Shipping products seems simple, right? You simply package the product and send it to your customer. But did you know there are different types of shipment?

Depending on the size of your item(s) being sent, it may be considered parcel, less-than-load (LTL) or a full truckload (FTL) shipment. Your shipment may be too small for certain carriers, or conversely, if you have a large shipment, you may have to rely on a carrier certified to ship large containers. There are also unique considerations depending on the mode of transport—whether you’re shipping via air, sea, road or rail.

When there are different types of shipping and multiple factors to consider, a wide variety of terms that relate to the process of moving goods through a supply chain may seem overwhelming. Understanding the different types of shipment and related terms is crucial to ensure your goods get shipped on time, within compliance and in good shape.

That's why we've put together this glossary of international shipping terms you need to know. Note: there are abbreviations of terms used, we will discuss the full term and explain it all for you.

ACE

The Automated Commercial Environment (ACE) is the online web portal used to report data to the Automated Export System (AES) for exports leaving the United States, and also for customs filing for imports entering the United States.

AES

The Automated Export System (AES) is used by the U.S. government to collect data on exports. This data is called Electronic Export Information (EEI), and often exporters are legally required to file the EEI through AES for each shipment. The U.S. Census Bureau uses this data to calculate trade statistics such as gross domestic product (GDP), while U.S. Customs and Border Protection (CBP) uses it to make sure exporters are following U.S. export regulations.

Aggregate Shipment

Multiple shipments—from different sellers to a single consignee—that are consolidated by the carrier into a single shipment.

Air Waybill (AWB)

The AWB is a document that controls the routing of an exporter’s cargo while it is in the hands of the air carrier or a consolidator. It is a contract for carriage; however, it cannot be negotiated.

Alongside

Refers to the side of a ship. Goods delivered alongside are placed on the dock or barge within reach of the ship’s rigging so it can be easily loaded onto the ship.

Apparent Good Order

When freight appears to be free of damage after being assessed it is said to be in apparent good order.

Arrival Notice

Notification provided by the carrier when a shipment has arrived to the consignee or notify party.

Astern

Means either "behind a ship" or "to move a ship in reverse direction."

ATDNSHINC

An abbreviation that stands for Any Time, Day or Night, Sundays and Holidays Included - referring to when a vessel will operate.

Athwartships

A direction across the width of a ship.

Audit

A detailed examination of a company’s processes to determine if the business is compliant. A government agency may audit a company’s processes or records as part of an investigation related to a potential compliance violation. Companies must pass periodic government audits to maintain their authorisations. Businesses may also conduct internal audits (also known as self-audit), or hire a third party to audit their processes. The Bureau of Industry and Security (BIS), the export control arm of the U.S. Department of Commerce, recommends that U.S. exporters periodically self-audit to ensure compliance procedures are working properly and are up-to-date with regulation changes.  Bad record-keeping lowers auditability.

Audit Trail

A system that stores and maintains records of business processes. With regards to exporting, companies are strongly encouraged to maintain an audit trail documenting their compliance screenings in order to demonstrate due diligence in case of an audit. Having an audit trail may protect your company from fines or penalties in the case of an export compliance violation.

Automatic Identification System (AIS)

A satellite system used by ships and vessel tracking service (VTS) to identify and locate ships.



Backhaul

Cargo carried on a return journey.

Balloon Freight

Freight that is low weight but high volume (light but bulky).

Bank Draft

A financial instrument provided by a bank and drawn on another bank.

Beam

The width of a ship.

Beneficiary

The individual/business that receives payment.

Bilateral

A bilateral agreement is one in which both parties agree to provide something for the other.

Bill of Lading

A document issued by a carrier or their agent acknowledging receipt of cargo for shipment. The common abbreviation you may have come across include BOL, BoL, B/L or BL. If there were no issues with the cargo stated, it is said to be a clean bill of lading.

Bill of Sale

A document that confirms transfer of goods in exchange for money.

Bill-To Party

The party paying for goods or services in a transaction.

BIS

The Bureau of Industry and Security (BIS) is an agency within the U.S. Department of Commerce responsible for enforcing the Export Administration Regulations (EAR).

Blocking

Wood or metal supports used to secure cargo while in transit. This is sometimes referred to as Bracing.

Block Stowage

Loading cargo close together to minimise movement of goods while in transit.

Bolster

Equipment attached to a chassis or railcar to secure the container.

Bond Port

The initial port of entry where a vessel transporting goods first arrives at a country.

Bow

The front of a vessel.

Broken Stowage

The empty space in a container.

Bulk Cargo

Cargo that is shipped loose as opposed to being shipped in packages or containers. Grain and coal are examples of goods usually shipped as bulk cargo.

Bull Ring

A device attached to the floor of a container which is used to secure cargo.

Cabotage

Transport of goods between two places in the same country by a transporter from another country.

CAFTA-DR

The Dominican Republic-Central America Free Trade Agreement is a free trade agreement between the United States and several countries and nations, such as the Dominican Republic,  Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua. The agreement includes a most favoured nation (MFN) clause, which requires that service suppliers in one country may not be treated any less favourably than suppliers in other countries that are part of the agreement. It also includes provisions that protect companies in member countries from unfair investment practices, protect intellectual property rights and establish procedures for dispute resolution.

Cargo

Goods being transported, regardless of the mode of transport.

Cargo Declaration

Information submitted prior to, upon arrival or upon departure of an international shipment required by a country’s customs authority.

Cargo Manifest

A document detailing the cargo carried on a ship, often provided to a customs authority.

CARICOM

An intergovernmental organisation of 15 Caribbean countries whose goal is to promote economic integration and cooperation between member states. This zone is called the Caribbean Common Market.

Carnet

A document permitting the holder to temporarily send goods to certain foreign countries for display or demonstration purposes without having to pay duties.

Cash on Delivery (COD)

The sale of goods in which payment is made upon delivery rather than in advance.

Carrier

A carrier is a party that transports goods for another person or company and is responsible for any possible loss of or damage to the goods during transport. A common carrier provides transportation services to the public in return for compensation. A contract carrier provides this service under special contracts, often for government clients.

CBP

Customs and Border Protection (CBP) is the agency within the U.S. government tasked with controlling the flow of people and goods into and out of the country, and with enforcing import and export regulations.

CCL

The Commerce Control List (CCL) is a list of dual-use items (items that have both a commercial application as well as a potential military application) published as part of the U.S. Department of Commerce’s Export Administration Regulations (EAR). Each item is identified with an Export Control Classification Number (ECCN). So knowing the right ECCN for your product is an essential role in determining if you need an export license.

CE Mark

A label indicating cargo conforms to standards established by the European Union.

Certificate of Conformity (CoC)

A document issued by an authorised party that states that a particular product meets relevant standards of quality and performance. 

Certificate of Free Sale

A document that indicates a particular product is marketed as eligible for export, and that the particular manufacturer has no unresolved enforcement actions pending before or taken by the U.S. Food and Drug Administration (FDA). It is often used when exporting to countries whose regulatory agencies are not as well-developed as others such as the United States’ FDA.

Certificate of Inspection

A document certifying that merchandise is in good condition immediately prior to being shipped.

Certificate of Origin (COO)

A document certifying where goods were originally made. A COO specific to a particular free trade agreement may be used to claim preferential duty treatment. A generic certificate of origin may be requested by the customs authority of the country of import, in which case the COO must be stamped by a chamber of commerce.

CFR

The Code of Federal Regulations (CFR) is the codification of rules and regulations published in the U.S. Federal Register.

Chamber of Commerce

An association of businesses that may serve several functions, including advocating or lobbying for their member companies, organising business-related programming and events in their communities, and, perhaps most relevant for exporters, providing document certification services.

Chamber Stamp

Some documents require a stamp from a U.S. chamber of commerce to be considered valid. The process of stamping the document is called chamberisation, and a document that has received a chamber stamp is said to be chamberised.

Chassis

The base frame of a wheeled vehicle, used to secure a container prior to movement.

Chock

Material placed next to cargo to prevent excessive movement of the cargo during transit in order to avoid damage.

CL

The abbreviation used for carload or containerload.

Claim

In this context, a claim is a demand made by a customer to a transportation company for payment in order to compensate for loss or damage of goods.

Code of Federal Regulations (CFR)

The codification of the general and permanent rules published by the U.S. Office of the Federal Register; the place where all U.S. federal regulations are published. 15 CFR (Title 15 of the CFR) is the section on Commerce and Foreign Trade.

Commerce Country Chart

Part of the Export Administration Regulations (EAR), which helps exporters determine if they need to apply for an export license in order to ship a particular product to a particular country.

Commercial Invoice

A fundamental document for an international transaction with details including what goods are being shipped, who is the shipper and who is the ultimate consignee. Serves as the basis for all other documents related to the shipment.

Compliance

In this context, being compliant or maintaining compliance means that the company in question is following all applicable laws and rules which govern their shipments. In this context, the more specific terms regulatory compliance or trade compliance may be used to differentiate from other uses of the term, as the word compliance has other meanings in other contexts such as in the fields of medicine and psychology. A business practice that goes against specific laws is termed a compliance violation.

Concealed Loss/Concealed Damage

Shortage of or damage to goods shipped that is not immediately evident upon delivery.

Connecting Carrier

A carrier which acts as an intermediary between two or more other carriers.

Consignee

The person or place to whom a shipment will be transferred. The ultimate consignee is the final recipient of the goods, while an intermediate consignee takes possession of the goods for a portion of the time that they are in transit.

Consignment

A shipment of goods to a consignee.

Consignor

Refers to the exporter or shipper from which the goods originate. 

Consolidation

When cargo from multiple shippers is combined in a single container.

Consul

A government official residing in a foreign country who represents the interests of their home country.

Consumption Entry

When goods are imported into the United States without any time or use restrictions. The official U.S. Customs and Border Protection (CBP) website states that about 95% of all imports fall into this category.

Container

A truck trailer loaded with cargo that can be detached for loading onto a vessel or railcar. Different types of containers exist for different shipping needs. For example, a container may be ventilated, refrigerated, insulated, dehumidified or equipped with special devices used to secure certain types of cargo. A container shipment is a large shipment, typically over 20,000 pounds.

Container Manifest

A document clearly identifying the contents of a container, its point of origin and point of destination. Vessels may be required by law to produce a manifest for every container being transported. 

Contraband

Prohibited cargo such as illegal drugs or unauthorised weapons.

C-TPAT

U.S. Customs and Border Protection established Customs-Trade Partnership Against Terrorism in November 2001 as a voluntary partnership to help ensure supply chain security. Meeting C-TPAT standards enables faster processing through customs inspections and formalities.

Cube Out

Refers to when a container or vessel has reached its volumetric capacity before reaching its weight capacity.

Customs Bonded Warehouse

A warehouse authorised to receive duty-free goods.

Customs Broker

An individual or organisation who helps a shipper navigate customs requirements.

Customs Clearance

The process in which a customs authority assesses a shipment being imported in their country in order to ensure compliance with their country’s import regulations. A shipment that has been approved and allowed to enter the commerce of their country is said to have cleared customs.

Customs Entry

Also called Entry Summary or Form 7501, is a document that provides U.S. Customs and Border Protection (CBP) with details about a shipment being imported into the United States, such as value, classification and origin. CBP uses the form to calculate duties owed.

Customs of the Port (COP)

A phrase referring to local rules and practices which may impact a shipment.

Customs Value Only

Some shipments involve no actual monetary transaction between the exporter and the consignee, such as shipments for repair under warranty, or shipments of items used for display at trade shows. These shipments are still subject to duties and taxes, and exporters must list the monetary value of the items in the shipment on the customs invoice to enable the customs authority in the country of import to assess how much duty the importer must pay. In these cases, the exporter should include a customs value only statement on the invoice.

Cut-Off Time

The latest time cargo may be delivered to a terminal for loading.

Dangerous Goods

For something to be considered a dangerous good, it has to be corrosive, flammable, poisonous, toxic, explosive, etc. Shipping dangerous goods often requires special documentation or packaging to ensure safety.

Dangerous Goods Declaration

A document required when shipping dangerous goods. There are two main versions: the DG IATA form for air transport and the DG IMO form for inland and ocean transport. There is a third version specifically for shipments of lithium batteries, which is called a Lithium Battery Declaration.

Destination Control Statement

A legal statement added on an export invoice that specifies that the goods are to be transferred to the ultimate consignee and no other party. Diversion to other countries or parties without authorisation is a violation of U.S. law.

DDTC

Directorate of Defense Trade Controls (DDTC) is the government agency tasked with enforcing the International Traffic in Arms Regulations (ITAR), which regulate the export of space- and defense-related products.

D&H

Abbreviation often used for “dangerous and hazardous” cargo.

DBA

This abbreviation stands for “doing business as” - used to specify that a company is doing business under a certain registered name.

Deconsolidation Point

Location where cargo is separated in preparation for delivery.

Deemed Export

Transmission of controlled technology, source code or information to a foreign national at home or abroad. Export regulations apply to deemed exports as well.

Delivery Receipt

A specific document signed and dated by a consignee or their authorised agent confirming receipt of goods and stating the condition of the goods upon delivery.

Demurrage/Detention

Demurrage is a charge to be paid by a shipper or consignee to the carrier as penalty for delaying the carrier’s cargo beyond the allowed free time. Detention is the same as demurrage except that instead of applying to delays in cargo, detention applies to delays in equipment.

Denied Party Screening

This is the process of screening potential customers, partners or vendors against denied party lists. These are lists of individuals or organizations that a government has identified as parties that one can’t do business with and that one may be penalised for doing business with.

Destination Control Statement

A legal statement put on a shipping document that specifies that the goods are to be transferred to the ultimate consignee and no other party. Diversion to other countries or parties without prior authorisation is a violation of U.S. law.

Discrepancy

When documents presented do not conform to the requirements of the letter of credit. Banks will not accept letters of credit that have discrepancies.

Distribution Center

A location created for circulation of products into a specific market. This may or may not be a part of the same company that uses it to move their products to market. A company that specializes in distributing other companies’ products is called a distributor.

Diversion

Diversion refers either to a change made to the route of a shipment/vessel or the transfer of goods from the intended end-user to some other party.

Dock

For road transportation, a platform from which trucks are loaded and unloaded. For sea transportation, a cargo handling area adjacent to the shoreline where a ship ties up.

Dock Receipt

A document used to acknowledge receipt of cargo. Provides the framework for the preparation of an ocean bill of lading.

Drawback

A partial refund of an import fee, usually given if goods are re-exported from the country that collected the fee.

Drayage

Transport of goods over a short distance. Some definitions specify that drayage is the transport of goods in which both the trip origin and destination are within the same urban area. Also called cartage.

Drop Shipping

A popular form of retail business in which the seller takes orders from customers but does not keep the items in stock. Instead, it passes on the order to a manufacturer, wholesaler, another retailer or a fulfillment house that ships the order directly to the customer.

Due Diligence

A company that makes a good faith effort to comply with all relevant rules and regulations that apply to them is said to be practicing due diligence. If you are found to be out of compliance with a particular regulation, demonstration of due diligence can be a mitigating factor against facing fines or penalties.

Dumping

Importing goods into a country at a price less than the fair market value.

Dutiable Value

The amount on which a customs duty is calculated.

Duties

Taxes collected on importing and exporting goods.

EAR

The Export Administration Regulations (EAR) regulate exports of dual-use items, meaning items that have both a commercial use as well as a potential military application.

ECCN

Export Control Classification Numbers (ECCN) are alphanumeric codes used to identify dual-use items, meaning items that have both a commercial use as well as a potential military application. Knowing the right ECCN for your product plays a role in determining if you need an export license.

eCO

An electronic Certificate of Origin (eCO) is a digital document issued by a registered chamber of commerce to an exporter. Certificates of origin are a common customs document required by many countries and as part of various free trade agreements. An eCO is certified by a chamber of commerce electronically, which enables the certification process to occur more efficiently and at lower cost. Shipping Solutions has partnered with the American World Trade Chamber of Commerce (AWTCC) to provide the Shipping Solutions eCO Portal. 

EEI

Electronic export information (EEI) is data that exporters report to the Automated Export System (AES) via the Automated Commercial Environment (ACE) online web portal.

Electronic Data Interchange (EDI)

The electronic transmission of business documents such as invoices, purchase orders and bills of lading.

Embargoes

Sanctions are prohibitions designed to protect economic or national security and may include trade barriers, tariffs and restrictions on financial transactions. Embargoes are similar but usually refer to more severe restrictions such as travel bans or blockades.

Eminent Domain

The power of a sovereign government to take property for a necessary public use.

Empty Repo

Stands for empty repositioning; refers to the movement of empty containers.

End-User

The last recipient of a delivery/shipment. Generally synonymous with ultimate consignee. This may be different from the party being billed for the shipment.

Endorsement

A legal signature that signals transfer of rights from one party to another.

Equipment Interchange Receipt (EIR)

A document used when transferring a container from one carrier to another, or from one terminal to another.

ERP

Enterprise resource planning (ERP) software helps companies with order-processing and accounting. Some of these systems include international shipping or trade compliance modules, but these are often limited in their functionality.

Export Compliance Program (ECP)

A company's written set of procedures for ensuring compliance when exporting.

Export Controls/Import Controls

Refers to licenses, permits and other authorisations which may be required from a government to legally export or import something.

Export Documentation Software

A software tool used by a company to ensure consistency, efficiency and auditability in their export documentation and compliance process, such as Shipping Solutions.

Export License

A government-issued permit that authorises a shipper to export a certain good or to export to a certain country or party.

Export Management Company

Exporting companies without their own export department sometimes outsource their export operations to an export management company (EMC).

FAK

A common abbreviation used in international shipping that stands for “freight all kinds.” Often refers to a full container loaded with mixed cargo.

False Billing

Misrepresenting freight information on shipping documents.

Federal Maritime Commission (FMC)

The agency within the U.S. federal government tasked with enforcing laws related to transport of goods by sea.

Federal Register

The Federal Register (common abbreviation include Fed. Reg., FedReg, or FR) is the official journal where new rules and regulations are published.

Force Majeure

A common clause included in contracts that exempts parties for not fulfilling their obligations due to events beyond their control, such as natural disasters or war.

Fore and Aft

The direction on a ship parallel to the centre line.

Foreign Trade Zone

Areas where commodities can be manufactured, modified or stored under specific customs regulations and generally not subject to customs duties.

FPPI

Foreign principal party of interest is the party to whom final delivery of the goods will be made, typically the foreign buyer.

Freight

Any product(s) being transported.

Freight Broker

A person who arranges transportation on behalf of a shipper. Typically a freight broker will connect small shippers to carriers who can move their goods.

Freight Forwarder

A company that arranges the transportation of goods on behalf of a shipper. A freight forwarder may have its own in-house carriers or may contract with external carriers.

FTA

Free trade agreements (FTA) are made between countries in an effort to reduce barriers to trade between the participating countries. They usually involve lowering of duty rates for shipments between participating countries, but may also include provisions for intellectual property rights, environmental protection, dispute resolution and more.

FTR

The Foreign Trade Regulations (FTR) are a set of regulations placed on international trade in the U.S. They are established and updated by the U.S. Census Bureau. It is in the FTR that the requirement to file the Electronic Export Information (EEI) through the Automated Export System (AES) can be found.

Full Truckload (FTL)

A full truckload (FTL) carrier is a carrier that contracts the entirety of a truck’s carrying capacity to a single customer.

General Agreement on Tariffs and Trade (GATT)

Often referred to as GATT, is a legal agreement between many countries which promoted international trade by eliminating trade barriers such as tariffs and quotas. It was succeeded by the World Trade Organization (WTO) in 1995.

General Order

When U.S. Customs orders shipments without entries to be kept in their custody.

Gross Vehicle Weight (GVW)

The total weight of a vehicle including the weight of the vehicle itself and any attached containers.

Harbour

A place where ships stop to resupply and load or unload cargo.

Harbour Master

An official responsible for overseeing harbour operations.

Hatch

The opening on the deck of a ship that gives access to the cargo hold.

Hazardous Materials

These are goods that may pose a threat to safety because they are poisonous, toxic, corrosive, explosive, flammable, etc.  It is more common to see the term “hazardous materials” used when shipping domestically within the U.S., whereas the term “dangerous goods” is used more often when shipping internationally.

HMF

This simply stands for Harbor Maintenance Fee.

HS

The Harmonized System(HS) is an internationally accepted system used to classify products. The first six digits of an HS code are universal across all countries, but each country will add additional digits to further add specification to products. These codes determine import and export controls as well as duty rates.



IMDG

International Maritime Dangerous Goods  (IMDG) codes are the regulations established by the International Maritime Organization (IMO) for the international transport of dangerous goods.

Import Declaration

Information submitted by an importer or their agent to their country’s customs authority before or upon importation of goods, such as the contact details of the importer, how the goods are being transported and the tariff classifications and values of the items on the shipment.

Import License

A government-issued permit authorising a party to import a good into the country.

In Bond

An import or export shipment that has not yet cleared customs is referred to as in bond.

Interchange Point

A location where freight is transferred from one carrier to another.

Intermodal

Intermodal transportation is the movement of goods via more than one type of transportation (e.g. air, rail, sea, truck, etc.). An intermodal container is one that can be used in different modes of transport without having to unload the goods and reload them at each point at which the mode of transport changes. In the context of international trade, intermodal container is usually synonymous with container. 

International Chamber of Commerce (ICC)

The ICC plays a role in rule setting, dispute resolution, and policy advocacy in international trade, supporting the commerce goals of the United Nations and the World Trade Organisation. 

Inward Foreign Manifest (IFM)

A document listing all cargo entering a country.

ISPM 15

International Standards for Phytosanitary Measures No. 15 (ISPM 15) is an international environmental standard for treating wood packaging materials (WPM) in order to curb the spread of plant pests. Under the ISPM 15 rules, all wood packaging materials such as pallets, crates and boxes must be debarked, then heat treated or fumigated to eliminate insects or diseases which could be harmful to ecosystems.

JIT

Simply stands for "just in time." A method of inventory control which minimizes warehousing and in which the container itself acts as a movable warehouse and arriving on schedule is crucial.

J-List

Found in 19 CFR 134.33, the J-List is a list of items exempt from country of origin marking requirements when importing into the United States. Items on the J-list are usually exempt because they are either incapable of being marked (e.g. liquids) or marking them is impractical (e.g. fine art).

Laden

Loaded aboard a vessel.

Landed Cost

The total cost of an international shipment, found by adding the price paid by the buyer to the seller, shipping costs, shipment insurance and all applicable import duties and fees.

Less-than-Truckload, Less-than-Load (LTL)

A medium shipment, typically between 150 pounds and 20,000 pounds. An LTL carrier mixes freight from several customers in a single truckload. May also be called less-than-container (LCL).

Letter of Credit

Also known as a documentary collection and abbreviated as LC or L/C, a letter of credit is a written commitment by a bank issued after a request by an importer that payment will be made to an exporter provided that the terms of the letter of credit have been met as evidenced by the presentation of certain documents.

License Exception

Certain criteria may be met that allow an exporter to export a product without an export license in cases where an export license would normally be required.

Liquidated Damages

The penalty a seller must pay the buyer if a project does not meet the standards or deadline outlined in the sales contract.

Logistics

The management of the flow of products as they are transported from the point of origin to their final destination. A logistics company is a general term for a company that provides logistics services, which may include freight forwarding, customs brokerage and/or consulting services.

Longshoreman

A port employee tasked with loading and unloading ships.

Maritime

Relating to transport by sea.

Marking

Letters, numbers or other symbols placed on packaging used for identification purposes.

Master Bill of Lading

A bill of lading issued by a carrier to a freight forwarder acknowledging receipt of container for shipment. This is different from a house bill of lading which is issued by a freight forwarder to a shipper, acknowledging receipt of their items for shipment.

Most Favoured Nation

This term is commonly abbreviated to MFN, and its a status accorded by one national government to another in the context of international business. A country with MFN status may not be treated less favourably in international transactions than any other country with MFN status. 

MPF

Merchandise processing fee.



NAFTA

The North American Free Trade Agreement (NAFTA) was established to harmonise trade between the United States, Canada and Mexico. Companies located in these countries may be eligible for reduced duty rates when importing if their goods qualify under the right terms. t is important to know that NAFTA was replaced on July 1, 2020, by the United States-Mexico-Canada Agreement (USMCA).

NCBFAA

The National Customs Brokers and Forwarders Association of America (NCBFAA) is an organisation representing the interests of customs brokers and freight forwarders in the U.S.

NEC, NES

Not elsewhere classified, not elsewhere specified.

Negotiable/Non-Negotiable

A negotiable instrument is a document that can be transferred from its original holder to a third party. A non-negotiable document cannot be transferred to another party. An inland or ocean bill of lading may be either negotiable or non-negotiable; a bill of lading consigned “to order” or “to order of shipper” is negotiable once it is endorsed on the back by the shipper or their representative. Airwaybills are always non-negotiable.

Net Weight

The weight of goods not including the weight of their packaging.

Non-Dumping Certificate

Required by some countries to ensure protection against dumping of certain products.

NVOCC

A non-vessel operating common carrier (NVOCC) behaves like a carrier except it doesn’t provide the actual transportation service itself. Instead, a NVOCC buys space from carriers and sells this space to shippers. For more on NVOCC, click HERE.

On Board

A notation on a bill of lading indicating that cargo has been loaded on a ship.

On Deck

A notation on a bill of lading indicating that cargo has been stowed on the open deck of a ship.

Open Account

A transaction in which goods are shipped to a foreign buyer without guarantee of payment.

Operating Ratio

A measure of operating efficiency based on a comparison between a carrier’s operating expenses and its net sales.



Overage

When the number of units received is greater than the quantity stated on the export documents. Opposite of shortage.

Panama-United States Trade Promotion Agreement

The free trade agreement between the United States and Panama that came into effect in October 2012. It is designed to eliminate obstacles to trade between the two countries and is notable for being the United States’ only bilateral free trade agreement with a Central American country.

Parcel/Package/Small Parcel/Small Package

A small shipment, typically less than 150 pounds.

Payee

The party paid in a transaction; the seller.

Payer

The party paying money in a transaction; the buyer.

Phytosanitary Inspection Certificate

A document issued by the U.S. Department of Agriculture certifying that a shipment has been inspected and is free from harmful pests and plant diseases. Used to meet import requirements of other countries.

Place of Delivery

Location where cargo leaves the custody of a carrier.

Place of Receipt

Location where cargo enters the custody of a carrier.

POD

Abbreviation for one of three things: 1) port of discharge 2) port of destination or 3) proof of delivery - a document provided by the carrier required to receive payment.

Point of Origin

The location where a shipment is transferred from a shipper to a carrier.

POL

Abbreviation for either port of loading or petroleum, oil and lubricants.

Political Risk

The likelihood that political forces will cause drastic changes in a country’s business environment that adversely affect the profit and other goals of a business enterprise. This may include political violence, expropriation, confiscation and domestication.

Port of Call

Port where a ship discharges or receives traffic.

Port of Entry

Port where cargo is unloaded and enters a country.

Port of Exit

Port where cargo is loaded and leaves a country.

PPI

Principal party of interest.

Prepaid

Freight charges paid by a shipper prior to release of bills of lading by the carrier.

Proforma Invoice

A document that acts as a formal quote, produced by the seller and given to the potential buyer before a transaction is finalised.

Quarantine

A restriction placed on an operation in order to protect public health and safety.

Quota

The quantity of goods that may be imported without restrictions over a set period of time.

Quotation

Usually referred to as a quote, an offer to sell goods at an agreed upon price.

Rate Basis

The formula of specific factors that play a role in determining freight rates.

Reasons for Control

Specific reasons that denote why an exporter would need to apply for an export license. Examples include National Security (NS) and Regional Stability (RS). These exist both at the country level and at the Export Control Classification Number (ECCN) level.

RFP, RFQ

Request for proposal, request for quotation.

Remittance

Funds sent by one person to another as payment.

Revenue

Payment received by a carrier for transporting goods.

Roll-on/Roll-off

These are vessels designed to carry wheeled cargo, such as vehicles and trailers. This is in contrast to lift-on/lift off (LoLo) vessels which use a crane to load and unload cargo.

Sanction

An embargo enforced by a government against another country.

SBA

The Small Business Administration (SBA) is an agency  that exists to encourage and facilitate the growth and development of small businesses and entrepreneurs in America. 

SCAC

Standard Carrier Alpha Codes (SCAC) are developed by the National Motor Freight Traffic Association and used to identify inland carriers in the U.S.

Section 232 Tariffs

Under Section 232 of the Trade Expansion Act of 1962, the President of the United States is granted the power to adjust import tariffs if excessive foreign imports pose a threat to national security.

Section 301 Tariffs

Under Section 301 of the Trade Act of 1974, the Office of the United States Trade Representative (USTR) files a Special 301 Report annually which identifies “Priority Foreign Countries,” countries that have inadequate intellectual property laws or have violated trade agreements. These countries may be subject to sanctions or tariffs at the behest of the President of the United States.

Shipper’s Letter of Instruction (SLI)

A document outlining instructions for the freight forwarder. If the freight forwarder is filing through the Automated Export System (AES) on behalf of the exporter, the SLI includes the information they need to complete the filing.

Shipping Documents

Paperwork that accompanies a shipment as it makes its way to the final destination, such as packing lists or bills of lading.

Shipping Solutions

An export documentation and compliance software program that makes creating accurate export documents fast and easy.

SOLAS

Under the Safety of Life at Sea Convention (SOLAS), exporters are required to provide a verified weight of the goods before they are loaded onto a ship for transport.

Sourcing

The procurement of goods or services from a particular entity or country, as well as the business process of vetting potential suppliers to determine which will give the greatest strategic advantage.

Spotting

Placing a container in a position from which it can be loaded or unloaded.

Starboard

The right side of a ship (when facing forward).

Stern

The backside of a ship.

STC

Stands for "said to contain".

Stevedore

Individual or company that employs longshoremen and contracts for the loading and unloading of ships.

Stuffing

Putting cargo into a container.

Supply Chain

A system of interconnected organisations and activities involved in the movement of goods from a supplier to a customer.

Surcharge

An extra or additional charge.

Surtax

An extra or additional tax.

Tare Weight

The weight of a container while empty.

Terminal

A location where containers are picked up, dropped off, maintained and kept.

Terminal Charge

A charge for a service carried out in a carrier’s terminal area.

Third Party Logistics (3PL)

A company that provides logistics services to other companies, such as warehousing and transportation.

TL

Simply stands for trailer load.

Trailer

A container attached to the back end of a truck.

Transshipment

The transfer of cargo from one carrier to another or from one vehicle to another at an intermediate point during the goods’ journey to the final destination.

Truck Tonnage

The weight (in tons) of a shipment transported by truck.

Ullage

The space not filled with liquid in a drum or tank.

Unclaimed Freight

Freight that has not been called for or picked up by the owner or ultimate consignee.

United States-Chile Free Trade Agreement

A free trade agreement between the United States and Chile.

United States-Colombia Trade Promotion Agreement (CTPA)

A free trade agreement between the United States and Colombia. The United States is Colombia’s leading trade partner. Immediately upon implementation, the agreement eliminated 80% of duties on U.S. consumer and industrial exports to Colombia. It also granted duty-free status to a variety of agricultural exports from both countries, including beef, cotton, wheat and certain fruits and vegetables.

United States-Israel Free Trade Agreement

A free trade agreement between the United States and Israel. The agreement reduces or eliminates duties on imports into the United States from Israel and contributed to the U.S. becoming Israel’s top trading partner. It is the only U.S. free trade agreement to not include provisions on intellectual property rights.

United States-Korea Free Trade Agreement

A free trade agreement between the United States and South Korea, officially named the Free Trade Agreement Between the United States of America and the Republic of Korea (KORUS).

United States-Peru Trade Promotion Agreement

Called the PTPA for short, this is a free trade agreement between the United States and Peru that was implemented in February 2009. More than two-thirds of U.S. farm exports to Peru became duty free immediately upon implementation. In addition to commerce, the agreement includes provisions related to intellectual property rights, labor and environmental policies.

UN Number

An internationally recognised four-digit code used to identify dangerous goods.

USPPI

The United States principal party of interest is the party that receives the primary benefit from an export transaction, monetary or otherwise. Usually the seller of the goods.

Value-Added Tax (VAT)

A consumption tax assessed that increases at every point in the supply chain where value is added to it.

Vessel

A seafaring vehicle; a boat or ship.

Vessel Manifest

A document listing details regarding the crew and cargo onboard a vessel.

Vessel Traffic Service (VTS)

A traffic monitoring system used by harbour or port authorities used to monitor ships, similar to air traffic control used to monitor aircraft.

War Risk

Insurance coverage for losses resulting from an act of war.

Warehouse

A place for the storage, consolidation and distribution of cargo. Warehousing is the storage of cargo.

Wharf

A structure built on the shore of a harbour which facilitates the docking of ships.

World Customs Organisation (WCO)

An intergovernmental organisation that plays a role in standardising customs processes across the world.

World Trade Organisation (WTO)

An intergovernmental organisation that regulates and facilitates international trade between countries.