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Terms used in freight forwarding such as B13,back to back,Bunker adjustment factor,Bank Guarantee,Bar Coding etc.
This post explains about terms used in freight forwarding such as Average Bond , B13,back to back,Bunker adjustment factor,Bank Guarantee,Bar Coding,Batch Number,Batch Release,belly freight,Bilateral Transport Agreement etc.These terms used in international business are arranged in alphabetical order and you may add more information about terms used in export business at the end of this article, if you wish.
Terms used in freight forwarding
Average Bond -Also known as a general average agreement. It is a written agreement signed by a consignee wherein he undertakes to accept liability for the general average contribution as determined by the Average Adjuster. After a general average has been declared, a consignee, in order to secure the release of his cargo, would have to provide this bond, together with a deposit or insurer’s guarantee, to the shipowner.
Average:In marine insurance: a loss or damage to or in respect of goods or equipment The numerical result obtained by dividing the sum of two or more quantities by the number of quantities
AVL: See Approved Vendor List
AWB fee -A fee for preparing an AWB
AWB -See Air Waybill
AWB: Airwaybill – see MAWB/HAWB – a non-negotiable contract of carriage for air transportation between an air carrier/shipper or air carrier/air freight forwarder
Awkward Cargo - Cargo of irregular size that is either containerized or un-containerized. It requires prior approval, depending on the circumstances, before confirmation of booking.
B / L:A particular article, stipulation or single proviso in a Bill of Lading. A clause can be standard and can be pre-printed on the B / L.
B/L - Abbreviation for "Bill of Lading."
B/S or B.A.F.:Bunker surcharge or Bunker adjustment factor : Extra charge applied by shipping lines and liner conferences to reflect fluctuations in the cost of bunkers.
B13: Canada Customs export control document showing description of goods, value, country of origin and harmonized code. It also serves as a duty drawback document if the shipper has imported from one country and is shipping to a 3rd country.
B2B: See Business to Business
B2C: See Business to Consumer
BACK TO BACK - A back to back consolidation of a MAWB or consolidation with only one HAWB in it.
BACKHAUL:A return trip or a movement in a direction of or for a purpose of secondary importance.
BAF - Abbreviation for "Bunker Adjustment Factor." Used to compensate steamship lines for fluctuating fuel costs. Sometimes called "Fuel Adjustment Factor" or FAF.
BAF – Bunker Adjustment Factor – FSC for ocean
BAF – Bunker Adjustment Factor; effectively a fuel surcharge.
BAF (Bunker Adjustment Factor) or BSC (Bunker Surcharge) - Surcharge assessed by carrier to freight rates to supplement increased fuel costs.
BAF- See Bunker Adjustment Factor
BAF: Bunker adjustment factor. A fuel surcharge expressed as a percentage added or subtracted from the freight rate.
BAF: Bunker Adjustment Fee. This is a fuel surcharge usually in addition to ocean freight
BAF:Bunker Adjustment Factor - an adjustment to shipping companies' freight rates to take into account fluctuations in the cost of fuel oil (bunkers) for their ships.
BAF:Bunker Adjustment Factor.
Ballast: Heavy weight, often sea water, necessary for the stability and safety of a ship at sea.
Bank Guarantee:A document issued by a bank acting as a guarantor for their customer. The bank's guarantee is accepted because of their status and creditworthiness compared to that of their customer. Often used in conjunction with major projects, in the form of Bid Bonds, Performance Bonds and Warranty Bonds, commonly for 10% of the contract value, all of which provide the buyer with a measure of comfort should the seller not fulfil his obligations at various stages of the contract.
Bank Guarantee:An undertaking by a bank to be answerable for payment of a sum of money in the event of non performance by the party on whose behalf the guarantee is issued.
Bar code scanner: A device to read bar codes and communicate data to computer systems.
Bar Code: A symbol consisting of a series of printed bars representing values. A system of optical character reading, scanning, and tracking of units by reading a series of printed bars for translation into a numeric or alphanumeric identification code. A popular example is the UPC code used on retail packaging.
Bar Coding:A method of encoding data for fast and accurate electronic readability. Bar codes are a series of alternating bars and spaces printed or stamped on products, labels, or other media, representing encoded information which can be read by electronic readers, used to facilitate timely and accurate input of data to a computer system. Bar codes represent letters and/or numbers and special characters like +, /, -, etc.
Barge To Ship:When cargo is loaded directly from the barge to the ocean carrier, therefore avoiding delivery to the wharf.
Barge: The cargo-carrying vehicle used primarily by inland water carriers. The basic barges have open tops, but there are covered barges for both dry and liquid cargoes.
Base Rate - A tariff term referring to the ocean rate less accessorial charges, or simply the base tariff rate.
Batch Number: A sequence number associated with a specific batch or production run of products and used for tracking purposes.
Batch Processing: A computer term which refers to the processing of computer information after it has been accumulated in one group, or batch. This is the opposite of “real-time” processing where transactions are processed in their entirety as they occur.
Batch Release: Orders are released to be fulfilled or picked at specific times during the course of a day. Accumulation of the orders before release results in a batch.
Bay Plan:A stowage plan which shows the locations of all the containers on the vessel.
Bay:A vertical division of a vessel from stem to stern, used as a part of the indication of a stowage place for containers. The numbers run from stem to stern; odd numbers indicate a 20 foot position, even numbers indicate a 40 foot position.
BB (Break bulk) - A term used to describe cargo which does not constitute a full container, or which is palletized, boxed, etc., or large machinery, trucks, etc. Also used to describe cargo, which cannot be containerized due to its size and/or nature.
Belly Cargo: Air freight carried in the belly of passenger aircraft.
BELLY FREIGHT:Cargo that is transported in the lower freight compartments of passenger aircraft.
Beneficiary:The seller in whose favour an L/C is issued, ie the person who will "benefit" from the L/C. (See also Letter of Credit).
Berth:A location in a port where a vessel can be moored often indicated by a code or name.
BIFA – British International Freight Association – the industry body overseeing the freight industry, in the UK.
Bilateral Transport Agreement:Agreement between two nations concerning their transport relations.
Bill of entry: A shipper's detailed statement for customs purposes.
The above details describes about terms called in freight forwarding such as Average Bond , B13,back to back,Bunker adjustment factor,Bank Guarantee,Bar Coding,Batch Number,Batch Release,belly freight,Bilateral Transport Agreement etc.These phrases may help importers and exporters on their day to day business activities. The readers can also add more information about terms used in overseas trade below this post. Terms used in freight forwarding such as Alternate Routing ,anti dumping duty,Arbitrary ,Arrival Notice,arrival notice
The above information is a part of Import Export course online
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