FreightAmigo Academy – Shipping Terms

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There are currently 109 terms in this directory beginning with the letter C.
Cabotage
Trade or transport in coastal waters or between two ports/points within a country especially by parties other than domestic carriers. Many countries, such as the USA, have laws requiring domestic-owned vessels to perform domestic interport water transportation services.

CAIN (Customs Assigned Importer Number)
A CAIN is a Customs Assigned Importer Number. If an importer is importing into the U.S. as a foreign importer of record and they do not have an EIN Foreign importers of record importing into the U.S. without an EIN will need a CAIN.

Cargo Bays
Doors in a warehouse where vehicles back up to load/unload cargo.

Cargo Declaration Amendment Fee (CAM)
A fee that covers re-submission of necessary information required by Customs due to an amendment request that is made by the customer after the carrier has submitted the documentation to local customs authorities. Import countries where this is applicable: - European Union - Norway - Switzerland - United States - Canada - Puerto Rico - Mexico

Cargo Insurance
Cargo insurance is coverage for your shipment from pickup to delivery, across multiple carriers and modes. It covers the purchase value (not retail value) of your goods, as well as freight and other costs associated with the cargo.

Cargo Manifest
(Shipment) A list of a ship’s cargo or passengers, but without a listing of charges.

Cargo Ready Date (CRD)
The cargo ready date (CRD) is the day the cargo is expected to be available at the supplier or other named location (a warehouse, an airport terminal, or a container yard).

Carriage of Goods By Sea Act (COGSA)
A United States statute governing the rights and responsibilities between shippers of cargo and ship-owners regarding ocean shipments to and from the United States.

Carrier
A freight carrier is the company or individual that transports the cargo from one location to another. A carrier may be a VOCC (Vessel Operating Common Carrier) or an NVOCC (Non-Vessel Operating Common Carrier). “Ocean carrier” generally refers to VOCCs, who own and operate ocean vessels.

Carrier bill of Lading (CBL)
Bill issued by the carrierline

Carrier's Certificate
A release order used to advise customs of the details of the shipment, its ownership, port of lading, etc. By means of this document the carrier certifies that the firm or individual named in the certificate is the owner or consignee of the cargo. A U.S. Customs form used in lieu of a bill of lading.

Cartage
Cartage is the transportation of cargo to and from a CFS via truck within a local area. If the destination is not local, an LTL trucker will deliver the shipment to its final destination.

Cash flow return on investment (CFROI)
Return on financial investment measured in cash flow

Cash on Delivery (COD)
Cash on delivery (COD), sometimes called collect on delivery, is the sale of goods by mail order where payment is made on delivery rather than in advance. If the goods are not paid for, they are returned to the retailer/Fulfilment Centre

CBM (Cubic Meter)
CBM (cubic meter) is a measurement of volume one meter wide by one meter long by one meter high. CBM is used to calculate chargeable weight.

CBP (Customs and Border Protection)
CBP will examine a shipment's import documents and select shipments for examination. CBP (U.S. Customs and Border Protection) is an agency of the United States Department of Homeland Security, formed in 2003, that regulates international travel and trade into the U.S. CBP examines import paperwork like commercial invoices and packing lists, collects import duties, and performs customs exams.

CDS | Customs Declaration Service
CDS - Customs Declaration Service (CDS) is the UK government’s new electronic system for handling customs declaration processes.

Cell
Container slot where container fits into place on vessel.

Certificate of free sales (CFS)
A document issued by a government entity on behalf of an exporter stating that specified goods comply with the laws of the exporting country for distribution in that country’s commerce. A certificate of free sale provides assurance to the country of import that the imported goods meet the country of export state, provincial and national requirements for sale. Certificates of free sale are typically issued for food products, dietary supplements, drugs, cosmetics and medical devices.

Certificate of Origin
Document issued by a certifying authority stating the country of origin. A certificate origin can be the key document in requesting a special reduced tariff rate for imports from countries listed in programs such as GSP (Generalized System of Preferences) or NAFTA (North American Free Trade Agreement).

CES (Centralized Examination Station)
A CES (Centralized Examination Station) is a privately operated facility designated by CBP for physical examination where imported or exported cargo is made available for a Customs inspection. Shipments selected for a Tail Gate or Intensive exam will be trucked to a CES. The importer is responsible for all costs associated with a Customs exam, including trucking to and from the CES, the CES fee, storage, etc.

CFS (Container Freight Station)
A container freight station is a warehouse that specializes in the consolidation and deconsolidation of cargo. A CFS will charge a fee.

CFS (Container Freight Station) Cut-off
A CFS cut-off is the date by which an LCL (Less than Container Load) shipment needs to be checked in to a CFS (Container Freight Station) to meet its scheduled sailing. LCL shipments will be consolidated into a container at a CFS before being loaded onto the vessel. If an LCL shipment is not delivered to the CFS by the cut-off date, the shipment will not meet its scheduled sailing. The cut-off date is usually five days before the scheduled sailing, but this varies per CFS. LCL shipments need to be consolidated in a container and delivered to the CY before the CY cut-off date.

CFS (Container Freight Station) Fee
A container freight station fee is assessed for LCL shipments. After arriving at the destination port, LCL cargo is taken to a container freight station (CFS) to be deconsolidated; after that, it’s loaded into a truck and transported to the final destination. The CFS charges a fee for this deconsolidation service, based on the volume of the cargo. If you are shipping LCL and your incoterms include origin charges (e.g., Ex Works), you will also see a container freight station fee under Origin Charges on your FreightAmigo quote/invoice. This fee covers the CFS service at the point of origin, when the cargo is consolidated to prepare for shipment.

Change of Destination (COD )
Customer initiated request for a change of the port of discharge. COD happens when a shipment has been received and gated-in at origin port of loading but prior to arrival at final port of discharge.

Chassis
A chassis is a special trailer or undercarriage used to transport ocean containers over the road. A chassis will be necessary for a shipment traveling by truck and will incur a chassis fee. A tri-axle chassis will be used for overweight FCL shipments traveling by truck. Generally, a tri-axle chassis is required for a 20’ container above 36,000 lbs, or a 40’ container above 44,000 lbs.

Chassis Fee
A chassis fee is assessed if your shipment is traveling by truck (e.g., after your cargo arrives at an ocean port, if it’s being transported via truck to a warehouse). For FCL shipments, this is a flat fee which varies by trucker. For LCL shipments, the fee is calculated based on the volume of the cargo.

Chassis Pool
A chassis pool is a location where chassis are stored and available for rental. There are two types of chassis pools: Neutral Chassis Pool A neutral chassis pool consists of third-party owned chassis that are available to ocean carriers and truckers for rental. Co-op Chassis Pool A co-op chassis pool consists of ocean carrier–owned chassis that are pooled together to reduce costs.

Chassis Split
A chassis split is when the container is not located in the same place as the chassis. In this case, the trucking company may assess a chassis split fee to cover the costs of bringing the chassis to the container location.

CHED | Common Health Entry Document
CHED - Common Health Entry Document - CHED’s are the common health entry documents for consignments of plants, plant products, foods and animal products. These documents are required to clear the types of goods stated above and are submitted via TRACES.

CHIEF
CHIEF - Customs Handling of Import and Export Freight The UK Customs Handling of Import and Export Freight (CHIEF) system records the movement of goods by land, air and sea. It allows importers, exporters and freight forwarders to complete customs formalities electronically and automatically checks for entry errors.

Chinese New Year (CNY)
Chinese New Year (CNY), also known as the Lunar New Year or Spring Festival, is the biggest Chinese celebration of the year. Factories will be closed for the entire week of CNY, because most factory workers will travel a long way to spend the holiday with their families, so there will be additional closings, delays, and disruptions occurring in the weeks before and after CNY. Factories are closed and/or operating at diminished capacity for at least 4 weeks.

CITES | Convention on International Trade in Endangered Species of Wild Fauna and Flora
CITES is an international agreement between governments. Its aim is to ensure that international trade in specimens of wild animals and plants does not threaten the survival of the species. If you want to import any species of animal or plant that falls under CITES you will require a special permit.

Claim Tracer
Request for advice concerning the status of a claim.

Clean On Board
A clause inserted in the bill of lading by some shipping/transportation companies, stating that they have not noted or are not familiar with any irregularities or discrepancies in the packing or in the general condition of any part of the goods or its description.

Clean Truck Fee
A clean truck fee is assessed by the ports of Los Angeles and Long Beach as part of the Clear Air Action Plan in an effort to reduce air pollution.

Client Access Licence (CAL)
A software licence distributed by software companies to allow clients to connect to its server software and use the software's services.

Co-Loader
A co-loader is a third party who consolidates the cargo of two or more LCL shipments in a container before handing it over to an ocean carrier.

Codabar
Codabar is a variable length barcode that can encode 16 data characters including 0-9, plus the symbols - $ ; / . +. Codabar is used primarily for numeric data.

Code 128
Code 128 is a variable length barcode capable of encoding the entire 128 character ASCII character set. Code 128 allows three subsets, A, B and C. Code 128A allows all standard upper case alpha-numeric keyboard characters plus control characters. Code 128B allows all standard upper case alpha-numeric keyboard characters and lower case alpha characters. Code 128C includes a set of 100 digit pairs from 00 to 99 inclusive. This allows double density numeric digits, two digits per barcoded character. Furthermore, Code 128 Auto automatically selects the subset that will produce the smallest barcode.

Code 3 of 9
This barcode is an alphanumeric barcode allowing upper case letters and numbers. Each character consists of nine elements. 3 of the nine elements are wide, hence the name "3 of 9". Extended 3 of 9 allows the full 128 ASCII character set to be encoded by printing two barcode characters for each text character.

Code 93
Code 93 is an alpha-numeric barcode allowing upper case letters and numbers. BarCode/VBX will convert lower case letters to upper case before encoding them. Extended Code 93 allows the full 128 character ASCII character set to be encoded.

Collapsible Flat Rack Container (COFL)
Container type

Combined Transport Bill of Lading
Provides a combined transport by at least two different modes of transportation from a place from which the goods are taken to a place designated for delivery.

Commerce Control List (CCL)
The Commerce Control List (CCL) is a list of categories and product groups used to help determine if an export license is needed for U.S. exports.

Commercial Invoice
A commercial invoice is a document used for customs declaration that identifies the value and quantity of the shipped products.

Commodity
A specification of goods/product types, e.g. toys, electronics or welding machinery.

Common Carrier
A common carrier is a company that offers service to the general public and accepts cargo subject to its available capacity. Common carriers charge a specified rate and are responsible for any loss of goods during transport. Common carriers differ from private carriers in that private carriers may refuse the right to sell their services at their own discretion and only transport their own goods. Common carriers are required to treat all customers equally.

Common Point
Point reached by two or more transportation lines.

Common Tariff
Tariff published by or for the account of two or more transportation lines as issuing carriers.

Communications & Exceptions (C&E)
A web application developed in order to facilitate direct online communication between Damco origins offices and our clients. An exception management tool where each exception is captured/reported as it occurs.

Company Guarantee
A letter of guarantee from a company indemnifying the carrier of responsibility associated with the release of goods in lieu of a bill of lading.

Compliance Assessment
A compliance assessment is an analysis or audit of a company’s customs transactions.

Conference
Defined in the 1984 Shipping Act as: ... an association of ocean common carriers permitted, pursuant to an approved or effective agreement, to engage in concerted activity and to utilise a common tariff; but the term does not include a joint service, consortium, pooling, sailing or transshipment arrangement. It is basically a group of steamship companies offering equitable freight rates, standardised shipping practices and regularly scheduled services between designated ports. These arrangements are given anti-trust immunity as authorised by the 1984 Shipping Act.

Congestion Surcharge (CON)
A fee imposed by carriers to customers for shipments through heavily congested ports. The aim is to encourage customers to use alternative ports to ease congestion.

Consignee
The consignee will be named on the bill of lading, and is the party to whom ownership of the goods will transfer at the cargo's destination. A consignee is the party to whom ownership of the goods will transfer when the cargo is released at destination. The ultimate consignee is the party who will be the final recipient of the a shipment. In many cases the consignee is the same party as the ultimate consignee. A U.S. business will need to act as the ultimate consignee for a foreign importer.

Consignor
The individual, company or entity that ships goods, or gives goods to another for care. The consignor is usually the exporter or his agent.

Consolidation
Consolidation is the act of combining LCL shipments into a truck or container.

Consular Invoice
Document required by some foreign countries, showing exact information as to consignor, consignee, value description etc. for a shipment.

Container
A container is a steel receptacle used to transport ocean and rail shipments. The modern container was invented in the 1950s by Malcolm P. McLean, who owned a steamship company and wanted to be able to lift a container from a vehicle directly on to a ship without first having to unload its contents. The incoterm FCA should be used for containerized shipments, instead of the pre-container era incoterm FOB. Common container sizes include 20,’ 40,’ 40’ High Cube, and 45’ High Cube.

Container Cleaning Fee (CCL)
This fee covers the additional costs for extra or special cleaning and is applicable when the container does not meet the standard cleanliness criteria (inside and outside) upon empty return from the customer. This service of additional cleaning of the container may also be triggered by a customer request. This charge is not applicable to shipper-owned containers.

Container Depot / Container Yard (CD/CY)
A storage area, where shippers and consignees may pick up or drop off empty containers. A container depot may not be owned or controlled by a shipper or its agent and may not receive loaded containers.

Container Freight Station (CFS)
A facility where freight shipments are consolidated or de-consolidated and staged between transport legs. A CFS is typically located in proximity to an ocean, port, or airport, where cargo containers are transported to and from.

Container Load Plan (CLP)
A report showing the orders planned to be loaded per container.

Container Load Result (CLR)
A report showing the actual orders loaded in a container.

Container on Flat Car (COFC)
Rail service whereby a container is loaded onto a flat car without chassis, bogies or wheels.

Container Seals
Container seals, or seals for short, are 'one-time door locks' used to secure goods containers. Each seal-lock can be used only once. Seals are numbered for record and security purposes, minimize the risk of unauthorized access and manipulation to the container contents. After a container is stuffed, the seal must be applied and the number documented. Heavy-duty container seals are designed to withstand natural elements and last the entire voyage of the container until it is removed by the customer at the destination. Unbroken seal can be a proof of integrity.

Container Service Charge
The charge assessed by the terminal for the positioning of containers within the terminal/yard.

Container Stuffing List (CSL)
List showing how cargo is stowed in each container.

Container Yard (CY)
A container yard (CY) is a physical facility from which ocean carriers accept and deliver ocean containers, as well as issue and receive back empty containers. Ocean sailings typically have a CY cut-off date by which the container must be delivered in order to be loaded onto the scheduled sailing.

Continuous Customs Bond
A customs bond is a form of insurance to protect the U.S. Treasury in the event an importer fails to pay the duties, taxes, and fines or fees incurred on their imports. Customs bonds are purchased from government-licensed surety companies (financial entities that specialize in these types of bonds).

Continuous Flow Distribution (CFD)
The streamline pull of products in response to customer requirements while minimising the cost of distribution.

Continuous Replenishment Program (CRP)
A program that triggers the manufacturing and movement of a product through the supply chain when the identical product is purchased by an end user.

Contract Carrier
For-hire interstate operators which offer transportation services to certain shippers under contracts.

Contract Logistics (CL)
Mainly a concept of warehousing or other larger contract based agreements.

Contract of Carriage
A contract of carriage is a negotiated contract not subject to a tariff that is between the carrier and shipper for the transportation of cargo. The written contract between a shipper and carrier sets forth the terms, conditions, and obligations of each party with respect to the carriage of the particular goods. Contracted carriers may choose if and when to provide service. Common types of contracts of carriage include the following: -Bill of Lading -Sea waybill -Air waybill -Charter party

Contribution Margin (CM)
1. CM1 = Revenue minus variable & fixed costs 2. CM2 = Revenue minus variable costs

Control
A unit cost saving that was not included in the original budget

Core Competency
A company's primary function considered essential to its success.

Cost and Freight (CFR/CNF/C&F)
A legal term used in contracts for international trade that specifies that the seller of the goods is required to arrange for the carriage of goods by sea to a port of destination and provide the buyer with the documents necessary to obtain the items from the carrier.

Cost of Poor Quality (COPQ)
The costs incurred due to re-work caused by errors. Also includes the cost of lost opportunity due to lack of resources.

Cost, Assurance and Freight (CAF)
Also known as Currency Adjustment Factor. Used to adjust ocean freight due to currency fluctuations.

Countervailing Duties
Countervailing duties (CVD) are duties intended to protect the U.S. manufacturing industry from foreign goods made cheap by subsidies and tax benefits from foreign governments.

Country of Origin
This is the location where your goods are manufactured or produced. While the country of origin might be straightforward in the production of a simple product, rules of origin are used to determine the country of origin for trade purposes, and differ from country to country.

Critical Success Factor (CSF)
Something that must happen if an IT service/process/plan/project or other activity is to succeed.

Critical to Customer (CTC)
The critical customer requirements for a project.

Critical to Quality (CTQ)
The internal critical quality parameters that relate to what's important to the quality of the process or service to ensure that the product/process or service meets the wants and needs of the customer.

Cross Trade (CT)
Shipment from one country to another where business is not controlled

Cross-border E-Commerce
Cross-border E-Commerce occurs whenever a product is purchased by a customer outside of the merchant's home country

Cross-Docking
Cross-docking is a practice in logistics of unloading materials from a manufacturer or mode of transportation directly to the customer or another mode of transportation, with little or no storage in between.

CTPAT
CTPAT is the Customs Trade Partnership Against Terrorism. It's a security program of U.S. Customs and Border Protection, aimed at strengthening the security of international supply chains. Through CTPAT, CBP works with entities such as freight forwarders, importers, customs brokers, and manufacturers to implement certain security procedures and identify best practices.

Currency Adjustment Factor (CAF)
This is a compensatory cost-sharing measure to remove the carrier's risks associated with currency fluctuations. An overview of CAF calculations can be found here. The charge will apply to all bookings that are taken on these trade lanes. It is applicable primarily, but not limited, to European trades, e.g.: Europe - Far East Europe - Middle East/Red Sea/Indian Sub-Continent US to/from Europe

Customer
The party FreightAmigo is contracted with and paying us for our services

Customer Satisfaction Survey (CSS)
Customer Satisfaction Surveys performed throughout the years to continuously measure how we are performing and how satisfied our customers are with the services we provide. As such, we measure the extent to which – according to our customers – we understand their needs. Customers tell us furthermore how responsive, proactive, cost-competitive, innovative, sustainable, accurate and timely we are, how we handle complaints, how our IT systems perform, what the quality level is of the services we provide, if the scope of our services is broad enough and more.

Customs Bond
Required for goods valued at over $2,500 being imported into the United States, this document is a legal agreement that outlines and verifies that all required importing fees, duties, and taxes have been paid. This is also called an import bond.

Customs Broker
An agent—in some countries powered by a governmental customs agency—who assists importers and exporters in preparing documents for clearing goods through customs.

Customs Clearance
Customs clearance is the governmental authorization necessary for a good to enter or exit the borders of a specific country.

Customs Entries
Consumption Entry Form required by U.S. Customs for importing goods into the United States. The form contains information as to the origin of the cargo, a description of the merchandise and estimated duties applicable to the particular commodity. Estimated duties must be paid at the time the entry is filled. Immediate Delivery Entry is used to expedite clearance of cargo. It allows up to ten days for the payment of estimated duty and processing of the consumption entry. In addition, it permits the delivery of the cargo prior to payment of the estimated duty and then allows for the subsequent filing of the consumption entry and duty. Also known as an ID entry. Immediate Transportation Entry allows the cargo to be moved from the pier to an inland destination via a bonded carrier without the payment of duties or finalisation of the entry at the port of arrival. Known as an IT entry. Transportation and Exportation Entry allows goods coming from or going to a third country, such as Canada or Mexico, to enter the United States for the purpose of transshipment. Known as a T&E entry. Vessel Repair Entry is the law known as the "Foreign Vessel Repair Statute". It provides that when any repairs in a foreign country are made on a vessel documented under the laws of the United States, an ad valorem duty of 50% is imposed on the cost of repair, including labour and labour costs, when the vessel arrives in the United States. All equipment, parts or materials purchased, and repairs made outside the United States must be declared on Customs Form 226 (CF-226) and filed at the port of first arrival within 5 working days.

Customs Entry
Customs entry is a declaration of the kind, amount, and value of goods being taken in or out of a country, for purposes of customs clearance.

Customs Exam
Your shipment may be selected for a customs exam upon import into the U.S..

Customs Exam Fee
A customs exam fee is the fee incurred by the importer if a shipment is pulled for a customs exam. Depending on the type of inspection performed, the fee can run from $80 to more than $1,000. The importer accepts liability for any customs fees incurred on shipments brought into the U.S.

Customs House Broker
Independent broker certified by the U.S. Bureau of Customs to act for importers and businessmen in the handling of customs formalities and other details of importing and exporting goods.

Customs Procedure Codes
Customs Procedure Codes - HMRC uses CPCs to identify the reason for the export or import and therefore the relevant customs regime. The CPC is entered on the declaration at the time of import and export.

Customs Trade Partnership Against Terrorist (CTPAT)
A joint US government-business initiative intended to strengthen overall supply chain and border security.

Cut-Off Time
Last possible time when containers/cargoes may be delivered to a ship or designated point.

CY (Container Yard) Cutoff
A CY cutoff date is the date by which a container must be gated-in (checked-in) at the container yard before its scheduled sailing. CY cutoff dates are determined by the carrier, but are typically 2 days before the scheduled sailing.

Cycle Count
Counting inventory by checking a particular location or set of locations and comparing the physical counts with the system-maintained inventory levels.

Cycle Time
The amount of time it takes to complete a business process. For example, the amount of time from when a service is ordered until it is received by the customer.

Cycle Time Reduction
The process of reducing cycle time, cutting costs and improving customer service.