Glossary

The most important sea freight terms – short and easy to understand.

A

ADSp

German Freight Forwarders’ Standard Terms and Conditions – the standard terms of the German forwarding industry. We work exclusively on the basis of the ADSp 2017.

ATLAS

The IT system of German customs. Export declarations are submitted electronically via ATLAS and the exit of the goods is confirmed.

B

B/L – Bill of Lading

The most important sea freight document. The shipping line confirms receipt of the goods. The original B/L is a document of title: whoever holds it can collect the goods at the destination port.

BAF – Bunker adjustment factor

Shipping line surcharge for fluctuating fuel costs, usually adjusted monthly or quarterly.

Blank sailing

A sailing cancelled by the shipping line – e.g. due to low demand or holidays. The cargo then has to be rebooked onto another vessel.

Booking confirmation

Confirmation from the shipping line of the space reserved on a vessel – with booking number, vessel, departure, closing and container release.

C

Certificate of origin

Certificate issued by the chamber of commerce confirming the country of origin of the goods. Many destination countries require it for import.

CIF – Cost, insurance and freight

The seller pays the sea freight and minimum insurance to the port of destination. However, the risk passes to the buyer on loading at the port of origin.

Commercial invoice

The seller’s invoice to the buyer with description, quantity, value and delivery terms of the goods. It is the basis for customs clearance on export and import.

Cut-off / closing

The latest time by which containers, documents or VGM must be at the terminal or with the shipping line for the cargo to sail on the planned vessel.

CY / CFS

The CY (container yard) is the terminal area for full containers (FCL). At the CFS (container freight station) groupage shipments (LCL) are stuffed and unstuffed.

D

D/O – Delivery order

Release document at the port of destination. Against presentation of the B/L and payment of charges, the consignee receives the D/O and can collect the container.

DAP – Delivered at place

The seller delivers to the agreed place in the destination country and bears costs and risk up to that point. Import duties and taxes are paid by the buyer.

Demurrage

Charge for a full container still at the terminal after the free days have expired – e.g. because the goods were not cleared or collected in time.

Detention

Charge for a container kept outside the terminal after the free days have expired – e.g. while being loaded or unloaded at the customer’s premises.

DGD – Dangerous Goods Declaration

Declaration of dangerous goods for sea freight. The shipper confirms the UN number, class, packing group and quantity. Without a complete DGD the shipping line will not accept the cargo.

E

ECTN / BESC

Electronic cargo tracking notes required before shipment by many West and Central African countries.

EORI number

Identification number for businesses in EU customs procedures. Commercial export declarations are not possible without it.

ETD / ETS / ETA

Estimated time of departure / sailing / arrival – the vessel’s expected departure (ETD or ETS) and arrival (ETA). Times may shift due to weather, port congestion or schedule changes.

ETS surcharge

Surcharge levied by shipping lines to cover the costs of the EU Emissions Trading System (EU ETS), which has applied to shipping since 2024. The amount depends on route and carrier.

EUR.1 / proof of preferential origin

Movement certificate for goods of EU origin. In countries with a free trade agreement it reduces customs duty – often to zero.

F

FCL / LCL

Full container load: one entire container for a shipment. Less than container load: a groupage container in which several shippers share the space.

FOB – Free on board

The seller delivers the goods, cleared for export, on board the vessel at the port of loading. From there, the buyer bears the cost and risk of the sea freight.

Free time

Number of days a container may remain at the terminal or with the customer free of charge before demurrage or detention is charged.

Fumigation

Treatment of a container or goods with gas against pests. Some destination countries require it for certain goods or wooden packaging.

G

GRI – General Rate Increase

General freight rate increase announced by a shipping line for a trade lane from a specific date.

H

HS code (tariff number)

International commodity code under the Harmonized System. The first six digits are the same worldwide; it determines duty rates and import rules.

I

IMDG Code

International Maritime Dangerous Goods Code – the international rules for carrying dangerous goods by sea: classification, packaging, marking, documents and stowage.

Incoterms

International delivery terms of the ICC. They define who bears which costs and risks and where responsibility passes from seller to buyer – currently Incoterms® 2020.

ISPM 15

International standard for solid wood packaging (pallets, crates). The wood must be heat-treated and marked with the IPPC stamp.

ISPS surcharge

Surcharge for security measures in ports and on ships under the International Ship and Port Facility Security (ISPS) Code.

L

LSS – Low Sulphur Surcharge

Surcharge for the more expensive low-sulphur fuel that ships have had to use worldwide since 2020.

M

MRN / exit confirmation

The MRN (Movement Reference Number) is the registration number of the export declaration. Once the goods have left the EU, customs issues the exit confirmation – important as proof for VAT purposes.

MSDS / SDS – Safety Data Sheet

Manufacturer’s data sheet with information on hazards, composition, storage and transport of a substance. It is the basis for checking whether goods count as dangerous goods.

N

NVOCC

Non-vessel operating common carrier – an ocean carrier without its own ships that buys space from shipping lines and issues its own house B/Ls.

O

OOG – Out of Gauge

Oversized cargo that exceeds the dimensions of a standard container. It is loaded on a flat rack or open top; surcharges and special stowage apply.

P

Packing list

List of all packages with quantity, dimensions, weights and markings. We also use it to prepare the load plan.

POL / POD

Port of loading and port of discharge – the ports where the goods are loaded onto and discharged from the vessel.

Pre-carriage / on-carriage

Transport from the shipper to the port of loading (pre-carriage) or from the port of discharge to the consignee (on-carriage) – by truck, rail or barge.

PSS – Peak Season Surcharge

Surcharge charged by shipping lines during periods of high demand, typically before Christmas or Chinese New Year.

R

Reefer

Refrigerated container with its own cooling unit for temperature-controlled goods such as food or pharmaceuticals.

S

Sea waybill

Like a B/L, but not a document of title. The goods are delivered to the named consignee without original documents having to be sent – fast and simple.

Shipper / consignee / notify party

The three parties on the B/L: the shipper sends the goods, the consignee receives them and the notify party is informed on arrival.

SI – Shipping instructions

The shipper’s instructions to the shipping line with details of shipper, consignee, goods, weights and containers. The B/L is issued on this basis.

SOC / COC

SOC (shipper’s own container) belongs to the shipper, COC (carrier’s own container) to the shipping line. With SOC, the carrier’s demurrage and detention do not apply.

T

Telex release

The original B/Ls are surrendered at origin and the release is sent electronically to the destination port. The consignee then no longer needs paper documents.

TEU / FEU

Container units: TEU = one 20-foot container, FEU = one 40-foot container (equal to 2 TEU).

THC – Terminal handling charges

Charges for handling the container at the terminal, split into origin (OTHC) and destination (DTHC).

Transhipment

The container is transferred to another vessel at an intermediate port, e.g. from a large ocean vessel to a feeder ship.

U

UN number

Four-digit United Nations identification number for a hazardous substance, e.g. UN 3480 for lithium-ion batteries. It appears on packaging and documents.

V

VGM – Verified gross mass

The verified gross weight of the packed container. It must be reported to the shipping line and terminal before loading, otherwise the container will not be loaded.

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