J
Jetsam
Articles from a ship or ship's cargo that were thrown overboard, (usually to lighten the load in times of
emergency or distress.). The articles may sink or be washed ashore.
emergency or distress.). The articles may sink or be washed ashore.
Jettison
The act of throwing overboard at sea part of a vessel's paraphernalia or cargo or hull - usually in hopes
of saving the ship from sinking.
of saving the ship from sinking.
Joint Agent
A person having authority to transact business for two or more principals . In transportation it is a
common occurrence.
common occurrence.
Joint And Several
Liability
Liability
Liability for damages imposed on two or more individuals or legal entities who are responsible together
and individually, allowing the party harmed to seek full remedy against all or any number of the
wrongdoers.
and individually, allowing the party harmed to seek full remedy against all or any number of the
wrongdoers.
Joint Rate
A single freight rate on cargo moving via two or more carriers who then share the income..
Joint Stock
Company
Company
An unincorporated business enterprise with ownership interests represented by shares of stock. Also a
joint Stock Association.
joint Stock Association.
Joint Venture
A combination of two or more individuals or legal entities who undertake together a transaction for
mutual gain or to engage in a commercial enterprise together with mutual sharing of profits and losses.
mutual gain or to engage in a commercial enterprise together with mutual sharing of profits and losses.
Jurat
A statement signed by a person authorized to take oaths certifying to the authenticity of a document or
affidavit.
affidavit.
Juristic Act
Action intended to, and capable of having, a legal effect, such as the creation, termination, or
modification of a legal right.
modification of a legal right.
Just In Time
The principle of production and inventory control that prescribes precise controls for the movement of
raw materials, component parts and work-in-progress. Goods are expected to arrive when needed for
production rather than arriving prior to need and becoming inventory,
raw materials, component parts and work-in-progress. Goods are expected to arrive when needed for
production rather than arriving prior to need and becoming inventory,
K
Keelage
The charges paid by a ship entering or remaining in certain ports.
Key Currency
A major currency in the global economy. Key currencies include the U.S. dollar, the British pound
sterling, the German mark, the Swiss franc, the French franc, the Dutch guilder, the Japanese yen and the
Canadian dollar.
sterling, the German mark, the Swiss franc, the French franc, the Dutch guilder, the Japanese yen and the
Canadian dollar.
Kiosk
A small structure suitable for use as a newsstand, display stand, bandstand, study stand etc.
Knocked Down
An article disassembled, or unassembled, or taken apart, or folded, or telescoped to reduce its bulk;
subject to easy assembly. This is usually done to reduce the dimensions of the shipping package and
thereby to save transportation and storage costs.
subject to easy assembly. This is usually done to reduce the dimensions of the shipping package and
thereby to save transportation and storage costs.
Known Loss
1. loss discovered before or at the time of delivery of a shipment.
2. An evident loss (as opposed to a concealed loss or damage to contents within a package.)
3. A loss of which the insured and/or the insurer is aware at the time the insurance is effected.
2. An evident loss (as opposed to a concealed loss or damage to contents within a package.)
3. A loss of which the insured and/or the insurer is aware at the time the insurance is effected.
L
Laissez-faire
A term used to describe minimal governmental involvement in an economy, allowing market forces and
individuals to make their own decisions, with little or no regulation.
individuals to make their own decisions, with little or no regulation.
Landbridge
The movement of cargo (usually in containers) from one foreign country by vessel, transiting another
country by rail or truck, and then being loaded aboard another vessel for delivery to the destination country.
The movement across the country from port to port is the landbridge portion of the transportation.
country by rail or truck, and then being loaded aboard another vessel for delivery to the destination country.
The movement across the country from port to port is the landbridge portion of the transportation.
Lanham Act Of
1947
1947
Federal legislation governing trademarks and trademark registration.
Lay Order
The period during which imported merchandise may remain at the place of unloading without some
action being taken for its disposition.
action being taken for its disposition.
Lead Time
That period of time needed to prepare for an action.
Legal Entity
Any individual, proprietorship, partnership, corporation, association, or other organization that has, in the
eyes of the law, the capacity to make a contract or an agreement, and the ability to assume an obligation
and to discharge an indebtedness.
eyes of the law, the capacity to make a contract or an agreement, and the ability to assume an obligation
and to discharge an indebtedness.
Legal Tender
Any money that is recognized as being lawful for use by a debtor to pay a creditor, who must accept
same in the discharge of a debt unless the contract between the parties specifically states that another
type of money is to be used. It is that money which is lawful for the payment of all debts, public and
private, public charges, taxes, duties and dues.
same in the discharge of a debt unless the contract between the parties specifically states that another
type of money is to be used. It is that money which is lawful for the payment of all debts, public and
private, public charges, taxes, duties and dues.
Less Than
Truckload
Truckload
A shipment which does not completely fill a truck or which weighs less than the weight required for the
application of the truck load freight rate (which is usually a lower freight rate than applied to
less-than-truckload cargo.)
application of the truck load freight rate (which is usually a lower freight rate than applied to
less-than-truckload cargo.)
Letter Of
Assignment
Assignment
A document with which the assignor assigns its rights to a third party, the assignee.
Letter Of Credit
A commitment, usually by a bank on behalf of a client, to pay a beneficiary a stated amount of money
under specified conditions.
under specified conditions.
Letter of Indemnity
A document which the writer issues to another party agreeing to protect them from liability for the
performance of certain acts.
1. In the case of international transportation when a negotiable bill of lading has been issued but is not
available for surrender to the carrier when it is desired to take delivery of the shipment, a bank may issue
a letter of indemnity to the carrier to persuade them to release the cargo. (A Letter of Guarantee may
also be used ). The bank will usually obtain a similar letter from its client to protect itself against the
liability it assumes on behalf of the client.
2. On export shipments, some carriers may permit shippers to issue letters of indemnity to the carriers in
order to secure from them clean bills of lading in place of foul, or to replace lost original bills of lading.
performance of certain acts.
1. In the case of international transportation when a negotiable bill of lading has been issued but is not
available for surrender to the carrier when it is desired to take delivery of the shipment, a bank may issue
a letter of indemnity to the carrier to persuade them to release the cargo. (A Letter of Guarantee may
also be used ). The bank will usually obtain a similar letter from its client to protect itself against the
liability it assumes on behalf of the client.
2. On export shipments, some carriers may permit shippers to issue letters of indemnity to the carriers in
order to secure from them clean bills of lading in place of foul, or to replace lost original bills of lading.
Letter of Intent
A document that describes the preliminary understanding between parties who intend to make a
contract or join together in another action.
contract or join together in another action.
Licensing
Agreement
Agreement
The issuance of a license permitting the use of patents, trademarks, or other technology.
Lift Van
A wooden or metal container used for packing household goods and personal effects.
Lighter
A barge towed by a tugboat and used mainly in harbors and inland waterways for the transport of cargo
to and from ships. Some may be self-powered,
to and from ships. Some may be self-powered,
Lighter Aboard
Ship
Ship
Some ships are constructed to carry special barges (lighters). These barges can go to smaller docks,
go into inland waterways, load cargo at those places, and then carry it back to the ship which lifts the
barges aboard, with their cargo, and transports them overseas. Discharge of cargo is accomplished in
the same manner.
go into inland waterways, load cargo at those places, and then carry it back to the ship which lifts the
barges aboard, with their cargo, and transports them overseas. Discharge of cargo is accomplished in
the same manner.
Lighterage
The loading or unloading of a ship by means of a lighter (barge), especially when shallow waters
prevent an ocean going vessel from approaching a berth, or if berths are unavailable.
prevent an ocean going vessel from approaching a berth, or if berths are unavailable.
Limitation
Period
Period
A maximum period set by a statute within which a legal action can be brought or a right enforced.
.
.
Limited Liability
1. Restricted liability for obligations.
2. (USA) Limitation of Liability Act. A U.S. statute which permits a shipowner to restrict his liability to
whatever value his ship has after an event such as a sinking or collision.
2. (USA) Limitation of Liability Act. A U.S. statute which permits a shipowner to restrict his liability to
whatever value his ship has after an event such as a sinking or collision.
Limited
Partnership
Partnership
A partnership in which at least one of the partners is a general partner who conducts the business and
has personal liability for the partnership debts, and at least one of the other partners is a special partner
who shares in the profits and losses but their liability is limited to the sum they contribute to the
partnership.
has personal liability for the partnership debts, and at least one of the other partners is a special partner
who shares in the profits and losses but their liability is limited to the sum they contribute to the
partnership.
Line Haul
The direct movement of freight between two major ports by a single ship.
Line Haul
Vessel
Vessel
A vessel which is on a regularly defined schedule between ports,
Line Release
System
System
(USA) A separate part of the U.S. Customs' Automated Commercial System used for truck traffic along
the land borders designed for the release and tracking of shipments through the use of personal
computers and bar code technology.
the land borders designed for the release and tracking of shipments through the use of personal
computers and bar code technology.
Liner
A vessel carrying passengers and cargo that operates with a fixed schedule on a particular route.
Liner
Terms
Terms
Conditions under which a shipping company will transport goods, including in the amount payable for
freight the cost both for loading and discharge of the cargo from the vessel.
freight the cost both for loading and discharge of the cargo from the vessel.
Liquidated
Damages
Damages
A sum of money that a contracting party agrees to pay to the other party for breaching an agreement.
Liquidation
1. The act or process of settling or making clear, fixed and determined.
2. The winding up and settlement of a debt.
3. The winding up of the financial affairs of a business.
4. (USA) The final computation or ascertainment of the duties accruing on an entry.
2. The winding up and settlement of a debt.
3. The winding up of the financial affairs of a business.
4. (USA) The final computation or ascertainment of the duties accruing on an entry.
Liquidation
System
System
(USA) A part of U.S. Customs' Automated Commercial System, which closes the file on each entry.
Liquidity
1. The availability of liquid funds in an economy.
2. The status or condition of a person or business in terms of its ability to convert its assets into cash and
to meet its obligations.
3. The capacity of a market in a particular security or commodity to withstand an unusual amount of buying
or selling without affecting the market substantially.
2. The status or condition of a person or business in terms of its ability to convert its assets into cash and
to meet its obligations.
3. The capacity of a market in a particular security or commodity to withstand an unusual amount of buying
or selling without affecting the market substantially.
Lloyds Of London
An English association of insurance underwriters, the oldest of its kind in the world. Not in itself an
insurance company.
insurance company.
Lloyds Registry
An English society, independent of Lloyds of London, which surveys and classifies the ships of the
world according to their description, condition, seaworthiness, and compliance with codes and protocols.
Also establishes standards for maintenance and construction. (Correct name is: Lloyds Register of
Shipping.)
world according to their description, condition, seaworthiness, and compliance with codes and protocols.
Also establishes standards for maintenance and construction. (Correct name is: Lloyds Register of
Shipping.)
Loading
The physical placing of cargo into a truck, a shipping container, or onto a vessel.
Longshoreman
A laborer who loads and unloads ships, handles cargo and containers at shipping terminals, and loads
and unloads containers at shipping terminals.
and unloads containers at shipping terminals.
Lot Labels
Labels attached to each piece of multiple lot shipment for identification purposes. Each lot label will
carry the same number (the lot number) There may also be a consecutive number on each label to
separately identify each package.
carry the same number (the lot number) There may also be a consecutive number on each label to
separately identify each package.
Lower Deck
Containers
Containers
Carrier owned containers specially designed as an integral part of the aircraft to fit in the cargo
compartments of a wide body aircraft. These compartments are on the lower deck of the aircraft below
where the passengers sit.
compartments of a wide body aircraft. These compartments are on the lower deck of the aircraft below
where the passengers sit.
M
Macroeconomics
The study of large scale economic factors affecting an economy
as a whole.
as a whole.
Mail Entry
A means of shipping and entering goods into a CustomsTerritory
through the postal system.
through the postal system.
Mala Fides
In bad faith. (A seller's representation that goods are usable for a
particular purpose when in fact the seller knows that the goods
are not.)
particular purpose when in fact the seller knows that the goods
are not.)
Manifest
1. A document listing and describing the cargo contents of a
carrier, container or warehouse.
2. Evident to the senses, especially to the sight, obvious to the
understanding, evident to the mind, open, clear, visible,
unmistakable, indubitable, indisputable, self-evident.
carrier, container or warehouse.
2. Evident to the senses, especially to the sight, obvious to the
understanding, evident to the mind, open, clear, visible,
unmistakable, indubitable, indisputable, self-evident.
Manufacturer's Identification
Number (MID)
Number (MID)
(USA) An identification number used by U. S. Customs in its
electronic data processing system for each manufacturer whose
goods are shipped to the United States.
electronic data processing system for each manufacturer whose
goods are shipped to the United States.
Maquiladora
A Mexican factory, usually located in a zone close to the US
border, which has special privileges from the Mexican
government to produce goods for the US market. Much of the
work performed in these factories is the assembly of imported
components.
border, which has special privileges from the Mexican
government to produce goods for the US market. Much of the
work performed in these factories is the assembly of imported
components.
Margin
1. In commercial terms the difference between the cost of goods
sold and the total net sales price.
2. The purchase of a stock or a commodity with payment of only
part of the purchase price in cash (called the margin) and the
balance by loan (usually made by the broker.)
sold and the total net sales price.
2. The purchase of a stock or a commodity with payment of only
part of the purchase price in cash (called the margin) and the
balance by loan (usually made by the broker.)
Marginal
Cost
Cost
The increase in the total costs of a producer of producing one
more unit of output, or the decrease in producing one less unit of
output.
more unit of output, or the decrease in producing one less unit of
output.
Maritime
Business pertaining to commerce or navigation by sea.
Market Access
The openness of a national market to foreign products and
services.
services.
Market Disruption
A situation where a surge of imports of a certain product causes
a sharp decline in the domestic sales of that product and creates
a hardship for domestic producers.
a sharp decline in the domestic sales of that product and creates
a hardship for domestic producers.
Market Economy
An economic system where resources are allocated and
production of goods determined by market forces rather than by
government decree.
production of goods determined by market forces rather than by
government decree.
Market Price
The price established in the market where buyers and sellers
compete with each other to negotiate the best prices and terms.
compete with each other to negotiate the best prices and terms.
Marking: Country of Origin
The physical markings on a product that indicate the country of
origin where the article was produced. (With very few exceptions,
the U.S. requires every imported article to be so marked.)
origin where the article was produced. (With very few exceptions,
the U.S. requires every imported article to be so marked.)
Marks
Identification placed on the outer surface of shipping containers
or packages. At one time it consisted of pictures, letters and
numbers. With the advent of computers, pictures are no longer
used. Instructions on the packages for their proper handling,
such as This side up may also be considered part of the marks.
Also the weight and measurements of the packages.
or packages. At one time it consisted of pictures, letters and
numbers. With the advent of computers, pictures are no longer
used. Instructions on the packages for their proper handling,
such as This side up may also be considered part of the marks.
Also the weight and measurements of the packages.
Matador Bond
Bond issued on the Spanish market by an obligor who is not
domiciled in Spain.
domiciled in Spain.
Mate's
Receipt
Receipt
A declaration issued by an officer of a vessel stating that certain
goods have been received on board his vessel.
goods have been received on board his vessel.
Material Contract Terms
Terms in a purchase/sale contract that are considered essential;
they describe the goods, fix the price, fix the quantity, and set the
delivery date.
they describe the goods, fix the price, fix the quantity, and set the
delivery date.
Measurement
Cargo
Cargo
A cargo on which the transportation charge is assessed on the
basis of size or dimensions, instead of upon the gross weight.
basis of size or dimensions, instead of upon the gross weight.
Medium of Exchange
Anything which is widely accepted in payment for goods and
services and in settlement of debts. Its acceptability is based
upon the fact that it can provide a common basis of
measurement of the value of things.
services and in settlement of debts. Its acceptability is based
upon the fact that it can provide a common basis of
measurement of the value of things.
Memorandum Bill of Lading
Sometimes the duplicate (non-original) copies of bills of lading
are marked Memorandum and are intended for informational
purposes only.
are marked Memorandum and are intended for informational
purposes only.
Memorandum of
Understanding
Understanding
An informal record, document, or instrument that serves as the
basis of a future contract.
basis of a future contract.
Merchant's Credit
A form of commercial letter of credit which the buyer, with no
commitment on the part of a bank, sends to the seller via a bank
in the district of the buyer. The seller presents his bill of sale and
evidence of shipment in order to obtain payment from the buyer.
commitment on the part of a bank, sends to the seller via a bank
in the district of the buyer. The seller presents his bill of sale and
evidence of shipment in order to obtain payment from the buyer.
Microbridge
An intermodal movement of cargo which involves a vessel leg to
a port and then a movement via another transportation mode,
truck or rail, to an inland point where the movement terminates. In
the reverse direction, the cargo is picked up at a point inland for
transport via truck or rail to a port where a vessel loads the cargo
and transports it to an overseas port. The land portion of the two
intermodal moves described is the microbridge.
a port and then a movement via another transportation mode,
truck or rail, to an inland point where the movement terminates. In
the reverse direction, the cargo is picked up at a point inland for
transport via truck or rail to a port where a vessel loads the cargo
and transports it to an overseas port. The land portion of the two
intermodal moves described is the microbridge.
Minibridge
An intermodal movement of cargo involving a vessel leg from one
country to a port in another country, and then a movement via
truck or rail to another port in that country, and there the voyage is
terminated. The traversing of the land in the second country from
discharge port to destination port is the minibridge portion of the
movement. There could be a similar but opposite combined
minibridge movement in the other direction.
country to a port in another country, and then a movement via
truck or rail to another port in that country, and there the voyage is
terminated. The traversing of the land in the second country from
discharge port to destination port is the minibridge portion of the
movement. There could be a similar but opposite combined
minibridge movement in the other direction.
Minimum
Charge
Charge
The lowest amount that will be charged regardless of the amount
of service rendered.
of service rendered.
MOD Act
(USA) Customs Modernization and Informed Compliance Act:
Passage 1992, HR 3935.
Passage 1992, HR 3935.
Money
Any denomination of coin or paper currency of legal tender that
passes freely as a medium of exchange.
passes freely as a medium of exchange.
Money Creation
The increase in money supply by the central or commercial
banks.
banks.
Money Market
The market for short term financial instruments (i.e. commercial
paper, treasury bills, discount notes).
paper, treasury bills, discount notes).
Money Market Operations
Creating, investing in, buying and selling short term obligations
in the market for short term debt instruments.
in the market for short term debt instruments.
Money Supply
The amount of cash and bank deposits available in an economy.
Moor
To secure a vessel to an anchor, buoy, or pier.
Moorage
Charges assessed for mooring a vessel to a pier or wharf.
Most Favored Nation
A trade policy commitment on the part of one nation to extend to
another nation tariff rates as low as applies to any other most
favored nations, and to treat imports from that nation without
discrimination.
another nation tariff rates as low as applies to any other most
favored nations, and to treat imports from that nation without
discrimination.
Motor Carrier's Terminal
The place where a motor carrier receives freight, delivers freight
to other motor carriers, temporarily stores freight, loads trucks
and containers, and generally does all the things which a carrier
has to do regarding freight handling and servicing of its trucks
and equipment.
to other motor carriers, temporarily stores freight, loads trucks
and containers, and generally does all the things which a carrier
has to do regarding freight handling and servicing of its trucks
and equipment.
Multilateral Agreement
An agreement among more than two persons, firms, or
governments.
governments.
Multimodal Transport
Transportation which includes at least two modes of transport,
such as shipping by rail and by sea.
such as shipping by rail and by sea.
Multinational Corporation
A corporation having subsidiaries in more than one country.
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