Freight, shipping and chartering glossary

Term Meaning
ABC analysis A method for classifying company resources according to their importance with respect to stocks of raw materials, components, suppliers, customers, etc.
Accessibility A carrier's ability to provide transportation services from an origin to a destination.
Accessorial charges A carrier's fee for additional services specified in the contract, such as loading, unloading, pickup, and delivery.
Action message An alert that an MRP or DRP system generates to modify an existing planned or approved order.
Active stock Goods ensuring the continuity of production supplies or sale of products between two consecutive deliveries.
Activity-Based Costing A method of cost managing associated with the operations of the physical movement of goods, by type of activity and finished product.
Additional Commercial Invoice An invoice with additional information.
Advanced shipment notice A list with the designation of the goods transmitted to a customer or consignor (sometimes includes the expected arrival time).
Affreightment, Contract Of An agreement between the shipowner and the charterer on the hiring of a ship (all or part of its premises) for the carriage of goods. In this case, a consignor undertakes to pay the established fee (freight) for transportation, and a carrier - to deliver the goods to the port of destination.
Agency Fee Payment of agent services for servicing a vessel in a port, that is, for an agent performing the usual functions of representing the interests of a shipowner and assistance to the ship's captain in a port. Sometimes called attendance fee.
Agency tariff Tariffs of an agent for his/her services for carriers.
Agent An authorized person (entity or individual) performing certain actions on behalf of another person (principal) on his behalf and in his interests.
Agglomeration Form of combining different companies into a whole by location.
Aggregate tender rate A special rate for a shipper if you offer more than 2 class-related shipments at the same time and one place.
Air cargo / Air freight Transportation of goods by an air carrier.
Air Cargo Agent A transport company that provides customers with a wide range of services to simplify the transport of goods by air.
Air Cargo Containers This is a pallet or container used to transport air cargo. Air Cargo containers fall into three categories: 1) air cargo pallets 2) lower deck containers 3) box type containers.
Air Carrier Freight forwarding company that provides air transportation services via air.
Air taxi Public means of transport are designed to carry passengers for a fee by air.
Air Waybill A document issued by a consignor or his agent which confirms the existence of an agreement between a shipper and a carrier on the carriage of goods by carrier’s airlines.
Airport and Airway Trust Fund (AATF) A fund that provides funding for federal obligations under the United States aviation system through several aviation-related excise taxes.
Alameda Corridor Surcharge (ACS) Surcharge for a container transported by rail through the ports of Long Beach and Los Angeles.
All Water The term used when transportation is carried out exclusively by water.
All-cargo carrier An air carrier that carries only cargo.
Amazon Reference ID A unique number used by Amazon.com to identify Fulfillment by Amazon (FBA) shipments upon arrival at the warehouse.
Amendment Fee Payment of changes or corrections to the contract or any other legal document of legal significance.
Antidumping Duties (ADD) Determining the correct transportation charges due the carrier; auditing involves checking the freight bill for errors, correct rate, and weight.Additional import duty on goods exported at prices below the normal prices of the world market or domestic prices of the exporting country
Any-quantity rate A rate that doesn’t depend on the quantity of cargo and is the same for any cargo.
Arrival Notice Notification of the estimated time of arrival of the vessel at a specific location (normally the destination).
Assignment One party to an agreement, contract, or financial instrument, with the consent of another party, transfers the rights, obligations, responsibilities, and benefits to a third party.
Audit The term is used to determine the accuracy of freight bills.
Auditing Assessment of the company's activities for compliance with certain criteria and requirements, in accordance with regulatory documents.
Automate Manifest System (AMS) The system used by US Customs for submitting documents they require for electronic declaration of goods coming into the US.
Average cost Total cost, fixed plus variable, divided by total output.