Giving up the proprietary rights in insured property to the underwriter in exchange for payment of a constructive total loss.
Notice of Abandonment Waiver Clause
Acceptance by the carrier of a portion of a joint rate or charge which is less than the amount which it would receive for the service in the absence of such joint rate or charge (air cargo).
Agreement to pay at some future date – a “time draft” drawn on the accepting party.
Acceptance of Goods
Process of receiving a consignment from a shipper, usually against the issue of a receipt. As from this moment and at this place the carrier’s responsibility for the consignment begins.
Approved Continuous Examination Program
Acknowledgement of Receipt
Notification relating to the receipt of, for example, goods, messages and documents.
Air Cargo Process. Computer system used at UK airports as an intermediary between airlines, airports authorities, agents and customs declarations.
Act of God
Natural event, such as floods, storms, lightning, earthquakes, etc., not preventable by human agency. Forces of nature that a carrier has no control over, and therefore cannot be held accountable for.
Synonym: Force Majeure
Actual Total Loss
This occurs when: 1. The insured property is completely destroyed; or 2. The insured is irretrievably deprived of the insured property; or 3. Cargo changes in character so that it is no longer the thing that was insured (e.g., cement becomes concrete) or 4. A ship is posted “missing” at Lloyd’s, in which case both the ship and its cargo are deemed to be an actual total loss.
Notice of Abandonment
Actual Voyage Number
Code for identification purposes of the voyage of a vessel.
Mode of freight or customs duties levied on cargo based on its value.
Ad Valorem Duty
Ad Valorem Bill of Lading
Same as Valued Bill of Lading.
Ad Valorem Duty
Tax imposed on merchandise based on its value.
Value attributed to products, and services as the result of a particular process (e.g. production process, storage, transport).
Articles Dangereux de Route
Down payment on account of final invoice amount.
Advance against Documents
Down payment in exchange for original shipping documents.
Same as Prepaid Freight.
Interline carrier that picks up cargo from the shipper and delivers it to another carrier for shipment to the consignee.
Exposure of property to risk.
General Average Act (York-Antwerp Rules)
Written shipment information, for example, about the status of the goods.
Advice of Fate
Notice given by the collecting bank to the remitting bank as to payment, acceptance, non-payment, or non-acceptance of a draft presented at the remitting bank’s request.
Bank that handles Letters of Credit (L/C) for a foreign bank by notifying the seller that the buyer has opened a L/C in their favor. The advising bank fully informs the seller of the conditions of the Letter of Credit.
Confirmed Letter of Credit
Term indicating that agent or representative is not empowered to make definitive decisions or adjustments without approval of the group or individual represented.
Special accessories in a container consisting of, among other things, the attachment rails on the inside walls to provide facilities for lashing and securing of the cargo.
Contract which sets forth the obligations of both shipper and carrier concerning transportation of the merchandise. The most common forms of affreightment are Bills of Lading and Waybills.
At, near or towards the stern or rear of a vessel or an aircraft.
Fee payable by shipowner or ship operator to port agent.
A company (or person) which does business on behalf of another company based on a contractual agreement.
Inventory for any group of items or products, involving multiple stock-keeping units.
Synonym: Aggregate Stock
Airline operating regional passenger traffic.
Air Consignment Note
Abbreviation: AWB. Document used for carriage by air, evidencing the conclusion of a contract of carriage. This is a non-negotiable document of air transport that serves as a receipt for the shipper, indicating that the carrier has accepted the goods listed and obligates itself to carry the consignment to the airport of destination according to specified conditions.
Consignment Note Bill of Lading Through Bill of Lading
Abbreviation: A.R. Broadest form of insurance cover available, providing protection against all risks of physical loss or damage from any external cause. Does not cover loss or damage due to delay, inherent vice, pre-shipment condition, inadequate packaging or loss of market.
ICC Named Perils Policy
Share of the capacity of a means of transport assigned to a certain party, e.g. a carrier or an agent, for the purpose of booking cargo for a specific voyage.
Phrase referring to the side of a ship. Goods to be delivered “alongside” are to be placed on the dock or barge within reach of the transport ship’s tackle so that they can be loaded aboard the ship.
Free Alongside Ship (FAS)
Designed for clients with a small turnover of Goods in Transit. A deposit premium is paid and this is adjusted at the end of the year based on declarations made.
1. A vessel’s outfit, such as rigging, anchor and life boats. 2. The term used in distribution/transport of clothing for a single piece of clothing – a garment.
Approved Continuous Examination Program
Abbreviation: ACEP. Agreement between the owners of the equipment and the responsible government body to allow continuous examination of the equipment (e.g. containers).
Vessel which the underwriters deem adequate to carry the insured cargo, at the agreed rate of premium. Where the vessel is not approved, the risk is still covered but is subject to a reasonable additional premium.
Buying of foreign exchange, securities, or commodities in one market and the simultaneous selling in another market. By this manipulation a profit is made because of the difference in the rates of exchange or in the prices of securities or commodities involved.
Code specifying an area.
Zone Improvement Plan (ZIP)
Notice sent by a carrier or freight forwarder to notify party advising the arrival of a shipment.
Articles Dangereux de Route
Abbreviation: ADR. European agreement concerning the international carriage of dangerous goods by road.
Stage of production in which components are put together into an end product.
Transfer of the rights, duties, responsibilities and/or benefits of an agreement, contract, or financial instrument to a third party.
Assignment of Proceeds
Stipulation within a Letter of Credit in which some or all of the proceeds are assigned from the original beneficiary to one or more additional beneficiaries.
Party that has legal title to the cargo and to whom a claim payment will be paid.
1. Behind a vessel or an aircraft. 2. Backward; in a reverse direction.
Across the vessel, i.e., from one side to the other.
Fore and Aft Stowage
Methodical examination and review of a situation or condition (as within a business enterprise) concluding with a detailed report of findings.
Proof by means of a signature or otherwise that a certain document or certain data is of undisputed origin and is genuine.
Commission to a certain person or body to act on behalf of another person or body.
Container equipped for the transportation of vehicles.
Automated Guided Vehicle System
Unmanned vehicles equipped with automatic guidance equipment which follow a prescribed path.
Means of identifying an item (e.g. a product, parcel or transport unit) by a device entering the data automatically into a computer. The most widely used technology at present is bar code; others include radio frequency, magnetic stripes and optical character recognition.
Any loss or damage due to insured perils that is less than a total loss. Two types of average occur: Particular Average and General Average.
In general average adjusters are entrusted with the task of apportioning the loss and expenditure over the parties interested in the maritime venture. They also determine which expenses are to be regarded as average or general average.
Clause in marine policy which sets out the cover provided in the event of partial loss.
Average Irrespective of Percentage
Indicates that partial losses will be paid regardless of any franchise or percentage.