|
|
|
| ADR |
Agreement on Dangerous Goods by Road |
| Backhaul |
To haul a shipment back over part of a route that it has already traveled; return movement of cargo,
usually opposite from the direction of its primary cargo destination. |
| Backload |
Non revenue-generating load carried by a vehicle during backhaul. |
| Batch Picking |
A method of order selection in which several orders for different customers, or a "batch" of them, are picked together. Generally, a number of selectors work at the same time in different sections of the facility to pick the batch. |
| Bill of Lading |
A document issued by a carrier that records the receipt of goods for shipment and the contract terms. It is not an invoice. |
| Bounded warehouse |
A warehouse authorized by customs authorities for storage of goods on which payment of duties is deferred until the goods are removed.
A Bonded warehouse is a warehouse in which goods on which the duties are unpaid are stored under bond and in the joint custody of the importer, or his agent, and the customs officers. It may be managed by the state or by private enterprise. In the latter case a customs bond must be posted with the government. This system exists in all developed countries of the world. |
| Break bulk |
Loose, non-containerized cargo stowed directly into a ship’s hold; to unload and distribute a portion or all of the contents of a container. |
| Broker |
A person who arranges for transportation of loads for a percentage of the revenue from the load. |
| Bulk vessel |
All vessels designed to carry bulk cargo such as grain, fertilizers, ore, and oil. |
| Business Logistics |
The science of planning, design, and support of business operations of procurement, purchasing, inventory, warehousing, distribution, transportation, customer support, financial and human resources. |
| Cabotage |
Shipments between ports of a single nation, frequently reserved to national flag vessels of that nation. |
| Cargo |
The freight carried by a ship, aircraft, truck or other vessel or vehicle. |
| Carriage of dangerous goods |
Carrying goods by road or rail involves the risk of traffic accidents. If the goods carried are dangerous, there is also the risk of an incident, such as spillage of the goods, leading to hazards such as fire, explosion, chemical burn or environmental damage.
Most goods are not considered sufficiently dangerous to require special precautions during carriage. Some goods, however, have properties which mean they are potentially dangerous if carried.
Dangerous goods are liquid or solid substances and articles containing them, that have been tested and assessed against internationally-agreed criteria - a process called classification - and found to be potentially dangerous (hazardous) when carried. Dangerous goods are assigned to different Classes depending on their predominant hazard.
There are regulations to deal with the carriage of dangerous goods, the purpose of which is to protect everyone either directly involved (such as consignors or carriers), or who might become involved (such as members of the emergency services and public). Regulations place duties upon everyone involved in the carriage of dangerous goods, to ensure that they know what they have to do to minimise the risk of incidents and guarantee an effective response.
Carriage of dangerous goods by road or rail is regulated internationally by agreements and European Directives, with biennial updates of the Directives take account of technological advances. New safety requirements are implemented by Member States via domestic regulations which - for GB - directly reference the technical agreements. |
| Carrier |
Any person or entity who, in a contract of carriage, undertakes to perform or to procure the performance of carriage by sea, inland waterway, rail, road, air, or by a combination of such modes. |
| Case Cube |
The cubic size (usually in cubic feet) of a case computed by multiplying the length times the width times the height of the case (L x W x H). |
| CBM (Cube Meter) |
The cubic size of goods computed by Length x Width X Height in the unit of meter. |
| Central Warehouse |
A warehouse that all goods are gathered at one place and then distribute to different points. |
| CIF - Cost, Insurance and Freight |
"Cost, Insurance and Freight" means that the seller delivers when the goods pass the ship’s rail in the port of shipment.
The seller must pay the costs and freight necessary to bring the goods to the named port of destination BUT the risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time of delivery, are transferred from the seller to the buyer. However, in CIF the seller also has to procure marine insurance against the buyer’s risk of loss of or damage to the goods during the carriage.
Consequently, the seller contracts for insurance and pays the insurance premium. The buyer should note that under the CIF term the seller is required to obtain insurance only on minimum cover. Should the buyer wish to have the protection of greater cover, he would either need to agree as much expressly with the seller or to make his own extra insurance arrangements.
The CIF term requires the seller to clear the goods for export.
This term can be used only for sea and inland waterway transport. If the parties do not intend to deliver the goods across the ship’s rail, the CIP term should be used. |
| CIP - Carriage and Insurance paid to |
"Carriage and Insurance paid to..." means that the seller delivers the goods to the carrier nominated by him but the seller must in addition pay the cost of carriage necessary to bring the goods to the named destination. This means that the buyer bears all risks and any additional costs occurring after the goods have been so delivered. However, in CIP the seller also has to procure insurance against the buyer’s risk of loss of or damage to the goods during the carriage.
Consequently, the seller contracts for insurance and pays the insurance premium.
The buyer should note that under the CIP term the seller is required to obtain insurance only on minimum cover. Should the buyer wish to have the protection of greater cover, he would either need to agree as much expressly with the seller or to make his own extra insurance arrangements. "Carrier" means any person who, in a contract of carriage, undertakes to perform or to procure the performance of transport, by rail, road, air, sea, inland waterway or by a combination of such modes.
If subsequent carriers are used for the carriage to the agreed destination, the risk passes when the goods have been delivered to the first carrier. The CIP term requires the seller to clear the goods for export.
This term may be used irrespective of the mode of transport including multimodal transport. |
| Claim |
A document that provides evidence needed to prove loss due to damage, shortage, or overcharge. |
| Classes of Dangerous Goods |
1 Explosive substances and articles
2 Gases
3 Flammable liquids
4.1 Flammable solids, self-reactive substances and solid desensitized explosives
4.2 Substances liable to spontaneous combustion
4.3 Substances which, in contact with water, emit flammable gases
5.1 Oxidizing substances
5.2 Organic peroxides
6.1 Toxic substances
6.2 Infectious substances
7 Radioactive material
8 Corrosive substances
9 Miscellaneous dangerous substances and articles |
| Consignee |
The receiver of a freight shipment. |
| Container |
A truck trailer body that can be detached from the chassis for loading onto a vessel, a rail car, or stacked in a container depot. Containers may be ventilated, insulated, refrigerated, flat rack, vehicle rack, open top, bulk liquid, dry bulk, or other special configurations. Typical containers may be 20 feet, 40 feet, 45 feet, 48 feet, or 53 feet in length, 8 feet or 8.5 feet in width, and 8.5 feet or 9.5 feet in height. |
| Contract carrier |
Any person not a common carrier who, under special and individual contracts or agreements, transports passengers or cargo for compensation. |
| CFR - Cost and Freight |
"Cost and Freight" means that the seller delivers when the goods pass the ship’s rail in the port of shipment.
The seller must pay the costs and freight necessary to bring the goods to the named port of destination BUT the risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time of delivery, are transferred from the seller to the buyer.
The CFR term requires the seller to clear the goods for export.
This term can be used only for sea and inland waterway transport. If the parties do not intend to deliver the goods across the ship’s rail, the CPT term should be used. |
| CPT - Carriage Paid To |
"Carriage paid to..." means that the seller delivers the goods to the carrier nominated by him but the seller must in addition pay the cost of carriage necessary to bring the goods to the named destination. This means that the buyer bears all risks and any other costs occurring after the goods have been so delivered.
"Carrier" means any person who, in a contract of carriage, undertakes to perform or to procure the performance of transport, by rail, road, air, sea, inland waterway or by a combination of such modes.
If subsequent carriers are used for the carriage to the agreed destination, the risk passes when the goods have been delivered to the first carrier. The CPT term requires the seller to clear the goods for export.
This term may be used irrespective of the mode of transport including multimodal transport. |
|
Product (usually in pallet quantities) is designated for certain customers before or at the time of delivery. The product is taken directly from the inbound dock to the outbound dock. Note: The received quantity is not added into the inventory. |
| Cube |
The total capacity of a warehouse, truck, back room, re-pack room, pallet, shelf, or product, including vertical and horizontal dimensions. |
| Customs |
The process of inspecting imported or exported goods to determine if and how much duty is required. |
| DAF - Delivered at Frontier |
"Delivered at Frontier" means that the seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport not unloaded, cleared for export, but not cleared for import at the named point and place at the frontier, but before the customs border of the adjoining country. The term "frontier" may be used for any frontier including that of the country of export. Therefore, it is of vital importance that the frontier in question be defined precisely by always naming the point and place in the term.
However, if the parties wish the seller to be responsible for the unloading of the goods from the arriving means of transport and to bear the risks and costs of unloading, this should be made clear by adding explicit wording to this effect in the contract of sale.
This term may be used irrespective of the mode of transport when goods are to be delivered at a land frontier. When delivery is to take place in the port of destination, on board a vessel or on the quay (wharf), the DES or DEQ terms should be used. |
| Daily running cost |
Cost per day of operating a ship. |
| DDP - Delivered Duty Paid |
DDP - Delivered Duty Paid - is another useful incoterm that can be used with any mode of transport.
It is very similar to DDU except that with DDP the seller is also responsible for all import customs formalities and duty and for final delivery of the goods to the buyer at the named place of destination. Basically, with DDP, the buyer carries no risk or responsiblity for the goods until they have been made available to him at the named place of destination, which is normally the buyer’s/importer’s premises.
Seller’s responsibilities:
1) Produces the goods and commercial documents as required by the sales contract.
2) Arranges for export clearance and all export formalities.
3) Arranges and pays for all costs for the transportation of the goods, including final delivery, up to named place of destination.
4) Assumes all risk to the goods (loss or damage) up to the point they have been made available to the buyer at the named place of destination. SPECIAL NOTE: Under DDU terms the seller is under no obligation to provide insurance. However, he may have a vested interest in the goods during the voyage. It may be a wise decision to purchase additional insurance coverage in the case of a loss.
5) Seller must advise the buyer that the goods have been delivered to the carrier and the appropriate arrival information. Also should advise buyer when delivery will be made.
6) Seller must make all arrangements for import customs formalities and payment of customs duty.
Buyer’s Responsibilities:
1) Buyer must pay for the goods as per the sales contract
2) Buyer must provide seller with all licenses and authorizations required for import clearance and formalities.
3) Buyer takes delivery of the goods after they have been delivered by the seller to the named place of destination.
4) Buyer must assume all risks for the goods from the time the goods have been made available at the named place of destination.
5) Buyer pays only costs applicable after the goods have been delivered by the seller to the named place of destination.
6) Buyer would accept the seller’s transport documents provided they conform with the sales contract and will allow the buyer to take possession of the goods after delivery to the named place of destination. |
| DDU - Delivery Duty Unpaid |
DDU - Delivery Duty Unpaid - Is a fairly common incoterm and can be used for any mode of transport. Under DDU terms the seller is responsible for making the goods available to the buyer at a named place of destination but not cleared for import. The seller is also responsible for all the costs involved to deliver the goods to the named place of destination. The seller’s risk also does not end until it reaches the names place of destination.
A common misconception with DDU is that the seller is also responsible for the inland transport of the goods to their final destination after the buyer has arranged for import clearance. This is incorrect. The buyer assumes all risk and responsibility for the import clearance, duties, and delivery to final destination.
Under DDU terms the seller’s risk and responsiblity end once the goods have been made available to the buyer at the named place of destination. The seller is also responsible for all costs up to the named place of destination, but is not responsible for delivering the goods to their final destination.
Seller’s responsibilities:
1) Produces the goods and commercial documents as required by the sales contract.
2) Arranges for export clearance and all export formalities.
3) Arranges and pays for all costs for the transportation of the goods up to named place of destination.
4) Assumes all risk to the goods (loss or damage) up to the point they have been made available to the buyer at the named place of destination. SPECIAL NOTE: Under DDU terms the seller is under no obligation to provide insurance. However, he may have a vested interest in the goods during the voyage. It may be a wise decision to purchase additional insurance coverage in the case of a loss.
5) Seller must advise the buyer that the goods have been delivered to the carrier and the appropriate arrival information.
6) Seller has to provide the buyer with transport documents that will allow the buyer to take possession of the goods at the named place of destination.
Buyer’s Responsibilities:
1) Buyer must pay for the goods as per the sales contract
2) Buyer must obtain all commercial documentation, licenses, and authorizations required for import and arrange for import clearance and formalities at own risk and cost.
3) Buyer takes delivery of the goods after they have been delivered by the seller to the named place of destination.
4) Buyer must assume all risks for the goods from the time the goods have been made available at the named place of destination.
5) Buyer pays for all costs of transportation, import customs formalities and duty fees, and all other formalities and charges related to the transportation of the shipment from the time the goods have been made available at the named place of destination.
6) Buyer would accept the seller’s transport documents provided they conform with the sales contract and will allow the buyer to take possession of the goods after delivery to the named place of destination. |
| Demurrage |
The delay of a vessel or detention of a shipment beyond the stipulated time allowed for loading or unloading; the resulting payment to the owner for such delay or detention. |
| DEQ - Delivered Ex Quay |
"Delivered Ex Quay" means that the seller delivers when the goods are placed at the disposal of the buyer not cleared for import on the quay (wharf) at the named port of destination. The seller has to bear costs and risks involved in bringing the goods to the named port of destination and discharging the goods on the quay (wharf). The DEQ term requires the buyer to clear the goods for import and to pay for all formalities, duties, taxes and other charges upon import.
This is a reversal from previous incoterms versions which required the seller to arrange for import clearance.
If the parties wish to include in the seller’s obligations all or part of the costs payable upon import of the goods, this should be made clear by adding explicit wording to this effect in the contract of sale.
This term can be used only when the goods are to be delivered by sea or inland waterway or multimodal transport on discharging from a vessel onto the quay (wharf) in the port of destination. However if the parties wish to include in the seller’s obligations the risks and costs of the handling of the goods from the quay to another place (warehouse, terminal, transport station, etc.) in or outside the port, the DDU or DDP terms should be used. |
| DES - Delivered Ex Ship |
"Delivered Ex Ship" means that the seller delivers when the goods are placed at the disposal of the buyer on board the ship not cleared for import at the named port of destination. The seller has to bear all the costs and risks involved in bringing the goods to the named port of destination before discharging. If the parties wish the seller to bear the costs and risks of discharging the goods, then the DEQ term should be used.
This term can be used only when the goods are to be delivered by sea or inland waterway or multimodal transport on a vessel in the port of destination. |
| Distribution |
The movement of products from where they are made to where they are used. There are four levels of food store distribution: manufacturing, wholesaling, retailing, and consuming. |
| Dock |
A collection of dock doors where trucks or rail cars are loaded (shipping) or unloaded (receiving). |
| Dock Door |
Used to load or unload trailers or vans. Each dock door is identified individually within the system. |
| Dry Bulk |
Low density cargo, such as agri-food products, fertilizers and ores, that are transported in bulk carriers. |
| ECR - Efficent Consumer Response |
A consumer goods (primarily grocery) initiative aimed at reducing inefficient practices and waste in the supply chain. |
| Electronic Ordering |
Ordering merchandise from suppliers through a computer hook up. |
| EXW - Ex Works |
"Ex works" means that the seller delivers when he places the goods at the disposal of the buyer at the seller’s premises or another named place (i.e. works, factory, warehouse, etc.) not cleared for export and not loaded on any collecting vehicle.
This term thus represents the minimum obligation for the seller, and the buyer has to bear all costs and risks involved in taking the goods from the seller’s premises. However, if the parties wish the seller to be responsible for the loading of the goods on departure and to bear the risks and all the costs of such loading, this should be made clear by adding explicit wording to this effect in the contract of sale.
This term should not be used when the buyer cannot carry out the export formalities directly or indirectly. In such circumstances, the FCA term should be used, provided the seller agrees that he will load at his cost and risk. |
|
|
|
|
|
|
|
|
|
|
(c) 1998 - 2009 İBA Lojistik A.Ş.