Transport glossary

It isn’t always easy to keep track of all the technical terms used in the transport industry. We have therefore prepared a list of the most common terms:

FCL Full Container Load
LCL Less-than Container Load
TEU Twenty-foot Equivalent Units. A measure for ship containers
BAF Bunker Adjustment Factor. This rate, which covers increasing fuel prices, is set by shipping companies once a month based on oil prices
CAF Currency Adjustment Factor. This rate, which covers devaluation of the currency in which the main cargo is calculated, is set by shipping companies and calculated as a percentage of the main cargo/freight.
PSS Peak Season Surcharges. This charge is calculated for each container in the peak season (from August to November) for containers from Asia to Europe.
Heavy Surcharge This surcharge is imposed on particularly heavy 20-foot containers from the Far East and depends on which shipping company is used and varies from port to port.
Low Sulphur Surcharge Surcharges are imposed on ships sailing in the Baltic Sea, Kattegat, Skagerrak, North Sea and the English Channel.
ISPS International Ship and Port Facility Security – refers to a surcharge resulting from the stricter requirements for transporters and port security. The surcharge is typically calculated per consignment.
Demurrage Demurrage is a charge payable to the owner of a chartered ship in respect of failure to load or discharge the ship within the time agreed. You have about three days to collect a container from the time notification arrives that it is ready.
Customs inspection fee linked to the freight forwarder and the shipping company’s management of the customs papers.
Wharfage A charge paid to the port for handling the container. This charge can vary from port to port.
EXW (Ex Works) (more detailed explanation provided under Incoterms)
FCA (Free Carrier) (more detailed explanation provided under Incoterms)
FAS (Free Alongside Ship) (more detailed explanation provided under Incoterms)
FOB (Free On Board) (more detailed explanation provided under Incoterms)
CFR (Cost and Freight) (more detailed explanation provided under Incoterms)
CIF (Cost, Insurance and Freight) (more detailed explanation provided under Incoterms)
CPT (Carraige Paid To) (more detailed explanation provided under Incoterms)
CIP (Carriage and Insurance Paid to) (more detailed explanation provided under Incoterms)
DAT (Delivered At Terminal) (more detailed explanation provided under Incoterms)
DAP (Delivered At Place) (more detailed explanation provided under Incoterms)
DDP (Delivered Duty Paid) (more detailed explanation provided under Incoterms)