Page 10 - Glossary of Shipping Terms

SHIPPING TERMS

TERM DESCRIPTION
I.M.O. Surcharge
IATA Cargo Agent A fee charged by shipping companies for transporting hazardous cargo by sea. The surcharge covers
IMDG Code extra handling costs, such as creating load plans and handling documents. The surcharge is aimed at
Import License reducing sulphur oxide emissions.

Import Permit A freight forwarder licensed to handle air cargo. They are registered with the International Air Transport
Association (IATA).
Incoterms® International Maritime Dangerous Goods Code - The IMO (UN) recommendations for the carriage of
dangerous goods by sea.
Insurance A document required and issued by some national governments authorizing the importation of goods
into their individual countries.
Insurance Certificate
Usually required for items that might affect the public health, morals, animal life, vegetation, etc.
Insurance With Average- Examples include foodstuffs, feedstuffs, pharmaceuticals (human and veterinary), medical equipment,
Clause seeds, plants and various written material (including tapes, cassettes, movies, TV tapes or TV movies).
Insurance, All-Risk In some countries an import permit is the same as an import license.

Insurance, Particular- Incoterms® are a set of uniform rules codifying the interpretation of trade terms defining the rights
Average and obligation of both buyer and seller in an international transaction, thereby enabling an otherwise
Intermodal complex basis for a sale contract to be accomplished in three letters. Incoterms® mean International
Intermodal Transport Commercial Term and are drafted by the International Chamber of Commerce.

Irrevocable Credit An insurance policy or certificate normally covers the shipments of merchandise from the time they
leave the warehouse at the shipping point until they reach the destination point named in the policy
ISPS or certificate.
Issuing Bank
Issuing Bank Where the seller provides ocean marine insurance, it is necessary to furnish insurance certificates,
L.C.L. usually in duplicate. The certificates are negotiable documents and must be endorsed before submitting
Landed Cost them to the bank. The seller can arrange to obtain an open cargo policy that the freight forwarder
(or Landed Price) maintains.

This type of clause covers merchandise if the damage amounts to 3 percent or more of the insured value
of the package or cargo. If the vessel burns, sinks, collides, or gets sunk, all losses are fully covered. In
marine insurance the word average describes partial damage or partial loss.

This type of insurance offers the shipper the broadest coverage available, covering against all losses
that may occur in transit.
A Marine insurance term to refer to partial loss on an individual shipment from one of the perils insured
against, regardless of the balance of the cargo (in this way it differs from general-average insurance).
Particular-average insurance can usually be obtained, but the loss must be in excess of a certain
percentage of the insured value of the shipment, usually 3 to 5 percent, before a claim will be allowed
by the company.

Used to denote movements of cargo or container between motor, rail or water carriers.

Moving ocean freight containers by various transportation modes. The fact that the containers are of
the same size and have common handling characteristics permits them to be transferred from truck to
railroad to air carrier to ocean carrier.

Constitutes a definite undertaking of the issuing bank and the confirming bank, if any, to honour the
credit provided the terms of the credit are observed. It may be advised to the beneficiary without
engagement by the advising bank, and cannot be amended or cancelled unless the issuing bank, the
confirming bank and the beneficiary agree.

International Shipping & Port Security. The International anti-terrorist legislation organised by IMO.

The bank that has issued or opened a letter of credit. Also known as Opening Bank.

The bank that opens a documentary credit at the request of its customer, the applicant.

Less than Container Load. Cargo in quantity less than required for the application for the application of
a container load rate.
The total cost comprising goods, insurance, freight, loading, unloading, inland transport and anything
else involved in clearing the goods at the port of destination.

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