Glossary of Terms

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    • A. OCEAN FREIGHT:.

      Basic Freight:
      Cost of shipping service from one port to another. This tariff considers the shipping terms that determine the final cost of the basic freight.

    • Liner Terms
      In terms of line or dock, the loading, unloading and stevedoring operations are quoted in the freight rate. The cost of operations prior to load hook and after unload hook are excluded
    • F.I. (Free In)
      Corresponding charges to the loading operation charges are not included in the freight and are included in the merchandise. Stowage and unloading charges are included.
    • F.I.O.S.T. (Free In and Out and Stowed and Trimmed)
      Idem to F.I. The grain shoveling costs are not the carrier’s responsibility, but they will be absorbed by the cargo.
    • F.I.O.S. (Free In and Out and Stowed)
      The quoted freight does not include the loading, unloading and stowage costs.
    • F.I.L.O. (Free In, Out Liner)
      Loading charges are included in the merchandise and unloading charges are included in the liner or carrier costs.
    • F.I.S.L.O. (Free In and stowed, Liner Out)
      The quoted freight does not include loading and stowage operations. The unloading is under the carrier’s responsibility.

    • B. TERMS AND NOMENCLATURE FOR CONTAINER TRANSPORT CONDITIONS

      Intermodal Service: Transport service between two points using two or more different modes of transport according to the requirements of the load contractor.

    • Door Service (Door):The carrier service contracted in the freight value is responsible for transporting the cargo from the storage defined by the consignor to the port of origin and/or from the port of destination to the storage defined by the consignee.Additionally, the carrier is responsible for coordinating the mobilization of the empty container at the port of origin, and also the mobilization of the empty container at destination. All related costs are assumed by the carrier.
    • Port Service (Port): The shipping company is responsible for transporting the cargo from the shipping port to the port of discharge. The user is responsible for the cargo transport cost from the user’s storage in origin to the shipping port and/or from the port of discharge to the user’s storage in destination.
    • Additionally, the user is also responsible for the mobilization cost of the empty container from the deposit to storage in origin, and/or the mobilization from the storage to the deposit in destination.
    • House to House Service: Terms of the international shipping contract whereby the exporter is responsible for costs and transport management from the point of origin to the point of destination, including the intermediary steps.
    • House to Pier Service: Terms of the international shipping contract whereby the exporter is responsible for costs and transport management from the departure point until the merchandise is on board the vessel at the port of origin.
    • Pier to House Service: British expression whose literal translation is “dock to house”. Terms of the international shipping contract whereby the importer is responsible for costs and transport management from the moment that the merchandise is on board the vessel at the port of destination to its final destination.
    • Container Yard (CY): Expression that refers to the area designated by the carrier for receiving, delivering, storing and repairing (if necessary) empty containers.

    • C. CONDITIONS FOR CONTAINERS STUFFING AND STRIPPING:

      Full Container Load (FCL): The user is responsible for shipping, stowing and counting the load in the container.

    • Less Container Load (LCL): The shipping line is responsible for shipping, stowing and counting the load in the container.
    • The above-mentioned operation is made at the place designated by the shipping company.
    • Combinations: Based on the above-mentioned points, you can make the following combinations according to the stuffing or stripping conditions duly agreed with the shipper or consignee.
      • FCL / LCL
      • LCL / FCL
      • LCL / LCL

    • D. SURCHARGES IN THE BILLS OF LADING

      Terminal Handling Charge (THC): Charge applied by the terminal for handling containers.

    • Bunker Adjustment Factor (BAF): Surcharge based on the bunker cost in the international market.
    • Currency Adjustment Factor (CAF): It is applied to compensate the US dollars exchange rate fluctuations.
    • Hazardous Cargo Surcharge (HCS): It is applied for hazardous cargo (IMO) according to its code.

    • E. OTHER COMMON TERMS IN PORT OPERATIONS

      Mooring: To moor a ship to another that is berthed to a dock or anchored in the aquatic operational area of the Terminal.

    • Port Activity: Construction, conservation, development, use, benefit, exploitation, operation and management of ports, terminals and sea, river and lake port facilities.
    • Port ManagerLegal entity established or domiciled in the country that manages a port or port terminal. The Port Manager position can be public or private.Appraisal: Activity that recognizes the merchandise, verifies its nature and value, establishes its weight, count or measure, classifies it in the tariff nomenclature and applies the charges.
    • Customs broker: An individual or legal entity authorized by the National Customs Superintendence who officially represents the consignees or owners of the load.
    • General Agent: Legal entity established in the country according to law to act in Peru on behalf of a Ship-owner or Operator in the following activities: contract of cargo; designation of sea, river and lake agents and/or stowage companies in domestic ports.
    • Sea, River or Lake Agent: Peruvian legal entity authorized by the General Directorate of Water Transportation (Dirección General de Transporte Acuático) to intervene on behalf of the shipping company or Ship-owner during vessels operations in port terminals. It is designated by the General Agent.
    • Storage: Service provided to cargo that remains in the deposit facilities determined by the company.
    • Customs Warehouse: Open or close premises for temporary placement of goods meanwhile its delivery is required.
    • Berth: Area designated for mooring ships.
    • Mooring and unmooring: Service provided to ships at berth to receive and secure the ropes, to change them from a mooring point to another and to unmoor them.
    • Stacking: To place the load orderly, one above the other in the storage areas.
    • Water Operating Area: Water space between terminal docks with direct berthing facilities and artificial breakwaters, or between those docks and the boundary line fixed by beacons or other signaling points or required space for mooring and unmooring to buoys.
    • Port Developing Area:Land, sea, lake and river areas qualified as suitable for using in the construction, extension of ports or port terminals by the Port Authority or for logistics, business and urban reasons or others.Berthing and Permanence Areas for Ships: A 500 meter coastal strip surrounding a port facility to open sea for penetration or basin.
    • Ship-owner: Legal entity, owner of a ship or not, or someone who charters one. In either case, he gets the vessel ready for exploitation, obtaining benefits from cargo freights or passenger transportation.
    • Gross tonnage: Total ship volume determined by the international and national regulations in force.
    • Stowage: Transitory placing of goods in areas close to the ship.
    • Docking:  To drive the ship from the port official anchorage and berth it to the dock or designated mooring.
    • Port Facilities: Infrastructure facilities located inside the ports that serve equally to all those operating in the port areas, for providing sheltered water areas and common services such as circulation roads, access roads, entrances, toilets, etc.
    • Cabotage: All cargo transport among ports in the same country.
    • Draft o Draught: The submerged depth of a ship in water.
    • Entrance and Departure Channel of Vessels: Natural or artificial sea areas used as transit area for vessels, allowing access to port facilities or depart from them.
    • Cargo: Load or set of goods loaded and stowed on the ship for being transported from one port to another.
    • Consolidated cargo: Group of goods that belong to one or more consignees, gathered to be transported in containers from one port to another, as long as they are under the same transport document.
    • Reshipment cargo: Import cargo declared at the port of arrival and embarked again to its port of origin or another port.
    • Transfer Load: Cargo coming from foreign countries to another countries or domestic ports, transported by sea or river.
    • Transit Cargo: Cargo coming from foreign countries whose destination is abroad.
    • Fractional Load: Liquid or solid load mobilized in packed, wrapped or separated pieces.
    • Bulk Liquid Cargo: Liquids loaded or unloaded through pipes and hoses.
    • Rolling Load:Transport vehicles for people or cargo and rolling equipment for agriculture, mining or other activities, which are mobilized by their own means.Solid Bulk Cargo: Solid product mobilized without wrapping or packaging.
    • C.F.R. (Cost and Freight): The seller is responsible for paying all carriage charges of goods to the place of destination, but the risk of loss or damage of goods or any additional cost, are transferred from the seller to the buyer when goods have already been shipped.
    • C.I.F. (Cost, Insurance and Freight) – Cost, Insurance and Freight: A similar term to C & F, but the seller must provide a marine insurance against risk of loss or damage of goods during transportation.
    • IMDG Code: International maritime code of dangerous goods.
    • Port Community: Group of public and private representative entities from the port control area that develop port services and activities directly.
    • Port Concession: Administrative act whereby the State grants to a foreign or domestic legal entity the right to exploit port facilities or execute port infrastructure works for providing public services. It means, to transfer a State port infrastructure to this entity’s use in order to improve and extend the port facilities.
    • Bill of Lading: Document proving the ownership and/or property of the load.
    • Consignee: An individual or legal entity to whom goods have been consigned or been obtained by endorsement.
    • Cargo Consolidation:To stuff a container with goods from one, two or more shippers.Contract of Affreightment: Agreement whereby the Ship-owner delivers part or the entire vessel to the Charterer in order to transport goods from one port to another, or for a period of time, receiving a sum of money that the Charterer agrees to pay as conductive mercy. There are two basic types of affreightment: For transportation and for chartering, both for time and trip.
    • Contract of Carriage: Agreement whereby a “Carrier” or “Transporter” called Ship-owner, Shipping Agent or Charterer agrees with the owner of the load directly or through a Freight Forwarder or an Agent Customs to transport a load from a port of origin to a port of destination, paying a freight.
    • Crew: Group of stevedores in charge of stowing goods on board of ships and unloading them.
    • Single Customs Declaration (SCD): Document used to request goods that are subject to customs regimes and operations as: Definitive Import, Temporary Import, Temporary Admission, Warehouse, Transit, Reshipment, Re-import, Definitive Export, Temporary Export and Re-export. It is addressed to the Foreign Trade Agents involved in the customs regimes and operations above-mentioned.
    • Private Bonded Warehouse License: Premises used exclusively for the storage of merchandise that belongs to a single owner.
    • Public Bonded Warehouse License: Premises or area used exclusively for the storage of merchandise that belongs to several owners.
    • Bonded Warehouse License: Premises used for the storage of merchandise requested to customs warehousing regimes.
    • Right to use Water and Coastal Areas: Administrative procedure whereby the General Directorate of Captainship and Coastguards authorizes the petitioner the exploitation of areas for port development.
    • Unmooring:  Reverse operation to mooring.Undockage: Reverse operation to dockage.
    • Direct Unloading: Transfer of load that takes place directly from a vessel to vehicles for its immediate withdrawal from the port area.
    • Indirect Unloading: Transfer of load that takes place from a vessel to a dock for its storage in the terminal.
    • Deconsolidation of Cargo: Container destuffing whose goods are destined to one, two or more consignees.
    • Official Customs Broker: Representative of State or private entities authorized to perform as Customs Agent in relation to import/export cargo shipping and clearance, who belongs to these entities.
    • Customs Clearance: Fulfillment of required customs formalities to import and export goods or submit them to other customs regimes, operations or destinations.
    • Single Document of Manifest Information (SDMI): Document that contains characteristics of the load and the conformity of the Manifest which is signed by the carrier or his agent.
    • Cargo Owner: Owner or consignee of the cargo.
    • Wharf: Installation on the coastline, river banks or lake shores without defense or shelter infrastructure for the docking and minors vessels attention.
    • Direct Loading: Transfer of cargo that takes place directly from private vehicles to a vessel.
    • Indirect Loading: Transfer of cargo that takes place from terminal storage areas to a vessel.
    • Stevedoring Company: Companies and associations that carry out stevedoring activities.
    • Transport Company or Carrier: Individual or legal entity authorized by the Ministry of Transport, Communications, Housing and Construction, and also authorized by ENAPU to transport goods within, to or from the port terminals.
    • Length: Refers to the total length of the ship as it appears in the Certificate of Registration.
    • Breakwater: Projecting section or dike that advances into the sea or river for protecting a port.
    • Stowage: Process of arranging the cargo in a warehouse, dock or mode of transport.
    • Port Structure: Port infrastructure and superstructure built for supporting the ships.
    • Port Facilities: Port facilities available for users.
    • F.O.B. (Free on Board): Term that indicates the seller have to place goods on board the ship in the respective port of shipment according to sale contract. The risk of damage or loss of the merchandise is transferred from the seller to the buyer when it passes the ship overboard.
    • Anchorage: Operation of driving the ship to the official anchorage of the port.
    • Aquatic Access Infrastructure: Canals, approach areas, defense building works (seawalls, breakwaters, locks) and signals (lighthouses, buoys) that are in the aquatic operations area.
    • Port Area Infrastructure: Piers, docks, basins, storage areas in transit, mooring buoys and other ways of internal communication (roads, paths).
    • Port Infrastructure: Fixed and floating civil works and mechanical, electrical and electronic installations that are built or located in ports in order to facilitate the transportation and the modal interchange.
    • It includes:
      • Water access: Channels, approach area, shelter and defense building works such as breakwaters, locks and nautical signals.
      1. Areas of cargo transfer and transit of passengers: Piers, docks, basins, storage areas, mooring buoys, underwater pipelines, pipelines, platforms and floating docks.
      2. Land access: internal circulation routes, railway lines that allow direct and immediate interconnection with the national road traffic system.
    • Port Facilities: Infrastructure and superstructure works built in or out a port for the support to ships, port service delivery, construction and repair of ships.
    • Transit Area: Land area for temporary storage of goods. It is an intermediate step from the ship to private vehicles, or vice versa during the shipment.
    • Cargo Manifest: Document that describes the list of goods of one or half transport unit and shows their business data.
    • Marine: Set of docks and piers whose aquatic areas and coastal lands develop tourism, recreation and sporting activities, and construction, repair and conservation of sporting boats.
    • Goods: Any cargo which has been and/or will be transported on board of a ship.
    • Foreign merchandise: It comes from overseas under temporary, suspensive or improving regimes.
    • Domestic merchandise: Goods manufactured in the country with national or nationalized raw materials.
    • Hazardous Merchandise: Merchandise classified as hazardous and regulated in relation to its acceptance, procedure, packaging, stowage, documentation and transportation for either local or international transfer. There are nine (9) classifications of dangerous goods for the international shipping and the International Maritime Organization (IMO) establishes their regulations, documents, acceptance procedures, packing and stowage.
    • Dock: Port infrastructure on a river, lake or sea bank for loading and unloading the vessels and for vehicles traffic.
    • Private dock: Exclusive service provided to a user in order to loading and unloading the vessels.
    • Vessel: Any kind of shipbuilding for sailing, including its component and accessory parts such as gears, spare parts, equipment, machinery, tools and accessories that without being part of the vessel structure, are used for its service at sea and in port.
    • Tally Note: Document that records the number, condition and characteristics of the load.
    • Port Operations: Entry, departure, anchoring, docking, undocking, mooring, unmooring and stay of ships in the port land area.
    • Port Operator: Legal entity established or domiciled in the country that has authorization to provide services to ships, loads and/or passengers in port areas.
    • Foreign Trade Agents: Customs brokers, customs agents, ownerships, cosignatories, and in general, any individual or legal entity that benefits or participates by himself or by other in operations or customs regimes according to Law.
    • Bill of lading: A customs document required for definitive export clearance of goods, including the departure of goods from CETICOS.
    • Pallet: Implement used for the stowage of the fractional load (bags) that facilitates the work of loading and unloading to/from the ships.
    • Maritime, River and Lake Police: Maritime authority that controls, inspects and enforces the faithful observance of laws, regulations, dispositions and orders related to sea, river and lake activities,  and the prohibition of illegal activities in the jurisdiction area.
    • Carrier or Transporter: Individual or legal entity in charge of shipping merchandise by the respective contract of carriage.
    • Pilotage: Service that pilots provide to ships, indicating the required maneuvers for their displacement inside or outside the operational area of the Terminal.
    • Service Providers: Individual or legal entity that have the respective permission, license or authorization to provide port services.
    • Port: Geographic area and economic unit of a location where terrestrial, aquatic, natural or artificial terminals, infrastructures and facilities are situated and equipped for port activities development.
    • Coasting Port:  It is used for business transactions among national ports.
    • River Port: It is located in the banks of a navigable waterway, which is suitable and equipped for port activities.
    • Lake Port:It is located in the shore of a navigable lake, which is suitable andequipped for port activities.
    • Sea Port: Set of land areas, marine waters and facilities located in the seashore that meet natural, artificial, physical and organizational conditions, enabling to carry out port traffic operations by the respective authorities who develop these activities.
    • Port Premises: Space between shelter building works or external line of demarcation of the aquatic operative area and the land perimeter limit of the area in which port facilities are located.
    • Towage: Service that tugboats provide as towing, pushing, supporting or assisting to ships during port operations.
    • Shore: Land strip of stream beds, included between the highest and lowest ordinary levels reached by the waters.
    • Handling Service: Service that includes the reception, stowage or stacking of cargo at the port Terminal, and its dispatch or delivery for being shipped or picked-up.
    • Transference Service: Cargo transfer from ship or transit areas to terminal storage areas or vice versa during the shipment.
    • Port Services: It is provided in the port premises to assist ships, cargo and people embarking and disembarking.
    • National Port System: Set of private/public individual or legal entities, assets, infrastructures, ports, port terminals and facilities located in the territory.
    • Port Corporations: Anonymous companies constituted with private, public or mixed capital whose social object is the investment, construction and conservation of ports and its administration. The port corporations can also provide loading and unloading services, storage in the ports and other services directly related to port activity.
    • Super Port Structure: Facilities that provide support to port services, such as: warehouses, administrative buildings, maintenance and repair areas, etc.
    • Tariff: Economic compensation for port activities or services subject to regulation.
    • Terminal Warehouse (T.W.): Customs primary zone that provides merchandise storage services.
    • Port Terminal: Port operative units that provide modal interchange and port services. It includes the infrastructure, areas of transitory deposit and internal routes of transport.
    • Port Terminal of Private Use: It is established by a legal entity to satisfy its own needs and also the economic group companies’ needs to which it belongs to.
    • Port Terminal of Public Use: It provides services either directly or through third parties to any customer or user that requests them according to the offered operating conditions.
    • Barge Terminals: Operative units that have piers for mooring of cargo barges.
    • River bank lands or Coastal Areas: Lands included within the strip of 50 meters counted from the highest tide line.
    • Port traffic: Operations of entry, departure, docking, undocking, stay and repair of ships in the port, and transfers between these ones and land or other modes of transport of any type of merchandise as fishing, provisioning and passengers or crews, and also the temporary storage of this merchandise in the port area.
    • Transshipment: Operation of transferring the load directly from one ship to another.
    • Port User: Individual or legal entity that uses port infrastructures and facilities or receives supplies or port services in an intermediate or final way. The intermediate user provides ships, cargo, logistics services and marine operations. Final users are owners of ships, international and domestic trade cargo, an also, the marine users and passengers.
    • Berth Use:  Use of berths in the port terminal by ships.
    • Pier Use:  Use of the port infrastructure for loading and unloading goods or carrying out other activities.
    • Area of Logistics Operations: Part of the port area where activities or services are authorized, which are complementary or related to the merchandise in order to change its nature.
    • Storage Area: Organized and equipped area inside the port premises for providing load storage services.
    • Area of Anchorage: Aquatic area established by the maritime authority for anchoring ships.
    • Free Zone: Part of the national territory where the customs regime allows receiving merchandise without the payment of import duties.
    • Sea, River or Lake Areas: National territory area corresponding to the water mirror that includes jurisdictional waters as sea, rivers or lakes, excluding the port zones.
    • Port Area: National territory area that includes the physical boundaries of lands assigned to ports, containing delimited areas by physical perimeters on ground, breakwaters, protection of access channels and pilot stations.
    • Primary Zone: Part of customs territory including customs facilities, aquatic or terrestrial areas destined or authorized for loading and unloading operations, mobilization or deposit of the merchandise; the offices, premises or dependencies designed to direct customs services; airports, lands or roads authorized and any other location where customs operations are fulfilled usually.
    • Secondary Zone: Part of customs territory corresponding to each customs office designated by the National Superintendence of Customs, which exercises its jurisdiction, intervention and duties.
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