Glossary of Shipping Terminology
Shipping and logistics come with a lot of industry-specific terms that can be confusing. Our comprehensive glossary breaks down key freight forwarding, transportation and supply chain terminology, helping you navigate the world of shipping with confidence.
Whether you’re new to logistics or an industry pro, this guide will clarify essential terms and phrases used in global trade.
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Acceptable Quality Limit (AQL values)
Acceptable Quality Limit (AQL values) is a statistical, random sample based on the lot size. This is the least tolerable process with an average rate that can still be considered acceptable. The resulting result provides information about the quality of the total quantity. -
Air waybill
It is a contract between the sender and the carrier. The air waybill serves as confirmation of receipt of the goods that are to be transported, as a dispatch note, as a transport cost calculation and also as proof of insurance if one has been concluded with the responsible airline. The air waybill serves customs authorities as proof of the dispatch, transit and receipt of the goods. -
All risks insurance
It is the most comprehensive form of insurance for the transportation of goods. However, this does not really cover every type of risk, but only applies to damage or loss of goods caused by an accident. -
Annual Customs Bond
The Annual Customs Bond is a hedge provided by US Customs, which is effective over a 12-month period. The “US customs bond” is a financial guarantee between three parties: the insurance company issuing the bonds, the principal and the customs and border guards. -
Antidumping duties (AD)
Antidumping duties (AD) are provided to protect the U.S. manufacturing industry from foreign manufacturers. Dumping occurs when foreign manufacturers sell goods in the United States at less than real value. -
ATA Carnet
The ATA Carnet is a document that stems from the International Convention. It is used for the duty and tax free import of goods. Basically, it is a passport for these goods, which is valid in all countries that have signed the agreement (a total of 75, including all EU countries). -
ATF
ATF (Airport Terminal Fees) stands for airport terminal fees that arise during physical processing in the customs warehouse. They apply to both import and export goods. -
ATLAS
ATLAS (“Automated Tariff and Local Customs Processing System”) describes the IT solution of the German customs administration, with the help of which customs clearance and the monitoring of cross-border goods traffic are handled electronically. Companies must transmit the import and export declaration including all necessary data to the customs authorities with the help of ATLAS if they want to export goods or if they want to release them for free circulation, inward processing or a customs warehousing procedure, i.e. import the goods. Customs also informs the company of its notification of the corresponding taxes electronically. When importing goods, companies only have to submit an import declaration via ATLAS if the value of the goods exceeds 22 euros or the weight exceeds 1,000 kilograms. When exporting goods, the threshold values, from which an export declaration is required, amount to a value of EUR 1,000 or a weight of 1,000 kilograms. Then the company also needs an export accompanying document and it has to report to the customs office that the goods have arrived at it (“presentation”). The data entered is stored centrally so that all customs administration offices in Germany can access it. ATLAS also transmits the data that are necessary for the movement of goods within the European Union to other customs authorities in other European countries. In July 2009, the electronic ATLAS system replaced paper-based customs clearance. Since then, companies have been obliged to register goods exports only using ATLAS. -
Automated Manifest System (AMS)
The AMS (Automated Manifest System) was introduced in 2004 by US Customs. As a result, airlines and shipping companies must provide accurate details of the cargo within a specified timeframe when shipping to US ports and airports. -
Automated Manifest System (AMS)
The Automated Manifest System was introduced in 2004 by the US customs authorities. According to this, airlines and shipping companies must provide precise details of the cargo when it is shipped to U.S. ports and airports within the prescribed time period.
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BAF
The shipping company calculates the bunker adjustment factor, also known as the bunker surcharge, based on fluctuating oil prices so that possible financial losses in fuel costs can be offset. -
Bill of lading
The bill of lading is a document that is usually used as confirmation of the contract of carriage between the sender and the charterer. It serves as the main document for transportation and is required for customs clearance. It is also considered a “title” or “certificate” for the freight. Bills of lading are only used for ocean freight. -
BOM
A BOM is a list that describes each component and the quantity in the device. It is the recipe for success for your product and a great tool for calculating costs.
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CAF
The Currency Adjustment Factor is a percentage surcharge for liner shipping. This is intended to offset possible financial losses for the carrier due to the fluctuating exchange rate. -
Carrier’s Lien
Carrier’s Lien in German means something like a lien on freight forwarding. The freight forwarder therefore has the right to keep the delivered goods until they have been fully paid for the transport of the goods. The goods may be used by him as security if the payment is not made. -
CASS
The Cargo Agent Settlement System – CASS for short – is responsible for settling the invoice between the freight forwarder and the IATA (International Air Transport Association), the International Air Transport Association. The CASS can also be used by airlines outside of IATA. -
Certificate of origin
It is a commercial document that confirms a specific country as the country of origin or production of the goods. Every certificate of origin has a unique number. The document contains the full name and tax details of the exporter, the address of the recipient, relevant markings or numbers of the packages, the number and type of packages and a description of the individual goods. -
CFS Charge
CFS Charge is incurred at the delivery or receiving point (container freight station) of the ship’s cargo at the destination port. It is a fee that depends on the container size. -
Chassis Fee
The chassis fee is an additional fee for renting the chassis, which is required to carry and transport full container loads. -
Chassis Split
A chassis split may occur when the truck chassis is not located in the same place as the sea freight shipping container. Therefore, the trucking (or drayage) company may charge a chassis split charge for the costs of picking up or returning the chassis to a different terminal than the container. Why does a Chassis Split Fee occur? Several years ago, ocean freight lines started to end their ownership of chassis. This meant that drayage companies had to rent or own their own chassis for trucks. Thus, a chassis split fee happens because available chassis are not always in the same locations as the containers being transported. This costs extra money for trucking companies, and they add the chassis split fee as part of their transportation costs. -
Clean Truck Fee
The Clean Truck Fee is an additional fee that applies to retrofitted trucks in Long Beach, CA to reduce CO2 emissions and pollution. The fee is $ 20 for a 20-foot ISO container. -
Closing date
The closing date is a date on which the goods must be delivered to the port or to the department store in order to avoid additional charges. -
Co-loader
The so-called co-loader refers to the master shipper who allocates the space for the LCL shipment. -
Container freight station (CFS)
The container freight station (CFS) is a facility in which shipments are checked and weighed before being loaded onto an airplane, ship or truck for transport. -
Continuous Customs Bond
The Continuous Customs Bond is a U.S. bond that is legally binding for 12 months. -
Conveyor
A person who transports the goods to a buyer. The mode of transport can vary. Air, sea, truck and rail transport are common. Transport companies usually do most of the actual transportation. -
Countervailing duties (CVD)
Countervailing duties (CVD) are provided to protect the U.S. manufacturing industry from foreign manufacturers. Countervailing duties apply if a foreign government provides sufficient subsidies for its manufacturers and creates tax advantages so that they can sell their goods more cheaply than the US manufacturers. -
Courier
A courier delivers documents between carriers or customs agents and ports or airlines. -
Customs clearance
The Customs Clearance refers to clearing shipments by the customs authorities. It is usually a service that is carried out by the freight forwarder or customs agent. -
Customs goods
These are goods for which customs duty has not yet been paid. They are therefore subject to customs control until payment is made. Bonded goods are stored in a special customs warehouse. -
Customs tariff number
The customs tariff number, also called the goods number, forms the basis for the clear identification of goods and for their correct customs clearance and taxation on import and export. For every cross-border trade, companies therefore need the corresponding customs tariff numbers for all traded products for the customs declaration. In addition, the customs tariff numbers are recorded in the foreign trade statistics of the European Union (EU). Within the EU, customs tariff numbers have eight digits for exports and eleven digits for imports. The first six digits are regulated worldwide uniformly in the “Harmonized System of Tariffs and Trade Codes”, managed by the World Customs Organization (WZO), and are also called HS code. The EU ranks seventh and eighth, and the ninth and tenth in the export of goods represent EU customs policy measures. In this respect, the first ten digits of the customs tariff number correspond to the Taric, the Integrated Tariff of the European Communities. The eleventh digit encodes national regulations, for example on export restrictions in the respective EU country. The Federal Statistical Office (Destatis) provides an updated version of the list of goods for foreign trade statistics on its website every year. Companies can use this nomenclature to determine the correct tariff numbers for their goods. -
Customs warehouse experience
With the customs warehousing procedure, goods from countries outside the European Union (EU) can be stored in warehouses within the customs territory of the EU without incurring customs duties, other import duties or tax payments. They are only due when they are removed from the warehouse. During storage – which must take at least 30 days, but is unlimited in time – customs monitors the premises. According to EU law, there are public and private customs warehouses. Basically, in the customs warehousing process, it is only permitted to store the goods. However, simple tasks such as taking samples or filling the goods are possible, as is active refinement. However, this must be approved by customs. It is also allowed to remove the goods from the warehouse for a short time. If the goods leave the warehouse to be exported again or released for free circulation within the EU, a customs procedure follows. Only now are customs duties and other import duties due. Companies have certain advantages that the customs debt does not have to be paid directly with the import, but only when the goods leave the customs warehouse. For example, they can buy raw materials or primary products from third countries cheaply in large quantities and gradually remove them from the warehouse whenever they are needed for production.
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Delete the cargo
Refers to the process of unpacking goods from a container or loading them from a ship. The verb delete comes from the fact that in the past the captain’s name was deleted from the delivery document as soon as he had brought the goods safely, since he was no longer liable for them afterwards. -
Delivery Authorization Document (DAD)
The Delivery Authorization Document (DAD) authorizes the delivery of goods to be picked up by designated parties. This document must be presented before collection. -
Delivery fee
The delivery fee is a fee for collecting and delivering a delivery of goods from the domestic port to the airport or final destination. -
Delivery order (DO)
The delivery order (DO) is a document that authorizes a designated party to collect a delivery of goods. This document must be presented before collection. -
Destination Delivery Charge (DDC)
Destination Delivery Charge (DDC) covers the processing of the delivery of goods at the destination port. -
Disaster
A term from ocean freight insurance that stands for “damage”. The damage occurs to the goods to be transported, in extreme cases also to the ship. Mostly it is caused by the fact that the ship is in distress. -
Drop Fee
A drop fee (AKA drop off fee or bobtail fee) happens when the delivery trucker is required, due to time constraints, to drop off an FCL container at the warehouse to be unloaded, and pick it up after the unloading is complete. Why do Drop Fees occur? Most container deliveries by truck happen via either live unload or drop off. Truckers usually only allow 1-2 hours of free wait time for their container to be unloaded before they begin to charge a truck wait fee. Therefore, if the container cannot be unloaded within this time frame (due to a congested warehouse or unpalletized cargo), it makes sense for the trucker and costs less for you for the container to be dropped off and picked up later (usually within 48 hours). This drop off and pick up requires an extra trip for the trucker and thus a drop fee is assessed. How does Forto determine if it is necessary? Forto will work with the trucking companies and warehouses to determine if live unload or drop off is better for your shipment. -
Drop Shipping
What is Drop Shipping? Drop shipping is a retail fulfillment method that allows the online seller/retailer to sell products without ever having to produce or store them in a warehouse. Basically, the drop shipper takes the order, pays the manufacturer and provides them with shipping information, then the manufacturer ships the item directly to the customer. Thus, the drop shipper is the middle man or the sales person. It has become a huge method of online retail over the past several years. Amazon is actually still somewhat of a drop shipper in that they don’t produce many of the products they sell. Although profit margins are lower, it is still an attractive and popular business model because retailers do not have to worry about storing any inventory, allowing them to focus on gaining new customers. -
Dropp and Pull
Drop and pull is the process of the truck driver delivering the goods to the destination and leaving the container behind for a few hours before taking it back to the warehouse.
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Electronic Customs Tariff
The Electronic Customs Tariff (EZT) is the customs tariff applicable in Germany, which is used for the handling of the import and export of goods. For this purpose, the goods are classified based on their code numbers and assigned to the respective customs duties that apply in Germany. The EZT is based on the Taric, the European Union’s Integrated Tariff, but also contains nationally valid data such as excise duties, information on bans and restrictions on imports and exports, and trade policy measures such as anti-dumping duties. Companies can use the EZT to determine the due duties on imports or exports online in advance. Goods that are imported into Germany receive an 11-digit code number, goods for export an 8-digit code number. At the beginning of 1999, the EZT replaced the printed version of the German Customs Tariff. -
Eori
Eori – Economic Operators’ Registration and Identification – is a system that enables traders to be clearly registered and identified in relation to customs. The customs authorities assign exactly one EORI number to all companies and private individuals who want to import or export goods. This contains up to 17 characters and is valid across the EU. When registering goods imports or exports, the EORI number must always be given to customs; this also applies to export permits from the Federal Office of Economics and Export Control. -
Estimated time of departure (ETD)
The term Estimated Time of Departure (ETD) is used for the expected departure time of the goods delivery at the port of origin. -
Ex-Works
Ex-Works are the Incoterms (conditions of sale) that stipulate that the buyer is responsible for organizing someone to collect the delivery of goods from the supplier’s warehouse or plant and for transit to the final destination.
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Fiscal customs clearance
Fiscal customs clearance contains regulations on value-added tax that make it easier for German importers to import goods from third countries into Germany via another member state of the European Union (EU). The importer actually has to pay not only customs duties but also VAT when importing goods from third countries, for example when importing Chinese products intended for the German market into the EU via the port of Rotterdam. However, if the goods are transported onward to Germany without delay, the importer can, however, appoint a fiscal representative by means of a power of attorney to handle the imports on his behalf for VAT purposes. In the importing country – that is, in the example above, the Netherlands – only customs duties are paid, while the VAT payment is later paid via the company’s VAT registration. This possibility of deferring the payment of VAT means a liquidity advantage for the importer Forwarding agents, tax advisors, auditors or lawyers can be considered as fiscal representatives. They take care of all VAT obligations for the importer that he would otherwise have to deal with himself. The condition for the appointment of a fiscal representative is, however, that the importer is neither resident nor has any other taxable turnover in the EU country via which he transports the goods to Germany. -
Forwarder
Companies that take over the physical transport of cargo – aircraft, line freighters, trucks etc. Often they do not only take care of the transport, but also offer comprehensive service packages (e.g. they can also take over the storage of the cargo). -
Freight contracts
Transport contracts, also called freight contracts, are concluded on the basis of international freight law. The purpose is to guarantee the uniformity of the rules and laws, to set the minimum standard for the liability and responsibility of the transport company and to document the rights and areas of responsibility of dealers, charterers and contractual partners. -
Freight forwarders
Companies that take care of the shipping. In English, a distinction is made between freight forwarders (carriers), carriers and shippers (transport companies). Shippers include goods, carriers include transport. Freight forwarders conclude contracts with the shippers and ensure that the goods are moved from one place to another – from the first step to the last. So you are a service company. -
Fuel surcharge (FS)
Fuel surcharge (FS) is usually calculated for the fuel costs incurred by the carrier. -
Full charge
Full truck load means full load in German and means a quantity of goods that represents the entire load of a truck and thus utilizes it. In contrast, LTL stands for Less than Truck Load, i.e. less than a full truck load. -
Full container load
A full container load (FCL) is a delivery of goods that is large enough to fit in the container for transit. The containers can be 20 ″ or 40 ″ in size, which are referred to as FCL 20 ″ or FCL 40 ″.
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Genset
What is a Genset? A Genset (generator set) is a generator unit that attaches to a reefer (refrigerated) container and is used for perishable goods being transporting overseas or on a truck. In these situations, the reefer container needs an additional source of power to keep the shipment cooled. Gensets are usually rented from or provided by the company providing the reefer container. How to they function? The gensets are usually both electric and fuel powered to be able to function on both ships and trucks. On a ship the genset container usually plugs into the ship’s main power source and uses its electrical functions. On a truck that electricity isn’t available so it has to use fuel to keep the container cooled. The gensets clip onto the side (clip-on) or underneath (underslung) the reefer container. In most situations, the clip-on genset is used on cargo ships and the underslung genset is used on trucks, as these are what typically work best for these modes of transport. What does Forto do in regards to gensets? You as the customer and Forto as the freight forwarder will know if the goods you will be shipping are perishable or need refrigeration. So Forto will determine if these goods need a reefer container genset based on the transportation method and timeline and thus provide the best shipping option available for your goods. -
Gross weight
The weight of a delivery including packaging. For example, a container is weighed including cargo. A certain empty weight is therefore specified for many means of transport. If this is up-to-date and accurate, gross weighing can be omitted.
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Harbor Maintenance Fee
What is the Harbor Maintenance Fee? The Harbor Maintenance Fee (HMF) was created in 1986 with the purpose of sharing the cost of maintenance to US harbors with those who benefit from their use. This means that US Customs and Border Protection (CBP) collects this fee from all shipments entering the US through seaports (sea freight) only, not by air transport. How is the Harbor Maintenance Fee assessed? The HMF is calculated at a rate of 0.125% of the value of the cargo shipped through identified ports. There are no upper or lower limits to the HMF. The fee is collected by CBP at the time of entry. -
Harbor tariff
Fee for the transportation of containers around the port, as well as handling, storage and other services. The price is calculated per metric ton or cubic ton. While smaller ports charge these services individually, larger commercial ports usually offer fixed port rates for combined services. -
House bill of lading
It is a bill of lading issued by the transport company, which is then usually the official carrier of the freight. It is issued as soon as the company has received the goods to be shipped from the shipper. -
HS Code
What is a HS Code? The Harmonized Commodity Description and Coding System, or HS Code for short, are product classification codes used by the World Customs Organization to identify and classify all types of commodities for customs procedures. It is one method used to standardize shipping throughout the entire world and it is important that each shipment have the correct HS Code in order to avoid any delays or extra fees. It is a six-digit code with multiple identifiable parts. There are also HS Tariff Codes (HTS Codes) used primarily by the US which just have a few extra numbers on the end of the original HS Code. Forto is obviously fluent in regards to this topic and we have much more information on them right here.
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ICS
The ICS – International Chamber of Shipping – is a global merchant ship organization. It was founded in 1921 and is based in London. Around 80% of the merchant ships are represented in the ICS. -
Importer of Record
What or who is the Importer of Record? The importer of record (IOR) is the entity or person who assumes the responsibility of ensuring legal goods are imported in accordance with the laws of the place to which the goods are being imported. Responsibilities Responsibilities of the IOR include proper documentation, classification, and valuation of the goods as well as payment of any duties, tariffs, or other fees of the imported goods. Compliance Voluntary compliance with all necessary regulations is expected of all Importers of Record. This primarily includes accurate documentation and accountability of the goods at the time of import. If necessary, the government entity monitoring imports will force compliance through inspections and examinations of cargo and documentation. Location Generally, the Importer of Record must be located or established in the place of importation. This is the case in the EU and Importers of Record are required have proper documentation confirming this. For imports into the US, specific documentation is required to create a foreign importer of record if there is not one currently established in the US. Forto will ensure that you and your shipment have all proper documentation to avoid any issues with the Importer of Record. -
Importer Security Filing (ISF)
Importer Security Filing (ISF) is the document requested by the US authorities and must be submitted at least 24 hours before shipment begins. -
Inbound logistics
An organization that refers to the fact that materials or goods are brought to a manufacturer, supplier, warehouse or store (on the part of the provider). The focus is on planning, control and provision, and the appropriate mode of transport is organized. -
Incoterms
Incoterms are international trading rules regarding purchase and shipping. These determine the costs for which buyers and sellers are responsible. This should avoid any uncertainties regarding possible costs. For example, if you ask yourself as a buyer who has to pay for the customs fees for their air freight, you will always find this type of information in the Incoterms. -
Intermodal transport
Intermodal transport is part of multimodal transport and refers to a multi-part transport chain in which a freight is transported with two or more modes of transport without changing the transport container. In German, this type of traffic is also referred to as “combined traffic”. -
International Maritime Organization (IMO)
The International Maritime Organization (IMO) is a UN specialized agency. Her responsibilities include reducing marine pollution from ships and international regulation of merchant shipping matters. -
Inward processing
In the case of inward processing, goods from third countries are imported into the European Union (EU) to be processed, i.e. they are processed, processed or repaired / repaired here. No customs duties are due on imports of these goods and no trade policy measures are applied. However, the customs authorities must authorize the import for processing. An example of this is the import of agricultural goods that are processed into food within the EU. When the processing is finished, a customs procedure follows: Either the processed goods are exported to third countries or the goods are sold within the EU (released for free circulation). Inward processing is the counterpart to outward processing. -
ISF bond
An ISF bond is a unique bond that is issued in conjunction with the ISF if the Annual Customs Bond has not yet been deposited for the importer.
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Last Mile Delivery
Last Mile Delivery refers to a fee incurred by picking up and sending a delivery of goods from a domestic port or airport to the final destination. -
Less than Container Load (LCL)
Less than Container Load (LCL) refers to deliveries of goods that are not large enough to fill a container and are therefore consolidated and shipped together with other deliveries of goods that travel the same route. -
Lift on/Lift off (LoLo)
A carrier fee for moving a full container load from the truck to another location. The term is also used for ocean freight and is often referred to as the LoLo process. With the RoRo process, however, the cargo is driven onto the ship. -
Liner ship
A cargo ship that continually arrives at ports at specified times to load or unload goods and goods there. There are usually cranes ready to take over the loading and unloading. -
Loose freight
Loose freight means that original boxes are not palletized. In the case of air freight shipments, loose cargo optimizes the cargo capacity of the aircraft.
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Manifest
The manifest is a list of the cargo carried on board a ship and is therefore also known as the “cargo list” or “cargo manifest”. This list is required by customs for verification. It also serves as identification for the goods on board if the ship e.g. being checked by a warship. -
Maximum carrying capacity
The term maximum weight (deadweight tonnage) refers to the load capacity of a ship, i.e. the total transport capacity of the ship including the crew. Units of measurement for calculation are metric tons (1,000 kg) and long tons (corresponding to 1,016 kg). Meanwhile, the unit of measurement TEU (length of twenty feet corresponds to one unit) is used for the parking space capacity. -
Merchandise Processing Fee
What is the Merchandise Processing Fee? The Merchandise Processing Fee (MPF) is a fee collected by US Customs and Border Protection (CBP) on almost all imports* into the United States. Its purpose is to help process and monitor merchandise entering the US. The MPF is assessed at the time of entry summary and is charged on both formal and informal entries. How is the cost of the Merchandise Processing Fee determined? The MPF is a fee of 0.3464% of the overall value of the merchandise being imported, not including duty, freight, or insurance charges. This is the rate for formal entries (valued at $2,500 and above). There are also minimum and maximum thresholds for the MPF, those being $25.67 and $497.99 per entry, respectively. For informal entries (less than $2,500), the MPF is a flat fee of $2.05. *Some merchandise or shipments are exempt from the MPF by US Customs if they qualify for certain Free Trade Agreements (FTAs), such as NAFTA. -
Minimum fee
The lowest fee that a carrier charges for transportation between two ports. -
Mode of transport
There are different types of transportation for the freight. The main types are air transportation, sea transportation, truck transportation and rail transportation.
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Net weight
The weight of a delivery without the weight of the packaging.
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Ocean Freight (OF)
Ocean Freight (OF) is the cost of weight and mass for the transportation of goods across the ocean. -
On-board bill of lading
It is a special form of bill of lading. The on-board bill of lading is a confirmation document that the cargo has been loaded on board the ship, which is named in the bill of lading as the official transport ship. It is issued by the carrier. -
Out of gauge
Out of gauge is the term used to refer to loads whose dimensions are larger than the standard dimensions of a container. For this special open top containers (with removable tarpaulin) with excess height are used. Oversized goods are usually vehicles or generators. -
Outbound logistics
The organization of the transport of goods to the customer or end user. In contrast to inbound logistics, outbound deals with everything that happens after the production of the goods. Outbound logistics can also be referred to as distribution or sales logistics. -
Outsider line
A shipping company that does not belong to a conference. -
Outward processing
In the case of outward processing, goods from the European Union (EU) are temporarily exported to be finished in a country outside the EU, i.e. they are processed, processed or repaired / repaired there. The finished goods are then imported back into the EU. An example of this is the export of substances from which clothing is produced in non-EU countries. One reason for the export is that companies want to use lower production costs abroad. The reimportation of the finished goods is subject to customs duties, but the full customs duty is not due: only the added value, i.e. the costs of the finishing, is cleared. The value of the originally exported goods, on the other hand, is not taken into account when determining the customs burden on re-import. Passive finishing is the counterpart to active finishing.
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Pallet exchange
When a truck driver picks up a delivery of goods, he often has to bring pallets to exchange the goods (these are strapped to the carrier pallet). If no pallets are brought, there is a fee for the pallet exchange. -
Peak Season Surcharge (PSS)
Peak Season Surcharge is an additional temporary fee that is required during a high season as space on the ship can become scarce during these times. The shipping season is usually the period between August and October. -
PierPass Fee
The PierPass Fee (aka Traffic Mitigation Fee) is an additional charge to your shipment if the cargo is moved out of the Los Angeles or Long Beach ports during peak daytime hours on weekdays (3 AM to 6 PM). It is assessed as part of the OffPeak Program by PierPass, a non-profit organization created in 2005 to reduce heavy traffic congestion during weekdays. It is also used as incentive for shippers to use nighttime hours to move their cargo. The fee pays for the extra nighttime operation hours of the ports. The current* Pier Pass Fee applies to both FCL and LCL shipments. For FCL shipments the current fee is $72.09 per TEU (twenty-foot equivalent unit) and $144.14 per FEU (forty-foot equivalent unit). For LCL shipments the current fee is assessed by volume of the shipment (cbm). The fee is a non-negotiable, standard pass-through charge that cannot be changed by Forto. Future of PierPass Charges *Starting sometime in late 2018, PierPass will be implementing a new appointment-based system that uses a flat fee structure on both daytime and nighttime shipments. After several years of operation, PierPass determined that an appointment-based system will be better able to control the flow of traffic at the ports during both daytime and nighttime hours. This will also mean a reduction in the PierPass Fee to a flat rate of $31.52 per TEU and $63.04 for all other container sizes, but this charge will be applied to every shipment, regardless of it happens during peak daytime hours or not. -
Port of loading
The port of loading, also known as the Port of Lading (POL), is the port in which the delivery is loaded onto the plane, onto the ship or onto the truck. -
Port of unloading (POD)
The port of unloading (POD) is the port in which the delivery is loaded onto the plane, onto a ship or into a truck. -
Proof of delivery
A signed receipt for the delivery. The proof is issued by the transport company and signed by the recipient. Any defects or damage to the goods must be noted on the proof of delivery. -
Proximate Cause
In German, this term means direct cause of damage. The insurance company tries to find out exactly what caused the damage or loss of the goods, which can be difficult if the damage only occurred after a series of events. -
PSS
Peak Season Surcharge is an additional temporary fee that is required during a high season as space on the ship can become scarce during these times. The shipping season is usually the period between August and October.
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Refrigerated container
Insulated containers equipped with cooling units. Refrigerated containers were introduced to merchant shipping around 50 years ago. They are mainly used for the transportation of food and must meet a certain standard (ISO standard). -
Return customs
Return customs refers to customs fees paid for an export that was previously imported. In the end, customs duties are eliminated, since the goods were imported into the country, but are not consumed there, but are re-exported. -
Revenue ton
This is the weight unit that is used to calculate the freight price. Usually a cubic meter or 1,000 kg. -
Roll money
The roll money refers to the movement of a delivery of goods over a short distance, e.g. from the warehouse to the port or vice versa in the same urban area. Usually this can be done within one work shift. The term roll money is often used to refer to the fees associated with such deliveries.
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SAD
The Single Administrative Document (SAD) is a document for all customs duties and is valid in various parts of the world, including the EU and China. -
SCAC
SCAC stands for Standard Carrier Alpha Code, in German Standard Transport Alpha Code. It is a two- to four-digit letter code that serves to identify the carrier. -
Seal
A metal bar that is numbered and used to seal cargo containers. The level of security depends on the type of seal. -
Security surcharge
This is an additional fee that may be charged for sea and air transportation. In the case of air transport, this is usually dependent on the weight of the freight, in the case of sea transport it is dependent on the container, unit of weight or bill of lading. -
Shut Out
Shut out occurs when a freight is already on the way to the recipient, but the recipient no longer needs the goods and takes back the order. The goods must then be returned to the sender’s premises. -
Single Entry Customs Bond
Single Entry Customs Bond refers to US customs agency commitments that are only valid for the processing of a delivery of goods. -
Stripping fee
The stripping fee includes the processing of a delivery of goods at the destination port.
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T1 procedure
With the T1 procedure, goods from non-European countries can be transported within the European Union (EU), the countries of the European Free Trade Association (EFTA) as well as Turkey, the Republic of North Macedonia and Serbia without having to pay customs duties at the individual border crossings during transport have to. Customs duties only apply at the final destination. Using this common transit procedure, customs clearance is moved away from the EU’s external borders to the customs authorities at the destination within the respective EU member country. A shipping declaration must be made for the T1 procedure. Among other things, it contains the sender and recipient of the goods, the total number of goods to be transported, the country of dispatch and destination with the relevant customs authorities and the customs tariff number. If a non-EU country has to be passed during the transport, this must be noted in the shipping declaration. -
Tail Gate Exam
What is a Tail Gate exam? A Tail Gate exam is a type of Custom exam, the next step up from an X-ray exam. If U.S. Customs and Border Protection (CBP) selects your container for a Tail Gate exam, a Customs officer will break the seal of the container at the ocean terminal, open the doors, and look inside the container. The Customs officer will then choose to either release the container or escalate the container to an intensive exam How long does exam take? Tail Gate exams usually take 5-6 days, but exam timelines may vary based on congestion at the port and the CES (Centralized Examination Station). A CES is a privately operated facility designated by CBP for physical examination where imported or exported cargo is made available for inspection. Your Forto operations team will update your shipment schedule as necessary. -
Tank container
A container designed for the transport of liquids, gases and powders. -
Taric
The Taric describes the single European tariff, the Integrated Tariff of the European Communities (tariff douanier integré des Communautés Europeénnes). It is used for processing imports and exports from the European Union (EU) and made available by the EU Commission as an electronic database. The Taric uses the code number to assign goods to the respective tariff rates: the first eight digits of the ten-digit Taric number correspond to the customs tariff number, and the other two digits represent EU customs policy measures, such as trade policy measures such as anti-dumping duties or import and export restrictions. Companies can use the Taric to determine the customs duties due before importing or exporting the goods. The Taric only includes EU-wide customs duties and regulations; however, national provisions are not included. For Germany, these can be found in the Electronic Customs Tariff (EZT). -
Telex Release
Telex Release is an electronic release of goods by the seller. -
Terminal handling charge
Terminal handling charge refers to a fee that is incurred for the processing of goods deliveries at the destination port. -
Tradelane
Tradelane is a route that is used by ocean freight to move goods from the start to the destination. -
Transfer of claims
Describes an insurance company’s right of counterclaim. If e.g. If the goods are damaged or lost, the transport company can also be held responsible. -
Transit Time (TT)
The transit time is the travel time between the departure of the goods delivery from the place of origin and their arrival at the destination port.
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Unit Load Device
The term ULD (Unit Load Device) stands for special containers and pallets that are used to load cargo into an aircraft. The aim is to save time and work, since fewer units have to be loaded with the containers. They consist of aluminum, plastic or a mixture of both. -
Unloading
Unloading typically refers to taking a shipment of goods from a truck, ship, or plane.
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Value freight
The term refers to cargo that is worth $ 1,000 or more per kilogram or contains valuable cargo such as metals, banknotes, pearls, diamonds, jewels, gold (in almost any form), checks, activated bank and credit cards or platinum .
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Warehouse to warehouse
The Warehouse to Warehouse rule determines where the freight insurance ends. For example, the insurance company remain there for a while after delivery of the goods to their destination. -
Warhage fee
A wharfage fee is a fee that is incurred for the processing of a delivery of goods at the destination port. -
Weight Measure (WM)
Weight Measure (WM) is the unit of measure used to calculate the air freight or ocean freight rate.
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Zone charges
Zone charges are liner fees that are charged for the transport of LCL and FCL containers (LCL: Less than full container load; transport quantity that does not represent a complete container load. FCL: Full Container Load; transport quantity that represents a complete container load ).