FreightAmigo Academy – Shipping Terms

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There are currently 56 terms in this directory beginning with the letter D.
Damco Consolidation Containers (DCC)
LCL product containers where Damco acts as the consolidator/ co-loader on behalf of customers. Damco offers a DCC service from – to key origins/ destinations.

Damco Project Management Methodology (DPMM)
A methodology that explains how to initiate, plan, execute and close projects successfully.

Dangerous Cargo Service
This fee covers the additional costs incurred by the carrier in the movement of Dangerous cargo from or to an inland location. Additional costs consist of licenses, permits, and the carrier has to use specialized vendors with certifications that cost more. This fee will be applicable to dangerous bookings where carrier inland haulage (export or import) has been requested by the customer.

Dangerous Goods (DG)
Substances which can pose a significant risk to health and therefore, require special handling and documentation depending on substance classification, mode and regulatory regime. Rule and guidance for DG shipments by air are produced by ICAO (International Civil Aviation Organization) and IATA (International Air Transport Association), for maritime shipments these regulations are produced by the IMO (International Maritime Organization). The most widely applied regulatory scheme is that for the transportation of dangerous goods. The United Nations Economic and Social Council issues the UN Recommendations on the Transport of Dangerous Goods, which form the basis for most regional, national, and international regulatory schemes. We have experts with DG knowledge and training who should be consulted when developing proposals to customers with DG requirements.

Dangerous Goods Declaration (DGD)
Statement of hazordous goods content issues by shipper

Days Payable Outstanding (DPO)
Efficiency ratio that measures the average number of days a company takes to pay its suppliers.

Days Sales Outstanding (DSO)
Calculation used by a company to estimate their average collection period

Declared Value Coverage
Declared value coverage is a form of cargo damage/loss coverage that raises the carrier’s financial liability so that it matches the declared value of the cargo. Declared value coverage is not cargo insurance. Declared value coverage is limited to the period of time when the cargo is in possession of a single carrier, and it only kicks in if damage or loss occurred due to the carrier’s negligence. It is the responsibility of the shipper to prove that the carrier was negligent.

Deconsolidation
Deconsolidation is the act of separating out LCL shipments to prepare them for final delivery. LCL shipments are consolidated into a container at origin, and deconsolidated at destination. Consolidation and deconsolidation is done at a CFS.

Deferment Fee
This is the cost for having your freight forwarder/customs broker pay the Duty and VAT to the customs authorities on your behalf, before billing it to you directly. It is often calculated as a percentage of the amount of Duty and VAT paid.

Deferment or Postponed VAT Accounting
A foreign entity can appoint a tax representative in the import country to represent their business with the Tax and Customs Administrations.

Delivered-at-place (DAP)
An international trade term used to describe a deal in which a seller agrees to pay all costs and suffer any potential losses of moving goods sold to a specific location.

Delivery
1. The physical and legal transfer of a shipment from consignor to carrier and from carrier/ transport agent to consignee. 2. The act of putting property into the legal possession of another, whether involving the actual transfer of the physical control of the object from one to the other or being constructively effected in various other ways.

Delivery Duty Paid (DDP)
A delivery agreement whereby the seller assumes all of the responsibility, risk, and costs associated with transporting goods until the buyer receives or transfers them at the destination port.

Delivery Labor Fee
A delivery labor fee is a fee assessed by the trucker if the trucker has to help unload cargo at the warehouse or other destination.

Delivery Order
A delivery order (DO) is the document that sends to the trucker with the pickup and delivery details of the shipment. The DO includes special instructions, like that the trucker needs to supply a liftgate, or that the trucker will need to do a drop at the delivery location.

Demand Chain
Another name for supply chain, with emphasis on the customer or party controlling demand.

Demurrage
Demurrage is the fee assessed by the terminal if your cargo remains at port after the Last Free Day. How much will I be charged for demurrage? Demurrage is charged per container, per day, until the cargo is picked up. The specific charges will vary depending on the port and terminal, but they can be steep, especially when combined with per diem/detention fees — anywhere from $75 - $200 per container, per day, is typical. Some terminals will increase the daily fee amount after a certain number of days.

Depth
The depth of the ship is taken as the distance between the undersides of the deck amid ship to the bottom of the keel.

Destination Interchange Terminal (DIT)
Facility operated by the ocean carrier or his agent at which containers are interchanged with the delivering motor carrier.

Detention
Detention, also known as per diem, is a fee charged for the extra days a container is away from port.

Detention Fee - Export
This fee is applicable when the customer holds carrier equipment longer than the agreed amount of free time. Export: Detention days are counted from pick-up empty to gate-in full minus free days. This fee is applicable to all containers that remain in the customer’s possession longer than the agreed free time. Not applicable for shipper owned containers.

Detention Fee - Import
This fee is applicable when the customer holds carrier equipment longer than the agreed free time. Import: Detention days are counted from gate-out full to gate-in empty minus free days.* This fee is applicable to all containers that remain in the customer’s possession longer than the agreed free time.

Detention in Transit Service
The carrier has the ability to hold shipments at transhipment ports until further instructions are received from the customer. This gives the customers the flexibility to delay the cargo arrival, when it assists them in their business. Note: the carrier is unable to hold containers longer than 14 days unless the customer submits a written letter of indemnity to the carrier which states that the carrier will not be liable for any cargo damage not covered by Insurance during the extra detention period. The DIT charge is applicable based on the request by the customer and subject to the carrier’s acceptance.

Devanning
Devanning is the act of unloading cargo from a container. An FCL shipment will be devanned at a warehouse destination. An LCL (Less than Container Load) will be devanned (or deconsolidated) at a CFS (Container Freight Station) destination.

Differential
Amount added or deducted from base rate to create a rate to or from some other point or via another route.

Dimension
The size of the parcel/shipment

Direct or Indirect Customs Representation
In case of direct representation, a customs agent lodges a declaration in the name of and on behalf of the stakeholder. The stakeholder is the declarant and, as such, responsible for the declaration. In the EU the basis for this kind of representation is Article 18 UCC. In case of indirect representation, a customs agent lodges a declaration in his or her own name but on behalf of a stakeholder. A customs agent who acts as an indirect representative is the declarant and, as such, responsible for the content of the declaration. Indirect representation is particularly intended for situations where the stakeholder is established outside the import country. In that case, he/she will not be able to act as a declarant himself. In the EU the basis for this kind of representation is Article 18 UCC.

Direct to Consumer (D2C)
Customers selling through their webstore (URL) directly to the end Consumer. As part of the omni-channel strategy for most Brands, they want to sell through their own website to help provide a seamless experience to its most loyal as well as new customers

Direktförtullning (DNK)
Swedish customs clearance term

Disbursement Service Fee
A disbursement fee is charged to clients who do not pay duties and taxes directly to customs, or other government authorities, and request that FreightAmigo does so on their behalf.

Discharge Port
Discharge Port is a port where cargo is unloaded from the vessel.

Distribution
The full range of activities and planning required to move a product from the production line to the end-user.

Distribution Center (DC)
Used interchangeably with Warehouse. A traditional warehouse only stores inventory (typically on a long-term basis), where a distribution center is a facility that briefly stores inventory until orders get fulfilled and then sent to their next or final destination.

Distribution Requirements Planning
A system of determining demand for an inventory at distribution centres, consolidating the demand information backwards, and acting as input to the production and material system.

Distributor
Intermediary entity between the producer of a product and another entity in the distribution channel or supply chain, such as a retailer, a value-added reseller (VAR) or system integrator (SI). The distributor performs some of the same functions that a wholesaler does but generally takes a more active role

Diversion Charge
Fee for diverting cargo from original intended destination port to a new location.

Dock Receipt
Receipt given for a shipment received or delivered at a pier or dock. When delivery of a foreign shipment is completed, the dock receipt is exchanged for a bill of lading with the transportation line.

Door-to-Door
Shipping term denoting shipping services from the shipper’s door to the consignee’s door.

Double Blind Shipment
A double blind shipment is when the shipper is unaware of where a shipment will be delivered to and the consignee is unaware of where the shipment is coming from. This is a type of blind shipment in which the shipper sends a shipment without knowing the ultimate destination and the consignee accepts the shipment without knowing the origin location. A reason to ship double blind is to protect the identity of the consignee and the shipper or supplier. Shipping double blind prevents the shipper from obtaining the consignee’s contact information.

Double Stack Car
Rail car capable of carrying two containers stacked on top of each other.

Download request (DLR )
A request to retrieve and verify the data logger information in a Reefer container. This can be done either via Remote Container Management (RCM) or through manual download by reefer technicians in the port. The data-logger information is taken from controller of the container, containing data like temperature settings, supply/return air, humidity etc.

Draft
Marine: The depth to which a vessel's deepest point is under water. Rail: A cut of coupled cars. Financial: A signed, written order by one party that instructs another party to pay a third party a specific amount. It can also be called a bill of exchange.

Drawback
Drawback is a refund of the Customs duties and certain fees paid on imported merchandise as well as the refund of certain very specific Internal Revenue taxes. Customs issues these refunds only when the imported merchandise is either exported or destroyed and when a claim for drawback has been made. Drawback laws allow drawback claimants to file drawback claims for imports five years from the date the merchandise is imported or entered into the United States. A claim for drawback may not be filed prior to the date of exportation.

Drayage
Drayage is the transportation of a full ocean container via truck. A full container will be loaded onto a chassis and trucked to a nearby warehouse or rail ramp. Drayage may incur a drayage base fee. If the destination is not local, the full container will need to be transloaded into an FTL.

Drop
A drop is a type of trucking delivery for FCL shipments where the trucker drops off the container at the warehouse and then leaves, instead of waiting while the container is unloaded. The trucker will charge a drop fee because it requires an extra trip.

Drop and Pick
A drop and pick (also known as a drop and hook) is a trucking delivery option for high-volume FCL. A drop is when a truck driver drops off the container at the warehouse and then leaves (instead of waiting while it’s unloaded, as in a live unload). After the container has been unloaded, the driver returns to pick up the empty container (usually within 48 hours). A drop and pick is when the truck driver drops off the container at the warehouse and then picks up a different, empty container before leaving. A drop and pick is less expensive than a drop or a live unload; however, it’s only possible if you have containers arriving every few days.

Drop Fee
A drop fee is charged by the trucker to drop off an FCL container at the warehouse and pick it up after it has been unloaded, as opposed to a live unload. A drop fee is also called a bobtail fee.

Drop-shipping
A fulfilment method where a store doesn't keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third party and has it shipped directly to the customer. As a result, the merchant never sees or handles the product

Dry Dock
Used to lay up vessels for repair.

Dry Run
A dry run is when a trucker is not able to successfully complete the pickup or delivery of a shipment. The trucker will charge full price for the extra trip.

Dry Van Shipping
Dry van shipping is any shipping done in a trailer that is not a temperature-controlled trailer or a flatbed trailer. Dry van trailers can carry pallets or loose cartons, and can be unloaded by a forklift or with the assistance of a liftgate.

Dunnage
Material used around cargo to prevent breakage or shifting, normally provided by shipper. Its weight is included in the rating.

Duty
A duty is an indirect tax on the value of an imported or exported product. Duty assessed on an imported product’s value is referred to as an import duty, while a duty assessed on an exported product is referred to as an export duty. Duties are imposed on both goods that are imported, customs duties, and goods manufactured locally, excise tax. It is important to note that a duty is separate from other fees that are assessed against cargo to pay for government services. This includes: entry processing fees, reimbursable government services or fines, penalties or liquidated damages for a documentary error, and any violations of customs regulations. The government bases the amount of duties to be paid on the value, weight, dimensions, etc. of the imported goods. Duties can vary by product and country of origin. Different types of duties include: -Basic Duty -Countervailing Duties -Anti-dumping duty

Duty Drawback
Duty drawback, or Drawback, is an export incentive program that allows U.S. importers, exporters, and manufacturers to recover, in part or in whole, certain duties, taxes, and fees paid on imported merchandise or domestically produced flavoring extracts, medicinal or toilet preparations, bottled distilled spirits and wines

Dynamic Under-Keel Clearance (DUKC)
A method of using multiple prediction and real time factors to determine the draft limitations on ships.