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INDUSTRY TERMS

Here is a list of various industry terms for your convenience.


  • A.I.D.

    Agency for International Development.

  • A.T.A.

    American Trucking Association.

  • AA

    Always Afloat (In some ports the ship aground when approaching, or at berth.)

  • AAR

    Abbreviation for:- Against All Risks (insurance clause). – Association of American Railroads.

  • Abaft

    A point beyond the midpoint of a ships length, towards the rear or stern

  • B/L

    Abbreviation for “Bill of Lading.”

  • Backhaul

    To haul a shipment back over part of a route it has traveled.

  • BAF

    Abbreviation for “Bunker Adjustment Factor.” Used to compensate steamship lines for fluctuating fuel costs. Sometimes called “Fuel Adjustment Factor” or FAF.

  • Balloon Freight

    Light, bulky articles.

  • C&F Terms of Sale, or INCOTERMS.

    Obsolete, albeit heavily used, term of sale meaning “cargo and freight” whereby Seller pays for cost of goods and freight charges up to destination port. In July, 1990 the International Chamber of Commerce replaced C&F with CFR.

  • Cabotage

    Water transportation term applicable to shipments between ports of a nation; commonly refers to coast-wise or inter-coastal navigation or trade. Many nations, including the United States, have cabotage laws which require national flag vessels to provide domestic interport service.

  • CAF

    Abbreviation for “Currency Adjustment Factor.” A charge, expressed as a percentage of a base rate, that is applied to compensate ocean carriers of currency fluctuations.

  • Captain’s Protest

    A document prepared by the captain of a vessel on arriving at port; shows conditions encountered during voyage, generally for the purpose of relieving ship owner of any loss to cargo and shifting responsibility for reimbursement to the insurance company.

  • D&H

    Abbreviation for “Dangerous and Hazardous” cargo.

  • D.B.A.

    Abbreviation for “Doing Business As.” A legal term for conducting business under a registered na

  • D.O.T.

    Department of Transportation.

  • E.C.M.C.A.

    Eastern Central Motor Carriers Association.

  • E.W.I.B.

    Eastern Weighing and Inspection Bureau.

  • Edge Protector

    An angle piece fitted over the edge of boxes, crates, bundles and other packages to prevent the pressure from metal bands or other types from cutting into the package.

  • EDI

    Abbreviation for “Electronic Data Interface.” Generic term for transmission of transactional data between computer systems. EDI is typically via a batched transmission, usually conforming to consistent standards.

  • EDIFACT

    International data interchange standards sponsored by the United Nations. See UN/EDIFACT.

  • Elevating

    charges assessed for the handling of grain through grain elevators.

  • Elkins Act

    An act of Congress (1903) prohibiting rebates, concession, misbilling, etc. and providing specific penalties for such violations.

  • Embargo

    Order to restrict the hauling of freight.

  • Eminent Domain

    The sovereign power to take property for a necessary public use, with reasonable compensation.

  • Empty Repo

    Contraction for Empty Repositioning. The movement of empty containers.

  • Endorsement

    A legal signature usually placed on the reverse of a draft; signifies transfer of rights from the holder to another party.

  • Entry

    Customs documents required to clear an import shipment for entry into the general commerce of a country.

  • Equalization

    A monetary allowance to the customer for picking up or delivering at a point other than the destination shown on the bill of lading. This provision is covered by tariff publication.

  • Equipment Interchange Receipt (EIR)

    A document transferring a container from one carrier to another, or to/from a terminal.

  • ETA

    Estimated time of arrival.

  • Ethylene

    A gas produced by many fruits and vegetables that accelerates the ripening and aging processes.

  • Ex – “From”

    When used in pricing terms such as “Ex Factory” or “Ex Dock,” it signifies that the price quoted applies only at the point of origin indicated.

  • Ex Dec

    Contraction for “Shipper’s Export Declaration.”

  • Exception

    Notations made when the cargo is received at the carrier’s terminal or loaded aboard a vessel. They show any irregularities in packaging or actual or suspected damage to the cargo. Exceptions are then noted on the bill of lading.

  • EXIM Bank

    Abbreviation for Export-Import Bank of the United States. An independent U.S. Government Agency which facilitates exports of U.S. goods by providing loan guarantees and insurance for repayment of bank-provided export credit.

  • Expiry Date

    Issued in connection with documents such as letters of credit, tariffs etc. to advise that stated provisions will expire at a certain time.

  • Export

    Shipment of goods to a foreign country.

  • Export Declaration

    A government document declaring designated goods to be shipped out of the country. To be completed by the exporter and filed with the U.S. Government.

  • Export License

    A government document which permits the “Licensee” to engage in the export of designated goods to certain destinations.

  • Export Rate

    A rate published on traffic moving from an interior point to a port for transshipment to a foreign country.

  • F.D.A.

    Food and Drug Administration.

  • F.P.A.

    See “Free of Particular Average.”

  • Factor

    A factor is an agent who will, at a discount (usually five to 8% of the gross), buy receivables.

  • FAK

    Abbreviation for “Freight All Kinds.” Usually refers to full container loads of mixed shipments.

  • False Billing

    Misrepresenting freight or weight on shipping documents.

  • FAS

    Abbreviation for “Free Alongside Ship.”

  • FCL

    Abbreviation for “Full Container Load.”

  • FD

    Abbreviation for “Free Discharge.”

  • Feeder Service

    Cargo to/from regional ports are transferred to/from a central hub port for a long-haul ocean voyage.

  • Feeder Vessel

    A short-sea vessel which transfers cargo between a central “hub” port and smaller “spoke” ports.

  • FEU

    Abbreviation for “Forty-Foot Equivalent Units.” Refers to container size standard of forty feet. Two twenty-foot containers or TEU’s equal one FEU.

  • Fifth Wheel

    The semi-circular steel coupling device mounted on a tractor which engages and locks with a chassis semi-trailer.

  • FIO

    See Free In and Out.

  • Firkin

    A capacity measurement equal to one-fourth of a barrel.

  • Fixed Costs

    Costs that do not vary with the level of activity. Some fixed costs continue even if no cargo is carried. Terminal leases, rent and property taxes are fixed costs.

  • Flat Car

    A rail car without a roof and walls.

  • Flat Rack/Flat Bed Container

    A container with no sides and frame members at the front and rear. Container can be loaded from the sides and top.

  • FMC (F.M.C.)

    Federal Maritime Commission. The U.S. Governmental regulatory body responsible for administering maritime affairs including the tariff system, Freight Forwarder Licensing, enforcing the conditions of the Shipping Act and approving conference or other carrier agreements.

  • FOB

    See Free On Board. See also Terms of Sale, FOB.

  • FOB Freight Allowed

    the same as FOB named inland carrier, except the buyer pays the transportation charge and the seller reduces the invoice by A like amount.

  • FOB Freight Prepaid

    the same as FOB named inland carrier, except the seller pays the Freight charges of the inland carrier.

  • FOB named point of Exportation

    seller is responsible FOR the cost of placing the goods at A named point of exportation. Some European buyers use This Form when they actually mean FOB vessel.

  • FOB vessel

    seller is responsible FOR goods and preparation of export documentation until actually placed aboard the vessel.

  • FOR

    Abbreviation for “Free on Rail.”

  • Force Majeure

    The title of a common clause in contracts, exempting the parties for non-fulfillment of their obligations as a result of conditions beyond their control, such as earthquakes, floods or war.

  • Fore and Aft

    The direction on a vessel parallel to the center line.

  • Foreign Sales Corporation

    Under U.S. tax law, a corporation created to obtain tax exemption on part of the earnings of U.S. products in foreign markets. Must be set-up as a foreign corporation with an office outside the USA.

  • Foreign Trade Zone

    A free port in a country divorced from Customs authority but under government control. Merchandise, except that which is prohibited, may be stored in the zone without being subject to import duty regulations.

  • Fork Lift

    A machine used to pick up and move goods loaded on pallets or skids.

  • Forwarder Compensation

    See Brokerage.