Glossary of Shipping Terms

C.I.F.Â
Cost, Insurance and Freight: Export term in which the price quoted by the exporter includes the costs of ocean transportation to the port of destination and insurance coverage.Â

CABOTAGEÂ
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.Â

CABOTAGEÂ
Where cargo is carried on what is essentially a domestic flight and therefore not subject to international agreements that fix set rates. Cabotage rates are negotiable between shipper and airline and apply on flights within a country and to its overseas territories.Â

CAF (CURRENCY ADJUSTMENT FACTOR)Â
A surcharge on freight charges by a carrier to offset foreign currency fluctuations.Â

CARGOÂ
Merchandise/commodities carried by means of transportation.Â

CARGO HANDLINGÂ
The act of loading and discharging a cargo ship.Â

CARGO INSURANCEÂ
Insurance to protect the financial interest of the cargo owner during transportation in case of a loss.Â

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

CARGO PREFERENCEÂ
Reserving a portion of a nation's imports and exports to national-flag vessels.Â

CARGO RECEIPTÂ
Receipt of cargo for shipment by a consolidator (used in ocean freight).Â

CARGO RETENTION CLAUSESÂ
Clauses introduced by charterers based on shortage of delivered cargo because of increased oil prices.Â

CARNETÂ
A customs document permitting the holder to carry or send merchandise temporarily into certain foreign countries without paying duties or posting bonds.Â

CARRIAGE OF GOODS BY SEA ACTÂ
A law enacted in 1936 covering the transportation of merchandise by sea to or from ports of the United States and in foreign trades.Â

CARRIERÂ
Any person who, through a contract of carriage, undertakes to perform or procure the performance of carriage by rail, road, sea, air, inland waterway, or by a combination of modes. (See also Common Carrier)Â

CARRIER CONTAINER/SHIPPER CONTAINERÂ
A container over which the carrier or the shipper has control either by ownership or by the acquisition thereof under lease or rental from container companies or container suppliers or from similar sources. Carriers are prohibited from purchasing, leasing, or renting a shipper-owned container.Â

CARRIERSÂ
Owners or operators of vessels providing transportation to shippers. The term is also used to refer to the vessels.Â

CARTELÂ
An association of several independent national or international business organizations that regulates competition by controlling the prices, the production, or the marketing of a product or industryÂ

CATWALKÂ
A raised bridge running fore and aft from the midship, and called "walkway." It affords safe passage over the pipelines and other deck obstructions.Â

CCFÂ
Capital Construction Fund: A tax benefit for operators of U.S.-built, U.S.-flag ships in the U.S. foreign, Great Lakes, or noncontiguous domestic trades, by which taxes may be deferred on income deposited in a fund to be used for the replacement of vessels.Â

CDSÂ
Construction Differential Subsidy: A direct subsidy paid to U.S. shipyards building U.S.-flag ships to offset high construction costs in American shipyards. An amount of subsidy (up to 50 percent) is determined by estimates of construction cost differentials between U.S. and foreign yards.Â

CERTIFICATE OF INSPECTIONÂ
A certificate usually required for industrial equipment and meat products. There are companies in every port city that specialize in issuing certificates of inspection for machinery. The Meat Inspection Division of the U.S. Department of Agriculture issues certificates of inspection for meat products that are recognized throughout the world.Â

CERTIFICATE OF MANUFACTUREÂ
A document used under a letter of credit containing an affidavit that goods have been manufactured and are being held for the account and risk of the buyer. In war times when transportation facilities are disrupted, it is common for letters of credit to be paid against presentation of a certificate of manufacture. This is rare in ordinary times, except in the case of specially manufactured goods.Â

CERTIFICATE OF ORIGINÂ
A document containing an affidavit to prove the origin of imported goods. It is used for customs or foreign exchange purposes or both. Certificates of origin are commonly certified by an official organization in the country of origin such as a consular office or a chamber of commerce.Â

CERTIFICATE OF REGISTRYÂ
A document specifying the nation registry of the vessel.Â

CFS (CONTAINER FREIGHT STATION)Â
The term CFS at loading port means the location designated by carriers for the receiving of cargo to be packed into containers by the carrier. At discharge ports, the term CFS means the bonded location designated by carriers in the port area for unpacking and delivery of cargo.Â

CFS CHARGE (CONTAINER FREIGHT CHARGE)Â
The charge assessed for services performed at the loading or discharging port in the packing or unpacking of cargo into/from containers at CFS.Â

CFS RECEIVING SERVICESÂ
The service performed at the loading port in receiving and packing cargo into containers from CFS to CY or shipside. "CFS Receiving Services" referred herein are restricted to the following: (1) Moving empty containers from CY to CFS (2) Drayage of loaded containers from CFS to CY and/or ship's tackle. (3) Tallying. (4) Issuing dock receipt/shipping order (5) Physical movement of cargo into, out of, and within CFS (6) Stuffing, sealing, and marking containers (7) Storage. (8) Ordinary sorting and stacking. (9) Preparing carrier's internal container load plan.Â

CFS/CFS (PIER TO PIER)Â
The term CFS/CFS means cargo delivered by breakbulk to carrier's container freight station (CFS) to be packed by carrier into containers and to be unpacked by carrier from the container at carrier's destination port CFS.Â

CFS/CY (PIER TO HOUSE)Â
The term CFS/CY means cargo delivered breakbulk to carrier's CFS to be packed by carrier into containers and accepted by consignee at carrier's CY and unpacked by the consignee off carrier's premises, all at consignee's risk and expense.Â

CHARTER AGREEMENT/CHARTER PARTYÂ
A lease or agreement to hire an airplane, vessel, or other means of conveyance to transport goods to one or more designated locations. Among other specifications, the contract usually stipulates the exact obligations of the vessel owner (loading the goods, carrying the goods to a certain point, returning to the charterer with other goods, etc.), or it provides for an outright leasing of the vessel to the charterer, who then is responsible for his own loading and delivery. In either case, the charter party sets forth the exact conditions and requirements agreed upon by both sides.Â

CHARTER PARTYÂ
A contractual agreement between a ship owner and a cargo owner, usually arranged by a broker, whereby a ship is chartered (hired) either for one voyage or a period of time.Â

CHARTER PARTY BILL OF LADINGÂ
A bill of lading issued under a charter party. It is not acceptable by banks under letters of credit unless so authorized in the credit.Â

CHARTER RATESÂ
The tariff applied for chartering tonnage in a particular trade.Â

CHARTERERÂ
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.Â

CHASSISÂ
(1) A wheel assemble including bogies constructed to accept mounting of containers. (2) A frame with wheels on which a container ridesÂ

CHEMICAL TANKERÂ
Specially designed for the transport of chemicals.Â

CHIEF ENGINEERÂ
Head of engineer department. Keeps records of all engine parts and repairs. Generally tends to the functioning of all mechanical equipment on ship. Calculates fuel and water consumption and requirements. Coordinates operations with shoreside port engineer.Â

CHIEF ENGINEERÂ
The senior engineer officer responsible for the satisfactory working and upkeep of the main and auxiliary machinery and boiler plant on board ship.Â

CHIEF MATEÂ
The officer in the deck department next in rank to the master; second in command of a ship. He is next to the master, most especially in the navigation and as far as the deck department is concerned. The chief mate assumes the position of the Master in his absence.Â

CHIEF STEWARDÂ
Orders food. Prepares menus. Assists chief cook in food preparation.Â

CIA (CASH IN ADVANCE)Â
A method of payment for goods whereby the buyer pays the seller before shipping the goods.Â

CLASS RATESÂ
A class of goods or commodities is a large grouping of various items under one general heading, and all items in the group make up a class. The freight rates that apply to all items in the class are called class rates.Â

CLASSIFICATIONÂ
A customs term for the placement of an item under the correct number in the customs tariff for duty purposes. At times, this procedure becomes highly complicated; it is not uncommon for importers to resort to litigation over the correct duty to be assessed by customs on a given item.Â

CLASSIFICATION SOCIETYÂ
Worldwide experienced and reputable societies which undertake to arrange inspections and advise on the hull and machinery of a ship. A private organization that supervises vessels during their construction and afterward, in respect to their seaworthiness, and the placing of vessels in grades or "classes" according to the society's rules for each particular type. It is not compulsory by law that a shipowner have his vessel built according to the rules of any classification society; but in practice, the difficulty in securing satisfactory insurance rates for an unclassed vessel makes it a commercial obligation.Â

CLEAN DRAFTÂ
A draft to which no documents have been attached.Â

CLEAN SHIPÂ
Refers to tankers which have their cargo tanks free of traces of dark persistent oils which remain after carrying crudes and heavy fuel oils.Â

CNS (CARGO NETWORK SERVICES)Â
An agency to which IATA forwarders pay their freight bills.Â

COAÂ
Contract of affreightmentÂ

COASTWISEÂ
Domestic shipping routes along a single coast.Â

CODE OF LINER CONDUCT (UNCTAD)Â
A convention drafted under the auspices of the United Nations Conference on Trade and Development which provides that all shipping traffic between two foreign countries is to be regulated as far as the quantities of shipments are concerned on the following percentages - 40% for owners of the country of origin, 40% for owners of country of destination, and 20% for owners of the country which is neither the origin nor the destinationÂ

COFCÂ
(container on flat car); a type of rail freight service involving the shipment of containers without chassisÂ

COGSAÂ
Carriage of Goods by SeaÂ

COLLECTIVE PAPERÂ
All documents (commercial invoices, bills of lading, etc.) submitted to a buyer for the purpose of receiving payment for a shipment.Â

COLLIERÂ
Vessel used for transporting coal.Â

COLLISION AVOIDANCE SYSTEMÂ
Electronic system commonly used to prevent collisions in inland navigable waterways.Â

COLREGÂ
Convention on International Regulations for Preventing Collisions at SeaÂ

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

COMBINATION VESSELSÂ
A type of ship that accommodates both container and breakbulk cargo. It can be either self-sustaining or non-self sustaining. Also known as a Container/Breakbulk Vessel.Â

COMBINED SHIPSÂ
Ships that can carry both liquid and dry bulk cargoes.Â

COMMERCIAL INVOICEÂ
An itemized list of goods shipped that is usually included among an exporter's collection papers.Â

COMMISSIONÂ
See "Brokerage."Â

COMMODITY SPECIALISTÂ
An official authorized by the U.S. Treasury to determine the proper tariff and value of imported goods.Â

COMMON CARRIERÂ
(1) A publicly or privately owned firm or corporation that transports the goods of others over land, sea, or through the air, for a stated freight rate. By government regulation, a common carrier is required to carry all goods offered if accommodations are available and the established rate is paid. (2) A transportation company engaged in the business of handling persons or goods for compensation and for all persons impartiallyÂ

COMMON CARRIERÂ
Holds himself out for hire to the public. Must post rates and cannot discriminate against customers whose cargo he is equipped to carry.Â

COMMON EXTERNAL TARIFF (CET OR CXT)Â
A uniform tariff adopted by a customs union or common market on imports from countries outside the union. It is often a required part of the entry process.Â

COMPLEMENTÂ
The number of officers and crew employed upon a vessel for its safe navigation and operation.Â

CONFERENCEÂ
A group of vessel operators joined together for establishing freight rates.Â

CONFERENCEÂ
An affiliation of shipowners operating over the same route(s) who agree to charge uniform rates and other terms of carriage. A conference is "closed" if one can enter only by the consent of existing members of the conference. It is "open" if anyone can enter by meeting certain technical and financial standards. Conference members are common carriers.Â

CONFIRMED LETTER OF CREDITÂ
(See Letter of Credit, Confirmed)Â

CONFISCATIONÂ
The taking and holding of private property by a government or an agency acting for a government. Compensation may or may not be given to the owner of the property.Â

CONGESTIONSÂ
Port/berth delaysÂ

CONNECTING CARRIERÂ
A carrier that has a direct physical connection with another or forming a connecting link between two or more carriersÂ

CONSIGNEEÂ
(1) The receiver of freight shipped by the shipper (consignor) (2) -The individual or company to whom a seller or shipper sends merchandise and who, upon presentation of necessary documents, is recognized as the merchandise owner for the purpose of declaring and paying customs duties.Â

CONSIGNEEÂ
The person to whom cargo is consigned as stated on the bills of lading.Â

CONSIGNEE MARKÂ
A symbol placed on packages for identification purposes generally consisting of a triangle, square, circle, diamond, or cross, with letters or numbers as well as the port of discharge.Â

CONSIGNMENTÂ
The physical transfer of goods from a seller (consignor) with whom the title remains until the goods are sold, to another legal entity (consignee) that acts as a selling agent. Only if there is a subsequent sale does the seller receive any payment.Â

CONSIGNORÂ
(1) The person by whom freight is shipped; shipper (2) A term used to describe any person who consigns goods to himself or to another party in a bill of lading or equivalent document. A consignor might be the owner of the goods, or a freight forwarder who consigns goods on behalf of his principal.Â

CONSIGNORÂ
The person named in the bill of lading as the one from whom the goods have been received for shipment.Â

CONSOLIDATED SHIPMENTÂ
An arrangement whereby various shippers pool their boxed goods on the same shipment, sharing the total weight charge for the shipment.Â

CONSOLIDATORÂ
An agent who brings together a number of shipments for one destination to qualify for preferential ratesÂ

CONSORTIUMÂ
The name for an agreement under which several nations or nationals (usually corporations) of more than one nation join together for a common purpose (e.g., a shipping consortium).Â

CONSTRUCTION UNITÂ
Equipped to assist during offshore construction and maintenance work.Â

CONSULÂ
A government official residing in a foreign country charged with representing the interests of his or her country and its nationals.Â

CONSULAR DOCUMENTSÂ
Special forms signed by the consul of a country to which cargo is destined.Â

CONSULAR INVOICEÂ
A document required by some countries describing a shipment of goods and showing information such as the consignor, consignee, and value of the shipment. Certified by a consular official, the countryÃ†s customs officials to verify the value, quantity, and nature of the shipment use a consular invoice.Â

CONTAINERÂ
(1)An open or enclosed structural unit designed for intermodal transport of commodities; many have standard corner fittings to secure them to highway chassis, rail cars, or ocean vessels, facilitating interchange among carriers in international trade (2) A single, rigid, sealed, reusable metal "box" in which merchandise is shipped by vessel, truck, or rail. Container types include standard, high cube, hardtop, open top, flat, platform, ventilated, insulated, refrigerated, or bulk. Containers (except for flat-rack vehicle rack and portable liquid tank types) have a closure or permanently hinged door that allows ready access to cargo. All containers have constructions, fittings, and fastenings able to withstand, without permanent distortion, all stresses that may be applied in normal service use of continuous transportation. Containers must bear the manufacturer's specifications.Â

CONTAINER (OCEAN)Â
(1) Designed to be moved inland on its own chassis, an ocean container can be loaded at the shipper's plant for shipment overseas. The average outside dimensions are generally 20, 35, and 40 feet in length, 8 feet wide, and 8 feet high. (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 large rectangular or square container/box of a strong structure that can withstand continuous rough handling from ship to shore and back. It opens from one side to allow cargo to be stacked and stowed into it.Â

CONTAINER SHIPÂ
A ship constructed in such a way that she 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.Â

CONTAINERIZATIONÂ
A concept for the ultimate unitizing of cargo used by both steamship lines and air cargo lines. Containers allow a greater amount of cargo protection from weather, damage, and theft.Â

CONTINUOUS BONDÂ
An annual customs bond insuring compliance with all regulations and requirements.Â

CONTRACT OF AFFREIGHTMENT (COA)Â
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.Â

CONTRACT RATEÂ
This can refer to "service contract" rates which are low, favorable rates fixed over an extended period of time in exchange for which the carrier receives a volume commitment from the shipper.Â

COOK AND BAKER (CHIEF COOK)Â
Cooks and bakes.Â

COUNTERTRADEÂ
A reciprocal trading arrangement in which the seller is required to accept goods or other instruments or trade in partial or whole payment for its products. Common transactions include barter, buyback, counterpurchase, offset requirements, swap, switch; or triangular trade, evidence, or clearing accounts.Â

COUNTERVAILING DUTIESÂ
Special duties imposed on imports to offset the benefits of subsidies to producers or exporters of the exporting country.Â

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

CUSTOMS BROKERÂ
An individual or service company that transacts customhouse formalities on behalf of an importer. In the U.S.A., a customs broker must be licensed by the Treasury Department and pass a government examination covering a broad range of knowledge, including all phases of import regulations, rates of duties, and customs law. Licensing and requirements vary from country to country, so check with your local United Shipping Partner for details.Â

CUSTOMS COURTÂ
The court to which importers must appeal or protest decisions made by customs officers.Â

CUSTOMS UNIONÂ
An agreement between two or more countries in which they arrange to abolish tariffs and other import restrictions on each other's goods and establish a common tariff for the imports of all other countries.Â

CUT-OFF TIMEÂ
The time a vehicle must be tendered at the terminal to meet a scheduled train departureÂ

CWO (CASH WITH ORDER)Â
A method of payment for goods where cash is paid at the time of order and the transaction becomes binding on both buyer and seller.

Glossary of Shipping Terms

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Glossary of Shipping Terms