Krystal Logistics Company Global Logistics Terms Glossary

Transcription

1 A Krystal Logistics Co. Terms Glossary A.P. Additional Premium A.R. All Risk Abandonment Giving up the proprietary rights in insured property to the underwriter in exchange for payment of a constructive total loss. Notice of Abandonment Waiver Clause Absorption Acceptance by the carrier of a portion of a joint rate or charge which is less than the amount which it would receive for the service in the absence of such joint rate or charge (air cargo). Accept Agreement to pay at some future date a time draft drawn on the accepting party. Acceptance of Goods Process of receiving a consignment from a shipper, usually against the issue of a receipt. As from this moment and at this place the carrier s responsibility for the consignment begins. Acknowledgement of Receipt Notification relating to the receipt of, for example, goods, messages and documents. ACP90 Air Cargo Process. Computer system used at UK airports as an intermediary between airlines, airports authorities, agents and customs declarations. Act of God Natural event, such as floods, storms, lightning, earthquakes, etc., not preventable by human agency. Forces of nature that a carrier has no control over, and therefore cannot be held accountable for. Synonym: Force Majeure Actual Total Loss This occurs when: 1. The insured property is completely destroyed; or 2. The insured is irretrievably deprived of the insured property; or 3. Cargo changes in character so that it is no longer the thing that was insured (e.g., cement becomes concrete) or 4. A ship is posted missing at Lloyd s, in which case both the ship and its cargo are deemed to be an actual total loss. Notice of Abandonment Actual Voyage Number Code for identification purposes of the voyage of a vessel. Ad Valorem Mode of freight or customs duties levied on cargo based on its value. Ad Valorem Duty

2 Ad Valorem Bill of Lading Same as Valued Bill of Lading. Krystal Logistics Company Ad Valorem Duty Tax imposed on merchandise based on its value. Added Value Value attributed to products, and services as the result of a particular process (e.g. production process, storage, transport). ADR Articles Dangereux de Route Advance Down payment on account of final invoice amount. Advance against Documents Down payment in exchange for original shipping documents. Advance Freight Same as Prepaid Freight. Advanced Interline Interline carrier that picks up cargo from the shipper and delivers it to another carrier for shipment to the consignee. Adventure Exposure of property to risk. General Average Act (York-Antwerp Rules) Advice Note Written shipment information, for example, about the status of the goods. Advice of Fate Notice given by the collecting bank to the remitting bank as to payment, acceptance, non-payment, or non-acceptance of a draft presented at the remitting bank s request. Advising Bank Bank that handles Letters of Credit (L/C) for a foreign bank by notifying the seller that the buyer has opened a L/C in their favor. The advising bank fully informs the seller of the conditions of the Letter of Credit. Confirmed Letter of Credit Advisory Capacity Term indicating that agent or representative is not empowered to make definitive decisions or adjustments without approval of the group or individual represented. Without Reserve Aeroquip System Special accessories in a container consisting of, among other things, the attachment rails on the inside walls to provide facilities for lashing and securing of the cargo. Affreightment Contract which sets forth the obligations of both shipper and carrier concerning transportation of the merchandise. The most common forms of affreightment are Bills of Lading and Waybills.

3 Aft At, near or towards the stern or rear of a vessel or an aircraft. Agency Fee Fee payable by shipowner or ship operator to port agent. Krystal Logistics Company Agent A company (or person) which does business on behalf of another company based on a contractual agreement. Aggregate Inventory Inventory for any group of items or products, involving multiple stock-keeping units. Synonym: Aggregate Stock Air Commuter Airline operating regional passenger traffic. Air Consignment Note Air Waybill Air Waybill Abbreviation: AWB. Document used for carriage by air, evidencing the conclusion of a contract of carriage. This is a non-negotiable document of air transport that serves as a receipt for the shipper, indicating that the carrier has accepted the goods listed and obligates itself to carry the consignment to the airport of destination according to specified conditions. Consignment Note Bill of Lading Through Bill of Lading All Risk Abbreviation: A.R. Broadest form of insurance cover available, providing protection against all risks of physical loss or damage from any external cause. Does not cover loss or damage due to delay, inherent vice, pre-shipment condition, inadequate packaging or loss of market. ICC Named Perils Policy Allotment Share of the capacity of a means of transport assigned to a certain party, e.g. a carrier or an agent, for the purpose of booking cargo for a specific voyage. Reservation Alongside Phrase referring to the side of a ship. Goods to be delivered alongside are to be placed on the dock or barge within reach of the transport ship s tackle so that they can be loaded aboard the ship. Free Alongside Ship (FAS) Annual Policy Designed for clients with a small turnover of Goods in Transit. A deposit premium is paid and this is adjusted at the end of the year based on declarations made. Apparel 1. A vessel s outfit, such as rigging, anchor and life boats. 2. The term used in distribution/transport of clothing for a single piece of clothing a garment. Approved Continuous Examination Program Abbreviation: ACEP. Agreement between the owners of the equipment and the responsible government body to allow continuous examination of the equipment (e.g. containers).

4 Approved Vessel Vessel which the underwriters deem adequate to carry the insured cargo, at the agreed rate of premium. Where the vessel is not approved, the risk is still covered but is subject to a reasonable additional premium. Apron Platform Arbitrage Buying of foreign exchange, securities, or commodities in one market and the simultaneous selling in another market. By this manipulation a profit is made because of the difference in the rates of exchange or in the prices of securities or commodities involved. Area Code Code specifying an area. Zone Improvement Plan (ZIP) Arrival Notice Notice sent by a carrier or freight forwarder to notify party advising the arrival of a shipment. Articles Dangereux de Route Abbreviation: ADR. European agreement concerning the international carriage of dangerous goods by road. Assembly Stage of production in which components are put together into an end product. Assignment Transfer of the rights, duties, responsibilities and/or benefits of an agreement, contract, or financial instrument to a third party. Assignment of Proceeds Stipulation within a Letter of Credit in which some or all of the proceeds are assigned from the original beneficiary to one or more additional beneficiaries. Assured Party Party that has legal title to the cargo and to whom a claim payment will be paid. Astern 1. Behind a vessel or an aircraft. 2. Backward; in a reverse direction. Athwartships Across the vessel, i.e., from one side to the other. Fore and Aft Stowage Audit Methodical examination and review of a situation or condition (as within a business enterprise) concluding with a detailed report of findings. Authentication Proof by means of a signature or otherwise that a certain document or certain data is of undisputed origin and is genuine. Authorization Commission to a certain person or body to act on behalf of another person or body. Auto Container Container equipped for the transportation of vehicles.

5 Automated Guided Vehicle System Unmanned vehicles equipped with automatic guidance equipment which follow a prescribed path. Automatic Indentification Means of identifying an item (e.g. a product, parcel or transport unit) by a device entering the data automatically into a computer. The most widely used technology at present is bar code; others include radio frequency, magnetic stripes and optical character recognition. Average Any loss or damage due to insured perils that is less than a total loss. Two types of average occur: Particular Average and General Average. Particular Average General Average Average Adjusters Average Adjusters In general average adjusters are entrusted with the task of apportioning the loss and expenditure over the parties interested in the maritime venture. They also determine which expenses are to be regarded as average or general average. Average Clause Clause in marine policy which sets out the cover provided in the event of partial loss. Average Irrespective of Percentage Indicates that partial losses will be paid regardless of any franchise or percentage. AWB Air Waybill Krystal Logistics Co. Terms Glossary B B.D.I. Both Days Inclusive. B/L Bill of Lading Back Letter 1. Back letters are drawn up in addition to a contract in order to lay down rights and/or obligations between both contracting parties, which, for various possible reasons, cannot be included in the original contract. 2. This expression is sometimes used for letters of indemnity. Back Order Customer order or commitment, which is unfilled due to insufficient stock. Backlog 1. The quantity of goods still to be delivered, received, produced, issued, etc., for which the planned or agreed date has expired. 2. The total number of customer orders which have been received but not yet been shipped. Synonym: Open Order BAF Bunker Adjustment Factor

6 Balance of Trade Difference between a country s total imports and exports. If exports exceed imports, a favorable balance of trade exists; if not, a trade deficit is said to exist. Balespace The capacity of cargo spaces under the deck of a vessel (including hatchways but excluding void spaces behind cargo battens and beams) expressed in cubic meters or cubic feet. Ballast Materials carried to improve the trim and the stability of the vessel. Vessels usually carry water in tanks as ballast. The tanks are specially designed for this purpose. Bank Draft Check issued by a bank. Bank Guarantee Undertaking by a bank to effect payment of a sum of money in the event of non performance by the party on whose behalf the guarantee is issued. Bank Release Negotiable time draft drawn on and accepted by a bank that adds its credit to that of an importer of merchandise. Banker s Acceptance Time draft drawn on a bank and bearing the bank s promise to pay at a future date. Banking System For marine purposes the practice of always keeping more than one piece of cargo on the quay or in the vessel ready for loading or discharging in order to avoid delays and to obtain optimal use of the loading gear. Bar Coding Method of encoding data for fast and accurate electronic readability. Bar codes are a series of alternating bars and spaces printed or stamped on products, labels, or other media, representing encoded information which can be read by electronic readers, used to facilitate timely and accurate input of data to a computer system. Bareboat Charter Charter whereby the charterer leases the bare ship and appoints the master and crew itself. Barge Flat-bottomed cargo transport vessel designed for canals, rivers and shallow waters with or without its own propulsion. Synonym: Lighter Barratry Unlawful act or fraudulent breach of duty on the part of a master of a ship or of the mariners resulting in the injury of the owner of the ship or cargo. Barter Trade in which merchandise is exchanged directly for other merchandise without use of money. Countertrade Basic Stock Items of an inventory intended for issue against demand during the re-supply lead time. Lead Time

7 Batch Collection of products or data which is treated as one entity with respect to certain operations (e.g. processing and production). Batch Production Production process where products/components are produced in batches and where each separate batch consists of a number of the same products/components. Bay Vertical division of a container vessel from stem to stern, used to indicate stowage places for containers. The numbers run from stem to stern; odd numbers indicate a 20-foot position, even numbers indicate a 40-foot position. Cell Position Grid Number Bay Plan Stowage plan which shows the locations of all the containers on the vessel. BC Code Bulk Cargo Code Segregation Belly Under-floor area of an aircraft. Hold Space Benchmarking Measurement and comparison against a standard, of efforts and results in the business process (e.g. input, output, reliability, quality and customer satisfaction). Beneficiary Entity or person on whom a Letter of Credit has been opened or a draft has been drawn. Assignment of Proceeds Transferable Letter of Credit Benefit of Insurance Clause Clause by which the bailee of goods claims the benefit of any insurance policy effected by the cargo owner on the goods in care of the bailee. Such a clause in a contract of carriage issued in accordance with the Carriage of Goods by Sea Act is void at law. Berth Location in a port where a vessel can be moored, often indicated by a code or name. Wharf Quay Pier Bilateral Trade Commerce between two countries, usually in accordance with specific agreements. Bilateral Transport Agreement Agreement between two nations concerning transport relations. Bill of Exchange Draft Bill of Lading Abbreviation: B/L. Document that establishes the terms of a contract between a shipper and a transportation company under which freight is to be moved between specified points for a specified charge. Usually prepared by the shipper on forms issued by the carrier, it serves as a document of title, a contract of carriage, and a receipt for goods. Air Waybill Ocean Bill of Lading Through Bill of Lading

8 Bill of Lading Clause Particular article, stipulation or single provision in a Bill of Lading. Krystal Logistics Company Bill of Material List of all parts, sub-assemblies and raw materials that constitute a particular assembly, showing the quantity of each required item. Bimodal Trailer 1. Road semi-trailer with retractable running gear to allow mounting on a pair of rail boogies. Synonym: Road-Rail Trailer 2. Trailer which is able to carry different types of standardized unit loads (e.g. a chassis which is appropriate for the carriage of one FEU or two TEUs). Block Train Complete train moving straight from origin station to destination station without marshalling or decoupling of wagons. Double Stack Train Boatman Member of the vessel s crew. Bollard Post, fixed on a quay to lash mooring ropes. Bolster Container Bolster Bona Fide In good faith; without dishonesty, fraud or deceit. Bonded Shipments Shipments which are permitted to travel to inland destinations before customs clearance. Bonded Transit Warehouse Warehouse under customs control holding cargo in transit to further destination. Bonded Warehouse Warehouse authorized by customs authorities for storage of uncleared goods. In Bond Booking Space reservation, conclusion of contract of carriage. Synonym for Air Cargo: Reservation Allotment Booking Reference Number Number assigned to a certain booking by the carrier or its agent. Bordereau Waybill Bottom Fittings Special conical-shaped devices to avoid the container moving during the voyage. Bottom Lift Handling of containers with equipment attached to the four bottom corner fittings (castings).

9 Bottom Limit Maximum value at risk per shipment/sending/aircraft. Krystal Logistics Company Box Pallet Pallet with at least three fixed, removable or collapsible, vertical sides. Break Bulk 1. Physical discharge of unitized cargo. 2. Administration procedure of document splitting at destination. Break Bulk Cargo General cargo conventionally stowed as opposed to unitized, containerized and Roll-on/Roll-off cargo. Synonym: Conventional Cargo Break-Even Weight Weight at which it is cheaper to charge the lower rate for the next higher weight-break multiplied by the minimum weight indicated, than to charge the higher rate for the actual weight of the shipment (air cargo). Broken Stowage Cargo space that is unavoidably lost when stowing cargo. The percentage of wasted space depends upon the kind of cargo, the packing and the used spaces. Broker Person who acts as an agent or intermediary in negotiating contracts. Brussels Tariff Nomenclature Abbreviation: BTN. Old Customs Cooperation Council Nomenclature for the classification of goods. Now replaced by the Harmonized System. Harmonized System (HS) BSI British Standards Institution. BTN Brussels Tariff Nomenclature Buffer Stock Quantity of goods or articles kept in store to safeguard against unforeseen shortages or demands. Bulk Cargo Unpacked cargo loaded directly into the vessel s holds. Examples of commodities that can be shipped in bulk are ores, coal, scrap iron, grain, rice, vegetable oil, tallow, fuel oil, fertilizers and similar commodities. Bulk Cargo Code Abbreviation: BC Code. Safe working practice code for solid bulk cargo. Bulk Carrier Single-deck vessel designed to carry homogeneous unpacked dry cargo such as grain, iron ore and coal. Bulk Container Container designed for the carriage of free-flowing dry cargo, which are loaded through hatchways in the roof of the container and discharged through hatchways at one end of the container. Bulk Shipments Bulk Cargo

10 Bulk Unitization Charge Charge which applies to consignments carried from airport of departure to airport of arrival, entirely in Unit Load Devices (air cargo). Bulkhead 1. Upright partition dividing compartments on board a vessel. 2. A vertically mounted board to provide front wall protection against shifting cargo and commonly seen on platform trailers (road cargo). 3. Partition in a container, providing a plenum chamber and/or air passage for either return or supply air. 4. Vertically mounted wall separating the fore respectively aft compartment from the rest of the aircraft (air cargo). Bull Rings Rings for lashing the cargo in containers. Bunker Spaces on board a vessel to store fuel. Synonym: Tank Bunker Adjustment Factor Abbreviation: BAF. Adjustment applied by shipping lines or liner conferences to offset the effect of fluctuations in the cost of bunkers. Bureau veritas French classification society Krystal Logistics Co. Terms Glossary C C&F Additional abbreviation for CFR, Cost and Freight Incoterms C.N. Cover Note C.O.G.S.A. Carriage of Goods by Sea Act C.P. Charter Party C.R.O. Canceling (of policy) Returns Only C.T.L. Constructive Total Loss C/D Country Damage

11 Cabotage 1. Transport of goods between two ports or places located in the same country. 2. Transport of cargo in a country other than the country where the vehicle is registered (road cargo). 3. The carriage of a container from a surplus area to an area in which equipment is needed. CAD Cash against Documents CAF Currency Adjustment Factor Call Visit of a vessel to a port. Capacity Control Process of registering and steering of capacity. Capacity Optimization Activities to maximize the amount of freight that is carried in the hold space of an aircraft. Cargo Goods to be transported. Cargo Accounts Settlement System Abbreviation: CASS. System for automated account settlement between participating IATA airlines, billing participants and part participants, on the one hand and their appointed IATA cargo agents on the other hand (air cargo). Cargo Aircraft Any aircraft other than a passenger aircraft or a combi. Cargo Assembly Separate reception of parcels or packages and the holding of them for later dispatch as one consignment. Consolidation Cargo Disassembly Break Bulk Cargo Handling Physical handling of goods. Cargo IMP Cargo Interchange Message Procedures Cargo Interchange Message Procedures Abbreviation: Cargo IMP. Procedures developed by the member airlines of the Air Transport Association of America (ATA) and the International Air Transport Association (IATA). Cargo Manifest List including all particulars of consignments. Cargo Restriction Code Code indicating that the use of a certain container is restricted to particular cargo. Cargo Tracer Information sent by the agent or airline to all relevant parties, stating that certain cargo is either missing or arrived in excess.

12 Carnet ATA Customs document permitting the holder to carry or send merchandise temporarily into certain foreign countries (for display, demonstration or similar purposes) without completing normal customs formalities. With a carnet, the holder avoids paying duties or posting bonds. Carriage Process of transporting (conveying) cargo, from one point to another. Synonym: Transport Carriage and Insurance Paid to (... Named Place of Destination) Abbreviation: CIP. Incoterm Incoterms Carriage of Goods by Sea Act Abbreviation: C.O.G.S.A U.S. Statute that governs the acts that a carrier is responsible for and defines the terms used in shipping. The act provides that the shipowner s liability will be limited to $500 per shipping package, and it stipulates a one-year time limit for filing suit against the carrier. This act automatically applies to international ocean movements but not to domestic ocean transits unless the carrier agrees to be bound by it. Carriage Paid to (... Named Place of Destination) Abbreviation: CPT. Incoterm Incoterms Carrier Company that carries the cargo, e.g. shipping line, airline, trucking company, etc. Carrier Haulage Inland transport service performed by the sea-carrier under the terms and conditions of the relevant transport document. Merchant Inspired Carrier Haulage Carriers Lien Right to retain the property as security for the payment of services, material, or money expended on that property. E.g.: When the shipper ships goods collect, the carrier has a possessory claim on these goods, which means that the carrier can retain possession of the goods as security for the charges due. Carrying Temperature Required cargo temperature during transport and storage. Setting/Air Delivery Temperature Cartage Haulage Cash Against Documents Abbreviation: CAD. Payment condition which implies transfer of title at time of payment. Cash in Advance Abbreviation: CIA. Payment condition which implies up-front payment before transfer of title of goods. Cash on Delivery Abbreviation: COD. Payment condition which implies payment of goods at the time of physical transfer. Cash with Order Abbreviation: CWO. Payment condition which implies payment when order is placed.

13 CASS Abbreviation for: Cargo Accounts Settlement System. Part-Participant Settlement Office CASS Airline Airline, fully participating in the CASS. CCTV Closed Circuit Television. Krystal Logistics Company Cell Location on board of a container vessel where one container can be stowed. Cell Position Location of a cell on board of a container vessel identified by a code for, respectively, the bay, the row and the tier, indicating the exact position of a container on that vessel. Bay Cell-Guide Steel bars and rails used to steer containers during loading and discharging whilst sliding in the ship. Fully Cellular Containership Cellular Vessel Vessel, specially designed and equipped for the carriage of containers. CENSA Council of European and Japanese National Ship-owners Associations Center of Gravity Point at which the entire weight of a body may be considered as concentrated so that if supported at this point the body would remain in equilibrium in any position. Meta-Centric Height Certificate Document by which a fact is formally or officially attested and in which special requirements and conditions can be stated. Certificate of Analysis Document, often required by an importer or government authorities, attesting to the quality or purity of commodities. Certificate of Classification Certificate, issued by the classification society, stating the class under which a vessel or an aircraft is registered. Certificate of Free Sale Certificate, required by some countries as evidence that the goods are normally sold on the open market and approved by the regulatory authorities in the country of origin. Certificate of Inspection Document confirming that cargo has been inspected by a competent authority (SGS, Bureau Veritas or any national authority) before dispatch. Certificate of Insurance Document presented by the insurance company or insured as evidence that insurance is in effect. The insured may assign their rights under this negotiable document to a third party, usually the consignee, by endorsing the reverse of the certificate.

14 Certificate of Manufacture Statement (often notarized) in which a producer of goods certifies that manufacture has been completed and that the goods are now at the disposal of the buyer. Certificate of Origin Statement signed by the exporter, or its agent, and attested to by a local Chamber of Commerce, indicating that the goods being shipped, or a major percentage of them, originated and were produced in the exporter s country. CFR Incoterm for Cost and Freight (... named port of destination) Synonym: C&F. Incoterms CFS Container Freight Station Charge Type Separate, identifiable element of charges to be used in the pricing/rating of common services rendered to customers. Charter Contract Charter Party Charter Party Written contract, usually on a special form, between the owner of a vessel and a charterer who rents use of the vessel or a part of its freight space. The contract generally includes the freight rates and the ports involved in the transportation. Synonym for Airfreight: Charter Contract; Bareboat Charter Demise Charter Lump-Sum Charter Slot Charter Space Charter Time Charter Charterer Person who has signed a charter party with the owner of a vessel or an aircraft and thus hires or leases the same vessel or aircraft or a part of the capacity thereof on a legal basis. CIA Cash in Advance CIF Incoterm for Cost, Insurance and Freight (... named port of destination) Incoterms CIF and C Cost, Insurance, Freight and Commission. CIM Convention Internationale Concernant le Transport des Marchandises par Chemin de Fer CIP Incoterm for Carriage and Insurance Paid to (... named place of destination) Incoterms City Terminal Service Shuttle service between city and airport.

15 Class Rate Rate applicable to a specifically designated class of goods (air cargo). General Cargo Rate Classification Arrangement according to a systematic division of a number of objects into groups, based on some likeness or some common traits. Classification Society Organization, whose main function is to carry out surveys of vessels, its purpose being to set and maintain standards of construction and upkeep for vessels, their engines and their safety equipment. A classification society also inspects and approves the construction of shipping containers. Bureau Veritas Det Norske Veritas Germanischer Lloyd Lloyd s Register of Shipping Clean Bill of Lading Receipt for goods issued by a shipping line that indicates that the goods were received in apparent good order and condition, without damage or other irregularities. Foul Bill of Lading Letter of Indemnity Clean Draft (Bill of Exchange) Draft with no accompanying documents. Clean on Board When goods are loaded on board and the document issued in respect to these goods is clean. Note: Through the usage of the UCP 500 rules the term has now become superfluous. Clearence Terminal Terminal where customs facilities for the clearance of goods are available. Cleared without Examination Abbreviation: CWE. Cleared by customs without inspection. Clip on Unit Abbreviation: COU. Detachable aggregate for a temperature controlled container (Conair). Closed Ventilated Container Container of a closed type, similar to a general-purpose container, but specially designed for carriage of cargo where ventilation, either natural or mechanical (forced), is necessary. CLP Container Load Plan CMR Convention Relative au Contrat de Transport International de Marchandises par Route Co-Insurance Where two or more parties share the same risk. A co-insurer is not obliged to follow the decision of another co-insurer, except where they have given authority for the other party to act on their behalf. Each co-insurance is a separate contract with the insured. Co-Loading Combination of cargo from another shipper or carrier, having the same final destination as the cargo base load. COD Cash on Delivery

16 Cofferdam Empty space on board of a vessel between two bulkheads or two decks separating oil tanks from each other and/or the engine room or other compartments. Collapsible Container Container which can be easily folded, disassembled and reassembled. Collect Freight Freight which is payable to the carrier when the merchandise arrives at the port of discharge named in the Bill of Lading. Collecting Bank Bank to which a remitting bank sends draft for collection. Advice of Fate Collection Papers All documents (Commercial invoices, Bills of Lading, etc.) submitted to a buyer for the purpose of receiving payment for a shipment. Collision Physical impact between two or more vehicles. In collision liability insurance, the term does not include contact of the insured vessel with anything other than a ship or vessel. Perils of the Sea Combi Aircraft Aircraft, carrying passengers and cargo upper deck. Combination Chassis Chassis which can carry either one 40-foot or two 20-foot containers. Combination Joint Rate Joint rate which is obtained by combining two or more published rates (air cargo). Combined Transport Intermodal transport where the major part of the journey is by one mode and any initial and/or final leg carried out by another mode. Synonym: Multimodal Transport Combined Transport Document Combined Transport Document Abbreviation: CTD. Negotiable or non-negotiable document evidencing a contract for the performance of combined transport of goods. Synonym: Multimodal Transport Document Combined Transport Operator Abbreviation: CTO. Party that undertakes to carry goods with different modes of transport. Synonym: Multimodal Transport Operator Commercial Invoice Document issued by the seller to the buyer, which gives detail of merchandise sold, number of units being shipped, per unit cost and the terms of sale. Declaration of Origin Commercial Set Set of four negotiable documents that represents and takes the place of the goods themselves in the financing of the cargo sales transaction.

17 Commodity Indication of the type of goods. Commodities are coded according to the harmonized system. Harmonized System Commodity Box Rate Rate classified by commodity and quoted per container. Harmonized System Commodity Code Code used in the Harmonized System for the classification of goods which are most commonly produced and traded. Commodity Item Number Specific description number required in air transport to indicate that a specific freight rate applies. Common Carrier Transporter that provides its services to the general public for the transportation of goods over a definite route and according to a regular schedule. Compromised Total Loss Arranged settlement on a hull policy where there is no claim for actual or constructive total loss, but where it is impractical to repair the vessel. Conair Container Thermal container served by an external cooling system (e.g. a vessel s cooling system or a Clip on Unit), which regulates the temperature of the cargo. Note: Conair is a brand name. Clip on Unit Conditions of Carriage General terms and conditions established by a carrier in respect of the carriage. Conditions of Contract Terms and conditions of a transportation contract. Cones Devices for facilitating the loading, positioning and lashing of containers. The cones insert into the bottom castings of the container. Synonym: Locating Pin Conference Liner Conference Confirmed Letter of Credit Letter of Credit, issued by a foreign bank, with validity confirmed by a bank of origin. A seller that requires a confirmed Letter of Credit from the buyer is assured of payment by the origin bank even if the foreign buyer or the foreign bank defaults. Connecting Carrier Carrier to whose services the cargo is to be transferred for onward connecting transport. Connecting Road Haulage Drayage Consignee Party, mentioned in the transport document, by whom the goods, cargo or containers are to be received. Consignment Separate identifiable number of goods to be transported from one shipper to one consignee.

18 Synonym: Shipment Krystal Logistics Company Consignment Instructions Shipping Instructions Consignment Note Document prepared by the shipper and comprising a transport contract. It contains details of the consignment to be carried to the port of loading and it is signed by the inland carrier as proof of receipt. Consignment Stock Stock of goods with an external party (customer) which is still the property of the supplier. Payment for these goods is made to the supplier at the moment when they are sold. Consignor Shipper Consolidated Container Container filled with several shipments from different shippers for delivery to one or more consignees. Consolidation Grouping together of smaller consignments of goods into a large consignment for carriage as a larger unit in order to obtain a reduced rate. Cargo Assembly Consolidation Point Consolidation Point Location where consolidation of consignments takes place. Consolidator Firm or company which consolidates cargo. Constructive Total Loss Position which exists when the cost of repairing or recovering lost or damaged property plus the value of the salvage would exceed the property s value when repaired or recovered. Abandonment Compromised Total Loss Notice of Abandonment Consular Declaration Formal statement, made by the consulate of a foreign country. Consular Documents Bills of Lading, certificates of origin or special invoice forms that are officially legalized by the consul of the country of destination. Consular Invoice Document, required by some foreign countries, describing a shipment of goods and showing information such as the shipper, consignee, and value of the shipment. Certified by a consular official of the foreign country, it is used by the country s customs officials to verify the value, quantity, and nature of the shipment. Container Item of equipment as defined by the International Organization for Standardization (ISO) for transport purposes. It must be of: a) a permanent character and accordingly strong enough to be suitable for repeated use; b) specially designed to facilitate the carriage of goods, by one or more modes of transport without intermediate reloading; c) fitted with devices permitting its ready handling, particularly from one mode of transport to another; d) so designed as to be easy to fill and empty; e) having an internal volume of 1 m3 or more. The term container includes neither vehicles nor conventional packing. Synonym: Freight Container Container Bolster Container floor without sides or end walls which does not have the ISO corner fittings and is generally used for Ro/Ro operations. Note: A

19 bolster cannot be handled either full or empty by a container spreader without special fittings. Synonym: Bolster Container Chassis Vehicle specially built for the purpose of transporting containers. Container Check Digit 7th digit of the serial number of a container used to check whether prefix and serial number are correct. Container Depot Storage area for empty containers. Container Freight Station Abbreviation: CFS. Term CFS at loading ports refers to the location designated by carriers for the receiving of cargo to be packed into containers by the carrier. At discharge ports, the term CFS refers to the location designated by carriers in the port area for unpacking and delivery of cargo. Container Lease Contract by which the owner of containers (leasing company, lessor) gives the use of containers to a shipping line or other lessee for a specified period of time. Container Load Plan List of items loaded in a specific container and where appropriate, their sequence of loading. Container Manifest Container Logistics Controlling and positioning of containers. Container Manifest Document specifying the contents of particular freight containers or other transport units, prepared by the party responsible for their loading into the container or unit. Synonym: Unit Packing List Container Load Plan Container Number Identification number of a container consisting of prefix and serial number and check digit (e.g. KNLU ). Container Serial Number Container Prefix Container Platform Container floor without sides or end walls which can be loaded by spreader directly and is generally used for off-size cargo. Container Pool Certain stock of containers which is jointly used by several container carriers and/or leasing companies. Container Prefix Four-letter code that forms the first part of a container identification number indicating the owner of a container. Synonym: Owner s Container Code Container Safety Convention Abbreviation: CSC. International convention for safe containers. Container Serial Number Seven digit serial number (6 plus 1 Check Digit) that forms the second part of a container identification number. Container Service Charges Charges to be paid by cargo interests as per local port tariffs.

20 Container Size Code Two digit indication of the nominal length and nominal height of a container. Container Size / Type Description of the size and type of a freight container or similar unit load device as specified in ISO Container Stack Two or more containers, one placed above the other forming a vertical column. Stack Container Sublease Contract by which a carrier gives the use of containers to another carrier for a specified period of time and for a fixed payment. Container Terminal Place where loaded and/or empty containers are stored awaiting dispatch or pick up. Container Type Code Two digits, the first of which indicates the category and the second of which indicates certain physical characteristics or other attributes of a container. Container Yard Abbreviation: CY. Facility at which containers are received from or delivered to the merchant by or on behalf of the carrier. Synonym: Marshalling Yard Containerized Indication that goods have been stowed in a container. Contingency Insurance Secondary insurance coverage which will protect the insured s financial interest if the primary insurance cover effected by others does not respond for a covered loss (Seller s Insurance). Contraband Goods forbidden by national law to be imported or exported. Contract Agreement enforceable by law, between two or more parties stipulating their rights and obligations. Contract Logistics Contracting out of all the warehousing, transport and distribution activities or a part thereof by manufacturing companies. Contract of Affreightment Affreightment Contractual Carrier The contractual carrier (called NVO, Non Vessel Operator or NVOC, Non Vessel Operating Carrier) is a party which contracts carriage of goods for the account of the Merchants and fulfills its commitment by using the services of a carrier (sometimes referred to as the actual carrier). Contractual Port of Loading Port at which an ocean vessel does not call, but which is equalized with the actual port of call and upon which inland haulage services and

21 inland tariffs are based. Note: Generally speaking it is seen as the port mentioned on the B/L from which cargo is accepted (e.g. delivered by the consignee for sea transport). Synonym: Commercial POL/POD Contribution This relates to situations where more than one party covers the risk. Each party is deemed to be liable for its portion of the loss. If the insured has recovered in full from one insurer, that insurer is entitled to recover from the other insurer that part of the loss which should have been paid by the latter. The term, as used in marine insurance, also applies to contributions paid by the insured in connection with salvage and/or General Average. Contributory Value General Average Bond General Average Statement Protection and Indemnity Club Valuation Clause Contributory Value Value of property saved as a result of a General Average Act which forms the basis for determining each party s contribution in General Average. Convention Internationale Concernant le Transport des Marchandises par Chemin de Fer Abbreviation: CIM. International agreement, applied by 19 European railway companies, setting out conditions for international railway transport of goods and the liabilities of the carrier. Convention Relative au Contrat de Transport International de Marchandise par Route Abbreviation: CMR. Convention for the international carriage of goods by road, setting out the conditions of carriage and the liabilities of the carrier. Note: Adherence to this set of regulations reflects a desire to standardize items such as documentation and rules on the carriers liability. Conventional Cargo Break Bulk Cargo Convertible Currency Currency that can be bought and sold for other currencies at free-trade. Convertor Dolly Auxiliary undercarriage assembly consisting of a chassis, fifth wheel and tow-bar used to convert a semi-trailer or a container chassis to a full trailer. Conveyance Transport of goods from one place to another. Conveyor Mechanical device in the form of a continuous belt used for transporting cargo. Core Competence Combination of individual skills and use of technologies that underlay the various products and/or services of a business. Corner Fittings Fittings located at the corners of containers providing means of supporting, stacking, handling and securing the container. Synonym: Corner Casting Corner Post Vertical structural member at either side of an end frame of a container joining a top and a bottom corner fitting (and thereby forming a corner structure ). Correspondent Bank Bank that, in its own country, handles the business of a foreign bank.

22 Cost and Freight ( Named Port of Destination) Abbreviation: CFR. Incoterm Incoterms Cost, Insurance and Freight ( Named Port of Destination) Abbreviation: CIF. Incoterm Incoterms COU Clip on Unit Krystal Logistics Company Council of European and Japanese National Shipowners Associations Abbreviation: CENSA. Main objectives of this organization are to promote and protect sound shipping policies in all sectors of shipping, to coordinate and present the views of its members and to exchange views with other shipowner groups. Count Bill of Lading Bill of Lading which shows the actual number of units being shipped. Countertrade Sale of goods or services that are paid for in whole or in part by the transfer of goods or services from a foreign country. Barter Country Damage Damage caused by dirt, mud, etc., to commodities before they are shipped. Country of Departure Country from which a certain means of transport is scheduled to depart or has departed. Country of Dispatch Country from which the goods are shipped. Country of Origin Country of Origin Country where the merchandise was grown, mined, or manufactured. In instances where the country of origin cannot be determined, transactions are credited to the country of dispatch. Country of Dispatch Country of Provenance Country of origin of goods or cargo being sent to the importing country. Cover Note Non-negotiable document evidencing insurance which may or may not indicate the terms of cover. CPT Incoterm for Carriage Paid to (... named place of destination). Incoterms Crane Machine designed for moving and lifting weight by means of a movable projecting arm or a horizontal beam which is able to travel over a certain distance. Credit Risk Insurance Insurance designed to cover risks of nonpayment for delivered goods.

23 Crew Member Any person actually employed for duties on board during a voyage in the working or service of a ship and included in the crew list (IMO). Crosstrade 1. Used in shipping for the services of a vessel between nations other than the nation in which the vessel is registered. 2. Term used in the freight forwarding industry for the transportation services between nations other than the nation in which the cargo s principle is domiciled (UNCTAD). CSC Container Safety Convention CTD Combined Transport Document CTO Combined Transport Operator Currency Medium of exchange of value, defined by reference to the geographic location of the authorities responsible for it (ISO 4217). In general, the monetary unit is represented by a name or a symbol. Currency Adjustment Factor Abbreviation: CAF. Adjustment applied by shipping lines or liner conferences on freight rates to offset losses or gains for carriers resulting from fluctuations in exchange rates of tariff currencies. Customer Pick Up Cargo picked up by a customer at a warehouse. Customer Service Level Performance measure of customer service. Note: Generally this is seen as the degree with which customer orders can be executed, in accordance with the terms which are generally accepted in the market. Customhouse Broker Individual or firm licensed to enter and clear goods through customs. Customs Authorities designated to collect duties levied by a country on imports and exports. The term also applies to the procedures involved in such collection. Customs Broker Authorized agent specialized in customs clearance procedures on account of importers/exporters. Customs Clearance Agent Customs Clearance Agent Customs broker or other agent of the consignee designated to perform customs clearance services for the consignee. Customs Broker Customs Entry Form Form required by customs authorities for merchandise entering the country. It indicates the country of origin, description of merchandise and the amount of estimated duty to be paid before merchandise is released. Customs Invoice Document required by customs in an importing country in which the seller states the price (e.g. selling price, price of identical goods), and specifies costs for freight, insurance and packing, etc., terms of delivery and payment. This is for the purpose of determining the customs

24 value in the importing country of goods consigned to that country. Krystal Logistics Company Customs Value Worth of an item or group of items expressed in a monetary amount, within a consignment declared to customs for duty and statistical reasons. Customs Invoice Cut-Off Time Last point before a flight departs at which freight will be accepted to travel on that flight. CWE Cleared without Examination CWO Cash with Order CY Container Yard Cycle Stock That portion of stock available or planned to be available in a given period for normal demand, excluding excess stock and safety stock. Krystal Logistics Co. Terms Glossary D D/A Documents against Acceptance D/P Documents against Payment DAF Incoterm for Delivered at Frontier (... named place). Incoterms Damage Report Form on which physical damage of a consignment or transportation unit (e.g. container) is recorded. Damaged Cargo Report Written statement concerning established damages to cargo and/or equipment. Dangerous Goods Goods are to be considered dangerous if the transport of such goods might cause harm, risk, peril, or other evil to people, environment, equipment or any property whatsoever. Articles Dangereux de Route Dangerous Goods Packing Certificate International Maritime Dangerous Goods Code

25 International Maritime Organization Medical First Aid Guide United Nations Dangerous Goods Number Dangerous Goods Declaration Document issued by a shipper in accordance with applicable conventions or regulations, describing hazardous goods or materials for transport purposes, and stating that the latter have been packed and labeled in accordance with the provisions of the relevant conventions or regulations. Dangerous Goods Packing Certificate Document as part of the dangerous goods declaration in which the responsible party declares that the cargo has been stowed in accordance with the rules in a clean container in compliance with the IMDG regulations and has been properly secured. Data Plate Metal identification plate affixed to a container which displays, among other things, the gross and tare weights and external dimensions. Date Draft (Bill of Exchange) Draft that matures in a specified number of days after the date it is issued, without regard to the date of acceptance. Draft Sight Draft Time Draft DDP Incoterm for Delivered Duty Paid (... named place of destination). Incoterms DDU Incoterm for Delivered Duty Unpaid (... named place of destination). Incoterms Deadload Difference between the actual and calculated ship s draft. Draft Deadweight Abbreviation: DWT. Total weight of cargo, cargo equipment, bunkers, provisions, water, stores and spare parts which a vessel can lift when loaded to her maximum draft as applicable under the circumstances. The deadweight is expressed in tons. Deck Any extended horizontal structure in a vessel or an aircraft, serving as a floor and structural support, covering, partially or fully, a portion of the vessel or aircraft. Deck Cargo Cargo carried outside on deck of a vessel. Declaration of Origin Appropriate statement as to the origin of the goods, made in connection with their exportation by the manufacturer, producer, supplier, exporter or other competent person on the commercial invoice or any document relating to goods. Commercial Invoice Declared Value for Carriage Value of the goods declared to the carrier by the shipper for the purpose of determining charges or of establishing the limit of the carrier s liability for loss, damage or delay. It is also the basis for possible applicable valuation charges (air cargo). Deductible Specific dollar amount, or percentage of the insured value, which will be deducted from all losses recoverable under a policy.

26 Deep Tank Tank fitted and equipped for the carriage of vegetable oil (e.g. palm oil and coconut oil) and other liquids in bulk. Default Charge Charge applicable for a trade, stretch or location. In the absence of specifics (not otherwise specified/enumerated) a general amount has been set. Deferred Payment Credit Type of Letter of Credit providing for payment some time after presentation of shipping documents by seller. Degroupage Splitting up shipments into small consignments. Regroupage Delay Even under All Risk cover, damage due to delay is not recoverable. Most underwriters have inserted a Delay Clause in the Open Cargo Policy, which states specifically that damage caused by delay is not recoverable even if the delay was due to a peril insured against. All Risk Delivered at Frontier ( Named Place) Abbreviation: DAF. Incoterm Incoterms Delivered Duty Paid ( Named Place of Destination) Abbreviation: DDP. Incoterm Incoterms Delivered Duty Unpaid ( Named Place of Destination) Abbreviation: DDU. Incoterm Incoterms Delivered Ex Quay ( Named Port of Destination) Abbreviation: DEQ. Incoterm Incoterms Delivered Ex Ship ( Named Port of Destination) Abbreviation: DES. Incoterm Incoterms Delivering Carrier Carrier that delivers the consignment to the consignee or its agent. Delivery Process of delivering the consignment to the consignee at the agreed place. Delivery Instruction Document giving instructions regarding the details of the delivery of the shipment. Delivery Order