Freight and Logistics Resources
and Glossary

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Stay on top of the latest in international freight and logistics, with these resources and a glossary of common terms. Learning more about how we operate at AussieFreight International Logistics will help you communicate and understand when it comes to the international freight services we provide.

Freight and Logistics Glossary

Air Waybill Also known as a master air waybill (MAWB). A contract whereby the Carrier (airline) agrees to deliver specified goods on behalf of the Shipper (sender) to the Consignee (recipient) at a stated destination. The MAWB number will be needed to collect the baggage on arrival.
Airport to Airport Service Goods are dropped off by the Shipper at an AussieFreight depot and collected from the destination airport by the consignee.
Airport to Door Service A premium service available in some countries at additional cost. Goods are dropped off by the shipper at an AussieFreight depot. In the destination country an agent will clear the goods through customs and deliver them to an address specified by the Consignee.
AWPCS Australian Wood Packaging Certification Scheme. An AWPCS-certified supplier can supply timber treated to international quarantine specifications. See also ISPM15.
BAF See Bunker Adjustment Factor.
Baggage Any household goods that you have owned for more than a year and that might reasonably be taken with you on a journey. A surfboard, cello or golf clubs might be considered baggage, a washing machine or television would be considered personal effects.
Bunker Adjustment Factor/BAF Fuel surcharge charged by shipping lines to cover increases in fuel costs.
CAF See Currency Adjustment Factor.
Chargeable Weight Whichever is the highest out of cubic weight or gross weight
CIF An incoterm. Cost Insurance and Freight to (a specified port). Ownership transfers from seller to buyer at the specified port. The seller pays the freight costs and bears the insurance risk to that location. The buyer is responsible for customs clearance and domestic transport.
CIP An incoterm. Carriage and Insurance Paid (to a specified location) The seller pays for transport from the point of origin to a named place in the destination country including insurance, unloading and domestic transport. Ownership transfers from seller to buyer from the departure point onwards but the seller has the risk and pays for insurance as far as the arrival port. The buyer arranges customs clearance.
CFR An incoterm. Cost and Freight to (a specified port). Ownership transfers from seller to buyer at the specified port. The seller pays the freight costs to that location. The buyer is responsible for customs clearance and domestic transport.
CMR Customs Management Reengineering fee. A fee charged for compliance with Customs computer systems.
Consignee The person who is authorised to collect the goods at the destination. May be the same person as the Shipper.
CPT An incoterm. Carriage Paid To (a specified location). The seller pays for transport from the point of origin to a named place in the destination country including unloading and domestic transport. Ownership and risk is transferred at the departure port so the buyer needs to arrange insurance. The buyer arranges customs clearance.
Cubic Weight A nominal weight based on dimensions of the goods. Airlines consider that 1 cubic metre weights 166.67kg.
Currency Adjustment Factor CAF is an adjustment in exchange rate made when converting between two foreign currencies to offset fluctuations in exchange rate between booking a passage and occupying the shipping slot.
Customs Value The value of the shipment attributed by customs. Generally based on the actual price paid plus packaging costs but excluding international freight and insurance charges.
Dangerous Goods Anything prohibited for transport by airline rules. Generally common sense but also includes anything with lithium batteries (computers, mobile phones etc), perfumes and aerosol deodorants.
DDP An incoterm. Delivered Duty Paid. The seller arranges customs clearance and pays all costs, including duties and taxes, from the point of departure to the named destination. This imposes the entire burden on the seller and none on the buyer.
DDU An incoterm. Delivered Duty Unpaid. The seller pays for all the costs and insurances involved in the transport from the origin to the named destination (including land transport) except for customs duty which must be paid by the buyer.
DEQ An incoterm. Delivered Ex-Quay. The seller pays freight to the destination, unloading of the goods onto the quay, port charges and customs clearance, after which the buyer takes over.
DES An incoterm. Delivered Ex-Ship. The seller pays freight to the destination. The buyer pays unloading, port charges, customs clearance and local cartage.
Door to Airport Service Our standard baggage service. Goods are collected in Australia by courier from an address nominated by the Shipper and are available for collection by the consignee at the destination airport.
Door to Door Service A premium baggage service available to some countries at additional cost. Goods are collected in Australia from an address nominated by the Shipper. In the destination country an agent will clear the goods through customs and deliver them to an address specified by the Consignee.
Dunnage Material used in the packing or support of goods for transport (eg foam beads, crumpled newspaper, tie-down straps, chains) that are not actually part of the goods.
EXW, Ex-Works An incoterm. All responsibility and costs lie with the buyer who must arrange and pay for collection, transfer, export customs clearance, loading, freight charges, insurance, unloading, import customs clearance and delivery. This imposes the entire burden on the buyer and none on the seller.
Excess Baggage Baggage over and above airline limits, carried on the same flight as the passenger, and charged at very high rates. For example Australia to Europe $50-$70 per kilogram. Our baggage service uses much less expensive unaccompanied baggage rates.
FAS An incoterm. Free Alongside Ship. The seller arranges and pays for the goods to be delivered to the wharf, cleared for export, and placed on the dock next to the ship ready for loading. The buyer pays for loading and freight from that point on. Ownership and risk is transferred at the “ship’s rail”. This literally means that if the container falls onto the wharf or into the water it is at the seller’s risk, if it falls onto the deck of the boat it is at the buyer’s risk.
FCA An incoterm. Free Carrier. Used for both air and sea transport. The seller is responsible for getting the goods to the carrier nominated by the buyer at a point stipulated in the contract. Ownership of the goods (and risk) is transferred at the departure port. The seller arranges and pays for export customs clearance. The buyer pays the freight costs from that point on. The seller may act as an agent in arranging these next stages of transportation but it is at the buyer’s expense.
FCL Full Container Load. One customer owns all the contents of a shipping container. This term only applies to sea cargo. The alternative is LCL
FOB An incoterm. Free On Board. The seller arranges and pays for the goods to be delivered to the wharf, cleared for export, and loaded onto the ship. The buyer pays the cost of freight from that point on. Ownership and risk is transferred at the “ship’s rail”. This literally means that if the container falls onto the wharf or into the water it is at the seller’s risk, if it falls onto the deck of the boat it is at the buyer’s risk.
Gross Weight The actual weight of the goods as measured by a cargo scale. Chargeable weight may be higher than gross weight.
(see also cubic weight)
HBL House Bill of Lading. A document issued by a freight forwarding agent, such as AussieFreight International Logistics, that serves as a receipt for goods that the agent agrees to ship to the contracted destination using the services of a shipping line or airline.
Incoterm An internationally accepted standardised nomenclature for describing the seller’s and purchaser’s responsibilities in a transaction. See also individual terms EXW, FOB, FAS, FCA, CIF, CFR, CPT, CIP, DDU, DDP, DEQ, DES
ISPM15 The International Standards for Phytosanitory Measures number 15. Specifies treatment for timber packing materials or dunnage that meets international quarantine requirements. Any timber coming into Australia must meet ISPM15 or an equivalent standard.
LCL Less than a Container Load. Applies only to sea cargo. Many different shippers have their consignments combined into one container. The container is “broken” on arrival and all consignees receive their shipments. Due to extra charges involved in consolidating and breaking a container LCL is more expensive than FCL on a per kilo basis. There comes a point where it is cheaper to send FCL than LCL even if the container is not full.
MAWB Master Air WayBill (MAWB). A contract whereby the Carrier (airline) agrees to deliver specified goods on behalf of the Shipper (sender) to the Consignee (recipient) at a stated destination. The MAWB number will be needed to collect the shipment on arrival.
Ocean (Master) Bill of Lading OBL or MBL. A document by which the shipping line acknowledges receipt of specified goods and contracts to deliver them in similar condition to the consignee on arrival (after payment of the specified charges), unless prevented by the ‘perils of the sea’. A bill of lading stipulates the name of the master, departure port, destination port, the goods, the consignee, and the rate of freight. Only applies to sea cargo.
Packing List A list of each package (box, suitcase etc) and its contents. Will be needed by customs on arrival but also useful for insurance purposes.
Personal Effects Any household goods for personal use that you have owned for more than a year. Most personal effects are not subject to customs duty but note that animals, boats, cars, motor cycles, trailers and other power-assisted conveyances are not considered personal effects. Note also that prohibited goods and commercial products (or samples) are not considered personal effects.
Place of Export The place from where goods are posted, packed in a shipping container or placed on a ship or aircraft for export. Any charges prior to the Place of Export are included in the Customs Value.
Pre-Alert A document we will email you which advises the estimated arrival date and time and the air waybill number, allowing you to collect your goods from the destination.
Restricted Goods Items that require special customs approval prior to import. Vehicles (including trailers) are one of many restricted imports.
SCA Sea Cargo Automation. A fee charged for interfacing with the Australian Customs Service computer systems in order to electronically give customs advance notice of arrivals.
Security Declaration A document signed by the Shipper certifying that the shipment contains no prohibited or dangerous goods.
Shipper The person who is sending the goods. Also known as Sender or Consignor. The Shipper has the contract with the airline and we act as the Shipper’s agent. The shipper bears the liability and risk for the goods.
Shippers Letter of Instruction Commonly abbreviated to SLI and sometimes called a consignment note or con-note. A document whereby the Shipper authorises AussieFreight to arrange delivery of their baggage to a named Consignee.
Storage Fees A fee charged by airlines if you do not collect your baggage within a defined time of its arrival. Storage fees overseas can be quite high and are not included in our quote. Storage in Australia is free of charge for up to one month prior to departure.
Tare Weight The empty weight of a container. For example the weight of an empty suitcase. Weight of contents = Gross Weight – Tare Weight.
Terminal Fees Fees that may be payable locally at the destination airport (depending on your destination) before your baggage can be collected. Not included in our quote.
Unaccompanied Baggage Baggage sent separately from the passenger but the passenger must hold a valid travel ticket for the destination and must arrange the baggage prior to departure.
Value for Customs The nominal value of the items (allowing for depreciation) which must be declared to customs. You may be charged duty if the value exceeds certain limits depending on the destination. Be realistic with your valuations. Customs officers are not idiots!
Value for Insurance The full replacement costs of the items (new for old) that you wish to insure for loss or damage.
Warsaw Convention Has now been replaced by the Montreal convention. An international agreement that limits airline liability in the event of loss or damage of baggage. We recommend additional insurance be purchased.

If you have any questions about freight and logistics, call us on

07 3268 2800