Road freight FAQ

What does ADR mean?

Accord European relatif au transport international des merchandises dangereuses par route sets out classifications and regulations regarding the transport of dangerous goods by road. It is based in Geneva. Switzerland.

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What is chargeable weight?

In road freight the chargeable weight is the actual gross weight or volume weight whichever is higher apart from certain exceptions.

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What is CFR?

Cost and freight (named port of destination) means that the seller must pay the costs and freight charges necessary to bring the goods to the named port of destination. However it is important to note that the risk of loss or damage to the goods as well as any additional costs occurring after the time the goods have been delivered on board the vessel is transferred to the buyer when the goods pass the ships rail in the port of shipment.

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What is CIF?

Cost, Insurance and Freight…(named port of destination) means that the seller must pay the costs and freight charges necessary to bring the goods to the named port of destination but with the addition that he has to procure marine insurance against the buyer’s risk of loss or damage to the goods during the carriage. The buyer should note that the seller is only required to obtain insurance on minimum coverage.

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What is CIP?

Carriage and Insurance paid to…(named place) means that the seller pays the freight to the named destination but with the addition that he has to procure cargo insurance against the buyer’s risk of loss or damage to the goods during the carriage. The buyer should note that the seller is only required to obtain insurance on minimum coverage.

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What is CMR?

Conventional relative au contrat transport international des Marchandises per Route’-International convention on carriage of Goods by Road. Signed at Geneva in 1956 this convention governs the carriage of goods by road and has been adopted by most European nations. It applies to contracts for the international carriage of goods by road in vehicles over the territories of two different countries of which one at least is a contracting party to CMR. (Traffic between Ireland and the UK is the exception.) Therefore it only applies to RO/Ro or Channel Tunnel movements where goods remain on vehicles throughout. The carrier is entitled to limit his liability, under the convention, to SDR 8.33 per kilo. The carrier is also liable for delay if the goods have not been delivered within the agreed time limit or if there is no such agreement, within a reasonable time.

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What is CMR Condition?

CMR conditions make the carrier responsible for loss and/or damage of the goods from the time he takes possession of them until they are delivered.

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What does COD mean?

COD (Cash On Delivery) is a method of payment where you can buy products / services and then make payment at the time of delivery. COD payments are to be made in cash to the delivery person.

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When is combined transport used?

Combined transport is the term used to describe the utilisation of different modes of carriage. It normally embraces Intermodal, Multi-modal, Bi-modal and ‘road-on-rail’ methods of transportation. Carriage by more than one mode of transport against one contract of carriage. A true combined transport movement starts at the Shipper’s premises and ends at the Consignee’s premises i.e. House-to-House or Door-to-Door. Combined Transport services are operated by a CTO (Combined Transport Operator).

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What does the term CPT mean?

Carriage paid to (named place of destination) means that the seller pays the freight for the carriage of the goods to the named destination. The buyer should note that all risks for loss or damage to the goods transfer to him / her when goods are handed over into the custody of the carrier.

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What is a Cubic Metre?

1 cubic metre = 1.308 cubic yard

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What is a curtain sider?

Swap body or trailer with a sliding curtain along the length of the unit, which allows free access from the sides with the curtains drawn back.

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What do I need a Customs Clearance Agent to complete?

For all consignments coming into or leaving the UK from countries outside the EU customs formalities have to be attended to on behalf of the importer or exporter as the case may be. Freight forwarded or customs clearance agent may perform the task and raise an appropriate fee for carrying out the job. In some cases the agent also guarantees and advances the duties to Customs. Also referred to as Customs Brokers since “free circulation” of goods within Europe came into being on January 1st 1993.

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What does DAF mean?

For all consignments coming into or leaving the UK from countries outside the EU customs formalities have to be attended to on behalf of the importer or exporter as the case may be. Freight forwarded or customs clearance agent may perform the task and raise an appropriate fee for carrying out the job. In some cases the agent also guarantees and advances the duties to Customs. Also referred to as Customs Brokers since “free circulation” of goods within Europe came into being on January 1st 1993.

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What goods are classed as dangerous goods?

Dangerous Goods (also referred to as hazardous materials or restricted articles), are described as articles or substances that are capable of posing a significant risk to health, safety or property when transported by air.
The following are some examples of dangerous goods that must be declared at time of booking:

  • Oil-based paint and thinners (flammable liquids)
  • Industrial solvents
  • Insecticides, garden chemicals (fertilizers, poisons)
  • Lithium Batteries (not in cameras)
  • Magnetized materials
  • Machinery (chain saws, outboard engines containing fuel)
  • Fuel for camp stoves, lanterns, torches or heating elements
  • Automobile batteries
  • Infectious substances
  • Any compound, liquid or gas that has toxic characteristics
  • Bleach
  • Flammable adhesives
  • Perfume
  • Alcohol

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What does the term DDP mean?

Delivered duty paid (named place of destination) means that the seller fulfils his obligation to deliver when the goods have been made available at the named place in the country of importation. The seller has to bear the risks and costs including duties, taxes and other charges for delivering the goods to that point cleared for importation. If the seller is unable directly to obtain an import licence (if required) the term should not be used. Whilst the EXW term represents the minimum obligation for the seller DDP represents the maximum obligation.

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What does the term DDU mean?

Delivered duty unpaid…(named place of destination) means that the seller fulfils his obligation to deliver when the goods have been made available at the named place in the country of importation. The seller has to bear the risks and costs of carrying out clearance through customs although the buyer has to pay any additional costs incurred by delays in clearance caused by him.

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What is detention?

Delivered duty unpaid…(named place of destination) means that the seller fulfils his obligation to deliver when the goods have been made available at the named place in the country of importation. The seller has to bear the risks and costs of carrying out clearance through customs although the buyer has to pay any additional costs incurred by delays in clearance caused by him.

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What is documentary credit?

The basis of international trade by means of which payment is made against surrender of specified documents. A letter addressed by a banker to an exporter (usually but not always) undertaking to make payment to him against documents relating to the dispatch of goods. The documents usually required are bill of lading or airwaybill, invoice and insurance documents and if these are in order and shipment has been made in as specified in the credit, the bank will pay for the consignment in exchange for the documents. It is important that the details of the credit are in accordance with the contract of sale between the exporter and importer and letters of credit should be checked carefully when first received by the exporter to ensure that he can comply with its conditions. An international code of practice called the Uniform Customs and Practice for Documentary Credits protects all parties in a documentary credit (See UPC 500).

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What is drawback?

Repayment of duty upon re-exportation of goods previously imported.

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What size is a euro-pallet?

Size of pallet is 1200mm x 800mm. Height of pallet itself is approximately 185mm.

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What does the term ETA mean?

Estimated time of arrival of vessel, flight, truck or train.

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What does the term ETD mean?

Estimated time of departure.

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Why do I need an export licence?

Export license may be required for certain restricted products to certain countries, normally military goods, dual use goods and associated technology and software, or radioactive materials.
Information at https://www.gov.uk/guidance/export-and-import-licences-for-controlled-goods-and-trading-with-certain-countries

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What does the term Ex-works mean?

Ex works…(named place) means that the seller fulfils his obligation to deliver when he has made the goods available to the buyer at his premises. He is not responsible under this term for loading the goods on the vehicle provided by the buyer or for clearing the goods through customs for export, unless otherwise agreed.

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How is FAK calculated?

System whereby freight is charged per container or unit, irrespective of the nature of the goods and not according to goods classification.

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What does the term FCA mean?

Free Carrier…(named place) means that the seller fulfils his obligation to deliver when he has handed over the goods cleared for export in the charge of the carrier named by the buyer at the named place.

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What is freight?

The amount payable for the carriage of the goods. The word is also used to describe the goods themselves.

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Weight / measure

The tonnage on which freight is charged – e.g. it could be based on the greater weight or measurement of goods where a freight ton is either 1000kgs or 1 cubic metre. It might also have a conversion factor of 1000kgs = 3 cubic metres.

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What is a house waybill?

The consolidator issues his own House Waybill (HWB) for each shipment and each customer receives a copy to identify his consignment. The House Waybills are forwarded with the consol, in a sealed envelope attached to the Master Waybill accompanied by a manifest itemising all the shipments by House waybill number for identification purposes at destination. Cargo identification labels will show both Air Waybill numbers.

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What is a known shipper?

When a shipper is known, a unique shipper identification number is allocated. Known shippers are permitted to ship cargo from source without the need for any further security measures being applied.

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How is a load meter calculated?

This is the term used to describe the space taken by freight utilising one meter’s length and the full internal width and height of a trailer.

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What is a Shipper?

The person or company who is sending the shipment.

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What size is a standard pallet?

(Metric pallet)
Size of standard pallet is 1200mm x 1000mm. Height is 185mm.

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What is a tail lift?

A tail lift is fitted to the back of a trailer. A tail lift reduces labour handling costs considerably and increase loading speed.

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Who is the Third Party?

When the person / company paying shipping and related charges is neither the shipper nor the consignee.

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What is a timed delivery?

When a person / company requires delivery within a specified time.

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What is a tilt trailer?

When a person / company requires delivery within a specified time.

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What is Tir-Europe?

Transport international routier (lit. international road transport) – A system involving the issue of a Carnet (lit. log book) to road hauliers which allows loaded vehicles to cross national frontiers with minimum Customs formalities. On departure the trailer is sealed by Customs and as the TIR Carnet is completed and stamped by Customs the contents are thereby guaranteed, obviating #the requirement for checking by other Customs authorities at crossing points in transit to the country of final destination. The system is currently in force in all European countries and parts of the Middle East. The Customs Convention on the International Transport of Goods under cover of TIR Carnets was established in 1959 (new Convention in 1975) under the auspices of the Inland Transport Committee of the UN Economic Commission for Europe. The International Road Union (see IRU) became guarantor of the system and working through it’s national association in each country, it issues more than 600,000 carnets each year all of which must be returned to the IRU in Geneva for processing.

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What is tracking?

The act of providing updates on the progress of a shipment as it transits form origin to destination.

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When do I require a Trem Card?

Transport Emergency Card used in the carriage of chemicals by road. The card must accompany the load at all times. They are prepared by CEFIC – the European Council of Chemicals Manufacturer’s Federations of Zurich according to regulations of the ADR.

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What is UCP 500?

Uniform Customs and Practice for Documentary Credits is a code of practice issued by the International Chamber of Commerce. The latest revision is in effect since January 1st 1994 and is entitled UCP 500. The marked increase in litigation connected with documentary credits and the fact that surveys indicated that up to 50% of documents are rejected when first presented to Banks led to the authorisation of the revision in November 1989 of UCP Publication No. 400 published in 1983. It was the first such revision for 10 years and it took into account international judicial decisions and technological innovations. First published in 1933, the new UCP 500 provides a comprehensive and practical working aid to bankers, lawyers, importers, exporters, transport executives and everyone involved in international trade. Available from the Dublin Chambers of Commerce in Clare Street, Dublin.

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What does the term warehouse-bonded mean?

Pending completion of customs formalities for Import or Export goods may be held in a bonded warehouse until such time as any relevant taxes or duties are paid. A bondholder gives the authorities the assurance that they will accept responsibility for the duty on any consignment lost while under their control. Similarly, certain goods are manufactured under government control and are kept in bond on the local market or export. Duties will be assessed on the goods before they can leave the bonded warehouse.

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What is a Waybill?

A document used in airfreight and surface freight for the transmission of all relevant shipment information along the transport chain. It contains all details regarding the consignment and charges connected with the transportation elements of the transaction. It is a receipt and evidence of a contract of carriage but it is not a document or title. In sea transport there are advantages to using the Waybill instead of a Bill of Lading by virtue of the fact that there is no need to send a document of title to destination to secure delivery and the possibility of a requirement for a Letter of Indemnity arising is nil. The costs of producing a Bill of Lading is avoided and the waybill can be a paper document or an electronic message thus helping the use of paperless trading (electronic commerce).

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