Freight Forwarding Terminology

Cost and Freight. A trading term used in the sale of goods to denote that the price includes the main freight to the named port of destination.

Cost and Insurance. A trading term used in the sale of goods to denote that the price includes the costs to the port of export and marine insurance to the destination.

Full (Cellular) Container Ship.

Charter Party

Currency and Bunker Adjustment Factor. An adjustment factor representing variations in the price of bunkers and exchange rates, expressed as a plus/minus percentage which is applied to freight calculations.

1. The carriage of goods or passengers for remuneration taken on at one point and discharged at another point within the territory of the same country.
2. The use of foreign flagged vessels for internal or domestic transportation.

Reservation of a country's coastal (domestic) shipping for its own flag vessels.

Confederation of Asia-Pacific Chambers of Commerce and Industry.

Currency Adjustment Factor. An adjustment factor representing variations in exchange rates expressed as a plus/minus percentage which is applied to freight calculations. See also CABAF.

A device which is stronger and more durable than a pallet used as intermodal transport equipment in some short sea trades.

The act of loading and discharging a cargo ship.

A plan giving the quantities and description of the various grades carried in the ship's cargo tanks, after the loading is completed.

Clauses introduced by charterers based on shortage of delivered cargo because of increased oil prices.

Owner or operator of vessels providing transportation to shippers. The term is also used to refer to the vessel.

Shipping company issued bill of lading for carriage of cargo from place of origin to the place of destination stated on the bill of lading.

Es el documento más importante en las cargas terrestres dado que cumple las mismas funciones que el conocimiento de embarque marítimo, es decir que concede la titularidad de la mercadería al poseedor del mismo. Por lo general, este es emitido por la compañía de transporte terrestre. De acuerdo a los requerimientos bancarios y de lo oportunamente acordado entre el exportador y el importador, los documentos originales de la mercadería pueden viajar con el medio de transporte o ser enviados por separado.

Partly open container equipped with rails, boxes and cribs for the transport of livestock.

Cubic feet

Cubic meters

Container control System. Monitors the movement and status of containers.

Cancel Cargo Receipt.

Freight and/or other charges to be collected in the destination country. See also DUE AT DESTINATION.

Container Daily Logs.

Container Even Cancellation.

The position in a cellular container ship in which the container is stowed.

1. Guidance system enabling containers to be carried in a vertical line in the ship, each container supporting the one above it.
2. Position on board a vessel in which a cargo container is stowed, designated by Bay-Column-Height in a stow.

A ship specialized for container transport in which the holds have vertical guides into which containers are lowered to form secure stacks retained at all four corners.

Certificate issued by an approved body in the country of origin which attests to the origin of goods. Chambers of Commerce are normally approved bodies.

A document specifying the nation registry of the vessel.

Cost and Freight (... named port of destination). CFR is a "C" Incoterm where the seller is responsible for contracting and paying for carriage of the goods, but not responsible for additional costs or risk of loss or damage to the goods once they have been shipped. C terms evidence "shipment" (as opposed to "arrival") contracts.

Container Freight Station. A depot in which ISO shipping containers are stored, packed, unpacked, received and delivered. Normally the CFS will aso have facilities for quarantine, fumigation, etc. The containers are then sent to or received from a CONTAINER TERMINAL. Also called a Container Depot or Container Park in some countries.

A charge for LCL packing/unpacking.

The person to whom is given the use of the whole of the carrying capacity of a ship for the transportation of cargo or passengers to a stated port for a specified time.

Cost, Insurance and Freight (... named port of destination). A trading term used in the sale of goods to denote that the price includes the main freight and marine insurance costs to port of destination.
The seller/exporter/manufacturer clears the goods for export and is responsible for delivering the goods past the ship's rail at the port of shipment (not destination). The seller is responsible for paying for the costs associated with transport of the goods to the named port of destination. However, once the goods pass the ship's rail at the port of shipment, the buyer assumes responsibility for risk of loss or damage as well as any additional transport costs.
The seller is also responsible for procuring and paying for marine insurance in the buyer's name for the shipment.
The Cost and Freight term is used only for ocean or inland waterway transport.
The "named port of destination" in Cost and Freight and all "C" terms is domestic to the buyer.
Normal payment terms for Cost and Freight transactions include cash in advance, open account, and letters of credit.

Container Inquiry Message.

Carriage and Insurance Paid To (... named port of destination). In CIP, the seller/exporter/manufacturer clears the goods for export, delivers them to the carrier, and is responsible for paying for carriage and insurance to the named port of destination. However, once the goods are delivered to the carrier, the buyer is responsible for all additional costs.
In Incoterms 2000 the seller is also responsible for the costs of unloading, customs clearance, duties, and other costs if such costs are included in the cost of carriage such as in skmall package courier delivery.
The seller is responsible for procuring and paying for insurance cover.
The CIP term is valid for any form of transport including multimodal.
The "named port of desination" in CIP and all "C" terms is domestic to the buyer, but is not necessarily the final delivery point.
The CIP term is often used in sales where the shipment is by air freight, cotainerized ocean freight, courier shipments of small parcels, and in "ro-ro" (roll-on, roll-off) shipments of motor vehicles.
A "carrier" can be a shipping line, airline, trucking firm, railway or also an individual or firm who undertakes to procure carriage by any of the above methods of transport including multimodal. Therefore, a person, such as a freight forwarder, can act as a "carrier" under this term.
If subsequent carriers are used for the carriage to the agreed destination, the risk passes when the goods have been delivered to the first carrier.

Container Inspection Report.

Completely Knocked Down. Complete goods which are shipped at a sub-component or component level, especially vehicles.

Container Load.

Container Location Change.

Container Load Plan.

Container Movement Order.

Consignee Notification - cargo arrival notification.

Contract of Affreightment, e.g. bill of lading, sea way bill, air way bill. A service contract under which a ship owner agrees to transport a specified quantity of fuel products or specialty products, at a specified rate per ton, between designated loading and discharge ports. This type contract differs from a spot or consecutive voyage charter in that no particular vessel is specified.

Cash (Collect) on Delivery.

Carriage of Goods by Sea

1. A container, the major components of which can be dis-assembled and later re-assembled for use.
2. A container with hinged sides (and top) designed to be folded down to a small proportion of its erected volume. See also FOLDING CONTAINER.

Vessel used for transporting coal.

Convention on International Regulations for Preventing Collisions at Sea.

Combination passenger/cargo vessel; a vessel specifically designed to carry both containers and conventional cargoes.

Ships which can carry both liquid and dry bulk cargoes.

Carriage of goods by at least two different modes of transport between the points of shipment and destination of the goods.

A contract of affreightment evidencing the contract for the performance and/or procurement of performance of combined transport of goods (e.g.: a combined transport bill of lading).

A person or organization issuing a combined transport document.

1. Devices for positioning containers.
2. Devices on ships to bind and aid security of container deck stows.

Individual or company to whom cargo is shipped or consigned as stated on the bills of lading or air way bills.

Single item of cargo described for freighting, import/export documents, physically carried from one origin to one destination.

The person named in the bill of lading or air way bill as the one from whom the goods have been received for shipment.

Combining of more than one shipment into a container.

A person or organization who arranges consolidation of cargo.

Ocean freight rate applicable to shippers who sign an agreement with a Shipping Conference to ship exclusively with the Conference members to the areas they serve.

1. A large rectangular or square container/box of a strong structure that can withstand continuous rough handling from ship to shore and back, especially designed to facilitate the transport of goods, by one or more transport modes, without the need for intermediate reloading, and easy to fit and transport. It opens from one end or side to allow cargo to be stacked and stowed into it. ISO sizes prescribed are normally: 20' x 8' x 8' and 40' x 8' x 8' (imperial measurement), although there are numerous variations on height.
2. A van, flatrack, open top trailer or other similar trailer body on or into which cargo is loaded and transported without chassis aboard ocean vessels.

A facility, usually inland, for the collection/distribution of cargo and for stuffing/unstuffing containers. See also CONTAINER DEPOT, CONTAINER PARK.

A specialized port facility allowing for high speed reception, delivery and movement of container ships and containers. See also CONTAINER TERMINAL.

A facility, usually inland, for the collection/distribution of cargo and for stuffing/unstuffing containers. See also CONTAINER BASE.

The end of a container opposite the doors.

A shipment of sufficient size to fill a container, either by cubic measurement or weight, depending upon governing tariff to meet the provided minimum. See also FCL.

An alpha-numeric number used to uniquely identify an individual container. The alphabetic portion usually indicates the container owner, the last number is a check digit but still forms part of the number (e.g.: OCLU 2032021).

1. Transportation of containers without wheels on railway flatcars.
2. Rail tariff related to carriage of containers by rail on flatcars (USA).

Consignment which does not occupy the full capacity of a container nor equals the maximum payload and will therefore allow the inclusion of another or other part loads. See also LCL.

An agreement between various transport carriers and/or container leasing companies concerning the exchange of containers.

System whereby ship owners, manufacturers or operators create a container pool for common use and maximum utilization.

A device inserted into the handle assembly on the door of the container, numbered and coded and referenced on the bill of lading and manifest. A broken or damaged seal indicates that the cargo in the container may have been tampered with. The sophistication of seals can range from a simple, numbered plastic tag - called an entry seal and used on an empty container - to an electronic seal that immediately indicates through global electronic positioning technology when and where it has been broken.

A ship constructed in such a way that it can easily stack containers near and on top of each other as well as on deck. A vessel designed to carry standard intermodal containers enabling efficient loading, unloading, and transport to and from the vessel. Oceangoing merchant ship designed to transport a unit load of standard-sized containers 8 feet square and 20 or 40 feet long. The hull is divided into cells that are easily accessible through large hatches, and more containers can be loaded on deck atop the closed hatches. Loading and unloading can proceed simultaneously using giant traveling cranes at special berths. Container ships usually carry in the range of 25,000 to 50,000 deadweight tons. Whereas a general-cargo ship may spend as much as 70 percent of its life in port loading and discharging cargo, a container ship can be turned around in 36 hours or less, spending as little as 20 percent of its time in port. This ship type is the result of American design innovation. Specialized types of container ships are the LASH and SeaBee which carry floating containers (or "lighters,") and RoRo ships, which may carry containers on truck trailers.

A frame, built to ISO container dimensions with normal pickup and locking devices, containing a cylindrical container (tank) for the carriage of bulk liquids, powders or gasses.

A Container wharf and handling facility for the loading and unloading of ISO containers from ships with suitable container cranes. It may also incorporate a CFS. See also CONTAINER BERTH, WHARF.

A term used in the Container Transport Convention to denote the carrier, or contractor, taking responsibility for intermodal transportation of containers.

The controlling of the atmosphere within a container (in addition to temperature control) to prolong the storage life of goods, usually fruit or horticultural produce.

Ships which have limited special facilities for the fast handling of cargo or for handling specialized cargo, with standard size hatchways, served by derricks or cranes and involving manhandling of cargo to reach stowed position.

Container with corrugated walls and ends, etc., which give added strength.

Clip-On Unit. Separate refrigeration unit which can be clipped on to an insulated container.

Device for coupling the bottom corner casting when joining two 20' containers into a single 40' unit - 'Twin twenties'.

Cancellation Part Message.

Carriage Paid To (... named port of destination). In CPT, the seller/exporter/manufacturer/ clears the goods for export, delivers them to the carrier, and is responsible for paying for carriage to the named port of destination. However, once the seller delivers the goods to the carrier, the buyer becomes responsible for al additional costs.
In Incoterms 2000 the seller is also responsible for the costs of unloading, customs clearance, duties, and other costs if such costs are included in the cost of carriage such as in small package courier celivery.
The seller is not responsible for procuring and paying for insurance cover.
The CPT term is valid for any form of transport including multimodal.
The "named port of destination" in CPT and all "C" terms is domestic to the buyer, but is not necessarily the final delivery point.
The CPT term is often used in sales where the shipment is by air freight, containerized ocean freight, courier shipments of small parcels, and in "ro-ro" (roll-on, roll-off) shipments of motor vehicles.
A "carrier" can be a shipping line, airline, trucking firm, railway or also an individual or firm who undertakes to procure carriage by any of the above methods of transport including multimodal. Therefore, a person, such as a freight forwarder, can act as a "carrier" under this term.
If subsequent carriers are used for the carriage to the agreed destination, the risk passes when the goods have been delivered to the first carrier.

The personnel engaged on board ship, excluding the master and officers and the passengers on passenger ships.

List prepared by the master of a ship showing the full names, nationality, passport or discharge book number, rank and age of every officer and crew member engaged on board that ship. This serves as one of the essential ship's documents which is always requested to be presented and handed over to the customs and immigration authorities when they board the vessel on arrival.

Foreign-to-foreign trade carried by ships from a nation other than the two trading nations.

When the volumetric capacity of the container has been reached in advance of the permitted weight limit.

The most important commercial measurement when the intrinsic weight of the cargo is so low that the ship becomes full without being loaded to the cargo line. Is expressed in cubic meters or cubic feet.

The value of imported goods as assessed by the Customs Authorities according to the legislation of the importing country. This may be based on the actual value but, in certain cases, may be a notional value. In many countries this value relates to the CIF cost of the goods, but some (E.G.: Australia) relate to point of export or FOB costs.

Date by which certain action must be completed, e.g.: delivery of cargo to ship.

Container Yard. A container depot or terminal.