Shipping & trade glossary.

Extra carrier charges for services outside the basic transport rate, such as pickup, delivery, loading, waiting or special handling.

In practiceAsk the quote to list accessorials separately so landed-cost estimates do not hide them.

A duty, tax or charge calculated as a percentage of the goods' declared value.

In practiceConfirm which customs value and additions the percentage applies to.

A non-negotiable air-cargo transport document and receipt issued by the airline or forwarder.

In practiceMatch shipper, consignee, routing, pieces, weight and handling instructions to the commercial file.

Broad cargo insurance for accidental physical loss or damage, subject to stated exclusions and conditions.

In practiceThe label is not literal; review exclusions, deductibles, valuation and war or strike cover.

A carrier or agent notice that cargo has arrived or is due to arrive and can enter the release process.

In practiceCheck free-time dates, release requirements, charges and delivery location immediately.

A bank undertaking to pay a beneficiary if the applicant fails to meet the covered obligation and the guarantee's conditions are met.

In practiceIdentify governing rules, expiry, claim conditions, amount and reduction mechanics.

The party entitled to receive payment or make a complying demand under a credit or guarantee.

In practiceThe beneficiary name must match the transaction and banking documents exactly.

A written order directing a named party to pay a stated amount at sight or on a future date.

In practiceConfirm drawee, tenor, currency, amount and endorsement requirements.

A carrier document that records receipt of cargo and the carriage terms; some forms also control delivery of the goods.

In practiceConfirm whether originals, surrender, sea waybill or electronic release is required before shipment.

Imported goods held under customs control before duties and taxes are paid or otherwise resolved.

In practiceTrack the bond movement, authorized location and deadline for entry, export or other disposition.

A customs-authorized facility where goods may be stored under bond without immediate payment of import duty.

In practiceConfirm permitted operations, storage limits and the customs procedure used for withdrawal.

A carrier or forwarder reservation for cargo space on a planned service.

In practiceRecord the booking number, cut-off, equipment, route, sailing or flight and confirmation status.

Cargo handled as individual pieces or units rather than loaded into a standard container or carried loose in bulk.

In practicePlan lifting points, packing, tally, weather protection and terminal handling for each unit.

Unpackaged dry or liquid commodity carried loose in a vessel, tank or other bulk transport system.

In practiceSpecify grade, contamination controls, measurement method and loading or discharge rate.

A freight surcharge used to reflect changes in marine fuel cost.

In practiceConfirm whether it is included in the base rate and how long the quote remains valid.

A customs document that can support temporary admission of eligible goods without normal import duties, subject to its conditions.

In practiceTrack countries, validity, endorsements and re-export proof; it is not a general permanent-import document.

The seller pays carriage and specified insurance to the named destination, while risk transfers when goods are handed to the first carrier.

In practiceSuitable for any mode; distinguish the risk-transfer point from the paid destination.

The seller pays carriage to the named destination, while risk transfers when goods are handed to the first carrier.

In practiceSuitable for any mode; the seller does not have to provide cargo insurance.

The party that undertakes the transport of goods by sea, air, road, rail or a combination of modes.

In practiceDistinguish the actual carrier from the contractual carrier, forwarder or broker.

A documentary payment arrangement in which the buyer receives specified documents against payment.

In practiceState the presenting channel, exact document set and whether payment is at sight.

Payment received by the seller before shipment or another agreed performance milestone.

In practiceDefine the percentage, due date, refund conditions and evidence required before release.

A certificate stating that goods meet specified standards, technical rules or contract requirements.

In practiceIdentify the required issuing body, standard, country program and product scope before shipment.

A document certifying the country in which the goods originate under the applicable origin rules.

In practiceConfirm whether a preferential, non-preferential, chamber-issued or other prescribed form is required.

The weight used to calculate freight, commonly the greater of actual gross weight and dimensional or volumetric weight.

In practiceRecord the carrier's divisor and rounding method with the quote.

A bill of lading carrying a notation that cargo or packaging appeared damaged, short or otherwise defective when received.

In practiceEscalate immediately because the clause may affect payment under a letter of credit and any later cargo claim.

A bill of lading issued without a notation of apparent cargo or packing damage or defect.

In practiceA clean notation does not prove hidden condition or full contract conformity.

The seller's invoice describing the sale, parties, goods, values, currency and commercial terms for payment and customs use.

In practiceReconcile it to the contract, packing list, license data, origin and transport documents.

Damage or shortage discovered after delivery that was not apparent from the external package condition.

In practicePreserve packaging and evidence, notify the carrier and insurer promptly, and follow the applicable claim deadline.

The party named to receive the goods at destination under the transport document.

In practiceThe consignee is not automatically the buyer, importer of record or end user.

The party that tenders or sends goods for carriage, often shown as the shipper.

In practiceConfirm whether the consignor is the seller, exporter or a third-party warehouse.

Combining multiple smaller shipments into one larger movement for transport.

In practiceTrack the consolidator, master and house documents, deconsolidation point and added lead time.

A facility where less-than-container cargo is received, consolidated, stripped or released.

In practiceConfirm CFS receiving cut-off, handling charges and release hours.

A terminal area used to receive, hold and deliver full containers.

In practiceCY/CY usually indicates full-container handling at both ends, but confirm the carrier's tariff wording.

For sea or inland-waterway shipments, the seller pays carriage to the named destination port, while risk transfers when goods are on board at shipment.

In practiceFreight is in the quoted price, but cargo insurance is not required from the seller under CFR.

For sea or inland-waterway shipments, the seller pays carriage and specified insurance to the named destination port, while risk transfers on board at shipment.

In practiceFreight and minimum required insurance are in the price; verify policy scope, beneficiary and claim route.

An authorized intermediary that prepares and submits customs entries and supports clearance on behalf of the responsible party.

In practiceThe broker does not replace the importer's responsibility for accurate classification, value and admissibility.

The process of declaring goods, meeting import or export controls, paying or securing charges and obtaining release from customs.

In practiceClearance is a milestone, not merely a document; record authority, entry number, status and release evidence.

A formal submission to customs stating the goods, parties, classification, value, origin and requested procedure.

In practiceReconcile the declaration to the commercial documents and retain acceptance or release evidence.

A government charge imposed on imported or exported goods under the applicable tariff and customs rules.

In practiceCalculate only after confirming classification, origin, value, preference and special measures.

The value determined under customs valuation rules for assessment of duty and related import charges.

In practiceIt may differ from invoice price; review assists, royalties, freight, insurance and related-party rules.

The latest time cargo, documents or verified weight may be accepted for a planned departure.

In practiceTrack separate terminal, documentation, dangerous-goods and VGM cut-offs when applicable.

Articles or substances regulated for transport because they can present health, safety, property or environmental hazards.

In practiceDo not classify from a trade name alone; require the governing classification, UN number, proper shipping name, class, packing group and approvals.

A signed transport document declaring regulated dangerous goods and the required classification and package details.

In practiceUse the mode-specific form and verify it against the SDS, approvals, marks, labels and package count.

The seller delivers at the named destination, ready for unloading, while the buyer handles import clearance and unloading.

In practiceName the exact delivery point and confirm who bears destination terminal and waiting charges.

The seller delivers after unloading the goods at the named destination; the buyer handles import clearance.

In practiceDPU is the only Incoterms 2020 rule that requires the seller to unload at destination; confirm equipment and site capability.

The seller delivers at the named destination, cleared for import and ready for unloading, bearing the broadest seller obligations among Incoterms 2020 rules.

In practiceConfirm the seller can legally act as importer and pay local duties and taxes before agreeing DDP.

An instruction authorizing a terminal, warehouse or carrier to release cargo to a named party.

In practiceConfirm document release, customs release, charges and identity requirements are all satisfied.

A time-based charge for keeping carrier equipment or cargo at a terminal beyond the allowed free period.

In practiceCarrier tariffs vary; distinguish terminal demurrage from equipment detention and record free-time start and stop events.

Checking transaction parties against government restriction and debarment lists before proceeding.

In practiceScreen all relevant parties, beneficial owners, banks, vessels and end users; retain dated results and resolve matches.

A time-based charge for retaining carrier equipment outside the terminal beyond the allowed free period.

In practiceTrack gate-out, empty return, free days, calendar rules and disputed events.

A calculated weight based on package volume, used when cargo occupies more space than its actual weight suggests.

In practiceUse the carrier's current divisor, units and rounding rule.

Banks transmit commercial or financial documents for payment or acceptance without giving the payment undertaking of a letter of credit.

In practiceSpecify D/P or D/A instructions, protest rules, charges and what happens if the buyer refuses documents.

A documentary collection in which documents are released after the buyer accepts a time draft for future payment.

In practiceThe seller retains buyer credit risk after documents are released.

A documentary collection in which documents are released to the buyer against payment.

In practiceConfirm whether payment must be immediate and how unclaimed goods will be handled.

A refund or remission mechanism for eligible duties paid on goods later exported, destroyed or used in qualifying production.

In practicePreserve import, inventory, manufacturing and export linkage required by the applicable program.

A government prohibition or severe restriction on trade with a country, territory, party, sector or class of goods.

In practiceCheck current jurisdiction-specific rules, licenses and indirect routing before any commitment or movement.

The current forecast time for arrival at a stated point.

In practiceAlways state the location and last update time; ETA is not a delivery guarantee.

The current forecast time for departure from a stated point.

In practiceKeep planned and actual departure separate and record schedule changes.

The seller makes goods available at the named place, not loaded on the collecting vehicle and generally not cleared for export.

In practiceUse cautiously for exports when the buyer cannot practically complete origin-country export formalities.

A five-character classification identifying an item on the U.S. Commerce Control List and the controls that may apply.

In practiceKeep the classification rationale and current source; an HTS code is not an ECCN.

A government authorization permitting a defined export, reexport or transfer subject to stated scope and conditions.

In practiceTrack authorization number, parties, items, quantity or value, destination, provisos and expiry.

The party identified as legally responsible for the export filing and compliance obligations in the relevant jurisdiction.

In practiceDo not infer EOR from who invoices, packs or books freight; assign it explicitly.

A container platform with end structures and no full side walls or roof, used for oversized or heavy cargo.

In practiceConfirm out-of-gauge dimensions, lashing plan, lifting points, weather protection and carrier approval.

A contract concept addressing specified extraordinary events beyond a party's reasonable control that prevent or delay performance.

In practiceIts effect depends on the contract wording, notice, causation and mitigation; an Incoterm does not create a force-majeure clause.

A designated area operating under special customs procedures where eligible goods may be admitted, stored or processed before formal entry.

In practiceConfirm jurisdiction-specific status, permitted activity, recordkeeping and entry consequences.

For sea or inland-waterway transport, the seller delivers when goods are placed alongside the buyer-nominated vessel at the named shipment port.

In practiceThe buyer handles loading and main carriage; name the port and exact alongside point.

The seller delivers goods, cleared for export, to the buyer's nominated carrier at the named place.

In practiceName the precise delivery point because loading responsibility and risk transfer depend on the location.

For sea or inland-waterway transport, the seller delivers when goods are on board the buyer-nominated vessel at the named shipment port.

In practiceDo not use FOB merely to mean origin pricing; state the named port and Incoterms edition.

A freight billing instruction under which the transport charge is payable at destination or by the named receiving party.

In practiceIt describes carrier billing, not necessarily the buyer-seller cost allocation under the sales contract.

A reusable transport unit designed to move cargo between modes without unloading the individual packages.

In practiceRecord type, size, owner, number, seal, tare, payload and condition.

An intermediary that arranges transport and related logistics services for a shipper or consignee.

In practiceConfirm whether it acts as agent, contracting carrier, NVOCC, customs broker or several roles.

A freight billing instruction indicating the transport charge is paid or payable at origin by the named party.

In practicePrepaid does not prove the freight amount is included in the seller's invoice price.

A carrier or forwarder offer stating transport rates, surcharges, service scope, routing and validity.

In practiceNormalize inclusions, exclusions, charge basis, free time, transit, equipment and validity before comparing quotes.

A shipment using a container as one transport unit, generally under one shipper's control whether or not physically full.

In practiceConfirm container type, stuffing location, seal control, maximum payload and CY cut-offs.

The total weight of goods and their packaging; for a loaded container, usage may also include the container tare depending on context.

In practiceLabel the basis clearly: shipment gross, package gross or verified container gross mass.

The international commodity-classification framework on which national tariff and trade-statistics codes are based.

In practiceRecord the full country-specific code and classification rationale; a short HS heading may be insufficient for entry.

A national tariff schedule that extends Harmonized System headings for customs classification and duty treatment.

In practiceUse the importing country's current schedule; do not assume one country's code is valid in another.

Inland transport of cargo, commonly by road between a facility and a port, terminal or rail ramp.

In practiceSpecify carrier haulage or merchant haulage, equipment responsibility, waiting and accessorials.

A container with additional height compared with a standard container, providing more internal volume.

In practiceConfirm exact internal dimensions, door opening, payload and route clearance.

A government authorization required to import specified goods under stated conditions.

In practiceConfirm consignee or importer eligibility, quantity, value, product, country, validity and use before shipment.

The party legally responsible for the import entry and associated customs, admissibility and recordkeeping obligations.

In practiceAssign IOR explicitly before agreeing DDP or arranging clearance; the consignee is not automatically the IOR.

Movement or storage of goods under customs control before final clearance and payment of applicable duties.

In practiceTrack the bond, authorized route, carrier, destination customs office and closure evidence.

ICC rules that allocate selected delivery tasks, costs and risks between seller and buyer under a sales contract.

In practiceState the three-letter rule, exact named place or port and edition; Incoterms do not by themselves set price, payment or title transfer.

A document reporting or certifying that specified goods were inspected against stated criteria.

In practiceDefine inspector, place, timing, method, acceptance criteria and required wording before inspection.

Evidence that cargo insurance has been arranged for a shipment under the stated policy and conditions.

In practiceCheck insured value, currency, voyage, risks, deductible, claims agent, endorsement and beneficiary requirements.

Transport using two or more modes while the cargo remains in the same loading unit for mode changes.

In practiceRecord each handoff, responsible carrier, terminal, seal event and through-document coverage.

The international code governing classification, packing, marking, documentation, stowage and segregation of dangerous goods carried by sea.

In practiceUse the amendment in force for the voyage and verify carrier and port acceptance in addition to code compliance.

The U.S. regulations controlling defense articles, defense services and related technical data under the Arms Export Control Act.

In practiceConfirm jurisdiction, USML category, registration, authorization, parties, end use, provisos and retransfer restrictions.

The total cost of acquiring goods and bringing them to the chosen destination, including applicable transport, insurance, duties, taxes and handling.

In practiceDefine the endpoint and included cost categories before comparing projects or suppliers.

A shipment sharing container capacity with other cargo and normally handled through consolidation facilities.

In practiceInclude CFS handling, consolidation, deconsolidation, minimum charges and added lead time.

A bank undertaking to honor a complying presentation of documents under the credit's terms and governing rules.

In practiceReview feasibility before shipment: expiry, presentation period, latest shipment, documents, tolerances, banks and confirmation.

Insurance covering cargo against specified transit risks during ocean and often connected inland movement.

In practiceMatch insured voyage, value, goods, packaging, conveyance, clauses, exclusions and claims process to the shipment.

The weight of the goods excluding packaging, pallets, containers and other transport materials.

In practiceState the unit and whether moisture, propellant, accessories or other components are included.

An ocean-transport intermediary that issues its own bill of lading and contracts with a vessel-operating carrier for space.

In practiceTreat the NVOCC as a contractual carrier for its house bill and identify the underlying ocean carrier.

The party the carrier should contact about cargo arrival or release, as named on the transport document.

In practiceIt may be different from the consignee, importer, customs broker or ultimate receiver.

A transport-document notation that goods were loaded on the named vessel on the stated date.

In practiceThe on-board date can drive Incoterm evidence, insurance attachment and letter-of-credit compliance.

A sale in which the seller ships and invoices before receiving payment, with payment due on agreed credit terms.

In practiceSet credit limit, due date, currency, late-payment terms and risk mitigation before shipment.

A container with a removable roof covering for cargo that must be loaded from above or exceeds standard door height.

In practiceConfirm over-height dimensions, cover, lashing, weather exposure and carrier approval.

A negotiable bill of lading made to order, allowing rights to delivery to be transferred by proper endorsement and possession.

In practiceControl originals, endorsement wording, bank instructions and release method carefully.

A detailed list of packages and contents, commonly showing marks, dimensions, gross and net weights and packing method.

In practiceReconcile package count, marks and weights to the invoice, transport document and physical cargo.

A platform that groups packages into a unit suitable for forklift handling and transport.

In practiceRecord footprint, height, gross weight, stackability, treatment marks and load restraint.

The agreed timing, method, currency and conditions for payment under the sale.

In practiceKeep payment terms separate from Incoterms; one governs money and the other delivery tasks, costs and risk.

The agreed point where delivery occurs for the relevant contract or transport document.

In practiceUse a precise facility, terminal, port or address; delivery may be different from final destination.

The place where the carrier first takes charge of goods under the transport contract.

In practiceIt may be inland and earlier than the port of loading; confirm through-carriage coverage.

Charges assessed for port, terminal, vessel or cargo services associated with a call or shipment.

In practiceRequest an itemized list and identify payer, currency, tax and whether each charge is origin or destination.

The port where cargo is unloaded from the main ocean vessel.

In practicePOD can also mean proof of delivery in other contexts; label the meaning in the record.

The port where cargo is loaded onto the main ocean vessel.

In practiceDo not confuse it with inland place of receipt or a feeder port.

A preliminary commercial document stating proposed goods, value and terms before the final invoice or shipment.

In practiceMark its purpose and revision clearly; customs, licensing and banking use may require specific data.

Large, heavy, high-value or complex cargo moved for a specific project and requiring tailored logistics planning.

In practiceDevelop an engineered route, lifting plan, permits, surveys, method statement and contingency plan.

A buyer-issued order stating the goods, quantities, prices, delivery and other purchasing requirements.

In practiceResolve conflicts among the PO, quotation, contract and seller acknowledgment before performance.

A refrigerated container designed to maintain a controlled temperature during transport.

In practiceSpecify set point, tolerances, ventilation, humidity, pre-trip inspection, power and monitoring.

Transport in which wheeled cargo is driven or towed on and off a vessel using ramps.

In practiceConfirm operability, dimensions, fuel, batteries, keys, lashing points and non-running handling.

A legal restriction or prohibition targeting countries, regions, sectors, activities, property or designated parties.

In practiceScreen ownership and control as well as names, and assess goods, services, banks, vessels, routes and end use.

A non-negotiable ocean transport document under which delivery normally does not require presentation of an original negotiable bill.

In practiceUse only when documentary title control is unnecessary and the consignee relationship is trusted.

The party named on the transport document as tendering the goods for carriage.

In practiceThe shipper may differ from the seller, exporter of record or physical loading facility.

Identifiers and handling information placed on packages so cargo can be matched, routed and handled correctly.

In practiceMatch marks and numbers across packages, packing list, invoice and transport documents.

A non-negotiable bill of lading naming a specific consignee for delivery.

In practiceConfirm carrier release rules and whether an original must still be presented in the relevant jurisdiction.

Removing cargo from a container or other transport unit.

In practiceRecord seal break, tally, condition, discrepancies, personnel and location.

Loading and securing cargo inside a container or other transport unit.

In practiceDocument inspection, weight distribution, blocking, bracing, segregation, photos and seal application.

An additional charge applied on top of a base freight or service rate for a stated cost or condition.

In practiceCapture name, basis, amount, payer, validity and whether it is included in the quoted total.

A secure financial messaging network used by banks to exchange standardized payment and trade-finance messages.

In practiceA SWIFT message is communication evidence; confirm the underlying bank obligation and authenticated message type.

The weight of an empty container, package or transport unit before cargo is added.

In practiceUse the equipment marking or verified record and keep tare separate from payload and gross mass.

A terminal-related charge for handling a container or cargo at origin or destination.

In practiceIdentify origin THC versus destination THC and whether the Incoterm price or freight quote includes it.

The contract provisions covering price, delivery, payment, risk, title and other conditions of the sale.

In practiceAn Incoterm is only one part of the terms of sale and should not be used as a substitute for the contract.

An outside company providing one or more logistics functions such as transport, warehousing, fulfillment or coordination.

In practiceDefine whether the 3PL acts as agent, carrier, warehouse, broker or customs representative for each service.

A bill of lading covering carriage across more than one leg or mode from the stated receipt point to final delivery point.

In practiceConfirm which carrier is responsible for each leg and whether subcontracted inland carriage is covered.

Monitoring shipment location, events and status across the transport chain.

In practiceKeep source, event time, location and confidence; a carrier estimate is not an actual milestone.

The elapsed time between defined origin and destination milestones for a transport movement.

In practiceSpecify whether the quote is port-to-port, airport-to-airport or door-to-door and whether it is guaranteed.

Transfer of cargo from one vessel, aircraft or vehicle to another during the route to destination.

In practiceCheck contract, license, sanctions, letter-of-credit and insurance restrictions on intermediate points and carriers.

A standard capacity measure equal to one nominal twenty-foot container.

In practiceUse for capacity reporting; it does not state actual weight, volume or equipment condition.

A four-digit United Nations identifier assigned to a dangerous substance, article or hazard grouping for transport.

In practiceUse it with the proper shipping name, class or division, subsidiary risk, packing group and mode-specific requirements.

ICC rules commonly incorporated into documentary credits to govern bank handling and document examination.

In practiceThe credit must state that it is subject to UCP 600; its express terms still control the required presentation.

The list of defense articles, services and related technical data controlled under the ITAR.

In practiceRecord the category, paragraph and jurisdiction basis; commercial description alone is not a classification.

The verified total mass of a packed container declared under SOLAS before vessel loading.

In practiceRecord weighing method, authorized submitter, container number, cut-off and carrier acceptance.

Loss exposure arising from warlike events and related perils that are commonly excluded or separately insured under cargo policies.

In practiceCheck territorial limits, cancellation provisions, strikes cover, sanctions and voyage changes.

A warehouse-issued record acknowledging receipt and describing goods held in storage.

In practiceVerify negotiability, location, quantity, condition, liens, release authority and insurance.