Dictionary of foreign trade and logistics.
ACF – Attainable Cubic Feet
Acknowledgement of Receipt – A notification relating to the receipt of e.g. goods, messages and documents.
ADR – Articles Dangereux de Route. European Agreement concerning the international carriage of dangerous goods by road.
AFRMM – In addition to freight for Renewal of the merchant marine.
Aladi (Associação Latino-Americana de Integração) – Congregation of countries that have as objective the establishment of a Latin American common market, made up of Argentina, Bolivia, Brazil:, Chile, Colombia, Cuba, Ecuador, Mexico, Paraguay, Peru, Uruguay and Venezuela.
AWB – Air Waybill. A bill of lading for air transport that serves as a receipt for the shipper, indicates that the carrier has accepted the goods listed, obligates the carrier to carry the consignment to the airport of destination according to specified conditions.
Back to Back – Consolidation of a single shipment in a MAWB (Master Air Waybill-Main Knowledge of air transport) covering a HAWB (House Air Waybill – air transport guide issued by a consignor).
Barra – A safe Location near the port, where the ships wait for authorization to dock at the available wharf or determined.
Ballast – Materials solely carried to improve the trim and the stability of the vessel. In vessels usually water is carried as ballast in tanks, specially designed for that purpose.
B/L (Bill of Lading) – A document that a transportation company possesses acknowledging that it has received goods, and that temporarily serves as title during transport of the merchandise.
BI-train or Trailer – is the set formed by the monolithic body with two axles and four wheels. Is locked in the back of the truck for transport, forming a set of two bodies pulled by one truck.
Bonded Warehousing – A warehouse storage area or manufacturing facility in which imported goods may be stored or processed without payment of customs duties; payment of duties is deferred until the importer pays the duties or until Customs releases the merchandise.
Break-Bulk – The separation of a consolidated bulk load into smaller individual shipments for delivery to the ultimate consignee. The freight may be moved intact inside the trailer, or it may be interchanged and rehandled to connecting carriers.
Bulk Cargo – Cargo that is shipped as a unit or package (for example: palletized cargo, boxed cargo, large machinery, trucks) but is not containerized
Bulk Carrier – Ship suitable for the transportation of bulk cargos.
Bulk Container – Shipping container designed for the carriage of free-flowing dry cargoes, which are loaded through hatchways in the roof of the container and discharged through hatchways at one end of the container.
Business Logistics – Strategic, tactical and operational approaches and principles applied to increase the return on investment by developing the cost efficiency of the material flow, the return on capital in the material flow and the service to the customers. The BL-principles are the basis for development, planning, coordination and control of the material flow from raw material supplier to end customer.
Bow – The front of the ship.
Cabotage – Is where cargo is carried on what is essentially a domestic flight and therefore not subject to international agreements that fix set rates. Cabotage rates are negotiable between shipper and airline and apply on flights within a country and to its overseas territories.
CCR – Reciprocalpayments and Credit Agreement-payment system controlled by central banks covering the ALADI countries and the Dominican
CFR – Cost and Freight
CI – Proofof
CIDE – (Contribution on the Economic Domain) – charged on oil and oil products.
CIF – Cost, Insurance and Freight. Cost of goods, marine insurance and all transportation (freight) charges are paid to the foreign point of delivery by the seller.
CIP – Cariage and Insurance Paid To
Consignee – The individual or company to whom a seller or sipper sends merchandise and who, upon presentation of necessary documents, is recognized as merchandise owner for the purpose of declaring and paying customs duties.
Cargo Consolidation – A number of separate shipments that are assembled into one shipment for movement on one waybill from one location to another. Consolidation of cargo can result in reduced shipping rates.
Container – The term container means a single rigid, non-disposable dry cargo, insulated, temperature controlled flatrack, vehicle rack portable liquid tank, or open top container without wheels or bogies attached, having not less than 350 cubic feet capacity, having a closure or permanently hinged door that allows ready access to the cargo (closure or permanently hinged door not applicable to flatrack vehicle rack or portable liquid tank). All types of containers will have constructions, fittings and fastenings able to withstand without permanent distortion, all the stresses that may be applied in normal service use of continuous transportation. All containers must bear manufacturer’s specifications.
CPC – Commerce Planning Colaboration.
CPT – Cariage Paid To. A Term of Sale which means the seller pays the freight for the carriage of the goods to the named destination. The risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time the goods have been delivered to the carrier, is transferred from the seller to the buyer when the goods have been delivered into the custody of the carrier. If subsequent carriers are used for the carriage to the agreed upon destination, the risk passes when the goods have been delivered to the first carrier. The CPT term requires the seller to clear the goods for export.
Cubage – Cubic volume available for stocking or shipping. The cubic meter is calculated by multiplying the length by width and height.
Customhouse Broker – A person or firm, licensed by the treasury department of their country when required, engaged in entering and clearing goods through Customs for a client (importer).
Customs warehouse – Special regime allowing the importation of foreign goods for storage in public bonded, with suspension of the payment of taxes.
Customs premises – Are places declared by the competent customs authority, in the primary zone or in the secondary zone, so that customs control, handling, storage and customs clearance may take place therein.
Customs transit – A special customs regime that allows the transport of goods in the national territory, under customs control, from one point to another of the customs territory, with suspension of the payment of taxes.
Derrick barge – Equipment used in ports to lift big heavy loads or materials.
Draft – Expression in shipping, which means depth in which each ship is submerged in the water. Technically it is the distance from the water slide to the keel of the ship.
Deck – First covered area of the ship.
DAC – (Certified Customs Warehouse) – A special customs regime that allows the deposit, on a domestic market, under customs regime, of products already marketed with the outside, considered exported for all fiscal, credit and exchange effects.
DAF – Delivered At Frontier
DDP ou Door to Door – Delivered Duty Paid. Also known as “free domicile.”
DDU – Delivered Duty Unpaid. Reflects the emergence of “door-to-door” intermodal or courier contracts or carriage where only the destination customs duty and taxes (if any) are paid by consignee.
Demurrage or overstay – A penalty for exceeding free time allowed for loading or unloading at a pier or freight terminal. Also a charge for undue detention of transportation equipment or carriers in port while loading or unloading.
Dead line – Deadlinefor delivery of cargo for
DEQ – Delivered Ex QUAY.
DES – Delivered Ex SHIP
DI – (Import declaration) – Basic document of the import dispatch which must contain the importer’s identification, classification, customs value and origin of the merchandise, among other information. DSI – Simplified Import Declaration.
Docks – It is the place where the goods are intermediate between the expedition and transport (several modes), in order to facilitate and streamline the operation of loading and unloading.
Dredging – Excavation service in the access channels and docking areas of the ports for maintenance or increase of the depth.
Draw-back – Repayment of any part of customs or excise duties previously collected on imported goods, when those goods are exported again.
DSE – Simplified export declaration.
Docker – DockEmployee who works at the loading andunloading of ships.
EADI – Customs station of Interior.
ELQ – Economic Logistic Quantity.
ETA – Estimated Time of Arrival
ETS – Expected time of sailing
EXW – Ex works. The goods are placed at the disposal of the buyer at the seller’s premises, or at another named place (factory, warehouse, etc.), without being ready for export or loaded on any transport vehicle.
FAS – Free Alongside Ship. The seller delivers the goods to the buyer at the side of the ship at the port of shipment.
FCA – Free Carrier. The seller is exempt from responsability when delivering the goods to the agent indicated by the buyer or the carrier.
FCL – Full Container Load
FCR – Forwarder Certificate of Receipt
Feeder – A vessel normally used for local or coastal transport (for carriage of cargo and/or containers) to and from ports not scheduled to be called by the main (ocean) vessel, directly connecting these ports to the main (ocean) vessel.
Feeder Ship – Supply ships.
FIO – Free In and Out. Transport condition denoting that the freight rate excludes the costs of loading and discharging and, if appropriate, stowage and lashing.
FOB – Free On Board. Free on Board means that the seller fulfils his obligation to deliver when the goods have passed over the ship’s rail at the named port of shipment. This means that the buyer has to bear all costs and risks of loss of or damage to the goods from that point. The FOB term requires the seller to clear the goods for export. This term can only be used for sea or inland waterway transport. When the ship’s rail serves no practical purpose, such as in the case of roll-on/roll-off transport, the FCA term is more appropriate to use
Freight Collect – Freight and charges be paid by the consignee.
Freight Forwarders – Cargo shipping company. An individual or company, acting on the behalf of a shipper, who arranges all necessary details of shipping and documentation for a manufacturer or exporter, which includes employing the services of a carrier of carriers.
Freight Payable at Destination – Similar to freight collect, however, can only be paid at the destination.
Freight Prepaid – Freight and charges to be paid by the consignor.
HAWB (House Airway Bill) – An air waybill issued by a freight consolidator.
Hinterland – The inland area served by a certain port.
House – Expression that is used for container, indicating that it will be ovate or spawn in the house of the shipper or consignee.
House Bill of Lading ou House B/L – Bill of lading issued by a freight forwarder (shipping company).
Hub – A central location to which traffic from many cities is directed and from which traffic is fed to other areas.
IBC – Intermediate Bulk Container.
Incoterms – A codification of terms used in foreign trade contracts that is maintained by the International Chamber of Commerce.
Industrial warehouse under Customs Computerised Control – Allows the company to import inputs with tax suspension, under customs control, intended for industrial production of goods to be exported.
Industrial warehouse under computerized control – Special regime that allows the company to import with suspended payment of taxes, under computerized control, goods to be submitted to the industrialization and subsequent export operation.
Intermodal Transportation – Transportation that uses a specialized container that can be transferred from the vehicle of one mode to the vehicle of another; a single freight bill is used for the shipment. Example: Ocean shipping containers which can be hauled by trucks on chassis, railcars, ocean vessels, and barges.
Just-in-Time ou JIT – Scheduled, sequenced delivery of parts and products designed to create a smooth flow of in-bound materials received at assembly and manufacturing plants.
Kaizen – Process of continuous improvement, with good sense and low investment.
Layday ou Laytime – The number of days allowed in a charter party for the loading and discharging of cargo. Lay days may be indicated in different ways e.g. consecutive days, working days, weather working days.
L/C – Letter of Credit.
LLP – Leading Logistics Provider. A logistics service provider that provides a wide range of logistics services often, though not exclusively, through the use of subcontracted logistics providers.
Logisticcost – Is the sum of the cost of shipping, the cost of storage and maintenance cost of stock.
Loading board – This is part of the operating rules of the ports, and means the minimum tonnage established that will be operated within a period of six hours.
Luggage – Travellers’ baggage, suitcases, boxes etc., normally accompanied by a passenger.
MAWB (Master Airway Bill) – Issued by the carrier to the airbill cargo Consolidator.
Mercosur (Southern Common Market) – Aims at economic and commercial integration among its partners – Argentina, Brazil, Paraguay and Uruguay.
Milk Run – Consists in the search of the product(s) directly by the supplier(s), on a scheduled basis, to meet your need.
Modal – Types of transport. They are: maritime (made by sea), rail (made by railways), road (made by highways), waterway (by rivers) and Aviation (by air).
Multimodal Transport – Is the integration of services from more than one mode of transport, used for a given load to cross the path between the sender and its recipient, among the various modalities existing, being only a single transport knowledge issued by the sole responsible for transportation, which is the OTM – Multimodal Transport Operator.
NVOCC – Symbol indicative of Non-Vessel-Operating Common Carrier. An F.M.C. registered cargo consolidator of small shipments in ocean trade, generally soliciting business and arranging for or performing containerization functions at the port. These carriers issue their own bill of lading referred to as a house bill of lading.
OTM – Multimodal transport operator.
Outbound – Streams from the factory to the dealer.
Port – Left side of the ship.
Package – Any physical piece of cargo in relation to transport consisting of the contents and its packing for the purpose of ease of handling by manual or mechanical means. The final product of the packing operation consisting of the packing and its contents to facilitate manual or mechanical handling.
Performance measurement – The comparison of the results of business processes with each other or with standards in order to know the effectiveness of these processes and/or the supportive actions.
Packing List – A document prepared by the shipper that lists the kinds and quantities of merchandise in a particular shipment. A copy is generally sent to the consignee to aid in checking the shipment when received.
Pre-Stacking – Pre-stacking of containers, to prepare them for shipment.
PSI – Pre-shipment inspection.
Primary zone – Area demarcated by the customs authority at customs ports, airports and border points.
RE (Export registration) – A document required by the U.S. Treasury Department and completed by a shipper indicating the contents, value, and destination of an export shipment.
Reverse or Reverse Logistics – The recycling, and disposal of finished products, with the goal of conserving raw materials.
Redex – Special Enclosure for Customs Clearance of Export.
Reimportation – Means to bring back merchandise that has been exported temporarily.
RES (Simplified Export Register) – Also called Simplex, it gathers in a single document the elements related to an export of value up to ten thousand dollars or its equivalent in other currencies.
Samples without commercial value – Goods represented by quantity, fragments or parts, strictly necessary to make known their nature, species and quality.
Starboard – Right side of the ship.
Stern – The back of the ship.
Semi trailer – Is the set formed by the monolithic body with a shaft and wheels. Is engaged in the truck or tractor for transportation, or shall be used as trailer, when engaged in a dolly. Is widely used in the transport of sugar cane.
SGP – It is a program of developed countries of tariff benefits of total or partial exemption from import duty on products purchased from developing countries.
Ship Broker – Acts as intermediary between shipowners or carriers by sea on the one hand and cargo interests on the other. The functions are to act as forwarding agent or custom broker, fixing of charters, and acting as chartering agent.
Shipper – The merchant (person) by whom, in whose name or on whose behalf a contract of carriage of goods has been concluded with a carrier or any party by whom, in whose name or on whose behalf the goods are actually delivered to the carrier in relation to the contract of carriage.
Sider – Type of truck body, that has retractable canvas on its side.
SIL – Logistics Information System that provides the information specifically required for logistics administration subsidy at all hierarchical levels.
Siscomex – Computerized and controlled by government agencies involved in foreign trade, which govern the activities of registration, monitoring and control of operations.
Surcharge – An additional charge added to the usual or customary freight.
Secondary zone – Includes the customs territory, excluding the primary zone, including territorial waters and airspace.
Tare – Difference between gross and net weights, representing the merchandise’s packaging, the weight of the empty container, or the weight of the empty vehicle.
TEC – Common External rate.
TEU – Twenty Foot Equivalent Unit. Method of measuring vessel load or capacity, in units of containers that are twenty feet long.
TKU – Ton per Kilometer.
TMS – Transportation Management Systems.
Transshipment – Unloading and reloading of the goods, during the course of the trip, always using the same means of transport. In the message SWIFT MT 700, it indicates if transhipment is prohibited or allowed.
Trick – Is a powered hang glider that comes equipped with wheels and / or floats and fiberglass seats.
Truck – Class of automotive vehicles of various sizes and designs for transporting goods.
Tugboat – Small steam used to tow vessels or maneuver them safely in port areas.
Tying – Setting loads on the vehicle or container, using different materials.
Temporary export – Products output for a given time, with suspension of payment of taxes, including export, conditional upon reimportation in the State in which they were exported.
Train – Vehicles which follow together to the same destination. Used primarily for security puposes; cars of ammunition and supplies that accompany military forces; train composition ( in Portugal).
Transport Knowledge – Document issued by the carrier, based on the data of the Invoice, which informs the value of the freight and accompanies the cargo. The recipient signs the receipt on one of the copies.
Temporary admission – Special customs that allows the importation of goods which are to remain in the country during a period of time, with total or partial suspension of import taxes.
Thermal Container – A container built with insulating walls, doors, floor and roof by which heat exchange with the environment is minimized thus limiting temperature variations of the cargo.
Waiver – Document issued by DMM (Merchant Navy Department), to that prescribed goods, that is to say, those imported with government benefits, may be transported in ship abroad in the absence of national flag ship.
WCS – Warehouse Control Systems
Wharfage -A charge assessed by a pier or dock owner against the cargo or a steamship company for use of the pier or dock.
WMS – Warehouse Management Systems.
Warehouse – A building specially designed for receipt, storage and handling of goods.
Unitization – Is to add several packages or smaller packages to a larger unit load.