is responsible for international fair trade compliance and dispute settlement on trade issues.
See War Risk Surcharge.
Winter Surcharge - for shipments to or from Russia - shipping line fee - charged on a per container basis. At time of writing in August 2009 the fee is Euro 50 per TEU.
Weight/Volume - same as weight/measurement. See Freight Tonne or Revenue tonne.
Overweight Container Surcharge.
YORK ANTWERP RULES
International agreement for the settlement of General Average claims in ocean shipping. The 2004 amendments were approved at a conference in Vancouver in 2004.
Charges in an ocean carrier's tariff for cartage of LCL or FCL cargo.