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Shipping & Trade
Abbreviations Glossary
Every abbreviation used in international freight, trade finance, and export documentation — explained in plain English.
0–9
3PL
3rd Party Logistics — outsourcing logistics operations to a third-party provider.
4PL
4th Party Logistics — manages all supply chain partners on behalf of the client.
A
AMS
Automated Manifest System — a US Customs system requiring advance electronic cargo manifest submission.
AWB
Air Waybill — the freight document issued by an airline or freight forwarder for air shipments.
B
B2B
Business to Business — trade between two companies rather than with an end consumer.
B2C
Business to Customer — trade directly to the end consumer.
BAF
Bunker Adjustment Factor — surcharge applied by shipping lines to offset fluctuating fuel costs.
B/B
Break Bulk — cargo shipped loose (sacks, bales, drums) rather than in containers.
BCO
Beneficial Cargo Owner — the actual owner of goods being shipped.
BIMCO
The Baltic and International Maritime Council — the world's largest international shipping association.
B/L
Bill of Lading — the master shipping document; acts as receipt, contract of carriage, and title to goods.
BPO
Business Process Outsourcing — delegating business functions to a third party.
C
CAF
Currency Adjustment Factor — a surcharge to account for currency exchange rate fluctuations.
CBM
Cubic Metre — the standard unit for measuring cargo volume (length × width × height in metres).
C&F
Cost and Freight — seller pays freight to destination port; buyer arranges insurance.
CFS
Container Freight Station — a warehouse where LCL cargo is consolidated or de-consolidated.
CIF
Cost, Insurance and Freight — seller pays freight and insurance to the destination port.
CIP
Carriage and Insurance Paid To — seller pays freight and insurance to named destination (Incoterm).
CLP
Container Load Plan — a document showing how cargo is loaded and distributed inside a container.
C/O
Certificate of Origin — a document certifying the country where goods were manufactured.
C.O.C.
Carrier's Own Container — a container owned by the shipping line (as opposed to SOC).
C.O.D.
Cash On Delivery — payment is collected from the buyer at the time of delivery.
CPT
Carriage Paid To — seller pays freight to a named destination; risk transfers at origin (Incoterm).
CSC
International Convention for Safe Containers — international safety standards for shipping containers.
CSI
Container Security Initiative — a US program to inspect high-risk containers before they reach US ports.
CY
Container Yard — the area at a port where full containers are received, stored, and dispatched.
D
D/A
Documents Against Acceptance — the bank releases documents to the buyer when they accept a draft.
DAF
Delivered at Frontier — seller delivers goods to a named border point (older Incoterm).
DDC
Destination Delivery Charge — a fee charged by shipping lines for moving containers at the destination port.
DDP
Delivered Duty Paid — seller bears all costs and risks to the buyer's door, including customs duties.
DDU
Delivered Duty Unpaid — seller delivers goods to destination; buyer handles import duties.
D.G.
Dangerous Goods — cargo classified as hazardous under IMDG, IATA, or ADR regulations.
D/O
Delivery Order — a document authorising release of goods from a warehouse or container terminal.
D/P
Documents Against Payment — the bank releases documents only after the buyer makes payment.
D/R
Dock Receipt — a receipt issued when goods are handed over at a port or dock.
E
EDI
Electronic Data Interchange — standardised electronic transfer of trade and logistics documents.
E.&O.E.
Errors and Omissions Excepted — a disclaimer on invoices and quotations noting that corrections may be made.
ERP
Enterprise Resources Planning — integrated software for managing business operations.
ETA
Estimated Time of Arrival — the expected date and time a vessel or shipment arrives at destination.
ETD
Estimated Time of Departure — the expected date a vessel departs from the port of loading.
EXW
Ex-Works — buyer collects goods from seller's premises and bears all costs and risks from that point (Incoterm).
F
FAF
Fuel Adjustment Factor — a surcharge applied to offset fuel price changes.
FAK
Freight All Kinds — a single flat freight rate applied regardless of the type of cargo.
FAS
Free Alongside Ship — seller delivers goods alongside the vessel at the port of origin (Incoterm).
FCL
Full Container Load — a shipment that fills an entire container, booked by a single shipper.
FCR
Forwarder's Cargo Receipt — a receipt issued by a freight forwarder confirming cargo has been received.
FEU
Forty-Foot Equivalent Unit — the standard measurement for a 40-foot shipping container.
F.I.
Free In — ship owner does not pay for loading costs; the charterer pays.
FIATA
International Federation of Freight Forwarders Associations — the global trade body for freight forwarders.
FIFO
First In, First Out — inventory management method where oldest stock is used or sold first.
F.I.O.
Free In and Out — charterer pays both loading and discharge costs.
FIOST
Free In, Out, Stowed & Trimmed — charterer pays all cargo handling costs including stowing and trimming.
FMC
Federal Maritime Commission — the US regulatory body overseeing international ocean shipping.
FOB
Free On Board — seller delivers goods on board the vessel; risk transfers to buyer at that point (Incoterm).
F.O.R.
Free On Rail — seller delivers goods to a named railway point.
F/R
Flat Rack Container — an open-sided container used for oversized cargo such as machinery.
FTZ
Free Trade Zone — a designated area where goods can be imported, stored, and re-exported with reduced customs formalities.
G
GDP
Gross Domestic Product — the total value of goods and services produced by a country.
GRI
General Rate Increase — a blanket rate increase announced by shipping lines.
GSA
General Sales Agent — an agent authorised to sell cargo space on behalf of a carrier.
G.WT.
Gross Weight — the total weight of goods including packaging, pallets, and the container tare.
H
HAWB
House Air Waybill — an air waybill issued by a freight forwarder to its customer (not the airline).
H/H
Half Height Container — a low-profile container used for dense, heavy cargo such as minerals.
I
IATA
International Air Transport Association — the trade association for the world's airlines.
IBC
Intermediate Bulk Container — a reusable industrial container for bulk liquids and solids.
ICC
International Chamber of Commerce — the body that publishes Incoterms and UCP rules.
IMDG
International Maritime Dangerous Goods Code — the international regulations governing sea transport of hazardous materials.
IMO
International Maritime Organization — the United Nations agency responsible for shipping safety and security.
Incoterms
International Commercial Terms — standardised trade terms published by the ICC defining responsibilities between buyer and seller.
IPI
Interior Point Intermodal — a through-rate covering ocean and inland transport to an interior destination.
ISO
International Organization for Standardization — sets global standards including container dimensions.
ISPS
International Ship and Port Facility Security — a framework of security measures for ships and port facilities.
L
LASH
Lighter Aboard Ship — a vessel that carries barges (lighters) on deck.
L/C
Letter of Credit — a bank guarantee that payment will be made once shipping documents are presented.
LCL
Less than Container Load — a shipment that does not fill an entire container; cargo is grouped with other shippers.
L/G
Letter of Guarantee — a bank guarantee used to release goods when the original B/L is missing.
LNG
Liquefied Natural Gas — natural gas cooled to liquid form for storage and transport.
Lo-Lo
Lift-on Lift-off — a vessel where containers are loaded and discharged by crane.
LPG
Liquefied Petroleum Gas — propane and butane gases transported in liquid form.
LT
Lead Time — the total time between placing an order and receiving the goods.
LTL
Less-Than-Truckload — a freight shipment that does not fill an entire truck.
M
MAWB
Master Air Waybill — the air waybill issued by the airline to the freight forwarder.
MLO
Main Line Operators — the large ocean carriers that operate major shipping routes.
MRP
Material Requirements Planning — a production planning system to manage manufacturing and inventory.
M/S
Motor Ship — a vessel powered by diesel engines.
MSDS
Material Safety Data Sheet — a document detailing the hazards and safe handling of a chemical substance.
MTO
Multimodal Transport Operator — issues a single document for cargo moved by two or more transport modes.
N
N/A
Not Applicable / Not Available.
N.O.S.
Not Otherwise Specified — used in freight classification when a commodity does not fit a specific category.
NVOCC
Non-Vessel Operating Common Carrier — a freight forwarder who issues B/Ls but does not own ships.
O
OCP
Overland Common Point — an inland destination that benefits from the same rate as a coastal port.
OEM
Original Equipment Manufacturer — a company that produces components used in another company's product.
O/H
Over Height — cargo that exceeds standard container height and requires special handling.
ORC
Origin Receiving Charge — a fee charged at the origin port for receiving and handling cargo.
O/S
Open Side Container — a container with removable side panels, used for wide cargo.
O/T
Open Top Container — a container with a removable roof, used for tall cargo loaded by crane.
O/W
Over Width — cargo that exceeds standard container width.
P
PCS
Port Congestion Surcharge — an additional charge when a port is congested and vessels face delays.
P&I Club
Protection and Indemnity Club — a mutual insurance association covering shipowners' liability.
POD
Port of Discharge — the port where cargo is unloaded from the vessel.
POL
Port of Loading — the port where cargo is loaded onto the vessel.
PSS
Peak Season Surcharge — an additional freight charge during high-demand periods.
R
RF
Reefer Container — a refrigerated container used for temperature-sensitive cargo such as food and pharmaceuticals.
RFP
Request for Proposal — a formal document inviting suppliers to submit proposals.
RFQ
Request for Quotation — a request for a price quote from a supplier or carrier.
Ro-Ro
Roll-on Roll-off — a vessel designed so that wheeled cargo can be driven on and off.
R/T
Revenue Tons — freight charge basis; whichever is greater between cargo weight (MT) and volume (CBM).
S
SKU
Stock Keeping Unit — a unique code identifying a specific product in inventory.
SME
Small and Medium-size Enterprises — businesses below a defined size threshold.
S/O
Shipping Order — an instruction from a shipper to a carrier to receive cargo for a specific voyage.
S/I
Shipping Instructions — detailed instructions from the shipper regarding how cargo should be handled and documented.
S.O.C.
Shipper's Own Container — a container owned by the exporter rather than the shipping line.
S/S
Steamship — a vessel; now used as a general term for ocean-going vessels.
S.T.C.
Said To Contain — a qualification on a B/L indicating the carrier has not verified the contents.
T
TEU
Twenty-foot Equivalent Unit — the standard unit for measuring container capacity (one 20-foot container = 1 TEU).
T.H.C.
Terminal Handling Charge — fees charged by a terminal for handling containers at the port.
TMS
Transportation Management System — software for planning, executing, and optimising freight movements.
TOFC
Trailer-On-Flatcar — intermodal transport of truck trailers on railway flatcars.
T.T.
Telegraphic Transfer — an electronic method of transferring funds between banks; common in trade payments.
TVC
Time Volume Contract — a contract between a shipper and carrier guaranteeing volume in exchange for fixed rates.
U
UCP
Uniform Customs and Practice for Documentary Credits (UCP 600) — ICC rules governing Letters of Credit.
ULCC
Ultra Large Crude Carrier — the largest category of oil tanker.
UNCTAD
United Nations Conference on Trade and Development — the UN body promoting trade and development.
V
V.A.T.
Value Added Tax — a consumption tax applied at each stage of production and distribution.
VLCC
Very Large Crude Carrier — a large oil tanker, smaller than ULCC.
VMI
Vendor Managed Inventory — the supplier manages the buyer's stock levels directly.
VOC
Vessel Operating Carrier — a carrier that actually operates ships (as opposed to NVOCC).
VSL
Vessel — shorthand for a ship.
W
WMS
Warehouse Management System — software for managing warehouse operations and inventory.
W.R.
War Risks — insurance covering losses caused by war, strikes, and related events.
WTO
World Trade Organization — the international body that governs global trade rules.
W.W.
Warehouse Warrant — a document issued by a warehouse certifying that specified goods are held in storage.
Y
YAS
Yen Appreciation Surcharge — a surcharge on Japan-related trade lanes when the Yen strengthens significantly.
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