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) |