318+ Shipping Terms - Full List With Examples

Shipping is the lifeblood of global commerce. It's vast, intricate, and full of jargon. Whether you are a newcomer stepping into the shipping industry or an experienced professional wanting to broaden your knowledge, you've come to the right place.

We've compiled the ultimate list of shipping terms. On this page, you'll find shipping terminology that fits into multiple categories: International Shipping Terms, Maritime Shipping Terms, Inland Shipping Terms, and many more. This comprehensive guide will serve as your A-Z shipping term dictionary, providing a concise explanation and example for any term you might need.

Shipping Terms Glossary

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ACE

Definition: ACE (Automated Commercial Environment) is a US Customs and Border Protection (CBP) system designed to facilitate legitimate trade while enhancing border security.
Example: A shipper uses the ACE portal to submit electronic export information to customs.

AES

Definition: AES (Automated Export System) is the system used by US exporters to electronically declare their international exports, known as Electronic Export Information (EEI), to the CBP.
Example: The exporter filed the shipment data through AES to adhere to customs regulations.

Aggregate Shipment

Definition: Aggregate shipment refers to numerous shipments from different shippers to one consignee that are consolidated and treated as a single consignment.
Example: Several small businesses in a region may combine their goods into an aggregate shipment to save on shipping costs.

Air Waybill (AWB)

Definition: An AWB is a contract between the shipper and the air carrier that covers the transport of goods from the point of origin to the destination.
Example: The air waybill stated the freight charges, weight of the cargo, and terms of delivery for a shipment from New York to London.

ALADI

Definition: ALADI (Latin American Integration Association) is a Latin American trade integration association, its members work to create common market in Latin America and to promote economic development.
Example: Brazil, a member of ALADI, works with other member nations to promote regional trade.

Alongside

Definition: A term in shipping, "alongside" means that a vessel is located next to a quay or another vessel.
Example: The cargo ship was moored alongside the dock for offloading.

Apparent Good Order

Definition: When goods appear to be undamaged upon visual inspection, they are said to be in "apparent good order".
Example: After inspecting the shipment, the warehouse manager noted that it was in apparent good order.

Arrival Notice

Definition: A notification sent by the carrier to the "notify party," listing the shipment details for cargo arriving at the destined port.
Example: The freight forwarder received an arrival notice for a shipment from China.

Astern

Definition: In naval terminology, "astern" refers to the direction towards the back end (stern) of a ship.
Example: The captain looked astern to see another ship following closely behind.

ATDNSHINC

Definition: Stands for "Any Time Day or Night Sundays and Holidays Included." It is often used in a Charter Party to signify when the charterer can use the vessel.
Example: The contract stated ATDNSHINC, allowing the charterer to use the vessel at any time.

Athwartships

Definition: A naval term indicating that something is across the ship from side to side, perpendicular to the centerline.
Example: The lifeboats were secured athwartships

Audit

Definition: An audit is a systematic review or assessment of something. In the context of shipping, this could involve reviewing a company's logistics processes, compliance with trade regulations, financial transactions, etc.
Example: The company conducted an audit of its supply chain to identify areas of inefficiency.

Audit Trail

Definition: An audit trail is a record that shows who has accessed a computer system, the changes made, and the times of access. It is important for maintaining security and tracking changes.
Example: The shipping company used the audit trail to track changes made in the shipment tracking system.

Australia-United States Free Trade Agreement (AUSFTA)

Definition: The AUSFTA is a trade agreement between the United States and Australia aiming to reduce and eliminate trade barriers between the two countries.
Example: Thanks to AUSFTA, Australian wine exports to the United States have grown significantly.

Automatic Identification System (AIS)

Definition: AIS is a tracking system used on ships and by vessel traffic services (VTS) for identifying and locating vessels by electronically exchanging data with other nearby ships and VTS stations.
Example: The vessel's AIS helped to avoid a potential collision with another ship in dense fog.

Backhaul

Definition: Backhaul refers to the process of returning a freight transportation vehicle to its point of origin with a load rather than empty, after the primary delivery has been made.
Example: The shipping company found a backhaul opportunity to transport furniture after delivering electronics to the same region.

Balloon Freight

Definition: Balloon freight refers to cargo that takes up a lot of space but weighs very little. Since carriers often charge by volume for light, bulky cargo, it's known as balloon freight.
Example: Foam packaging materials, being lightweight and bulky, are often considered as balloon freight.

Bank Draft

Definition: A bank draft is a type of check where the payment is guaranteed by the issuing bank. In international trade, sellers often require payment by bank draft to ensure they receive payment.
Example: The buyer sent a bank draft to pay for the goods purchased from an overseas supplier.

Beam

Definition: In nautical terms, the 'beam' of a ship is the width of the ship at its widest point.
Example: The beam of the cargo ship was 30 meters.

Beneficiary

Definition: In trade terms, a beneficiary is the individual or entity in whose favor a letter of credit is issued or a draft is drawn.
Example: In the letter of credit, the exporting company was listed as the beneficiary.

Bilateral

Definition: Bilateral refers to something involving two parties, typically countries, such as in a bilateral agreement or trade.
Example: The bilateral trade agreement facilitated commerce between the two countries.

Bill of Lading

Definition: A bill of lading is a legal document between the shipper and carrier detailing the type, quantity and destination of the goods being shipped. It also serves as a shipment receipt when the carrier delivers the goods.
Example: The bill of lading was issued by the carrier once the goods were loaded onto the ship.

Bill of Sale

Definition: A bill of sale is a legal document that confirms the transfer of ownership of goods from the seller to the buyer.
Example: The antique dealer provided a bill of sale to the customer once the purchase was completed.

Bill-To Party

Definition: The bill-to party is the entity responsible for paying the invoice.
Example: The bill-to party was the end customer, who would pay for the freight charges.

BIS

Definition: The Bureau of Industry and Security (BIS) is a U.S. government agency responsible for implementing and enforcing the Export Administration Regulations (EAR), which regulate the export and re-export of most commercial items.
Example: The BIS prevented the export of sensitive technology to certain countries.

Blocking or Bracing

Definition: Blocking or bracing is a method used in the shipping industry to secure and support products in a shipping container to prevent damage during transit.
Example: The shipping company used blocking and bracing to prevent the machinery from moving in the container.

Block Stowage

Definition: Block stowage refers to a method of packing containers on a ship where containers of a similar size, weight, or type are grouped together.
Example: The ship was loaded using block stowage to maintain stability during the voyage.

Bolster

Definition: A bolster is a portable framework that supports containers on a chassis or railcar.
Example: The container was secured on the chassis using a bolster.

Bond Port

Definition: A bond port is a port of initial customs entry where goods are stored until duties are paid or goods are released in some other proper manner.
Example: The imported goods were stored at the bond port until the importer paid the necessary duties.

Booking

Definition: In shipping terms, booking refers to the act of reserving space on a ship for cargo transport.
Example: The shipper made a booking for their goods on the next freight vessel to Europe.

Bow

Definition: In nautical terms, the bow is the front part of a ship or boat.
Example: The captain stood at the bow of the ship as it moved into the harbor.

Broken Stowage

Definition: Broken stowage is the unused space in a ship’s hold that results from the irregular shape of the cargo. This is a loss to the shipper as the area cannot be utilized.
Example: Despite packing carefully, the broken stowage was inevitable due to the odd-shaped cargo.

Bulk Cargo

Definition: Bulk cargo refers to cargo that is transported in large quantities without packaging, usually in specialized ships, and includes goods like oil, grain, or coal.
Example: The ship was loaded with bulk cargo, consisting mainly of wheat.

Bull Ring

Definition: Bull ring refers to a heavy-duty ring secured in the floor of a container; it can be used to secure heavy items during transport.
Example: The workers used the bull ring to secure the heavy machinery inside the shipping container

Cabotage

Definition: Cabotage refers to the transport of goods or passengers between two points within the same country by a transport operator from another country.
Example: Under U.S. law, foreign vessels are restricted from cabotage, or transporting goods between two U.S. ports.

CAFTA-DR

Definition: CAFTA-DR is the Dominican Republic-Central America-United States Free Trade Agreement. It is a trade agreement aimed at eliminating tariffs and trade barriers among participants.
Example: Guatemala, a member of CAFTA-DR, saw increased trade with the United States after the agreement was signed.

Canada Customs Invoice

Definition: A Canada Customs Invoice is a document that contains information about the goods you are importing into Canada, their value, and their country of origin.
Example: The importer filled out the Canada Customs Invoice accurately to avoid delays at the border.

Cargo

Definition: Cargo refers to goods or produce transported, generally for commercial gain, by ship, aircraft, train, van, or truck.
Example: The cargo ship was filled with electronics bound for Europe.

Cargo Declaration

Definition: A cargo declaration is a document that provides specifics about the cargo, including its nature, origin, and destination.
Example: The ship's captain provided a cargo declaration to customs officials at the port of entry.

Cargo Manifest

Definition: A cargo manifest is a document listing the cargo, passengers, and crew of a ship, aircraft, or vehicle, for the use of customs and other officials.
Example: The ship's captain presented the cargo manifest to the customs officials when the ship docked at the port.

CARICOM

Definition: The Caribbean Community (CARICOM) is a group of twenty developing countries in the Caribbean that have come together to form an economic and political community that works together to shape policies and helps each other to develop.
Example: Trinidad and Tobago, as part of CARICOM, benefits from shared policies and economic cooperation with neighboring Caribbean countries.

Carnet

Definition: A carnet is an international customs document that allows for the temporary importation of goods, duty-free and tax-free, with a single document.
Example: The company used a carnet for the temporary importation of their equipment for a trade show.

Carrier

Definition: A carrier is a company that provides transportation services to deliver goods from the shipper to the receiver. It can be a shipping line, airline, trucking company, or a railroad company.
Example: The shipper contracted a carrier to deliver the goods to their customer overseas.

Cash on Delivery (COD)

Definition: Cash on Delivery is a type of transaction in which payment for goods is made at the time of delivery rather than in advance. If the goods are not paid for, they are returned to the retailer.
Example: The supplier agreed to send the goods with a COD option, to ensure they received payment upon delivery.

CBP

Definition: U.S. Customs and Border Protection (CBP) is the largest federal law enforcement agency of the U.S. Department of Homeland Security, responsible for regulating and facilitating international trade, collecting import duties, and enforcing U.S. regulations.
Example: The importer needed to submit their import documents to CBP for their goods to be cleared into the U.S.

CCC Mark

Definition: The China Compulsory Certificate mark, or CCC mark, is a compulsory safety mark for many products imported, sold, or used in the Chinese market.
Example: The manufacturer ensured their product had the CCC mark before exporting it to China.

CCL

Definition: The Commerce Control List (CCL) is a list of items under the export control jurisdiction of the Bureau of Industry and Security, U.S. Department of Commerce.
Example: The exporter checked the CCL to see if their product needed an export license.

CE Mark

Definition: The CE mark is a certification mark that indicates conformity with health, safety, and environmental protection standards for products sold within the European Economic Area.
Example: The manufacturer obtained the CE mark for their product before selling it in Europe.

Certificate of Conformity (CoC)

Definition: A Certificate of Conformity is a document that certifies a product meets a minimum set of regulatory, technical and safety requirements. It is generally product-specific and issued by an authorized certification body.
Example: The electrical appliance manufacturer obtained a CoC to show that their product met all the necessary safety regulations.

Certificate of Free Sale

Definition: A Certificate of Free Sale is a document that indicates a particular product is marketed in the United States or is eligible for export, and that the particular manufacturer has no unresolved enforcement actions pending before or taken by the FDA.
Example: The pharmaceutical company obtained a Certificate of Free Sale to demonstrate their product's eligibility for export to foreign markets.

Certificate of Inspection

Definition: A Certificate of Inspection is a document that confirms goods have been inspected and meet the quality standards of the importing country. It's often used in international trade for certain commodities or when required by the importing country.
Example: The agricultural produce exporter had their goods inspected and received a Certificate of Inspection, verifying that their goods met all necessary standards.

Certificate of Origin (COO)

Definition: A Certificate of Origin is a document used in international trade that certifies that a product was manufactured or processed in a particular country. It is often used to determine whether certain goods are eligible for import or to qualify for any preferential treatment.
Example: The company produced a Certificate of Origin to prove their products were made in the United States and therefore eligible for a certain tariff reduction.

CFR (Cost and Freight)

Definition: CFR is an Incoterm that obligates the seller to arrange and pay for transporting the goods by sea to a port of destination and provide the buyer with the documents necessary to obtain the goods from the carrier.
Example: The seller, under CFR terms, was responsible for arranging and paying for sea freight to the buyer's port.

Chamber of Commerce

Definition: A Chamber of Commerce is a local association to promote and protect the interests of the business community in a particular place.
Example: The local Chamber of Commerce held regular meetings and workshops to help businesses thrive in the city.

Chamber Stamp

Definition: A Chamber Stamp is the official seal of a Chamber of Commerce, often used to authenticate documents like Certificates of Origin.
Example: The exporter obtained a Chamber Stamp on their Certificate of Origin to authenticate it.

Chapter Notes

Definition: Chapter Notes are found at the beginning of each chapter in a tariff schedule and provide important information about the chapter's content, such as exceptions or definitions specific to that chapter.
Example: The customs broker referred to the Chapter Notes to properly classify the imported goods under the correct Harmonized System code.

Chassis

Definition: A chassis is a special trailer or undercarriage used to transport ocean containers over the road.
Example: The trucker attached the container to a chassis for its transportation from the port to the warehouse.

Chock

Definition: A chock is a wedge or block placed against a wheel or rounded object, to prevent it from moving.
Example: The dock worker placed chocks around the wheels of the parked truck to prevent it from rolling.

CIF (Cost, Insurance and Freight)

Definition: CIF is an Incoterm where the seller delivers the goods onboard the vessel or procures the goods already so delivered. The risk of loss or damage to the goods transfers when the goods are on board the vessel, and the seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination.
Example: Under CIF terms, the seller arranged for the freight and insurance and paid all costs to get the goods to the buyer's port.

CIP (Carriage and Insurance Paid To)

Definition: CIP is an Incoterm in which the seller delivers the goods to a carrier or another person nominated by the seller at an agreed place. The seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination. The seller also contracts for insurance cover against the buyer’s risk of loss of or damage to the goods during the carriage.
Example: The seller, under CIP terms, was responsible for arranging carriage and insurance to the destination agreed upon.

CL

Definition: CL stands for Carload, which refers to the maximum load a rail car can carry.
Example: The manufacturer packed a CL of goods into the train for transport to the distribution center.

Claim

Definition: A claim refers to a demand made by a shipper or consignee to a carrier for financial reimbursement due to loss, damage, or delay of shipments.
Example: After noticing damage to the goods upon arrival, the consignee filed a claim with the carrier.

CM and cm

Definition: CM and cm stand for centimeters, a unit of length in the metric system. It is often used in shipping to measure the dimensions of a package or product.
Example: The shipping box was 50 cm in length, 30 cm in width, and 20 cm in height.

Code of Federal Regulations (CFR)

Definition: The Code of Federal Regulations is the codification of the general and permanent rules and regulations published in the Federal Register by the executive departments and agencies of the federal government of the United States.
Example: The importer referred to the Code of Federal Regulations to understand the specific rules for importing certain goods into the United States.

Commerce Country Chart

Definition: The Commerce Country Chart is part of the U.S. Export Administration Regulations (EAR) that a company refers to for each of its exports to determine if a license is needed from the Department of Commerce, based on the destination of the item and the reason for control.
Example: The exporter used the Commerce Country Chart to determine if they needed a license to export their product to a particular country.

Commercial Invoice

Definition: A commercial invoice is a legal document between the supplier and the customer that describes the sold goods, and the amount due by the customer. It is often used by governments to determine the true value of goods when assessing customs duties.
Example: The supplier provided a commercial invoice to the customer detailing the goods sold and the total amount due.

Commodity

Definition: A commodity is a basic good used in commerce that is interchangeable with other goods of the same type. In terms of shipping, it often refers to the type of goods being transported.
Example: Crude oil is a commodity that is frequently traded and shipped globally.

Common law

Definition: Common law is a system of law based on precedent and customs. It originated in England and is the basis of legal systems in many English-speaking countries.
Example: In a dispute over a shipping contract, the judge referred to common law precedents to make a ruling.

Compliance

Definition: In the context of shipping and trade, compliance refers to how well a company observes the laws and regulations of the countries with which it does business.
Example: The export company hired a compliance officer to ensure they were following all applicable international trade laws and regulations.

Concealed Loss/Concealed Damage

Definition: Concealed loss or damage refers to damage or loss of goods that is not apparent until the recipient has unpacked the goods.
Example: The retailer filed a claim for concealed damage when they discovered a broken product after unpacking the shipment.

Connecting Carrier

Definition: A connecting carrier is a transportation line over which a shipment moves but on which neither the point of origin nor destination is located.
Example: The freight from Los Angeles to Berlin used a connecting carrier in New York.

Consignee

Definition: The consignee is the person or company to whom commodities are shipped.
Example: The consignee on the bill of lading was the company receiving the imported goods.

Consignment

Definition: Consignment is a shipment of goods from a consignor to a consignee. In the context of sales, it refers to goods sent by their owner (the consignor) to an agent (the consignee), who undertakes to sell the goods.
Example: The supplier sent a consignment of goods to the retailer who agreed to sell them in their store.

Consignor

Definition: The consignor is the person or firm that sends freight. They're also considered the seller or shipper.
Example: The consignor on the shipping label was the company that dispatched the goods.

Consolidation

Definition: Consolidation is the practice of combining smaller shipments into a single shipment to save on transportation costs.
Example: The freight forwarder offered consolidation services to small businesses to help them reduce shipping costs.

Consul

Definition: A consul is an official appointed by a government to live in a foreign city and protect and promote the government's citizens and interests there.
Example: The exporter sought assistance from the local consul to understand specific trade regulations in the foreign market.

Consumption Entry

Definition: A Consumption Entry is a Customs declaration describing goods imported into the United States for direct consumption rather than for storage in a bonded warehouse. It is the most common type of Customs Entry.
Example: The importer filed a Consumption Entry for the goods they were importing because they were destined for immediate use in their manufacturing process.

Container

Definition: A Container is a standard-sized large box into which cargo is packed for shipment. Commonly seen types are 20ft, 40ft, 40ft HC (High Cube), and refrigerated containers.
Example: The shipping company loaded the goods into a 40-foot container for sea freight transport.

Container Load

Definition: A Container Load is a shipment of goods sufficient in size or weight to fill a container. The two types are Full Container Load (FCL) and Less Than Container Load (LCL).
Example: The exporter had enough goods to fill a 20-foot container, constituting a full container load.

Container Manifest

Definition: A Container Manifest is a detailed list of all the bills of lading issued by a carrier or its agent for a specific voyage of a specific vessel. In a broader sense, it means all cargoes loaded in a particular ship.
Example: The ship captain reviewed the container manifest to ensure all cargoes were correctly loaded.

Contraband

Definition: Contraband refers to goods that are against the law to trade or to be imported or exported.
Example: The customs officer seized the contraband goods that were found in the shipment.

Contract

Definition: A Contract is a legal agreement between two or more parties that is enforceable by law. In shipping, a contract may be formed between a shipper and a carrier, detailing terms like price, delivery location, and delivery time.
Example: The shipper and carrier agreed on terms and signed a shipping contract.

Country of Origin

Definition: The Country of Origin refers to the country in which a product or commodity was produced or made.
Example: The jeans were labeled with a "Made in USA" tag to denote the United States as their country of origin.

CPT (Carriage Paid To)

Definition: CPT is an Incoterm where the seller delivers the goods to the carrier or another person nominated by the seller at an agreed place and the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination.
Example: Under CPT terms, the seller was responsible for paying the freight to the buyer's nominated place of delivery.

C-TPAT

Definition: Customs-Trade Partnership Against Terrorism (C-TPAT) is a voluntary government-business initiative to build cooperative relationships that strengthen and improve overall international supply chain and U.S. border security.
Example: The company became a C-TPAT member to ensure they were contributing to the security of the supply chain and the U.S. borders.

Customs Broker

Definition: A Customs Broker is a professional who is licensed to act as an agent for importers/exporters in handling the necessary formalities involved in shipping goods internationally. This includes preparing documents, paying duties, arranging for cargo inspection, and facilitating communication between the government and the importer or exporter.
Example: The importer hired a customs broker to handle the customs clearance process for their goods.

Cu.

Definition: Short for cubic, cu. is a unit of volume measurement used in shipping. It's typically used in conjunction with another unit of measurement to denote cubic feet, cubic meters, cubic inches, etc.
Example: The shipping box was labeled as having a volume of 2 cu. meters.

Cube Out

Definition: Cube out refers to the situation when a piece of equipment has reached its volumetric capacity before its permitted weight limit.
Example: The container cubed out when all the goods were loaded, even though it had not yet reached its weight capacity.

Customhouse

Definition: A customhouse is the office at any seaport or airport where the duties or tariffs on imported goods are collected by the government.
Example: The imported goods had to clear the customhouse before they could be transported to the buyer's warehouse.

Customs

Definition: Customs refers to the government service that is responsible for levying and collecting taxes on imported and exported goods. It is also responsible for controlling the flow of goods including animals, personal effects, and hazardous items, into and out of a country.
Example: The exporter had to submit various documents to customs before shipping goods overseas.

Customs Bonded Warehouse

Definition: A Customs Bonded Warehouse is a building or other secured area in which dutiable goods may be stored, manipulated, or undergo manufacturing operations without payment of duty.
Example: The imported goods were stored in a customs bonded warehouse until the importer paid the required customs duties.

Customs Broker

Definition: A Customs Broker is a professional who is licensed to act as an agent for importers/exporters in handling the necessary formalities involved in shipping goods internationally. This includes preparing documents, paying duties, arranging for cargo inspection, and facilitating communication between the government and the importer or exporter.
Example: The importer hired a customs broker to handle the customs clearance process for their goods.

Customs Clearance

Definition: Customs clearance is the procedure of getting approval from customs authorities to transport goods across international borders. This involves the preparation and submission of required documentation and the payment of duties and taxes.
Example: The shipping company handled the customs clearance for the imported goods, ensuring they could legally enter the country.

Customs Entry

Definition: A Customs Entry is a declaration of specific details about exported or imported goods, such as type, value, and quantity. It is submitted to Customs authorities as part of the process of importing or exporting goods across international borders.
Example: The customs broker prepared a customs entry to declare the goods being imported into the country.

Customs Invoice

Definition: A customs invoice is a document that contains information about the goods being shipped, used by customs authorities to assess customs duties. It generally includes details such as the description of the goods, prices, quantities, the country of origin, and the recipient.
Example: The exporter included a customs invoice in the shipment to provide information to the customs authorities.

Customs of the Port (COP)

Definition: Customs of the Port refers to the traditional and customary practices observed by a particular port regarding the loading and unloading of cargo, port charges, and rules and regulations.
Example: The shipping company familiarized itself with the customs of the port before docking and unloading goods.

Customs Value Only

Definition: Customs Value Only is the value of the imported goods, which is used for the calculation of customs duty. It does not include freight, insurance, and other charges incurred in bringing the merchandise to the United States.
Example: The importer declared the customs value only of the goods on the customs entry form.

Cut-Off Time

Definition: The cut-off time is the latest time cargo may be delivered to a terminal for loading onto a scheduled train or ship or plane.
Example: The shipping company informed the client that the cut-off time for cargo delivery was 5:00 PM on Friday.

Dangerous Goods

Definition: Dangerous goods are items or substances that when transported by land, air, or sea, pose a risk to health, safety, property, or the environment. These include explosive, flammable, corrosive, infectious, or radioactive items.
Example: The shipping company had to follow special protocols to transport the dangerous goods safely.

Dangerous Goods Declaration

Definition: A Dangerous Goods Declaration is a document that provides details of the hazardous materials being transported. It serves to communicate the risks involved and the precautions to be taken during transportation.
Example: The shipper prepared a Dangerous Goods Declaration for the shipment of industrial chemicals.

DAP (Delivered at Place)

Definition: DAP is an Incoterm where the seller delivers the goods when they are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination. The seller bears all risks involved in bringing the goods to the named place.
Example: Under DAP terms, the seller was responsible for arranging transport and bearing all risks until the goods were ready for unloading at the buyer's premises.

Destination Control Statement

Definition: A Destination Control Statement is a legal statement required by the U.S. Export Administration Regulations and the International Traffic in Arms Regulations. It declares that the item can only be shipped to the destination stated on the export license or authorized by law.
Example: The exporter included a Destination Control Statement on the shipping documents to ensure the goods were not diverted en route.

DDTC

Definition: The Directorate of Defense Trade Controls (DDTC) is a part of the U.S. State Department which is charged with controlling the export and temporary import of defense articles and services.
Example: The exporter had to ensure compliance with DDTC regulations when exporting defense-related equipment.

D&H

Definition: D&H stands for Danger and Hazard. It is used in shipping to refer to goods that pose danger or hazard during transportation.
Example: The shipment was marked with D&H to alert everyone involved in the transport process of the associated risks.

DBA

Definition: DBA stands for "Doing Business As". It is a term used to denote a trade name or fictitious business name under which a business operates.
Example: The company, formally known as Smith Import-Export LLC, was doing business as Smith Global Trading.

DDP (Delivered Duty Paid)

Definition: DDP is an Incoterm where the seller is responsible for delivering the goods to the buyer's location, covering all costs and risks, including import duties and taxes.
Example: Under DDP terms, the seller had to bear all costs, including import duties, to deliver the goods to the buyer's warehouse.

Deconsolidation Point

Definition: A deconsolidation point is a location where a shipment is unpacked and its components are distributed to their respective destinations.
Example: The shipping container was sent to the deconsolidation point, where the various goods inside were distributed to their final destinations.

Deemed Export

Definition: Deemed export refers to the transfer of technology or source code (except encryption source code) to a foreign national within the United States.
Example: The transfer of proprietary technology to a foreign engineer working within the U.S. was considered a deemed export, and therefore required a license.

Delivery Receipt

Definition: A delivery receipt is a document that confirms the delivery of goods. It is typically signed by the recipient and returned to the shipper as proof of delivery.
Example: The truck driver received a signed delivery receipt when he dropped off the goods at the buyer's warehouse.

Demurrage/Detention

Definition: Demurrage refers to the charge that the shipper must pay for the extended use of the shipping container at the port beyond the free time allowed by the carrier. Detention is the charge for holding the shipping container outside the port beyond the free time.
Example: Due to a delay in customs clearance, the shipper had to pay demurrage for the extra days the container was at the port.

Denied Party Screening

Definition: Denied Party Screening is the process of cross-referencing the names of parties involved in an export transaction against a list of parties that the government has identified as denied parties. Doing business with a denied party is usually illegal.
Example: As part of their compliance efforts, the exporting company performed a denied party screening before shipping goods to a new customer overseas.

Destination Control Statement

Definition: A Destination Control Statement is a legal statement that appears on the commercial invoice, bill of lading, and other shipping documents, notifying the carrier and all foreign parties that the item can only be shipped to certain destinations.
Example: The exporter included a Destination Control Statement on all shipping documents to ensure that the goods would not be diverted to a different destination.

Discrepancy

Definition: A discrepancy in shipping refers to any differences between the details provided in the shipping documents and the actual goods shipped or received, such as quantity, description, weight, quality, etc.
Example: The consignee found a discrepancy in the shipment received, as the weight of the goods was less than what was mentioned in the shipping documents.

Distribution Center

Definition: A distribution center is a warehouse or other specialized building that stores goods and products. These centers are the foundation of a supply network, as they allow a single location to stock a vast number of products.
Example: The goods were sent to the company's main distribution center before being delivered to retail locations around the country.

Diversion

Definition: In shipping, diversion refers to the act of changing the route or destination of a cargo shipment after it has been dispatched.
Example: Due to a storm, the shipping company had to enact a diversion, routing the ship to a different port than originally planned.

Dock

Definition: A dock is a structure along the shore of a harbor or on the bank of a river or canal where ships may dock to load and unload cargo or passengers.
Example: The cargo ship was carefully navigated to the dock for unloading.

Dock Receipt

Definition: A dock receipt is a document issued by a shipping company that acknowledges that goods have been received for shipment.
Example: Upon receiving the goods at the dock, the shipping company issued a dock receipt to the exporter.

DOT

Definition: DOT stands for the Department of Transportation, a U.S. federal agency that oversees national transportation networks.
Example: The shipping company had to comply with DOT regulations regarding the transport of hazardous materials.

DPU (Delivered at Place Unloaded)

Definition: DPU is an Incoterm where the seller delivers when the goods, once unloaded from the arriving means of transport, are placed at the disposal of the buyer at a named place of destination.
Example: Under DPU terms, the seller arranged for the goods to be unloaded at the buyer's specified location.

Drawback

Definition: A drawback is a refund of duties, internal revenue taxes, and certain fees collected upon the importation of goods. These refunds are only issued upon the exportation or destruction of goods.
Example: The importer was able to get a drawback on the import duty paid as the imported goods were subsequently exported.

Drayage

Definition: Drayage is the process of transporting goods over short distances, typically from the dock to a warehouse or from a warehouse to the final delivery point.
Example: The freight forwarder arranged for drayage of the cargo from the port to the local warehouse.

Drop Shipping

Definition: Drop shipping is a supply chain management method in which the retailer does not keep goods in stock but instead transfers the customer orders and shipment details to either the manufacturer, another retailer, or a wholesaler, who then ships the goods directly to the customer.
Example: The online retailer used a drop shipping model, sending customer orders directly to the manufacturer for fulfillment.

Due Diligence

Definition: Due diligence is the care that a reasonable person or business exercises to avoid harm to other persons or their property. In the context of shipping, it can refer to ensuring compliance with all regulations, verifying the legitimacy of counterparties, or inspecting goods before shipment.
Example: The exporter performed due diligence to ensure that they were not inadvertently violating any export controls.

Dumping

Definition: Dumping in the international trade context refers to the act of selling a product in a foreign market at a price lower than its domestic price or below its cost of production. This is typically done to increase market share or drive out competition.
Example: The foreign company was accused of dumping after it sold its products in the local market at significantly lower prices than in its home market.

Dutiable Value

Definition: Dutiable value is the amount on which customs duty will be calculated. It is generally based on the cost, insurance, and freight (CIF) value of the goods, but specific calculation methods can vary by country and type of goods.
Example: The customs officer calculated the dutiable value of the imported goods to determine the amount of import duty to be paid

Duties

Definition: Duties are taxes imposed on importation and exportation of goods. They are usually calculated as a percentage of the goods' value, though some may be based on quantity or weight. Duties serve to protect domestic industries, generate government revenue, or both.
Example: The importer had to pay duties on the goods imported from China, which added to the overall cost of the goods.

EAR

Definition: The Export Administration Regulations (EAR) are a set of regulations which are administered by the Bureau of Industry and Security under the U.S. Department of Commerce. These regulations are primarily export control laws for dual-use items or commercial items that have military applications.
Example: The exporter had to comply with EAR in order to legally export their dual-use technology.

ECCN

Definition: The Export Control Classification Number (ECCN) is a five-character alphanumeric key used in the Commerce Control List (CCL) to identify dual-use items for export control purposes.
Example: The exporter had to determine the ECCN of their product to understand the specific export controls applicable to it.

eCO

Definition: An eCO, or Electronic Certificate of Origin, is a document used in international trade, which certifies that the product being exported has been produced, manufactured or processed in a particular country.
Example: The exporter submitted the eCO to prove that the products being exported were indeed made in the United States.

EEI

Definition: Electronic Export Information (EEI) is the electronic data filed by exporters or their agents, such as freight forwarders, with the U.S. Census Bureau to report exports as required by law.
Example: The exporter filed the EEI for their shipment, detailing the value, destination, and other key details of the export

Electronic Data Interchange (EDI)

Definition: EDI is the electronic interchange of business information using a standardized format. It replaces paper-based document exchange and allows for faster, more efficient transactions.
Example: The freight forwarder used an EDI system to transmit shipping instructions to the carrier electronically.

Embargoes

Definition: Embargoes are official bans on trade or other commercial activity with a particular country. These may be put in place for political or economic reasons.
Example: Due to an international conflict, the government imposed embargoes on trade with certain countries, preventing the exporter from shipping goods to those regions.

Eminent Domain

Definition: Eminent domain is the power of a state, national, or federal government in the United States to take private property for public use. It may affect the logistics and placement of shipping facilities or routes.
Example: The local government used its power of eminent domain to take over private land for the construction of a new port facility.

Empty Repo

Definition: In shipping, 'Empty Repo' refers to the repositioning of empty containers from areas of low or zero demand to areas of high demand.
Example: To balance the availability of containers, the shipping line organized an empty repo from the inland depot to the seaport where demand was high.

End-User

Definition: The end-user is the ultimate user or consumer of a product, often in a different country from the seller or exporter.
Example: The manufacturer in China had to ensure the electronics were compliant with regulations in the United States, where the end-users were located

Endorsement

Definition: An endorsement is a signature, stamp, or other indication that a document or term is accepted or ratified. In shipping, bills of lading may be endorsed to transfer title to the goods to a different party.
Example: The bill of lading was endorsed by the shipper, transferring ownership of the goods to the buyer.

Entry

Definition: In shipping and logistics, an entry refers to the documentation necessary to admit goods into a country for importation.
Example: The importer had to prepare a customs entry to get the goods through customs and into the country.

Equipment Interchange Receipt (EIR)

Definition: An Equipment Interchange Receipt is a document recording the interchange of equipment (typically a container) from one party to another. It confirms the condition of the container when the transfer occurs.
Example: The freight forwarder provided the trucking company with an EIR when they picked up the container from the port.

ERP

Definition: Enterprise Resource Planning (ERP) is a system of integrated software applications that standardizes, streamlines, and integrates business processes across finance, human resources, procurement, distribution, and other departments.
Example: The logistics company used an ERP system to manage its operations and streamline its shipping processes.

ETA, ETC, ETD, ETR, ETS

Definition: These acronyms stand for Estimated Time of Arrival (ETA), Estimated Time of Completion (ETC), Estimated Time of Departure (ETD), Estimated Time of Readiness (ETR), and Estimated Time of Sailing (ETS), respectively. They are commonly used in shipping to designate various expected times related to the shipping process.
Example: The ETA for the cargo ship was 5 PM, but the ETD for the following shipment was 8 PM.

Exception

Definition: In shipping, an exception refers to any event that alters the expected course of shipping, such as damage to the shipment, a delay, or a change in route.
Example: Due to bad weather, the shipping company had to log an exception in the tracking information as the ship was forced to take a longer route.

Exclusive Use

Definition: Exclusive use refers to the shipping practice where a shipper pays for the use of an entire shipping container, truck, or other means of transport, regardless of whether the shipment takes up all the space.
Example: The shipper paid for exclusive use of a container to prevent their delicate goods from being damaged by other cargo.

Explanatory Notes

Definition: Explanatory Notes provide detailed descriptions of the scope of each heading and subheading in the Harmonized System, a standardized system of names and numbers to classify traded products. They help in correctly classifying products for customs purposes.
Example: The exporter referred to the Explanatory Notes in the Harmonized System to ensure they classified their products correctly on their shipping documentation.

Export

Definition: Export refers to the act of sending goods or services from one country to be used or consumed in another country.
Example: The company exported medical devices from the United States to hospitals in Germany.

Export Compliance Program (ECP)

Definition: An Export Compliance Program is a set of procedures to ensure that a company exports goods in compliance with national and international export laws and regulations.
Example: The tech company had a rigorous ECP to avoid violations of international export controls related to their sophisticated software

Export Controls/Import Controls

Definition: Export and import controls are laws and regulations governing the movement of goods across national borders. They can include prohibitions on shipping certain goods to certain countries, licensing requirements, or tariff and tax implications.
Example: The company had to ensure their shipments complied with all applicable export controls, including obtaining any necessary licenses.

Export Documentation Software

Definition: Export documentation software is a type of software used to automate and manage the creation of necessary export documents, including commercial invoices, packing lists, and shipper's letters of instruction.
Example: The freight forwarder used export documentation software to streamline their documentation processes and reduce the risk of errors.

Export License

Definition: An export license is a government document that authorizes the export of specific goods in specific quantities to a particular destination.
Example: The company had to obtain an export license before they could send certain types of technology overseas.

Export Management Company

Definition: An Export Management Company (EMC) is a company that handles a business's exports operations. They can perform all the functions that a business's own export department would execute.
Example: The small business hired an EMC to handle their international sales and shipping, allowing them to focus on domestic operations.

EXW (ExWorks)

Definition: EXW, or Ex Works, is an international trade term that means the seller fulfills their obligation to deliver when they make the goods available at their premises (such as a warehouse or factory) to the buyer. In an EXW transaction, the buyer bears all the costs and risks involved in taking the goods from the seller's location to the desired destination.
Example: In their agreement, the terms were set as EXW, meaning the buyer had to arrange and pay for all shipping and logistics from the seller's warehouse.

FAK

Definition: Freight All Kinds (FAK) is a term used in the freight industry describing a mixed container load of different types of products.
Example: The shipper used an FAK rate to ship a container filled with both machinery parts and textiles.

False Billing

Definition: False billing refers to a fraudulent practice involving incorrect or misleading information on invoices, often with the aim of charging more or avoiding taxes or duties.
Example: The company was investigated for false billing, after they were suspected of under-declaring the value of their exported goods.

FAS (Free Alongside Ship)

Definition: FAS is an international trade term which means that the seller fulfills their obligation to deliver when the goods have been placed alongside the vessel at the named port of shipment. Under FAS, the buyer has to bear all costs and risks of loss or damage to the goods from that point.
Example: Under FAS terms, the seller was responsible for delivering the goods to the port, but the buyer was responsible for the cost and risk of loading them onto the ship.

FCA (Free Carrier)

Definition: FCA, or Free Carrier, is an international trade term that means the seller fulfills their obligation to deliver the goods to the carrier nominated by the buyer at the named place. The risk of loss or damage to the goods is transferred from the seller to the buyer at that point.
Example: The terms of the contract were FCA, so the seller had to deliver the goods to the buyer's chosen carrier at the agreed place.

Federal Maritime Commission (FMC)

Definition: The Federal Maritime Commission is the U.S. federal agency responsible for regulating the U.S. international ocean transportation system for the benefit of U.S. exporters, importers, and the U.S. consumer.
Example: The shipping company had to ensure compliance with all FMC regulations in their ocean transport operations.

Federal Register

Definition: The Federal Register is the official journal of the federal government of the United States, published daily. It contains government agency rules, proposed rules, and public notices.
Example: The new export regulations were published in the Federal Register, providing companies with legal notice of the changes.

FEU (Forty-Foot Equivalent Unit)

Definition: FEU stands for "Forty-foot Equivalent Unit" and is a measure used in the shipping industry for capacity and volume of a container. A 40-foot long container is standardly referred to as one FEU.
Example: The shipping company charged their customers based on the number of FEUs they needed to transport their goods.

FOB (Free on Board)

Definition: FOB, or Free On Board, is an international trade term that indicates when the risk and ownership of goods is transferred from a seller to a buyer. The seller is required to deliver the goods on board the ship, at which point the risk transfers to the buyer.
Example: Under FOB terms, the seller was responsible for getting the goods on board the ship, but then all risk was assumed by the buyer.

Force Majeure

Definition: Force Majeure is a common clause in contracts that essentially frees both parties from liability or obligation when an extraordinary event or circumstance beyond the control of the parties, such as a war, strike, riot, crime, or an event described as an act of God (like flooding, earthquake, volcano), prevents one or both parties from fulfilling their obligations under the contract.
Example: The shipping company invoked the force majeure clause in their contract when a hurricane prevented them from delivering the goods on time.

Fore and Aft

Definition: In maritime parlance, fore refers to the front of a ship and aft refers to the rear of a ship.
Example: The cargo was stowed both fore and aft in the vessel to balance the load.

Foreign Trade Zone

Definition: A Foreign Trade Zone (FTZ) is a designated area within a country where goods can be imported, stored, and processed without being subject to customs duties and taxes.
Example: The imported parts were kept in a Foreign Trade Zone until they were used in manufacturing, which helped the company avoid paying import duties.

FPPI

Definition: Foreign Principal Party in Interest (FPPI) is a term used in U.S. exporting regulations to refer to the party abroad who purchases the goods for export or to whom final delivery or end-use of the goods will be made.
Example: The company had to include information about the FPPI in their export documentation.

Free Time

Definition: Free Time is the period during which demurrage fees (fees for extended storage time at a port, terminal, or depot) do not apply.
Example: The shipping company allowed for three days of free time at the port before they started charging demurrage fees.

Freight

Definition: Freight refers to goods being transported from one place to another, usually over a considerable distance, or the payment for that service.
Example: The company sent a large freight of electronics from their factory in China to their distribution center in the U.S.

Freight Broker

Definition: A Freight Broker is an individual or company that acts as a liaison between a shipper and a freight carrier to facilitate the movement of freight.
Example: The company hired a freight broker to ensure their goods were shipped efficiently and cost-effectively.

Freight Forwarder

Definition: A freight forwarder is a business that organizes shipments for individuals or other companies to get goods from the manufacturer or producer to a market, customer, or final point of distribution.
Example: The manufacturer used a freight forwarder to manage the complex logistics of international shipping for their products.

FTA

Definition: FTA stands for Free Trade Agreement, an agreement between two or more countries to establish a free trade area where commerce in goods and services can be conducted across their common borders, without tariffs or hindrances.
Example: The Canada-Mexico-USA FTA, or USMCA, eliminated many tariffs and increased trade between these three countries.

FTR

Definition: FTR stands for Foreign Trade Regulations, U.S. regulations that contain the legal requirements for maintaining export control over certain goods, technologies, and services.
Example: The exporter had to familiarize himself with the FTR to ensure he was not violating any laws when shipping his products abroad.

Full Truckload (FTL)

Definition: Full Truckload is a shipping term that refers to when the quantity of goods being shipped can fill an entire truck or when the shipper decides to dedicate an entire truck to their goods, regardless of the size of the shipment.
Example: The manufacturer had enough goods to fill an entire truck, so they opted for FTL shipping to avoid having their products mixed with others.

General Agreement on Tariffs and Trade (GATT)

Definition: GATT was a multilateral agreement regulating international trade. Its purpose was to promote international trade by reducing or eliminating trade barriers such as tariffs or quotas.
Example: Under the principles of GATT, many countries agreed to reduce their tariffs, encouraging more global trade.

General Order

Definition: In the context of international shipping, general order is a term used to describe the status of imported goods that are missing the necessary documentation for entry into the United States. These goods are moved to a general order warehouse until the documentation is provided and fees are paid.
Example: The shipment of electronics was placed in general order until the missing customs form was provided.

Gross Vehicle Weight (GVW)

Definition: Gross Vehicle Weight is the maximum allowable total weight of a vehicle, including the weight of the vehicle itself plus fuel, passengers, cargo, and trailer tongue weight.
Example: The truck driver had to check the GVW to make sure he was not exceeding the weight limit with his cargo.

Harbor

Definition: A harbor is a sheltered body of water where ships, boats, and barges can be docked. The term harbor is often used interchangeably with port, which is a man-made facility built for loading, unloading, and repair of ships, boats, and other water vehicles.
Example: The harbor was busy with cargo ships being loaded and unloaded.

Harbor Master

Definition: A Harbor Master is an official responsible for enforcing the regulations of a particular harbor or port, in order to ensure the safety of navigation, the security of the harbor and the correct operation of the port facilities.
Example: The Harbor Master was tasked with overseeing the comings and goings of all vessels in the port.

Hatch

Definition: A hatch is a cargo opening in a ship's deck.
Example: The crew worked tirelessly to load cargo through the hatch.

Hazardous Materials (HazMat)

Definition: Hazardous materials, abbreviated as HazMat, are substances or materials that could pose a risk to health, safety, or property when transported. The term is often used in the context of transportation regulations governing the handling, packaging, and transporting of hazardous materials.
Example: Special training was required for the workers handling the HazMat shipment of industrial chemicals.

HMF

Definition: HMF stands for Harbor Maintenance Fee, a fee imposed by U.S. Customs and Border Protection for port use, or the entry or ad valorem duty into the U.S. via seaports.
Example: The shipping company had to factor in the HMF when calculating the total cost of transporting goods to U.S. ports.

House Bill of Lading

Definition: The House Bill of Lading (HBL) is a document issued by a freight forwarder to the shipper after receiving the goods, and serves as a contract between the shipper and the forwarder for the transportation of goods.
Example: The freight forwarder issued the House Bill of Lading once they had the goods in their possession, confirming that they had received the goods and were responsible for their transportation.

HS

Definition: HS stands for Harmonized System, an internationally standardized system of names and numbers to classify traded products.
Example: The company had to find the correct HS code for their product in order to complete their shipping documents.

HTSUS

Definition: The Harmonized Tariff Schedule of the United States (HTSUS) is a system for classifying goods for import and export purposes, based on the international Harmonized System (HS).
Example: In order to determine the import duty, the business needed to look up their product in the HTSUS.

IMDG

Definition: The International Maritime Dangerous Goods (IMDG) code is an internationally agreed regulation, developed by the International Maritime Organization, which sets out the requirements for shipping dangerous goods by sea.
Example: The company had to comply with the IMDG code when shipping their hazardous materials by sea.

Import

Definition: Import refers to the act of bringing goods or services into a country from abroad for the purpose of selling them.
Example: The company decided to import components from China because they were cheaper than domestic options.

Import Declaration

Definition: An Import Declaration is a document that a country's customs department requires to be filled out by all individuals or corporations that are importing goods into that country.
Example: The importer had to fill out an Import Declaration, detailing what goods were being brought into the country, their value, and their country of origin.

Import License

Definition: An Import License is a document issued by a national government authorizing the importation of certain goods into its territory.
Example: Some goods, like certain foods and textiles, require an Import License to be brought into the country.

In Bond

Definition: In bond is a term applied to the status of merchandise admitted provisionally to a country without payment of duties -- either for storage in a bonded warehouse or for transshipment to another point, where duties will eventually be imposed.
Example: The goods were held in bond at the warehouse until the importer paid the necessary customs duties.

Incoterms

Definition: Incoterms (International Commercial Terms) is a series of predefined commercial terms published by the International Chamber of Commerce (ICC). They are widely used in international commercial transactions and procurement processes, and their purpose is to communicate the tasks, costs, and risks associated with the transportation and delivery of goods.
Example: The company had to carefully consider which incoterm to use when drafting their contract, as it would determine who was responsible for the goods at various points in the shipping process.

Interchange Point

Definition: An interchange point is a location where freight moving from one territory to another is interchanged between transportation lines.
Example: At the interchange point, the cargo was transferred from the train to a truck for the final leg of its journey.

Intermodal

Definition: Intermodal refers to the use of more than one mode of transport to move goods. This could involve a combination of ship, truck, and/or rail.
Example: The company chose an intermodal transportation solution to ship their goods because it was the most cost-effective and efficient option.

International Chamber of Commerce (ICC)

Definition: The International Chamber of Commerce is a global organization that develops and promotes rules and standards for businesses, including those related to trade and finance.
Example: The ICC provides a forum for businesses and other organizations to discuss and agree upon major issues and policies of trade and investment.

Inward Foreign Manifest (IFM)

Definition: The Inward Foreign Manifest (IFM) is a document submitted to the customs agency that lists all goods being imported into the country via a specific vessel.
Example: The shipping company had to submit the Inward Foreign Manifest to Customs when their ship arrived at the port.

ISPM 15

Definition: The International Standards For Phytosanitary Measures No. 15 (ISPM 15) is an international standard for the treatment of wood used in international trade, including wooden packaging materials, to prevent the spread of pests.
Example: The wooden crates used for the shipment had to comply with ISPM 15 regulations to be accepted for international shipping.

ITAR

Definition: The International Traffic in Arms Regulations (ITAR) is a set of U.S. government regulations that control the export and import of defense-related articles and services.
Example: The company had to ensure their export of military equipment was in compliance with ITAR.

JIT

Definition: JIT stands for Just-In-Time, a production strategy that focuses on producing items at the exact time they are needed in the production process to reduce inventory costs.
Example: The manufacturing company implemented a JIT system to minimize the amount of inventory they had to store.

J-List

Definition: J-list refers to the list of items that are eligible for export from the United States under a license exception, as per the U.S. Export Administration Regulations (EAR).
Example: The exporter checked the J-list to see if their product qualified for a license exception under the EAR.

Laden

Definition: Laden refers to a vessel that has been loaded with cargo. In the context of containerized cargo, a laden container is one that is full of cargo, as opposed to being empty.
Example: The ship, now laden with containers, set off for its destination.

Landed Cost

Definition: Landed cost is the total price of a product once it has arrived at a buyer's door. The landed cost includes the original price of the product, all transportation fees (both inland and ocean), customs, duties, taxes, insurance, currency conversion, crating, handling and payment fees.
Example: The importer calculated the landed cost to determine the final cost of the product, including all shipping and customs charges.

Less-than-Truckload, Less-than-Load (LTL)

Definition: Less than truckload (LTL) is a shipping term for relatively small loads or quantities of freight. LTL carriers typically transport small shipments of freight from many companies in a single vehicle.
Example: For smaller shipments, the company decided to go with an LTL freight carrier to save on costs.

Letter of Credit

Definition: A letter of credit is a document issued by a bank that essentially acts as an irrevocable guarantee of payment to a seller. If the buyer is unable to fulfill their payment obligation, the bank pays on their behalf.
Example: To give the seller peace of mind, the buyer arranged for their bank to provide a letter of credit.

License Exception

Definition: A License Exception is a provision that allows for the export or re-export, under stated conditions, of items subject to the Export Administration Regulations that would otherwise require a license.
Example: Though normally a license would be needed to export the high-tech equipment, a License Exception allowed the company to bypass this requirement due to certain conditions.

Liquidated Damages

Definition: Liquidated damages are a predetermined compensation amount that is set when a contract is entered into, to be paid if the contract is breached. They represent a genuine pre-estimate of loss.
Example: The shipping contract stated that any late delivery would result in liquidated damages being charged to the shipping company.

Liquidation

Definition: In the shipping industry, liquidation refers to the final computation or ascertainment of the duties accruing on an entry.
Example: After the goods cleared customs, the duties were assessed, and liquidation occurred once the duties were paid in full.

List

Definition: In a maritime context, the "list" refers to the leaning or tilting of a ship to one side due to uneven loading of cargo.
Example: The improper loading of heavy machinery on the ship caused it to have a significant list.

Logistics

Definition: Logistics is the process of planning, implementing, and controlling procedures for the efficient and effective transportation and storage of goods, from the point of origin to the point of consumption.
Example: The company hired a logistics firm to manage the transportation and storage of their goods.

Longshoreman

Definition: A longshoreman is a laborer who works in a port, loading and unloading ships.
Example: The longshoremen were responsible for unloading the containers from the ship and loading them onto trucks.

Malpractice

Definition: Malpractice refers to negligence or incompetence on the part of a professional. In the context of shipping and logistics, this might refer to a freight forwarder or customs broker not following the proper procedures or regulations.
Example: The shipper sued their freight forwarder for malpractice after they failed to correctly handle the customs paperwork, resulting in a significant fine.

Maritime

Definition: Maritime refers to anything related to the sea or navigation, including commerce, navigation, or the ships themselves.
Example: The company engaged in maritime trade, importing goods by sea from around the world.

Marking

Definition: Marking refers to the labels, numbers, symbols, or other identifying details placed on packages or containers to identify the contents, origin, destination, and/or handling instructions.
Example: Proper marking of the shipment was crucial to ensure it reached its intended destination.

Master Bill of Lading

Definition: A master bill of lading is a transport document issued by a shipping line (carrier) to a freight forwarder (shipper). It covers the transport of the goods from the port of loading to the port of discharge.
Example: The freight forwarder received a master bill of lading from the shipping line, which they would use to issue house bills of lading to their customers.

Most Favored Nation (MFN)

Definition: Most Favored Nation (MFN) is a status granted by one country to another, promising the lowest possible trade restrictions. This means that the receiving country will enjoy the most favorable trade conditions that the granting country extends to any trade partner.
Example: The two countries entered into a Most Favored Nation agreement, which significantly reduced the tariffs on their mutual trade.

MPF

Definition: The Merchandise Processing Fee (MPF) is a fee collected by the U.S. Customs and Border Protection from importers for the processing of entries of merchandise into the United States.
Example: The importer factored in the MPF when calculating the total landed cost of their goods.

Multimodal

Definition: Multimodal refers to the use of multiple modes of transportation to complete a single journey. For instance, goods might be transported by truck to a port, by ship to another country, and then by rail to their final destination.
Example: The company opted for a multimodal shipping method to maximize efficiency and cost-effectiveness.

NAFTA

Definition: The North American Free Trade Agreement (NAFTA) was a treaty among the United States, Canada, and Mexico to eliminate most tariffs and other trade barriers among the participants. It was replaced by the United States-Mexico-Canada Agreement (USMCA) in 2020.
Example: Under NAFTA, many goods could be traded among the United States, Canada, and Mexico with zero or reduced tariffs.

NCBFAA

Definition: The National Customs Brokers & Forwarders Association of America (NCBFAA) is a national trade association that represents the interests of freight forwarders, customs brokers, ocean transportation intermediaries, and related businesses in the United States.
Example: The freight forwarder was a member of the NCBFAA and followed its professional standards and guidelines.

NEC, NES

Definition: NEC stands for Not Elsewhere Classified, and NES stands for Not Elsewhere Specified. These terms are used in the Harmonized System and Schedule B for classifying goods that do not have a specific classification.
Example: The unique product was classified as NEC in the Harmonized System, as there was no specific classification for it.

Negotiable/Non-Negotiable

Definition: In the shipping industry, this refers to whether a document (such as a bill of lading) can be transferred from one party to another. A negotiable document allows the transfer of goods to be redirected or ownership to be transferred. A non-negotiable document doesn't allow this.
Example: The negotiable bill of lading allowed the seller to maintain ownership of the goods until they received payment from the buyer.

Net Weight

Definition: Net weight is the weight of the goods alone without any immediate wrappings; that is, the weight of the contents of the package excluding packaging materials or containers.
Example: The net weight of the shipment, excluding the weight of the shipping container, was 10,000 kilograms.

Non-Dumping Certificate

Definition: A Non-Dumping Certificate is a certificate that declares that the export price is comparable to the price in the domestic market, or it is at least higher than the cost of production. It's used to ensure no dumping practice (selling a product in a foreign market at a price lower than its production cost or its market value in its domestic market) is being undertaken.
Example: To comply with trade laws, the exporter provided a Non-Dumping Certificate.

NVOCC

Definition: Non-Vessel Operating Common Carrier (NVOCC) is a cargo consolidator in ocean trades who will buy space from a carrier and re-sell it to smaller shippers. The NVOCC issues bills of lading, publishes tariffs, and otherwise conducts itself as an ocean common carrier, except that it does not provide the actual ocean or intermodal service.
Example: Small businesses that couldn't afford to book an entire shipping container often turned to NVOCCs to handle their shipments.

On Board

Definition: An On Board notation on a bill of lading indicates that the cargo has been loaded on board the designated vessel.
Example: Once the goods were loaded onto the ship, the "On Board" status was noted on the bill of lading.

On Deck

Definition: Cargo carried "On Deck" is carried on the deck of the ship rather than in the hold. Some goods or types of shipments may be noted as being on deck on a bill of lading.
Example: Due to the large size of the machinery being shipped, it was listed as "On Deck" cargo on the bill of lading.

Open Account

Definition: An open account is a trade arrangement in which goods are shipped to a foreign buyer without guarantee of payment. The obvious risk this method poses to the supplier makes it advantageous for the buyer in terms of cash flow and cost, but it is one of the most risky options for an exporter.
Example: Because of the high level of trust between the buyer and seller, they conducted their business on open account terms.

Operating Ratio

Definition: Operating Ratio is a company's operating expenses as a percentage of revenue. This financial ratio is most commonly used in industries that require a large percentage of revenues to maintain operations, such as the trucking industry.
Example: A shipping company with high operating expenses and low revenues might have an operating ratio of over 100%, indicating a financial loss.

Origin

Definition: In shipping terms, origin refers to the place where a shipment begins its journey.
Example: The origin of the shipment was Shanghai, China.

Overage

Definition: Overage is the number of units received over the original projected amount in a shipment.
Example: An overage was discovered when the receiving dock unpacked the shipment and found ten more units than had been listed in the shipping manifest.

Packing List

Definition: A packing list is a document that accompanies a shipment and lists the individual products and their quantities contained within. It does not include pricing information.
Example: The packing list showed that the shipment contained 100 units of Product A and 200 units of Product B.

Pallet

Definition: A pallet is a flat structure used as a base for the assembly, storage, stacking, handling, and transport of goods as a unit load. It's often made of wood, plastic, or metal.
Example: The goods were loaded onto pallets for efficient transportation and easy loading and unloading.

Panama-United States Trade Promotion Agreement

Definition: This is a treaty that eliminated most tariffs and other trade barriers on goods traded between the United States and Panama. It also included obligations for both countries on environmental and labor regulations, amongst other things.
Example: Thanks to the Panama-United States Trade Promotion Agreement, the U.S. exporter was able to ship goods to Panama with significantly reduced tariffs.

Parcel/Package/Small Parcel/Small Package

Definition: These terms refer to an individually packaged item or group of items. In the shipping industry, they often refer to goods that are boxed and ready for shipment via a parcel carrier.
Example: The e-commerce store shipped out hundreds of small parcels to customers each day.

Payee

Definition: The payee is the party in a transaction who receives payment.
Example: In the transaction, the supplier was the payee, as they received payment for the goods they sold.

Payer

Definition: The payer is the party in a transaction who makes a payment.
Example: The buyer was the payer, as they paid the supplier for the goods.

Payment Terms

Definition: Payment terms are the conditions under which a seller will complete a sale. They outline the amount of money to be paid, the schedule of payments, any discounts for early payment, and penalties for late payment.
Example: The payment terms for the sale were net 30, meaning the buyer had 30 days from the invoice date to pay the supplier.

Phytosanitary Inspection Certificate

Definition: A phytosanitary inspection certificate is a document issued by the plant health, agriculture, or other relevant government authority in the exporting country. It certifies that the specified plant or plant products have been inspected according to appropriate procedures and are considered to be free from quarantine pests and that they comply with the plant health regulations of the importing country.
Example: To export the lumber, a phytosanitary inspection certificate was required to prove it was free from harmful pests.

Pier

Definition: A pier is a raised structure in a water body where ships or boats can dock to load and unload cargo or passengers.
Example: The ship pulled into the pier to begin unloading its cargo.

Place of Delivery

Definition: Place of delivery is the final destination where a carrier agrees to transport a shipment. It's where the consignee or their agent takes custody of the shipment.
Example: The place of delivery for the shipment was the buyer's warehouse in Dallas.

Place of Receipt

Definition: Place of receipt is the location where the carrier or another appointed party takes custody of cargo for transport.
Example: The place of receipt for the shipment was the supplier's factory in Shanghai.

POD

Definition: Proof of Delivery (POD) is a document required from the carrier or driver for proper payment. POD includes the time of delivery, full delivery address, and the name and signature of the person who accepted the shipment.
Example: The logistics department kept track of all the PODs to make sure that all shipments had been delivered correctly.

Point of Origin

Definition: The point of origin is the location where a shipment physically begins its journey to the intended destination.
Example: The point of origin for the product was the manufacturer's warehouse in Chicago.

POL

Definition: Port of Loading (POL) refers to the port from which a particular shipment is to embark on the sea journey.
Example: The POL for the shipment of automobiles was the Port of Los Angeles.

Political Risk

Definition: Political risk refers to the risk that an investment's returns could suffer as a result of political changes or instability in a country. In shipping, it could refer to the risks associated with changes in customs regulations, tariffs, expropriation of assets, or political unrest.
Example: Before shipping goods to the foreign country, the exporter assessed the political risk.

Port

Definition: In shipping, a port is a city, town, or other place where ships load or unload. A port can be a seaport or an inland port.
Example: The port of Seattle is a busy seaport for cargo coming in from Asia.

Port of Call

Definition: A port of call is an intermediate stop for a ship on its sailing itinerary. At these ports, cargo ships may take on supplies or fuel, as well as unloading and loading cargo.
Example: The ship's first port of call was Singapore, where it unloaded some cargo and took on more for the next leg of its journey.

Port of Entry

Definition: A port of entry is a place where one may lawfully enter a country. It typically has a staff of people who enforce the country's immigration and customs laws.
Example: The Port of Entry for the goods coming from China was Los Angeles.

Port of Exit

Definition: The port of exit is the port at which a vessel is cleared for sailing to a foreign port.
Example: The port of exit for the shipment of goods was Rotterdam.

PPI

Definition: Prepayment Penalty Indicator (PPI) denotes whether there is a penalty for prepaying a shipment, often seen in some freight shipping contracts.
Example: The contract indicated a PPI, meaning the shipper would face a penalty if they tried to prepay the shipment.

Prepaid

Definition: Prepaid refers to freight charges that are paid by the consignor (shipper) before the shipment is delivered.
Example: The freight charges were prepaid, so the consignee didn't have to worry about payment upon delivery.

Product Classification

Definition: Product classification refers to the systematic organization of goods or commodities into groups based on established criteria such as the Harmonized System code. It's used to simplify the process of importing or exporting goods and for tariff and customs purposes.
Example: Correct product classification is crucial to ensuring the correct tariffs are applied during importation.

Proforma Invoice

Definition: A proforma invoice is a preliminary bill of sale sent to buyers ahead of a shipment or delivery of goods. It describes the items and details prices, shipping weight, and charges.
Example: The supplier sent a proforma invoice to the buyer for the goods to be shipped.

Quarantine

Definition: Quarantine in shipping refers to the period during which an arriving vessel, including its equipment, cargo, crew or passengers, suspected to carry or carrying a contagious disease is detained at its port of arrival without unloading.
Example: The ship was put into quarantine after one of the crew members fell ill with a contagious disease.

Quota

Definition: A quota in international trade is a government-imposed trade restriction limiting the number or value of goods a country can import or export during a particular period.
Example: The country placed a quota on the import of certain agricultural products to protect domestic farmers.

Quotation

Definition: A quotation in shipping is a document that a service provider gives to a customer to offer goods or services at a stated price, under specified conditions.
Example: The freight forwarder gave the exporter a quotation for the cost of shipping the goods to Europe.

Rate Basis

Definition: A rate basis is a specific detail on which freight charges are calculated. This could be based on various factors such as weight, value, quantity, volume, distance, and time.
Example: The rate basis for the shipping charges was per cubic meter of cargo.

Reasons for Control

Definition: Reasons for control refer to the export control regulations of a country that provide specific reasons for controlling the export of certain items. These reasons can be national security, anti-terrorism, nuclear proliferation, regional stability, etc.
Example: The reasons for control for the export of certain technologies were related to national security concerns.

RFP, RFQ

Definition: Request for Proposal (RFP) and Request for Quotation (RFQ) are standard business processes for soliciting proposals and quotes for services or goods. An RFP is used when the request requires technical expertise, specialized capability, or where the product or service being requested does not yet exist. An RFQ is used when you know exactly what you want but need to know the price.
Example: The company issued an RFP for a new logistics provider and an RFQ for office supplies.

Reasonableness

Definition: Reasonableness in shipping refers to the aspect of ensuring that the costs and procedures are reasonable and not overly burdensome or disproportionate to the service rendered.
Example: The reasonableness of the freight charges was questioned by the shipper.

Relay

Definition: A relay in shipping refers to the transfer of containers from one vehicle to another when the vehicle that has carried them to a terminal cannot wait until it is convenient to load them onto a departing vehicle.
Example: The cargo had to be relayed due to the delay in the arrival of the connecting vehicle.

Remittance

Definition: Remittance is the transfer of funds, often by a foreign worker to an individual in their home country. In the context of shipping, remittance may refer to the payment for goods or services that are being shipped.
Example: The remittance for the shipment was received before the goods left the warehouse.

Revenue

Definition: Revenue in shipping refers to the income that a shipping company or carrier receives from the transport of cargo.
Example: The shipping company's main source of revenue came from trans-Pacific routes.

Roll-on/Roll-off

Definition: Roll-on/Roll-off (RoRo) ships are vessels designed to carry wheeled cargo such as cars, trucks, semi-trailer trucks, trailers, and railroad cars that are driven on and off the ship on their own wheels or using a platform vehicle.
Example: The new car models were shipped from Germany to the United States using a Roll-on/Roll-off vessel.

Sanction

Definition: A sanction in international trade is a punitive measure imposed by one or more countries against a targeted country, individual, or entity. Sanctions can take the form of tariffs, trade barriers, import duties, and import or export licensing requirements, among others.
Example: The country was under international sanctions, which prohibited certain goods from being imported.

SBA

Definition: The Small Business Administration (SBA) is a U.S. government agency that provides support to small businesses. The SBA helps small business owners and entrepreneurs pursue the American dream. The SBA is the only cabinet-level federal agency fully dedicated to small business and provides counseling, capital, and contracting expertise as the nation's only go-to resource and voice for small businesses.
Example: The exporter applied for an SBA loan to help finance their international shipping costs.

SBDC

Definition: Small Business Development Centers (SBDCs) provide assistance to small businesses and aspiring entrepreneurs throughout the United States and its territories. SBDCs help entrepreneurs realize the dream of business ownership and help existing businesses remain competitive in a complex, ever-changing global marketplace.
Example: The shipper consulted with their local SBDC to learn more about international shipping regulations

SCAC

Definition: The Standard Carrier Alpha Code (SCAC) is a unique two to four-letter code used to identify transportation companies.
Example: The SCAC for the shipping company was listed on the Bill of Lading.

Schedule B

Definition: Schedule B is a classification system used by the U.S. Commerce Department to classify physical goods for export to another country. The Schedule B is administered by the U.S. Census Bureau.
Example: The exporter had to determine the correct Schedule B number for the goods they were shipping.

Section 232 Tariffs

Definition: Section 232 of the Trade Expansion Act of 1962 (19 U.S.C. §1862) authorizes the Secretary of Commerce to conduct comprehensive investigations to determine the effects of imports of any article on the national security of the United States. Section 232 tariffs are trade measures imposed under this law.
Example: The new Section 232 tariffs impacted the cost of importing steel and aluminum.

Section 301 Tariffs

Definition: Section 301 of the U.S. Trade Act of 1974 authorizes the President to take all appropriate action, including tariff-based and non-tariff-based retaliation, to enforce trade agreements, resolve trade disputes, and open foreign markets to U.S. goods and services. Section 301 tariffs are trade measures imposed under this law.
Example: The Section 301 tariffs on Chinese goods led to a trade war between the two countries.

Ship's Tackle

Definition: Ship's tackle refers to all the rigging, fittings, and equipment such as anchors, pulleys, sails, etc., used on board a ship. The term is often used to refer to the means used to load or unload a ship.
Example: The ship's tackle was inspected regularly to ensure it was safe to handle the cargo.

Shipper

Definition: A shipper is an individual or business that transports goods. They can be the owner or seller of the goods, or a third party that is hired to oversee the transportation of the goods.
Example: The shipper arranged for transportation of the goods from the warehouse to the seaport.

Shipper's Letter of Instruction (SLI)

Definition: A Shipper's Letter of Instruction (SLI) is a note from the exporter instructing the freight forwarder or transportation company on how a shipment is to be handled. It contains specific information about the consignee, the goods being transported, the chosen mode of transport, and the required delivery date.
Example: The shipper provided a detailed SLI to the freight forwarder to ensure correct handling of the delicate cargo.

Shipping Documents

Definition: Shipping documents are legal documents that serve as a contract between the shipper and the carrier, define the scope of the shipment, prove ownership of goods, and provide financial and other instructions.
Example: The shipping documents for international trade often include a Bill of Lading, Commercial Invoice, Packing List, and Certificate of Origin.

Shipping Solutions

Definition: Shipping solutions can refer to various services, technologies, and strategies used to streamline and manage the process of shipping goods. These can include freight forwarding services, logistics management software, tracking technologies, etc.
Example: The company implemented a new shipping solution that included real-time tracking of their international shipments.

Shortage

Definition: A shortage in shipping refers to a situation when the number of goods received is less than the quantity listed on the shipping documents. Shortages can occur due to theft, loss, or damage during transit.
Example: Upon checking the shipment, the consignee reported a shortage and filed a claim with the carrier.

Skids

Definition: Skids are a type of single-deck loading platform, typically made of wood, used as a base for assembling, storing, handling, and transporting goods as a unit load. They are often used interchangeably with pallets, although skids only have a top deck with no bottom deck.
Example: The goods were loaded onto skids for easy handling in the warehouse.

SNAP-R

Definition: The Simplified Network Application Process Redesign (SNAP-R) is a web-based system for submitting export license applications, commodity classification requests, reexport license applications, and license amendment requests to the Bureau of Industry and Security (BIS) of the U.S. Department of Commerce.
Example: The exporter used the SNAP-R system to apply for an export license for the controlled goods.

SOLAS

Definition: The International Convention for the Safety of Life at Sea (SOLAS) is an international maritime treaty that sets minimum safety standards in the construction, equipment, and operation of merchant ships.
Example: The ship was inspected to ensure compliance with SOLAS standards.

Sourcing

Definition: Sourcing in the supply chain context is the practice of identifying, evaluating, and contracting with suppliers of goods and services. In international trade, it can also involve deciding from which country to procure goods.
Example: The company was sourcing parts from various countries to assemble their product.

Spotting

Definition: In shipping, spotting refers to the act of positioning a trailer or container at a specific loading or unloading site (dock, warehouse, yard, etc.) according to a customer's request.
Example: The shipping company was responsible for spotting the container at the warehouse for loading.

Starboard

Definition: Starboard is a nautical term used to designate the right side of a ship or vessel when facing forward (the front of the vessel is the 'bow'). The left side is referred to as 'port'.
Example: The crew was instructed to load cargo onto the starboard side of the ship to balance the load.

Stern

Definition: The stern is the rear end of a ship or boat. It's the opposite of the bow, which is the front.
Example: The ship's name was painted on the stern.

STC

Definition: Said to Contain (STC) is a term often used on bills of lading to denote that the carrier is not aware of the nature or quantity of the contents of the cargo. The goods have been loaded, sealed, and counted by the shipper, not the carrier.
Example: The bill of lading indicated that the container was STC, meaning the carrier wasn't responsible for verifying the contents of the container.

Stevedore

Definition: A stevedore, also known as longshoreman or dockworker, is a worker involved in loading and unloading ships, trucks, trains or airplanes.
Example: The stevedores were busy loading the cargo onto the ship.

Stripping

Definition: Stripping is the process of unloading cargo from a container. Also known as devanning.
Example: The stripping of the container revealed some damage to the goods inside.

Stuffing

Definition: Stuffing is the process of loading cargo into a container. Also known as vanning.
Example: The warehouse workers were responsible for the stuffing of the container with goods for export.

STW

Definition: Stowage factor, often denoted as STW, is the cubic space occupied by one ton (weight or measure) of cargo. It is used in shipping to calculate how much cargo can be loaded into a ship or a container.
Example: The STW was calculated to maximize the use of the container's space.

Supply Chain

Definition: The supply chain includes all the activities, functions, and entities involved in the creation and delivery of goods or services, from raw material sourcing to the end customer. It includes suppliers, manufacturers, wholesalers, retailers, transporters and more.
Example: The company improved its supply chain by optimizing shipping routes and reducing lead times.

Surcharge

Definition: In shipping, a surcharge is an additional charge, fee, or tax that is added to the cost of freight rates by carriers due to specific circumstances such as fuel price increase (fuel surcharge), high demand (peak season surcharge), or higher operational costs at certain locations (congestion surcharge).
Example: The freight cost was higher than usual due to a fuel surcharge added by the carrier.

Surtax

Definition: A surtax is an additional tax on something already taxed. In shipping, it can be an extra fee charged by the carrier or governmental bodies under certain circumstances or for specific goods.
Example: Importing luxury goods into the country was subject to a surtax, in addition to the regular customs duty.

Tail

Definition: In shipping, the tail refers to the rear part of a transportation vehicle such as a truck, trailer, or ship. It can also refer to the final leg or the end of a transportation journey.
Example: When loading a truck, heavier items are typically placed towards the front rather than the tail.

Tare Weight

Definition: Tare weight is the weight of an empty container or vehicle. When you subtract the tare weight from the gross weight (total weight), you get the net weight of the cargo.
Example: To calculate the weight of the cargo, they subtracted the tare weight of the truck from the gross weight after loading.

Terminal

Definition: A terminal is a facility where freight is loaded onto and unloaded from vehicles or vessels. Terminals can be found in seaports, airports, or train stations, and they usually have equipment for cargo handling.
Example: The goods were offloaded at the terminal and prepared for customs inspection.

Terminal Charge

Definition: Terminal charge is a fee for a variety of services provided by terminals at the port. These can include unloading from a vessel, handling, storage, and loading onto trucks or rail cars for further transportation.
Example: The terminal charges were added to the total shipping cost as a separate item.

TEU (Twenty-Foot Equivalent Unit)

Definition: TEU is a measurement unit used to quantify a ship's cargo carrying capacity. One TEU is equivalent to a standard intermodal shipping container that is 20 feet long, 8 feet wide, and 8.5 feet tall.
Example: The cargo ship had a capacity of 5,000 TEU, allowing it to carry a large volume of containers.

Third Party Logistics (3PL)

Definition: Third Party Logistics (3PL) providers are companies that offer outsourced logistics and supply chain management to other companies. They handle logistics functions such as transportation, warehousing, picking and packing, freight forwarding, and inventory management.
Example: The company used a 3PL provider to manage the transportation and storage of their goods.

TL

Definition: TL stands for Truckload. It refers to a shipment that takes up the entire space or weight limit of a semi-trailer truck. It's typically more than 15,000 pounds or more than 10 pallets.
Example: Due to the large quantity of goods, a TL service was required to transport the shipment.

Trailer

Definition: A trailer is a non-motorized vehicle that is towed by a powered vehicle, such as a truck. In shipping and logistics, trailers are used to transport goods over the road.
Example: The driver hitched the trailer loaded with goods to his truck.

Transshipment

Definition: Transshipment is the process of moving goods from one vessel or vehicle to another during their journey from the origin to the final destination. This often occurs in hubs or ports where goods are consolidated before being shipped further.
Example: The cargo was transshipped at the Hong Kong port, moving from one ship to another, on its way to its final destination.

Truck Tonnage

Definition: Truck tonnage is a measure of the total weight of freight transported by trucks. It's a key indicator of shipping activity and economic health as it reflects the volume of goods transported.
Example: The truck tonnage index showed an increase, indicating more goods were transported this quarter compared to the last.

Turnaround

Definition: In shipping, turnaround is the time taken for a ship to complete a voyage, including loading, transit, unloading, and preparation for the next voyage.
Example: The shipping company was looking for ways to reduce turnaround time to improve efficiency and reduce costs.

Ullage

Definition: Ullage is the unfilled space in a container or a ship's tank. It's usually used in reference to liquid cargo like oil or grain, where it's necessary to leave some space for expansion.
Example: They had to consider ullage when loading the oil tanker to ensure there was sufficient room for the oil to expand without causing any damage.

Unclaimed Freight

Definition: Unclaimed freight is cargo that has not been claimed by the consignee or owner within a specified time limit. This often results in the carrier auctioning or selling the goods to recoup their costs.
Example: The unclaimed freight was eventually sold at an auction after several attempts to contact the consignee failed.

United States-Chile Free Trade Agreement

Definition: The United States-Chile Free Trade Agreement is a bilateral trade agreement aimed at promoting economic growth between the United States and Chile. It removes trade barriers and tariffs on goods and services between the two countries.
Example: Since the United States-Chile Free Trade Agreement was signed, trade between the two countries has increased significantly.

United States-Colombia Trade Promotion Agreement (CTPA)

Definition: The United States-Colombia Trade Promotion Agreement (CTPA) is a bilateral free trade agreement between the US and Colombia. It eliminates tariffs and other trade barriers for goods and services exchanged between the two countries.
Example: Under the United States-Colombia Trade Promotion Agreement, many agricultural goods can now be exported from the US to Colombia duty-free.

United States-Israel Free Trade Agreement

Definition: The United States-Israel Free Trade Agreement is a bilateral agreement that eliminates tariffs and promotes trade between the US and Israel. It was the first free trade agreement signed by the US.
Example: The United States-Israel Free Trade Agreement has significantly increased trade volumes between the two countries.

United States-Korea Free Trade Agreement

Definition: The United States-Korea Free Trade Agreement (also known as KORUS FTA) is a trade agreement between the US and South Korea that reduces trade barriers and opens up markets for goods and services between the two countries.
Example: The United States-Korea Free Trade Agreement has been beneficial to automobile manufacturers in the US by reducing tariffs on exported vehicles.

United States-Peru Trade Promotion Agreement

Definition: The United States-Peru Trade Promotion Agreement is a free trade agreement that eliminates tariffs and other trade barriers between the US and Peru, helping to enhance trade and investment between the two countries.
Example: The United States-Peru Trade Promotion Agreement has boosted exports from the US to Peru, particularly in sectors like machinery and petroleum products.

Unit Load

Definition: A unit load is a single item or assembly of items packaged and arranged for ease of handling, storage, and shipment. It could be a pallet, box, crate, carton, bag, or other bundled or packed item.
Example: The company used pallets to create unit loads, making it easier to manage their inventory and shipments.

UN Number

Definition: A UN Number or UN ID is a four-digit number that identifies hazardous substances and articles (such as explosives, flammable liquids, toxic substances, etc.) in the framework of international transport.
Example: The UN Number for gasoline is UN1203, indicating that it is a flammable liquid.

USMCA

Definition: The United States–Mexico–Canada Agreement (USMCA) is a free trade agreement between Canada, Mexico, and the United States that replaced the North American Free Trade Agreement (NAFTA) in 2020. It governs regulations related to trade and investment among the three countries.
Example: Under the USMCA, many agricultural goods can be traded tariff-free between the U.S., Canada, and Mexico.

USML

Definition: The United States Munitions List (USML) is a list of articles, services, and related technology designated as defense- and space-related by the United States federal government. This designation means that the export of these items is controlled by the U.S. government.
Example: Companies exporting items listed on the USML require specific licenses from the U.S. Department of State.

USPPI

Definition: The U.S. Principal Party in Interest (USPPI) is the entity who receives the primary benefit, monetary or otherwise, from an export transaction. This can be the U.S. seller, manufacturer, order party, or foreign entity if in the U.S. when the items are purchased or obtained for export.
Example: As the manufacturer and seller of the goods being exported, our company is the USPPI for this shipment.

Value-Added Tax (VAT)

Definition: Value-Added Tax (VAT) is a consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale. In the context of import, VAT may be assessed on the total value of goods and services purchased in a foreign country.
Example: When importing goods from Europe, the importer is typically responsible for paying the VAT.

Vessel

Definition: A vessel refers to any craft designed for transportation on water, such as ships, boats, barges, submarines, etc. In shipping terms, a vessel is usually a large cargo ship used for transporting goods across oceans.
Example: The shipping company owned several vessels used for transporting goods across the Atlantic.

Vessel Manifest

Definition: A vessel manifest is a document listing the cargo, passengers, and crew of a ship, aircraft, or vehicle, for the use of customs and other officials. It gives a detailed summary of all bills of lading issued by a carrier or its agents for a specific voyage of a ship.
Example: The vessel manifest was provided to customs authorities upon the ship's arrival at the port.

Vessel Traffic Service (VTS)

Definition: A Vessel Traffic Service (VTS) is a marine traffic monitoring system established by harbor or port authorities. It uses radar, closed-circuit television (CCTV), VHF radiotelephony, and automatic identification systems to keep track of vessel movements and provide navigational safety in a limited geographical area.
Example: The Vessel Traffic Service in the harbor ensured the safe and efficient movement of all vessels in the area.

War Risk

Definition: War risk refers to the dangers that a vessel, its crew, and its cargo may encounter as a result of war. It is typically covered under a separate insurance policy when shipping cargo.
Example: Given the ongoing conflict in the region, the shipper decided to take out a war risk insurance policy for their shipment.

Warehouse

Definition: A warehouse is a commercial building used for storage of goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, and other businesses involved in transporting and storing goods.
Example: The importer rented a warehouse near the port to store goods before they were distributed to retail outlets.

Wharf

Definition: A wharf is a structure on the shore of a harbor or on the bank of a river or canal where ships may dock to load and unload cargo or passengers.
Example: The shipping vessel was securely docked at the wharf while the crew unloaded the containers.

World Customs Organization (WCO)

Definition: The World Customs Organization (WCO) is an intergovernmental organization headquartered in Brussels, Belgium. The WCO is known for its work in areas covering the development of international conventions, instruments, and tools on topics such as commodity classification, valuation, rules of origin, and customs procedures.
Example: The WCO provides a forum for dialogue and exchange of experiences between national customs delegates, which helps improve and harmonize customs procedures worldwide.

World Trade Organization (WTO)

Definition: The World Trade Organization (WTO) is an international institution that oversees the global rules of trade between nations. Its main goal is to ensure that trade flows as smoothly, predictably, and freely as possible.
Example: When a trade dispute arises between two countries, they may take their case to the WTO for resolution.

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