Page 9 - Turners Shipping Glossary of Terms

GLOSSARY OF SHIPPING TERMS

TERM DESCRIPTION
FOB (INCOTERM)
Force Majeure One of 11 INCOTERMS can be used only for sea or inland waterway transport. “Free on
Board” means that the seller delivers the goods on board the vessel nominated by the
Forwarder buyer at the named port of shipment or procures the goods already delivered. The risk of
loss of or damage to the goods passes when the goods are on board the vessel, and the
Free Trade Agreement buyer has to bear all costs from that moment onwards.
(FTA)
An event outside the control of the parties to the contract.
Free Trade Zone
Known also as Freight Forwarder, Foreign Freight Forwarder. It’s an individual or business
Freight that dispatches shipments by land, air, or sea, or it may specialize for exporters and for
Freight Ton a fee. Usually it handles all the services in the collection, consolidation, shipping and
Fumigation distribution of goods connected with an export shipment; preparation of documents,
G.R.I. booking cargo space, warehouse, pier delivery and export clearance.
GATT The firm may also handle banking and insurance services on behalf of a client.
General Average
Gross Tonnage A contractual agreement between two or more parties under which they give each other
Gross Weight preferential market access. The agreement must apply to substantially all the trade in
Groupage goods between the two parties and must not erect new barriers to other countries. Modern
Hague Rules FTAs typically also cover trade in services, as well as other non-tariff issues such as the
Hague-Visby Rules recognition of standards, customs cooperation, protection of intellectual property rights
Hamburg Rules and regulation of foreign investment.

Sometimes called "customs free zones" or "duty free zones". It is a generic term referring
to special commercial and industrial areas. At which by special customs procedures
it allows the importation of non-prohibited foreign goods (including raw materials,
components, and finished goods) without the requirement that duties be paid immediately.
If the merchandise is later exported, duty free treatment is given to reexports. The zones
are usually located in or near ports of entry. Merchandise brought into these zones may
be stored, assembled, processed or used in manufacture prior to re-export or entry into
the national customs territory. When manufacturing activity occurs in free trade zones, it
usually involves a combination of foreign and domestic merchandise, and usually requires
special governmental authority.

(a) The price paid to the carrier for the transportation of goods or merchandise by sea
from one place to another. (b) Freight is also used to denote goods which are in the
process of being transported from one place to another.

See Revenue Ton.

Treatment with a pesticide active ingredient that is a gas under treatment conditions.

General Rate Increase - General Agreement on Tariff and Trade.

An international multilateral agreement embodying a code of practice for fair trading in
international commerce.

General average is an unwritten, non-statutory, international maritime law which is
universally recognized and applied. It is founded on the principle that vessel and goods
are parties to the same venture and share exposure to the same perils, which may require
sacrifice or the incurring of extraordinary expense on the part of one for the benefit of the
whole venture.

Applies to vessels, not to cargo. Determined by dividing by 100 the contents, in cubic feet,
of the vessel's closed-in spaces. A vessel ton is 100 cubic feet.

Entire weight of goods, packaging and container, ready for shipment. The weight of the
merchandise in its shipping form, i.e. including all its packaging.

A consolidation service, putting small shipments into containers for shipment.

1924 International Convention on Carriage of Goods by Sea. These rules govern liability
for loss or damage to goods carried by sea under a bill of lading.

1968 Revision of Hague Rules.

In March 1978 an international conference in Hamburg adopted a new set of rules (The
Hamburg Rules),which radically alter the liability which ship-owners have to bear for loss
or damage to goods in the courts of those nations where the rules apply.

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