Gloval Shipping

Logistics Glossary

Dictionary of international trade terms, acronyms, and concepts with a LATAM focus. 81 entries and growing.

81 results
A
4 terms
AEO

Authorized Economic Operator

Customscompliance

Customs status granted to companies with an exemplary compliance record. Benefits include reduced inspections, priority clearance, and mutual recognition between countries.

ALADI

Latin American Integration Association

LATAMLATAM

Economic integration bloc of 13 LATAM countries. Administers tariff preferences and bilateral trade agreements.

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ATA

ATA Carnet

Customs

International customs document for duty-free temporary import (samples, professional equipment, exhibitions). Valid for up to 1 year.

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AWB

Air Waybill

Documentsaéreo

Air transport document issued by the airline or consolidator. Acts as a receipt and contract of carriage. Unlike the ocean BL, it is NOT a document of title (not negotiable).

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B
5 terms
BAF

Bunker Adjustment Factor

Fees & charges

Fuel surcharge on ocean freight. Offsets bunker fuel price swings. Charged as a % or fixed amount per container.

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BL

Bill of Lading

Documents

Ocean transport document issued by the carrier or NVOCC. Serves three roles: cargo receipt, contract of carriage, and document of title (negotiable, transfers ownership).

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Booking

Operations

Space reservation on a vessel or cargo flight. Assigns booking number, vessel, voyage, and cut-off.

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Break-bulk

Transport

General cargo that is NOT containerized — handled piece by piece (vehicles, heavy machinery, bags, coils). Requires specialized vessels.

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Bulk

Transport

Loose cargo carried without packaging (grain, minerals, liquids). Bulk carrier for dry, tanker for liquid.

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C
8 terms
CAF

Currency Adjustment Factor

Fees & charges

Currency surcharge on ocean freight. Offsets USD swings against the carrier's local currency.

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CAN

Andean Community

LATAMLATAM

Economic bloc made up of Bolivia, Colombia, Ecuador, and Peru. Operates an internal free-trade area (NANDINA as the common tariff).

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CFS

Container Freight Station

Operations

Warehouse where LCL containers are stuffed or stripped. Typically inside or near the port.

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Consignee

Documents

Party to whom the goods are delivered at destination. Shown on the BL as the cargo owner on arrival. NOT necessarily the buyer.

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Consolidation

Operations

Grouping multiple LCL shipments into a single container to optimize freight. Done by a consolidator (NVOCC or forwarder).

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COO

Certificate of Origin

Documents

Certifies the country of origin of the goods. Required to claim tariff preferences under FTAs (CAN, MERCOSUR, USMCA, ALADI).

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Cut-off (Stack date)

Operations

Deadline to deliver the container at the terminal before vessel departure. After cut-off, the carrier no longer guarantees loading on the booked vessel.

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CY

Container Yard

Operations

Container yard inside the port terminal. Drop-off point for the FCL at origin and pickup point at destination.

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D
7 terms
DAU

Single Customs Declaration (LATAM)

LATAMLATAM

Customs document used in several LATAM countries (Ecuador, Bolivia, Colombia with variants) to declare imports/exports. Equivalent to the European SAD.

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Demurrage

Fees & charges

Charge for keeping the container INSIDE the port terminal beyond the free time after arrival. Billed by the carrier.

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Detention

Fees & charges

Charge for keeping the container OUTSIDE the terminal (at the consignee's premises) beyond the free time. Different from demurrage.

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DGD

Dangerous Goods Declaration

Documentspeligrosos

Formal shipper declaration for hazardous shipments (IMDG by sea / IATA-DGR by air). Signatory must be certified.

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DIAN

DIAN — National Tax and Customs Authority of Colombia

LATAMColombia

Colombia's customs and tax authority. Administers SIIA (Integrated Customs Information System).

Drayage

Transport

Short-distance road transport between port/terminal and warehouse or CFS. Typically by truck.

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DUA

Single Customs Declaration (Peru / Ecuador)

LATAMPerúEcuador

Main customs clearance document in Peru and Ecuador — declares cargo, value, origin, and regime to SUNAT/SENAE.

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E
3 terms
ETA

Estimated Time of Arrival

Operations

Estimated date and time of arrival at destination port/airport. Subject to operational delays.

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ETD

Estimated Time of Departure

Operations

Estimated date and time of departure from origin port/airport.

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Express BL / Telex Release

Documents

Mode without issuing a paper original BL. The carrier releases the cargo to the consignee without paper presentation — confirmed via a shipper 'telex release'.

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F
7 terms
FCL

Full Container Load

Transport

Mode where a single shipper fills a complete container (20', 40', 40HC, 45HC). Charged per container, not by volume.

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Feeder vessel

Transport

Small vessel that moves cargo between a main hub (like Manzanillo or Cartagena) and secondary LATAM ports. Provides coverage without the mother vessel calling each port.

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FEU

Forty-foot Equivalent Unit

Containers

Measurement unit equal to one 40' container. 1 FEU = 2 TEU. Used to size vessel capacity and traffic volume.

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Flat Rack

Containers

Container without side walls or roof, only a reinforced floor. For oversized cargo (over-height or over-width) that doesn't fit in a standard box.

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Freight Forwarder

General

Logistics operator that arranges international transport on behalf of the shipper or consignee. Doesn't move the cargo directly — books carriers, airlines, and trucking.

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Free time

Fees & charges

Free days the carrier grants for container use without demurrage or detention. Typically 3–7 days in LATAM, negotiable by volume.

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Freight collect / prepaid

Fees & charges

Collect = freight billed to the consignee at destination. Prepaid = shipper pays at origin. Defines who pays the carrier.

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G
1 term
GRI

General Rate Increase

Fees & charges

Industry-wide ocean freight rate increase applied by carriers, typically at the start of each quarter. Announced 30 days ahead.

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H
4 terms
HAWB

House Air Waybill

Documents

AWB issued by the forwarder or consolidator to the individual shipper. Acts as receipt and contract within an air consolidation.

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HBL

House Bill of Lading

Documents

BL issued by the forwarder or NVOCC to the individual shipper. Coexists with an MBL issued by the carrier to the NVOCC in a consolidated move.

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High Cube (HC)

Containers

Container with taller internal height (2.698 m vs. 2.393 m for standard). Available in 40' and 45'. Adds ~13% cubic capacity.

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HS

Harmonized System Code

Customs

WCO harmonized tariff coding system. 6 universal digits; each country adds 2–4 extra digits (NANDINA in CAN, NCM in MERCOSUR, NALADISA in ALADI).

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I
5 terms
IATA

International Air Transport Association

Generalaéreo

Airline association regulating air cargo transport, including dangerous goods (IATA-DGR) and airport codes.

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IMDG

International Maritime Dangerous Goods Code

Documentspeligrosos

International code for maritime transport of hazardous goods. Defines the 9 classes, labeling, segregation, and declaration.

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IMO

International Maritime Organization

General

UN agency for maritime affairs. Issues regulations (SOLAS, MARPOL, IMDG) and assigns unique IMO numbers to vessels and dangerous goods.

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ISF

Importer Security Filing (10+2)

CustomsUSA

Filing required by US CBP: 10 importer data fields + 2 carrier fields. Must be filed 24h before loading at origin. USD 5,000 penalty for non-filing.

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ISPS

International Ship and Port Facility Security

Fees & charges

Security surcharge under the ISPS code post-9/11. Applies to every international ocean shipment as a fixed amount per container or BL.

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L
3 terms

LATAM

GeneralLATAM

Latin America region. In international logistics, typically Mexico plus Central and South America as a trade area. Gloval Shipping operates its own offices in USA, Panama, Ecuador, and Peru.

LCL

Less than Container Load

Transport

Mode where multiple shippers share the same container. Freight charged by volume (CBM) or weight, whichever is greater. Slightly longer transit due to consolidation / deconsolidation.

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LOCODE (UN/LOCODE)

General

5-character code identifying ports, airports, and terminals (2 country + 3 location). e.g. ECGYE = Ecuador / Guayaquil. Maintained by UNECE.

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M
5 terms

Manifest

Documents

Official list of all cargo on board a vessel or flight. Filed by the operator with customs before arrival. In LATAM transmitted electronically (SIIA, ECUAPASS).

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MAWB

Master Air Waybill

Documents

AWB issued by the airline to the consolidator (forwarder/NVOCC). In air consolidations, coexists with HAWBs the consolidator issues to its clients.

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MBL

Master Bill of Lading

Documents

BL issued by the carrier to the NVOCC or forwarder. In consolidated moves, coexists with HBLs issued by the NVOCC to each shipper.

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MERCOSUR

LATAMLATAM

Southern Common Market — bloc of Argentina, Brazil, Paraguay, Uruguay (+ Bolivia and Venezuela suspended). Uses the NCM tariff with an internal free-trade area.

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Multimodal transport

Transport

Combination of two or more modes (sea + road + air) under a single contract and BL. e.g. vessel to Los Angeles → truck to Miami → flight to Quito.

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N
4 terms
NALADISA

ALADI Harmonized Nomenclature

CustomsLATAM

8-digit tariff system used in ALADI for preferences between member countries. Identifies products benefiting from trade agreements.

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NANDINA

Andean Nomenclature

CustomsCAN

10-digit tariff system used by the Andean Community (Bolivia, Colombia, Ecuador, Peru). 6 HS digits + 4 Andean digits.

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NCM

MERCOSUR Common Nomenclature

CustomsMERCOSUR

8-digit tariff system used by MERCOSUR. Built on the international HS + 2 own digits. Equivalent to CAN's NANDINA.

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NVOCC

Non-Vessel Operating Common Carrier

General

Operator that acts as a carrier (issues its own BL) without owning vessels. Buys space from actual carriers and resells to its clients.

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O
3 terms
OBL

Original Bill of Lading

Documents

Paper BL signed by the carrier, the only document of title that must be presented to release the cargo. Typically issued in a set of 3 originals.

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OOG (Out of Gauge)

Containers

Cargo exceeding standard container dimensions. Requires flat rack, open top, or break-bulk. Higher rates and operating restrictions.

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Open Top

Containers

Container without a roof (covered by tarp). For over-height cargo that won't fit through the regular door — loaded from above by crane.

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P
5 terms

Packing List

Documents

Detail of the shipment's packages: quantity, dimensions, gross/net weight, marks and numbers. Accompanies the commercial invoice.

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Pedimento (Mexico)

LATAMMéxico

Mexico's main customs document for import, export, transit, and virtual regimes. Equivalent to the Andean DUA.

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POD

Port of Discharge / Proof of Delivery

Operations

POD has two meanings: (1) Port of Discharge = port where vessel discharges. (2) Proof of Delivery = signed receipt of final delivery to the consignee.

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POL

Port of Loading

Operations

Port where cargo is loaded on board the vessel to start the main carriage.

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PSS

Peak Season Surcharge

Fees & charges

Surcharge applied by carriers during high-demand seasons (typically Q3-Q4 on the Asia → USA/LATAM trade). Announced in advance.

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R
2 terms

Reefer

Containers

Refrigerated container with its own cooling system. For temperature-controlled cargo (food, pharma, flowers). Available in 20' and 40' HC.

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Ro-Ro

Roll-on / Roll-off

Transport

Mode for self-propelled vehicles and machinery — cargo rolls on/off the vessel under its own power. Specialized vessels with built-in ramps.

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S
6 terms
SENAE

SENAE — Ecuador National Customs Service

LATAMEcuador

Ecuador's customs authority. Administers ECUAPASS for electronic operations. Its DUA equivalent is the Declaración Aduanera de Importación.

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Shipper

Documents

Party sending the cargo. Books transport and is named as such on the BL/AWB. Usually the same as the seller.

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SLI

Shipper's Letter of Instructions

Documents

Letter from the shipper to the forwarder with detailed instructions: incoterm, consignee/notify data, routing, mode, BL type, contracted services.

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Stripping (deconsolidation)

Operations

Process of unloading an LCL container at the destination CFS and separating cargo by consignee. The opposite of stuffing.

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Stuffing (consolidation)

Operations

Process of loading a container — from loose pieces at the CFS (LCL) or from the customer's warehouse (FCL).

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SUNAT

SUNAT — Peru National Customs and Tax Authority

LATAMPerú

Peru's customs and tax authority. Administers the Peruvian DUA and customs regimes.

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T
4 terms
TEU

Twenty-foot Equivalent Unit

Containers

Standard unit for vessel capacity and port volume. 1 TEU = 1 × 20' container. A 40' = 2 TEU.

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THC

Terminal Handling Charges

Fees & charges

Charges for handling the container at the port terminal (loading, discharge, moves). Origin THC and destination THC may be included in the freight or billed separately.

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Through Bill of Lading

Documents

Single BL covering the entire journey including transhipments and/or multimodal legs. One paper from origin → final destination.

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Transhipment

Operations

Switch of vessel during transit at a hub port (e.g. Manzanillo Panama, Cartagena). Connects ports the mother vessel doesn't call directly.

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U
1 term

UN Number

Documentspeligrosos

Unique 4-digit identifier for dangerous goods (UN0001 to UN3559). Assigned by the UN. Drives IMDG class, packing group, and proper shipping name.

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V
2 terms
VGM

Verified Gross Mass

Documentscompliance

Verified gross mass of the loaded container. Mandatory under SOLAS since 2016 — must be declared before loading or the container won't board. Calculated by weighing or via method 2 (sum of individual weights).

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Voyage

Operations

Vessel voyage number. Identifies a specific sailing (e.g. MAERSK SEMARANG voy. 447S). Important for tracking and bookings.

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Z
2 terms
ZLC

Colón Free Zone (Panama)

LATAMPanamá

The largest free trade zone in the western hemisphere, located in Colón, Panama. Redistribution hub for LATAM and the Caribbean.

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Free Trade Zone

LATAMLATAM

Special customs territory where cargo is stored, transformed, or re-exported without paying duties. Panama: ZLC (Colón); other countries have industrial and commercial Free Zones.

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