Skip to content

Freight Terminology PDF Print E-mail

 

SPECIALIZED AIR & OCEAN FREIGHT TERMINOLOGY
Term Explanation
Air Freight Rate
AWB Air Waybill
BAF Bunker 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
Bond Above 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 Bulk Non containerised shipping of goods; goods are loaded on conventional ships or Ro/Ro ships.
CAD Cash against delivery = clause stipulating that the agreed payment is to be made after certain documents (generally bill of lading) are handed over.
CAF Currency 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.
CFS Container freight station = container loading and unloading point for LCL shipments.
C.O.D Cash on Delivery
Congestion Surcharge Surcharge 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)
CY Container 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/LCL One 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 Payment In 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
IMDG International code issues by the IMO governing the maritime shipping of dangerous goods; generally in conformance with the German GGVS regulations.
IMO International 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/LCL Less 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)
MAWB Master 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 in all 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 Code Every 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.