Page 3 - Glossary of Shipping Terms

SHIPPING TERMS

TERM DESCRIPTION

Accrual An accounting concept. It is a gradual increase by addition over a period of time and is a way of
recognising that an expense (or revenue) and the related liability (or asset) can increase over time and
Ad Valorem not as signalled by an explicit cash transaction.
Ad Valorem Duty
Ad Valorem Freight According to value.
Ad-Valorem Tariff
A customs duty which is a percentage made upon the value of goods.
Advice of Shipment
Bill of lading freight charged on goods of very high value at so much percent on the declared value of
Advising Bank the goods.
Agent (Agt.)
A tariff rate charged as a percentage of the value of goods being imported or exported
Air Waybill
A notice sent to a local or foreign buyer advising that shipment has gone forward and containing details
All Commodity Rate of packing, routing, etc. A copy of the invoice is usually enclosed and sometimes, if desired, a copy of
All Inclusive (AI) the bill of lading.
Allowance
Also Notify Party The bank which advises the seller that a letter of credit has been opened in his favour by the buyer,
however, the advising bank does not necessarily guarantee payment.
Anti-dumping Duties
A person authorized to transact business for and in the name of another person or company.
Apparent Good Order
Arbitrary The air waybill (also called air consignment note) is the forwarding agreement or carrying agreement
between shipper and air carrier and is obtained from the airline used to ship the goods in question. Air
Arrival Notice waybills are issued only in non negotiable form.

Awkward Cargo A freight rate applying, with certain restrictions, to any and all commodities.

B/L Master Freight rate that is inclusive of all charges.
Bank Guarantee
Basic Freight A sum granted as a reimbursement or repayment; a deduction from the gross weight or value of goods.
Berth Term
Bill of Lading (B/L) A second notify party to whom carrier sends its arrival notice advising of goods coming forward for
delivery.
Blank Endorsed
Duties imposed on goods that are deemed to have been exported below market value, causing injury
Bonded Freight to producers of competing products in the importing country. These duties are equal to the difference
Bonded Indemnity between the goods’ export price and their normal value.

When freight appears to be free of damage so far as a general survey can determine.

A stated amount over a fixed rate to one point to make a rate to another point.

Advice that carrier sends to consignee advising of goods coming forward for delivery. Pertinent
information such as BL number, container number and total charges due from consignee, etc. are
included and sent to consignee prior to vessel arrival. This is done gratuitously by carrier to ensure
smooth delivery but there is no obligation by carrier to do so and the responsibility to monitor transit
and present himself to take timely delivery still rest with the consignee.

Cargo of irregular size that either be containerised (packed in container) or uncontainerised (without
equipment associated with) in the transport. They require prior approval on case by case basis before
confirmation of booking.

A document provided by the shipper after handing over the cargo to the carrier, tells the carrier how
the B/L should be raised. Also known as B/L instruction or shipping instruction.

Guarantee issued by a bank to a carrier to release cargo in lieu of original bill of lading.

Ocean freight excludes all charges.

Shipped under rate that does not include cost of loading or unloading carrier.

Official legal document representing ownership of cargo; negotiable document to receive cargo;
contract for cargo between shipper and carrier.

When a bill of lading is made out to order or shipper order and the shipper has signed on the back of it,
it is said to be blank endorsed. The bill of lading then becomes a bearer instrument and the holder can
present it to the shipping company to take delivery of the goods.

Freight moving under the control of a customs registered transporter, and to be delivered only under
stated conditions, by making due declaration and acquittal at final destination.

A certificate filed with a carrier, relieving it from liability to which it would otherwise be subject.

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