LOGISTICS

 What do you mean by dead weight tons?

Deadweight (often abbreviated as DWT for deadweight tonnes) is the displacement

at any loaded condition minus the lightship weight. It includes the crew, passengers,
cargo, fuel, water, and stores. Like Displacement, it is often expressed in long tons or
in metric tons.

 What do you mean by Tonnage?

Tonnage is a measure of the size or cargo capacity of a ship. The term derives from
the taxation paid on tuns of wine, and was later used in reference to the weight of a
ship's.

 What do you mean by Gross Register Tonnage?

Gross Register Tonnage (GRT) represents the total internal volume of a vessel,
with some exemptions for non-productive spaces such as crew quarters; 1 gross
register ton is equal to a volume of 100 cubic feet (2.83 m³), which volume, if filled
with water, would weigh around 2,800 kg or 2.8 tonnes. -It- is always smaller than
volume measured in m³.

 What do you mean by Net Register Tonnage?

Net Register Tonnage (NRT) is the volume of cargo the vessel can carry; ie. the
Gross Register Tonnage less the volume of spaces that will not hold cargo (e.g.
engine compartment, helm station, crew spaces, etc., again with differences
depending on which port or country is doing the calculations). It represents the
volume of the ship available for transporting freight or passengers.

 What do you mean by Gross Tonnage?

Gross Tonnage (GT) is a function of the volume of all ship's enclosed spaces (from
keel to funnel) measured to the outside of the hull framing. The numerical value for a
ship's GT is always smaller than the numerical values for both her gross register
tonnage and the GRT value expressed equivalently in cubic meters rather than cubic
feet.

 What do you mean by Net Tonnage?

Net tonnage (NT) is based on a calculation of the volume of all cargo spaces of the
ship. It indicates a vessel’s earning space and is a function of the moulded volume of
all cargo spaces of the ship.
  What is the difference between Tare weight and Gross weight of
Container?

Tare weight, sometimes called unladen weight, is the weight of an empty vehicle or
container. By subtracting it from the gross weight (laden weight), the weight of the
goods carried (the net weight) may be determined.

 What is the difference between ICD and CFS?

An Inland Container Depot / Container Freight Station may be defined as :-

A common user facility with public authority status equipped with fixed installations
and offering services for handling and temporary storage of import/export laden and
empty containers carried under customs control and with Customs and other agencies
competent to clear goods for home use, warehousing, temporary admissions, re-
export, temporary storage for onward transit and outright export. Transhipment of
cargo can also take place from such stations.

Functionally there is not much of difference between ICD and CFS. Historically
ICD’s are most associated with custom clearance nominated areas in the hinterland
whereas CFS are built near to Gateway ports. Recently the scenario has been changed
where the port concept has come to dry port which offer rail siding as compare to
CFS, built near to dry ports, which are connected by road. For instance CFS PPG to
ICD Tughlakabad, CFS Trident or CFS Albatross to ICD Dadri etc..

 What are the specific functions of ICD’s/CFS’s

The basic functions of ICD/CFS are as follows:

• Receipt and dispatch/delivery of cargo.

• Transit operations by rail/road to and from serving ports.
• Temporary storage of cargo and containers.
• Customs clearance.
• Consolidation and desegregation of LCL cargo.
• Reworking of containers.
• Stuffing and stripping of containers.
• Maintenance and repair of container units.
 What are the basic operations associated with ICD/CFS:

• Rail Siding (in case of a rail based terminal)

The place where container trains are received, dispatched and handled in a terminal.
Similarly, the containers are loaded on and unloaded from rail wagons at the
siding through overhead cranes and / or other lifting equipments.

• Container Yard

Container yard occupies the largest area in the ICD.CFS. It is stacking area were the
export containers are aggregated prior to dispatch to port, import containers are stored
till Customs clearance and where empties await onward movement. Likewise, some
stacking areas are earmarked for keeping special containers such as refrigerated,
hazardous, overweight/over-length, etc.

• Warehouse

A covered space/shed where export cargo is received and import cargo

stored/delivered; containers are stuffed/stripped or reworked; LCL exports are
consolidated and import LCLs are unpacked; and cargo is physically examined by
Customs. Export and import consignments are generally handled either at separate
areas in a warehouse or in different nominated warehouses/sheds.

• Gate Complex

The gate complex regulates the entry and exist of road vehicles carrying cargo and
containers through the terminal. It is place where documentation, security and
container inspection procedures are undertaken.

 What do you understand by the Carrier ?

Carrier means any person actually performing the carriage of the Goods with his own
means of transport (performing Carrier) and any person subject to carrier liability as a
result of an express or implied undertaking to assume such liability (contracting
Carrier).

 What is Bonded Warehouse?

If the importer does not want to use the entire stock immediately or he is not in
position to pay the full customs duty leviable on the goods, he can file an In-To Bond
Bill of Entry for warehousing the goods. Under section 57 of customs Act,1962,
appointing of public warehouses, public warehouses run by Central Warehousing
Corporation or by state warehousing Corporation have come up at all important
centers. In certain cases, customs allow licensing of private bonded warehouse in
under section 58 of Customs act,1962. also. It is not necessary to produce a ‘no
objection certificate’ from Public Bonded Warehouse for the purpose of getting a
private bonded warehouse license. Close customs supervision is exercised over
warehouses.

 What is barge?

Flat bottomed inland cargo vessel for canals and rivers with or without own
propulsion for the purpose of transporting goods. Ships designed to carry either
barges or containers exclusively, or some variable number of barges and containers
simultaneously are called Barge Carrier.

 What is Bay plan?

A stowage plan which shows the locations of all the containers on the vessel.

 What is Berth?

The place beside a pier, quay, or wharf where a vessel can be loaded or discharged.

 What are bonded Goods?

Dutiable goods upon which excise duty has not been paid—i.e. goods in transit or
warehoused pending use. The bond is the agreement entered into by the owner of the
dutiable goods with the Customs and Excise Authority in which he promises to pay
the duty when the goods are released for final distribution or use or in the event of
them being lost or stolen.

 What is Break bulk Cargo?

General cargo conventionally stevedored and stowed, as opposed to bulk or

containerized cargo (examples: palletized cargo, boxed cargo, large machinery,
trucks, and pre-slung cargo).

 What is Bulk cargo?

Unpacked homogeneous cargo poured loose in a certain space of a vessel or container

e.g. oil and grain.

 What is Bulk carrier?

Single deck vessel designed to carry homogeneous unpacked dry cargoes such as
grain, iron ore and coal.

 What is Cargo tonnage?

Most ocean freight is billed on the basis of weight or measurement tons (W/M).
Weight tons can be expressed in short tons of 2000 pounds, long tons of 2240 pounds
or metric tons of 1000 kilos (2204.62 pounds). Measurement tons are usually
expressed as cargo measurement of 40 cubic feet (1.12 meters) or cubic meters (35.3
cubic feet.)

 What are laws governing carriage of goods by sea?

Goods transported by sea are governed by the Carriage of Goods by Sea Act, 1925
and the (Indian) Bills of Lading Act, 1856. Besides, the Merchant Shipping Act, 1958
and the Marine Insurance Act, 1963 are also applicable.

 What do you understand by carrier?

The party undertaking transport of goods from one point to another.

 What is carrier haulage?

The inland transport service, which is performed by the sea-carrier under the terms
and conditions of the tariff and of the relevant transport document.

 What do you understand by cartage?

The trucking, draying or carting of freight. Expression for the rate charged for
picking up the goods from the sender or for house delivery. Comes from when this
was done by cart. Usually refers to small distance (locally inside a pier, for instance).
(also see Drayage, Haulage).

 What do you understand by cellular vessel?

A vessel designed with internal ribbing to permit the support of stacked containers.

 What do you understand by CFS/CFS (Pier-to-pier)?

The term CFS/CFS means cargo delivered by break bulk to carrier's container freight
station (CFS) to be packed by carrier into containers and to be unpacked by carrier
from the container at carrier's destination port CFS.

 What do you understand by CFS/CY (Pier-to-house)?

The term CFS/CY means cargo delivered breakbulk to carrier's CFS to be packed by
carrier into containers and accepted by consignee at carrier's CY and unpacked by the
consignee off carrier's premises, all at consignee's risk and expense.

 What do you understand by CFS/CY (House-to-house)?

 The term CY/CY means containers packed by shipper off Carrier's premises and
delivered by shipper to Carrier's CY and accepted by consignee a t Carrier's CY and
unpacked by consignee off Carrier's premises, all at the risk and expense of cargo.

 What do you understand by CY/CFS (House-to-pier)?

The term CY/CFS means containers packed by shipper of carrier's premises and
delivered by shipper to Carrier's CY, all at shipper's risk and expense and
unpacked by Carrier at the destination port CFS.

 What do you mean by Charter party?

A written contract between the owner of a vessel and the one (the charterer)
desiring to empty the vessel setting forth the terms of the arrangement, i.e., freight
rate and ports involved in the contemplated trip.

A contract of affreightment in writing by which the owner of a ship or other

vessel lets the whole, or a part of her, to a merchant or other person for the
conveyance of goods on a particular voyage in consideration of the payment of
freight. This term is derived from the fact that the contract which bears this name
was formerly written on a card and afterwards the card was cut into two parts
from top to bottom, and one part was delivered to each of the parties, which was
produced when required, and by this means counterfeits were prevented.

 What is chassis?

Special trailer or undercarriage (frame) on which containers are moved over-the-

road. Chassis include devices for locking containers on. Comes in skeletal types,
parallel framing, perimeter frame and gooseneck types.

 What do you understand by Classification society?

An organisation, whose main function is to carry out surveys of vessels, its

purpose being to set and maintain standards of construction and upkeep for
vessels, their engines and their safety equipment.

 What does term consolidation indicates?

The grouping together of smaller consignments of goods into a large consignment

for carriage as a larger unit in order to obtain a reduced rate. An agent which
brings together a number of shipments from various shippers for the same
destination.

 What is Consortium?
 The name for an agreement under which several carriers (possibly of more than
one nation), join together for a common purpose, to rationalize sailings in a trade
and/or to carry each other's cargo.

 What is container?

The term container means a single rigid, non-disposable dry cargo, insulated,
temperature controlled flatrack, vehicle rack portable liquid tank, or open top
container without wheels or bogies attached, having not less than 350 cubic feet
capacity, having a closure or permanently hinged door that allows ready access to
the cargo (closure or permanently hinged door not applicable to flatrack vehicle
rack or portable liquid tank). All types of containers will have constructions,
fittings and fastenings able to withstand without permanent distortion, all the
stresses that may be applied in normal service use of continuous transportation.
All containers must bear manufacturer's specifications.

 What do you mean by TEU/FEU?

TEU - Unit of measurement equivalent to one twenty foot shipping container.

FEU - Unit of measurement equivalent to one forty feet shipping container.

 What do you mean by Container ships?

Ocean going ship designed to carry containers both internally and on deck.
Sometimes called “Cellular” vessels because each cell is designed to the size of
ISO containers.

 What is detention?

Charges assessed by a carrier against the trucking company as a penalty for holding
the carrier’s trailer beyond a designated period of free time as per tariff.

 What is demurrage?

• Money paid by charterer to ship-owner for delay in loading or

discharging of cargo as scheduled in charter party.

• Money paid for excessive time the liner container and/or chassis are kept.

Demurrage refers only to situations in which the charter or shipper, rather than
the vessel's operator, is at fault.

 What do you understand destination?

• Place for which goods or a vehicle is bound.

• The ultimate stopping place according to the contract of carriage.
  What do you understand by term “Documents against
Acceptance”?

Instructions given by a shipper to a bank indicating that documents transferring title

goods should be delivered to the buyer (or drawee) only upon the buyer's
acceptance of the attached draft.

 What is Door delivery?

Service provided for picking-up cargo at a shipper’s place of business and

delivering it to the consignee’s designated place of business.

 What is EDI?

EDI is an acronym of Electronic data Interchange i.e. the transfer of structured data,
by agreed standards from applications on the computer of one party to the
applications on the computer of another party by electronic means.

 What is empty repositioning?

Moving of empty container from Supply point (Where Surplus) to Demand point
(Where required) at the cost of carrier the recovery of which may or may not
recoverable.

 Define Endorsement

The transfer of the right to obtain delivery of the goods Of the carrier by means of
the consignee's signature on the front page of a bill of lading. If the name of the
new consignee (transferee) is not stated, the endorsement is an open one which
means that every holder of the document is entitled to obtain delivery of the goods.

 What do you understand by Equipment?

Material resources necessary to facilitate the transport and handling of cargo.

Transport equipment does under the given circumstances not have the ability to
move by its own propulsion.

 What do you mean by Equipment damage Report?

Abbreviated as EDR, it is a statement concerning damage to equipment, based on a

physical inspection.

 What do you mean by Equipment Interchange report?

 Abbreviated as EDR, it is a statement concerning damage to equipment, based on a
physical inspection.

 What is F.C.L.?

FCL is an acronym of Full Container Load. This term is used to describe a

container that is filled with one person’s goods and sealed as opposed to a shared
container that is filled with a variety of goods belonging to various people.

 Are you aware of Federal Maritime commission?

The independent federal agency charged with administration and enforcement of

the liner regulatory provisions of the Shipping Act of 1916. Steamship lines are
required to file their tariff with the FMC.

 What does term “Feeder” means?

A vessel normally used for local or coastal transport (for carriage of cargo and/or
containers) to and from ports not scheduled to be called by the main (ocean)
vessel, directly connecting these ports to the main (ocean) vessel. feeder ships
are ships of various sizes, but mostly understood to be sea going vessels with an
average capacity of carrying 300 twenty-foot equivalent units (TEU) to 500 TEU.
Feeders collect containers from different ports and transport them to central
container terminals where they are loaded to bigger vessels. In that way the
smaller vessels feed the big liners, which carry thousands of containers. Feeder
service is a service which incorporates a small vessel to transport containers to
and from the "mother" ship. The mother ships carry the high volume to high
volume ports; the feeder vessels carry the small volume to small volume ports
nearby.

Define Forklift.

A machine used to pick up and move goods loaded on pallets or skids.

 What is Free time?

That amount of time that a carrier's equipment may be used without incurring
additional charges.

 What do you understand by Fumigation/

To expose certain spaces to the action of fumes in order to disinfect or kill

vermin. For containers done in line with national legislation.
 What is Gross weight?

Entire weight of goods, packaging and freight car or container, ready for shipment.

 What is haulage?

The inland carriage of cargo or containers between named locations/points.

1. Merchant inspired Carrier Haulage or customer nominated Carrier Haulage or

shipper preferred Carrier Haulage service performed by a sub-contractor of the
merchant.

2. Carrier inspired Merchant Haulage means Haulage service performed by a sub-

contractor of the Carrier.

 IATA stands for International Air transport association

 ICC stands for International chamber of commerce
 IACS stands for International association of classification societies
 AAAA stands for Always Accessible Always Afloat
 AAOSA stands for Always Afloat or Safe Aground. Condition for a vessel
whilst in port
 AAPA stands for American Association of Port Authorities.
 AHP stands for Anchor Handling Purposes.
 AHR stands for Antwerp Hamburg Range
 AHS stands for Annual Hull Survey.
 AHT stands for Anchor Handling Tug.
 AHTS stands for Anchor Handling Tug Supply Vessel.
 AHV stands for Anchor Handling Vessel.
 AS stands for Annual Survey
 ASBA II stands for A Type of Standard Voyage Charter Party Issued by
ASBA
 ASBA stands for Association of Shipbrokers and Agents (U.S.A.) Inc.
 BBHP stands for Bare Boat High Purchase
 BBLS stands for Barrels Capacity
 ISO stands for International standardization organization

What do you mean by Inland carrier?

A transportation line (truck, rail barge) which hauls export or import traffic
between ports and inland points.

 What do you understand by jetty?

A mole or breakwater, running out into the sea to protect harbours or coasts. It is
sometimes used as a landing-pier.
 What is Kyoto convention?

The full name is "International Convention on the simplification and

harmonization of Customs procedures (Kyoto Convention)". It is an international
instrument on the harmonization of Customs techniques which covers all aspects
of Customs legislation. It was done at Kyoto, Japan, on 18 May 1973 and entered
into force in 1974. Since then the growth in international cargo, developments in
information technology and a highly competitive international business
environment have created conflict with traditional Customs methods and
procedures. World Customs Organization (WCO) has therefore revised and
updated the Kyoto Convention to ensure that it meets the current demands of
international trade. The WCO Council adopted the revised Kyoto Convention in
June 1999 as the blueprint for modern and efficient Customs procedures in the
21st century.

 What is Lashing?

A lashing is an arrangement of rope used to secure two or more items together in

a somewhat rigid manner.

 What is L.C.L?

LCL is an abbreviation of Less than container-load. Refers to shipments that do

not completely fill a container and are, therefore, combined with other shipments
at a warehouse to fill a container.

 What is Lighterage?

The carriage of goods within a port area by a barge, e.g. from a vessel to a quay.
The cost of loading or unloading a vessel by means of barges alongside.

 What is you view on Canal Issues

Preparations for the planned Panama Canal expansion programme are finally
underway, with the construction contract for the third set of locks due to be awarded
before the end of 2008. While most of the industry agrees that the expansion is
necessary in order for the Canal to accommodate the larger dimensions of the modern
container fleet, it is clear that the Panama Canal Authority ( ACP ) expects the bulk
of the estimated US $5.25 billion costs of the works to be funded by the industry
through increased tolls.

In the meantime, the ACP faces a more immediate challenge, as the Canal continues
to operate increasingly close to capacity. In addition to short term measures to
mitigate seasonal backlogs in Canal traffic, efforts to overhaul the transit reservation
system have also been introduced to increase the flexibility of the system in order to
maximise usage. However, although recent moves to tailor Canal services more
closely to the needs of individual sectors can only be welcomed, it seems likely that
the ACP will have to become increasingly inventive if it is to ensure customers
receive an acceptable level of service in the run up to the completion of the third set
of locks, scheduled for 2015.

Elsewhere, the Suez Canal Authority announced changes in Canal tolls for 2008
which represent an average increase of around 7%. This follows on from annual
increases of 3% for the last three years. ICS has therefore repeated its requests for a
proper consultation mechanism and appropriate notice periods for any future toll
increases.

 What do you mean by Liner?

A vessel, usually a common carrier, engaged in the carriage of general cargo

along a definite route on a fixed schedule. Liner conference is another term
associated with Liner. A group of two or more vessel-operating carriers, which
provides international liner services for the carriage of cargo on a particular trade
route and which has an agreement or arrangement to operate under uniform or
common freight rates and any other agreed conditions.

 What do you mean by Lloyd's Register of Shipping?

Voluntary association of shipowners, ship builders, engine builders, and

insurance underwriters . Its primary objective is survey and classification of
seagoing merchant ships (of 100 gross tons and over) of any nationality , and
publish that information in its annual Lloyds Register Of British And Foreign
Shipping . Started by the Lloyd's Of London in 1760, it is now an independent
worldwide organization that lays down rules "governing the construction and
maintenance of ships which are universally recognized as the standard best
practice in the merchant ship design principles and marine engineering.” While
several countries have their own classification societies (such as the US
'American Bureau Of Shipping,' and the French 'Bureau Veritas'), nearly 80
percent of the UK tonnage and about 30 percent of other countries' tonnage holds
the classification of Lloyd's Register.

 What is LOLO?

LoLo vessels (Lift on - Lift Off) vessels can transport a range of different
products as a result of their flexible cargo space, container capacity and onboard
cranes. Lift-on/Lift-off (lo/lo) cargo is containerized cargo that must be lifted on
and off vessels and other vehicles using handling equipment. A LOLO operation
is when cargo is loaded and discharged over the top of the vessel using cranes or
derricks. LoLo vessels load and unload cargo at Roll On-Roll Off (Ro-Ro) ports,
Load On-Load Off (Lo-Lo) ports and at unserviced jetties, using its own cranes.
Self-geared Lift-on/Lift-off (Lo/Lo) type vessels are loaded and unloaded by a
crane, which lifts cargo to a specific location on the Lo/Lo ship. The cargo is
loaded pursuant to a specific plan that is necessary in order to balance the Lo/Lo
ships as they are not equipped with ballast-adjusting mechanisms.
  What do you understand by Container yard (CY)?

The term CY means the location designated by Carrier in the port terminal area for
receiving, assembling, holding, storing and delivering containers, and where containers
may be picked up by shippers or re-delivered by consignees. No container yard (CY)
shall be a shipper's, consignee's, NVOCC's, or a forwarder's place of business, unless
otherwise provided.

 What is IMO?

The International Maritime Organization (IMO) is responsible for maintaining and

updating the International Maritime Dangerous Goods Code (IMDG Code) which
governs the vast majority of shipments of hazardous materials by water. The IMDG Code
is intended to provide for the safe transportation of hazardous materials by vessel, protect
crew members and to prevent marine pollution. The Code is based on the UN Model
Regulations but also includes additional requirements applicable to the transport of
hazardous materials by sea (e.g., requirements for marine pollutants, freight containers
loading procedures, stowage and segregation and other requirements applicable to
shipboard safety and preservation of the marine environment) that are not covered by the
UN Model Regulations.

 How do you understand by Red Tariff?

Transportation of hazardous cargo on containers by rail are subject to the statutory

provisions of the IRCA Red Tariff. Railways have also accorded provisional permission
for carriage of dangerous / hazardous / offensive goods which fall under the International
Maritime Dangerous Goods (IMDG) Code in containers, subject to their packing and
stuffing being as per specifications of the IMDG Code.

 What do you understand by mate receipt?

Receipt of cargo by the vessel, signed by the mate (similar to dock receipt)

 What is your view on 100% Container Scanning?

In the summer of 2007, the United States Congress adopted a radical unilateral
requirement for 100% security scanning, by 2012, of each and every in-bound maritime
container, to be conducted at the port of loading overseas. Industry and governments
alike are extremely concerned about the practical implications of this draconian US
measure, and its serious potential to disrupt the flow of world trade.

Apart from the huge costs and logistics involved in x-ray scanning every box loaded on a
ship, such a measure would almost inevitably exacerbate port congestion, which at
several container terminals around the world is already near crisis point. It would
seemingly also require ports to expand in size, since boxes would need to be stored for
longer periods as they wait to be scanned. This comes at a time when several of the
world’s major ports, particularly in Europe , are already operating at around 100% of
their official capacity.
The US law was adopted by Congress for largely political ends, and without the support
of large parts of the administration, both political parties seeking to demonstrate their
tough line on security. The Act is hugely short on detail about implementation, which
will have to be undertaken, and presumably financed, by foreign nations if they wish to
continue trading with the US.

 What do you mean by Merchant Haulage?

Container's trucking done by the sender or a forwarder (as opposed to Carrier Haulage).
It includes empty container-moves to and from hand-over points in respect of containers
released by the Carrier to Merchants

 What is Multimodal Transport?

The carriage of goods (containers) by at least two different modes of transport.

Synonymous with "Intermodal."

 What is the Net Weight?

Weight of the goods alone without any immediate wrapping.

 What is you view on Reducing Shipping’s CO2 Emissions

The challenge of reducing carbon emissions is undoubtedly a critical issue for the
shipping industry; not only with regard to agreeing what level of reduction might be
practical and feasible, but also in respect of the implications of possible solutions for
shipping’s economic well being and its environmental image. The performance of
ships - impressive as it is - has literally become a front page story in many national
newspapers. ICS is at the centre of the global discussions on ships’ CO2 emissions now
being firmly led by IMO , which aims to develop proposals for maritime transport by
early 2009.

In December 2007, ICS hosted what may prove to have been a milestone meeting of
national associations and other shipowner bodies to explore technical, regulatory and
commercial solutions for reducing ships’ emissions. Various expert working groups
have now been established to develop informed industry input on the net environmental
benefits and - very importantly - the commercial implications of possible technical
solutions. These include the possibility of reducing ship speeds (which in several trades
is happening already), the use of alternative fuels, and new energy sources such as solar,
wind and fuel cells. For the foreseeable future, however, fossil fuels will probably
continue to be the predominant source of power for the majority of the shipping industry,
although nothing has been ruled in or out.

What do you understand by on board, oncarrige, on deck?

• On Board : A notation on a bill of lading that cargo has been loaded on board a vessel.
Used to satisfy the requirements of a letter of credit, in the absence of an express
requirement to the contrary.
• On-Carriage : Inland freight movement on the importer’s side.

• On Deck : A notation on a bill of lading that the cargo has been stowed on the open
deck of the ship

What do you understand by open sided Container?

Container with frames with wire-mesh at the sides covered by means of a tarpaulin,
which can be dropped down to give unrestricted access to the sides of the container for
loading or discharging.

What do you understand by open top Container?

A container with a canvas top in place of a solid top allowing loading with an overhead
crane. Used for carriage of heavy, bulky or awkward items, where loading or discharging
of the cargo through a standard container door is not practical; also called Rag Top.

What do you understand by over-dimension Container?

Cargo if exceeds the dimension of the container is termed as over-dimensional. It may be

over-height or over-width or over-length or all. Such cargo can only be accommodated in
open-top, Flat rack, chassis kind of containers.

What do you understand by Packing List ?

Document specifying the contents of each individual package.

What is Pallet?

A small portable wooden frame used as a platform for holding materials for storage or
transportation. It can be considered a handling apparatus, but not a packing unit.
Specially not by the U.S. Customs, who require the package count of what is ON the
pallet.

What do you understand by Payload?

The revenue-producing load carried by a means of transport.

What do you understand by Perishables?

Any cargo that loses considerable value if it is delayed in transportation (Usually refers
to fresh fruit and vegetables).

What do you understand by Pilferage in shipping terms?

As used in marine insurance policies, the term denotes petty thievery, the taking of small
parts of a shipment, as opposed to the theft of a whole shipment or large unit. Many
 ordinary marine insurance policies do not cover against pilferage, and when this coverage
is desired, it must be added to the policy.

What do you understand by Port of Loading (POL) and Port of Discharge (POD)?

• Port of Discharge: The Gateway port where a destined consignment

(shipment) is delivered or discharged for delivery to consignee or for further movement
to Inland point where cargo is destined for.

• Port of loading : The Gateway port where cargo originates or arrives from
Inland point of origin for loading on vessel.

What do you understand by Port Authority?

A government body (city, county or state) which in international shipping maintains

various airports and/or ocean cargo pier facilities, transit sheds, loading equipment
warehouses for air cargo, etc. Has the power to levy dockage and wharfage charges,
landing fees, etc.

What is the pre advise?

Preliminary advice that a letter of credit has been established in the form of a brief
authenticated wire message. It is not an operative instrument and is usually followed by
the actual letter of credit.

What is Pre Carriage?

Inland freight movement on the exporter’s side.

 What is Ramp?

An artificial inclined path, road or track along which wheeled vehicles, cargo and trailers
may pass for the purpose of changing their elevation and facilitating the loading and
unloading operation (e.g. an entrance way into a Roll-on Roll-off vessel

 What is the seal in terms of shipping ?

A device for fastening or locking the doors of containers, which is usually numbered and
which, in fact, provides proof that a container has not been opened since the seal was
applied.

 What do you understand by seaworthiness in shipping terms ?

Fitness of a vessel to travel in open sea mostly related to a particular voyage with a
particular cargo.

 What do you understand by service contract in shipping field ?

As provided in the Shipping Act of 1984, a contract between a shipper (or a shippers
association) and an ocean common carrier (or conference) in which the shipper makes a
commitment to provide a certain minimum quantity of cargo or freight revenue over a
fixed time period, and the ocean common carrier or conference commits to a certain rate
or rate schedule as well as a defined service level (such as assured space, transit time,
port rotation or similar service features). The contract may also specify provisions in the
event of nonperformance on the part of either party.

 What is slot ?
Segment of a container ship's cell into which ONE container is loaded.

 What do you understand by split shipment ?

In case of indirect delivery through consolidation and if split shipment conditions occur
then each split part of the shipment will be delivered in a different consignment but all
consignments identified by the same unique original shipment id.

 What do you understand by stack & stacking ?

• Stack : An identifiable amount of containers stowed in a orderly way in

one specified place on an (ocean) terminal, container freight station,
container yard or depot.

• Stacking : To pile boxes, bags, containers etc. on top of each other.

 What is stowage ?

The placing and securing of cargo in a vessel in such a manner as to provide the utmost
safety and efficiency for the ship and the goods it carries.

 What is stuffing ?

Term used (in the Shipping Industry) to describe the loading of a container.

 What is Tarpulin?

Strong, flexible and waterproof material, usually made by coating cloth with latex or
polyvinyl chloride (PVC).

 What is trailer?

vehicle without motive power, designed for the carriage of cargo and to be towed by a
motor vehicle.
  What is Transhipment?

• A shipment under one Bill of Lading, whereby sea (ocean) transport is 'broken' into two
or more parts. The port where the sea (ocean) transport is 'broken' is the transhipment
port.

• Transfer of cargo from one means of transport to another for on-carriage during the
course of one transport operation.

• Customs: Customs procedure under which goods are transferred under customs control
from the importing means of transport to the exporting means of transport within the area
of one customs office which is the office of both importation and exportation.

 What do you understand by port state control?

The international conventions like SOLAS, STCW and MARPOL form the framework of
the safety, security, training and pollution prevention regulations with which ships should
comply. The primary task of enforcing compliance and the issuing of certificates falls on
the flag State. Under control provisions that date back to the 1929 SOLAS convention,
port States also have certain rights to exercise authority over foreign ships that enter its
ports. Checking that a ship complies with convention standards, is one of those rights. A
ship found to have deficiencies and considered unsafe to proceed to sea is likely to be
detained.
Port State control (PSC) activity has developed along regional lines. In 1982 the Paris
Memorandum of Understanding on Port State Control, now simply referred to as the
Paris MOU, was signed between north European States, Canada and the Russian
Federation. Agreements in South America and Asia quickly followed. The United States,
however, chose to remain outside of any regional grouping and operate its own
programme.

 What is Voyage

A journey by sea from one port or country to another one or, in case of a round trip, to
the same port.

 What is Voyage Number

Reference number assigned by the carrier or his agent to the voyage of the vessel.

 What is you view on recycling of ships?

IMO is curently developing a Convention providing globally applicable ship recycling

regulations for international shipping and for recycling activities.

The disposal of ships and other marine structures raises a wide variety of issues identified
by persons or organisations raising environmental concerns. The vast majority of ships
are broken up on beaches in Asia where concerns have been raised with regard to the
lack of environmental or safety legislation.

The activity is now regarded by the International Labour Organisation as one of the most
dangerous in the world. There are now concerns about health, safety and the environment
in these yards, where ships are run up on exposed beaches and demolished using fairly
simple tools. Shipowners are expected to act responsibly in disposing of their ships to
reputable recycling facilities, but also to do what they can to make sure that the process is
safe. The International Maritime Organization, along with industry, is working on a draft
recycling convention which would provide a global approach to this world-wide
problem. The concern is that other states, or regions, may decide to act unilaterally, and
produce a patchwork of different regulations. The 1972 London Convention and the
OSPAR Convention of 1998 have effectively ruled out the disposal of ships and oil and
gas platforms by dumping at sea.

Shipowners, as far as they are able, are expected to ensure that ships arrive at the
recycling yards with clean tanks, with as small a quantity of hazardous material aboard as
possible. They are also asked to provide a list of all the potentially hazardous materials in
the ship - which may be quite a job, in that a big ship may be more than thirty years old
and have passed through the hands of several owners during its life.

The difficulty is that the decision to scrap a ship is not a hard and fast decision - most
ships do not have a “scrap-by” date. The decision will depend on market conditions,
perhaps because an expensive repair is due, which cannot really be justified, or indeed
the price of scrap steel, which fluctuates greatly. A ship may depart for the recycling yard
only, before she gets there, to be switched into a commercial voyage, as a good cargo has
come up. And even people who buy ships for recycling very often will trade them, until
the price is right to scrap them, or a demolition berth becomes available.