A.P.
Additional Premium
A.R.
→ All Risk
Abandonment
Giving up the proprietary rights in insured property to the underwriter in exchange for payment of a constructive total loss.
→ Notice of Abandonment → Waiver Clause
Absorption
Acceptance
by the carrier of a portion of a joint rate or charge which is less
than the amount which it would receive for the service in the absence
of such joint rate or charge (air cargo).
Accept
Agreement to pay at some future date – a “time draft” drawn on the accepting party.
Acceptance of Goods
Process
of receiving a consignment from a shipper, usually against the issue of
a receipt. As from this moment and at this place the carrier’s
responsibility for the consignment begins.
ACEP
→ Approved Continuous Examination Program
Acknowledgement of Receipt
Notification relating to the receipt of, for example, goods, messages and documents.
ACP90
Air
Cargo Process. Computer system used at UK airports as an intermediary
between airlines, airports authorities, agents and customs declarations.
Act of God
Natural
event, such as floods, storms, lightning, earthquakes, etc., not
preventable by human agency. Forces of nature that a carrier has no
control over, and therefore cannot be held accountable for.
Synonym: → Force Majeure
Actual Total Loss
This
occurs when: 1. The insured property is completely destroyed; or 2. The
insured is irretrievably deprived of the insured property; or 3. Cargo
changes in character so that it is no longer the thing that was insured
(e.g., cement becomes concrete) or 4. A ship is posted “missing” at
Lloyd’s, in which case both the ship and its cargo are deemed to be an
actual total loss.
→ Notice of Abandonment
Actual Voyage Number
Code for identification purposes of the voyage of a vessel.
Ad Valorem
Mode of freight or customs duties levied on cargo based on its value.
→ Ad Valorem Duty
Ad Valorem Bill of Lading
Same as Valued Bill of Lading.
Ad Valorem Duty
Tax imposed on merchandise based on its value.
Added Value
Value attributed to products, and services as the result of a particular process (e.g. production process, storage, transport).
ADR
→ Articles Dangereux de Route
Advance
Down payment on account of final invoice amount.
Advance against Documents
Down payment in exchange for original shipping documents.
Advance Freight
Same as Prepaid Freight.
Advanced Interline
Interline carrier that picks up cargo from the shipper and delivers it to another carrier for shipment to the consignee.
Adventure
Exposure of property to risk.
→ General Average Act (York-Antwerp Rules)
Advice Note
Written shipment information, for example, about the status of the goods.
Advice of Fate
Notice
given by the collecting bank to the remitting bank as to payment,
acceptance, non-payment, or non-acceptance of a draft presented at the
remitting bank’s request.
Advising Bank
Bank that
handles Letters of Credit (L/C) for a foreign bank by notifying the
seller that the buyer has opened a L/C in their favor. The advising
bank fully informs the seller of the conditions of the Letter of Credit.
→ Confirmed Letter of Credit
Advisory Capacity
Term
indicating that agent or representative is not empowered to make
definitive decisions or adjustments without approval of the group or
individual represented.
→ Without Reserve
Aeroquip System
Special
accessories in a container consisting of, among other things, the
attachment rails on the inside walls to provide facilities for lashing
and securing of the cargo.
Affreightment
Contract
which sets forth the obligations of both shipper and carrier concerning
transportation of the merchandise. The most common forms of
affreightment are Bills of Lading and Waybills.
Aft
At, near or towards the stern or rear of a vessel or an aircraft.
Agency Fee
Fee payable by shipowner or ship operator to port agent.
Agent
A company (or person) which does business on behalf of another company based on a contractual agreement.
Aggregate Inventory
Inventory for any group of items or products, involving multiple stock-keeping units.
Synonym: Aggregate Stock
Air Commuter
Airline operating regional passenger traffic.
Air Consignment Note
→ Air Waybill
Air Waybill
Abbreviation:
AWB. Document used for carriage by air, evidencing the conclusion of a
contract of carriage. This is a non-negotiable document of air
transport that serves as a receipt for the shipper, indicating that the
carrier has accepted the goods listed and obligates itself to carry the
consignment to the airport of destination according to specified
conditions.
→ Consignment Note → Bill of Lading → Through Bill of Lading
All Risk
Abbreviation:
A.R. Broadest form of insurance cover available, providing protection
against all risks of physical loss or damage from any external cause.
Does not cover loss or damage due to delay, inherent vice, pre-shipment
condition, inadequate packaging or loss of market.
→ ICC → Named Perils Policy
Allotment
Share
of the capacity of a means of transport assigned to a certain party,
e.g. a carrier or an agent, for the purpose of booking cargo for a
specific voyage.
→ Reservation
Alongside
Phrase
referring to the side of a ship. Goods to be delivered “alongside” are
to be placed on the dock or barge within reach of the transport ship’s
tackle so that they can be loaded aboard the ship.
→ Free Alongside Ship (FAS)
Annual Policy
Designed
for clients with a small turnover of Goods in Transit. A deposit
premium is paid and this is adjusted at the end of the year based on
declarations made.
Apparel
1. A vessel’s outfit, such as rigging, anchor and life boats. 2. The term used in distribution/transport of clothing for a single piece of clothing – a garment.
Approved Continuous Examination Program
Abbreviation:
ACEP. Agreement between the owners of the equipment and the responsible
government body to allow continuous examination of the equipment (e.g.
containers).
Approved Vessel
Vessel which the
underwriters deem adequate to carry the insured cargo, at the agreed
rate of premium. Where the vessel is not approved, the risk is still
covered but is subject to a reasonable additional premium.
Apron
→ Platform
Arbitrage
Buying
of foreign exchange, securities, or commodities in one market and the
simultaneous selling in another market. By this manipulation a profit
is made because of the difference in the rates of exchange or in the
prices of securities or commodities involved.
Area Code
Code specifying an area.
→ Zone Improvement Plan (ZIP)
Arrival Notice
Notice sent by a carrier or freight forwarder to notify party advising the arrival of a shipment.
Articles Dangereux de Route
Abbreviation: ADR. European agreement concerning the international carriage of dangerous goods by road.
Assembly
Stage of production in which components are put together into an end product.
Assignment
Transfer
of the rights, duties, responsibilities and/or benefits of an
agreement, contract, or financial instrument to a third party.
Assignment of Proceeds
Stipulation
within a Letter of Credit in which some or all of the proceeds are
assigned from the original beneficiary to one or more additional
beneficiaries.
Assured Party
Party that has legal title to the cargo and to whom a claim payment will be paid.
Astern
1. Behind a vessel or an aircraft. 2. Backward; in a reverse direction.
Athwartships
Across the vessel, i.e., from one side to the other.
→ Fore and Aft Stowage
Audit
Methodical
examination and review of a situation or condition (as within a
business enterprise) concluding with a detailed report of findings.
Authentication
Proof by means of a signature or otherwise that a certain document or certain data is of undisputed origin and is genuine.
Authorization
Commission to a certain person or body to act on behalf of another person or body.
Auto Container
Container equipped for the transportation of vehicles.
Automated Guided Vehicle System
Unmanned vehicles equipped with automatic guidance equipment which follow a prescribed path.
Automatic Indentification
Means
of identifying an item (e.g. a product, parcel or transport unit) by a
device entering the data automatically into a computer. The most widely
used technology at present is bar code; others include radio frequency,
magnetic stripes and optical character recognition.
Average
Any
loss or damage due to insured perils that is less than a total loss.
Two types of average occur: Particular Average and General Average.
→ Particular Average → General Average → Average Adjusters
Average Adjusters
In
general average adjusters are entrusted with the task of apportioning
the loss and expenditure over the parties interested in the maritime
venture. They also determine which expenses are to be regarded as
average or general average.
Average Clause
Clause in marine policy which sets out the cover provided in the event of partial loss.
Average Irrespective of Percentage
Indicates that partial losses will be paid regardless of any franchise or percentage.
AWB
→ Air Waybill |
