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What are we talking about?

We know that strong relationships need nothing more than good communication. Every Industry has its own terminology and ours even more: logistics is full of specific words and acronyms.


If you know what we are talking about, It's easier for you to choose and, above all, trust us.

BAF: "Bunker Adjustment Factor" is an adjustment to shipping companies' freight rates to take into account fluctuations in the cost of fuel oil (bunkers) for their ships. This surcharge is set quarterly by the Transpacific Stabilisation Agreement. The BAF is charged by ocean carriers per container and varies among trade lanes.

BMSB: "Brown Marmorated Stink Bug" is an insect which feeds on over 100 species of plants, including many agricultural crops. Control of stink bugs is a priority of many Departments of Agriculture around the world. Every year each country releases new BMSB seasonal measures for stakeholders including freight forwarders, treatment providers, importers, and customs brokers.

Demurrage is a charge levied by the terminal to the importer in cases where they have not taken delivery of the full container and move it out of the port/terminal area for unpacking within the allowed line free days.

Detention is a charge levied by the shipping line to the importer in cases where they have taken the full container for unpacking within the free days but have not returned the empty container to the nominated empty depot before the expiry of the allowed line free days.

DO or EDO: "Delivery Order" or "Electronic Delivery Order" is a document, issued in exchange for the Bill of Lading, authorising delivery of the shipment.

Door to Door: when the shipment is collected from the supplier’s door and is flown to the country of destination where the goods are cleared through customs and quarantine control then delivered to the receiver’s door. Duties and taxes are to be paid by the receiving company or individual.

Duties: Depending on the products you purchase, import country’s customs agency may determine you owe a duty. Duties are calculated as a percentage of the customs value of the goods (item + insurance + shipping). The calculation is based on specific customs codes which needs to be checked by an authorised customs broker.

Fumigation/Heat Treatment: a method of pest control that completely fills a container with heat or fumigant poison. It is used during processing of goods to be imported or exported to prevent transfer of exotic organisms. This method also affects the structure itself, affecting pests such as woodborers and drywood termites. The mandatory measures apply to target cargo shipped from all ports in the USA, as well as any European ports which load cargo manufactured or stored in Italy after the beginning of the high-risk season.

HAWB: "House Airway Bill of Lading" is a document issued by a freight forwarder on receipt of goods from shipper agreeing to deliver goods at destination.

LCL: "Less than Container Load" indicates a shipment that is not large enough to fill a standard container and will therefore be grouped and shipped in a container with other part-loads.

FCL: "Full Container Load" indicates a shipment that fills a standard 20′, 40′, 20'OT, 40'OT or 40’HC container. The container is packed by the exporter or forwarder and unpacked by the consignee. The shipping line receives and delivers the cargo as a sealed container unit.

Free Days are two different periods free of charges: "Port Free Days" is the number of days allowed by the port/terminal to keep the containers in the port/terminal area free, after which the port storage tariff will apply. "Shipping Line Free Days" is the number of days allowed for the customer to pick up the full container for unpacking, take it to their warehouse, unpack and return the empty to the container depot.

Hazardous Cargo: a cargo which needs special documentation to be carried can not be transported by airfreight according to the strict guidelines laid down by IATA and ICAO. Please contact our office in order to receive more information about this topic.

HBL: "House Bill of Lading" is a document created by the freight forwarder. The document is an acknowledgement of the receipt of goods that are to be shipped. It is issued to the supplier once the cargo has been received. The document also includes specific information about the items shipped and the value of the shipping contract.

In Gauge: is a special cargo featuring dimensions smaller than or equal to those of the container. This means that an In Gauge cargo can be transported within the physical constraints of a Open Top container.

LO/LO: "Lift On / Lift Off Cargo" is a cargo not packed into a container for transportation. Instead, it’s lifted on and off a vessel by a crane at the point of origin and destination.

MAWB: "Master Airway Bill of Lading" is a receipt issued by an international airline for goods and an evidence of the contract of carriage. It is also a document of title to the goods.

MBL: "Master Bill of Lading" is a document issued by main carrier of goods (such as the shipping line) on receipt of goods from a freight forwarder to deliver at destination as per agreed terms.

OOG: "Out Of Gauge" is a cargo that exceeds the dimensions of a shipping container by length, width, height or all of the above.

PSS: "Peak Season Surcharge" is a variable surcharge that carriers may apply during times of peak demand. It may be applied at any time of year, but tends to be more common before the fall/winter holidays.

THC: "Terminal Handling Charges" is a charge for handling containers and goods at Container Terminals.

Terminal Infrastructure Charges: port access fees, applied per container. It depends base of the vessels arrival terminal.

V.A.T.O.S.: "Valid At Time Of Shipping". The variable surcharges such as BAF and CAF are determined the moment the goods are loaded onto the vessel/aircraft. All stated Additional Costs & Charges are subject to V.A.T.O.S.


This material is general in nature and informative only. It is not intended to be professional advice. Before relying on the material you should obtain appropriate professional advice relevant to your particular circumstances. Links to other websites are inserted for convenience and do not constitute endorsement of material at those sites, or any associated organisation, product or service.

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