Page 3 - Turners Shipping Glossary of Terms
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GLOSSARY OF SHIPPING TERMS

TERM                       DESCRIPTION
Accrual
Ad Valorem                 An accounting concept. It is a gradual increase by addition over a period of time and is
Ad Valorem Duty            a way of recognising that an expense (or revenue) and the related liability (or asset) can
Ad Valorem Freight         increase over time and not as signalled by an explicit cash transaction.
Ad-Valorem Tariff
Advice of Shipment         According to value.

Advising Bank              A customs duty which is a percentage made upon the value of goods.
Agent (Agt.)
                           Bill of lading freight charged on goods of very high value at so much percent on the
Air Waybill                declared value of the goods.
All Commodity Rate
All Inclusive (AI)         A tariff rate charged as a percentage of the value of goods being imported or exported
Allowance
Also Notify Party          A notice sent to a local or foreign buyer advising that shipment has gone forward and
                           containing details of packing, routing, etc. A copy of the invoice is usually enclosed and
Anti-dumping Duties        sometimes, if desired, a copy of the bill of lading.
Apparent Good Order
Arbitrary                  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.
Arrival Notice
                           A person authorized to transact business for and in the name of another person or
Awkward Cargo              company.

B/L Master                 The air waybill (also called air consignment note) is the forwarding agreement or carrying
Bank Guarantee             agreement between shipper and air carrier and is obtained from the airline used to ship
Basic Freight              the goods in question. Air waybills are issued only in non negotiable form.
Berth Term
Bill of Lading (B/L)       A freight rate applying, with certain restrictions, to any and all commodities.

Blank Endorsed             Freight rate that is inclusive of all charges.

                           A sum granted as a reimbursement or repayment; a deduction from the gross weight or
                           value of goods.

                           A second notify party to whom carrier sends its arrival notice advising of goods coming
                           forward for delivery.

                           Duties imposed on goods that are deemed to have been exported below market value,
                           causing injury to producers of competing products in the importing country. These duties
                           are equal to the difference 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.

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