Glossary

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A

Along Aide Ship (FAS) 

In this type of export, the exporter / supplier is responsible for all expenses for placing goods at the port of shipment, either for immediate shipment or for storage.

Authority To Board (ATB)

Used for oil shipments - issued by the seller, it provides the authority to enable the buyer to board the vessel to confirm cargo availability, quantity and quality.

Any Safe World Port (ASWP)

It is quite common for commodity sellers to offer delivery to any safe world port of the buyer’s choice.

Authority To Load (ATL)

Authority to load buyer's vessel.

Air Waybill (AWB)

The air freight equivalent of a BOL.

B

Backhaul
To haul a shipment back over part of a route that it has already travelled; return movement of cargo, usually opposite from the direction of its primary cargo destination.

Ballast keel
A heavy keel fitted to vessels to lower the center of gravity and improve stability.

Ballast tanks
Compartments at the bottom of a ship that are filled with liquids for stability and to make the ship seaworthy.

Bank Comfort Letter (BCL)

This is a letter from the importer's bank, confirming his ability to make the payment. However, it must be understood that this does not imply any guarantee of payment from the bank.

Bank Guarantee (BG)

A Bank Guarantee (more properly called a Banker’s Guarantee) is a banking arrangement whereby a bank substitutes its creditworthiness for that of its customer. Unlike an L/C which is intended to be paid, a BG is a contingent obligation. “Contingent” means “depending on the happening of an event, which may or may not occur” and 99% of the time it is not paid because the event does not happen. Every day, banks big and small issue BGs on behalf of their customers for a variety of mundane purposes. A BG is never issued for the bank’s own account, always on behalf of its customers, and the final liability falls on the customers. The most common type of BG is performance-related, in which a bank tells the beneficiary if the customer does not do this or that, the bank will pay.

Beam
The width of a ship.

Berth
A place in which a vessel is moored or secured; place alongside a quay where a ship loads or discharges cargo.

Berth term
Shipped under a rate that does not include the cost of loading or unloading.

Berth dues (or quay dues or dockage)
Charges for the use of a berth. Typically assessed based on the duration of a vessel’s stay and length overall (LOA).

Bill of lading (BL) or (BOL)
It is the document that informs and specifies the cargo that was loaded on the ship. No goods are transported without the BL / BOL. This document accompanies the cargo on the ship to the destination port.

Bond port
Port of a vessel’s initial customs entry to any country; also known as first port of call.

Bonded warehouse
A warehouse authorized by customs authorities for storage of goods on which payment of duties is deferred until the goods are removed.

Breakbulk
Loose, noncontainerized cargo stowed directly into a ship’s hold.

Broker
A person who arranges for transportation of loads for a percentage of the revenue from the load.

Build-operate-transfer (BOT)
A form of concession where a private party or consortium agrees to finance, construct, operate and maintain a facility for a specific period and transfer the facility to the concerned government or port authority after the term of the concession. The ownership of the concession area (port land) remains with the government or port authority during the entire concession period. The concessionaire bears the commercial risk of operating the facility.

Build-own-operate-transfer (BOOT)
A form of concession where a private party or consortium agrees to finance, construct, own, operate and maintain a facility for a specific period and transfer the facility to the concerned government or port authority after the term of the concession. The ownership of the concession area (port land) vests in the private party or consortium during the entire concession period and is transferred to the government or port authority at the end of the concession period. As with the BOT, the concessionaire bears the commercial risk of operating the facility.

Bulkhead
A structure to resist water; a partition separating one part of a ship from another part.

Bulk vessel
All vessels designed to carry bulk cargo such as grain, fertilizers, ore, and oil.

Bunkers
Fuel used aboard ships.

C

Cabotage
Shipments between ports of a single nation, frequently reserved to national flag vessels of that nation. 

Cargo tonnage
Ocean freight is frequently billed based on weight or measurement tons. Weight tons can be expressed in terms of short tons of 2,000 pounds, long tons of 2,240 pounds, or metric tons of 1,000 kilograms (2,204.62 pounds). Measurement tons are usually expressed as cargo measurements of 40 cubic feet (1.12 cubic meters) or cubic meters (35.3 cubic feet).

Carriage and Insurance Paid To Insurance (CIP)

Is an important measure to ensure the protection of goods during transport, especially in international operations.

Carriage Paid To (carriage paid until) (CPT)

This is an Incoterm where the seller pays the carriage and other costs related to the delivery of the goods to the buyer at a specified destination. The risk of loss or damage to the goods passes to the buyer upon delivery to the first carrier, not at the final destination. This Incoterm is multimodal, applicable to all modes of transport, and the buyer is responsible for import and insurance.

Carrier
Any person or entity who, in a contract of ­carriage, undertakes to perform or to procure the performance of carriage by sea, inland waterway, rail, road, air, or by a combination of such modes.

Cartage
Intraport or local hauling of cargo by drays or trucks (also referred to as drayage).

Cash Against Documents (CAD)

This acronym stands for "Cash Against Documents” and is indicative of a type of sale where title documents are only transferred when payment is made.

Cash in Advance (CIA)

This acronym stands for "Cash in Advance", which is a type of sale in which the full amount of the purchase price of an order must be paid upfront. This is not standard procedure in the sugar trading industry, and it is not advised that any buyer pays upfront for sugar that has not yet been shipped.

Cost and Freight (CFR)

The price includes the cost of the goods, loading, and freight to the named Destination Port. This does not include unloading charges.

Cost Insurance and Freight (CIF)

In this type of export, the exporter / supplier is responsible for paying all costs to the port of destination, that is, transport to the port of shipment, the shipment of goods on board of the ship, freight and transport insurance.

China Certification & Inspection Group (CCIC)

Is a State-owned mega group providing inspection, verification, certification and testing services, founded with approval by China’s State Council as well as registered by the State Administration of Industry and Commerce (SAIC). CCIC is also an independent third party inspection and certification organization with accreditation by General Administration of Quality Supervision, Inspection and Quarantine of the People's Republic of China (AQSIQ), Certification and Accreditation Administration of the People's Republic of China CNCA) and China National Accreditation Service for Conformity Assessment (CNAS).

Chassis
A frame with wheels and container locking devices to secure the container for movement.

Classification yard (also commonly known as a shunting yard)
A railroad yard with many tracks used for assembling freight trains.

Cleaning in transit
The stopping of articles (such as farm products) for cleaning at a point between the point of origin and destination.

Clearance
The size beyond which vessels, cars, or loads cannot pass through, under, or over bridges, tunnels, highways, and so forth.

Cleat
A device secured on the floor of a container to provide additional support or strength to a cargo-restraining device, or a device attached to a wharf to secure mooring lines.

Common carrier
A transportation company that provides service to the general public at published rates.

Concession
An arrangement whereby a private party ­(concessionaire) leases assets from a authorized public entity for an extended period and has responsibility for financing specified new fixed investments during the period and for providing specified services associated with the assets; in return, the concessionaire receives specified revenues from the operation of the assets; the assets revert to the public sector at expiration of the contract.

Confirming Bank

A confirming bank is a bank which agrees to honour a bank guarantee or letter of credit issued by another bank.

Conservancy
In some countries, this fee is levied to retain upkeep of the approaches to waterways and canals.

Consolidation
Cargo consisting of shipments of two or more shippers or suppliers. Container load shipments may be consolidated for one or more consignees.

Container
Steel or aluminum frame forming a box in which cargo can be stowed meeting International Standard Organization (ISO)-specified measurements, fitted with special castings on the corners for securing to lifting equipment, vessels, chassis, rail cars, or stacking on other containers. Containers come in many forms and types, including ventilated, insulated, refrigerated, flat rack, vehicle rack, open top, bulk liquid, dry bulk, or other special configurations. Typical containers may be 10 feet, 20 feet, 30 feet, 40 feet, 45 feet, 48 feet, or 53 feet in length, 8 feet or 8.5 feet in width, and 8.5 feet or 9.5 feet in height.

Container freight station
A dedicated port or container terminal area, usually consisting of one or more sheds or warehouses and uncovered storage areas where cargo is loaded (“stuffed”) into or unloaded (“stripped”) from containers and may be temporarily stored in the sheds or warehouses.

Container pool
An agreement between parties that allows the efficient use and supply of containers; a common supply of containers available to the shipper as required.

Container vessel
Ship equipped with cells into which containers can be stacked; containerships may be full or partial, depending on whether all or only some of its holds are fitted with container cells.

Container terminal
An area designated for the handling, storage, and possibly loading or unloading of cargo into or out of containers, and where containers can be picked up, dropped off, maintained, stored, or loaded or unloaded from one mode of transport to another (that is, vessel, truck, barge, or rail).

Container yard
A container handling and storage facility either within a port or inland.

Contraband
Cargo that is prohibited.

Contract carrier

Any person not a common carrier who, under special and individual contracts or agreements, transports passengers or cargo for compensation.

Controlled atmosphere
Sophisticated, computer controlled systems that manage the mixture of gases within a container throughout an intermodal journey, thereby reducing decay.

Customhouse
A government office where duties are paid, documents filed, and so forth, on foreign shipments.

Customs broker
A person or firm, licensed by the customs authority of their country when required, engaged in entering and clearing goods through customs for a client (importer).

Cut-off time (closing time)
The latest time a container may be delivered to a terminal for loading to a scheduled barge, ­vessel, train, or truck.

Certificate of Origin (COO) or (CO)

A documentary statement signed by the exporter and attested to by a local Chamber of Commerce/Consulate, attesting the country of origin (normally the exporter's) of the goods being shipped. Some countries have different types of CO (e. g. Singapore has 'Ordinary' and 'Preferential')

D

Daily running cost
Cost per day of operating a ship.

Delivered at Place (DAP) 

The seller must clear the goods for export in their country, carry out international transport and take the goods to the agreed location. Import clearance at the destination, as well as unloading the goods, are the responsibility of the buyer.

Delivered at Terminal DAT)

The seller must clear the goods for export in his country, carry out the international transport, unload the goods and make them available at the cargo terminal mentioned in the contract, from the moment the seller deposits the goods at the cargo terminal, his responsibility for it ceases, as well as the risk of transport, which becomes the buyer's responsibility.

Delivered Duty Paid (delivered duty paid) (DDP)

To the named Destination (which can be customer’s works) e.g. DDP New York. All delivery charges and duties to the named destination are paid by the exporter.

Delivered At Place (delivered on site) (DAP) 

Use of this INCOTERMS in Transport Insurance, In DAP, the seller takes the goods to the place agreed with the buyer.

Delivered At Place Unloaded (DPU)

Use of this INCOTERMS in Transport Insurance, DPU is good for all types of transport, even one that uses more than one.

Deconsolidation points
Place where cargo is ungrouped for delivery.

Demurrage
A penalty charge against shippers or consignees for delaying the carrier’s equipment beyond the allowed free time. The free time and demurrage charges are set forth in the charter party or freight tariff.

Dock or quay
A structure attached to land to which a vessel is moored.

Documentary Letter of Credit (DLC)

It is a type of LC that guarantees payment to the exporter, provided that the correct documents specified in the terms and conditions contained in the DLC are presented.

Draft Contract (DC)

A draft contract is an initial contract which is drawn up and sent from the Seller to the Buyer. The Buyer can make amendments and send it back to the Seller for consideration. This process continues until both parties are satisfied with the terms of the contract.

Draft (or draught)
The depth of a ship while in the water. Measured as the vertical distance between the waterline and the lowest edge of the keel.

Dredging
Removal of sediment to deepen access channels, provide turning basins for ships, and maintain adequate water depth along waterside facilities.

Dry bulk
Loose, mostly uniform cargo, such as Agri bulk products, coal, fertilizer, and ores, that are transported in bulk carriers.

Dunnage
Material used in stowing cargo either for separation or the prevention of damage.

E

Electronic data interchange (EDI)
Transmission of transactional data between computer systems.

EDIFACT
Electronic Data Interchange for Administration, Commerce, and Trade. International data interchange standards sponsored by the United Nations.

Eminent domain
The sovereign power to take property for a necessary public use, with reasonable compensation.

Ex-Works (EXW)

The buyer pays all costs of transport from pickup at the suppliers premises. e.g. EXW Hong Kong.

Escrow

Is an arrangement for a third party to hold the assets of a transaction temporarily. The assets are kept in a third-party account and are only released when all terms of the agreement have been met. The use of an escrow account in a transaction adds a degree of safety for both parties.

F

Feeder service
Transport service whereby loaded or empty containers in a regional area are transferred to a “mother ship” for a long-haul ocean voyage.

Fixed costs
Costs that do not vary with the level of activity. Some fixed costs continue even if no cargo is carried, for example, terminal leases, rent, and property taxes.

Force majeure
The title of a common clause in contracts, exempting the parties from nonfulfillment of their obligations because of conditions beyond their control, such as earthquakes, floods, or war.

Foreign trade zone
A free port in a country divorced from customs authority, but under government control. Merchandise, except contraband, may be stored in the zone without being subject to import duty regulations.

Forty-foot equivalent unit (FEU)
Unit of measurement equivalent to one forty-foot container. Two twenty-foot containers (TEUs) equal one FEU.

Free trade zone
A zone, often within a port (but not always), designated by the government of a country for duty-free entry of any nonprohibited goods. Merchandise may be stored, displayed, or used for manufacturing within the zone and reexported without duties being applied. Also referred to as free port.

Free on Board (FOB)

In this type of export, the exporter / supplier is responsible for all expenses until the goods are shipped on the ship.

Full Container Load(FCL) 

Is a shipping method where a single shipper books an entire shipping container for their exclusive use, regardless of whether the container is completely full.

Full Corporate Offer (FCO)

It is the formal confirmation of the deal by the exporter / supplier. He will also face sanctions if he does not close the deal.

Freight, demurrage, and defence
Class of insurance provided by a protection and indemnity (P&I) club that covers legal costs incurred by a shipowner in connection with claims arising from the operation of the ship.

Freight forwarder
Person or company who arranges for the carriage of goods and associated formalities on behalf of a shipper. The duties of a forwarder include booking space on a ship, providing all the necessary documentation, and arranging customs clearance.

Freight payable at destination
Method of paying the freight often used for shipment of bulk cargo, the weight of which is established on discharge from the ship.

G

Gantry crane
A crane fixed on a frame or structure spanning an intervening space typically designed to traverse fixed structures such as cargo (container) storage areas or quays and which is used to hoist containers or other cargo in and out of vessels and place or lift from a vessel, barge, trucks, chassis, or train.

Gateway
A point at which freight moving from one territory to another is interchanged between transportation lines.

General Administration of Customs of China (GACC)

Responsible for national customs work. It includes entry and exits inspection and quarantine, work policies, drafting relevant laws and regulations, and formulating customs plans, departmental regulations, and relevant technical specifications. Responsible for organizing and promoting the construction of “electronic system customs clearance” at the port. Work with relevant departments to formulate port management rules and regulations, organize the formulation of port development plans and coordinate implementation, take the lead in formulating the joint prevention and control work system for port security, and coordinate the port-related intelligence collection, risk analysis, judgment and disposal. Coordinate the working relationship of various departments in customs clearance, and guide and coordinate the work of local government ports.

General Data Protection Regulation (GDPR)

Is the strongest privacy and security law in the world.

This regulation updated and modernised the principles of the 1995 data protection directive. It was adopted in 2016 and entered into application on 25 May 2018.

The GDPR defines:

-individuals’ fundamental rights in the digital age

-the obligations of those processing data

-methods for ensuring compliance

-sanctions for those in breach of the rules.

Good international practice

Term used in contracts, meaning the exercise of that degree of skill, diligence, and prudence that would, to satisfy internationally accepted standards of performance, reasonably be practiced by an experienced person holding all applicable qualifications who is engaged in the same type or similar types of activity under the same or similar circunstances.

Grounding
Contact by a ship with the ground while the ship is moored or anchored because of the water level dropping, or when approaching the coast because of a navigational error.

Groupage
The grouping together of several compatible consignments into a full container load. Also referred to as consolidation.

H

Harbor dues (or port dues)
Charges by a port authority to a vessel for each harbour entry, usually on a per gross tonnage basis, to cover the costs of basic port infrastructure and marine facilities such as buoys, beacons, and vessel traffic management system.

Hand-over
Term used in contracts, meaning the process of providing exclusive, unencumbered, peaceful, and vacant possession of and access to a concession area and the existing operational port infrastructure and also all rights, title (free of all encumbrances and security), and interest in all the movable assets and all the facilities by the government or the port authority on the hand-over date for the conduct of terminal operations.

Harbourmaster
An officer who oversees vessel movements, safety, security, and environmental issues within a port.

Heavy lift charge
A charge typically imposed when special lifting gear is required to handle a given piece of cargo, which may be of either heavy weight or of large dimensions (often referred to as “out of gauge” when dealing with container vessels).

Hold
A ship’s interior storage compartment.

I

In bond
Cargo moving under customs control where duty has not yet been paid.

International Banking Days

Refers to the days and dates that banks conduct business, the same as business days. These days do not include weekends or bank holidays.

International Chamber of Commerce (ICC)

Is the largest, most representative business organization in the world. ICC represents over 45 million businesses in over 170 countries who have interests spanning every sector of private enterprise.

International Trade Terms (INCOTERMS)

Created by the International Chamber of Commerce (ICC)

Inducement
Placing a port on a vessel’s itinerary because the volume of cargo offered by that port justifies the cost of routing the vessel.

Inland carrier
A transportation company that hauls export or import traffic between ports and inland points.

Intermodal
Movement of cargo containers interchangeably between transport modes where the equipment is compatible within the multiple systems.

Irrevocable Corporate Purchase Order (ICPO)

This document formalizes the buyer's position in closing the deal. It contains all the conditions and information related to the business and serves as a reference for issuing the export / import contract to be signed between the exporter / supplier and the buyer. After the issuance of the ICPO the buyer will face sanctions if he does not proceed in the deal.

Irrevocable Letter of Credit (ILC)

This document cannot be changed or cancelled without the consent of the issuing bank and the exporter / supplier. Payment is guaranteed by the bank if the letter of credit terms and conditions are fully complied with by the exporter / supplier.

J

Jetty (or pier)
A structure that is perpendicular or at an angle to the shoreline to which a vessel is secured for the purpose of loading and unloading cargo.

Jumboizing
Conversion of a ship to increase cargo-carrying capacity by dividing and adding a new section.

K

Keel
A flat steel plate running along the center line of a vessel.

Knot
Measure of ship speed, equal to one nautical mile (1,852 meters) per hour.

L

Lash
Abbreviation for “lighter aboard ship.” A specially constructed vessel equipped with an overhead traveling gantry crane for lifting specially designed barges out of the water and stowing them into the cellular holds of the vessel (loading) and unstowing (unloading) as well.

Laycan

An abbreviation of "lay day cancelling date" or "lay days cancelling". A term used in a voyage charterparty, (supra) referring to the period between the commencement of laytime (infra) (being the beginning of the "lay days" when the charterer must commence loading the cargo), and the cancelling date (being the date after which the charterer may repudiate the charter party if the ship has not then arrived at the specified port or place of loading). This period, also called the "laycan spread", is typically expressed as two dates, for example "laycan 25 March/2 April", meaning that the charterer may not be obliged to commence loading earlier than 25 March even if the ship has arrived at the specified port or place of loading by that date, and that he may cancel the charterparty if the ship has not arrived there by 2 April.

Loaded draught (or draft)
Depth of water to which a ship is immersed when fully loaded.

Landlord port
An institutional structure where the port authority or other relevant public agency retains ownership of the port land and responsibility for port planning and development, as well as the maintenance of basic port infrastructure and aids to navigation.

Lender’s direct agreement
Agreement between parties to a concession or BOT agreement (government or port authority and special purpose vehicle [SPV] or terminal operator) and the lenders (usually banks or a consortium of banks) setting out the rights and obligations of the lenders in relation to the government or port authority regarding the facilitation of the financing of a port project. The lender’s direct agreement is used in the event of a proposed termination of the concession agreement to induce the lenders to provide the debt to the SPV or operator under the financing documents. These rights and obligations usually comprise assignment rights with respect to the concession and the site lease agreement, priority rights with respect to of repayment of the debt, and step-in rights in case of termination because of breach of contract by the SPV or operator.

Lighter
An open or covered barge towed or pushed by a tugboat or a pusher tug and used primarily in harbour’s and on inland waterways to carry cargo to or from the port.

Limited recourse financing
Project financing in which sponsors or governments agree to provide contingent financial support to give lenders extra comfort; typically provided during the construction and start-up period of a project, which is generally the riskiest time in the life of an infrastructure project.

Line hauls
The movement of freight over the tracks of a transportation line from one location (port or city) to another.

Liner
A vessel sailing between specified ports on a regular basis.

Lloyds’ Registry
An organization engaged in the surveying and classing of ships so that insurance underwriters and others may know the quality and condition of the vessels involved.

Letter of Intent (LOI)

It is the document that initiates the deal, through which the buyer formally declares his intention to start an operation. Contains preliminary information about the business.

Letter of credit (LC)

It is a financial instrument issued by a bank which guarantees the exporter the payment to be made by the importer, obeying the established term and value.

Longshoreman (or docker, port worker, or dock worker)
Individual employed locally in a port to load and unload ships.

Lo-lo (lift-on lift-off)
Cargo handling method by which vessels are loaded or unloaded by either ship or shore cranes.

M

Malacca-max
Maximum size of container and bulk vessels (in terms of draught) that can cross the Malacca Straits. The Malacca-max reference is believed to be today the absolute maximum possible size for future container vessels (approximately 18,000 TEU).

Main port
A large multipurpose port serving several countries and regions.

Management contract
An arrangement whereby the operation and management of a facility is contracted by the public authority to a specialized operator for a specified period and under specified conditions relating to performance criteria, economic incentives, and maintenance and infrastructure commitments. The public authority retains ownership of the facility, and the commercial risk associated with its operation.

Mezzanine financing
A mix of financing instruments, including equity, subordinated debt, completion guarantees, and bridge financing, the balance of which changes as the risk profile of a project changes (that is, as a project moves beyond construction into operation).

Mixed cargo
Two or more products carried on board one ship.

Mobile crane
General purpose crane capable of moving on its own wheels from one part of a port to another.

Moor
To attach a ship to the shore by ropes.

MT 103

Bank transfers. SWIFT MT-103 is used by the bank when its customers wish to make payment to customers of another bank in another country. 

MT 700

It is issued by the originating bank, which opens the documentary credit on behalf of the applicant (typically a buyer or importer) and is sent to the advising bank, usually located in the beneficiary’s (the seller or exporter) country. This critical financial document plays a vital role in facilitating secure and efficient transactions across borders, ensuring that all parties involved adhere to any agreed-upon terms and conditions.

MT 720

The MT 720 message is crucial in international trade finance. It is designed for when a beneficiary requests a documentary credit to be transferred to a second beneficiary. This SWIFT message is dispatched by the bank authorised to manage the transfer and directed towards the bank advising the second beneficiary.

MT 760

Is a specific message type used by banks to issue or request a bank guarantee, standby letter of credit (SBLC), or documentary credit. It functions as a formal commitment, with the sender's bank guaranteeing payment on behalf of a client to a beneficiary if the client defaults. This message type ensures funds are held or secured, creating financial assurance for high-value international transactions. 

MT 799

Is a specific message type used by banks to issue or request a bank guarantee, standby letter of credit (SBLC), or documentary credit. It functions as a formal commitment, with the sender's bank guaranteeing payment on behalf of a client to a beneficiary if the client defaults. This message type ensures funds are held or secured, creating financial assurance for high-value international transactions.

N

Neo bulk cargo
non-, or economically not feasible, containerize cargo such as timber, steel, and vehicles.

Nonrecourse financing
Project financing for which no loan guarantees or financial support is provided by the sponsors or governments to lenders for the project.

No vessel operating common carrier (NVOCC)
A cargo consolidator in ocean trades who buys space from a carrier and resells it to smaller shippers. The NVOCC issues bills of lading, publishes tariffs, and otherwise conducts itself as an ocean common carrier, except that it does not provide the actual ocean or intermodal service.

O

On-carrier
Person or company who contracts to transport cargo from the port or place of discharge of a sea-going or ocean-going ship to another destination by a different means of transport, such as a feeder vessel, truck, train, or barge.

On The Ground (SALES) (OTG)

Refers to the process of purchasing products that are in a local warehouse within the same country as the buyer, making the purchase possible in local currency with local taxes applied, and facilitating local, quick delivery rather than international shipping.

Optional cargo
Cargo that is destined for one of the ship’s discharge ports, the exact one not being known when the goods are loaded.

Overcarriage
The carriage of cargo beyond the port for which it was intended.

Over Price

It is an added value added by intermediaries to the price established by the exporter, to increase the value of the commission.

P

Pallet
A flat tray, generally made of wood, but occasionally steel or other materials, on which goods can be stacked. There are two principal sizes: the ISO pallet, which measures 1 x 1.2 meters, and the euro pallet at 0.8 x 1.2 meters.

Panamax
Maximum beam that allows vessels to pass through the locks of the Panama Canal (specifically used for dry bulk and container vessels).

Permanent dunnage
Strips of timber fixed to the frames of a ship to keep cargo away from the sides of the ship to avoid damage and condensation.

Performance Bond (PB)

It is a kind of guarantee / insurance that the exporter provides to the importer, to ensure the delivery of the exported goods within the negotiated conditions. It is a guaranteed title, issued by an insurance company or a bank, with the importer as the beneficiary and the costs borne by the exporter. If the exporter does not deliver the goods under the contracted conditions, the guarantee / insurance will compensate the importer for its expenses.

Pilferage
Stealing of cargo.

Pilotage
The act of assisting the master of a ship in navigation when entering or leaving a port or in confined water.

Pilotage dues
Fee payable by the owner or operator of a ship for the services of a pilot; the fee is normally based on the ship’s tonnage, draft, or length.

Platform (or flat)
A shipping container without sides, ends, or a roof. Normally 20 or 40 feet long, it is used for awkwardly shaped cargo that cannot fit on or in any other type of container.

Plimsoll mark/load lines
A series of horizontal lines and a circle with a horizontal line painted amidships of both sides of the hull of a ship marking the level that must remain above the surface of the water for the vessel’s stability.

Pontoon
Flat-bottomed floating structure with a shallow draught.

Pooling
Sharing of cargo or the profit or loss fromfreight by member lines of a liner ­conference.

Proof of Funds (POF)

A note from a buyer's bank to the seller/seller's bank that money is available to complete the proposed transaction.

Past proof of product (PPOP)

Or more commonly Partial Proof Of Product (PPOP), is a set of documents and statements provided by a seller to a buyer that proves the existence of a product and the seller's ability to supply it, often after the signing of a contract but before the full POP documents are ready. PPOP documents typically include a Product Passport (analysis report), a Product Statement of Availability, an Authority to Sell, and a Commitment Letter to Supply.

Proof of product (POP) 

Is a document that verifies the actual existence and availability of a product for sale, commonly used in international trade and commodity transactions. It serves as a guarantee to a potential buyer that the seller possesses the product they intend to sell, preventing transactions for non-existent goods. Examples of POP documents include a refinery's commitment to produce, a warehouse receipt, or a certificate from an independent inspection company like SGS, which also helps to prevent fraud by confirming quality and quantity.

Port dues (or harbor dues)
Charges levied against a shipowner or ship operator by a port authority for the use of a port (see also harbor dues).

Port of refuge
Port, not on a ship’s itinerary, which the ship calls at due to some unforeseen hazard at sea and where the ship may undergo repairs, refuel, or rescue cargo.

Port of registry
Place where a ship is registered with the ­authorities, thereby establishing its nationality.

Preentry
Presentation to the customs authorities of export or import declarations prior to the clearance of goods.

Project financing
Financing wherein the lender looks to a ­project’s cash flows to repay the principal and interest on debt, and to a project’s assets for security; also known as “structured financing” because it requires structuring the debt andequity such that a project’s cash flows areadequate to service the debt.

R

Rail-mounted gantry (RMG) or rail-mounted container gantry crane
Rail-mounted gantry crane used for container acceptance, delivery, and stacking operations in a container yard.

Ready, Willing and Able (RWA) 

It is a document issued by the importer, the exporter or a financial institution, attesting that the one who issued this document can comply with what has been adjusted. It does not constitute a guarantee of payment or supply, but it is a document that reinforces the commitment assumed by the issuer and may become evidence against him in the event of a lawsuit or arbitration.

Reefer
Refrigerated container or vessel designed to transport refrigerated or frozen cargo.

Relay
To transfer containers from one ship to ­another.

Revolving Documentary Letter of Credit (RDLC)

When a letter of credit is specifically designated as a Revolving Letter of Credit, the amount involved, when used, is automatically reinstated, that is, the amount is available again without the issuance of another letter of credit and generally maintains the same terms and conditions as the original document.

Ro/ro
A shortening of the term “roll-on roll-off.” Ro/ro is a cargo handling method whereby vessels are loaded via one or more ramps that are lowered on the quay.

Rubber-tired gantry (RTG) or rubber-tired container gantry crane
Gantry crane on rubber tires typically used for acceptance, delivery, and container stacking at a container yard.

S

Sales and Purchase Agreement (SPA)

Is a legally binding contract that details the terms and conditions for selling an asset, such as a business, company shares, between a buyer and a seller. It serves as a formal record of the transaction, outlining the price, payment details, and any conditions that must be met before the sale closes. The SPA is a crucial document for both parties, providing legal protection and ensuring clarity on responsibilities and rights throughout the transaction process.    

Shipping Schedule

The advance programmed shipment that a seller must ship to the buyer. Among other pertaining information and destinatary information, the shipping schedule written in “annex a” with a quantity of product being (± 5%) weight tolerance is accepted by the parties hereof.

Shed (also see warehouse)
Covered area for the reception, delivery, consolidation, distribution, and storage of cargo. Note: A warehouse usually points at longer term storage, whereas a shed usually is used for shorter term storage.  

Ship chandler
An individual or company selling equipment and supplies for ships.

Ship’s tackle
All rigging and so forth used on a ship to load or unload cargo.

Side loader
A lift truck fitted with lifting attachments operating to one side for handling containers.

Soft Corporate Order (SCO)

It is the formal response of the exporter / supplier to LOI, stating that it accepts the deal, setting out its conditions and information to move on.

Stand by Letter of Credit (SBLC)

It is a type of LC issued by a bank that guarantees payment to the exporter, in the event of the importer's default. The exporter presents his demand for payment to the bank, together with the declaration attesting that the importer has not fulfilled his contractual payment obligation. It is an international guarantee that can be issued freely for different types of operations and can support both commercial and financial transactions. It ensures payment to the exporter, which must be honoured by simply activating the bank, if it complies with the provisions established in the SBLC itself.

Spotting
Placing a container where required to be loaded or unloaded.

Spreader
A piece of equipment designed to lift containers by their corner castings.

Stack car
An articulated multiple platform rail car that allows containers to be double stacked.

Stack train
A rail service whereby rail cars carry containers stacked two high on specially operated unit trains.

Stevedore
Individual or firm that employs longshoremen (or dockers, dock workers, or port workers) to load and unload vessels.

Stevedoring charges
Fees for loading and stowing or unloading a ship.

Sto-ro
A vessel with capacity for breakbulk cargo as well as vehicles or trailer borne cargo.

Stowage factors
The average cubic space occupied by one ton weight of cargo as stowed aboard a ship.

Straddle carrier
Type of equipment that picks up and transports containers between its legs for movement within a container terminal.

Stripping (unstuffing)
Unloading of a container.

Supply chain
A logistics management system that integrates the sequence of activities from delivery of raw materials to the manufacturer through to the delivery of the finished product to the customer in measurable components.

T

Tare weight
The weight of wrapping or packing; added to the net weight of cargo to determine its gross weight.

Target Price

It is the price that the importer would like to pay for the product he will buy. Sets a reference price for the exporter. If the exporter can provide this price, closing the deal will be much easier.

TBC

The term TBC is known as to be confirmed, that is, “to be confirmed”. It is used when there is still no certainty that an event will happen, that is, it still needs confirmation. Despite the literal translation, it is possible to use it as “not yet confirmed” or “not yet confirmed”.

TBA

This abbreviation indicates that something has not yet been informed or has no prior definition to happen. The meaning in Portuguese is “to be announced”, that is, some data that has not been revealed and that will be soon. It is the abbreviation of the expression to be announced. TBA has greater use in releases.

TBD

The most used term among those covered today, TBD is the abbreviation of to be determined. Very common in the corporate world, TDB indicates something that has not yet been decided and that depends on some variables to be defined.

Terminal charge
A charge made for a service performed in a terminal area typically referring to handling associated with receipt, delivery, or inspection of cargo via land-based operations.

Throughput charge
The charge for moving a container through a container yard off of or onto a ship.

Top off
To fill a ship that is already partly loaded with cargo. Typically occurs where there is a draught restriction at the first load port—the ship loads a quantity of cargo corresponding to the permissive draught, then fills up at the second port where there is no restriction.

Tops stow cargo
Goods that are stowed on top of all others in a ship’s hold because of their relatively low density and the probability that they would be damaged if overstowed.

Top lifter
Forklift truck capable of lifting a container by means of its spreader.

Towage
Charges for the services of tugs assisting a ship or other vessels in ports.

Tramp line
An ocean carrier company operating vessels on other than regular routes and schedules.

Transshipment
A distribution method whereby containers or cargo are transferred from one vessel to another to reach their destination, compared to a direct service from the load port of origin to the discharge port of destination. This method is often used to gain better vessel utilization and thereby economies of scale by consolidating cargo onto larger vessels while transiting in the direction of main trade routes.

Transshipment port
A port where cargo is transferred from one carrier to another or from one vessel of a carrier to another vessel of the same carrier without the cargo leaving the port.

Turnaround time
The time it takes between the arrival of a vessel and its departure from port; frequently used as a measure of port efficiency.

Twenty-foot equivalent unit (TEU)
Container size standard of twenty feet. Two twenty-foot containers (TEUs) equal one FEU. Container vessel capacity and port throughput capacity are frequently referred to in TEUs.

Telegraphic Transfer (TT)

A telegraphic transfer (TT) is an electronic method of transferring funds utilized primarily for overseas wire transactions. Bank transfer. 

Tabletop Meeting (TTM)

Sometimes required for large transactions - where the parties physically meet at a prescribed location, usually involving the exchange of documents.

U

Unitization
The consolidation of a quantity of individual items into one large shipping unit for easier and faster handling through methods such as palletizing, stripping, slinging and containerization.

Unloader
Port equipment employed to unload ships carrying dry bulk cargo. (Note: Small movable and hoistable unloaders are sometimes referred to as “vacuvators.”)

Unmoor
To remove the ropes that attach a ship to the shore.

Unstuffing (or stripping)
Unloading of a container.

V

Variable cost
Costs that vary directly with the level of activity within a short time. Examples include costs of ­moving cargo inland on trains or trucks, stevedoring in some ports, and short-term equipment leases.

Vessel manifest
Declarations made by international ocean carriers relating to the ship’s crew and contents at both the port of departure and arrival. All bills of lading are registered on the manifest.

Vessel traffic management system
Vessel control and management system (VTMS) usually under the authority of the harbourmaster, comprising equipment (such as