The Secret to Understanding the Freight Rate Sheet – Abbreviations

Aden War Risk Surcharge – A surcharge on goods transiting the Gulf of Aden used to compensate shippers for additional costs including crew risk compensation, cancellation of economical speed, and redeployment of vessels.

Ad Valorem – A term from Latin meaning, “according to value.” An import duty applied as a percentage of the cargo’s dutiable value.

AI – Abbreviation for “All Inclusive.” The total price to move cargo from origin to destination, inclusive of all charges (limited to transportation costs).

Arrival Notice – A notification by carrier of ship’s arrival to the consignee, the “Notify Party,” and – when applicable – the “Also Notify Party.”

BAF – Abbreviation for “Bunker Adjustment Factor.” Used to compensate steamship lines for fluctuating fuel costs. Sometimes called “Fuel Adjustment Factor” or FAF.

Base Rate – The cost of shipping a container from one point to another. Rates fluctuate frequently based on a number of different factors.

BL Fee – “Bill of Lading Fee.” A fee charged by the shipping line for the processing of the bill of lading on behalf of the client.

BUC – Abbreviation for “Bunker Charge.” An extra charge sometimes added to steamship freight rates; justified by higher fuel costs. Also known as Fuel Adjustment Factor or FAF.

CAF – Abbreviation for “Currency Adjustment Factor.” A charge, expressed as a percentage of a base rate, that is applied to compensate ocean carriers of currency fluctuations.

Cargo Data Declaration Fee – A surcharge assessed for the additional costs of declaring cargo information in advance to the European Union authorities as required for authorities to evaluate any potential security and safety threats.

Carrier РAny person or entity who, in a contract of carriage, undertakes to perform or to procure the perfor­mance of carriage by rail, road, sea, air, inland waterway or by a combination of such modes.

CBM (CM) – Abbreviation for “Cubic Meter.”

CFS – Abbreviation for “Container Freight Station.” A shipping dock where cargo is loaded (“stuffed”) into or unloaded (“stripped”) from containers. Generally, this involves less than containerload shipments, although small shipments destined to same consignee are often consolidated. Container reloading from/to rail or motor carrier equipment is a typical activity. These facilities can be located in container yards, or off dock.

Chassis Utilization Surcharge – A fee imposed for the use of a chassis in conjunction with the shipping container to facilitate overland transportation.

CL – Abbreviation for “Container load”.

COD – Abbreviation for “Collect (cash) on Delivery.”

Congestion – The term used for situations where ships have to queue up and wait for a spot so they can load or offload.

Container Yard (CY) – A materials-handling/storage facility used for completely unitized loads in containers and/or empty containers. Commonly referred to as CY.

CSF – Abbreviation for “Carrier Security Fee.” Charges for security of cargo during the shipment.

Customs – A government agency charged with enforcing the rules passed to protect the country’s import and ex¬≠port revenues.

Customs Filing Fee – A fee paid to the customs broker for arranging your customs clearance.

Customs Formalities – Requirements referring to customs regulations including documentation, security, information and physical inspection responsibilities.

CYRC – Abbreviation for “Container Yard Receiving Charge.”

DDC – Abbreviation for “Destination Delivery Charge.” A charge, based on container size, that is applied in many tariffs to cargo. This charge is considered accessorial and is added to the base ocean freight. This charge covers crane lifts off the vessel, drayage of the container within the terminal and gate fees at the terminal operation.