Freight Glossary

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Ad Valorem
The method by which freight or custom duty may be calculated, based on the value of the goods as opposed to the weight or volume

Air Waybill
The air waybill is the documentary evidence of the contract of carriage between the shipper, carrier and consignee. It is different from a Bill of Lading in that it is not a document of title to the goods.

The international air transport association, for administrative purposes, divides the world into three IATA Traffic Conference Areas. These are referred to as Areas No 1 , 2 & 3 .
IATA area 1 comprises of the North and South American Continent and adjacent islands.
IATA area 2 comprises of all Europe , Iceland , Africa and Iran.
IATA area 3 comprises of all Asia and Australia and New Zealand.

Average Adjusters
In the case of General Average a specialist firm of Average Adjusters is appointer to assist with the intial problems and calculate the contribution due by each interest . Because the adjustment may take years before its issued , the Adjusters’ first task is to obtain security for general average contribution from cargo interests by obtaining the Merchant’s signature on an Average Bond ( the promise to pay ) backed up by either an Average Guarantee signed by a reputable Underwriter or by a cash deposit based on the contributing value estimated by the Average Adjuster.

Back Load
Load which enables a truck or vessel to return loaded to the place where the original load orginated.

Flat bottomed vessel used mainly in inland shipping on rivers and canals. Some are self propelled and others can be towed or pushed. Barges are often linked together and towed in line . Non propelled barges are known as dumb barges. On the Rhine it is permitted to operate a push tug unit with six dumb barges ( 3×2 abrest ) so that the maximum of 16,000 tonnes of cargo can be carried . Dumb barges are also cheap , temporary storage units.

Bi-Modal (Trailer)
Road Semi -trailer with retractable running gear mounted onto a rail bogey for rail transport. During rail transport the wheels of the trailer are lifted off.

Bill of Lading ( B/L )
Document issued by a carrier (shipowner or shipping line ) to the shipper of goods. It is a receipt for goods, evidence of the carriage contract, and a document of title to the goods.The latter feature is something akin to the relationship a cheque has to money. Without a bill of lading ( with the proper endorsement) no goods. The goods can be bought or sold merely by the passing of the B/L consigned “to order” providing that all the endorsements are in order.

Bill of Lading Straight
Under the Pomerene Act of 1916 ( United States) a Bill of Lading need not be surrendered for goods in the case of exports or interstate transactions if the Bill of Lading is consigned to the named party and marked “Non Negotiable”. Such a document is referred tp as a ” Straight Bill”.

Cabotage Authorisation
Cabotage ie point to point haulage with another EU member state is not permitted under a Community Authorisation. However special Cabotage Authorisations, each valid for two months, are available from the department.

Chargeable weight
In air freight the chargeable weight is the actual gross weight or volume weight whichever is higher apart from certain exceptions.

Combined Transport
Combined transport is the term used to describe the utilisation of different modes of carriage . it normally embraces Intermodal, Multimodal, Bi modal and road -on -rail methods of transportation. Carriage by more than one mode of transport against one contract of carriage. A true combined transport movment starts at the Shipper’s premises and ends at the Consignee’s premises ie House to House or Door to Door . Combined Transport services are operated by a CTO ( Combined Transport Operator).

Conditions of Trading
Conditions under which a company trades with customers. Normally in the Transport business conditions are printed on the reverse of Shippers Letters of Instruction and /or letter heading. Also referred to as ” Conditions ” they are printed on the reverse side of Airwaybills and Surface waybills and Bills of Lading.

Conference Rate
A rate for freight set by a Conference that is the subject to the standard terms and conditions of the particular liner conference.

Container – Aircraft
Aircraft carry containers somewhat similiar to the 20″ boxes carried of surface transport

Container Vessel
Ship specially designed to carry shipping containers . The vessel consists of cells into which containers are guided by uprights . Capacity of current new buildings are in excess of 5000TEUs

Carriage paid to ( named place of destination) means that the seller pays the freight for the carriage of the goods to the named destination. The buyer should note that all risks for loss or damage to the goods transferto him/her when goods are handed over into the custody of the carrier.

A document issued by a Combined Transport Operator (CTO ) that covers the multimodal transport on a door to door basis in one contract of carriage. It is issued by a Carrier who contracts as a principal with the Merchant to effect a combined Transport and as such is liable to the Merchant throughout the carriage from end to end.

Curtain Sider
Swap body or trailer with a sliding curtain along the length of the unit which allows free access from the sides with the curtains drawn back .

Customs Clearance Agents For all consignments coming into or leaving the state from countries outside the EU custom formalities have to be attended to on behalf of the importer or exporter as the case may be.

A freight forwarder or customs clearing agent ( who specialises in customs clearance only) may perform the task and raise an appropriate fee for carrying out the job . In some cases the agent also guarantees and advances the duties to Customs. Also referred to as Custom Brokers since free circulation of goods within Europe came into being on January 1st 93, many Customs Clearance Agents-especially at border points -were virtually out of business.

Delivered duty paid ( named place ) means that the seller fulfills his obligation to deliver when the goods have been made available at the named place in the country of importation. The seller has to bear the risks and costs incluing duties , taxes and other charges for delivering the goods to that point cleared for importation The seller has to bear the risks and costs includingduties, taxes and other charges for delivering the goods to that point cleared for importation. If the seller is unable directly or indirectly to obtain an import licence ( if required) the term should not be used.While the EXW term represents the minimum obligation for the seller DDP represents the maximum obligation.

Delivered duty unpaid ( named place of destination) means that the seller fulfills his obligation to deliver when the goods have been made available at the named place in the country of importation. The seller has to bear the costs and risks involved in bringing the goods to the point but excludes duties and taxes. The seller however has to bear the risks and costs of carrying out clearance through customs although the buyer has to pay any additional costs incurred by delays in clearance caused by him.

Charge raised for detaining container/trailer at Customer’s premises for longer period than provided for in Tariff

Amount of money payable for failing to load or discharge a vessel or aircraft in the time allowed in the charter party. In the case of containerised cargo it is also payable for delays to equipment such as containers caused by slow customs clearance for example

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Documentary Credit
The basis of international trade by means of which payment is made against surrender of specified documents . A letter addressed by a banker to an exporter ( usually but not always) undertaking to make payment to him against documents relating to the dispatch of goods . The documents usually required are bill of lading or airway bill , invoice and insurance document and if these are in order and shipment has been made in as specified in the credit , the bank will pay for the consignment in exchange for the documents. It is important that the details of the credit are in accordance with the contract of sale between the exporter and importer and letters of credit should be checked carefully when first received by the exporter to ensure that he can comply with its conditions. An international code of practise called the Uniform Customs and Practise for documentary credit.

Electronic Data Interchange – the transfer of structured data from one computer system to another computer system. The most efficient EDI links originating applications programmes to processing application.

Euro- Pallet
Size of pallet is 1200mm x 800mm . Height of pallet itself is approximately 185mm

Estimated time of arrival of vessel , flight , truck or train

Estimated time of departure

Member states of the European Union are Austria , Beligum, Denmark , France , Finland, Germany, Greece, Ireland, Italy, Luxembourg, The Netherlands, Portugal , Spain , Sweden and United Kingdom.

EURO: Value IR£= 0.787564

Export Credits Guarantee
Insurance on goods shipped against non-payment by reason of commercial and /or political risks as arranged.

Export Licence
A document issued by the government authorising export of restricted goods.

Ex Works
Ex Works ( named place ) means that the seller fulfills his obligation to deliver when he has made the goods available to the buyer at his premises. He is not responsible under this term for loading the goods on the vehicle provided by the buyer or for clearing the goods through customs for export, unless otherwise agreed.

System whereby freight is charged per container or unit , irrespective of the nature of the goods and not according to goods classification.

Free alongside ship ( named port of shipment) means that the seller fulfills his obligation to deliver when the goods have been placed alongside the vessel on the quay or in lighters at the named port of shipment. The buyer has to bear all costs and risks of loss or damage from the moment.

Free Carrier ( named place ) means that the seller fulfills his obligation to deliver when he has handed over the goods cleared for export in the charge of the carrier named by the buyer at the name place.

Free on board ( named port of shipment) means that the seller fulfills his obligation to deliver when the goods have passed over the ship’s rail at the named port of the shipment. The buyer bears all costs and the risk of loss or damage to goods from that point.

Forwarding Agent
Arranges the carriage of goods and the associated formalities on behalf of the shipper or the receiver. In some instances the Forwarding agent may be the operator of the service used eg Driver accompanied Trailer service from the originating country to destination country

The amount payable for the carriage of goods . The word is also used to describe the goods themselves.

Freight Forwarder
Arranges the carriage of goods and the associated formalities on behalf of the shipper or the receiver. In some instances the Freight Forwarder may be the operator of the service used eg Driver accompanied Trailer service from the originating country to destination country

House Waybill
The consolidator issues his own House Waybill (HWB) for each shipment and each customer receives a copy to identify his consignment. The House Way bills are forwarded with the consol in a sealed envelope attached to the Master Waybill accompanied by a manifest itemising all the shipments by House Waybill number for identification purposes at destination. Cargo identification labels will show both Air Waybill numbers.Incoterms
Incoterms porvides a set of international rules for the interpretation of the most commonly used trade terms in foreign trade. When drawing up a contract the buyer and seller can be sure of defining their repective responsibilities, by specifically referring to one of the ICC Inoterms . The International Chamber of Commerce first published a set of rules in 1936 and amendments and additions were later made in 53, 67 , 76, 80, and 90 which incorporatesthe rules now in force. The terms are grouped into four basicaly different categories; Group E – Departure , Group F main carriage unpaid Group C Main carriage paid Group D – Arrival. Incoterms relate only to trade terms used in the contract of sale and they do not deal with terms which may be used i nthe contract of carriage , although they may have similiar wordingsee(EXW, FCA, FAS, FOB, CFR, CIF,CIP )Incoterms 2000 is available from Chamber of Commerce , Clare Street , Dublin.

Institute of Logistics
The Insitute aims are to enhance the quality of professional management in logistics and to encourage a wider understanding of the concepts involved. It also provides a focal point for those working in the porfession and to indentify areas for reserch and development, encourage work within then and publish the results of this work. For further details write or phone to Strand House, Strand Street , Malahide Tel: 01 -8454640 Fax: 01-8454639

The International Road Transport Union founded in Geneva in 1956 is a Union of Associations, Groups and Undertakings active in the Road Transport Industry . It has more than 100 members in over 50 countries and is divided into three main sections:
1: Passenger Transport
2: Goods Transport
3: Own Accounts goods transport.
It is represented in Ireland by Lastas Eireann Teo

Loading meter
This is the term used to describe the space taken by freight utilising one meter’s length and the full internal width and height of a trailer.

Skeletal trailers
Trialer which does not have a platform but has twist locks and a frame capable of moving 40 and 20 ISO contianers by road.

Fabric covered trailer or swapbody. Essentially the tilt unit can be totally dismantled so as to allow access from all sides and the top if neccessary.

Pending completion of customs formalities for Import or Export goods may be held in a bonded warehouse until such time as any relevant taxes or duties are paid. A bond holder gives the authorities the assurance that they will accept responsibility for the duty on any consignment lost while under their control .Similiarly , certain goods are manufactured under government control and are kept in bond on the local market or export. Duties will be assessed on these goods before they can leave the bonded warehouse.

Weight or Measure
All transport modes convert space utilised by a consignment by different factors. Deadweight cargo by sea is cargo weighing one tonne and measuring one cubic meter(volume) or less. Road transport converts usually at 3 cubic meters per tonne and Airfreight allows 6 cubic meters of space per tonne. Freight charges in each case are then calculated on the basis of whatever will bring the carriers the greatest return.

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