Glossary

Act of God

Marine Insurance term meaning an act beyond man's control, e.g., lightning, flood, earthquake, etc. The carrier is not legally responsible under most circumstances for such damage.

Ad Valorem

According to value. Rates are based on value of goods.

Advising Bank

The Bank which advises the seller that a Letter of Credit has been opened in his favor by the buyer; however, the advising bank does not necessarily guarantee payment.

AI

All Inclusive Rates.

AMS (Automated Manifest System)

Electronic computer link with U.S. Customs that allows for faster processing and clearance of cargo.

Arbitrary

A stated amount over a fixed rate to one point to make a rate to another point.

Arrival Notice

Notice sent by the carrier informing the consignee, notify party, and also notify party of the arrival date of the cargo. Other pertinent information for shipment may be included, such as bill of lading number, weight, charges due and location of cargo.

Awkward Cargo

Cargo of irregular size that is either containerized or un-containerized. It requires prior approval, depending on the circumstances, before confirmation of booking.

BAF (Bunker Adjustment Factor) or BSC (Bunker Surcharge)

Surcharge assessed by carrier to freight rates to supplement increased fuel costs.

Bank Guarantee

Document accepted in lieu of original bill of lading to release cargo. Protected in writing to carrier for performing a deviation from normal business, guaranteed by a bank.

Break Bulk

A term used to describe cargo which does not constitute a full container, or which is palletized, boxed, etc., or large machinery, trucks, etc. Also used to describe cargo, which cannot be containerized due to its size and/or nature.

B/L (Bill of Lading)

A receipt for the cargo and a contract for transportation between a shipper and the ocean carrier. It may also be used as an instrument of ownership, which can be bought, sold or traded while the goods are in transit. To be used in this manner, it must be a negotiable "Order Bill of Lading."

Booking

The arrangement of space of cargo in a container (CFS or CY), or as a break bulk or bulk. One would call an international carrier and reserve space for the cargo.

Bonded Warehouse

A warehouse, section of a warehouse, or secured area designated by U.S. Customs as a bonded warehouse. It is a temporary storage area (limited for five years) for goods until duties are paid or otherwise properly released and the cleared from Customs.

Box

Slang term for an ocean container for cargo.

Brokerage

Fee paid to freight forwarder by the carrier for services performed.

Bulk Freight

Not in packages or containers, shipped loose in the hold of the ship. Grain, coal and sulfur are usually bulk freight.

Clean B/L

is issued when the shipment is received in good order. If damage or a shortage is noted, a clean bill of lading will not be issued.