Glossary
Logistics & Trade Glossary (A–Z)
Informational glossary for commercial use (not legal advice). Local law, conventions, and contract terms can override general definitions.
A
AAR (All Risks) — Common shorthand for broad cargo insurance cover, often aligned to Institute Cargo Clauses (A). “All risks” still includes standard exclusions (e.g., inherent vice, inadequate packing, delay).
Abandon — A legal/insurance process where a shipper/consignee seeks to abandon cargo (in whole or part) to claim a total loss, subject to policy terms.
Act of God — Event beyond reasonable human control (e.g., earthquake, flood, lightning) that may affect liability and force majeure analysis.
Ad Valorem — “According to value.” Used for duties, taxes, or charges calculated as a percentage of cargo value.
Advice of Shipment — Notice to buyer that goods have shipped, typically including routing, packing details, dates, and often copies of key documents (invoice/B/L).
Advising Bank — Bank (usually in the seller’s country) that authenticates and advises a letter of credit (L/C) to the beneficiary without necessarily adding its own payment undertaking.
Affreightment — Contract under which an ocean carrier provides cargo space on a vessel at a specified time/price (e.g., charter party arrangements).
Agent (Agt) — Party authorized to act on behalf of another. In logistics, “agent vs principal” matters: it drives liability, contracting party, and claims path.
Air Waybill (AWB) — Non-negotiable air transport document evidencing the contract of carriage and receipt of goods. Increasingly issued as e-AWB.
Alongside — “Alongside ship” delivery point: goods placed within reach of a vessel’s loading tackle (typically at quay/barge), depending on the term used (e.g., FAS).
Ambient Temperature — Surrounding temperature. For containers, the atmospheric temperature to which the unit is exposed (not necessarily the cargo temperature).
Anti-Dumping Duty — Duty applied to imports deemed dumped (sold below normal value) causing injury to domestic industry.
Average — Marine insurance term for loss/damage:
- General Average: intentional sacrifice/expense to save a maritime adventure, shared proportionally.
- Particular Average: partial loss borne by the party suffering the loss (unless insured).
Arrival Notice — Carrier notification of vessel arrival to consignee/notify party, often triggering clearance and pickup steps.
API (Application Programming Interface) — System-to-system integration method enabling near real-time data exchange (increasingly used alongside or instead of EDI).
B
B/L (Bill of Lading) — See Bill of Lading.
BAF (Bunker Adjustment Factor) — Fuel-related surcharge applied to ocean freight to reflect bunker cost fluctuations (sometimes called “FAF”).
Bank Guarantee — Bank undertaking provided to secure obligations (e.g., release cargo without original negotiable B/L or cover potential claims), subject to bank terms.
Barratry — Fraudulent or grossly improper act by a vessel’s master/crew against owners’ interests, historically relevant in marine insurance.
Base Rate — Core freight rate excluding accessorials/surcharges (local charges, handling, fuel, etc.), unless explicitly stated as “all-in.”
Beneficiary — Party entitled to payment under an instrument (e.g., beneficiary of a letter of credit).
Bilateral — Contract in which both parties exchange commitments (mutual obligations).
Bill of Exchange (Draft) — Written order by one party (drawer) to another (drawee) to pay a specified sum under stated terms.
Bill of Lading (B/L) — Transport document serving as:
- Receipt for goods,
- Contract of carriage, and
- In negotiable form, a document of title.
Key variants (common commercial usage):
- Clean B/L: no adverse remarks on apparent condition/packing.
- Claused/Foul B/L: notes defects/damage/packing issues.
- On Board B/L: confirms goods loaded on named vessel.
- Received for Shipment B/L: received by carrier before on-board confirmation.
- Negotiable / “To Order” B/L: title transferable via endorsement; common under L/C.
- Straight B/L (Non-negotiable): made out to a named consignee; title transfer not by endorsement.
- Express Release / Sea Waybill: non-negotiable; typically no originals required for release (process-driven).
- House B/L: issued by forwarder/NVOCC to shipper.
- Master B/L: issued by ocean carrier to forwarder/NVOCC.
- Amended vs Corrected B/L: updated documents; in practice “corrected” often implies changes with financial impact—define your internal rule clearly.
Bill of Lading — Port of Discharge — Port where cargo is discharged from the main carriage vessel.
Bill of Sale — Document evidencing transfer of ownership in exchange for payment/consideration.
Blocking/Bracing (Dunnage) — Materials used to secure cargo and prevent shifting (wood, airbags, straps, etc.).
Board — To embark or gain access to a vessel.
Bonded Freight — Cargo moving under customs bond (duties/taxes not yet paid) to controlled destinations.
Bonded Warehouse — Customs-authorized facility for storage of goods with duty payment deferred until release.
Break Bulk — Cargo handled as individual pieces/packages (not containerized) and the process of unloading/distributing such cargo.
Bulk Cargo — Cargo shipped loose, not in packages/containers (e.g., grain, coal).
Bulk Container — Container designed for bulk commodities (hatches/liner systems), enabling gravity or controlled discharge.
Bunker Charge — Fuel surcharge in ocean transport (see BAF).
Bunkers — Marine term for fuel carried/used by a vessel.
Bridge Point — Inland point where cargo is received and moved to a port for ocean loading (often intermodal).
Bridge Port — Port where cargo is received/processed then moved to another port for vessel loading.
C
Cabotage — Transport between two points in the same country, often restricted to national carriers/flag vessels by local law.
CAF (Currency Adjustment Factor) — Surcharge applied to compensate for currency fluctuations affecting carrier costs/revenues.
Carnet (e.g., ATA Carnet) — Customs document allowing temporary admission of goods without duty payment (trade fairs, demos), subject to re-export conditions.
Cargo Manifest — Carrier document listing cargo on a specific voyage/flight, used for operational and customs purposes.
Carrier — Party that undertakes (or procures) carriage by sea/air/road/rail/inland waterway, under a contract of carriage.
Carrier’s Certificate — Certificate sometimes required for customs or documentary purposes to confirm carriage/shipment details.
Cartage — Local pickup/delivery or short-haul trucking, often within a city/port area.
Cash Against Documents (CAD) — Payment method where documents are released to buyer against cash payment (often via bank/intermediary).
Certificate of Origin (COO) — Document certifying the origin of goods; used for customs, trade policy, and preferential tariffs.
CFS (Container Freight Station) — Facility where LCL cargo is consolidated (“stuffed”) into containers or deconsolidated (“stripped”) from containers.
Claim — Formal demand for compensation for loss/damage/delay under contract, convention, or insurance policy.
Clean Bill of Lading — B/L issued without clauses noting apparent damage/defects (see Bill of Lading).
COGSA (US) — Carriage of Goods by Sea Act: US codification of Hague Rules principles governing carrier liability under ocean bills of lading.
Commercial Invoice — Primary commercial document describing the transaction (seller/buyer, goods, price, terms), used for customs valuation and trade documentation.
Commodity — Goods shipped. For regulated cargo (DG/hazmat), precise commodity identification is critical.
Common Carrier — Carrier offering services to the public under published terms (concept varies by jurisdiction/mode).
Common Law — Legal system built largely on precedent and case decisions; facts and conduct often heavily influence outcomes.
Conference (Liner) — Historical carrier cooperation model on specific routes for schedules/terms; subject to competition law and modern regulatory changes.
Confirmed Letter of Credit — L/C where a confirming bank adds its undertaking to pay, reducing issuer/buyer risk for the seller.
Confirming Bank — Bank that adds confirmation to an L/C and undertakes to pay if compliant documents are presented.
Consignee — Party to whom the goods are shipped/delivered.
Consignment — (1) Shipment of goods; (2) inventory placed with a party while title may remain with the source.
Consignor — Shipper; party shown as shipper on the B/L.
Consolidation — Combining multiple shipments into a larger shipment/unit (e.g., LCL consolidation) to optimize cost/capacity.
Consolidator — Party performing consolidation services, typically creating economies of scale.
Container — Standardized transport unit used across modes. Common lengths: 20’, 40’, 45’, 48’, 53’. Types include dry, reefer, open-top, flat rack, tank, etc.
Container Manifest — Document listing contents/sequence within a container.
Contract — Legally binding agreement defining scope, price, responsibilities, liability, and governance.
Correspondent Bank — Bank that provides services on behalf of another bank in a different jurisdiction.
Cubic Foot — Unit of volume (1 ft³ = 1,728 in³).
Customs — Government authority responsible for enforcing import/export rules, collecting duties/taxes, and ensuring compliance.
Customs Bonded Warehouse — See Bonded Warehouse.
Customs Entry — Import declaration submitted to customs to obtain release into commerce (with duty/tax settlement as required).
Customs Invoice — Invoice format required by some countries, sometimes including certificates of value/origin.
D
Demurrage — Charges for exceeding allowed free time for containers/cargo at terminals/ports (cargo/location-based).
Density — Weight per unit volume (e.g., kg/m³). A key driver of volumetric pricing.
Detention — Charges for holding carrier equipment (e.g., containers/chassis) beyond free time outside the terminal (equipment-based). Often discussed with per diem.
Devanning — Unloading a container (destuffing).
Discrepancy (L/C) — Non-compliance between presented documents and L/C terms; banks may refuse payment unless discrepancies are accepted.
Dock Receipt — Acknowledgment of cargo receipt at terminal/warehouse, often used to prepare the ocean B/L.
Documents Against Acceptance (D/A) — Collection method where documents are released against acceptance of a time draft.
Documents Against Payment (D/P) — Collection method where documents are released against payment at sight.
Door-to-Door — Transport from shipper’s premises to consignee’s premises (scope depends on contract: not automatically “all-in”).
Draft (Bill of Exchange) — Payment instrument; main forms:
- Sight Draft: payable on presentation.
- Time Draft: payable at a determinable future date.
- Clean Draft: no documents attached.
- Discounted Draft: accepted draft purchased by a bank at a discount.
Drawer — Party that issues/draws a draft (typically the seller/beneficiary).
Drawee — Party on whom the draft is drawn (expected to pay/accept; typically buyer or buyer’s bank).
Drawback — Refund mechanism for duties/taxes when goods are re-exported or used in exported products (jurisdiction-specific).
Drayage — Short-haul container transport (often port/rail ramp ↔ warehouse), typically priced separately.
DCSA — Industry body publishing standards/APIs to digitize container shipping processes (e.g., B/L data, track & trace).
E
EDI (Electronic Data Interchange) — Standardized electronic exchange of business documents/messages between systems; still widely used in logistics (often alongside APIs).
e-AWB (Electronic Air Waybill) — Electronic issuance/exchange of AWB data between forwarder and airline.
eBL (Electronic Bill of Lading) — Digital B/L enabling electronic issuance/transfer/surrender (legal recognition depends on corridor and system design).
eCMR — Electronic consignment note under the CMR e-protocol (road), supporting paperless road transport where adopted.
Entry — Customs filing(s) required to clear an import shipment into a customs territory.
ENS (Entry Summary Declaration) — EU pre-arrival safety/security declaration feeding the EU risk analysis process (ICS2).
Exception — Notation of irregularities/damage/packing issues at receipt/loading; exceptions can affect liability and claims.
Expiry Date — Date after which an offer/credit/tariff is no longer valid unless extended.
Export Declaration — Customs export filing declaring goods leaving a territory (format and system differ by country).
Export License — Government authorization required for controlled exports (dual-use, strategic goods, sanctions regimes, etc.).
F
FCL (Full Container Load) — Shipment occupying a full container, typically under one shipper’s seal.
F.D.A. (US) — Food and Drug Administration (relevant for regulated imports/exports).
Feeder Service / Feeder Vessel — Short-sea service moving cargo between regional ports and a hub port.
FEU — Forty-foot Equivalent Unit (container capacity measure). 1 FEU = 2 TEU (nominally).
Force Majeure — Contract clause excusing performance due to extraordinary events beyond control, subject to strict drafting and notice requirements.
Foul (Claused) B/L — B/L noting damage/defects/packing issues at receipt; opposite of clean B/L.
Free Astray — Found shipment forwarded to correct destination without additional charges (policy dependent).
Free Time — Allowed time before demurrage/detention/storage charges accrue.
Freight Bill — Carrier invoice for transportation charges and related fees.
Freight Forwarder — Logistics intermediary arranging transport and related services. May act as agent or as principal(e.g., as NVOCC), which changes liability and documentation.
FuelEU Maritime — EU regulation applicable from 1 Jan 2025 targeting greenhouse-gas intensity of energy used by ships calling at EU/EEA ports (commercial impact via surcharges/compliance costs).
G
Gateway — Key interchange point where freight transfers between networks or modes (port, airport, rail ramp, border hub).
GRI (General Rate Increase) — Ocean carriers’ base rate increase applied across trades, typically with notice windows.
Groupage — Consolidation of smaller shipments into a combined transport unit (often LCL).
H
Harmonized System (HS) — Global goods nomenclature maintained by WCO. Base is 6-digit; countries extend for tariffs/statistics. Correct HS classification drives duties, controls, and compliance.
House-to-House — See Door-to-Door (often used in container shipping).
House-to-Pier — Shipper loads container at origin; cargo discharged at destination port/terminal.
I
ICC — International Chamber of Commerce (publisher of Incoterms® and trade finance rules such as UCP).
ICS2 (EU Import Control System 2) — EU safety/security framework requiring advance cargo data (via ENS) for risk analysis for goods entering/transiting the EU.
IMO (International Maritime Organization) — UN agency for maritime safety/security and environmental performance. Formerly IMCO (name changed in 1982).
IMDG Code — IMO code governing carriage of dangerous goods by sea.
Import — Bringing goods into a customs territory.
Import License — Government authorization required to import specific controlled goods.
In Bond — Cargo under customs control where duty/tax has not been paid.
Indemnity Bond — Agreement to hold a party harmless against specified liabilities (scope and enforceability vary).
Inherent Vice — Internal property of goods causing damage without external cause (commonly excluded from insurance).
Inspection Certificate — Third-party certificate attesting quality/quantity, often required under L/C.
Insurance (Average Clause) — Policy where coverage depends on loss percentage thresholds (varies by wording; ensure clarity).
Insurance — All Risks — Broad cargo cover (subject to exclusions).
Insurance — General Average — Coverage for general average contributions where included in policy.
Insurance — Particular Average — Coverage for partial loss on an individual shipment, often subject to deductible/threshold.
Intermodal — Movement using multiple transport modes with compatible units/equipment.
Irrevocable Letter of Credit — L/C that cannot be amended/cancelled without agreement of relevant parties (standard practice in modern trade).
ISBP — ICC guidance on document examination practice under L/Cs (used with UCP 600).
Issuing Bank — Bank that opens/Issues the L/C and undertakes to honor compliant presentations.
Issuing Carrier — Carrier issuing transport documents and/or publishing tariffs.
K
Known Loss — Loss discovered before or at delivery (claims handling differs from concealed loss).
L
Landbridge — Ocean + inland (rail/truck) move across a landmass as an alternative to all-water routing.
Landed Cost — Total delivered cost to buyer including product cost, freight, duties, taxes, fees, insurance, and handling.
Landing Certificate — Certificate issued by consular/official authorities for specific bond/export schemes (jurisdiction-specific).
LCL (Less than Container Load) — Cargo not filling a container; consolidated with other shipments at a CFS.
LTL (Less than Truckload) — Road freight not filling a truck; consolidated via hubs/terminals.
Letter of Credit (L/C) — Bank undertaking to pay beneficiary against compliant documents under stated terms. Common types include confirmed, transferable, revolving, standby, etc.
Letter of Indemnity (LOI) — Undertaking to indemnify a carrier/party for releasing cargo or issuing documents under specific conditions (high risk; control carefully).
Licenses — Export/import authorizations required for controlled goods; failure triggers fines, seizures, and delays.
Lien — Legal right to retain goods until a debt/charge is satisfied.
M
Marine Insurance — Insurance for cargo loss/damage in marine and often multimodal transit, subject to exclusions and claims conditions.
Mini Landbridge — Intermodal routing where containers move ocean + rail/truck to an inland destination, historically replacing all-water.
Minimum Charge — Lowest freight charge that can be billed for a shipment (even if calculation yields less).
Multimodal — Use of more than one mode under a single transport arrangement.
N
NVOCC (Non-Vessel Operating Common Carrier) — Ocean transport intermediary that buys carrier space and sells it, often issuing its own (house) B/L and assuming contractual carrier-type responsibilities (definitions/registration vary by jurisdiction).
O
Ocean Bill of Lading (Ocean B/L) — B/L covering ocean carriage between ports; can be negotiable or non-negotiable.
On Board — Notation confirming cargo loaded on vessel (often required under L/C).
On Deck — Notation indicating cargo stowed on deck (risk and insurance implications).
Open Insurance Policy — Annual/continuous cargo policy covering shipments within defined parameters.
Open Top Container — Container with removable roof/tarpaulin for top loading.
Order-Notify (O/N) — B/L structure requiring surrender of originals before cargo release; often tied to L/C processes.
Original B/L (OBL) — Original negotiable B/L set required for title transfer/cargo release where applicable.
Overheight Cargo — Cargo exceeding standard container height limits.
P
P&I Club (Protection & Indemnity) — Mutual marine liability insurance covering shipowners/operators for third-party risks (including cargo liabilities, pollution, collision, crew).
Perils of the Sea — Traditional marine risks (storms, grounding, collision, etc.) relevant to liability/insurance analysis.
Per Diem — Daily charge for use of equipment beyond free time (often used interchangeably with detention in some markets—define it contractually).
Pier-to-House — Container move from port/terminal to consignee premises.
Pier-to-Pier — Port of loading to port of discharge scope (local legs excluded unless stated).
Place of Delivery — Location where carrier’s custody ends and delivery occurs (as defined by contract/document).
Place of Receipt — Location where carrier’s custody begins (as defined by contract/document).
POD — May mean Port of Discharge, Port of Destination, or Proof of Delivery. Avoid ambiguity; write it out.
Point of Origin — Location where shipment is received from shipper into carrier’s custody.
POL — Port of Loading (also commonly Petroleum, Oil & Lubricants in other contexts).
Pomerene Act (US Federal Bill of Lading Act of 1916) — US law governing issuance and negotiation of bills of lading, including penalties for false issuance.
Port of Entry — Port where goods enter a country/territory for customs purposes.
Port of Exit — Port where goods depart a country/territory.
Prepaid (Ppd.) — Freight charges paid at origin by shipper before release of documents, per contract/tariff.
Pro Forma — “For the sake of form.” Used for preliminary documents and estimates.
Pro Forma Invoice — Preliminary invoice issued before shipment for approvals, financing, or import formalities.
Pro Rata — “In proportion.” Allocation method for costs/charges.
R
Reconsignment / Diversion — Change of consignee/destination while goods are in transit (fees and constraints apply).
Reefer — Refrigerated container (temperature-controlled).
Ro/Ro (Roll-On/Roll-Off) — Vessel service for wheeled cargo (vehicles, trailers) loaded via ramps.
Roll (Rollover) — Rebooking cargo to a later sailing due to capacity or operational reasons.
S
Schedule B (US) — US export classification code system for reporting exports (aligned to HS structure).
Sea Waybill — Non-negotiable sea transport document used when a document of title is not required; release is process-driven.
SED (US Shipper’s Export Declaration) — Legacy term. US export filing is now EEI (Electronic Export Information) filed via AES/ACE.
Shipper — Party tendering goods for shipment (often consignor/seller).
Shipper’s Load & Count (SL&C) — Notation indicating shipper loaded the container and carrier did not verify count/condition internally.
Sight Draft — Draft payable upon presentation.
Statute of Limitation — Legal time limit for claims/lawsuits; time bars in transport conventions can be shorter than general civil statutes.
STC (Said to Contain) — Notation indicating contents are as declared by shipper, not verified by carrier.
Supply Chain — End-to-end system covering sourcing, production, inventory, transport, and delivery; logistics is a core execution layer.
Surcharge — Additional charge beyond base rate (fuel, peak season, congestion, regulatory, security, etc.)—must be governed contractually.
T
Terminal Charge — Charge for services performed at terminals (handling, gate, storage-related activities).
TEU — Twenty-foot Equivalent Unit (container capacity measure).
TIR — International road transit system using TIR carnets to facilitate cross-border movement of sealed loads under customs control.
Transship — Transfer cargo from one vessel/line to another (or between modes) during the journey.
UCP (ICC) — ICC rules for documentary credits. Current standard: UCP 600.
eUCP — ICC supplement enabling electronic presentation under UCP (useful for paperless trade corridors).
UN/EDIFACT — UN standard for EDI messages used widely in international trade/logistics.
U
Uniform Customs and Practice for Documentary Credits (UCP) — See UCP (UCP 600 is current standard practice).
Without Recourse — Endorsement language limiting the endorser’s liability if an instrument is not paid (context-dependent).
W/M (Weight or Measurement) — Freight rating basis where charges are calculated on whichever yields higher revenue between weight and volume (common in LCL/breakbulk).
W
War Risk — Insurance cover for loss/damage arising from war-related perils, subject to specific clauses and exclusions.
Waybill (WB) — Transport document that is not a document of title; used for movement control and billing. (Air waybills and sea waybills are typically non-negotiable.)
Y
York-Antwerp Rules (YAR) — Standard rules governing General Average adjustments; widely referenced in marine contracts. Current reference commonly used: YAR 2016 (with a technical amendment in 2022).
Z
Zulu Time — UTC (Coordinated Universal Time), commonly used in aviation and global operations to avoid time zone ambiguity.
Key 2026 compliance add-ons
CBAM (EU Carbon Border Adjustment Mechanism) — EU regime applying to certain imports; definitive period starts 1 Jan 2026 (authorization, reporting and certificate surrender obligations apply by rule).
EU ETS (Maritime) — EU Emissions Trading System coverage for maritime with phased surrender obligations (commercial impact via pass-through charges).
ICS2 / ENS — EU safety/security pre-arrival data requirement framework.
