Abaft

A point beyond the mid-point of a ship’s length, toward the stern relative to an object or point of reference (‘abaft the fore hatch’).

Abaft the beam

Further aft than the beam: a relative bearing of greater than 90 degrees from the bow: ‘two points abaft the port beam’.

Abandon

An action 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.

Abeam

On the beam, a relative bearing at right angles to the centerline of the ship’s keel.

Able Bodied Seamen (A.B.)

Some modern references claim that AB stands for able-bodied seaman as well as, or instead of, able seaman. Able seaman was originally entered using the abbreviation AB instead of the more obvious AS in ships’ muster books or articles. Such an entry was likely to avoid confusion with ordinary seaman (OS). Later the abbreviation began to be written as A.B., leading to the folk-etymological able-bodied seaman. The correct term, able seaman, remains in use in legal documents, in seaman’s papers, and aboard ship.

Able Seaman (A.B.)

An Able Seaman (also AB) is an unlicensed member of the deck department of a merchant ship. An AB may work as a watch-stander, a day worker, or a combination of these roles.

Aboard

On or in a vessel (see also ‘close aboard’). Referring to cargo being put, or laden, onto a means of transport.

Above board

On or above the deck, in plain view, not hiding anything.

Above-water hull

The hull section of a vessel above waterline, the visible part of a ship. Also, topsides.

Absentee pennant

This is a special pennant flown to indicate the absence of a commanding officer, admiral, his chief of staff, or officer whose flag is flying (division, squadron, or flotilla commander).

Absolute bearing

The bearing of an object in relation to North. This can be either a true bearing, using the geographical or true North, or magnetic bearing, using magnetic North. For more information see ‘bearing’ and ‘relative bearing’.

Absorption

The assumption that the carrier will cover extraordinary or other special charges without increasing the price to the shipper.

Acceptance

1. A time draft (or bill of exchange) which the drawee (the person or organization, typically a bank, who must pay a draft or bill) has accepted and is unconditionally obligated to pay at maturity. Drawee’s act in receiving a draft and thus entering into the obligation to pay its value at maturity.
2. An agreement to purchase goods under specified terms.

Acceptance of Goods

The process of receiving a consignment from a consignor, usually against the issue of a receipt. As from this moment the carrier bears responsibility for the consignment.

Accessorial (AC)

1. Accessorial Charges – Charges made for additional, special or supplemental services, normally over and above the line haul services.
2. Accessorial Service – Service rendered by a carrier in addition to transportation services. (e.g. sorting, packing, precooling, heating and storage).

Accessorial Charges

Charges that are applied to the base tariff rate or base contract rate, e.g., bunkers, container, currency or destination/delivery.

Accommodation ladder

A portable flight of steps down a ship’s side.

Account Party/Accountee

The purchasing party, the importer, the buyer involved in any transaction.

Acknowledgement of Receipt

A notification relating to the receipt of e.g. goods, messages and documents.

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.

Act of God

Accidents of a nature beyond human control such as flood, lightning or hurricane, which are usually quoted as ‘force majeure’.

Act of Man

In water transportation, the deliberate sacrifice of cargo to make the vessel safe for the remaining cargo. Those sharing in the spared cargo proportionately cover the loss.

Act of Pardon/Act of Grace

A letter from a state or power authorising action by a privateer. For more information see ‘Letter of marque.’

Activity Based Costing (ABC)

An accounting system that measures the cost and performance of specific activities performed within an organisation. For example, an ABC approach might measure the cost incurred by the accounts receivable department in handling calls for billing errors, whereas the traditional accounting approach ignores the activity and measures the cost of the accounts receivable department as a percentage of revenue.

Activity Based Costing (ABS)

An accounting system that measures the cost and performance of specific activities performed within an organisation. For example, an ABC approach might measure the cost incurred by the accounts receivable department in handling calls for billing errors, whereas the traditional accounting approach ignores the activity and measures the cost of the accounts receivable department as a percentage of revenue.

Ad Hoc Charter

A one-off charter operated at the necessity of an airline or charterer.

Ad Valorem

This is a Latin term meaning ‘according to value.’ Import duty applied as a percentage of the cargo’s dutiable value. Ocean Freight can be assessed based on the value of the merchandise as well.

Add-Ons

Additional charges above ocean freight.

Admiral

This is a senior naval officer of Flag rank. In ascending order of seniority: Rear Admiral, Vice Admiral, Admiral and Admiral of the Fleet (Royal Navy). The term derives from the Arabic, Amir al-Bahr (ruler of the sea).

Admiralty

A high naval authority in charge of a state’s Navy or a major territorial component. In the Royal Navy (UK) the Board of Admiralty, executing the office of the Lord High Admiral, promulgates Naval law in the form of Queen’s (or King’s) Regulations and Admiralty Instructions.

Admiralty Court

A court which has jurisdiction over maritime questions pertaining to ocean transport, including contracts, charters, collisions, and cargo damages.

Admiralty Law

Admiralty law (also referred to as maritime law) is a distinct body of law which governs maritime questions and offences. It is a body of both domestic law governing maritime activities, and private international law governing the relationships between private entities which operate vessels on the oceans. It deals with matters including marine commerce, marine navigation, shipping, sailors, and the transportation of passengers and goods by sea. Admiralty law also covers many commercial activities, although land-based or occurring wholly on land, that are maritime in character.

Adrift

Afloat and unattached in any way to the shore or seabed, but not under way/power. It implies that a vessel is not under control and therefore goes where the wind and current take her (loose from moorings, or out of place). Also refers to any gear not fastened down or put away properly. It can also be used to mean ‘absent without leave’.

Advance

To move cargo up-line to a vessel leaving sooner than the one initially booked.

Advance Against Documents

Load made on the security of the documents covering the shipment.

Advance Note

A note for one month’s wages issued to sailors on their signing a ship’s articles.

Advance Shipment Notification (ASN)

A document transmitted (email/ EDI) to a consignee in advance of delivery, detailing the contents of a shipment and key information about shipping mode and dates. Within the ANSI X-12 message standards this is known as an 856 message.

Advanced Charge

A charge paid by a carrier to an agent or to another carrier, which the delivering carrier then collects from the consignee. Such charges are usually for agents’ forwarding fees and incidental expenses paid out of pocket for account of the shipment by an agent or other carrier.

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 the owner’s risk.

Advice

This document is sent by one party to another to whom a shipment has been sent, on consignment or otherwise. It involves a description of the goods sent, the carrier or other type of transportation being used, the date of departure, and any additional pertinent data. Note: (Bankers use the term letter of advice when notifying interested parties of such actions as the opening of credits, the drawing of drafts and the payment or non-payment of drafts.)

Advice of Shipment

A notice sent to a local or foreign buyer advising that shipment has gone forward and contains details of packing, routing, etc. A copy of the invoice is usually enclosed and sometimes, if desired, a copy of the bill of lading.

Advising Bank

A bank operating in the country of the seller which handles Letters of Credit on behalf of a Foreign Bank.

Advisory Capacity

A term indicating that a shipper’s agent or representative is not empowered to make definite decisions or adjustment without the approval of the group or individual represented.

Affiliate

A company that controls, or is controlled by another company, or is one of two or more commonly controlled companies.

Affreightment, Contract of

An agreement made 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.

Afloat

The condition of a vessel which is floating freely (not aground or sunk). This is a term more generally used to describe vessels in service e.g. ‘the company has 10 ships afloat’.

Aft

Towards the stern (of the vessel).

Afternoon watch

The period of duty/working hours (or ‘watch’) on board a vessel between 12:00hrs to 16:00hrs.

Against All Risks (AAR)

An insurance policy which provides coverage against all types of loss or damage as opposed to specific ones.

Agency Agreement

The carrier line appoints the port agent and defines the specific duties and areas of responsibility of that agent.

Agency Fee

This is the fee payable by a ship-owner or ship operator to a port agent.

Agency for International Development (AID)

This is also known as USAID, an American Federal Agency primarily responsible for administering civilian foreign aid.

Agency tariff

A tariff published by an agent on behalf of several carriers.

Agent

A person authorised to transact business for and in the name of another person or company. Types of agents are: brokers, commission merchants, resident buyers, sales agents or manufacturer’s representatives.

Aggregate Shipment

Numerous shipments from different shippers to one consignee that are consolidated and treated as a single consignment.

Aggregated Shipments

Numerous shipments from different shippers delivered 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 shipment.

Agreed Weight

The weight prescribed by agreement between carrier and shipper for goods shipped in certain packages or a certain number.

Agriculture Quarantine Inspection (AQI)

The term applies to the area of agriculture can be defined as ‘ A program, administered by USDA’s Animal and Plant Health Inspection Service, that inspects incoming passengers, luggage, and cargo at U.S. ports of entry in order to protect U.S. agriculture from foreign animal and plant pests and diseases’.

Aground

Said of a vessel resting on or touching the ground or bottom of a waterway.

Ahead

Forward of the bow.

Ahoy

A cry to draw attention on board. This is usually a term used to hail a boat or a ship, as ‘Boat ahoy!’

Ahull

When the boat is lying broadside to the sea. Also to ride out a storm with no sails and helm held to leeward. Also to ride out a storm with no sails and helm held to leeward.

Aid to Navigation (ATON)

Any device external to a vessel or aircraft specifically intended to assist navigators in determining their position or safe course, or to warn them of dangers or obstructions to navigation.

Air Freight Forwarder

A non-asset based firm that negotiates low shipping rates with airlines, then takes orders at a higher rate in order to make a profit using the airline’s assets to move the product.

Air Waybill (AWB)

Is a non-negotiable document covering transport of cargo from airport to airport. Note the difference between a Master Air Waybill – A shippers contract of carriage with an airline and a House Air Waybill – issued by a freight forwarder such as Damco.

All Hands

The entire ship’s company, including officers and enlisted personnel.

All In

The total price to move cargo from its origin to its destination; inclusive of all charges, as opposed to detailed charges of Seafreight + + +.

All Inclusive (AI)

Freight rate includes all costs associated with a particular shipment, no surcharges apply.

All Inclusive (AI)

All Inclusive

All night in

Having no night watches.

All Risk

Extensive insurance coverage of cargo including coverage due to external circumstances, such as fire, collision, pilferage, etc.

All Water

Transport exclusively by water.

Allision

A collision between a moving vessel and a stationary object.

Allotment

A share of the capacity of a means of transport assigned to a certain party, e.g. a carrier or an agent, for the purpose of the booking of cargo for a specific voyage.

All-Risk Clause

An insurance provision that all loss or damage to goods is insured except any that is self-caused. For more information see All-Risk Insurance.

All-Risk Insurance

A clause included in marine insurance policies to cover loss and damage from external causes, such as fire, collision, pilferage, etc. but not against innate flaws in the goods, such as decay, germination, nor against faulty packaging, improper packing/ loading or loss of market, nor against war, strikes, riots and civil commotions. For more information see Marine Cargo Insurance.

Aloft

The point above the ship’s uppermost solid structure; overhead or high above.

Alongside

Refers to the side of a ship, used to describe goods delivered to port of embarkation without loading fees (see Incoterms).

Alternative Rates

The privilege to use the rate producing the lowest charge.

Always Afloat (AA)

This is a widely used contract term requiring that a vessel should not rest on the ground. In some ports the ship is aground when approaching or at berth.

Ambient Temperature

The temperature of a surrounding body. The ambient temperature of a container is the atmospheric temperature to which it is exposed.

Amendment

A written notice of a change in the terms of a letter of credit. The amendment becomes an integral part of the original letter of credit.

American Bureau of Shipping (ABS)

This is one of several classification societies; with a mission to promote the security of life, property and the natural environment, primarily through the development and verification of standards for the design, construction and operational maintenance of marine-related facilities (i.e. vessels). The American Bureau of Shipping (ABS), first chartered in the State of New York in 1862 to certify ship captains. It is a classification society, with a mission to promote the security of life, property and the natural environment, primarily through the development and verification of standards for the design, construction and operational maintenance of marine-related facilities. At the end of 2006, ABS was the third largest class society with a classed fleet of over 10,000 commercial vessels and offshore facilities. ABS’ core service is the provision of classification services through the development of standards called ABS Rules. These rules form the basis for assessing the design and construction of new vessels and the integrity of existing vessels and marine structures.

American National Standards Institute (ANSI)

An organization that develops and publishes a set of voluntary product standards, most commonly in relation to electronic communication, unit load and transportation package sizes for containers.

American Terms (AT)

A (Marine Insurance) term used to differentiate between the conditions of American Policies from those of other nations, principally England.

Amidships

In the middle portion of a ship, along the line of the keel.

Anchor

An object designed to prevent or slow the drift of a ship, attached to the ship by a line or chain; typically a metal, hook-like or plough-like object designed to grip the bottom under the body of water. For more information see ‘sea anchor’.

Anchor ball

A round black shape hoisted in the forepart of a vessel to show that it is anchored.

Anchor buoy

A small buoy secured by a light line to the anchor, designed to indicate the position of the anchor on the sea bed.

Anchor Chain or Anchor Cable

The chain connecting the ship to the anchor.

Anchor Detail

A team of men who handle ground tackle when the ship is anchoring or getting underway.

Anchor Light

White light displayed by a ship at anchor. Two such lights are displayed by a ship over 150 feet (46 m) in length.

Anchor Rode

The anchor line, rope or cable connecting the anchor chain to the vessel. For more information see ‘Rode’.

Anchor Watch

A consignment of crew tasked with ensuring that the anchor is holding and the vessel is not drifting. It is very important during rough weather and at night. Most marine GPS units boast Anchor Watch alarm capabilities.

Anchorage

A suitable place for a ship to anchor; usually an area of a port or harbour.

Anchor’s Aweigh

The term used when an anchor is just clear of the sea bed.

Andrew

Traditional lower-deck slang term for the Royal Navy.

Anglian Container Services (ACS)

This is the container services business operated by MSC (UK) Ltd, with primary business activities including container storage, cleaning, repairs, conversions, customisations and reefer pre-tripping.

ANSI X-12

the most widely accepted standards for EDI messaging (US developed).

Anti-Submarine Detection Investigation Committee (ASDIC)

A type of sonar used by the Allies for detecting submarines during the Second World War.

Anti-submarine warfare (ASW)

Anti-submarine warfare

Any Quantity (AQ)

A rating that applies to an item regardless of weight.

Any Quantity (AQ)

A rating that applies to an item regardless of weight.

Any Time

A chartering term referring to when a vessel will work.

Any-Quantity (AQ)

Usually refers to a rating that applies to an article regardless of weight.

Apparent Good Order

When freight appears to be free of damage; so far as a general survey can determine.

Apparent Wind

The combination of the true wind and the headwind caused by the boat’s forward motion. For example, it causes a light side wind to appear to come from well ahead of the beam.

Application Programming Interface (API)

Application Programming Interface. It is an interface that defines interactions between multiple software applications or mixed hardware-software intermediaries

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.

Arbitrary

1. A fixed amount which a transportation line agrees to accept in a dividing joint rate.
2. A fixed amount added to or deducted from one station to make a rate from another station.
3. A fixed amount added to or deducted from a rate to one station to make a rate to another station.
4. An allowance added to an employee’s rate of pay in addition to regular wages, based on provisions included in the union contract.

Arbitration

The process of referring to an agreed person for judgment on issues of a dispute; without requiring the use of courts.

Arbitration Clause

A standard clause to be included in the contracts of exporters and importers, as suggested by the American Arbitration Association. It states that any controversy or claim will be settled by arbitration in accordance with the rules of the American Arbitration Association.

Arc of Visibility

The portion of the horizon over which a lighted aid to navigation is visible from seaward.

Armament

A ship’s weapons.

Arrest

The procedure whereby, in common law jurisdictions, a ship (and sometimes cargo and/or freight) may be seized by an admiralty court at the institution of or during an action ‘in rem’ – against a thing rather than a person – (infra) to provide pre-judgment security for the plaintiff’s maritime claim.

Arrival Date

The date on which goods or a means of transport is due to arrive at the delivery site of the transport.

Arrival Notice

Articles of War

Regulations governing the military and naval forces of UK and USA; read to every ship’s company on commissioning and at specified intervals during the commission.

Artificial Tween Decks (ATD)

Artificial Tween Decks Forty feet long, eight feet wide, one foot thick steel platform with hardwood flooring. Equipped with ten bullrings for securing oversized, heavy lift or wheeled cargo.

Artificial Tween Decks (ATD)

Forty feet long, eight feet wide, one foot thick steel platform with hardwood flooring. Equipped with ten bullrings for securing oversized, heavy lift or wheeled cargo.

Ashore

A vessel that is on the beach, shore or land.

Asset-Based, Third Party Provider

A third party provider that owns transportation and/or warehouse assets.

Assignment (AS)

1. The transfer to another of one’s own legal interests or rights.
2. Especially the transfer of property to be held in trust or to be used for the benefit of creditors.
3. The document by which such an interest or right is transferred.

Assignment of Proceeds

A stipulation within a letter of credit in which some or all of the proceeds are assigned from the original beneficiary to one or more additional beneficiaries.

Astern

Toward the stern; an object or vessel that is abaft another vessel or object. For more information see Port Side for diagram of all the ship’s directions.

Asylum Harbour

A harbour used to provide shelter from a storm.

ATA Carnet

(Customs) ATA is the acronym for the combined French and English words “Admission Temporaire/Temporary Admission.” An ATA Carnet is an international Customs document which may be used for the temporary admission of certain goods into 92 participating countries and territories worldwide in lieu of the usual customs documents and without having to pay duties or value-added taxes. The carnet serves as a guarantee against the payment of customs duties and taxes (including VAT), which may become due on goods temporarily imported and not re-exported. Carnets also simplify customs clearance and ensure re-entry into the originating country by acting as a “Certificate of Registration”.

Athwart, athwartships

At right angles to the fore and aft or centerline of a ship; A direction across the width of a vessel.

Atlantic Container Line (ACL)

A container carrier operating large RORO (Roll-On Roll-off) ships between Europe and North America.

Authorized Economic Operator (AEO)

A party involved in ther international movement of goods in whatever function that has been approved by or on behlaf of a national Customs administrationas complying with WCO or equipment supply chain security standards (종합인증우수업체)

Automated Broker Interface (ABI)

This is the U.S. Customs’ computer system which brokers use to file importers’ entries electronically. An electronic system allowing customhouse brokers and importers to interface via computer with the US Customs Service for transmitting entry and entry summary data on imported merchandise.

Automated Commercial Environment system (ACE)

The U.S. Customs’ master computer system to replace the Automated Commercial System.

Automated Commercial System (ACS)

This is the U.S. Customs’ master computer system, which is being replaced by the Automated Commercial Environment system (ACE).

Automated Manifest System (AMS)

This is the U.S. Customs’ computerized system used to automate the flow of customs-related information among customs brokers, importers, and carriers. A part of Custom’s Automated Commercial System (ACS), controls imported merchandise from the time a carrier’s cargo manifest is electronically transmitted to Customs until control is relinquished to another segment of the ACS.

Automated System for Customs Data (ASYCUDA)

The Automated System for Customs Data is a computerised system designed by the UNCTAD (United Nations Conference on Trade and Development) to administer a country’s Customs. Currently there are three different generations of ASYCUDA in use: ASYCUDA 2.7, ASYCUDA++ and ASYCUDA World. All of them were built using different paradigms and solutions available at the time of conception, being ASYCUDA World the most recent one and less used so far (early 2009). UNCTAD’s premise was to build a computer system to assist customs authorities (or their local equivalent) all over the world to automate and control their core processes and obtain timely, accurate and valuable information to support government projections and planning.

Automatic Identification System (AIS)

A short range coastal tracking system used on ships and by Vessel Traffic Services (VTS) for identifying and locating vessels by electronically exchanging data with other nearby ships and VTS stations. Information such as unique identification, position, course, and speed can be displayed on a screen or an ECDIS. AIS is intended to assist the vessel’s watch standing officers and allow maritime authorities to track and monitor vessel movements, and integrates a standardized VHF transceiver system such as a LORAN-C or Global Positioning System receiver, with other electronic navigation sensors, such as a gyrocompass or rate of turn indicator. The International Maritime Organization’s (IMO) International Convention for the Safety of Life at Sea (SOLAS) requires AIS to be fitted aboard international voyaging ships with gross tonnage (GT) of 300 or more tons, and all passenger ships regardless of size. It is estimated that more than 40,000 ships currently carry AIS class A equipment.

Autoridad del Canal de Panama (ACP)

The Panama Canal Authority.

Avast – Stop!

A command to cease or desist from whatever is being done.

Average

A common marine insurance term. An early meaning (c.1500) of the word average is ‘damage sustained at sea’. The root is found in Arabic as awar, in Italian as avaria and in French as avarie. Hence an average adjuster is a person who assesses an insurable loss. Marine damage is either particular average, which is borne only by the owner of the damaged property, or general average, where the owner can claim a proportional contribution from all the parties to the marine venture. The type of calculations used in adjusting general average gave rise to the use of ‘average’ to mean ‘arithmetic mean’.

Average Adjusters

In general average affairs average adjusters are entrusted with the task of apportioning the loss and expenditure over the parties interested in the maritime venture and to determine which expenses are to be regarded as average or general average.

Average Inventory

The average inventory level over a period of time.

Average Order Value (AOV)

Average Order Value measures the average total of every order placed over a defined period of time. AOV is one of the most important metrics for online stores to be aware of, driving key business decisions.

Average Selling Price (ASP)

The average selling price (ASP) of goods or commodities is the average price at which a particular product or commodity is sold across channels or markets. To calculate the average selling price, all you have to do is divide net sales with the number of products sold.

Avoirdupois Pound

A measure of weight or mass equal to 0.4535924277 kilograms.

Awash

A vessel that is so low in the water that the water is constantly washing across the surface.

Aweigh

The position of an anchor just clear of the bottom.

Aye, aye

The reply to an order or command to indicate that it, firstly, is heard; and, secondly, is understood and will be carried out. (‘Aye, aye, sir’ to officers). Also ‘yarr’.

Azimuth Circle

An instrument used to take bearings of celestial objects.

Azimuth Compass

An instrument employed for ascertaining the position of the sun with respect to magnetic north. The azimuth of an object is its bearing from the observer measured as an angle clockwise from true north.

Backhaul

To haul a shipment back over part of a route that it has already traveled; return movement of cargo, usually opposite from the direction of its primary cargo destination.

Ballast keel

A heavy keel fitted to vessels to lower the center of gravity and improve stability.

Ballast tanks

Compartments at the bottom of a ship that are filled with liquids for stability and to make the ship seaworthy.

Beam

The width of a ship.

Berth

A place in which a vessel is moored or secured; place alongside a quay where a ship loads or discharges cargo.

Berth term

Shipped under a rate that does not include the cost of loading or unloading.

Berth dues (or quay dues or dockage)

Charges for the use of a berth. Typically assessed based on the duration of a vessel’s stay and length overall (LOA).

Bill of lading

A document that establishes the terms of contract between a shipper and a transportation company. It serves as a document of title, a contract of carriage, and a receipt for goods.

Bond port

Port of a vessel’s initial customs entry to any country; also known as first port of call.

Bonded warehouse

A warehouse authorized by customs authorities for storage of goods on which payment of duties is deferred until the goods are removed.

Breakbulk

Loose, noncontainerized cargo stowed directly into a ship’s hold.

Broker

A person who arranges for transportation of loads for a percentage of the revenue from the load.

Build-operate-transfer (BOT)

A form of concession where a private party or consortium agrees to finance, construct, operate and maintain a facility for a specific period and transfer the facility to the concerned government or port authority after the term of the concession. The ownership of the concession area (port land) remains with the government or port authority during the entire concession period. The concessionaire bears the commercial risk of operating the facility.

Build-own-operate-transfer (BOOT)

A form of concession where a private party orconsortium a grees to finance, construct, own, operate and maintain a facility for a specific
period and transfer the facility to the concerned government or port authority after the term of the concession. The ownership of the concession area (port land) vests in the private partyor consortium during the entire concession period and is transferred to the government or port authority at the end of the concession period. As with the BOT, the concessionaire bears the commercial risk of operating the facility.

Bulkhead

A structure to resist water; a partition separating one part of a ship from another part.

Bulk vessel

All vessels designed to carry bulk cargo such as grain, fertilizers, ore, and oil.

Bunkers

Fuel used aboard ships.

Cabotage

Shipments between ports of a single nation, frequently reserved to national flag vessels of that nation.

Cargo tonnage

Ocean freight is frequently billed on the basis of weight or measurement tons. Weight tons can be expressed in terms of short tons of 2,000 pounds, long tons of 2,240 pounds, or metric tons of 1,000 kilograms (2,204.62 pounds). Measurement tons are usually expressed as cargo measurements of 40 cubic feet (1.12 cubic meters) or cubic meters (35.3 cubic feet).

Carrier

Any person or entity who, in a contract of carriage, undertakes to perform or to procure the performance of carriage by sea, inland waterway, rail, road, air, or by a combination of such modes.

Cartage

Intraport or local hauling of cargo by drays or trucks (also referred to as drayage).

Chassis

A frame with wheels and container locking devices to secure the container for movement.

Classification yard (also commonly
known as a shunting yard)

A railroad yard with many tracks used for assembling freight trains.

Cleaning in transit

The stopping of articles (such as farm products) for cleaning at a point between the point of origin and destination.

Clearance

The size beyond which vessels, cars, or loads cannot pass through, under, or over bridges, tunnels, highways, and so forth.

Cleat

A device secured on the floor of a container to provide additional support or strength to a cargo-restraining device, or a device attached to a wharf to secure mooring lines.

Common carrier

A transportation company that provides service to the general public at published rates.

Concession

An arrangement whereby a private party (concessionaire) leases assets from a authorized public entity for an extended period and has responsibility for financing specified new fixed investments during the period and for providing specified services associated with the assets; in return, the concessionaire receives specified revenues from the operation of the assets; the assets revert to the public sector at expiration of the contract

Conservancy

In some countries, this fee is levied to retain upkeep of the approaches to waterways and canals.

Consolidation

Cargo consisting of shipments of two or more shippers or suppliers. Container load shipments may be consolidated for one or more consignees.

Container

Steel or aluminum frame forming a box in which cargo can be stowed meeting International Standard Organization (ISO)-specified measurements, fitted with special castings on the corners for securing to lifting equipment, vessels, chassis, rail cars, or stacking on other containers. Containers come in many forms and types, including: ventilated, insulated, refrigerated, flat rack, vehicle rack, open top, bulk liquid, dry bulk, or other special configurations. Typical containers may be 10 feet, 20 feet, 30 feet, 40 feet, 45 feet, 48 feet, or 53 feet in length, 8 feet or 8.5 feet in width, and 8.5 feet or 9.5 feet in height.

Container freight station

A dedicated port or container terminal area, usually consisting of one or more sheds or warehouses and uncovered storage areas where cargo is loaded (“stuffed”) into or unloaded (“stripped”) from containers and may be temporarily stored in the sheds or warehouses.

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 vessel

Ship equipped with cells into which containers can be stacked; containerships may be full or partial, depending on whether all or only some of its holds are fitted with container cells.

Daily running cost

Cost per day of operating a ship.

Deconsolidation point

Place where cargo is ungrouped for delivery

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.

Dock or quay

A structure attached to land to which a vessel is moored.

Draft (or draught)

The depth of a ship while in the water. Measured as the vertical distance between the waterline and the lowest edge of the keel.

Dredging

Removal of sediment to deepen access channels, provide turning basins for ships, and maintain adequate water depth along waterside facilities.

Dry bulk

Loose, mostly uniform cargo, such as agribulk products, coal, fertilizer, and ores, that are transported in bulk carriers.

Dunnage

Material used in stowing cargo either for separation or the prevention of damage.

Electronic data interchange (EDI)

Transmission of transactional data between computer systems.

EDIFACT

Electronic Data Interchange for Administration, Commerce, and Trade. International data interchange standards sponsored by the United Nations.

Eminent domain

The sovereign power to take property for a necessary public use, with reasonable compensation.

Feeder service

Transport service whereby loaded or empty containers in a regional area are transferred to a “mother ship” for a long-haul ocean voyage.

Fixed costs

Costs that do not vary with the level of activity. Some fixed costs continue even if no cargo is carried; for example, terminal leases, rent, and property taxes.

Gantry crane

A crane fixed on a frame or structure spanning an intervening space typically designed to traverse fixed structures such as cargo (container) storage areas or quays and which is used to hoist containers or other cargo in and out of vessels and place or lift from a vessel, barge, trucks, chassis, or train.

Gateway

A point at which freight moving from one territory to another is interchanged between transportation lines.

Harbor dues (or port dues)

Charges by a port authority to a vessel for each harbor entry, usually on a per gross tonnage basis, to cover the costs of basic port infrastructure and marine facilities such as buoys, beacons, and vessel traffic management system.

Hand-over

Term used in contracts, meaning the process of providing exclusive, unencumbered, peaceful, and vacant possession of and access to a concession area and the existing operational port infrastructure and also all rights, title (free of all encumbrances and security), and interest in all the movable assets and all the facilities by the government or the port authority on the hand-over date for the conduct of terminal operations.

In bond

Cargo moving under customs control where duty has not yet been paid.

Inducement

Placing a port on a vessel’s itinerary because the volume of cargo offered by that port justifies the cost of routing the vessel.

Jetty (or pier)

A structure that is perpendicular or at an angle to the shoreline to which a vessel is secured for the purpose of loading and unloading cargo.

Jumboising

Conversion of a ship to increase cargo-carrying capacity by dividing and adding a new section.

Keel

A flat steel plate running along the center line of a vessel.

Knot

Measure of ship speed, equal to one nautical mile (1,852 meters) per hour.

LASH

Abbreviation for “lighter aboard ship.” A specially constructed vessel equipped with an overhead traveling gantry crane for lifting specially designed barges out of the water and stowing them into the cellular holds of the vessel (loading) and unstowing (unloading) as well.

Loaded draught (or draft)

Depth of water to which a ship is immersed when fully loaded.

Malacca-max

Maximum size of container and bulk vessels (in terms of draught) that can cross the Malacca Straits. The Malacca-max reference is believed to be today the absolute maximum possible size for future container vessels (approximately 18,000 TEU).

Main port

A large multipurpose port serving a number of countries and regions.

Neobulk cargo

Non-, or economically not feasible, containerizable cargo such as timber, steel, and vehicles.

Nonrecourse financing

Project financing for which no loan guarantees or financial support is provided by the sponsors or governments to lenders for the project

On-carrier

Person or company who contracts to transport cargo from the port or place of discharge of a sea-going or ocean-going ship to another destination by a different means of transport, such as a feeder vessel, truck, train, or barge.

Optional cargo

Cargo that is destined for one of the ship’s discharge ports, the exact one not being known when the goods are loaded.

Pallet

A flat tray, generally made of wood, but occasionally steel or other materials, on which goods can be stacked. There are two principal sizes: the ISO pallet, which measures 1 x 1.2 meters, and the europallet at 0.8 x 1.2 meters.

Panamax

Maximum beam that allows vessels to pass through the locks of the Panama Canal (specifically used for dry bulk and container vessels).

Rail-mounted gantry (RMG) or railmounted container gantry crane

Rail-mounted gantry crane used for container acceptance, delivery, and stacking operations in a container yard.

Reefer

Refrigerated container or vessel designed to transport refrigerated or frozen cargo.

Shed (also see warehouse)

Covered area for the reception, delivery, consolidation, distribution, and storage of cargo. Note: A warehouse usually points at longer term storage, whereas a shed usually is used for shorter term storage.

Ship chandler

An individual or company selling equipment and supplies for ships.

Tare weight

The weight of wrapping or packing; added to the
net weight of cargo to determine its gross weight.

Terminal charge

A charge made for a service performed in a terminal area typically referring to handling associated with receipt, delivery, or inspection of
cargo via land-based operations.

Unitization

The consolidation of a quantity of individual items into one large shipping unit for easier and faster handling through methods such as palletizing, stripping, slinging and containerization.

Unloader

Port equipment employed to unload ships carrying dry bulk cargo. (Note: Small movable and hoistable unloaders are sometimes referred to as “vacuvators.”)

Variable cost

Costs that vary directly with the level of activity within a short time. Examples include costs of moving cargo inland on trains or trucks, stevedoring in some ports, and short-term equipment leases.

Vessel manifest

Declarations made by international ocean carriers relating to the ship’s crew and contents at both the port of departure and arrival. All bills
of lading are registered on the manifest.

Warehouse (see also shed)

Covered area for the reception, delivery, consolidation, distribution, and storage of cargo.

Note: A warehouse usually points at longer
term storage, whereas a shed usually is used for
shorter term storage.

Waybill

Document, issued by a shipping line to a shipper, which serves as a receipt for the goods and evidence of the contract of carriage.

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