Page 11 - Turners Shipping Glossary of Terms
P. 11


TERM                       DESCRIPTION
Insurance With Average-
Clause                     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
Insurance, All-Risk        sunk, all losses are fully covered. In marine insurance the word average describes partial
                           damage or partial loss.
Insurance, Particular-
Average                    This type of insurance offers the shipper the broadest coverage available, covering
                           against all losses that may occur in transit.
Intermodal Transport       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
Irrevocable Credit         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,
ISPS                       usually 3 to 5 percent, before a claim will be allowed by the company.
Issuing Bank
Issuing Bank               Used to denote movements of cargo or container between motor, rail or water carriers.
Landed Cost                Moving ocean freight containers by various transportation modes. The fact that the
(or Landed Price)          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,
LCL/FCL                    to honour the credit provided the terms of the credit are observed. It may be advised to
LCL/LCL                    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.

                           More often known as “Consolidator”. Their business focuses on providing services
                           related to consolidate parts or smaller consignments, LCL (Less than Container Load)
                           cargoes into larger unit. They derive profit by paying the vessel operating carrier the lower
                           consolidated rate.

                           See CFS/CY.

                           See CFS/CFS.  Page 11  “Trusted for over 120 Years”
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