Incoterms

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Absorption

Acceptance by the carrier of a portion of a joint rate or charge which is less than the amount which it would receive for the service in the absence of such joint rate or charge.

Acceptance of Goods

The process of receiving a consignment from a consignor, usually against the issue of a receipt. As from this moment and on this place the carrier's responsibility for the consignment begins.

Acknowledgement of receipt

A notification relating to the receipt of e.g. goods, messages and documents.

Active Inventory

Covers raw material, work in progress, finished products that will be used or sold within a given period without extra cost or loss. This term does not cover the so-called reserve inventory.

Actual Demand

Customers' orders and often also the allocation of items, ingredients and/or raw materials to production or distribution.

Actual Voyage Number

A code for identification purposes of the voyage and vessel which actually transports the container/cargo.

Added Value

The value attributed to products, and services as the result of a particular process (e.g. production process, storage, transport).

Advance Arrangement

An agreement between the shipper and the carrier, concerning contacts between those parties prior to tendering the consignment.

Advanced Amount

Cash or cash equivalents expressed in a monetary amount given to a driver to cover expenses during a trip.

Advanced Charge

A charge paid by a carrier to an agent or to another carrier, which the delivering carrier then collects from the consignee. Such charges are usually for agents' forwarding fees and incidental expenses paid out of pocket for account of the shipment by an agent or other carrier (aircargo).

Advanced Interline

An interline carrier that picks up cargo from the shipper and delivers it to another carrier for shipment to the consignee.

Advice Note

A written piece of information e.g. about the status of the goods.

Advisory Committee for Innovation and Technology Transfer

See Strategic Programme for Innovation and Technology Transfer

Aft

At, near or towards the stern or rear of a vessel or an aircraft.

Agency Fee

Fee payable by a shipowner or ship operator to a port agent.