Page 11 - Turners Shipping Glossary of Terms

GLOSSARY OF SHIPPING TERMS

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
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.
L.C.L.
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.
LCL - NVO
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.

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