Glossary
This section provides a list of terms and conventions used in the Cargo Module, complete with detailed explanations and definitions.
Basis (Functional) Currency
A functional currency is the main currency that a company conducts its business. As companies transact in many currencies but report their financial statements in one currency, the foreign currencies have to be translated into the functional currency.
Bill of Lading, B/L
A legally binding document issued by a carrier that authorizes the carrier to transport goods on their behalf. It details the type, quantity, and destination of the goods being carried and is required for the release of the cargo at the destination port.
Bunker Adjustment Factor, BAF
A fuel surcharge added to freight costs to offset fluctuations in fuel prices.
Freight Invoice
A financial document from a carrier to a client for the cost of transportation services for a freight shipment. It includes information such as freight costs, additional fees, and payment terms. It is formed based on information from one or more bills of lading.
General Cargo
Goods that are packed individually (e.g., boxes, pallets, or colli) and are not transported in bulk or in containers.
Gross Weight
Total weight of goods, including the product, packaging, and any additional materials (e.g., pallets or containers).
Harmonized System (HS) Code
A 6–10 digit international code for classifying traded goods (used by customs authorities to identify goods and apply tariffs, taxes, and regulations).
IMO Number (Vessel IMO)
A unique vessel identifier assigned by the International Maritime Organization.
Net Weight
Net Weight refers to the weight of the goods alone, excluding any packaging or containers.
Port of Discharge, POD
Destination port where cargo is unloaded from the vessel.
Port of Loading, POL
Origin port where cargo is loaded onto a vessel.
Purpose of Payment (PoP) Code
The Purpose of Payment Code is a code used in international trade and banking to specify the reason for a payment. It helps in tracking and categorizing transactions for regulatory and reporting purposes.
Rate of Exchange, RoE
The currency conversion rate used for international payments.
Volume Discount, VD
A price reduction for shipping or purchasing large quantities.