SHIPPING GLOSSARY

‹ Back

C & D: Collected and delivered

C & E: Customs & Excise

C & I: Is a quoted price includes cost of goods and insurance.

C&F: Is a quoted price includes cost of goods and freight.

C.C.E.F.: Is a Customs Centralized Examination Facility.

C.I.F.: Is a quoted price includes cost of goods, insurance and freight.

C.I.T.E.S.: Committee on International Trade of Endangered Species.

C/P: Charter party

C/V: Certificate of value

C/VO: Certificate of Value and Origin

CAA: Is the Civil Aviation Authority. Government body responsible for regulating U.K. airlines.

CAAC: Customs and Allied Affairs Committee

Cabotage: Is where cargo is carried on what is essentially a domestic flight and therefore not subject to international agreements that fix set rates. Cabotage rates are negotiable between shipper and airline and apply on flights within a country and to its overseas territories.

CAD Can have two meanings in the industry

CAD/CAM: Computer Aided Design/Computer Aided Manufacturing.

CAD: The acronym meaning "cash against documents," a method of payment for goods in which documents transferring title are given to the buyer upon payment of cash to an intermediary acting for the seller.

CAF: Currency adjustment factor: A surcharge expressed as a percentage (or subtracted) from the freight rate compensating the Line (or shipper) for a change in the exchange rates relationship between the currency of freight collected from the shippers and currency of costs incurred by the Line.

Cage: The transporting of goods by truck to or from a vessel, aircraft, or bonded warehouse, all under customs custody.

CAN: Customs Assigned Number

Cargo Receipt: Is a receipt of cargo for shipment by a consolidator (used in ocean freight).

Cargo: Is merchandise/commodities/freight carried by means of transportation.

Carnet: A customs document permitting the holder to carry or send merchandise temporarily into certain foreign countries (for display, demonstration, or similar purpose) without paying duties or posting bonds.

Carrier: Any person who undertakes to perform or precure the performance of carriage by rail, road, sea, air, inland waterway or any combination.

Carrier, Common: A public or privately owned firm or corporation that transports the goods of others over land, sea, or through the air, for a stated freight rate. By government regulation, a common carrier is required to carry all goods offered if accommodations are available and the established rate is paid.

Carriers(s) Containers or Shipper(s) Containers: The term Carrier(s) Container(s) or Shipper(s) Container(s) means containers over which the carrier or the shipper has control either by ownership or by the acquisition thereof under lease or rental from container companies or container suppliers or from similar sources. Carriers are prohibited from purchasing, leasing or renting shipper owned containers.

Cartel: Is an association of several independent national or international business organizations that regulates competition by controlling the prices, the production, or the marketing of a product or an industry.

Cash Against Documents (CAD): Payment for goods in which a commission house, or other intermediary, transfers title documents to the buyer upon payment in cash.

Cash in Advance (C.I.A.): Payment for goods in which the price is paid in full before shipment is made. This method is usually used only for small purchases or when the goods are built to order.

CBI: Confederation of British Industry

CC/O: Certificate of consignment/origin

CCA: Connecting carrier agreement: A contract between carriers such that line or both operators will transport a said amount of cargo on behalf of the other on the other's Bill of Lading, thus acting as a bridge for crosstraded cargoes needing a first or second leg carrier to compliment the first

CCT: Common Customs Tariff (within the EU)

CD: Customs declaration

CDV: Current domestic value

Cell Guides: Upright metal fasteners welded to the ship's deck to secure the containers for the sea journey. Containers aree secured to these sections using twist locks which act as keys bolting the container's four corners to the ship's deck and/or other containers in the stack.

Certificate of Analysis: Is a certificate required by some countries as proof of the quality and composition of food products or pharmaceuticals. The required analysis may be made by a private or government health agency. The certificate must be legalized by a foreign consul of the country concerned, as is the case with such similar certificates as the phytosanitary certificate.

Certificate of Inspection: A document certifying that the goods were in apparent good condition immediately prior to shipment.

Certificate of Manufacture: A statement in which a producer specifies where his goods were manufactured, certifies that manufacturing has been completed, and confirms that the goods are at the buyer's disposal.

Certificate of Origin: A statement signed by the exporter, or his agent, and attested to by a local Chamber of Commerce, indicating that the goods being shipped, or a major percentage of them, originated and were produced in the exporter's country.

CES: Is a Customs Examination Station

CFR: Cost and Freight - One of the thirteen Incoterms and one of four 'C' terms.

The seller must clear the goods for export.

A sales term denoting that the seller is responsible for arranging and paying for the carriage of goods to the agreed port of discharge, excluding insurance costs.

CFR is used for goods that are to be carried by sea.

CFS (Container Freight Station): The term CFS at loading port means the location designated by carriers for the receiving of cargo to be packed into containers by the carrier. At discharge ports, the term CFS means the bonded location designated by carriers in the port area for unpacking and delivery of cargo.

CFS CHARGE (Container Freight Charge): The term CFS Charge means the charge assessed for services performed at the loading or discharging port in packing or unpacking of cargo into/from containers at CFS.

CFS Receiving Service: The term "CFS Receiving Services" means the service performed at loading port in receiving and packing cargo into containers from CFS to CY or shipside. "CFS Receiving Services" referred herein are restricted to the following

Moving empty containers from CY to CFS

Drayage of loaded containers from CFS to CY and/or ship's tackle

Tallying

Issuing dock receipt/shipping order

Physical movement of cargo into, out of and within CFS

Stuffing, sealing and marking containers

Storage

Ordinary sorting and stacking

Preparing carrier's internal container load plan

CFS/CFS (Pier to Pier): The term CFS/CFS means cargo delivered by break-bulk to Carrier's CFS to be packed by Carrier into containers and to be unpacked by Carrier from the container at Carrier's destination port CFS.

CFS/CY (Pier to House): The term CFS/CY means cargo delivered break-bulk to Carrier's CFS to be packed by Carrier into containers and accepted by consignee at Carrier's CY and unpacked by the consignee off Carrier's premises, all at consignee's risk and expense.

CH: Custom House

Chargeable Kilo: Rate for goods where volume exceeds six cubic metres to the tonne.

Charges forward: Charges to be paid by the buyer on arrival of the goods.

Charter party Bill of Lading: A bill of lading issued under a charter party. It is not acceptable by banks under letters of credit unless so authorized in the credit.

Charter Party: The contract between the owner of a ship and the individual or company chartering it. Among other specifications, the contract usually stipulates the exact obligations of the ship-owner (loading the goods, carrying the goods to a certain point, returning to the charterer with other goods, etc.); or it provides for an outright leasing of the vessel to the charterer, who then is responsible for his own loading and delivery. In either case, the charter party sets forth the exact conditions and requirements agreed upon by both sides.

Charter: Originally meant a flight where a shipper contracted hire of an aircraft from an airline. Has usually come to mean any non-scheduled commercial service.

Charterer: Person or company who hires a ship from a shipowner for a period of time.

Chassis: A wheel assemble including bogies constructed to accept mounting of containers.

CIA: The acronym meaning "cash in advance," a method of payment for goods whereby buyer pays seller in advance of shipment of goods.

CIF & C: Cost, Insurance, Freight & Commission

CIF & E: Cost, Insurance, Freight & Exchange

CIF & I: Cost, Insurance, Freight & Interest

CIF (cost, insurance and freight): Seller is responsible for inland freight, ocean/air freight, and marine/air insurance to the port of final entry in the buyer's country. The buyer is responsible for inland transportation to his or her location.

CIFC & I: Cost, Insurance, Freight, Commission & Interest

CIP: Carriage and Insurance Paid To - One of the thirteen Incoterms and one of four 'C' terms.

The seller has the same obligation asunder CPT but is also responsible for contracts for insurance of goods during the carriage. The seller also pays the insurance premium.

Under CIP the seller is only required to obtain minimum insurance cover.

CITHA: Confederation of International Trading Houses Associations

Class Rates: A class of goods or commodities is a large grouping of various items under one general heading. All items in the group make up a class. The freight rates that apply to all items in the class are called class rates.

Classification: Is a customs term. The placement of an item under the correct number in the customs tariff for duty purposes. At times this procedure becomes highly complicated; it is not uncommon for importers to resort to litigation over the correct duty to be assessed by the customs on a given item.

Claused Bill of Lading: Is a bill of lading which has exemptions to the receipt of merchandise in "apparent good order" noted.

Clean Bill of Lading: Is a bill of lading which covers goods received in "apparent good order and condition" and without qualification.

Clean Draft: Is a draft to which no documents have been attached.

CLECAT: European Liaison Committee of Common Market Forwarders

cm: Centimeters

CNS: Cargo Network Services, an IATA company. See IATA.

COD: Cash on delivery, customers own delivery

Collective Paper: All documents (commercial invoices, bills of lading, etc.) submitted to a buyer for the purpose of receiving payment for a shipment.

Combi: Is an aircraft with pallet or container capacity on its main deck as well as in its belly holds.

Combination Vessels: Container/Break-bulk vessel - this type of ship accommodates both container and break-bulk cargo. It can be either self sustaining or non-self sustaining.

Combo/Combi: Combination vessel: A dry vessel designed to carry either dry bulk (grain, etc,) break bulk or containers. Such vessels are normally equipped with their own cranes.

Commercial Code: A published code designed to reduce the total number of words required in a cablegram.

Commercial Invoice: An itemized list of goods shipped, usually included among an exporter's collection papers.

Commercial Risk: Risk carried by the exporter (unless insurance is secured) that the foreign buyer may not be able to pay for goods delivered on an open account basis.

Commodity Specialist: An official authorized by the U.S. Treasury to determine proper tariff and value of imported goods.

Common Carrier: A firm or individual that transports persons or goods for compensation.

Conference: A group of vessel operators joined together for the purpose of establishing freight rates.

RoRo/Container Vessel - Ship designed to accommodate containers and roll-on roll-off cargo. It can be self sustaining.

RoRo/Container/Break-bulk Vessel - Designated to accommodate three types of cargo, usually self sustaining.

Confirmed Letter of Credit: A letter of credit, issued by a foreign bank with validity confirmed by a U.S. bank.

Confirmed Letter of Credit: A letter of credit, issued by a foreign bank, with validity confirmed  by a U.S. bank. An exporter who requires a confirmed letter of credit from the buyer is assured of payment by the U.S. bank even if the foreign buyer or the foreign bank defaults.

Confiscation: The taking and holding of private property by a government or an agency acting for a government. Compensation may or may not be given to the owner of the property.

Consignee Marks: A symbol laced on packages for identification purposes; generally consisting of a triangle, square, circle, diamond, cross, with letters and/or numbers as well as port of discharge.

Consignee: Person or firm to whom goods are shipped under a bill of landing.

Consignee: The individual or company to whom a seller or sipper sends merchandise and who, upon presentation of necessary documents, is recognized as merchandise owner for the purpose of declaring and paying customs duties.

Consignment: Is the physical transfer of goods from a seller (consignor) with whom the title remains, to another legal entity (consignee) who acts as a selling agent, selling the goods and remitting the new proceeds to the consignor.

Consignor: A term used to describe any person who consigns goods to himself or to another party in a bill of lading or equivalent document. A consignor might be the owner of the goods, or a freight forwarder who consigns goods on behalf of his principal.

Consolidated Shipment: An arrangement whereby various shippers pool their boxed goods on the same shipment, sharing the total weight charge for the shipment.

Consolidator: An agent which brings together a number of shipments for one destination to qualify for preferential airline rates.

Consortium: The name for an agreement under which several nations or nationals (usually corporations) of more than one nation, join together for a common purpose. It could be for management or exploitation of a natural resource, as in the case of some international petroleum consortiums.

Consul: A government official residing in a foreign country, charged with representing the interests of his or her country and its nationals.

Consular Declaration: A formal statement, made to the consul of a foreign country, describing goods to be shipped.

Consular Documents: Special forms signed by the consul of a country to which cargo is destined.

Consular Invoice: A document, required by some foreign countries, describing a shipment of goods and showing information such as the consignor, consignee, and value of the shipment. Certified by a consular official of the foreign country, it is used by the country's customs officials to verify the value, quantity and nature of the shipment.

Consular Invoice: A document, required by some foreign countries, describing a shipment of goods and showing information such as the consignor, consignee, and value of the shipment. Certified by consular official of the foreign, it is used by the country's customs official to verify the value, quantity, and nature of the shipment.

Container: Metal box used for the carriage of cargo. Usual dimensions 20 x 8 x 8.5ft or 40 x 8 x 8.5ft.

Container demurrage: Money paid by the shipper for the use of containers or other Line owned equipment beyond a specified ‘free time’ period.

Container Ship: Ocean going ship designed to carry containers both internally and on deck. Some are self sustaining.

Container vessel: Ship specially designed to carry shipping containers. The vessel often has bays into which the containers are lowered and where they are held in place by upright steel sections called cell guides. Containers are frequently carried on deck where they need to be lashed and secured.

Container: The term container means a single rigid, non-disposable dry cargo, insulated, temperature controlled flatrack, vehicle rack portable liquid tank, or open top container without wheels or bogies attached, having not less than 350 cubic feet capacity, having a closure or permanently hinged door that allows ready access to the cargo (closure or permanently hinged door not applicable to flatrack vehicle rack or portable liquid tank). All types of containers will have constructions, fittings and fastenings able to withstand without permanent distortion, all the stresses that may be applied in normal service use of continuous transportation. All containers must bear manufacturer's specifications.

Containerization: Is a concept for the ultimate unitizing of cargo used by both steamship lines and air cargo lines. Containers allow a greater amount of cargo protection from weather, damage, and theft.

Containers (Air Cargo): Many types of air cargo containers are offered: The containers are designed in various sizes and irregular shapes to conform to the inside dimensions of a specific aircraft.

Containers (Ocean): Are designed to be moved inland on its own chassis and can be loaded at the shippers plant for shipment overseas. Basic types of containers are; dry van, open top, half high, hi cube, flat rock, tank container, refrigerated container, insulated container, tilting container. Average outside dimensions are generally 20, 35, and 40 feet in length, 8 feet wide and 8 feet high standard.

Continuous Bond: Is an annual customs bond insuring compliance with all regulations and requirements.

Contract Rate: Is a charge levied by carriers selling capacity forward over a given route to a shipper of forwarder; the client is therefore assured of capacity, which must be paid for regardless of load carried.

Coordinating Committee for Export Controls (COCOM): An informal group of 15 western countries established to prevent the export of certain strategic products to potentially hostile nations.

Correspondent Bank: A bank that, in its own country, handles the business of a foreign bank.

COU: Clip-on unit

Countertrade: Is a reciprocal trading arrangement, which includes a variety of transactions involving two or more parties.

Countervailing Duties: Is a special duties imposed on imports to offset the benefits of subsidies to producers or exporters of the exporting country.

CPT: Carriage Paid To - One of the thirteen Incoterms and one of four 'C' terms.

The seller pays the freight for the carriage of the goods to the named destination. Under CPT the seller must clear the goods for export ie obtain the export licence, pay export taxes and fees if required and furnish the buyer with the invoice and relevant documents.

CPT can be used for any mode of transport

Cranage: Charge for use of wharf crane when a ship's own appliances for loading or unloading are now used.

Credit Risk Insurance: Insurance designed to cover risks of nonpayment for delivered goods.

CRF: Clean Report of Findings, details the quality, quantity and state of goods

CRN: Customs registered number

Curl: Small nugget of dense hardwood which has a high oil content. This is used for bearings and is very rare. Sometimes used in Takaradi.

Customhouse Broker: An individual or firm licensed to enter and clear goods through Customs.

Customs Bonded Warehouse: Is a  warehouse where imported goods may be stored for a total of three years without the payment of duty or taxes.

Customs Court: Is the court to which importers might appeal or protest decisions made by Customs officers.

Customs Tariff: Is a schedule of charges assessed by the federal government on imported goods.

Customs Union: Is an agreement between two or more countries in which they arrange to abolish tariffs and other import restrictions on each other's goods and establish a common tariff for the imports of all other countries.

CWE: Cleared without examination

CWO: The acronym meaning "cash with order," a method of payment for goods where cash is paid at the time of order and the transaction becomes binding on both buyer and seller.

CY (Container Yard): The term CY means the location designated by Carrier in the port terminal area for receiving, assembling, holding, storing and delivering containers, and where containers may be picked up by shippers or re-delivered by consignees. No container yard (CY) shall be a shipper's, consignee's, NVOCC's, or a forwarder's place of business, unless otherwise provided.

CY/CFS (House to Pier): The term CY/CFS means containers packed by shipper of carrier's premises and delivered by shipper to Carrier's CY, all at shipper's risk and expense and unpacked by Carrier at the destination port CFS.

CY/CY (House to House): The term CY/CY means containers packed by shipper off Carrier's premises and delivered by shipper to Carrier's CY and accepted by consignee a t Carrier's CY and unpacked by consignee off Carrier's premises, all at the risk and expense of cargo.