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SHIPPING TERMS

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C

CAA
See Competent Authority Approval

CAD
See Cash Against Documents

CAF
See Currency Adjustment Factor

CENSA
Council of European and Japanese National Shipowner's Associations.

Cabotage
Transport of goods between two ports or places located in the same country.
Transport of cargo in a country other than the country where the vehicle is registered road-cargo).
The carriage of a container from a surplus area to an area specified by the Owner of that container, in exchange of which and during which the operator can use this container.

Call
The visit of a vessel to a port.

Call Sign
A code published by the International Telecommunication Union in its annual List of Ships' Stations to be used for the information interchange between vessels, port authorities and other relevant participants in international trade.
Note: The code structure is based on a three digit designation series assigned by the ITU and a one digit assigned by the country of registration. (PDHP =P&O Nedlloyd Rotterdam)

Camber
Slightly arched form of container-floors to strengthen the construction.

Capacity
The ability, in a given time, of a resource measured in quality and quantity.
The quantity of goods which can be stored in or loaded into a warehouse, store and/or loaded into a means of transport at a particular time.

Capacity Control
Process of registering and steering of capacity.

Capstan
Mechanical device with drum having a vertical spindle used to tighten or slacken mooring ropes or to haul an anchor.

Cargo
Goods transported or to be transported, all goods carried on a ship covered by a B/L.
Any goods, wares, merchandise, and articles of every kind whatsoever carried on a ship, other than mail, ship's stores, ship's spare parts, ship's equipment, stowage material, crew's effects and passengers' accompanied baggage (IMO).
Any property carried on an aircraft, other than mail, stores and accompanied or mishandled baggage Also referred to as 'goods' (ICAO).


Cargo Assembly
The separate reception of parcels or packages and the holding of them for later despatch as one consignment (air cargo).

Cargo Disassembly
The separation of one or more of the component parts of a consignment (from other parts of such consignment) for any purpose other than that of presenting such part or parts to customs authorities at the specific request of such authorities (air cargo).

Cargo Handling
All procedures necessary to enable the physical handling of goods.

Cargo Restriction Code
A code indicating that the use of a certain container is restricted to particular cargo.

Cargo Tracer
A document sent by the agent to all relevant parties, stating that certain cargo is either missing or over-landed.

Cargo Unit
A vehicle, container, pallet, flat, portable tank or any other entity or any part thereof which belongs to the ship but is not permanently attached to that ship.

Carriage
The process of transporting (conveying) cargo, from one point to another.

Carriage Paid To (...named place of destination)
Abbreviation: CPT
See Inco Terms

Carriage and Insurance Paid To (...named place of destination)
Abbreviation: CIP
See Inco Terms

Carrier
The party undertaking transport of goods from one point to another.

Carrier Haulage
The inland transport service, which is performed by the sea-carrier under the terms and conditions of the tariff and of the relevant transport document.

Carriers Bill of Lading Ports
Terminal, Pre-terminal port or Post-terminal Port as per tariff, indicated on the Bill of Lading and which is not the port physically called at by Carriers' ocean vessels.
Note: Under normal circumstances in the B/L only ports should be mentioned which are actually called at.


Carriers' Lien
When the shipper ships goods 'collect', the carrier has a possessory claim on these goods, which means that the carrier can retain possession of the goods as security for the charges due.

Carrying Temperature
Required cargo temperature during transport and storage.
See also: Setting/Air Delivery Temperature

Cartage
See Haulage

Cash Against Documents
Abbreviation: CAD
Terms of payment: if the buyer of goods pays for the goods against transfer of the documents, entitling him to obtain delivery of the goods from the carrier.

Cash On Delivery
Abbreviation: COD
Terms of payment: if the carrier collects a payment from the consignee and remits the amount to the shipper (air cargo).

Caveat Emptor
Let the buyer beware, purchaser must ascertain the condition of the goods to be purchased prior to the purchase.

Cavitation
The formation of partial vacuum bubbles on submerged surfaces caused by low pressure arising from a hydrodynamic flow as a result of mechanical force, usually associated with the use of propellers. The collapse of the bubbles causes surface damage and pits.

Cell
Location on board of a container vessel where one container can be stowed.

Cell Position
The location of a cell on board of a container vessel identified by a code for successively the bay, the row and the tier, indicating the position of a container on that vessel.

Cell-guide
Steel bars and rails used to steer containers during loading and discharging whilst sliding in the ship.

Cellular Vessel
A vessel, specially designed and equipped for the carriage of containers.

Central Warehouse
A warehouse which performs central functions for a number of warehouses.

Centre of Gravity
Point at which the entire weight of a body may be considered as concentrated so that if supported at this point the body would remain in equilibrium in any position.

Certificate
A document by which a fact is formally or officially attested and in which special requirements and conditions can be stated.

Certificate of Analysis
A document, often required by an importer or governmental authorities, attesting to the quality or purity of commodities. The origin of the certification may be a chemist or any other authorised body such as an inspection firm retained by the exporter or importer. In some cases the document may be drawn up by the manufacturer certifying that the merchandise shipped has been tested in his facility and found conform to the specifications.

Certificate of Classification
A certificate, issued by the classification society and stating the class under which a vessel is registered.

Certificate of Delivery
A certificate, indicating the condition of a vessel upon delivery for a charter including ballast, available bunkers and fresh water.

Certificate of Free Sale
A certificate, required by some countries as evidence that the goods are normally sold on the open market and approved by the regulatory authorities in the country of origin.

Certificate of Origin
A certificate, showing the country of original production of goods. Frequently used by customs in ascertaining duties under preferential tariff programmes or in connection with regulating imports from specific sources.

Certificate of Redelivery
A certificate, indicating the condition of a vessel upon redelivery from a charter including ballast, available bunkers and fresh water.

Certification Authority (Key Management)
The certification authority is the central party of a key management system. It provides certificates to the users so that ¿trust¿ can be established between different users based on the ¿trust¿ between the Registration Authority and users. These certificates are furthermore made available in one or more directories which can be accessed by all users.

Chain Conveyor
A conveyor consisting of two or more strands of chain running in parallel tracks with the loads carried directly on the chains.

Chain-Locker
Compartment at the forward part of the ship designed for the storage of the anchor chain.

Charge
An amount to be paid for carriage of goods based on the applicable rate of such carriage, or an amount to be paid for a special or incidental service in connection with the carriage of goods.

Charge Type
A separate, identifiable element of charges to be used in the pricing/rating of common services rendered to customers.

Charter Contract
See Charter Party

Charter Party
A contract in which the shipowner agrees to place his vessel or a part of it at the disposal of a third party, the charterer, for the carriage of goods for which he receives a freight per ton cargo, or to let his vessel for a definite period or trip for which a hire is paid.
synonym: Charter Contract.


Charterer
The legal person who has signed a charter party with the owner of a vessel or an aircraft and thus hires or leases a vessel or an aircraft or a part of the capacity thereof.

Chassis
A wheeled carriage onto which an ocean container is mounted for inland conveyance
The part of a motor vehicle that includes the engine, the frame, suspension system, wheels, steering mechanism etc., but not the body.


Claim
A charge made against a carrier for loss, damage or delay.

Classification
Arrangement according to a systematic division of a number of objects into groups, based on some likeness or some common traits.

Classification Society
An Organisation, whose main function is to carry out surveys of vessels, its purpose being to set and maintain standards of construction and upkeep for vessels, their engines and their safety equipment. A classification society also inspects and approves the construction of P&O Nedlloyd containers.

Clean Bill of Lading
A Bill of Lading which does not contain any qualification about the apparent order and condition of the goods to be transported (it bears no stamped clauses on the front of the B/L). It bears no superimposed clauses expressly declaring a defective condition of the goods or packaging (resolution of the ICS 1951).

Clean on Board
When goods are loaded on board and the document issued in respect to these goods is clean.
Note: Through the usage of the UCP 500 rules the term has now become superfluous.

Clearance Terminal
Terminal where Customs facilities for the clearance of goods are available.

Cleared Without Examination
Abbreviation: CWE
Cleared by customs without inspection.

Client
A party with which a company has a commercial relationship concerning the transport of e.g. cargo or concerning certain services of the company concerned, either directly or through an agent.

Clip on Unit
Abbreviation: COU
Detachable aggregate for a temperature controlled container (Conair).

Closed Ventilated Container
A container of a closed type, similar to a general purpose container, but specially designed for carriage of cargo where ventilation, either natural or mechanical (forced), is necessary.

Co-loading
The loading, on the way, of cargo from another shipper, having the same final destination as the cargo loaded earlier.

Co-makership
The long-term relationship between e.g. a supplier or a carrier and a customer, on the basis of mutual confidence.

Co-shippership
See Co-makership

Coaming
Structure around the hatch or door opening of a ship intended to provide seating for the cover, to stiffen the deck or plates and to prevent the ingress of water.

Coaster
A relative small ship plying between coastal ports.

Code
A character string that represents a member set of values.

Code List
The complete set of code values for a data item.

Cofferdam
An empty space on board of a vessel between two bulkheads or two decks separating oil tanks from each other and/or the engine room or other compartments.

Collapsible Container
Container which can be easily folded, disassembled and reassembled.

Combination Charge
An amount which is obtained by combining two or more charges.

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Combination Chassis
A chassis which can carry either one forty foot or thirty foot container or a combination of shorter containers e.g. 2 x 20 foot.

Combined Transport
Intermodal transport where the major part of the journey is by one mode such as rail, inland waterway or sea and any initial and/or final leg carried out by another mode such as road.

Combined Transport Bill of Lading
See Bill of Lading R302

Combined Transport Document
Abbreviation: CTD
Negotiable or non-negotiable document evidencing a contract for the performance and/or procurement of performance of combined transport of goods.
Thus a combined transport document is a document issued by a Carrier who contracts as a principal with the Merchant to effect a combined transport often on a door-to-door basis.


Combined Transport Operator
Abbreviation: CTO
A party who undertakes to carry goods with different modes of transport.

Commercial Invoice
A document showing commercial values of the transaction between the buyer and seller.

Commodity
Indication of the type of goods. Commodities are coded according to the harmonised system.

Commodity Box Rate
A rate classified by commodity and quoted per container.

Commodity Code
Code used in the Harmonised System for the classification of goods, which are most commonly produced and traded.

Commodity Item Number
Specific description number required in air transport to indicate that a specific freight rate applies.

Common Access Reference
A key to relate all subsequent transfers of data to the same business case or file.

Compagneurs Nationales des Conteneurs
Abbreviation: CNC affiliate of the French National Railways for Container traffic.

Compass
Instrument used for showing the direction of north and the relative heading of the ship compared with this direction.

Competent Authority Approval

Abbreviation: CAA
A competent authority means any national regulatory body or authority designated or otherwise recognised as such for any purpose in connection with IMO code.

Component
A uniquely identifiable product that is considered indivisible for a particular planning or control purpose, and/or which cannot be decomposed without destroying it.
Note: A component for one organisational group may be the final assembly of another group (e.g. electric motor).


Compradore
A local advisor or agent employed by a foreign party or company who acts as an intermediary in transactions with local inhabitants.

Computer Virus
A program that can infect other programs by modifying them to include a possibly evolved copy of itself.

Conair Container
Thermal container served by an external cooling system (e.g. a vessel's cooling system or a Clip On Unit), which regulates the temperature of the cargo.
Note: Conair is a brand name.


Conditions
Anything called for as requirements before the performance or completion of something else.
Contractual stipulations which are printed on a document or provided separately.


Conditions of Carriage
The general terms and conditions established by a carrier in respect of the carriage (air cargo).

Conditions of Contract
Terms and conditions shown on the Air Waybill (air cargo).

Cones
Devices for facilitating the loading, positioning and lashing of containers. The cones insert into the bottom castings of the container.

Conference
See Liner conference

Congestion
Accumulation of vessels at a port to the extent that vessels arriving to load or discharge are obliged to wait for a vacant berth.

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Connecting Carrier
A carrier to whose services the cargo is to be transferred for onward connecting transport (air cargo).

Connecting Road Haulage
See Drayage

Consensus
General agreement, characterised by the absence of sustained opposition to substantial issues by any important part of concerned interests and by a process that involves seeking to take into account the views of all parties concerned and to reconcile any conflicting arguments. Consensus needs not to imply unanimity.

Consignee
The party such as mentioned in the transport document by whom the goods, cargo or containers are to be received.

Consignment
A separate identifiable number of goods (available to be) transported from one consignor to one consignee via one or more than one modes of transport and specified in one single transport document.

Consignment Instructions
Instructions from either the seller/consignor or the buyer/consignee to a freight forwarder, carrier or his agent, or other provider of a service, enabling the movement of goods and associated activities. The following functions can be covered:
Movement and handling of goods (shipping, forwarding and stowage).
Customs formalities.
Distribution of documents.
Allocation of documents (freight and charges for the connected operations).
Special instructions (insurance, dangerous goods, goods release, additional documents required).


Consignment Note
A document prepared by the shipper and comprising a transport contract. It contains details of the consignment to be carried to the port of loading and it is signed by the inland carrier as proof of receipt.

Consignment Stock
The stock of goods with an external party (customer) which is still the property of the supplier. Payment for these goods is made to the supplier at the moment when they are sold (used) by this party.

Consignor
See Shipper

Consolidate
To group and stuff several shipments together in one container.

Consolidated Container
Container stuffed with several shipments (consignments) from different shippers for delivery to one or more consignees.

Consolidation
The grouping together of smaller consignments of goods into a large consignment for carriage as a larger unit in order to obtain a reduced rate.

Consolidation Point
Location where consolidation of consignments takes place.

Consolidator
A firm or company which consolidates cargo.

Consortium
Consortium is a form of co-operation between two or more carriers to operate in a particular trade.

Consular Invoice
An invoice covering shipment of goods certified by a consular official of the destination country, and used normally by customs or officials concerned with foreign exchange availability to ascertain the correctness of commercial invoice values.

Container
An item of equipment as defined by the International Organisation for Standardisation (ISO) for transport purposes. It must be of:
a permanent character and accordingly strong enough to be suitable for repeated use.
specially designed to facilitate the carriage of goods, by one or more modes of transport without intermediate reloading.
fitted with devices permitting its ready handling, particularly from one mode of transport to another.
so designed as to be easy to fill and empty.
having an internal volume of 1 m3 or more.
The term container includes neither vehicles nor conventional packing.

Container Bolster
A container floor without sides or end walls which does not have the ISO corner fittings and is generally used for Ro/Ro operations.
Note: A bolster cannot be handled either full or empty by a container spreader without special gear.


Container Chassis
A vehicle specially built for the purpose of transporting a container so that, when container and chassis are assembled, the produced unit serves as a road trailer.

Container Check Digit
The 7th digit of the serial number of a container used to check whether prefix and serial number are correct.

Container Depot
Storage area for empty containers.

Container Freight Station
Abbreviation: CFS
A facility at which (export) LCL cargo is received from merchants for loading (stuffing) into containers or at which (import) LCL cargo is unloaded (stripped) from containers and delivered to merchants.

Container Lease
The contract by which the owner of containers (lessor) gives the use of containers to a lessee for a specified period of time and for fixed payments.

Container Load Plan (CLP)
A list of items loaded in a specific container and where appropriate their sequence of loading.

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Container Logistics
The controlling and positioning of containers and other equipment.

Container Manifest

The document specifying the contents of particular freight containers or other transport units, prepared by the party responsible for their loading into the container or unit.

Container Moves
The number of actions performed by one container crane during a certain period.

Container Number
Identification number of a container consisting of prefix and serial number and check digit. (e.g. KNLU 123456-7)
See also: Container Serial Number and Container Prefix

Container Owner
A party who has a container at his disposal and who is entitled to lease or sell the container.

Container Platform
A container floor without sides or end walls, which can be loaded by spreader directly and is generally, used for Lo-Lo operations.

Container Pool
A certain stock of containers which is jointly used by several container carriers and/or leasing companies.

Container Prefix
A four letter code that forms the first part of a container identification number indicating the owner of a container.

Container Safety Convention
Abbreviation: CSC
International convention for safe containers.

Container Serial Number
A seven digit serial number (6 plus 1 Check Digit) that forms the second part of a container identification number.

Container Service Charges
Charges to be paid by cargo interests as per tariff.

Container Size Code
An indication of 2 digits of the nominal length and nominal height.
See also: Size/Type ISO6346

Container Size/Type
Description of the size and type of a freight container or similar unit load device as specified in ISO6346.

Container Stack
Two or more containers, one placed above the other, forming a vertical column.
See also: Stack

Container Sublease
Contract by which a carrier gives the use of containers to another carrier for a specified period of time and for fixed payments.

Container Terminal
Place where loaded and/or empty containers are loaded or discharged into or from a means of transport.

Container Type Code
Two digits, the first of which indicates the category and the second of which indicates certain physical characteristics or other attributes.
See also: Container Size/Type ISO6346

Container Yard
Abbreviation: CY
A facility at which FCL traffic and empty containers are received from or delivered to the Merchant by or on behalf of the Carrier.
Note: Often this yard is used to receive goods on behalf of the merchant and pack these in containers for FCL traffic.


Containerised
Indication that goods have been stowed in a container.

Contraband
Goods forbidden by national law to be imported or exported.

Contract
An agreement enforceable by law between two or more parties stipulating their rights and obligations which are required by one or both parties to acts or forbearance by the other or both.

Contract Logistics
The contracting out of all the warehousing, transport and distribution activities or a part thereof by manufacturing companies.

Contract of Affreightment
An agreement whereby the shipowner agrees to carry goods by water, or furnishes a vessel for the purpose of carrying goods by water, in return for a sum of money called freight. There are two forms: the charter party and the contract contained in the Bill of Lading.

Contractual Port of Loading
A port at which an ocean vessel does not call, but which is equalised with the actual port of call and upon which inland haulage services and inland tariffs are based.
Note: Generally speaking it is seen as the port to be mentioned on the B/L from which cargo is accepted (e.g. delivered by the consignee for sea transport).


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Control
The registration and check on data and activities as well as determining supervising procedures and changes related to procedures.

Convention Internationale Concernant le Transport des Marchandises par Chemin de Fer
Abbreviation: CIM
International agreement, applied by 19 European railway companies, setting out conditions for international railway transport of goods and the liabilities of the carrier.

Convention Relative au Contrat de Transport International de Marchandise par Route
Abbreviation: CMR
Convention for the international carriage of goods by road, setting out the conditions of carriage and the liabilities of the carrier.
Note: Adherence to this set of regulations reflects a desire to standardise items such as documentation and rules on the carriers liability.


Conventional Cargo
See Break Bulk Cargo

Convertor Dolly
An auxiliary undercarriage assembly consisting of a chassis, fifth wheel and towbar used to convert a semi-trailer or a container chassis to a full trailer.

Conveyance
Transport of goods from one place to another.

Conveyor
A mechanical device in the form of a continuous belt for transporting cargo.

Core Competence
The combination of individual skills and use of technologies that underlay the various products and or services of a business.

Core Data
The fundamental set of data that is needed to convey the essential minimum detail for a specific transaction type. Ideally the detail should be all required pieces of information with no, or at least the very minimum of, options.

Core Master Data
The fundamental set of data that is needed to establish sufficient (but minimum) reference material to support the maximum use of pre-code, pre-agreed information enabling simple (minimum required content) transaction messaging.

Core Systems
Systems which are corporately owned and used globally. The systems are managed and controlled by a global team of specialists. The systems are considered as key for the general functioning of the entire company.

Corner Fittings
Fittings located at the corners of containers providing means of supporting, stacking, handling and securing the container.

Corner Post
Vertical structural member at either side of an 'end frame' of a container joining a top and a bottom corner fitting (and thereby forming a 'corner structure').

Correction Message
A substitution for what has been wrong in a prior data interchange between computers in accordance with interchange agreements.

Cost and Freight (...named port of destination)
Abbreviation: CFR
See Inco Terms

Cost, Insurance and Freight (...named port of destination)
Abbreviation: CIF
See Inco Terms

Council of European and Japanese National Shipowner's Associations
Abbreviation: CENSA
The main objectives of this Organisation are to promote and protect sound Shipping policies in all sectors of shipping, to co-ordinate and present the views of its members and to exchange views with other shipowner groups.

Country of Departure
Country from which a certain means of transport is scheduled to depart or has departed.

Country of Despatch
Country from which the goods are shipped.

Country of Origin
Country in which the goods have been produced or manufactured, according to criteria laid down for the purpose of application of the customs tariff, of quantitative restrictions, or of any other measure related to trade.

Country of Provenance
The country from which goods or cargo are sent to the importing country.

Crane
A machine designed for moving and lifting weight by means of a movable projecting arm or a horizontal beam, which is able to travel over a certain distance.

Crew Member
Any person actually employed for duties on board during a voyage in the working or service of a ship and included in the crew list (IMO).

Critical Path Method
A network planning technique used for planning and controlling the activities in a project. By showing each of these activities and their associated times, the 'critical path' can be determined. The critical path is the series of successive activities which takes up most time and is therefore decisive for the total lead time of the project.

Cross Trades
Term used in P&O Nedlloyd for the services of a vessel between nations other than the nation in which the vessel is registered (UNCTAD).

Cruise Ship
A ship on an international voyage carrying passengers participating in a group program and accommodated on board, for the purpose of making scheduled temporary tourist visits at one or more different ports, and which during the voyage does not normally: (a) embark or disembark any other passengers; (b) load or discharge any cargo.

Currency
A medium of exchange of value, defined by reference to the geographical location of the authorities responsible for it (ISO4217).
In general, the monetary unit involved in a transaction and represented by a name or a symbol.


Currency Adjustment Factor
Abbreviation: CAF
Adjustment applied by P&O Nedlloyd lines or liner conferences on freight rates to offset losses or gains for carriers resulting from fluctuations in exchange rates of tariff currencies.

Customer
See Client

Customer Pick Up
Cargo picked up by a customer at a warehouse.

Customer Service
The way in which during a commercial relationship the wishes and demands of the (prospective) client are catered for.
Supporting activities at the customer interface adding value to a product (CEN273).

Customer Service Level
A performance measure of customer service.
Note: generally this is seen as the degree with which customer orders can be executed, in accordance with the terms which are generally accepted in the market.

Customs
The department of the Civil Service that deals with the levying of duties and taxes on imported goods from foreign countries and the control over the export and import of goods e.g. allowed quota prohibited goods.

Customs Broker
An authorised agent specialised in customs clearance procedures on account of importers/exporters.

Customs Clearance Agent
Customs broker or other agent of the consignee designated to perform customs clearance services for the consignee.

Customs Invoice
Document required by the customs in an importing country in which an exporter states the invoice or other price (e.g. selling price, price of identical goods), and specifies costs for freight, insurance and packing etc., terms of delivery and payment, for the purpose of determining the customs value in the importing country of goods consigned to that country.

Customs Value
The worth of an item or group of items expressed in a monetary amount, within a consignment declared to Customs for duty and statistical reasons.

Cybernetics
The study of control processes in mechanical, biological, electrical and information systems.

Cycle Stock
That portion of stock available or planned to be available in a given period for normal demand, excluding excess stock and safety stock.

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