|ValveDepot Glossary of Shipping Terms|
|A B C D E F G H I J K L M N O P Q R S T U V W XYZ|
Abbreviation for "Transportation and Exportation." Customs form used to control cargo movement from port of entry to port of exit, meaning that the cargo is moving from one country, through the United States, to another country.
Rear of a container or trailer-opposite the front or nose.
In railcar or container shipments, the weight of the empty railcar or empty container.
A publication setting forth the charges, rates and rules of transportation companies.
Used for sending messages to outside companies. Messages are transmitted via Western Union, ITT and RCA. Being replaced by fax and internet.
A device to record temperature in a container while cargo is en route.
The offer of goods for transportation or the offer to place cars or containers for loading or unloading.
Time and date for payment of a draft.
An assigned area in which containers are prepared for loading into a vessel, train, truck, or airplane or are stacked immediately after discharge from the vessel, train, truck, or airplane.
A charge made for a service performed in a carrier's terminal area.
Terms of Sale
The point at which sellers have fulfilled their obligations so the goods in a legal sense could be said to have been delivered to the buyer. They are shorthand expressions that set out the rights and obligations of each party when it comes to transporting the goods. Following, are the thirteen terms of sale in international trade as Terms of Sale reflected in the recent amendment to the International chamber of Commerce Terms of Trade (INCOTERMS), effective July 1990: exw, fca, fas, fob, cfr, cif, cpt, cip, daf, des, deq, ddu and ddp.
- EXW (Ex Works) (...Named Place): A Term of Sale which means that the seller fulfills the obligation to deliver when he or she has made the goods available at his/her premises (i.e., works, factory, warehouse, etc.) to the buyer. In particular, the seller is not responsible for loading the goods in the vehicle provided by the buyer or for clearing the goods for export, unless otherwise agreed. The buyer bears all costs and risks involved in taking the goods from the seller's premises to the desired destination. This term thus represents the minimum obligation for the seller.
- FCA (Free Carrier) (... Named Place): A Term of Sale which means the seller fulfills their obligation when he or she has handed over the goods, cleared for export, into the charge of the carrier named by the buyer at the named place or point. If no precise point is indicated by the buyer, the seller may choose, within the place or range stipulated, where the carrier should take the goods into their charge.
- FAS (Free Alongside Ship) (...Named Port of Shipment): A Term of Sale which means 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.This means that the buyer has to bear all costs and risks of loss of or damage to the goods from that moment.
- FOB (Free On Board) (...Named Port of Shipment): An International Term of Sale that means the seller fulfills his or her obligation to deliver when the goods have passed over the ship's rail at the named port of shipment. This means that the buyer has to bear all costs and risks to loss of or damage to the goods from that point. The FOB term requires the seller to clear the goods for export.
- CFR (Cost and Freight) (...Named Port of Destination): A Term of Sale where the seller pays the costs and freight necessary to bring the goods to the named port of destination, Terms of Sale but the risk of loss of or damage to the goods, as (continued) well as any additional costs due to events occurring after the time the goods have been delivered on board the vessel, is transferred from the seller to the buyer when the goods pass the ship's rail in the port of shipment. The CFR term requires the seller to clear the goods for export.
- CIF (Cost, Insurance and Freight) (...Named Place of Destination): A Term of Sale where the seller has the same obligations as under the CFR but also has to procure marine insurance against the buyer's risk of loss or damage to the goods during the carriage. The seller contracts for insurance and pays the insurance premium. The CIF term requires the seller to clear the goods for export.
- CPT (Carriage Paid To) (...Named Place of Destination): A Term of Sale which means the seller pays the freight for the carriage of the goods to the named destination. The risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time the goods have been delivered to the carrier, is transferred from the seller to the buyer when the goods have been delivered into the custody of the carrier. If subsequent carriers are used for the carriage to the agreed upon destination, the risk passes when the goods have been delivered to the first carrier. The CPT term requires the seller to clear the goods for export.
- CIP (Carriage and Insurance Paid To) (...Named Place of Destination): A Term of Sale which means the seller has the same obligations as under CPT, but with the addition that the seller has to procure cargo insurance against the buyer's risk of loss of or damage to the goods during the carriage. The seller contracts for insurance and pays the insurance premium. The buyer should note that under the CIP term the seller is required to obtain insurance only on minimum coverage. The CIP term requires the seller to clear the goods for export.
- DAF (Delivered At Frontier) (...Named Place): A Term of Sale which means the sellers fulfill their obligation to deliver when the goods have been made available, cleared for export, at the named point and placed at the frontier, but before the customs Terms of Sale border of the adjoining country. (continued)
- DDU (Delivered Duty Unpaid) (...Named Port of Destination): A Term of Sale where 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 thereto (excluding duties, taxes and other official charges payable upon importation) as well as the costs and risks of carrying out customs formalities. The buyer has to pay any additional costs and to bear any risks caused by failure to clear the goods for in time.
- DDP (Delivered Duty paid) (...Named Port of Destination): "Delivered Duty Paid" 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, including duties, taxes and other charges of delivering the goods thereto, clear for importation. While the EXW term represents the minimum obligation for the seller, DDP represents the maximum.
- DES (Delivered Ex Ship) (...Named Port of Destination): A Term of Sale where the seller fulfills his/her obligation to deliver when the goods have been made available to the buyer on board the ship, uncleared for import at the named port of destination. The seller has to bear all the costs and risks involved in bringing the goods to the named port destination.
- DEQ (Delivered Ex Quay, [Duty Paid]) (...Named Port of Destination): A Term of Sale which means the DDU term has been fulfilled when the goods have been available to the buyer on the quay (wharf) at the named port of destination, cleared for importation. The seller has to bear all risks and costs including duties, taxes and other charges of delivering the goods thereto.
To Be Nominated. (When the name of a ship is still unknown.)
Abbreviation for "Twenty foot Equivalent Unit."
100 cubic feet.
The total rate from the point of origin to final destination.
The charge for moving a container through a container yard off or onto a ship.
A contract for leasing between the ship owners and the lessee. It would state, e.g., the duration of the lease in years or voyages.
A draft that matures either a certain number of days after acceptance or a certain number of days after the date of the draft.
- "Transport International par la Route." Road transport operating agreement among European governments and the United States for the international movement of cargo by road. Display of the TIR carnet allows sealed containerloads to cross national frontiers without inspection.
Abbreviation for "Trailer Load."
Abbreviation for "Trailer on Flat Car." The movement of a highway trailer on a railroad flatcar. Also known as Piggyback.
- A unit used in comparing freight earnings or expenses. The amount earned from the cost of hauling a ton of freight one mile.
- The movement of a ton of freight one mile.
Generally refers to freight handled.
A type of air circulation in a container. In top air units, air is drawn from the bottom of the container, filtered through the evaporator for cooling and then forced through the ducted passages along the top of the container. This type of airflow requires a special loading pattern.
The charge made for towing a vessel.
Unit of highway motive power used to pull one or more trailers/containers.
A time or a date draft that has been accepted by the buyer (the drawee) for payment at maturity.
Persons and property carried by transport lines.
The truck unit into which freight is loaded as in tractor trailer combination. See Container.
An ocean carrier company operating vessels not on regular runs or schedules. They call at any port where cargo may be available.
To move cargo from one place to another.
Transportation & Exit (T&E)
Allows foreign merchandise arriving at one port to be transported in bond through the U.S. to be exported from another port, without paying duty.
To transfer goods from one transportation line to another, or from one ship to another.
Place where cargo is transferred to another carrier.
Release of merchandise by a bank to a buyer while the bank retains title to the merchandise. The goods are usually obtained for manufacturing or sales purposes. The buyer is obligated to maintain the goods (or the proceeds from their sales) distinct from the remainder of the assets and to hold them ready for repossession by the bank.
In water transportation, the time it takes between the arrival of a vessel and its departure.
A set of four twistable bayonet type shear keys used as part of a spreader to pick up a container or as part of a chassis to secure the containers.
A pallet so designed that the forks of a fork lift truck can be inserted from two sides only.
The terms in this glossary have been carefully selected by ValveDepot. We hope you will find it useful. This information is for reference only. ValveDepot will not have any liability for mis-use this information.