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Shipping products seems simple, right? You simply package the product and send it to your customer. But did you know there are different types of shipment?
Depending on the size of your shipment, it may be considered parcel, less-than-load (LTL), or a full truckload (FTL) shipment. Your shipment may be too small for certain carriers, or conversely, if you have a large shipment, you may have to rely on a carrier certified to be able to ship large containers. There are also unique considerations depending on the mode of transport—whether you’re shipping via air, sea, road, or rail.
The wide variety of terms that relate to the process of moving goods through a supply chain can seem overwhelming. But understanding the different types of shipment and related terms is crucial to ensure your goods get shipped on-time, within compliance, and in good shape.
That's why we've provided this glossary of international shipping terms:
ACE: The Automated Commercial Environment is the online web portal used to report data to the Automated Export System (AES).
AES: The Automated Export System is the system used by the U.S. government to collect data on exports. This data is called Electronic Export Information (EEI) and in many cases exporters are legally required to file the EEI through AES for each shipment. The U.S. Census Bureau uses this data to calculate trade statistics such as gross domestic product (GDP), while U.S. Customs and Border Protection (CBP) uses it to make sure that exporters are following U.S. export regulations. See also, 20 Terms You Need to Know when Filing through AES.
Aggregate shipment: Multiple shipments from different sellers to a single consignee that are consolidated by the carrier into a single shipment.
Alongside: Refers to the side of a ship. Goods delivered alongside are placed on the dock or barge within reach of the ship’s rigging so it can be easily loaded onto the ship. It’s used, for example, in the Incoterms 2010 trade term, Free Alongside Ship.
Apparent good order: When freight appears to be free of damage after being assessed it is said to be in apparent good order.
Arrival notice: Notification provided by the carrier when a shipment has arrived to the consignee or notify party.
Astern: Can either mean 1) behind a ship, or 2) to move a ship in reverse direction.
ATDNSHINC: Stands for “Any Time, Day or Night, Sundays and Holidays Included” referring to when a vessel will operate.
Athwartships: A direction across the width of a ship.
Automatic identification system (AIS): A satellite system used by ships and vessel tracking service (VTS) to identify and locate ships.
Backhaul: Cargo carried on a return journey.
Balloon freight: Freight that is low weight but high volume (light but bulky.)
Beam: The width of a ship.
Beneficiary: The party that receives payment.
Bilateral: A bilateral agreement is one in which both parties agree to provide something for the other.
Bill of lading: A document issued by a carrier or their agent acknowledging receipt of cargo for shipment. Often abbreviated as BOL, BoL, B/L, or BL. If there were no issues with the cargo stated on the BOL, it is said to be a clean bill of lading. See also, 3 Things You Need to Know about the Bill of Lading Form.
Bill of sale: A document that confirms that transfer of goods in exchange for money.
Bill-to party: The party paying for goods or services in a transaction.
Blocking or bracing: Wood or metal supports used to secure cargo while in transit. Also called dunnage.
Block stowage: Loading cargo close together to minimize movement of goods while in transit.
Bolster: A piece of equipment attached to a chassis or railcar in order to secure the container.
Bond port: The initial port of entry where a vessel transporting goods first arrives at a country.
Booking: Arrangements made with a carrier for the movement of cargo; space reservation.
Bow: The front of a vessel.
Broken stowage: Empty space in a container not occupied by cargo.
Bulk cargo: Cargo that is shipped loose as opposed to being shipped in packages or containers. Grain and coal are examples of goods usually shipped as bulk cargo.
Bull ring: A device attached to the floor of a container which is used to secure cargo.
Cabotage: Transport of goods between two places in the same country by a transporter from another country.
Cargo: Any goods being transported, regardless of the mode of transport.
Cargo manifest: A document detailing the cargo carried on a ship, often provided to a customs authority.
Carnet: A document permitting the holder to temporarily send goods to certain foreign countries for display or demonstration purposes without having to pay duties. Check out,What is an ATA Carnet?
Cash on delivery (COD): The sale of goods in which payment is made upon delivery rather than in advance.
Carrier: A carrier is a party that transports goods for another person or company and is responsible for any possible loss of or damage to the goods during transport. A common carrier provides transportation services to the public in return for compensation. A contract carrier provides this service under special contracts, often for government clients.
CBP: Customs and Border Protection, part of the Department of Homeland Security, is the agency within the U.S. government tasked with controlling the flow of people and goods into and out of the country, and with enforcing import and export regulations.
CCC Mark: A label indicating cargo conforms to standards established by the Chinese government.
CCL: The Commerce Control List is a list of dual-use items (items that have both a commercial application as well as a potential military application) published as part of the U.S. Department of Commerce’s Export Administration Regulations (EAR). Each item on the CCL is identified with an Export Control Classification Number (ECCN). Knowing the right ECCN for your product plays a role in determining if you need an export license.
CE Mark: A label indicating cargo conforms to standards established by the European Union.
Certificate of inspection: A document certifying that merchandise is in good condition immediately prior to being shipped.
Certificate of origin: A document certifying where goods were originally made, often abbreviated as COO. A COO specific to a particular free trade agreement may be used to claim preferential duty treatment. A generic certificate of origin may be requested by the customs authority of the country of import, in which case the COO must be stamped by a chamber of commerce.
CFR: The Code of Federal RegulationsImport-Export Due Diligence: Measuring Business Regulations—Part 1
Next: Six Basic Steps for Export Compliance
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