Glossary
AWB
The Air Waybill (AWB) is a document standardized by IATA, essential for the acceptance of all goods by air, whether for import or export.
The AWB constitutes a contract of carriage between the shipper and the airline. It can be issued by the shipper, the consignee or the airline, and must be supplied in 3 copies.
Each LTA has a unique number, which ensures tracking of the shipment.
AEO
Authorized Economic Operator: issued in France on behalf of French customs. This is a European customs label designed to simplify and secure international trade.
It is recognized internationally by many countries that have signed Mutual Recognition Agreements (MRAs), which aim to secure the international supply chain and multiply the benefits granted to international trade operators holding AEO authorization.
To find out more, visit the Customs website: https://www.douane.gouv.fr/dossier/loperateur-economique-agree-oea
AIRLINE HUB
Airline hub or airport connection platform: a goods redistribution center, the airline hub groups together the operations of a single airline and concentrates a large proportion of the activity of the airline networks.
In Europe, hubs are managed by the three main alliances: Oneworld, Star Alliance and Skyteam, which bring together numerous airlines and cover almost half of all scheduled flights. However, the national airline generally has its own hub in the country (Air France at CDG, KLM at Amsterdam-Schipol, etc.).
There are also “mega-hubs” with a large number of routes in Asia, the USA and the Middle East.
The advantages of an air hub are many: better airport connectivity, avoidance of multiple services, optimized operations because concentrated in a single location, reduced operating costs.
CUSTOMS BROKER
Authorization issued by the DGDDI allowing the company to handle customs formalities on behalf of its customers. Among the services offered by a customs broker, the main ones are to ensure the legality of transport and to carry out customs operations by drawing up the necessary regulatory documents.
CIF
Maritime Incoterm for Coast Insurance and Freight. This mode of transport is intended for use when the seller organizes the main carriage, taking charge of the insurance costs (compulsory with this Incoterm) and the carriage costs up to the border of the destination country. Once the goods have cleared customs at the port of disembarkation, the buyer takes charge of the goods.
Read our article to find out more: https://balguerie-group.com/en/incoterms/
CBAM
The Carbon Border Adjustment Mechanism is a mechanism set up at European level as part of the “Fit for 55” package, targeting imports of more carbon-intensive products. Its aim is to extend the EU’s greenhouse gas reduction targets to imports of products manufactured in third countries.
Find out more about the “Fit for 55” package: https://www.consilium.europa.eu/fr/policies/green-deal/fit-for-55/
DETENTION & DEMURRAGE
Additional charges invoiced at destination when container or goods are returned out of time. Detention charges apply when the empty container is not returned before the end of the predefined period. Demurrage charges are incurred when the container or goods are not collected on time.
In both cases, these charges are generally calculated by the day, and the rate increases with the duration.
EUR1
EUR 1 (or movement certificate): a document certifying the origin of goods, applicable in certain preferential Community regimes. These are agreements between the EU and third countries.
The EUR 1 entitles the holder to reduced or even zero customs duties, depending on the agreement and the goods.
The certificate is drawn up by the exporter and must be stamped by the #customs authorities in the country of export. It must then be presented at customs clearance.
List of countries covered by EUR 1: https://www.douane.gouv.fr/fiche/liste-des-accords-et-preferences-unilaterales-de-lunion-europeenne
EORI NUMBER
The EORI (Economic Operator Registration and Identification) number is a single, mandatory Community number for identifying European economic operators, and is essential for customs declarations of imports and exports of goods outside the EU. Operators make customs declarations with an EORI SIREN number issued by Customs.
EMCS (Excise Movement and Control System)
Electronic Administrative Document: used for movements of products subject to excise duty. It is a dematerialized document that replaces the AAD (paper version).
The movement of products subject to excise duty is highly regulated, and must be documented at every stage using the EMCS, which offers several advantages
- simplifies procedures and saves time in obtaining documents
- traceability of goods
- assurance that the consignee of the goods is entitled to excise duty suspension.
In the special case of deliveries to trade fairs and exhibitions, the EMCS is a necessary document.
To find out more, click here: https://www.douane.gouv.fr/fiche/electronic-administrative-document-e-ad
FUMIGATION
The fumigation of shipping containers involves treating a cargo or the container itself to eliminate the risk of pests or diseases or diseases entering or leaving a country or state.
There are several types of treatment, adapted to the cargo being transported, and varying in duration:
- PH3 (Phosphine) for food products (3 to 10 days, depending on temperature)
- Sulfuryl fluoride (for non-food products) (Duration 1 day)
- BMSB fumigation Sulfuryl Fluoride (duration 3 days)
- BMSB Thermal for empty drums (duration 4 hours)
- Thermal treatment of logs
Please note that different potting criteria must be met depending on the treatment applied.
Import containers are also concerned. Fumigation may be requested after an inspection at the PIF (Border Inspection Post) BY SIVEP (Veterinary and Plant Health Inspection Service), if insect larvae are present in a container unloaded at dockside, under Phyto certificate.
FOB
Maritime Incoterm meaning Free On Board. This mode of transport is intended for use when the seller places the export goods on board a ship at a seaport or river port. The buyer then takes charge of the goods, as well as all costs and risks associated with the transaction.
FCL
Full Container Load: Transport mode used when the volume of goods to be shipped fills a full container, and when the container is carrying goods by or for a single company. Different from LCL (see definition below).
Read our article to find out more: https://balguerie-group.com/en/sea-transport-fcl-shipping/
FLEXITANK
Storage unit placed inside a container to transport non-hazardous liquid food and non-food products. It enables a dry container to transport liquid bulk. With a maximum capacity of 24,000 L, filling takes an average of 45 minutes.
FREIGHT FORWARDER
Approval issued by the RDEPH (Regional Department for the Environment, Planning and Housing), enabling the company to organize transport in its own name, on behalf of its customers.
According to article R1411-1 of the French Transport Code, the activities of a freight forwarder are as follows:
1 Groupage operations, whereby consignments of goods from several shippers or addressed to several consignees are brought together and made up into a single lot for transport;
2 Chartering operations, whereby shipments are entrusted to common carriers without prior consolidation;
3 City office operations, whereby the freight forwarder takes charge of parcels or retail shipments and hands them over separately either to public carriers or to other freight forwarders;
4 Transport organization operations whereby the freight forwarder takes charge of goods coming from or going to the national territory and ensures their routing by one or more public carriers by any means whatsoever.
HS CODE
Harmonized System Code: used by international customs authorities to classify goods for customs purposes. It represents the first 6 digits of the Harmonized System of the WCO (World Customs Organization) and is applied by 195 countries, covering 95% of world trade.
To find out more, read our article: https://balguerie-group.com/en/international-transport-customs-classification/
IATA
A guarantee of quality and reliability, IATA enhances the development of air transport by combining global regulations.
IATA’s objective is to promote a safe, efficient and economical air transport industry. One of their first steps was to use “IATA” codes to identify airports and airlines worldwide.
IATA can
- Lobby legislators
- Promote the development of air transport by harmonizing international standards and regulations
- Contribute to air cargo security and service offerings
- Simplify exchanges between the various parties involved
INCOTERMS
A contraction of the English term “International Commercial Terms”, and constitutes a codified set of standard contractual provisions relating to the carriage of goods. Incoterms are essential for scheduling international shipments, and are always associated with a geographic location that represents the “critical point” where responsibility is transferred between seller and buyer.
The latest version dates from 2020, and they are revised every ten years to reflect changes in international trade practices.
Incoterm does not represent a sales contract, but it does bind the seller to a buyer.
Read our article to find out more: https://balguerie-group.com/en/incoterms/
IMO
International Maritime Organization: a specialized agency of the United Nations, created in 1948 and headquartered in London. It currently has 175 member states, including France. The IMO is responsible for establishing a global regulatory framework in 3 main areas of expertise: maritime transport safety, security and environmental protection.
To find out more about the IMO and its activities: https://www.imo.org/
LCL
Less Than a Container Load, also known as “groupage”, is a mode of transport used when the goods to be loaded do not fill a full container, and the latter is therefore loaded with products from several companies. Different from FCL (see definition above).
To find out more, see our article: https://balguerie-group.com/en/sea-transport-lcl-shipping/
MULTIMODAL TRANSPORT
Also known as combined transport, multimodal transport is a logistics solution that uses at least two modes of transport to move goods. All modes of transport can be used: rail, river, road, sea and air.
NVOCC
Non Vessel Operating Common Carrier: acts as an intermediary between shippers and shipping lines, buying space on vessels and offering it to customers under its responsibility. NVOCC does not own any vessels of its own.
The NVOCC’s main role is to act as an intermediary between shippers and shipping lines, buying space on ships and offering it to their customers on their own responsibility. It handles all transport formalities: contracts of carriage, customs documentation, sotckage and warehousing, as well as overland transport.
Approval is issued by the Federal Maritime Commission
PANAMA CANAL
A major international maritime transport point between Europe and the west coast of the American continent, as well as between Asia and the east coast of the American continent, the Panama Canal normally handles around 40 ship transits a day. Built between 1904 and 1914, this canal avoided the need to pass through the Strait of Magellan, thus shortening transit times by 20 days.
Around 80km long, the crossing takes between 8 and 10 hours. Some 15,000 ships transit this route every year, which represents some 300 million tonnes of goods a year.
Due to drought since 2023, the number of ships passing through the canal has been drastically reduced, to just 20 per day. The situation has now improved, thanks to the rainy season. A project to build a new giant reservoir to prevent the problem recurring is currently underway, and is expected to last 6 years.
TRANSSHIPMENT
The act of transferring goods from the arrival quay to the dispatch quay, without passing through storage or warehousing. Regularly used in multimodal transport, this action enables goods with the same destination to be grouped together, or goods from a ship with different destinations to be dispersed.
Goods can be transferred between two ships, or between a ship and a train or truck.
Transshipment offers a number of advantages, including
- Reduced delivery times, since no storage or warehousing is required, and goods can be quickly re-shipped.
- Reduced shipping costs, as less handling is required in ports
- Reduced demand for terminal storage space
