GLOSSARY OF

TERMS AND
ABBREVIATIONS
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 GLOSSARY OF TERMS AND ABBREVIATIONS

NUMERICAL
Agent
20’
A person authorized to transact business for
Standard Twenty Foot Long Shipping Container.
and in the name of another person or company.
40’
Allotment
Standard Forty Foot Long Shipping Container.
A term used to describe blocked space
by airlines and shipping lines on behalf of
20’HC
forwarders/shippers.
Twenty Foot High Cube Container.

AWB
40’HC
Airway Bill – is a bill of lading which covers both
Forty Foot High Cube Container.
domestic and international flights transporting
goods to a specified destination. Technically it
20’GOH
is a non-negotiable instrument of air transport
Twenty Foot Goods on Hanger Container.
which serves as a receipt for the shipper,
indicating that the carrier has accepted the
40’GOH
goods listed therein and obligates itself to carry
Forty Foot Goods on Hanger Container.
the consignment to the airport of destination
according to specified conditions.
20’RF
Twenty Foot Reefer Container.
APCA
Australian Port Charge Additional.
40’RF
Forty Foot Reefer Container.
AQIS
Australian Quarantine Inspection Service. A
20’NOR
government body protecting Australia from
Twenty Foot Non Operating Reefer Container.
contaminated fauna and flora.

Arbitrary

A An additional rate charged over an already

fixed rate, when freight has to be moved by an
additional source of transport from one point, to
ACA get to another point.
Air Cargo Automation is an electronic reporting
system set up by Australian Customs to report
on cargo prior to arrival in Australia.

Ad Valorem
B
“According to the value” or “on the value”. BAF
Rates of duty expressed as a percentage of the Bunker Adjustment Factor. Adjusts the freight
value of goods are known as “ad valorem rates”. to reflect current cost of bunkers (fuel for ships).

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 GLOSSARY OF TERMS AND ABBREVIATIONS

BCN (FCX) Carnet

Buyers Consolidation. Full container shipments A customs document for permitting the holder
from multiple suppliers for the one consignee. to carry or send merchandise temporarily
into certain foreign countries for display,
B/L , BOL demonstration or other purposes without paying
Bill of Lading – acts as a receipt for the cargo and import duties or posting bonds.
contains the terms of the contract of carriage
and is a document of title to the goods. CBM
Cubic Meter – calculated as length x width x
Bonded Warehouse height.
A place of security approved by the custom
authorities for the deposit, keeping and securing Certificate of Origin
of goods liable to excise duty, without payment A document certifying the country of origin of
of this duty. goods which is issued or signed by a chamber
of commerce or embassy.
Box
A colloquial name for a shipping container. CFR/C&F
Cost and freight. An Incoterm where the seller
Break Bulk (Seafreight) includes the cost of transportation in the price
Goods shipped loose in a vessel’s hold and not for his goods (freight prepaid). Formally known
in containers. as C&F.

Break Bulk (Airfreight) CFS

For consolidated air freight, it is moved under Container Freight Station – a place for the
one MAWB and each consignment designated packing and unpacking of LCL consignments.
to specific consignee or recipient is under on
HAWB. When the freight forwarder receives CHIEF
the consolidated cargo from the carrier they Customs handling of Import and Export Freight
will break the consolation apart per HAWB then – a customs computer system.
proceed with the customs clearance along with
associated shipping and import documents. CIF
Cost, Insurance and freight. An Incoterm
where the seller arranges and pays for the main

C
carriage to the port of destination and organizes
the insurance cover for the cargo while in transit.

CAF CMI
Current adjustment factor – adjusts the freight Comite maritime International – an international
to reflect currency exchange fluctuations. committee of maritime lawyers.

CABAF Commercial Invoice

Currency and Bunker adjustment factor, a Represents a complete record of a transaction
combination of CAF and BAF. between exporter and importer with regard to
the goods sold. Also reports the content of the
CAN shipment and serves as the basis for all other
Customs Authority Number. Number provided documents about the shipment.
by customs upon the clearance of export goods.

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 GLOSSARY OF TERMS AND ABBREVIATIONS

COU Cut Off Date

Clip on unit – a portable refrigeration unit. The last date for which goods can be accepted
for a nominated sailing.
Consignment
Delivery or merchandise from an exporter (the Consignee (CNEE)
consignor) to an agent (the consignee) under The party, to whom a consignment is dispatched,
agreement that the agent sell the merchandise having legal title to the goods.
for the account of the exporter. The consignor
retains title to the goods until sold. The Consignor (CNOR)
consignee sells the goods for commission and The sender of the goods.
remits the net proceeds to the consignor.
Consignment Note
Consolidation A document that describes a consignment
In order to handle small lots of consignments moving from one point to another, also known
efficiently and competitively, freight forwarders as advice or dispatch note or connote.
usually put many consignments into one lot then
tender to carrier for forwarding. In this case, COD
each consignment will be shipped with one Cash on Delivery – full payment for goods on
house bill of lading respectively and all of them delivery.
will be under one master bill of lading.

D
CRN
Customs Register Number – is the number
allocated by customs to an export, agent or
freight forwarder for use when exporting goods DAP
on the same shipment from more than one Delivered at Place - an Incoterm meaning that
shipper. the seller is responsible for arranging carriage
and for delivering the goods, ready for unloading
CT from the arriving conveyance, at the named
Combined Transport – carriage buy more than place. (An important difference from Delivered
one mode of transport under one contract of At Terminal DAT, where the seller is responsible
carriage. for unloading.)

CY Risk transfers from seller to buyer when the

Container Yard – a collection and distribution goods are available for unloading; so unloading
point for FCL Containers. is at the buyer’s risk.

Conference The buyer is responsible for import clearance

An organisation of a group of shipping lines and any applicable local taxes or import duties.
operating in one trade who have agreed to
operate a common tariff. DAT
Delivered at Terminal - an Incoterm meaning that
Consortium the seller is responsible for arranging carriage
A group of ‘Combined Transport’ operators who and delivering the goods, unloaded from the
agree to rationalize sailing in a trade and carry arriving conveyance, at the named place.
each other’s cargo.

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 GLOSSARY OF TERMS AND ABBREVIATIONS

Risk transfers from seller to buyer when the Drawback

goods have been unloaded. Repayment of a duty upon re-exportation of
goods previously imported.
The buyer is responsible for import clearance

E
and any applicable local taxes or import duties.

Demurrage
A charge raised for detaining cargo, containers EHA
or trailers for a longer period than provided for Equipment Handover Agreement –
in the tariff. acknowledging the condition of the carrier’s
equipment when taking over and returning it,
DDP incorporating contractual terms under which the
Delivery Duty Paid – an Incoterm meaning the equipment is taken over.
seller fulfils his obligation to deliver when the
goods have been made available at the named ETA
place in the country of importation. The seller Estimated Time of Arrival – indicates the
has to bear the risks and costs, including duties, estimation of the date/hour the carrier believes
taxes and other charges of delivering the goods the cargo, vessel or container will arrive at a
thereto, cleared for importation. nominated point/port.

Deconsolidation Point ETD

Place where loose cargo is ungrouped for Estimated Time of Departure – indicates the
delivery. estimation of the date/hour the carrier believes
the cargo, vessel or container will leave a
DO nominated point/port.
A document given to the party surrendering the
original Bill of Lading authorizing them to take Ex-Works (EXW)
delivery of the goods. An Incoterm when the sellers only responsibility
is to make the goods available at his premise
Documentary Credit for pickup.
The basis of international trade by means of
which payment is made against surrender of
specified documents.

Duty
F
Is a particular percentage (depending on
FAS
commodity) of the FOB value which is paid to
Free Alongside Ship - an Incoterm that means
the government. The FOB value is the cost of
the seller fulfils his obligation to deliver when he
the goods plus any other charges to get those
has handed over the goods, cleared for export,
goods onto a vessel.
into the charge of the carrier named by the buyer
at the named place or point.
DOT
Department of Trade – governmental department
FAK
with responsibility for shipping and trade.
Freight All Kinds – refers to the full container loads
of mixed shipments for different consignees.

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 GLOSSARY OF TERMS AND ABBREVIATIONS

FCL GRP
Full Container Load – an arrangement whereby Groupage - refers to the full container loads of
the shipper utilizes all the space in a container. mixed shipments for different consignees.

FCX (BCN) GOH

Full container shipments from multiple suppliers Garments On Hanger container used to transport
for the one consignee. garments and other hanging product. Available
in 20’ and 40’ sizes.
Feeder Vessel
A short-sea vessel used to fetch and carry Groupage
goods and containers to and from deep-sea Consolidation of several LCL Consignments
ports/vessels. into a container for difference consignees.

FIS GP
Free Into Store – An unofficial term that means General Purpose – a closed steel container for
the seller is responsible for all costs – CIF/C&F the carriage of all types of general. 20’ and 40’
plus Customs Duty, Landing costs and all available in GP.
transport charges delivered into buyers store.
GST
Flat Rack Goods and Service Tax – worked out as 10% if
Container bottom specifically for heavy lifts and the CIF Value + the duty amount. The CIF value
over width cargoes. is the cost of goods + marine insurance + freight
amount (cost to get cargo to destination port) +
FMC duty.
Federal Maritime Commission – US Federal
Authority governing sea transport.

FOB
Free On Board – An Incoterm where the seller is
H
responsible for all costs up to loading the ship Harmonised System
at named port. The Harmonized Commodity Description and
Coding System (or Harmonized System, HS) is
Freight a system for classifying goods in international
The amount of money payable for the carriage trade, developed under the auspices of the
of goods. Customs Cooperation Council.

Hazchem Code

G Hazardous chemical code placed on tankers

carrying dangerous chemicals.

GATT HC - Hi-Cube
General Agreements on Tariffs and Trade – an Is a container which is higher than a General
international multilateral agreement embodying Purpose Container – Available in both 20’ and
a code of practice for fair-trading in international 40’ size and is most common on the Australian
commerce with headquarters in Geneva. Coastal and Australia-New Zealand Trade
Lanes.

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 GLOSSARY OF TERMS AND ABBREVIATIONS

Import License
HBL - House Bill of Lading
A document required and issued by some
Issued by a freight forwarder or consolidator
national governments authorizing the importation
covering a single shipment containing the
of goods. Also referred as an import permit.
names, addresses and specific description of
With such documentation, customs clearance
the goods shipped.
can be conducted.

HAWB – House Airway Bill

Incoterms
Issued by a freight forwarder – although similar
A list of standard terms stated by the ICC for all
to a Bill of Lading it does not confer title in
foreign trade contracts, which lists the respective
goods and therefore does not have the same
responsibilities of the buyer and seller.
legal standing as Bill of Lading.

Intermodal

I Movement of goods by more than one mode of

transport ie. aeroplane, truck, railroad and ship.

IATA Insulated Container

International Air Transport Association (IATA) Specifically for cargoes requiring transport at a
established in 1945 is a trade association serving constant temperature above or below freezing
airlines, passengers, shippers, travel agents and point. This is controlled by the ships or terminals
governments. The association promotes safety cooling plant or a clip on reefer unit.
standardization in forms (baggage checks,
tickets, weigh bills) and aids in establishing ICC
international airfares. International Chamber of Commerce.

IMDG Code ISO

International Maritime Dangerous Goods Code International Standards Organisation – a body
– contains the IMO Recommendations for the responsible for setting standards for container
carriage of dangerous goods by sea. The form construction.
needed for export of this sort of cargo is known
as an M041 and is available from a freight ITF/IDF
forwarder. Paperwork for imported dangerous Air Cargo Charges – International Terminal Fee,
goods comes from the supplier. International Documentation Fee.

IMO

L
International Maritime Organisation – a UN body
charges with the duty of making safety and anti-
pollution conventions and recommendations
concerning sea transport.
Letter of Credit (L/C)
Letter of Credit – a document in which the terms
Import Certificate
of documentary credit transactions are set out.
The import certificate is a means by which
the government of the country of ultimate
LD3
destination exercises legal control over the
Lower deck type airline container. This is the
internal channeling of the commodities covered
most commonly used container in passenger
by the import certificate.
aircraft.

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 GLOSSARY OF TERMS AND ABBREVIATIONS

N
Letter of Indemnity (L/I) Non Conference
Letter of Indemnity – sometimes also called a A shipping line which does not participate in a
letter of guarantee, if an original bill of lading has consortium with other lines for tariff agreement.
become lost or delayed it allows the consignee
to take delivery of his goods. NVOCC
Non Vessel Operating Common Carrier – a
Liner carrier issuing bills of lading for carriage of
A vessel plying a regular pattern of trade on a goods on a vessel which they neither own nor
defined route under a published sailing schedule. operate.

Lower Deck Notify Party

The compartment below the Main Deck of an The party to whom the cargo arrival notice is
aircraft. sent.

LO/LO NOR
Lift On Lift Off – a wharf or cartage operator Non-operating reefer container.
charge for lifting of containers on and off a
vessel or vehicle.

LCL
Less than Container Load – when a parcel is
O
too small to fill a container, it is grouped by the OBL
carrier at a CFS depot with other compatible Ocean Bill of Lading issued by the shipping line/
cargo for the same destination. owners.

O/H

M
Over Height – a container with cargo exceeding
the height of the container.

MAWB O/S
Master Airway Bill – is the Airway Bill issued by Open Sided – A container with open sides for
the airline or principle carrier. over width cargo.

MBL O/T
Master Bill of Lading is the Bill of Lading issued Open Top – A container with open top loading
by the shipping line or principle carrier. facility, suitable for the carriage of heavy, over
height cargos. Can be equipped with tarpaulin
MMO roof.
Multi Modal Operator.
OOG
Manifest Out of gauge – goods whose dimensions exceed
List of goods on a vessel or aircraft. those of the container in which they are packed.

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 GLOSSARY OF TERMS AND ABBREVIATIONS

O/W PSC
Over Width – a container with goods protruding Port Service Charge. Cost of loading, unloading
beyond the sides of the container / flat rack onto FCL consignments at the terminal.
which they are packed.

P R
RO/RO
Packing List Roll on Roll Off – A vessel onto which goods can
Document required by the buyer and Customs, be driven via a ramp.
indicating content being shipped, or contents of
each packed. Routing Order
A document given to a supplier for instruction
Packing Declaration as to which freight forwarding company will be
Document required by AQIS which states how handling the details of the shipment.
the shipment as been packed with regards to
straw, timber, and bark. The packing declaration Reefer
must be completed in full including a numerical A refrigerated container used for cargo requiring
link to the shipment (eg. Container number, bill temperature control.
number).

POA

S
Place of Acceptance – the place where the
goods are received for shipment of transit and
where the carriers liability commences.
SCA
POD Sea Cargo Automation is an electronic reporting
Definition 1 - Place of Discharge – the place system set up by Australian Customs to report
where the goods are discharged and carrier’s on cargo prior to arrival in Australia.
liability ends.
Definition 2 - Proof of Delivery – a signed receipt SOB
acknowledging delivery. Shipped on Board – an endorsement on the bill
of lading confirming that the goods have been
POL loaded on board.
Port of Loading – the port at which accepted
cargo is loaded onto a vessel. Shipper
The person who tenders the goods for carriage.
Principle Carrier
The carrier who issues the Bill of Lading Shipping Mark
regardless of whether or not the goods are The letters, numbers or other symbols placed on
carried on their own, a third party’s or a the outside of cargo to facilitate identification.
consortium members vessel.

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 GLOSSARY OF TERMS AND ABBREVIATIONS

Short Shipped Tariff

Goods not carried on the intended vessel. The terms, condition and scale of charges for
carriage.
SLI
Shippers Letter of Instruction – Forwarding Transship
Instructions completed by shippers to freight When cargo is discharged from one ship and
forwarders instructing them on the completion loaded onto another in order to reach a port of
of HAWB or HBL. no direct service or as a cheaper alternative to
the direct service.
Slot
The space on board a vessel occupied by a

U
container.

T ULD
Unit load device which links directly with the
airplane cargo handling and restraint system.
TACT
The Air Cargo Tariff. Published by IAP

V
(International Airlines Publications) and
IATA company. Outlines general airfreight
information, acceptance of carriage,
transportation charges, services and related Vent
charges, payment of rates and charges and Container which contains ventilations sites to
various other items. Airfreight Hazardous cargo prevent condensation accumulating on cargo.
will always travel on the “TACT” rate.

Time Slot
The time booked to deliver a container or collect
a container from the wharf.
W
Waybill
TEU
A Bill of Lading that acts as a receipt for
Twenty Foot Equivalent Unit (20’).
the goods and evidence of the contract for
carriage. A waybill is a bill of lading that and
THC
can be defined as follows: a receipt for goods,
Terminal Handling Charge – A charge for
is evidence of the contract; is a non-negotiable
handling containers at ocean terminal/
document.
wharves. Also charge for handling LCL cargo at
deconsolidation depots.
Under a waybill, delivery will be effected to a
nominated consignee upon proof of identity. As
Tare Weight
a title it presents a personal contract between
The actual weight of the empty container, not
the shipper and the carrier only. There is (at
including the goods.
present) no mandatory law or convention and
the parties have absolute freedom of contract

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 GLOSSARY OF TERMS AND ABBREVIATIONS

W/M
Weight Measure the freight rate based on the
weight of volume of the cargo. The rate uses the
comparative relationship between weight and
volume of cargo.

Wharfage
A charge assessed by a pier or dock owner for
handling incoming or outgoing cargo.

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