Air Way Bill (AWB) A non-negotiable contract for carriage of air transportation between an air carrier and a shipper, or an air carrier and an air freight forwarder. In the latter case the forwarder, as an indirect air carrier, issues his own house air waybill to the shipper.   BAF (Bunker Adjustment Factor) Surcharge applied by shipping lines or liner conferences to offset the effect of fluctuations in the cost of bunkers.   Bill of exchange An unconditional order issued by a person or business which directs the recipient to pay a fixed sum of money to a third party at a future date. The future date may be either fixed or negotiable. A bill of exchange must be in writing and signed and dated.   Bill of lading B/L The contract of carriage between the shipper and the carrier that serves as a receipt for the goods delivered to the carrier for shipment and evidence of title to the goods.   Bonded warehouse A warehouse established by the state, or by private enterprise, in which goods liable to duty are lodged until the duty upon them has been paid.   Booking The offering by a shipper of cargo for transport and the acceptance of the offering by the carrier or his agent.   CAF (Currency Adjustment Factor) Surcharge applied by shipping lines or liner conferences on freight rates to offset losses or gains for carriers resulting from fluctuations in exchange rates of tariff currencies.   Carnet A customs document permitting the holder to carry or send merchandise temporarily into certain foreign countries without paying duties or posting bonds.   Cash against Documents (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.   Commercial Invoice A document showing commercial values of the transaction between the buyer and seller.   Common Agricultural Policy (PAC) System of subsidies paid to EU farmers. Its main purposes are to guarantee minimum levels of production, so that Europeans have enough food to eat, and to ensure a fair standard of living for those dependent on agriculture.   Consolidated Shipment (LCL) An arrangement whereby various shippers pool their boxed goods on the same shipment, sharing the total weight charge for the shipment.   Container An item of equipment as defined by the International Organization for Standardization (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   Customs Broker An authorized agent specialized in customs clearance procedures on account of importers/exporters. Normally responsible for obtaining and submitting all documents for clearing merchandise through customs and arranging inland transport as well as paying all charges related to these functions.   Duty A tax imposed on imports by the customs authority of a country. Duties are generally based on the value of the goods (ad valorem duties), some other factors such as weight or quantity (specific duties), or a combination of value and other factors (compound duties).   EUR1/EUR2 Certificate used to claim preferential (reduced or even zero) rates of duty in the country of importation. To qualify the goods must fully meet the rules of origin in the exporting country and be accompanied by a correctly completed and endorsed EUR1. The EUR1 form should be completed by the exporter. Some countries have agreed that where a consignment is below a certain threshold value either a specific invoice declaration or, in some cases, an EUR2 can be used instead.   FCL (Full Container Load) A container stuffed or stripped under risk and for account of the shipper and/or the consignee. A general reference for identifying container loads of cargo loaded and/or discharged at merchants' premises.   FIATA (International Federation of Freight Forwarders Associations) FIATA is the largest non-governmental organisation in transportation, it is a Trade association representing freight forwarding and logistics firms.   Freight The remuneration earned by a ship owner or manager for the carriage of goods; including the profit derived from carrying his own goods.   Freight collect Freight payable at destination, shipping agent deliver goods against freight payment by consignee.   Freight forwarder The party arranging the carriage of goods including connected services and/or associated formalities on behalf of a shipper or consignee.   Gross weight Weight of goods including packing, but excluding the carrier's equipment expressed in whole kilograms.   Handling Agent Company which provides services to airlines who have no facilities available to them at the airports they use. These paid services can also involve customs or commercial duties.   IATA (International Air Transport Association) An international organization of airlines, founded in 1945, with the aim of promoting the commercial air traffic. This should be achieved by cooperation between parties concerned and by performance of certain rules, procedures and tariffs, regarding both cargo and passengers, by those parties.   Incoterms A set of international rules promulgated by the International Chamber of Commerce for the uniform interpretation of commonly used trade terms in foreign trade. They describe in detail the responsibilities of the sellers and buyers in international trade.   ISPS (International Ship and ports facility security code) Surcharge to reflect additional costs generated by the application of new regulations and requirements or ocean carriers and terminals to strengthen port and vessel security within the global framework of war against terrorism.   LCL Less than a container load (see consolidated shipment).   LCL/FCL (Buyer's Consolidation) Container loaded with several lots from different suppliers but intended for the same recipient.   Letter of Credit (L/C) Document issued by a bank per instructions by a buyer of goods authorizing the seller to draw a specified sum of money under specified terms. Issued as revocable or irrevocable. Lighter - An open or covered barge equipped with a crane and towed by a tugboat. Used mostly in harbors and inland waterways.   Logistics The planning, execution and control: - of the movement and placement of people and/or goods - and of the supporting activities related to such movement and placement within a system organized to achieve specific objectives   Manifest Document which lists the specifications of goods loaded in a means of transport or equipment for transportation purposes. As a rule cargo manifests are drawn up by the agents in the place of loading.   Net weight The weight of the goods, excluding all packing.   NVOCC Non-Vessel Operating Common Carrier An FMC licensed cargo consolidator of small shipments in ocean trade, generally soliciting business and arranging for or performing containerization functions at the port.   Packing list Document specifying the contents of each individual package.   Pallet A load-carrying platform to which loose cargo is secured before placing aboard the aircraft/vessel.   Port 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.   Proforma invoice An invoice provided by a supplier prior to the shipment of merchandise, informing the buyer of the kinds and quantities of goods to be sent, their value, and specifications (weight, size, etc.).   Quotation Amount stated as the price according to tariff for certain services to be provided or issued to a customer with specification on conditions for carriage.   SAD (Single Administrative Document) Multi-purpose form intended to reduce the number of documents required for the transportation of goods between EC countries. The SAD is not required for shipments within the EC, but is used for Community Transit status, in the following circumstances: T1 for non-EC goods which have not been entered into free circulation in the EC; T2 for free-circulation goods to be moved by surface (road, rail, ship or any combination) between EC countries via an EFTA country; T5 for goods controlled under the EC's Common Agricultural Policy.   Stuffing/Destuffing The loading/unloading of cargo into a container.   TEU (Twenty Foot Equivalent Unit) Unit of measurement equivalent to one twenty foot shipping container.   Transshipment Refers to the act of sending an exported product through an intermediate country before routing it to the country intended to be its final destination.   ULD (Unit Load Device) Any type of container or pallet, in which a consignment can be transported by air whether or not such a container is considered aircraft equipment. Any type of air freight container, aircraft container, aircraft pallet with a net, or aircraft pallet with a net over an igloo.   Warsaw Convention The Convention for the Unification of Certain Rules Relating to International Carriage by Air, signed at Warsaw, 12 October 1929, or that Convention as amended by the Hague Protocol, 1955, stipulating obligations or parties and limitations and/or exonerations of carriers (aircargo).   Weight/Measure (w/m) The freight rate on export goods is often based on W/M (weight or measure), that is, based on the weight or the volume of cargo (the cube or measurement of cargo). The rate uses the comparative relation between weight and volume of cargo. A cargo that is large in relation to its weight is charged according to its total cube, while a cargo that is heavy in relation to its size is charged according to its gross weight.