B
Back Haul
The return of a carrier to the original point or area from which its journey
began. If a carrier can obtain cargo to carry on the back haul route, that
cargo may often obtain a favorable freight rate because otherwise the
carrier would have to return empty.
began. If a carrier can obtain cargo to carry on the back haul route, that
cargo may often obtain a favorable freight rate because otherwise the
carrier would have to return empty.
Back Order
That portion of an order that cannot be delivered at the scheduled time,
but will be delivered at a later date when available.
but will be delivered at a later date when available.
Bad Faith
The intent to mislead or deceive. It does not include misleading by an
honest, inadvertent or uncalled-for misstatement.
honest, inadvertent or uncalled-for misstatement.
Bagged Cargo
Goods shipped in sacks.
Bailment
A delivery of goods or personal property by one person (the bailor) to
another (the bailee) on an express or implied contract for a particular
purpose related to the goods while in possession of the bailee, who has
a duty to redeliver them to the bailor.
another (the bailee) on an express or implied contract for a particular
purpose related to the goods while in possession of the bailee, who has
a duty to redeliver them to the bailor.
Balance Of Payments
A statement summarizing all the economic and financial transactions
between companies, banks, private households and public authorities of
one nation with those of the other nations of the world over a specific time
period. It includes merchandise trade payments, payments and receipts
on account of shipping services, tourist services, financial services,
government expenditures, short and long term capital movements,
interest and dividends, gold movements, etc.
between companies, banks, private households and public authorities of
one nation with those of the other nations of the world over a specific time
period. It includes merchandise trade payments, payments and receipts
on account of shipping services, tourist services, financial services,
government expenditures, short and long term capital movements,
interest and dividends, gold movements, etc.
Balance of Trade
The difference in value between a country's total imports and exports over
a specific time period.
a specific time period.
Balanced Economy
A condition of national finances in which imports and exports are equal.
Bale
A large bundle or package of compressed and bound goods, usually with
an outer covering, often of burlap.
an outer covering, often of burlap.
Bale Cargo
Cargo shipped in bales.
Ballast
Heavy material or water placed in the lower holds of a ship or in
strategically placed tanks along the sides to improve its stability.
strategically placed tanks along the sides to improve its stability.
Bank Acceptance
A draft drawn on and accepted by a bank.
Bank Delivery Order to an Airline
A letter addressed to an air carrier from a bank who is shown as
consignee on an airwaybill instructing the carrier to release a shipment.
Often airlines will accept as a delivery order a bank's endorsement on the
airwaybill, although an airwaybill is a non-negotiable document.
consignee on an airwaybill instructing the carrier to release a shipment.
Often airlines will accept as a delivery order a bank's endorsement on the
airwaybill, although an airwaybill is a non-negotiable document.
Bank Draft
A form of check drawn by a bank against its account in another bank.
Bank Guarantee
An indemnity letter in which the bank commits itself to pay a certain sum if
a third party fails to perform or if any other form of default occurs. One use
is when a bank wants a carrier to release a shipment which it has
financed but the original bills of lading are not yet available for surrender
to the carrier.
a third party fails to perform or if any other form of default occurs. One use
is when a bank wants a carrier to release a shipment which it has
financed but the original bills of lading are not yet available for surrender
to the carrier.
Bank Holding Company
(USA) Any company which directly controls, with power to vote, more than
five percent of voting shares of two or more banks (as defined by the Bank
Holding Company Act .
five percent of voting shares of two or more banks (as defined by the Bank
Holding Company Act .
Bank Holiday
A day on which banks are closed.
Bank Note
A promissory note having the appearance of currency, issued by a bank or
banker authorized to do so, payable to bearer on demand, and intended to
circulate as money.
banker authorized to do so, payable to bearer on demand, and intended to
circulate as money.
Bank Release
A document issued by a bank who is the consignee of a shipment
authorizing a carrier to deliver a shipment.
authorizing a carrier to deliver a shipment.
Banker's Bank
A bank that is established by mutual consent by independent and
unaffiliated banks to provide a clearinghouse for financial transactions.
unaffiliated banks to provide a clearinghouse for financial transactions.
Banker's Draft
A draft payable on demand and drawn by, or on behalf of, a bank upon
itself or upon another bank, sometimes a foreign bank, where it maintains
an account or a relationship.
itself or upon another bank, sometimes a foreign bank, where it maintains
an account or a relationship.
Bankers Acceptance
A draft calling for payment at a future date on which the drawee is a bank,
and the bank has agreed to pay by signing accepted on the draft.
and the bank has agreed to pay by signing accepted on the draft.
Bankruptcy
The condition of a legal entity that does not have the financial means to
pay their incurred debts as they come due. In the U.S. this status is
established through legal procedures involving a petition by the bankrupt or
by its creditors.
pay their incurred debts as they come due. In the U.S. this status is
established through legal procedures involving a petition by the bankrupt or
by its creditors.
Bareboat Charter
The charter of a vessel where the charter party has the right to use his
own master and crew on the vessel. Pays all operating expenses.
own master and crew on the vessel. Pays all operating expenses.
Barge
A flat bottomed cargo vessel primarily used on rivers and canals. Usually
it is towed or pushed but it may be self-propelled.
it is towed or pushed but it may be self-propelled.
Barratry
1. In maritime law the intentional misconduct of the ship's master or crew;
includes theft, intentional casting away of vessel, or breach of trust.
2. The offense of frequently stirring up quarrels and suits, either at law or
otherwise.
includes theft, intentional casting away of vessel, or breach of trust.
2. The offense of frequently stirring up quarrels and suits, either at law or
otherwise.
Barter
Trade of goods or services without the use of money.
Basing Point
A location which is used to set the selling price of goods and the freight
rates to all points. A price is set at a given location chosen as the
ex-factory basing point with freight to the place of delivery added to create
a delivered price. Then like goods, wherever they may be sold from, are
charged freight to their destination as if they were shipped from the same
location (the basing point).
rates to all points. A price is set at a given location chosen as the
ex-factory basing point with freight to the place of delivery added to create
a delivered price. Then like goods, wherever they may be sold from, are
charged freight to their destination as if they were shipped from the same
location (the basing point).
Basing Rate
A freight rate which is used for the sole purpose of determining other
freight rates. For an explanation of how this works, see 'Basing Point'.
freight rates. For an explanation of how this works, see 'Basing Point'.
Basket of Currencies
A composite unit consisting of weighted amounts of the currencies of a
group of designated nations.
group of designated nations.
Battens
1.The protruding fixtures on the inside walls of a vessel's hold which are
used to keep the cargo away or to fasten it in place.
2. Similar structural parts to the above in truck bodies, containers and rail
cars.
used to keep the cargo away or to fasten it in place.
2. Similar structural parts to the above in truck bodies, containers and rail
cars.
Bearer
The person in possession of a negotiable instrument, document of title,
or security marked payable to bearer, or the person in possession of one
of these documents endorsed in blank.
or security marked payable to bearer, or the person in possession of one
of these documents endorsed in blank.
Beggar-Thy-Neighbor Policy
A course of action through which a country tries to reduce unemployment
and increase domestic output by raising tariffs and instituting non-tariff
barriers that impede imports, and thus improve its own position at the
expense of its trading partners.
and increase domestic output by raising tariffs and instituting non-tariff
barriers that impede imports, and thus improve its own position at the
expense of its trading partners.
Belly Pits or Holds
Compartments beneath the cabin of an aircraft used for the transport of
cargo or baggage.
cargo or baggage.
Beneficiary
1. In the case of a letter of credit, the individual or company who is entitled
to draw or demand payment under its terms.
2. In the case of insurance, the person entitled to take the proceeds.
3. The person for whose benefit a contract, or trust, or will is executed or
enforced.
to draw or demand payment under its terms.
2. In the case of insurance, the person entitled to take the proceeds.
3. The person for whose benefit a contract, or trust, or will is executed or
enforced.
Berth
The place beside a docking area where a ship is secured and cargo can
be loaded or unloaded.
be loaded or unloaded.
Bid Bond
A type of indemnity bond. A surety guarantee often required to be
established by a bidder to guarantee fulfillment of his offer if accepted.
established by a bidder to guarantee fulfillment of his offer if accepted.
Bilateral Investment Treaty
A treaty between two countries with the goal of ensuring that investments
made by either of them in the other receive treatment equal to that
afforded their domestic entities or any third country entities.
made by either of them in the other receive treatment equal to that
afforded their domestic entities or any third country entities.
Bilateral Trade
The commerce between two countries.
Bill
1. A Bill of Exchange or Draft (same thing).
2. A written statement of contract terms.
3 .The word Bill has many other international trade connotations - Invoice
etc.
2. A written statement of contract terms.
3 .The word Bill has many other international trade connotations - Invoice
etc.
Bill of Credit
A written authority from one person to another, empowering the recipient
of the document to receive money from the correspondents of the issuer
abroad . (The usual issuer is a bank)
of the document to receive money from the correspondents of the issuer
abroad . (The usual issuer is a bank)
Bill of Exchange
Draft or Bill.
Bill of Health
An official certificate (Pratique) issued by the authorities upon the
departure of a vessel or airplane showing the state of health at the place
of departure, and of the passengers and crew.
departure of a vessel or airplane showing the state of health at the place
of departure, and of the passengers and crew.
Bill of Lading
A document issued by a carrier which is evidence of receipt of the goods,
and is a contract of carriage. It describes the goods, the details of the
intended voyage, and it specifies the conditions of transportation. If issued
in negotiable form, i.e. to order, it becomes documentary evidence of title
to the goods.
and is a contract of carriage. It describes the goods, the details of the
intended voyage, and it specifies the conditions of transportation. If issued
in negotiable form, i.e. to order, it becomes documentary evidence of title
to the goods.
Bill of Sale
A written document by which a party legally transfers ownership of goods
to another party.
to another party.
Bill-To Party
The party designated on purchase order, invoice, or bill of lading as the
one to whom the bill should be sent for payment.
one to whom the bill should be sent for payment.
Billed Weight
The designated weight shown on the freight bill which is used to calculate
the freight charges.
the freight charges.
Billing Third Party
The transference of transportation charges to a party other than the
shipper or consignee.
shipper or consignee.
Biological Agents
A complex substance of organic origin which can treat or cause disease.
Black Market
Buying or selling of products that violate government restrictions.
Blanket Rate
In insurance, a rate of premium applied across the board when there is
more than one kind of property which is the subject of insurance.
more than one kind of property which is the subject of insurance.
Blockade
Prevention of commercial exchange by physically preventing carriers from
entering a port or nation.
entering a port or nation.
Bona Fide
In or with good faith, honesty, and sincerity.
Bond
1. A written undertaking to perform or refrain from performing specified
acts, usually guaranteed by a third party.
2. A security evidencing debt, specifying the date payment is due and
usually specifying a rate of interest and its dates of periodic payment.
acts, usually guaranteed by a third party.
2. A security evidencing debt, specifying the date payment is due and
usually specifying a rate of interest and its dates of periodic payment.
Bond of Indemnity
A bond to indemnify and save harmless the party to whom the bond is
issued against some anticipated loss.
issued against some anticipated loss.
Bond System
(USA) An automated electronic system, part of the Automated Customs
System, whose purpose is to control and track indemnity bonds issued to
Customs to secure compliance with various laws.
System, whose purpose is to control and track indemnity bonds issued to
Customs to secure compliance with various laws.
Bonded
(USA) This term refers to goods which are held, stored or transported
under circumstances where applicable duty or taxes have not yet been
definitely determined or paid, and admissibility has not yet been arranged.
Bonds must be posted by those who are responsible for the goods during
this period (the carriers, warehouses, and/or importers) to indemnify the
government if the goods are released improperly.
under circumstances where applicable duty or taxes have not yet been
definitely determined or paid, and admissibility has not yet been arranged.
Bonds must be posted by those who are responsible for the goods during
this period (the carriers, warehouses, and/or importers) to indemnify the
government if the goods are released improperly.
Bonded Terminal
(USA) A terminal approved by Customs for temporary storage of imported
goods until Customs duties are paid or goods released. Bonds must be
posted by the terminal operator to indemnify the government if the goods
are released improperly.
goods until Customs duties are paid or goods released. Bonds must be
posted by the terminal operator to indemnify the government if the goods
are released improperly.
Bonded Warehouse
(USA) An approved private warehouse used for the storage of goods until
duties or taxes are paid and the goods are properly released by Customs.
Bonds must be posted by the warehouse proprietor and by the importer to
indemnify the government if the goods are released improperly.
duties or taxes are paid and the goods are properly released by Customs.
Bonds must be posted by the warehouse proprietor and by the importer to
indemnify the government if the goods are released improperly.
Booking
The making of arrangements for a shipment with the representatives of a
vessel or airline.
vessel or airline.
Bounties
A compensation paid to persons to induce certain actions. In this class
are government payments to producers or exporters to strengthen their
competitive position.
are government payments to producers or exporters to strengthen their
competitive position.
Box
1. Term referring to a trailer, semi-trailer, or container used in
transportation.
2. A type of package of wood, cardboard, metal, plastic or other material.
transportation.
2. A type of package of wood, cardboard, metal, plastic or other material.
Box Car
A closed railroad freight car.
Boycott
A concerted refusal to deal commercially with a person, firm, or country.
Breakage
1. A monetary allowance that a manufacturer allots for compensation to a
buyer for breakage to goods (usually fragile) while in shipment.
2. A fractional amount due either party in a transaction, for example in
computing interest.
3. In marine insurance, breakage refers to breakage of fragile goods such
as glass and china.
buyer for breakage to goods (usually fragile) while in shipment.
2. A fractional amount due either party in a transaction, for example in
computing interest.
3. In marine insurance, breakage refers to breakage of fragile goods such
as glass and china.
Breakbulk
1. A breakbulk ship is one which transports cargo which is packed in
cases, bales, cartons, drums, carboys etc., and this cargo is carried in the
ship's cargo holds rather than in containers (although some loaded
containers may be carried).
2. 'tobreakbulk' is to unload packaged cargo from a 'breakbulk ship' or
from a container and to distribute it.
cases, bales, cartons, drums, carboys etc., and this cargo is carried in the
ship's cargo holds rather than in containers (although some loaded
containers may be carried).
2. 'tobreakbulk' is to unload packaged cargo from a 'breakbulk ship' or
from a container and to distribute it.
Breakbulk Cargo
Cargo that is shipped in packing units such as cartons, cases, crates,
bales, or drums, but not containerized.
bales, or drums, but not containerized.
Broker
One that acts as an agent for others, as in negotiating contracts,
purchases, or sales in return for a fee or commission.
purchases, or sales in return for a fee or commission.
Bulk Cargo
Cargo that is made up of an unpacked commodity; examples include
grain, oil, and ore.
grain, oil, and ore.
Bulk Carrier
A vessel designed for the shipment of bulk cargo.
Bulk Freight
Cargo not in packages or containers.
Bulk Sale
The transfer or sale of substantially all of an inventory of an enterprise in a
single transaction not in the usual course of business.
single transaction not in the usual course of business.
Bulk Solids
Dry cargo shipped loose, such as grain, ore, etc.
Bunker Adjustment Factor
An adjustment in shipping charges to offset price fluctuations in the cost
of bunker fuel.
of bunker fuel.
Bunker Fuel
The fuel used to power a ship.
Bunker(s)
1. A compartment (hold) of a ship for storage of fuel.
2. The fuel for a vessel
2. The fuel for a vessel
Bureau Of Alcohol, Tobacco
And Firearms
And Firearms
The Bureau of Alcohol, Tobacco and Firearms (ATF) is a law enforcement
organization within the United States Department of Treasury with unique
responsibilities dedicated to reducing violent crime, collecting revenue,
and protecting the public. ATF enforces the Federal laws and regulations
relating to alcohol, tobacco, firearms, explosives and arson by working
directly and in cooperation with others.
organization within the United States Department of Treasury with unique
responsibilities dedicated to reducing violent crime, collecting revenue,
and protecting the public. ATF enforces the Federal laws and regulations
relating to alcohol, tobacco, firearms, explosives and arson by working
directly and in cooperation with others.
Bureau of Industry and Security
A U.S. government agency responsible for control of exports for reasons
of national security, foreign policy and short supply.
of national security, foreign policy and short supply.
Buy American Acts
U.S. federal and state government statutes that give a preference in
government contracts to U.S. produced goods.
government contracts to U.S. produced goods.
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