Quick Terms Abbreviations

(at value) an ad valorem freight rate is one where the freight is based on thevalue of the goods. An ad valorem bill of lading is one where the value of thegoods is shown on the face of the document, which value then becomes thecarriers limit of liability, in return for this increased liability the carrier willcharge an addition to the sea freight.

Agent -A person authorized to transact business for and in the name of another personor company.

AQIS -Australian quarantine inspection service. A government body protectingAustralia from contaminated fauna and flora.

Arbitrary -An additional rate charged over an already fixed rate, when freight has to bemoved by an additional source of transport from one point, to get to anotherpoint.

BAF -Bunker Adjustment Factor. Adjusts the freight to reflect current cost ofbunkers (fuel for ships).

B/L(Bill of Lading) acts as a receipt for the cargo and contains the terms of thecontract of carriage and is a document of title to the goods.

Bonded Warehouse -A place of security approved by the custom authorities for the deposit, keepingand securing of goods liable to excise duty, without payment of this duty.

Box -A colloquial name for a shipping container.

Break Bulk -Goods shipped loose in the vessels hold and not in containers.

CAF -Currency adjustment factor adjusts the freight to reflect currency exchangefluctuations.

CABAF -Currency and Bunker adjustment factor, a combination of CAF and BAF.

CAN/PRA -CAN (Customs Authority Number)Its the number given by customs upon the clearance of export goods.PRA (Pre Receival Advice)Its the electronic lodgment to the wharf for notification of a container comingin for export.

Cartage -Refers to the intra-city haulage of goods on drays (heavy side less cart) ortrucks.

Certificate of Origin-A document certifying the country of origin of goods which is normally issuedor signed by a Chamber of Commerce or Embassy

CFR(Cost and freight) – An Incoterm where the seller includes the cost oftransportation in the price for his goods (freight pre-paid). Formerly known asC & F.

CFS(Container Freight Station) a place for the packing and unpacking of LCLconsignments.

CHIEF(Customs Handling of Import and Export Freight) a customs computer system.

CIF(Cost, insurance and freight) – An Incoterm where the seller arranges and paysfor the main carriage to the port of destination and organizes the insurancecover for the cargo, while in transit.

CMI(Comite Maritime International) an international committee of maritimelawyers.

Commercial Invoice-Represents a complete record of a transaction between exporter and importerwith regard to the goods sold. Also reports the content of the shipment andserves as the basis for all other documents about the shipment.

COU(Clip on unit) – a portable refrigeration unit

CRN(Customs Register Number) is the number allocated by customs to an export,agent or freight forwarder for use when exporting goods on the same shipmentfrom more than one shipper.

CT(Combined Transport) carriage buy more than one mode of transport under onecontract of carriage.

CY(Container Yard) a collection and distribution point for FCL containers.

Conference -An organisation of a group of shipping lines operating in one trade who haveagreed to operate a common tariff.

Consortium -A group of Combined Transport operators who agree to rationalise sailing ina trade and carry each others cargo.

Cut Off Date -The last date for which goods can be accepted for a nominated sailing.

CNEE(Consignee) -The party to whom a consignment is dispatched, having legal title to the goods.

CNOR(Consignor)-The sender of the goods

Consignment Note -A document that describes a consignment moving from one point to another,also known as advice or dispatch note or Con note.

COD(Cash on delivery) full payment for goods on delivery

Deconsolidation Point -Place where loose or other non-hazardous cargo is ungrouped for delivery.

Demurrage -A charge raised for detaining cargo, containers or trailers for a longer periodthan provided for in the tariff.

D/O -A document given to the party surrendering the original Bill of Lading,authorizing them to take delivery of the goods.

Documentary Credit-The basis of international trade by means of which payment in made againstsurrender of specified documents.

DOT(Department of Trade) governmental department with responsibility forshipping and trade.

Drawback -Repayment of a duty upon re-exportation of goods previously imported.

Duty -Is a particular percentage (depending on commodity) of the FOB value, whichis paid to the government. The FOB value is the cost of the goods plus anyother charges to get those goods on to a vessel.

EHA(Equipment Handover Agreement) acknowledging the condition of the carriersequipment when taking over and returning it, incorporating contractual termsunder which the equipment is taken over.

ETA(Estimated Time of Arrival) indicates the estimation of the date/hour, thecarrier believes the cargo, vessel or container will arrive at a nominatedpoint/port.

EX-WORKS -An Incoterm when the sellers only responsibility is to make the goods availableat his premises for pick up.

FAK(Freight all kinds) refers to full container loads of mixed shipments fordifferent consignees.

FCL(Full Container Load) an arrangement whereby the shipper utilises all the spacein a container which he packs himself.

FCX -Full container shipments from multiple suppliers for the one consignee.

Flat Rack -Container bottom specifically for heavy lifts and overwidth cargoes. Noncontainerisable cargo can be accommodated on several flats positioned side byside.

FMC(Federal Maritime Commission) US Federal Authority governing sea transport.

Feeder Vessel -A Short-sea vessel used to fetch and carry goods and containers to and fromdeep-sea ports/vessels

Freight -The amount of money payable for the carriage of goods. Sometimeserroneously used to describe the goods, which are more correctly described ascargo in marine transportation.

GATT(General Agreements on Tariffs & Trade) an international multilateralagreement embodying a code of practice for fair-trading in internationalcommerce with headquarters in Geneva.

Groupage -Consolidation of several LCL consignments into a container for differentconsignees.

GP(General Purpose) A closed steel container for the carriage of all types ofgeneral, non-hazardous cargo. 20 & 40 available in GP.

GST(Goods and Service Tax) worked out as 10% of the CIF value + the dutyamount. The CIF value is the cost of goods + marine insurance + freightamount (cost to get cargo to destination port) + duty.

Hazchem Code -Hazardous chemical code placed on tankers carrying dangerous chemicals.

Hi-Cube -Is a container which is slightly (bigger) higher than a General Purposecontainer. Available in both 20 & 40.

House Bill of Lading -Issued by a freight forwarder or consolidator covering a single shipmentcontaining the names, addresses and specific description of the goods shipped.

ICC -International Chamber of Commerce.

IMDG Code(International Maritime Dangerous Goods Code) contains the IMOrecommendations for the carriage of dangerous goods by sea. The form neededfor export of this sort of cargo is known as an MO41 and is available from afreight forwarder. Paperwork for imported dangerous goods comes from thesupplier.

IMO(International Maritime Organisation) a UN body charges with the duty ofmaking safety and anti-pollution conventions and recommendations concerningsea transport.

Incoterms -A list of standard terms stated by the ICC for all foreign trade contracts, whichlists the respective responsibilities of the buyer and seller.

Insulated Container -Specifically for cargoes requiring transport at a constant temperature above orbelow freezing point This is controlled by the ships or the terminals coolingplant or a clip on reefer unit.

ISO(International Standards Organisation) a body responsible for, inter alia, settingstandards for container construction.

L/C(Letter of Credit) a document in which the terms of documentary credittransactions are set out.

LCL(Less than Container Load) when a parcel is too small to fill a container, it isgrouped by the carrier at a CFS depot, with other compatible cargo, for thesame destination.

L/I(Letter of Indemnity) sometimes also called a letter of guarantee, if an originalb/lading has become lost or delayed it allows the consignee to take delivery ofhis goods.

Lo/Lo(Lift On Lift Off) a wharf charge for the lifting of containers on and off avessel.

Liner -A vessel plying a regular pattern of trade on a defined route under a publishedsailing schedule.

Manifest -List of goods or passengers on a vessel / aircraft

Non Conference -A shipping line which does not participate in a consortium with other lines fortariff agreement.

NVOC(C)-Non Vessel Operating (Common) Carrier a carrier issuing bills of lading forcarriage of goods on vessels which they neither own or operate.

Notify Party-The party to whom the cargo arrival notice is sent.

O/H(Over Height) a container with cargo exceeding the height of the container.

O/S(Open Sided) A container with open sides for over width cargo.

O/T(Open Top) A container with open top loading facility, suitable for the carriageof heavy, over height cargos equipped with tarpaulin roof.

OOG(Out Of Gauge) goods whose dimensions exceed those of the container inwhich they are packed.

O/W(Over Width) a container with goods protruding beyond the sides of thecontainer / flat rack onto which they are packed.

Packing List-Document required by the buyer and Customs, indicating content beingshipped, or contents of each package.

Packing Declaration-Document required by Aqis which states how the shipment as been packedwith regards to straw, timber and bark. The packing declaration must becompleted in full including a numerical link i.e. container or bill number andissued on suppliers own letterhead to be accepted by quarantine.

POA(Place of Acceptance) the place where the goods are received for shipment oftransit and where the carriers liability commences.

POD(Place of Discharge) the place where the goods are discharged and carriersliability ends. It can also mean;Proof of Delivery a signed receipt acknowledging delivery.

POL(Port of Loading) the port at which accepted cargo is loaded onto a vessel.

Principal Carrier -The carrier who issues the B/Lading regardless of whether or not the goods arecarried on their own, a third partys or a consortium members vessel.

PSC(Port Service Charge) – Cost of loading, unloading FCL consignment at theterminal.

RO/RO(Roll On Roll Off) A vessel onto which goods can be driven, via ramp.

Routing Order -Document given to a supplier for instruction of buyers whom cargo is to berouted through, i.e. freight forwarder or forwarders agent in country of origin.

SOB -Shipped on Board and endorsement on the bill of lading confirming that thegoods have been loaded on board.

Shipper -The person who tenders the goods for carriage. Not to be confused with theparty issuing the bill of lading or the vessel operator, who is the carrier.

Short Shipped -Goods not carried on the intended vessel.

Slot -The space on board a vessel occupied by a container. Also known as the timebooked to deliver a container to the wharf.

TEU -Twenty-Foot Equivalent Unit ie. 1 x 20ft = 1 TEU, 1 x 40ft = 2 TEU.

THC -Terminal Handling Charge A charge for handling containers at oceanterminals/wharves.

Tare Weight -The actual weight of the empty container, no including the goods.

Tariff -The terms, conditions and scale of charges for carriage

Transship -When cargo is discharged from one ship and loaded onto another in order toreach a port of no direct service or as a cheaper alternative to the direct service.

Waybill -A bill of lading that acts as receipt for the goods and evidence of the contractfor carriage. A waybill is a bill of lading that is not a document and can bedefined as follows: – a receipt for goods; is evidence of the contract; is a nonnegotiable document.

Under a waybill, delivery will be effected to a nominated consignee upon proofof identity. As a title it presents a personal contract between the shipper andthe carrier only. There is (at present) no mandatory law or convention and theparties have absolute freedom of contract.

Vent -Container which contains ventilations sites to prevent condensationaccumulating on cargo.

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HAI SON Shipping & Transport Pty Ltd

Revesby NSW 2212 Phone: 02 8709 7100 Fax: 02 9773 5000 Email:.au