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Glossary of Shipping Terms (ID: 1509)
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The terms in this glossary have been carefully selected from the myriad of terms one can encounter in the shipping business. We hope you will find it useful. This information is disseminated under the sponsorship of the Department of Transportation in the interest of information exchange. The U.S. Government assumes no liability for its contents or use thereof nor does it endorse products. AA Always Afloat (In some ports the ship aground when approaching, or at berth.) AAR Abbreviation for: - Against All Risks (insurance clause). - Association of American Railroads. Abaft A point beyond the midpoint of a ships length, towards the rear or stern. Abandon A proceeding wherein a shipper/consignee seeks authority to abandon all or parts of their cargo. Abatement A discount allowed for damage or overcharge in the payment of a bill. ABI U.S. Customs' "Automated Broker Interface," by which brokers file importers' entries electronically. Aboard Referring to cargo being put, or laden, onto a means of conveyance. Absorption One carrier assumes the charges of another without any increase in charges to the shipper. Acceptance - A time draft (or bill of exchange) that the drawee (payer) has accepted and is unconditionally obligated to pay at maturity. - Broadly speaking, any agreement to purchase goods under specified terms. Accessorial Charges Charges that are applied to the base tariff rate or base contract rate, e.g., bunkers, container, currency, destination/delivery. Acquiescence When a bill of lading is accepted or signed by a shipper or shipper's agent without protest, the shipper is said to acquiesce to the terms, giving a silent form of consent. Acquittance A written receipt in full, in discharge from all claims. ACS (A.C.S.) U.S. Customs' master computer system, "Automated Commercial Systems." Act of God An act beyond human control, such as lightning, flood or earthquake. Ad Valorem A term from Latin meaning, "according to value." Administrative Law Judge A representative of a government commission or agency vested with power to administer oaths, examine witnesses, take testimony, and conduct hearings of cases submitted to, or initiated by, that agency. Also called Hearing Examiner. Admiralty (Adm.) Refers to marine matters such as an Admiralty Court. Advance To move cargo up line to a vessel leaving sooner than the one booked. (See "Roll.") Advanced Charge Transportation charge advanced by one carrier to another to be collected by the later carrier from the consignor or consignee. Adventure Shipment of goods on shipper's own account. A bill of adventure is a document signed by the master of the ship that carries goods at owner' risk. Advice of Shipment A notice sent to a local or foreign buyer advising that shipment has gone forward and containing details of packing, routing, etc. A copy of the invoice is often enclosed and, if desired, a copy of the bill of lading. Advising Bank A bank operating in the seller's country, that handles letters of credit in behalf of a foreign bank. Affreightment, Contract of An agreement by an ocean carrier to provide cargo space on a vessel at a specified time and for a specified price to accommodate an exporter or importer. Aft Movement toward the stern (back end) of a ship. Agency Tariff A tariff published by an agent on behalf of several carriers. Agent (Agt.) A person authorized to transact business for and in the name of another person or company. Types of agent are: (1) brokers, (2) commission merchants, (3) resident buyers, (4) sales agents, 5) manufacturer's representatives. Aggregate Shipment Numerous shipments from different shippers to one consignee that are consolidated and treated as a single consignment. Agreed valuation The value of a shipment agreed upon in order to secure a specific freight rate. Agreed Weight The weight prescribed by agreement between carrier and shipper for goods shipped in certain packages or in a certain number. A.I.D. Agency for International Development. Air Waybill The forwarding agreement or carrying agreement between shipper and air carrier and is issued only in nonnegotiable form. All In The total price to move cargo from origin to destination, inclusive of all charges. Alongside A phrase referring to the side of a ship. Goods delivered "alongside" are to be placed on the dock or barge within reach of the transport ship's tackle so that they can be loaded. Alternative Rates Privilege to use the rate producing the lowest charge. Ambient Temperature The temperature of a surrounding body. The ambient temperature of a container is the atmospheric temperature to which it is exposed. American Bureau of Shipping U.S. classification society which certifies seagoing vessels for compliance to standardized rules regarding construction and maintenance. AMS The U.S. Customs' "Automated Manifest System." Anti-Dumping Duty A tariff imposed to discourage sale of foreign goods, subsidized to sell at low prices detrimental to local manufacturers. Any Quantity (A.Q.) Usually refers to a rating that applies to an article regardless of size or quantity. Apparent Good Order When freight appears to be free of damage so far as a general survey can determine. Appraisement Determination of the dutiable value of imported merchandise by a Customs official who follows procedures outlined in their country's tariff, such as the U.S. Tariff Act of 1930. Appraiser's Stores The warehouse or public stores to which samples of imported goods are taken to be inspected, analyzed, weighed, etc. by examiners or appraisers. Arbitrary A stated amount over a fixed rate to one point to make a rate to another point. Average See insurance. Arrival Notice A notification by carrier of ship's arrival to the consignee, the "Notify Party," and - when applicable - the "Also Notify Party." These parties in interest are listed in blocks 3, 4 and 10, respectively, of the Bill of Lading. ASC X12 American Standards Committee X12 responsible for developing EDI standards for the United States. Assignment A term commonly used in connection with a bill of lading. It involves the transfer of rights, title and interest in order to assign goods by endorsing the bill of lading. Astern - Behind a vessel - Move in a reverse direction. A.T.A. American Trucking Association. ATDNSHINC Any time Day or Night Sundays & Holidays Included. Athwartships A direction across the width of a vessel. Avoirdupois Pound Same as 0.4535924277 kilograms. AWWL Always within Institute Warranties Limits (Insurance purpose). The terms in this glossary have been carefully selected from the myriad of terms one can encounter in the shipping business. We hope you will find it useful. This information is disseminated under the sponsorship of the Department of Transportation in the interest of information exchange. The U.S. Government assumes no liability for its contents or use thereof nor does it endorse products. Return to Maritime Administration Home Page BB Ballast Bonus (Special payment above the Chartering price when the ship has to sail a long way on ballast to reach the loading port.) BB Bareboat (Method of chartering of the ship leaving the charterer with almost all the responsibilities of the owner.) B/L Abbreviation for "Bill of Lading." Backhaul To haul a shipment back over part of a route it has traveled. BAF Abbreviation for "Bunker Adjustment Factor." Used to compensate steamship lines for fluctuating fuel costs. Sometimes called "Fuel Adjustment Factor" or FAF. Balloon Freight Light, bulky articles. Bank Guarantee Guarantee issued by a bank to a carrier to be used in lieu of lost or misplaced original negotiable bill of lading. Barratry An act committed by the master or mariners of a vessel, for some unlawful or fraudulent purpose, contrary to their duty to the owners, whereby the latter sustain injury. It may include negligence, if so gross as to evidence fraud. Barrel (BBL) A term of measure referring to 42 gallons of liquid at 60o F. Base Rate A tariff term referring to ocean rate less accessorial charges, or simply the base tariff rate. BCO Abbreviation for "Beneficial Cargo Owner." Refers to the importer of record, who physically takes possession of cargo at destination and does not act as a third party in the movement of such goods. Beam The width of a ship. Belt Line A switching railroad operating within a commercial area. Beneficiary - Entity to whom money is payable. - The entity for whom a letter of credit is issued. - The seller and the drawer of a draft. Berth Terms Shipped under rate that includes cost from end of ship's tackle at load port to end of ship's tackle at discharge port. Beyond Used with reference to charges assessed for cargo movement past a line-haul terminating point. Bilateral A contract term meaning both parties agree to provide something for the other. Bill of Exchange In the United States, commonly known as a "Draft." However, bill of exchange is the correct term. Bill of Lading (B/L) A document that establishes the terms of a contract between a shipper and a transportation company. It serves as a document of title, a contract of carriage and a receipt for goods. - Amended B/L: B/L requiring updates that do not change financial status; this is slightly different from corrected B/L. - B/L Terms & Conditions: the fine print on B/L; defines what the carrier can and cannot do, including the carrier's liabilities and contractual agreements. - B/L's Status: represents whether the bill of lading has been input, rated, reconciled, printed, or released to the customer. - B/L's Type: refers to the type of B/L being issued. Some examples are: a Memo (ME), Original (OBL), Non negotiable, Corrected (CBL) or Amended (AM) B/L. - Canceled B/L: B/L status; used to cancel a processed B/L; usually per shipper's request; different from voided B/L. - Clean B/L: A B/L which bears no superimposed clause or notation which declares a defective condition of the goods and/or the packaging. - Combined B/L: B/L that covers cargo moving over various transports. - Consolidated B/L: B/L combined or consolidated from two or more B/L's. - Corrected B/L: B/L requiring any update which results in money or other financially related changes. - Domestic B/L: Non-negotiable B/L primarily containing routing details; usually used by truckers and freight forwarders. - Duplicate B/L: Another original Bill of Lading set if first set is lost. also known as reissued B/L. - Express B/L: Non-negotiable B/L where there are no hard copies of originals printed. - Freight B/L: A contract of carriage between a shipper and forwarder (who is usually a NVOCC); a non-negotiable document. - Government B/L (GBL): A bill of lading issued by the U.S. government. - Hitchment B/L: B/L covering parts of a shipment which are loaded at more than one location. Hitchment B/L usually consists of two parts, hitchment and hitchment memo. The hitchment portion usually covers the majority of a divided shipment and carries the entire revenue. - House B/L: B/L issued by a freight forwarder or consolidator covering a single shipment containing the names, addresses and specific description of the goods shipped. - Intermodal B/L: B/L covering cargo moving via multimodal means. Also known as Combined Transport B/L, or Multimodal B/L. - Long Form B/L: B/L form with all Terms & Conditions written on it. Most B/L's are short form which incorporate the long form clauses by reference. - Memo B/L: Unfreighted B/L with no charges listed. - Military B/L: B/L issued by the U.S. military; also known as GBL, or Form DD1252. - B/L Numbers: U.S. Customs' standardized B/L numbering format to facilitate electronic communications and to make each B/L number unique. - Negotiable B/L: The B/L is a title document to the goods, issued "to the order of" a party, usually the shipper, whose endorsement is required to effect is negotiation. Thus, a shipper's order (negotiable) B/L can be bought, sold, or traded while goods are in transit and is commonly used for letter-of-credit transactions. The buyer must submit the original B/L to the carrier in order to take possession of the goods. - Non-Negotiable B/L: See Straight B/L. Sometimes means a file copy of a B/L. - "Onboard" B/L: B/L validated at the time of loading to transport. Onboard Air, Boxcar, Container, Rail, Truck and Vessel are the most common types. - Optional Discharge B/L: B/L covering cargo with more than one discharge point option possibility. - "Order" B/L: See Negotiable B/L. - Original B/L: The part of the B/L set that has value, especially when negotiable; rest of set are only informational file copies. Abbreviated as OBL. - Received for Shipment B/L: Validated at time cargo is received by ocean carrier to commence movement but before being validated as "Onboard". - Reconciled B/L: B/L set which has completed a prescribed number of edits between the shippers instructions and the actual shipment received. This produces a very accurate B/L. - Short Term B/L: Opposite of Long Form B/L, a B/L without the Terms & Conditions written on it. Also known as a Short Form B/L. The terms are incorporated by reference to the long form B/L. - Split B/L: One of two or more B/L's which have been split from a single B/L. - Stale B/L: A late B/L; in banking, a B/L which has passed the time deadline of the L/C and is void. - Straight (Consignment) B/L: Indicates the shipper will deliver the goods to the consignee. It does not convey title (non-negotiable). Most often used when the goods have been pre-paid. - "To Order" B/L: See Negotiable B/L. - Unique B/L Identifier: U.S. Customs' standardization: four-alpha code unique to each carrier placed in front of nine digit B/L number; APL's unique B/L Identifier is "APLU". Sea-land uses "SEAU". These prefixes are also used as the container identification. - Voided B/L: Related to Consolidated B/L; those B/L's absorbed in the combining process. Different from Canceled B/L. Bill of Lading Port of Discharge Port where cargo is discharged from means of transport. Bill of Sale Confirms the transfer of ownership of certain goods to another person in return for money paid or loaned. Bill to Party Customer designated as party paying for services. Billed Weight The weight shown in a waybill and freight bill, i.e, the invoiced weight. Blanket Bond A bond covering a group of persons, articles or properties. Blanket Rate - A rate applicable to or from a group of points. - A special rate applicable to several different articles in a single shipment. Blanket Waybill A waybill covering two or more consignments of freight. Blind Shipment A B/L wherein the paying customer has contracted with the carrier that shipper or consignee information is not given. Block Stowage Stowing cargo destined for a specific location close together to avoid unnecessary cargo movement. Blocked Trains Railcars grouped in a train by destination so that segments (blocks) can be uncoupled and routed to different destinations as the train moves through various junctions. Eliminates the need to break up a train and sort individual railcars at each junction. Blocking or Bracing Wood or metal supports (Dunnage) to keep shipments in place to prevent cargo shifting. Bls. Abbreviation for "Bales." Board To gain access to a vessel. Board Feet The basic unit of measurement for lumber. One board foot is equal to a one inch board, 12 inches wide and one foot long. Thus, a board ten feet long, 12 inches wide, and one inch thick contains ten board feet. Bobtail Movement of a tractor, without trailer, over the highway. Bogie A set of wheels built specifically as rear wheels under the container. Bolster A device fitted on a chassis or railcar to hold and secure the container. Bond Port Port of initial Customs entry of a vessel to any country. Also known as First Port of Call. Bonded Freight Freight moving under a bond to U.S. Customs or to the Internal Revenue Service, and to be delivered only under stated conditions. Bonded Warehouse A warehouse authorized by Customs authorities for storage of goods on which payment of duties is deferred until the goods are removed. Booking Arrangements with a carrier for the acceptance and carriage of freight; i.e., a space reservation. Booking Number Reservation number used to secure equipment and act as a control number prior to completion of a B/L. Bottom Side Rails Structural members on the longitudinal sides of the base of the container. Bottom-Air Delivery A type of air circulation in a temperature control container. Air is pulled by a fan from the top of the container, passed through the evaporator coil for cooling, and then forced through the space under the load and up through the cargo. This type of airflow provides even temperatures. Bow The front of a vessel. Boxcar A closed rail freight car. Break Bulk - To unload and distribute a portion or all of the contents of a rail car, container, or trailer. - Loose, non-containerized cargo. Broken Stowage - The loss of space caused by irregularity in the shape of packages. - Any void or empty space in a vessel or container not occupied by cargo. Broker A person who arranges for transportation of loads for a percentage of the revenue from the load. Brokerage Freight forwarder/broker compensation as specified by ocean tariff or contract. Bulk Cargo Not in packages or containers; shipped loose in the hold of a ship without mark and count." Grain, coal and sulfur are usually bulk freight. Bulk-Freight Container A container with a discharge hatch in the front wall; allows bulk commodities to be carried. Bulkhead - A partition separating one part of a ship, freight car, aircraft or truck from another part. Bull Rings Cargo-securing devices mounted in the floor of containers; allow lashing and securing of cargo. Bunker Charge An extra charge sometimes added to steamship freight rates; justified by higher fuel costs. (Also known as Fuel Adjustment Factor or FAF.) Bunkers A Maritime term referring to Fuel used aboard the ship. Coal stowage areas aboard a vessel in the past were in bins or bunkers. Bridge Point An inland location where cargo is received by the ocean carrier and then moved to a coastal port for loading. Bridge Port A port where cargo is received by the ocean carrier and stuffed into containers but then moved to another coastal port to be waded on a vessel. The terms in this glossary have been carefully selected from the myriad of terms one can encounter in the shipping business. We hope you will find it useful. This information is disseminated under the sponsorship of the Department of Transportation in the interest of information exchange. The U.S. Government assumes no liability for its contents or use thereof nor does it endorse products. C&F Terms of Sale, or INCOTERMS. Obsolete, albeit heavily used, term of sale meaning "cargo and freight" whereby Seller pays for cost of goods and freight charges up to destination port. In July, 1990 the International Chamber of Commerce replaced C&F with CFR. Cabotage Water transportation term applicable to shipments between ports of a nation; commonly refers to coast-wise or inter-coastal navigation or trade. Many nations, including the United States, have cabotage laws which require national flag vessels to provide domestic interport service. CAF Abbreviation for "Currency Adjustment Factor." A charge, expressed as a percentage of a base rate, that is applied to compensate ocean carriers of currency fluctuations. Carnet A Customs document permitting the holder to temporarily carry or send merchandise into certain foreign countries (for display, demonstration or similar purposes) without paying duties or posting bonds. Any of various Customs documents required for crossing some international borders. Captain's Protest A document prepared by the captain of a vessel on arriving at port; shows conditions encountered during voyage, generally for the purpose of relieving ship owner of any loss to cargo and shifting responsibility for reimbursement to the insurance company. Carfloat A barge equipped with tracks on which up to about 12 railroad cars are moved in harbors or inland waterways. Car Pooling Use of individual carrier/rail equipment through a central agency for the benefit of carriers and shippers. Car Seal Metal strip and lead fastener used for locking freight car or truck doors. Seals are numbered for record purposes. Cargo Freight loaded into a ship. Cargo Manifest A manifest that lists all cargo carried on a specific vessel voyage. Cargo NOS Cargo Not Otherwise Specified. Usually the rate entry in a tariff that can apply to commodities not covered under a specific item or sub item in the applicable tariff. Cargo Preference Cargo reserved by a Nation's laws for transportation only on vessels registered in that Nation. Typically the cargo is moving due to a direct or indirect support or activity of the Government. Cargo Tonnage Most ocean freight is billed on the basis of weight or measurement tons (W/M). Weight tons can be expressed in short tons of 2000 pounds, long tons of 2240 pounds or metric tons of 1000 kilos (2204.62 pounds). Measurement tons are usually expressed as cargo measurement of 40 cubic feet (1.12 meters) or cubic meters (35.3 cubic feet.) Carload Rate A rate applicable to a carload of goods. Carrier Any person or entity who, in a contract of carriage, undertakes to perform or to procure the performance of carriage by rail, road, sea, air, inland waterway or by a combination of such modes. Carrier's Certificate A certificate required by U.S. Customs to release cargo properly to the correct party. Cartage Usually refers to intra city hauling on drays or trucks. Cartment Customs form permitting in bond cargo to be moved from one location to another under Customs control, within the same Customs district. Usually in motor carrier's possession while draying cargo. Cash Against Documents (CAD) Method of payment for goods in which documents transferring title are given the buyer upon payment of cash to an intermediary acting for the seller, usually a commission house. Cash in Advance (CIA) A method of payment for goods in which the buyer pays the seller in advance of the shipment of goods. Usually employed when the goods, such as specialized machinery, are built to order. Cash With Order (CWO) A method of payment for goods in which cash is paid at the time of order and the transaction becomes binding on both buyer and seller. CBM (CM) Abbreviation for "Cubic Meter." CE Abbreviation for "Consumption Entry." The process of declaring the importation of foreign made goods for use in the United States. Cells The construction system employed in container vessels; permits ship containers to be stowed in a vertical line with each container supporting the one above it. Center of Gravity The point of equilibrium of the total weight of a containership, truck, train or a piece of cargo. Certificate - A document certifying that merchandise (such as of Inspection perishable goods) was in good condition immediately prior to its shipment. - The document issued by the U.S. Coast Guard certifying an American flag vessel's compliance with applicable laws and regulations. Certificate of Origin A certified document showing the origin of goods; used in international commerce. CFS Abbreviation for "Container Freight Station." A shipping dock where cargo is loaded ("stuffed") into or unloaded ("stripped") from containers. Generally, this involves less than containerload shipments, although small shipments destined to same consignee are often consolidated. Container reloading from/to rail or motor carrier equipment is a typical activity. Charter Party A written contract between the owner of a vessel and the person desiring to employ the vessel (charterer); sets forth the terms of the arrangement such as duration of agreement, freight rate and ports involved in the trip. Chassis A frame with wheels and container locking devices in order to secure the container for movement. Chock A piece of wood or other material placed at the side of cargo to prevent rolling or moving sideways. CI Abbreviation for "Cost and Insurance." A price that includes the cost of the goods, the marine insurance and all transportation charges except the ocean freight to the named point of destination. CIF Abbreviation for "Cost, Insurance, Freight." (Named Port) Same as C&F or CFR except seller also provides insurance to named destination. CIF&C Price includes commission as well as CIF. CIF&E Abbreviation for "Cost, Insurance, Freight And Exchange." CIFCI Abbreviation for "Cost, Insurance, Freight, Collection And Interest." CIFI&E Cost, Insurance, Freight, Interest and Exchange. CKD Abbreviation for "Completely Knocked Down." Parts and subassemblies being transported to an assembly plant. CL Abbreviation for "Carload" and "Containerload". Claim A demand made upon a transportation line for payment on account of a loss sustained through its alleged negligence. Classification A publication,such as Uniform Freight Classification (railroad) or the National Motor Freight Classification (motor carrier), that assigns ratings to various articles and provides bill of lading descriptions and rules. Classification Rating The designation provided in a classification by which a class rate is determined. Classification Yard A railroad yard with many tracks used for assembling freight trains. Clayton Act An anti trust act of the U.S. Congress making price discrimination unlawful. Clean Bill of Lading A receipt for goods issued by a carrier with an indication that the goods were received in "apparent good order and condition," without damage or other irregularities. If no notation or exception is made, the B/L is assumed to be "cleaned." Cleaning in Transit The stopping of articles, such as peanuts, etc., for cleaning at a point between the point of origin and destination. Clearance The size beyond which cars or loads cannot use Limits bridges, tunnels, etc. Cleat A strip of wood or metal used to afford additional strength, to prevent warping, or to hold in place. Clip-On Refrigeration equipment attachable to an insulated container that does not have its own refrigeration unit. CM Abbreviation for "Cubic Meter" (capital letters). cm Abbreviation for "centimeter." Coastwise Water transportation along the coast. COD Abbreviation for: - Collect (cash) on Delivery. - Carried on Docket (pricing). COFC Abbreviation for the Railway Service "Container On Flat Car." COGSA Carriage of Goods by Sea Act. U.S. federal codification passed in 1936 which standardizes carrier's liability under carrier's bill of lading. U.S. enactment of The Hague Rules. Collecting A bank that acts as an agent to the seller's bank (the presenting bank). The collecting bank assumes no responsibility for either the documents or the merchandise. Collection A draft drawn on the buyer, usually accompanied by documents, with complete instructions concerning processing for payment or acceptance. Combination Export Mgr. A firm that acts as an export sales agent for more than one noncompeting manufacturer. Combination Rate A rate made up of two or more factors, separately published. Commercial Invoice Represents a complete record of the transaction between exporter and importer with regard to the goods sold. Also reports the content of the shipment and serves as the basis for all other documents about the shipment. Commodity Article shipped. For dangerous and hazardous cargo, the correct commodity identification is critical. Commodity Rate A rate published to apply to a specific article or articles. Common Carrier A transportation company which provides service to the general public at published rates. Common Law Law that derives its force and authority from precedent, custom and usage rather than from statutes, particularly with reference to the laws of England and the United States. Concealed Damage Damage that is not evident from viewing the unopened package. Conference An association of ship owners operating in the same trade route who operate under collective conditions and agree on tariff rates. Confirmed Letter of Credit A letter of credit, issued by a foreign bank, whose validity has been confirmed by a domestic bank. An exporter with a confirmed letter of credit is assured of payment even if the foreign buyer or the foreign bank defaults. Confirming Bank The bank that adds its confirmation to another bank's (the issuing bank's) letter of credit and promises to pay the beneficiary upon presentation of documents specified in the letter of credit. Connecting Carrier A carrier which has a direct physical connection with, or forms a link between two or more carriers. Consignee A person or company to whom commodities are shipped. Consignee Mark A symbol placed on packages for identification purposes; generally a triangle,square, circle, etc. with letters and/or numbers and port of discharge. Consignment (1) A stock of merchandise advanced to a dealer and located at his place of business, but with title remaining in the source of supply. (2) A shipment of goods to a consignee. Consignor A person or company shown on the bill of lading as the shipper. Consolidation Cargo containing shipments of two or more shippers or suppliers. Containerload shipments may be consolidated for one or more consignees. Consolidator A person or firm performing a consolidation service for others. The consolidator takes advantage of lower full carload (FCL) rates, and savings are passed on to shippers. Construction Differential Subsidy A program whereby the U.S. government attempted to offset the higher shipbuilding cost in the U.S. by paying up to 50% of the difference between cost of U.S. and non U.S. construction. The difference went to the U.S. shipyard. It is unfunded since 1982. Consul A government official residing in a foreign country who represents the interests of her or his country and its nationals. Consular Declaration A formal statement describing goods to be shipped; filed with and approved by the consul of the country of destination prior to shipment. Consular Invoice A document, certified by a consular official, is required by some countries to describe a shipment. Used by Customs of the foreign country, to verify the value, quantity and nature of the cargo. Consular Visa An official signature or seal affixed to certain documents by the consul of the country of destination. Consumption Entry (CE) The process of declaring the importation of foreign-made goods into the United States for use in the United States. Container A truck trailer body that can be detached from the chassis for loading into a vessel, a rail car or stacked in a container depot. Containers may be ventilated, insulated, refrigerated, flat rack, vehicle rack, open top, bulk liquid or equipped with interior devices. A container may be 20 feet, 40 feet, 45 feet, 48 feet or 53 feet in length, 8'0" or 8'6" in width, and 8'6" or 9'6" in height. Container Booking Arrangements with a steamship line to transport containerized cargo. Container Freight Station See CFS. Container Manifest Document showing contents and loading sequence of a container. Container Pool An agreement between parties that allows the efficient use and supply of containers. A common supply of containers available to the shipper as required. Container Terminal An area designated for the stowage of cargoes in container; usually accessible by truck, railroad and marine transportation. Here containers are picked up, dropped off, maintained and housed. Container Yard (CY) A materials handling/storage facility used for completely unitized loads in containers and/or empty containers. Commonly referred to as CY. Containerizable Cargo Cargo that will fit into a container and result in an economical shipment. Containerization Stowage of general or special cargoes in a container for transport in the various modes. Container Load A load sufficient in size to fill a container either by cubic measurement or by weight. Contraband Cargo that is prohibited. Contract A legally binding agreement between two or more persons/organizations to carry out reciprocal obligations or value. Contract Carrier Any person not a common carrier who, under special and individual contracts or agreements, transports passengers or property for compensation. Controlled Atmosphere Sophisticated, computer controlled systems that manage the mixtures of gases within a container throughout an intermodal journey reducing decay. Corner Posts Vertical frame components fitted at the corners of the container, integral to the corner fittings and connecting the roof and floor structures. Containers are lifted and secured in a stack using the castings at the ends. Correspondent Bank A bank that, in its own country, handles the business of a foreign bank. Cost, Insurance and Freight (CIF) Cost of goods, marine insurance and all transportation (freight) charges are paid to the foreign point of delivery by the seller. Countervailing Duty An additional duty imposed to offset export grants, bounties or subsidies paid to foreign suppliers in certain countries by the government of that country for the purpose of promoting export. Cross Member Transverse members fitted to the bottom side rails of a container, which support the floor. Cu. An abbreviation for "Cubic." A unit of volume measurement. Cube Out When a container or vessel has reached its volumetric capacity before its permitted weight limit. Cubic Foot 1,728 cubic inches. A volume contained in a space measuring one foot high, one foot wide and one foot long. Customhouse A government office where duties are paid, import documents filed, etc., on foreign shipments. Customhouse Broker A person or firm, licensed by the treasury department of their country when required, engaged in entering and clearing goods through Customs for a client (importer). Customs Government agency charged with enforcing the rules passed to protect the country's import and export revenues. Customs Bonded Warehouse A warehouse authorized by Customs to receive duty-free merchandise. Customs Entry All countries require that the importer make a declaration on incoming foreign goods. The importer then normally pays a duty on the imported merchandise. The importer's statement is compared against the carrier's vessel manifest to ensure that all foreign goods are properly declared. Customs Invoice A form requiring all data in a commercial invoice along with a certificate of value and/or a certificate of origin. Required in a few countries (usually former British territories) and usually serves as a seller's commercial invoice. Customs of the Port A phrase often included in charter parties and freight contracts referring to local rules and practices which may impact upon the costs borne by the various parties. Cut-Off Time The latest time cargo may be delivered to a terminal for loading to a scheduled train or ship. Cwt. Hundred weight (United States, 100 pounds: U.K.,112) CY - Abbreviation for Container Yard. - The designation for full container receipt/delivery. The terms in this glossary have been carefully selected from the myriad of terms one can encounter in the shipping business. We hope you will find it useful. This information is disseminated under the sponsorship of the Department of Transportation in the interest of information exchange. The U.S. Government assumes no liability for its contents or use thereof nor does it endorse products. D&H Abbreviation for "Dangerous and Hazardous" cargo. D.B.A. Abbreviation for "Doing Business As." A legal term for conducting business under a registered name. DDC Abbreviation for "Destination Delivery Charge." A charge, based on container size, that is applied in many tariffs to cargo. This charge is considered accessorial and is added to the base ocean freight. This charge covers crane lifts off the vessel, drayage of the container within the terminal and gate fees at the terminal operation. Deadhead One leg of a move without a paying cargo load. Usually refers to repositioning an empty piece of equipment. Deadweight Cargo A long ton of cargo that can be stowed in less than 40 cubic feet. Deadweight The number of tons of 2,240 pounds that a vessel can transport of cargo, stores and bunker fuel. It is the difference between the number of tons of water a vessel displaces "light" and the number of tons it displaces when submerged to the "load line." Deconsolidation Point Place where loose or other non-containerized cargo is ungrouped for delivery. Deficit Weight The weight by which a shipment is less than the minimum weight. Delivery Instructions Order to pick up goods at a named place and deliver them to a pier. Usually issued by exporter to trucker but may apply to a railroad, which completes delivery by land. Use is limited to a few major U.S. ports. Also known as shipping delivery order. DEMDES Demurrage/Despatch money. (Under vessel chartering terms, the amount to be paid if the ship is loading/discharging slower/faster than foreseen.) Demurrage A penalty charge against shippers or consignees for delaying the carrier's equipment beyond the allowed free time. The free time and demurrage charges are set forth in the charter party or freight tariff. - See also Detention and Per Diem. Density The weight of cargo per cubic foot or other unit. Depot, Container Container freight station or a designated area where empty containers can be picked up or dropped off. Despatch An incentive payment paid to a carrier to loading and unloading the cargo faster than agreed. Usually negotiated only in charter parties. Destination - The place to which a shipment is consigned. - The place where carrier actually turns over cargo to consignee or his agent. Destination Control Statements Various statements that the U.S. government requires to be displayed on export shipments. The statements specify the authorized destinations. Detention A penalty charge against shippers or consignees for delaying carrier's equipment beyond allowed time. Demurrage applies to cargo; detention applies to equipment. See Per Diem. Devanning The unloading of a container or cargo van. DF Car Damage Free Car. Boxcars equipped with special bracing material. Differential An amount added or deducted from base rate to make a rate to or from some other point or via another route. Discrepancy Letter of Credit When documents presented do not conform to the requirements of the letter of credit (L/C), it is referred to as a "discrepancy." Banks will not process L/C's which have discrepancies. They will refer the situation back to the buyer and/or seller and await further instructions. Displacement The weight, in tons of 2,240 pounds, of the vessel and its contents. Calculated by dividing the volume of water displaced in cubic feet by 35, the average density of sea water. Diversion A change made either in the route of a shipment in transit (see Reconsignment) or of the entire ship. Division Carriers' practice of dividing revenue received from through rates where joint hauls are involved. This is usually according to agreed formulae. Dock - For ships, a cargo handling area parallel to the shoreline where a vessel normally ties up. - For land transportation, a loading or unloading platform at an industrial location or carrier terminal. Dock Receipt A form used to acknowledge receipt of cargo and often serves as basis for preparation of the ocean bill of lading. Docket Present a rate proposal to a conference meeting for adoption as a conference group rate. Documents Against Acceptance (D/A) Instructions given by a shipper to a bank indicating that documents transferring title to goods should be delivered to the buyer only upon the buyer's acceptance of the attached draft. Documents Against Payment (D/P) An indication on a draft that the documents attached are to be released to the drawee only on payment. Dolly A set of wheels that support the front of a container; used when the automotive unit is disconnected. Door-to-Door Through transportation of a container and its contents from consignor to consignee. Also known as House to House. Not necessarily a through rate. D.O.T. Department of Transportation. Draft - The number of feet that the hull of a ship is beneath the surface of the water. - An unconditional order in writing, addressed by one party (drawer) to another party (drawee), requiring the drawee to pay at a fixed or determinable future date a specified sum in lawful currency to the order of a specified person. Draft, Bank An order issued by a seller against a purchaser; directs payment, usually through an intermediary bank. Typical bank drafts are negotiable instruments and are similar in many ways to checks on checking accounts in a bank. Draft, Clean A draft to which no documents are attached. Draft, Date A draft that matures on a fixed date, regardless of the time of acceptance. Draft, Discounted A time draft under a letter of credit that has been accepted and purchased by a bank at a discount. Draft, Sight A draft payable on demand upon presentation. Draft, Time A draft that matures at a fixed or determinable time after presentation or acceptance. Drawback A partial refund of an import fee. Refund usually results because goods are re-exported from the country that collected the fee. Drawee The individual or firm that issues a draft and thus stands to receive payment. Drayage Charge made for local hauling by dray or truck. Same as Cartage. DRFS Abbreviation for "Destination Rail Freight Station." Same as CFS at destination, except a DRFS is operated by the rail carrier participating in the shipment. DSU Delay in Startup Insurance is a policy to protect the seller of a construction project from penalties if the project is not completed on time. See "Liquidated Damages." Dry Cargo Cargo that is not liquid and normally does not require temperature control. Dry-Bulk Container A container constructed to carry grain, powder and other free-flowing solids in bulk. Used in conjunction with a tilt chassis or platform. Dumping Attempting to import merchandise into a country at a price less than the fair market value, usually through subsidy by exporting country. The terms in this glossary have been carefully selected from the myriad of terms one can encounter in the shipping business. We hope you will find it useful. This information is disseminated under the sponsorship of the Department of Transportation in the interest of information exchange. The U.S. Government assumes no liability for its contents or use thereof nor does it endorse products. The terms in this glossary have been carefully selected from the myriad of terms one can encounter in the shipping business. Glossary of Shipping Terms