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Freight Terminology

SPECIALIZED AIR & OCEAN FREIGHT TERMINOLOGY

Term Explanation

Air Freight Rate

AWB Air Waybill

BAFBunker adjustment factor = surcharge/discount on the ocean freight rate to offset

oil price

either fixed sum per TEU or in percent.

Barge Standardised large floating container.

B/L Bill of Lading

BondAbove all in the USA region single entry bonds and continuous bonds are a form

of security or guarantee that customs duty is paid in the USA

Break BulkNon containerised shipping of goods goods are loaded on conventional ships or

Ro/Ro ships.

CADCash against delivery = c lause stipulating that the agreed payment is to be made

after certain documents (generally bill of lading) are handed over.

CAFCurrency adjustment factor used to calculate a surcharge or discount on the ocean

freight rate.

Cargo Aircraft only (CAO) Indicates hazardous goods that may only be loaded on cargo planes.

CFSContainer freight station = container loading and unloading point for LCL

shipments.

C.O.D Cash on Delivery

Congestion SurchargeSurcharge on ocean freight rate for mooring fees in the port if it is congested

generally fixed amount per TEU or W/M

CSC Container Service Charge (also see THC)

CYContainer Yard = delivery or reception point for full on FCL containers or empty

containers.

Demurrage Mooring fee if agreed loading or unloading time is exceeded.

Detention Charge for the late return of containers.

DGR Dangerous goods regulations = govern the air transport of dangerous goods.

ETA Estimated time of arrval.

ETD/ETD Estimates time of sailing / Estimated time of departure.

FCL/FCL Full container load = container from the sender to the recipient.

FCL/LCLOne sender but more than one recipient per container the container is unloaded at

the CFS in the destination port / place of departure.

Feeder Service Feeder service between secondary ports or smaller ports and main ports.

Compulsory PaymentIn certain regions, the maritime shipper or air freight carrier only agrees to

transport the goods following payment at the port of departure.

Freight Prepaid Sender or supplier pays for the freight transport in advance.

Freight Collect Sender or supplier pays for freight transport when he receives the goods.

Fuel Surcharge Fuel surcharge levied buy the airline/carrier per kg.

Full Set Full set of original B/L, generally 3/3

G/A General average = accident of a ship at sea.

Gross Weight Weight of goods including packaging.

HAWB House Air Waybill for the individual consignment on a colsilidated shipment.

IATA International Air Transport Association

I.C.C Institute Cargo Clauses = general insurance terms for good transport.

IFP See BAF

IMDGInternational code issues by the IMO governing the maritime shipping of dangerous

goods generally in conformance with the German GGVS regulations.

ht Terminology http://www.sbinfo.co.nz/resources/freight -ter

09/02/2011

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7/30/2019 Freight Terminology

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IMOInternational Maritime Organisation = an advisory international maritime shipping

organisation whose mission is to improve shipping safety.

In Bound Duty-unpaid goods under customs bond.

L/C Letter of credit

LCL/FCL

More than one sender but one recipient per container - the container is loaded at

the CFS in the country or port of departure and shipped right through to the

recipient.

LCL/LCLLess than container load = general cargo consignments shipped by (consolidated)

container transport from CFS to CFS

Lower Deck Loading on the lower deck (passenger + freight aircraft)

Main Deck Loading on the main deck (generally freight aircraft)

MAWBMaster air waybill = waybill fro the individual consolidated shipment or direct

consignment.

M/M Minimum Freight

NVOCC

Non vessel operating common carrier = transport company / carrier who

undertakes to transport goods by sea without owning his own ships frequency

found in the LCL/LCL segment NVOCC bills of lading are fully bankable.

Payload Weight of goods loaded in to a container.

PAX Indicates hazzardous goods thast may also be loaded on to passenger planes.

Sea way-bill/Express B/L

Sea waybill for which no originals are created not negotiable like the B/L - allows

rapid and problem free delivery of goods in the destination port cannot be used inall regions is not used in the case of letter of credit.

Security Surcharge Security surchage levied by the airline per kg

SMA Security maniufest amendment fee

SMD Security manifest documentation fee

Stripping Unloading of (consolidated) containers

Stuffing Loading of a container

TEU Twenty Foot Equivalent unit, 20' ISO Unit

TACT The Air Cargo Tariff

THC Terminal Handling Charges

Three Letter CodeEvery airport has one comprising of three letters e.g.: CHC = Christchurch, AKL =

Auckland

ULD Unit Load Device (e.g. container, pallet etc.)

VAT Value Added Tax

Volume

Dimensional weight in the airfreight sector based on a ration of 6:1 calculation L

cm x W cm x H cm / 6000 = dimensional weight to be compared to the actual

weight of the shipment. The higher wiehgt is used as a basis for calculating freight

fees.

ht Terminology http://www.sbinfo.co.nz/resources/freight -ter

09/02/2011

http://www.sbinfo.co.nz/resources/freight%EF%BF%BDrminology