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Ocean Bill of Lading

A receipt for cargo in transit, and a contract between the exporter and an ocean carrier for transportation and delivery of goods to a specified party at a specified foreign destination. Issued after the vessel has sailed and the cargo has been entered in the ship's manifest.

O.D.

Outside diameter

ODS

An acronym commonly used for the term "operating differential subsidy," which is a payment to an American-flag carrier by the federal government to offset the difference in operating costs between US and foreign vessels.

Off-Line

Describes an airline that sells in a market to which it does not operate. An Off-Line carrier will use another operator to link with its network.

O/N

Order notify; own name

O/o

Order of

Open Account

A high-risk trade arrangement in which goods are shipped to a foreign buyer without guarantee of payment.

Open Policy

A cargo insurance policy that is an open contract; i.e., it provides protection for all an exporter's shipments afloat or in transit within a specified geographical trade area for an unlimited period of time, until the policy is cancelled by the insured or by the insurance company. It is "open" because the goods that are shipped are also detailed at that time. This usually is shown in a document called a marine insurance certificate.

Original   Equipment Manufacturers (OEM accounts)

Customers who incorporate the exporter's product into their own merchandise for resale under their own brand names.

O/R

Owner's risk

O. & R.

Ocean and Rail

O.r.b

Owner's risk or breakage

O.R. Det.

Owner's risk of deterioration

O.R.F.

Owner's risk of fire or freezing

O.R.L.

Owner's risk of leakage

O.R.W.

Owner's risk of becoming wet

O.S. & D.

Over, short and damage

Ocean Bill of Lading

A receipt for cargo in transit, and a contract between the exporter and an ocean carrier for transportation and delivery of goods to a specified party at a specified foreign destination. Issued after the vessel has sailed and the cargo has been entered in the ship's manifest.

O.D.

Outside diameter

ODS

An acronym commonly used for the term "operating differential subsidy," which is a payment to an American-flag carrier by the federal government to offset the difference in operating costs between US and foreign vessels.

Off-Line

Describes an airline that sells in a market to which it does not operate. An Off-Line carrier will use another operator to link with its network.

O/N

Order notify; own name

O/o

Order of

Open Account

A high-risk trade arrangement in which goods are shipped to a foreign buyer without guarantee of payment.

Open Policy

A cargo insurance policy that is an open contract; i.e., it provides protection for all an exporter's shipments afloat or in transit within a specified geographical trade area for an unlimited period of time, until the policy is cancelled by the insured or by the insurance company. It is "open" because the goods that are shipped are also detailed at that time. This usually is shown in a document called a marine insurance certificate.

Original   Equipment Manufacturers (OEM accounts)

Customers who incorporate the exporter's product into their own merchandise for resale under their own brand names.

O/R

Owner's risk

O. & R.

Ocean and Rail

O.r.b.

Owner's risk or breakage

O.R. Det.

Owner's risk of deterioration

O.R.F.

Owner's risk of fire or freezing

O.R.L.

Owner's risk of leakage

O.R.W.

Owner's risk of becoming wet

O.S. & D.

Over, short and damage

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P.A.

Particular average

Paired

Port of Arrival Immediate Release and Enforcement Determination. A U.S. Customs program that allows entry documentation for an import shipment to be filed at one location, usually an inland city, while the merchandise is cleared by Customs at the port of entry, normally a seaport. May be ineffective with certain types of high-risk cargoes, such as quota-regulated textiles or shipments from drug-production regions. Cities where there is a natural flow of cargo are actually "paired" in the program; e.g., Atlanta, an inland city, is linked with Savannah, a seaport. Tested in '87-'88, it became generally available in mid- '88.

Pallet

Load carrying platform to which loose cargo is secured before placing aboard the aircraft.

Pallet Extender

Fashionable metal or cardboard device to increase pallet capacity.

Paperless Release

Under ABI, certain commodities from low-risk countries not designated for examination may be released through an ABI-certified broker without the actual submission of documentation.

Part Charter

Where part of an airline's scheduled flight is sold as if it were a charter in its own right (Often wrongly used as a synonym for split charter).

Part Load Charter

Where a part of an aircraft's load is discharged at one destination and a part of it at another. This is distinct from a split charter where a number of consignments are carried to the same destination. Inbound, part loads are treated as single entity charters under the regulations of most countries.

Particular Average

Partial loss or damage to goods.

Perils of the Sea

Most losses covered by a marine insurance policy come within the comprehensive expression "perils of the sea," which refers to damage caused by heavy weather, strandings, strikings on rocks or on bottom, collision with other vessels, contacts with floating objects, etc.

Perishables

Any cargo that loses considerable value if it is delayed in transportation (Usually refers to fresh fruit and vegetables).

Phytosanitary Inspection Certificate

A certificate issued by the U.S. Department of Agriculture indicating that a shipment has been inspected and is free of harmful pests and plant diseases.

Pilferage

As used in marine insurance policies, the term denotes petty thievery, the taking of small parts of a shipment, as opposed to the theft of a whole shipment or large unit. Many ordinary marine insurance policies do not cover against pilferage, and when this coverage is desired, it must be added to the policy.

Pivot Weight

That weight of a ULD above which a higher tariff applies; in effect, an incentive to maximize cargo density.

Place

A particular street address or other designation of a factory, store, warehouse, place of business, private residence, construction camp or the like, at a point.

Place of Rest

The term "Place of Rest" as used in the Containerized Cargo Rules means that location on the floor, dock, platform or doorway at the CFS to which cargo is first delivered by shipper or agent thereof.

Point

A particular city, town, village or other community or area which is treated as a unit for the application of rates.

Port Authority

A government body (city, county or state) which in international shipping maintains various airports and/or ocean cargo pier facilities, transit sheds, loading equipment warehouses for air cargo, etc. Has the power to levy dockage and wharfage charges, landing fees, etc.

Port Marks

An identifying set of letters numbers and/or geometric symbols followed by the name of the port of destination, which are placed on export shipments. Foreign government requirements may be exceedingly strict in the matter of port marks.

Port of Discharge

Port where vessel is off loaded and cargo discharges.

Port of Entry

A port at which foreign goods are re-admitted into the receiving country.

Port of Loading

Port where cargo is loaded aboard the vessel lashed and stowed.

Power of Attorney

A document that authorizes a customs broker to sign all customs documents on behalf of an importer.

Pre-Advice

Preliminary advice that a letter of credit has been established in the form of a brief authenticated wire message. It is not an operative instrument and is usually followed by the actual letter of credit.

Prepaid Freight

Generally speaking, freight charges both in ocean and air transport may be either prepaid in the currency of the country of export or they may be billed collect for payment by the consignee in his local currency. However, on shipments to some countries freight charges must be prepaid because of foreign exchange regulations of the country of import and/or rules of steamship companies or airlines.

Pre-Slung Cargo

Cargo shipped already in a cargo sling or net. Usually prepared and loaded at pier ready for arrival of vessel and subsequent loading (i.e. coffee in bags, coconut shells, etc).

Price Quotation/Proforma Invoice

An invoice prepared by the seller in advance of shipment that documents the cost of goods sold, freight, insurance, and other related charges. It is often used by the buyer to secure a letter of credit, an import license or a foreign currency allocation.

Prima Facie

Latin, "on first appearance." A term frequently encountered in foreign trade. When a steamship company issues a clean bill of lading, it acknowledges that the goods were received "in apparent good order and condition" and this is said by the courts to constitute prima facie evidence of the conditions of the containers; that is, if nothing to the contrary appears, it must be inferred that the cargo was in good condition when received by the carrier.

Proforma

When used with the title of a document, the term refers to an informal document presented in advance of the arrival, or preparation of the required document, in order to satisfy a customs requirement.

Pro Number

A number assigned by the carrier to a single shipment, used in all cases where the shipment must be referred to. Usually assigned at once.

Proof of Delivery

Add-on service in express market, delivered either by phone or courier. Often offered free.

Protest

Customs form 19 allows for a refund of an overpayment of duty if filed within 90 days of liquidation.

P.W.

Packed weight

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R. & C.

Rail and Canal

R/C

Reconsigned

r. & c.c.

Riots and civil commotions

r.c.c. & s.

Riots, civil commotions and strikes

Rebate

A deduction taken from a set payment or charge. As a rebate is given after payment of the full amount has been made, it differs from a discount which is deducted in advance of the payment. In foreign trade, a full or partial rebate may be given on import duties paid on goods which are later re-exported.

Reciprocity

A practice by which governments extend similar concessions to one another.

Red Clause Letter of Credit

A letter of credit that allows the exporter to receive a percentage of the face value of the letter of credit in advance of shipment. This enables the exporter to purchase inventory and pay other costs associated with producing and preparing the export order.

REFG.

Refrigerating; Refrigeration

Regs.

Registered Tonnage

Retaliation

Action taken by a country to restrain its imports from another country that has increased a tariff or imposed other measures that adversely affects the firsts country's exports.

RORO (ROLL ON-ROLL OFF)

Direct drive on/drive off wheeled vehicles on specially-designed ocean-going vessels.

Route

an established air passage, from point of departure to terminating station.

Royalty

a charge on charter flights levied by some governments before traffic rights are granted. Sometimes called a "no objection fee." Usually a fixed proportion of a total charter value.

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Salvage

Rescue of goods from loss at sea or by fire; also, goods so saved, or payment made or due for their rescue.

Sanitary and Health Certificate

A statement signed by a health organization official certifying the degree of purity, cleanliness, or spoilage of goods, and the health of live animals.

Schedule B

Refers to "Schedule B, Statistical Classification of Domestic and Foreign Commodities Exported from the United States." Being replaced under the Harmonized System.

Scheduled Flight

Any service that operates to a set timetable.

SCR

Specified Commodity Rate. Applied to narrowly specified commodities. Usually granted on relatively large shipments. Theoretically is of limited time duration.

Sector

Distance between two ground points within a route.

Self-Sustaining

Vessel has its own cranes and equipment mounted on board for loading/unloading. Used in ports where shore cranes and equipment are lacking.

Service

The defined, regular pattern of calls made by a carrier in the pick-up and discharge of cargo.

Service Contract

A contract between a shipper and an ocean carrier of conference, in which the shipper makes a commitment to provide a minimum quantity of cargo over a fixed time period.

Set Up

Articles in their assembled condition.

S. & F.A.

Shipping and forwarding agent.

Shipment

Freight tendered to a carrier by one consignor at one piece at one time for delivery to one consignee at one place on one bill of lading.

Shipper

Term used to describe exporter. Mostly manufacturing companies.

Shipper's Export Declaration

A form required by the Treasury Department and completed by a shipper showing the value, weight, consignee, destination, etc., of export shipments as well as Schedule B identification number.

Ship's Manifest

An instrument in writing containing a list of the shipments comprising the cargo of the vessel.

Ship's Tackle

All rigging, etc., utilized on a ship to load or discharge cargo.

Short-Shipped

Cargo manifested but not loaded.

Single Entry Charter

A non-scheduled flight carrying the cargo of one shipper.

Sight Draft

A draft payable upon presentation to the drawee. Compare date draft and time draft.

S.I.T.

Stopped in Transit

Site

A particular platform or location for loading or unloading at a place.

S.L. & C.

Shipper's Load and Count

S.L. & T.

Shipper's Load and Tally

S/N

Shipping Note

S.O.L.

Ship Owner'Liability

Split Charter

Where a number of consignments from different shippers are carried on the same non-scheduled aircraft. Under U.K. regulations a non-scheduled flight chartered by a single forwarder or agent on behalf of a number of shippers is still classified as a split charter. Under U.S. regulations, a forwarder chartered flight is classified as a single entity although it can consolidate.

S.R

Shipping Receipt

S.R. & C.C.

Strikes, riots, and civil commotions.

SS

Steamship; steam powered ship (Steam driven turbines)

Standard International Trade Classification (SITC)

A standard numerical code system developed by the United Nations to classify commodities used in international trade.

S.tn.

Short ton

Steamship Agent

A duly appointed and authorized representative in a specified territory acting in behalf of a steamship line or lines and attending to all matters relating to the vessels owned by his principals.

Steamship Line

Company is usually composed of the following departments; vessel operations, container operations, tariff department, booking, outbound rates, inward rates and sales. the company can maintain its own in country U.S. offices to handle regional sales, operations and/or other matters or appoint steamship agents to represent them doing same. Some lines have liner offices in several regions and have appointed agents in others.

Stowage

The lacing of cargo in a vessel in such a manner as to provide the utmost safety and efficiency for the ship and the goods it carries.

Strikes, Riots, and Civil Commotions

An insurance clause referring to loss or damage directly caused by strikers, locked-out workmen, persons participation in labor disturbances, and riots of various kinds. The ordinary marine insurance policy does not cover this risk; coverage against it can be added only by endorsement.

Subsidy

An economic benefit granted by a government to producers of goods or services, often to strengthen their competitive position.

Sue & Labor Clause

A provision in marine insurance obligating the assured to do things necessary after a loss to prevent further loss and to act in the best interests of the insurer.

Surety Bond

A bond insuring against loss or damage or for the completion of obligations.

Surety Company: An insurance company

S.W.

Shipper's weights

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Tally Sheet

List of cargo, incoming and outgoing, checked by Tally clerk on dock.

Tare Weight

The weight of the container and/or packing materials only - excluding the weight of the goods inside the container.

Tariff

A general term for any listing of rates, charges, etc. the tariffs most frequently encountered in foreign trade are: tariffs of the international transportation companies operating on sea, on land, and in the air; tariffs of the international cable, radio, and telephone companies; and the customs tariffs of the various countries, which list goods that are duty free and those subject to import duty, giving the rate of duty in each case. There are various classes of customs duties.

T.B.L.

Through bill of lading

Temperature Controlled Cargo

Any cargo requiring carriage under controlled temperature.

TEU

Twenty foot equivalent.

Third Freedom Right

Where cargo is carried by an airline, from the country in which it is based, to a foreign country.

T.I.B.

Temporary Import Entry.

Time Draft

A draft that matures in a certain number of days, either from acceptance or date of the draft.

Title, Passing

The passing of title to exported goods is determined in large measure by the selling terms. For example, if an exporter sells goods c.i.f he may be presumed to pass ownership and tender of documents. However, he may ship on a bill of lading drawn to his own order, to prevent the buyer from gaining possession of the goods until the draft is paid or accepted. In this case he retains a security title to the goods; that is, a title for security purposes only, until the financial arrangement is carried out. Caution: depending on the laws of the buyer's country, you may not be able to force passage of title without payment having been received or the buyer having accepted delivery of the goods or a clear understanding by the buyer being understood and accepted.

TL

Truckload

Ton: Freight rates for liner cargo generally are quoted on the basis of a certain rate per ton, depending on the nature of the commodity. This ton, however, may be weight ton or a measurement ton.

Ton-Deadweight

Indicates the carrying capacity of the ship in terms of the weight in tons of the cargo, fuel, provisions and passengers which a vessel can carry.

Ton-Displacement

The weight of the volume of water which the fully loaded ship displaces.

Ton-Kilometer

Measure of airline freight capacity.

Ton-Registered

Indicates the cubical contents or burden of a vessel in tons of 100 cubic feet. The space within a vessel in units of 100 cubic feet.

Tracking

A carrier's system of recording movement intervals of shipments from origin to destination.

Trade

A term used to define a geographic area or specific route served by carriers.

Traffic Conferences

Rate-fixing machinery operated by IATA.

Tramp

A tramp is a vessel that does not operate along a definite route on a fixed schedule, but calls at any port where cargo is available.

Transferable Letter of Credit

A letter of credit that allows all or a portion of the proceeds to be transferred from the original beneficiary to one or more additional beneficiaries.

Transshipment

The transfer of a shipment from one carrier to another in international trade, most frequently from one ship to another. In as much as the unloading and reloading of delicate merchandise is likely to cause damage, transshipments are avoided whenever possible.

Transport Index

The number expressing the maximum radiation level in a package of ULD.

Truckload

Truckload rates apply where the tariff shows a truckload minimum weight. Charges will be at the truckload minimum weight unless weight is higher.

Trust Receipt

Release of merchandise by a bank to a buyer for manufacturing or sales purposes in which the bank retains title to the merchandise.

Turnkey Project

Capital construction projects in which the supplier (contractor) designs and builds the physical plant, trains the local personnel on how to manage and operate the facility and presents the buyer with a self-sustaining project (all the buyer has to do is "turn the Key").

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UKACC

United Kingdom Air Cargo Club.

ULD

Unit Load Device. Pallet or Container for freight.

Unclean Bill of Lading

A bill containing reservations as to the good order and condition of the goods, or the packaging, or both. Examples: "bags torn;" "drums leaking;" "one case damaged;" "rolls chafed."

Unitisation

The packing of single or multiple consignments into ULDs or pallets.

Universal Postal Union

Organization which negotiates international mail charges.

VAT (Value-Added Tax)

A sales or consumption tax which the end user pays. Typically, this is a "hidden" tax, added to the list price of the goods in question.

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Valuation Charges

Transportation charges assessed shippers who declare a value of goods higher than value of carrier's' limits of liability.

Ves.

Vessel

Visa

An invoice properly validated by the Minister of Trade in regard to quota entries.

Volume Weight

Used when calculating air freight when the size of the carton is greater than the average weight, calculated by multiplying the length times the width times the height and dividing by 166.

W.A.

With Average

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Warehouse Receipt

A receipt of commodities deposited in a warehouse, identifying the commodities deposited. It is non-negotiable if permitting delivery only to a specified person or firm, but it is negotiable if made out to the order of a person or firm or to a bearer. Endorsement (without endorsement if made out to bearer) and delivery of a negotiable warehouse receipt serves to transfer the property covered by the receipt serves to transfer the property covered by the receipt. Warehouse receipts are common documents in international banking.

Warehouse-to-Warehouse

A clause in marine insurance policy whereby the underwriter agrees to cover the goods while in transit between the initial point of shipment and the point of destination, with certain limitations, and also subject to the law of insurable interest. When it was first introduced, the warehouse-to-warehouse clause was extremely important, but now its importance is diminished by the marine extension clauses, which override its provisions.

War Risk

The possible aggressive actions against a ship and its cargo by a belligerent government. This risk can be insured by a marine policy with a risk clause.

War Risk Insurance

Insurance issued by marine underwriters against war-like operations specifically described in the policy. In former times, war risk insurance was taken out only in times of war, but currently many exporter cover most of their shipments with war risk insurance as a protection against losses from derelict torpedoes and floating mines placed during former wars, and also as a safeguard against unforeseen warlike developments. In the United states, war risk insurance is written in a separate policy from the ordinary marine insurance; it is desirable to take out both policies with the same underwriter in order to avoid the ill effects of a possible dispute between underwriters as to the cause (marine peril or war peril) of a given loss.

Weigh

: Gross - The weight of the goods including packing, wrappers, or containers, internal and external. The total weight as shipped.

Weight, Legal

Net weight of goods, plus inside packing.

Weight Load Facto

: Payload achieved as against available, expressed as a percentage. Cargo is frequently limited by volume rather than weight; load factors of 100% are rarely achieved.

Wet Lease

An arrangement for renting an aircraft under which the owner provides crews, ground support equipment, fuel and so on (of dry lease).

w.g.

Weight guaranteed

Wharfage

A charge assessed by a pier or dock owner against the cargo or a steamship company for use of the pier or dock.

W. & I.

Weighing and Inspection

With Average

A marine insurance term meaning that shipment is protected for partial damage whenever the damage exceeds a stated percentage.

Without Reserve

A term indicating shipper's agent or representative is empowered to make definitive decisions and adjustments abroad without approval of the group or individual represented. See advisory capacity.

With Particular Average (W.P.A.)

An insurance term meaning that partial loss or damage of goods is insured. Generally must be caused by sea water. Many have a minimum percentage of damage before payment. May be extended to cover loss by theft, pilferage, delivery, leakage, and breakage.

W/M

Weight and/or measurement

W.P.A.

With Particular Average

W/R

Warehouse receipt

W.R.

War Risk

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X Heavy

Extra Heavy

X Strong

Extra strong

XX Heavy

Double extra heavy

XX Strong

Double extra strong

Y/A

York-Antwerp Rules - A code of rules adopted by an international convention in 1890, amended in 1924 and again in 1950, for the purpose of establishing a uniform basis for adjusting general average. Certain nationalities decline to observe certain of the rules adopted. United States shipping interests generally abide by general rule "F" and numbered rules 1 to 15 and 17 to 22, inclusive and specifically set this forth in a Bill Of Lading Clause.

Yield

Revenue, not necessarily profitable, per unit of traffic.

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