Authorised Economic Operator: a status granted to traders and logistics providers meeting customs compliance and security standards, giving faster clearance and fewer inspections.

Example AEO-certified forwarders get priority processing.

See also Compliance, Customs Broker

A single quoted figure covering freight and the named surcharges, so the customer sees one number. What it includes must be stated, or disputes follow.

Example USD 1,500 all-in door to door, excluding duty and taxes.

See also Local Charges, THC

Air Waybill: the air carrier's transport document. Unlike a bill of lading it is never a document of title, so it cannot be traded.

Example Master air waybill covering a consolidation of house air waybills.

See also MAWB, HAWB

Bunker Adjustment Factor: a surcharge reflecting the cost of marine fuel, adjusted periodically by the carrier.

Example Freight quoted all-in, or as base freight plus BAF.

See also CAF, Surcharge

Freight carried in the holds of a passenger aircraft. It represents a large share of world air cargo and disappears when passenger flying stops.

Example Cargo moving under the cabin on a scheduled passenger service.

See also Main Deck, ULD

The position at a quay where a vessel ties up to work cargo. Berth availability is a common source of delay.

Example Waiting at anchorage for a berth to free up.

See also Anchorage, Terminal

The import declaration filed with customs to clear goods, listing value, classification and origin.

Example Filed electronically before the vessel arrives.

See also Shipping Bill, Assessment

A document issued by a carrier that does three jobs at once: it receipts the cargo, sets out the contract of carriage, and - if negotiable - represents title to the goods. Whoever holds an original negotiable bill controls the cargo.

Example An original set of three is issued; the consignee surrenders one to collect the goods.

See also Sea Waybill, Telex Release, Switch Bill

A facility where imported goods are stored with duty suspended until they are cleared for home use or re-exported.

Example Stock held in bond and cleared in batches as it is sold.

See also Duty Deferment, ICD

Cubic metre - the standard measure of shipment volume, calculated as length x width x height in metres.

Example 120 x 80 x 100 cm = 0.96 CBM per piece.

See also Volumetric Weight, LCL

Container Freight Station: a facility where LCL cargo is consolidated into and deconsolidated out of containers, usually near a port.

Example LCL cargo delivered to the CFS for stuffing.

See also LCL, ICD, Consolidation

The weight a shipment is billed on: the greater of actual gross weight and volumetric weight. It is why a light, bulky consignment can cost the same as a dense one.

Example 300 kg actual against 480 kg volumetric means you pay on 480 kg.

See also Volumetric Weight, Gross Weight

An unbroken temperature-controlled path from origin to destination. A single break can spoil the cargo even if the temperature is restored.

Example Pharmaceuticals held at 2-8C throughout.

See also Reefer, Temperature Excursion

The deadline for delivering cargo or documents for a given sailing. Miss it and the cargo rolls to the next vessel.

Example Gate cut-off Thursday, documentation cut-off Wednesday.

See also Rollover, Booking

Cargo classified as hazardous for transport, subject to declaration, packing, labelling and stowage rules under IMDG for sea and IATA DGR for air.

Example Class 3 flammable liquids requiring a DG declaration.

See also IMDG, DGR, UN Number

A charge for using the carrier's container inside the terminal beyond the free period. It is a container charge, not a storage charge, and it accrues per day.

Example Five days free, then a daily rate per box until pickup.

See also Detention, Free Time, Storage

A charge for keeping the carrier's container outside the terminal beyond the free period - typically while it is being unpacked at the consignee's premises.

Example Box collected Monday, returned empty the following week; detention runs from the end of free time.

See also Demurrage, Free Time

A refund of import duty paid on inputs that are subsequently exported, either as they are or after processing.

Example Duty refunded on imported components exported as finished goods.

See also Duty, Export Incentive

Full Container Load: the shipper takes a whole container, whether or not it is physically full.

Example One shipper books a 40' HC for their own cargo.

See also LCL, Consolidation

Forty-foot Equivalent Unit - two TEU. Often used when reporting cargo volumes rather than vessel capacity.

Example Annual volume of 4,000 FEU on the trade.

See also TEU

A container with no sides or roof, used for cargo too wide, long or heavy for a standard box.

Example Machinery loaded by crane, secured with lashings.

See also Open Top, Out of Gauge

The period during which cargo or equipment may sit without a storage or demurrage charge. It starts on discharge and varies by carrier, port and contract.

Example Seven days free at destination before demurrage begins.

See also Demurrage, Detention, Storage

A company that arranges transport on behalf of shippers, buying carriage from carriers and handling documentation, customs and coordination.

Example Forwarder arranges pickup, export clearance, ocean freight and delivery.

See also NVOCC, Customs Broker

House Air Waybill, issued by the forwarder to each individual shipper within a consolidation.

Example Each shipper tracks their cargo on the house number.

See also MAWB, Consolidation

The bill of lading a forwarder or NVOCC issues to its own customer for their part of a consolidated shipment.

Example Each LCL shipper receives a house bill for their pallets.

See also Master Bill, Consolidation

The Harmonized System code that classifies a product for customs. The first six digits are international; countries extend them further. Classification drives the duty rate and any restrictions.

Example 8471.30 for portable computers.

See also Tariff, Duty, Classification

Inland Container Depot: a customs-notified facility away from the coast where containers are stuffed, cleared and railed to a port. It moves the customs boundary inland.

Example Cargo cleared at an ICD and railed to Nhava Sheva.

See also CFS, Dry Port, Customs

A set of standard trade terms published by the International Chamber of Commerce that define who arranges and pays for carriage, where risk passes, and who clears customs.

Example Sold FOB Nhava Sheva under the 2020 edition.

See also FOB, CIF, DAP

Less than Container Load: cargo from several shippers consolidated into one container, charged on volume or weight, whichever is greater.

Example Three pallets moving with other shippers' cargo.

See also FCL, CFS, Consolidation

The elapsed time from placing an order to receiving the goods, including production, transit and clearance - not just the sailing time.

Example 45 days door to door including 28 days transit.

See also Transit Time, Buffer Stock

The upper cargo compartment on a freighter aircraft, taking full-height pallets. Passenger aircraft have no main deck cargo.

Example 30 pallet positions on the main deck of a 747F.

See also Lower Deck, Belly Cargo

The bill of lading issued by the actual carrier to the NVOCC or forwarder who booked the space.

Example One master bill covers a consolidated container holding twenty house bills.

See also House Bill, NVOCC

Master Air Waybill, issued by the airline to the consolidator for the whole shipment.

Example One MAWB covering forty house shipments.

See also HAWB, AWB

Carriage using at least two different modes under a single contract and one responsible operator.

Example Truck to ICD, rail to port, ocean to destination, truck to door.

See also Intermodal, MTO

A Non-Vessel Operating Common Carrier: a party that issues its own bills of lading and acts as carrier to the shipper, while buying space from the vessel operator.

Example A consolidator issuing house bills against a carrier master bill.

See also House Bill, Master Bill, Consolidation

Cargo that exceeds the dimensions of the container carrying it, requiring special stowage and attracting surcharges.

Example A load overhanging a flat rack by half a metre each side.

See also Flat Rack, Breakbulk

A refrigerated container with its own machinery, used for temperature-controlled cargo. It needs power on the quay, on the vessel and on the truck.

Example Set point -18C for frozen seafood.

See also Cold Chain, Genset

When booked cargo is not loaded on the intended vessel and moves to a later one, whether through overbooking, missed cut-off or port congestion.

Example Two boxes rolled to next week's sailing.

See also Cut-off, Overbooking

A non-negotiable transport document. The named consignee takes delivery on identification, without surrendering an original, which speeds up release but removes the document of title.

Example Used where seller and buyer are related companies or payment is already secured.

See also Bill of Lading, Telex Release

The export declaration filed with customs, without which goods cannot legally leave the country.

Example Filed against the invoice and packing list before stuffing.

See also Bill of Entry, Export Clearance

The weight of the empty container itself, stencilled on the door. It is deducted from the gross to establish the payload actually carried.

Example A 40' HC at roughly 3,900 kg tare.

See also Payload, VGM

An instruction from the origin office confirming that original bills have been surrendered, allowing the destination office to release cargo without paper.

Example Shipper surrenders originals in Mumbai; the Rotterdam office releases against the telex message.

See also Bill of Lading, Express Release

Twenty-foot Equivalent Unit, the standard way of counting container volumes. A 20' box is one TEU, a 40' is two.

Example A vessel of 18,000 TEU capacity.

See also FEU, Slot

Terminal Handling Charge: the terminal's fee for moving a container between the quay and the stack. Charged at both ends and quoted separately from ocean freight.

Example Origin THC at Nhava Sheva, destination THC at Rotterdam.

See also Local Charges, FOB

Moving cargo from one vessel to another during the voyage, usually at a hub port. It adds transit time and a handling risk, and some letters of credit prohibit it.

Example Nhava Sheva to Rotterdam via Colombo.

See also Direct Service, Hub Port

Unit Load Device: the pallets and containers that cargo is built into for loading aboard an aircraft. Shapes are dictated by the fuselage.

Example An AKE container for a lower deck, a PMC pallet for a main deck.

See also Pallet Position, Main Deck

Verified Gross Mass: the certified total weight of a packed container and its contents, which the shipper must declare before loading under SOLAS rules.

Example No VGM, no loading - the box stays on the quay.

See also Tare Weight, SOLAS

A weight derived from a shipment's dimensions, used so that carriers are paid for the space consumed. Air freight commonly divides cubic centimetres by 6000; sea LCL usually treats one cubic metre as one tonne.

Example 1.2 x 0.8 x 1.0 m by air = 160 kg volumetric.

See also Chargeable Weight, CBM