Logistics terms C

CAF - CURRENCY ADJUSTMENT FACTOR

This is a surcharge on the sea freight that shipping lines apply as a correction factor in relation to US Dollar exchange rates and other currencies. The surcharge is usually charged on the basic sea freight rate in order to offset the exchange rate risks.

Capacity/Weight

The total internal container volume (LxWxD) with the weight limitation.

Cargo manifest

The cargo manifest is a list of the goods the ship has on board on arrival in a port. The list contains a detailed enumeration of the part of the cargo that the ship will discharge in that port. The cargo manifest must be submitted to customs on arrival.

Cargo Retention Clauses

Cargo Retention Clauses (CRC) were introduced by charterers because of less cargo delivered due to rising oil prices.

Cargo Tracking Note

A Cargo Tracking Note or Waiver is used in some West African countries so that authorities in the country of destination are provided with information about the goods, the shipper and the consignee as early as the 'pre-arrival phase'. This may be necessary, for example, to comply with the requirements of the ISPS code (International Ship and Port Facility Security code). Waivers contain the following information: name of the shipper, method of shipment, description and value of the goods, name of the vessel and the freight costs. The waivers must be in the hands of the receiving authorities before the ship arrives. Where these waivers must be applied for differs per country. A waiver is mandatory for the following countries: Angola, Benin, Burkina Faso, Cameroon, Central African Republic, Congo, Cote d'Ivoire, DR Congo, Gabon, Ghana, Guinea, Libya, Madagascar, Mali, Niger, Nigeria, Senegal, Tanzania, Togo.

Carriage and insurance paid to

Carriage and insurance paid to (CIP) means that the seller has the same obligations as under CPT. The seller pays the freight charge for the carriage of the goods to the named destination. The risk of loss of or damage to the goods, but also that of any additional costs due to events occurring after the goods have been delivered to the carrier, passes from the seller to the buyer at the moment the goods are handed over to the first carrier. As an additional obligation, the seller must take out cargo insurance against the buyer's risk of loss of or damage to the goods during transport. The seller concludes an insurance and pays the insurance premium. The buyer should note that CIP only obliges the seller to insurance with minimum cover. The term CIP obliges the seller to clear the goods.

Carriage of Goods by Sea Act (COGSA)

An American term, known by the abbreviation COGSA. American federal codification, adopted in 1936, standardising the liability of the carrier under the carrier's bill of lading.

Carriage paid to

Carriage paid to (CPT) means that the seller pays the freight charge for the carriage of the goods to the named destination. The risk of loss of or damage to the goods, and that of any additional costs due to events occurring after the goods have been delivered to the carrier, passes from the seller to the buyer at the moment the goods are handed over to the first carrier. If successive carriers are used for the carriage to the agreed destination, the risk passes when the goods have been delivered to the first carrier. The term CPT obliges the seller to clear the goods. This term can serve for any mode of transport, including multimodal transport.

Carrier

Any person or organisation that undertakes, by means of a contract of carriage, to perform or procure the carriage by rail, road, sea, air, inland waterways or a combination of such modes of transport.

Cash Against Documents (CAD)

A method of payment for goods whereby the buyer only receives the documents with which he becomes the owner of the goods after payment of the goods. A trustee firm is often engaged for this.

Cash in Advance (CIA)

A method of payment for goods whereby the buyer pays the seller in advance for the shipment of the goods. The deal is usually used when the goods, such as specialised machinery, are built to order.

Cash With Order (CWO)

A method of payment for goods whereby payment is made at the time of the order and the transaction becomes binding for both buyer and seller.

CBM

CBM is the abbreviation of cubic meter.

CE marking

The CE marking is a mandatory conformity mark on many products placed on the internal market in the European Economic Area (EEA). The CE marking confirms that a product complies with the EU requirements in the field of consumer safety, health or the environment.

Cell Guides

A fixed system for securing all containers on top of the deck. With cell guides it is virtually impossible to lose a container during rough weather conditions.

Cell position

The location of a cell on board a container ship identified by a code for, respectively, 1) the column, 2) the row and 3) the tier, indicating the position of a container on that vessel.

Cells

The spaces on ships with uniform dimensions within a cargo ship in which standard containers can be loaded for optimal stability and minimal wasted space. On modern ships, cells usually have markings for cranes at each corner to increase the speed and efficiency of loading and unloading containers. The construction system used on modern container ships also enables rapid loading and unloading of sea containers below deck, with the containers loaded in a vertical line, where each container supports the container above it.

Certificate of Analysis

A certificate required by some countries as proof of the quality and composition of food products or pharmaceutical products. The required analysis can be made by a private or government health care institute.

Certificate of Compliance

A Certificate of Compliance is a document certified by a recognised authority, stating that the goods or services concerned comply with the specified specifications. A Certificate of Compliance is also known as a Certificate of Conformity or Certificate of Conformance.

Certificate of Origin (CoO)

A certificate of origin (CoO) is an official document declaring in which country or group of countries a product was manufactured. Many countries outside the European Union require you to send a certificate of origin with the import of goods. The legislation precisely determines under which conditions the origin of goods is established. The Chambers of Commerce have the task of handling and issuing the applications for CoOs.

Certificate of Weight

A certified statement of the weight of a shipment.

CFD

The abbreviation CFD stands for Congestion Fee Destination.

CFR (CNF - Cost and Freight)

This means that the seller must pay the costs and transport to bring the goods to the named port of destination, but the risk of loss of or damage to the goods, as well as that of any additional costs due to events occurring after the goods have been delivered on board the ship, passes from the seller to the buyer when the goods pass the ship's rail at the port of shipment. The term CFR obliges the buyer to clear the goods. This term can only be used for sea transport and inland waterway traffic.

CFS

Abbreviation for Container Freight Station.

CHARGEABLE WEIGHT

In air freight, the total chargeable weight is determined by charging each cubic meter (cbm, cubic meter) at 166.67 kilograms. If a shipment of two cubic meters weighs 100 kilograms, then the chargeable weight is 333.5 kilograms (2 cubic meters x 166.67 kilograms). However, if the actual weight of the same shipment is 500 kilograms - higher therefore - then that is the actual number of kilos that will be charged. To know the chargeable weight (CW), the actual weight must therefore be compared with the chargeable volumetric weight. The chargeable weight is the highest weight from this comparison.

Chargeable weight

Chargeable weight originated as a conversion factor within air freight to bridge the distinction between volume and weight. After all, 1,000 kg of feathers requires a larger volume than 1,000 kg of lead. To be able to charge for this distinction equally, conversion factors have been agreed. For air freight, 1 cbm equals 167 kg. For sea freight LCL it is stated that 1 cbm corresponds to 1,000 kg, while for road transport 1 cbm corresponds to 333 kg (3 x measuring). The highest weight (volume or actual) is charged.

China Classification Society (C.C.S.)

China Classification Society (CCS) is a ship classification society, founded in 1956 as a non-profit organisation in the People's Republic of China for carrying out classification surveys, certification surveys and notarial surveys of ships including offshore installations, containers and related industrial products at home and abroad. CCS also carries out statutory work on behalf of the Chinese government and other flag administrations. CCS joined the International Association of Classification Societies (IACS) as a full member in May 1988.

China Import Service Fee

On all LCL imports from China and Hong Kong, a so-called China Import Service Fee (CISF) is charged. At a few warehouses, unfortunately, deviating unloading costs are charged.

CIF (Cost, Insurance and Freight)

Here the seller has the same obligations as under CFR. So the seller must pay the costs and freight to bring the goods to the named port of destination, but the risk of loss of or damage to the goods, as well as that of any additional costs due to events occurring after the goods have been delivered on board the ship, passes from the seller to the buyer when the goods pass the ship's rail at the port of shipment. As an additional obligation, the seller must take out marine transport insurance against the buyer's risk of loss of or damage to the goods during transport. The seller concludes an insurance contract and pays the insurance premium. The buyer should note that the delivery condition CIF only obliges the seller to insurance with minimum cover. The term CIF obliges the seller to clear the goods. This term can only be used for sea transport and inland waterway traffic.

CIP (Carriage and Insurance Paid To)

CIP means that the seller has the same obligations as under CPT. So the seller pays the freight charge for the carriage of the goods to the named destination. The risk of loss of or damage to the goods, as well as that of any additional costs due to events occurring after the goods have been delivered to the carrier, passes from the seller to the buyer from the moment the goods are handed over to the first carrier. As an additional obligation, the seller must take out cargo insurance against the buyer's risk of loss of or damage to the goods during transport. The seller concludes an insurance and pays the insurance premium. The buyer should note that CIP only obliges the seller to insurance with minimum cover. The term CIP obliges the seller to clear the goods.

Classification yard

A marshalling yard or classification yard is a railway yard where trains or individual wagons are split and reassembled.

Clearing for export

The customs formalities that take place when the goods leave the country.

Closing Date

The last day on which the shipping line still accepts cargo for a particular crossing. Freight offered after the closing date is called 'shut out' goods.

CMR

For transport by road, the CMR document is mandatory. CMR stands for 'Convention Relative au Contrat de Transport International de Marchandises par la Route'. This is an international agreement setting out the rights and obligations of the parties involved in road transport; sender, carrier and consignee. A CMR is not negotiable.

COA

COA (Contract of Affreightment) means that the owner of the ship accepts a certain return per cargo on a certain number of voyages.

Commodity

Any product to be transported that can be bought and sold.

Commodity code

See HS codes. Goods that are most produced and traded are classified and coded to indicate unambiguously, internationally, which goods are involved.

Commodity code

The Harmonized Commodity Description and Coding System (HS code) of the tariff nomenclature is an internationally standardised system of names and numbers for classifying trade goods. The HS code system is based on a 6-digit nomenclature. Countries have expanded this to 10 digits for import and 8 for export. Almost 200 countries worldwide use these HS codes as a basis for: - Import duties - Trade statistics - Origin regulations - Trade agreements - Monitoring controlled goods (such as weapons, waste and protected animals) - Risk analyses - Customs information systems Because the HS code is subject to development, it must be ensured that the codes used remain up-to-date. Usually the HS code stated by the supplier is sufficient, but with new technologies, for example, there is often ambiguity. Is that new phone now a camera or not? However, to be completely certain that the correct HS code is used on import, it is better to apply for a Binding Tariff Information (BTI). This applies throughout the EU if it concerns an identical product. The HS code system is developed and maintained by the World Customs Organization (WCO), an independent organisation at government level with about 160 members, based in Brussels. The HS code is also known as commodity code, statistical code, statistical number or tariff code.

Commodity rate

A published rate applicable to the import of a specific article or specific articles.

Community transport

Community transport is transport between two EU countries, Norway or Switzerland. It does not matter whether non-EU countries are also in between during the transport. The carrier does not have to be established in the country of departure or arrival.

Confirmed Letter of Credit

A letter of credit issued by a foreign bank whose validity has been confirmed by a domestic bank. An exporter with a confirmed letter of credit is assured of payment, even if the foreign buyer or foreign bank defaults.

Congestion

A queue of ships in a port waiting for a berth to become available in order to load and/or unload. A 'Congestion Surcharge' may be charged to offset the costs of the waiting time.

Consignee

The person or company to whom a seller or shipper sends trade goods and who, on presentation of the necessary documents, is recognised as the owner of the goods for the purpose of declaring and paying customs duties.

Consignor

The consignor, in a contract of carriage, is the person who sends a shipment to be delivered to an agreed address, whether by land, sea or air.

Consolidate

The grouping of various shipments to fill into a single container.

Consolidated Cargo

Cargo with the shipments of two or more shippers, usually coordinated by an intermediary.

Consolidated Container

A container filled with various shipments from various shippers for delivery to one or more consignees.

Consolidated Shipment

An arrangement whereby various shippers combine their goods in the same shipment, with the total weight costs for the shipment being shared.

Consolidation

The combination of many small shipments into one container.

Consolidator

A person or company that performs a consolidation service for others. Benefits from lower FCL rates (Full Container Load) and the savings are passed on to the customers.

Container

A container (also known as a freight container, ISO container, shipping container) is a standardised reusable steel box used for the safe and efficient storage and movement of materials and products within a global containerised intermodal freight transport system. 'Intermodal' means that the container can be moved from one mode of transport to another (ship, train, truck) without unloading and reloading the contents of the container. There are about 17 million intermodal containers in the world of various types for various cargoes. For air freight, the alternative and lighter IATA-defined Unit Load Device is used. Non-container methods of transport include bulk cargo, general cargo and tank trucks, tank wagons or tankers used for liquids or gases.

Container Equivalents (FEU / TEU)

The twenty-foot equivalent unit (often TEU or teu) is an inexact unit of cargo capacity often used to describe the capacity of container ships and container terminals. It is based on the volume of a 20-foot-long (6.1 m) intermodal container, a standard metal box that can easily be transferred between different modes of transport, such as ships, trains and trucks.

Container Number

ISO 6346 is an international standard managed by the International Container Bureau (BIC) for the coding, identification and marking of intermodal containers.

Container Terminal

An area designated for the storage of cargo in containers, usually accessible by truck, rail and sea transport. Containers are picked up, set down and maintained here.

Conventional shipment

Goods that, due to exceptionally large dimensions or weight, cannot be transported in or on a container by (sea) ship. If these goods are transported by a special (read: non-container) ship, we speak of conventional shipment. When the sea transport is nevertheless carried out by container ship, this is referred to as breakbulk shipment.

Country of Origin

The country where the goods were grown, extracted or manufactured in accordance with the customs regulations. In cases where the country of origin cannot be determined, transactions are credited to the country of shipment.

CPT (Carriage Paid To)

CPT means that the seller pays the freight charge for the carriage of the goods to the named destination. The risk of loss of or damage to the goods, as well as that of any additional costs due to events occurring after the goods have been delivered to the carrier, passes from the seller to the buyer from the moment the goods are handed over to the first carrier. If successive carriers are used for the carriage to the agreed destination, the risk passes when the goods have been delivered to the first carrier. The term CPT obliges the seller to clear the goods. This term can serve for any mode of transport, including multimodal transport. In the Netherlands, the term ENF (Effective Net Free) is also used for this.

Credit limitation charge

Credit limitation charge: various costs are paid in advance for the customer by the freight forwarder. Because this often involves net costs that are passed on one-to-one, a commission can be charged in the form of a percentage of the amount advanced. This is also sometimes called an advance fee commission.

Cube Out

A container that reaches its volumetric capacity before the permitted weight limit.

Currency Surcharge

When the freight is paid in foreign currency and when that currency is subject to large exchange rate fluctuations, the shipping line sometimes charges a currency surcharge or CAF (Currency Adjustment Factor) to offset those exchange rate risks. This is usually charged as a percentage of the basic sea freight.

Currency surcharge

When the freight is paid in foreign currency and when that currency is subject to large exchange rate fluctuations, the shipping line sometimes charges a currency surcharge (CAF) to offset those exchange rate risks. Usually this is charged as a percentage of the basic sea freight.

Customs

The government agency (customs) charged with enforcing the rules to protect the country's import and export revenues.

Customs clearance (export)

Customs formalities on the export of goods.

Customs clearance (import)

Customs clearance is the declaration to customs for import and the release into free circulation of incoming goods. Such goods come from outside the European Union and, by means of this administrative handling, customs duties are levied on them. These customs duties can include, among other things, import duties, VAT on import, excise duty and agricultural levies. To be able to clear goods, you must have a customs licence and customs security.

Customs Cleared

Term usually used when freight has been declared to customs and all excise duties and VAT have been paid and goods are subsequently free from customs control.

Customs duties

Customs duties or import duties are taxes with which countries try to protect their own market against foreign products. They are erected as a trade barrier to give domestic products an advantage. Import duties on goods are levied on the basis of the statistical code, the country of origin and the statistical value, or for some agricultural products per (weight) unit. To determine the correct import duty factor, you can seek advice from your contact person.

Customs value

The customs value or statistical value is the value of a good at the border of the EU. It is used by customs in order to be able to levy duties on import, among other things. Because the border of the EU lies at an imaginary border somewhere at sea, customs sets the customs value on import equal to the CIF value.

Cut-off time

See Closing Date.