Discover the most used terms in transportation
The transportation glossary includes abbreviations and terms commonly used in freight transportation services.
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Terms used in air transportation
Handling Airline Charges
Handling Airline Charges
Cargo Correction Advice
Cargo Accounts Settlement Systems
General Cargo Rates
Specific Commodity Rate
Shipper’s Letter of Instruction
Dangerous Goods Regulations
Air Transport Association
Letter of Credit
Live Animal Regulation
No Value Declared for Carriage
No Customs Valued
Proof of Delivery
The Air Cargo Tarrif
Terms used in sea and road transportation
CFR (Cost & Freight)
The seller must pay the freight and costs required to bring the goods to the agreed port of destination. The risk of loss or damage to the cargo, as well as any additional costs caused by events occurring after the cargo has been delivered on board the ship, shall be transferred from the seller to the buyer as the goods pass the vessel's railing in the port of loading.
The term CFR implies the obligation of the seller to clear the goods for export. If the vessel's railing is not relevant, such as in the case of roll-on / roll-off or containerized traffic, it is more appropriate to use the term CPT.
CIF (Cost, Insurance & Freight)
The seller has the same obligations as in the case of the CFR term, but, in addition, he must carry out maritime insurance to cover the buyer's risk of loss or damage to the goods during shipping.
The seller concludes and pays the insurance contracts and pays the insurance premium. The buyer notes that, in the case of the CIF term, the seller is obliged to obtain the insurance for the minimum coverage. The term CIF implies the seller's obligation to clear the goods for export. If the vessel railing is not relevant, such as in the case of roll-on / roll-off or containerized traffic, it is more appropriate to use the term CIP.
FAS (Free Alongside Ship)
The seller fulfills his obligation to deliver when the goods have been placed along the vessel, on wharves or barges, barges or ferries, in the agreed port of loading. This means that all costs and risks of loss or damage to the goods are borne by the buyer at that time.
The term FAS implies the buyer's obligation to clear the goods for export and should not be used if the buyer cannot directly or indirectly complete the export formalities. This term may be used only for maritime transport or inland waterways.
FOB (Free on Board)
The seller fulfills his obligation to deliver when the goods have passed the railing of the vessel, in the agreed port of loading. The costs and risks of loss and damage to the goods are borne from that moment by the buyer.
The term FOB implies the seller's obligation to clear the goods for export. This term may be used only for maritime transport or inland waterways. If the vessel's railing is not relevant, such as in the case of roll-on / roll-off or containerized traffic, it is more appropriate to use the term FCA.
Common terms used in transporation
CPT (Carriage Paid To)
The seller pays for the transport of the goods to the agreed destination. The risks of loss or damage to the goods, as well as any other additional costs caused by events that occurred after the goods were handed over to the carrier, pass from the seller to the buyer when the goods were handed over to the carrier.
If successive carriers are used to transport the goods, the risks pass from the seller to the buyer when the goods have been handed over to the first carrier. The term CPT implies the seller's obligation to clear the goods for export. This term can be used for all modes of transport, including multimodal transport.
CIP (Carriage & Insurance Paid)
The seller has the same obligations as at the time of the CPT, but, in addition, he must also take out insurance to cover the risk of loss or damage to the goods during transport.
The seller concludes the contract and pays the insurance. The buyer should note that in the case of CIP the seller is obliged to obtain the premium insurance for the minimum coverage. The term CIP implies the seller's obligation to clear the goods for export. This term can be used for all modes of transport, including multimodal transport.
DAT (Delivered at Terminal)
The seller delivers and unloads from the means of transportation to the terminal, from the port or place, established with the buyer. Terminal means any place, such as: keys, warehouse, street, cargo terminal, CFR terminal.
The seller covers all costs for delivery and unloading of goods at the established terminal. It is recommended that the notion of terminal be very well specified. DAT covers export customs clearance formalities but does not include the cost of import customs clearance formalities.
DAP (Delivered at Place)
The seller delivers the goods in the appropriate means of transportation to the place agreed with the buyer. The seller covers all costs for delivery and unloading of goods at the established terminal. It is recommended that the notion of terminal be very well specified.
If the seller bears the costs of unloading the goods at the destination, he is not entitled to re-invoice these costs to the buyer. It is recommended that the notion of place be very well specified. The DAP covers customs clearance formalities on exportation, but does not include the cost of customs clearance formalities on importation.
DDP (Delivered Duty Paid)
The seller fulfills his obligation to deliver when the goods have been made available to the buyer at the agreed place in the importing country. The seller must bear all costs and risks associated with bringing the goods to this place, including customs duties, other official duties and charges payable on importation, as well as the costs and risks of completing customs formalities. This term can be used regardless of the mode of transport.
EXW (Ex Works)
The product and the risks are transferred to the buyer, including the payment of the transport and the cost of insurance at the seller's factory gate. It is the most convenient delivery condition for the seller, who must make the packaged goods available to the buyer, and he is obliged to charge it at his expense and risk.
FCA (Free Carrier)
Free shipping means that the seller fulfills his delivery obligation when he has delivered the goods cleared for export, in the care of the carrier designated by the buyer, at the agreed place or point.
If the buyer does not indicate a specific point, the seller may choose the point at the place or territorial area mentioned, where the carrier is to take over the goods in his custody.
If, according to commercial practice, the support of the seller is required for the conclusion of the contract with the carrier, as is the case in CFR or air transport, the seller acts at the risk and expense of the buyer.
3PL (Logistics from a third party)
3PL in logistics and supply chain management is the use by a third party organization to which it outsources the elements of distribution, storage, etc.
AEO (Authorised Economic Operator)
A company or organization involved in the international movement of goods and which has been approved by a national customs administration.
A detailed list of a ship's cargo.
A type of storage in which companies store goods without paying taxes or fees until the goods are ready for distribution.
Compliance means that products, services, processes and / or documents meet the relevant requirements.
Dangerous goods are substances or articles which present a risk to humans, goods or the environment because of their chemical or physical properties.
Adopt or increase the use of digital or technologic informationn or the conversion of analogue data into digital form.
This abbreviation is used in two different contexts:
Good distribution practice: guidelines for the correct distribution of medicinal products for human use.
Gross domestic product: a monetary measure of the market value of all final goods and services produced in a period, country or region.
They are standard sets of global terms and conditions issued by the International Chamber of Commerce, designed to help traders, lawyers, carriers and insurers when goods are bought, sold and transported.
In essence, the 11 Incoterms rules set obligations for trading partners (who is responsible for transport, import and export customs clearance, etc.) and, more importantly, the point in the journey where the risk is transferred from the seller to the buyer.
Equivalent unit of twenty feet, the standard unit for describing the cargo carrying capacity of a ship or the cargo handling capacity of a transport terminal.
A standard container of forty feet (40x8x8 feet) is equal to two TEUs (each has 20x8x8 feet).
A transport management system is a subset of supply chain management that helps optimize the efficiency and effectiveness of transportation fleets.
Track & Trace
It is the process of identifying past and current locations of inventory items in the supply chain.
A warehouse management system is a software application that supports and improves the functionality of the warehouse and the management of the distribution center.