Fees levied by freight transportation carriers for services that go beyond standard pick-up and delivery.  Typically applied when there is a need for additional labor, equipment, time, or fuel. Charges may include chassis, prepull, detention/ wait time, chassis split etc.

Compressed blown air through a hose. Cannot be used to transport combustible or highly flammable material.

A terminal fee charged for all air shipments for the handling of the cargo.

The total cost which includes linehaul, FSC, wash, and any extra charges built into load.

Duties intended to mitigate or offset the value of dumping and/or subsidization, thereby leveling the playing field for domestic industries injured by such unfairly traded imports. If applicable, anti-dumping duties may be anywhere from 0%-500+% of the commercial invoice value.

Document the shipper provides which states what product(s) is shipping, how much, and where to.

When a consignee/ receiver of a shipment is not aware of the shipper or its origin.  The term double blind is used when the shipper does not know where the shipment will be delivered.

Also called a drop fee, a bobtail fee charged by the trucker to drop off a FCL container at a warehouse and then return to retrieve the empty container.

Goods where the customs duty has not been paid, inventory is required to be stored in a bonded warehouse until payment is received. A bonded warehouse is a warehouse under customs authorities’ supervision.

A warehouse that is controlled by customs authorities, storing goods for which duty fees have not been paid. A customs bonded warehouse is a building or other secured area in which imported dutiable merchandize may be stored, manipulated, or undergo manufacturing operations without payment of duty for up to 5 years from the date of importation.

Bulk cargo is a term used for items that are loose and unpackaged when shipped. Bulk cargo may be items such as oil, grain, coal.  Often classified as either free flowing, liquid, or a dry item.

The party who transports the cargo.

A type of trucking, cartage is the trucking transportation of cargo to and from a container freight station (CFS) within a local area.

Cubic meter measured in volume. This measurement is how LCL and FCL shipments are measured within a container.  LCL and FLC shipment’s chargeable weights are measured via CBM.

Customs and Border Protection.  An agency of the United States Department of Homeland Security in charge of regulating international travel and trade into the United States.

Container freight station; this is a Customs Bonded warehouse that will consolidate and deconsolidate cargo. LCL shipments are taken to a CFS at origin so that the goods may be consolidated into a container with other LCL cargo.

What the airline uses to determine the cost of your shipment. May be either volumetric weight or gross weight – whichever is greater.

Chassis is a trailer/ undercarriage used to transport ocean containers over the road.  A chassis is necessary for all shipments traveling via truck. A chassis fee is incurred for each day the chassis is in use. Chassis come in three options – 20’, 40’, or triaxle. Triaxle chassis are used to transport overweight containers. Rates are standard for 20’ and 40’ chassis usage, however, Triaxle does incur a higher rate per day.

Locations where chassis equipment is stored and available for rentals at ocean ports and rail ports. There are two types of chassis pools – Neutral Chassis Pool and Co-op Chassis Pool.

• Neutral Chassis Pool: 3^rd-party owned chassis available to ocean carriers and truckers for rental.
• Co-op Chassis Pool: ocean carrier owned chassis equipment, pooled together to reduce costs.

Chassis split fee occurs when a trucker must make an additional trip to pick up a chassis from a separate location than the container. May be applicable at port pick up or port return.

CTF is a fee assessed by the ports of Los Angeles and Long Beach as part of the Clean Air Action Plan to reduce air pollution.

A co-loader is a third-party who consolidates the cargo of two or more LCL/ air shipments in a container before handing it over to an ocean carrier. Equivalent of ride sharing for freight transportation.

A document used for Customs declaration, along with the packing list.  Insurance value is also based off the commercial invoice.

An analysis or audit of a company’s customs transactions.

Named on the Bill of Lading, the consignee is the party to whom ownership of the goods will transfer at the cargo’s destination.

The act of combining LCL shipments into a truck or container.

Also known as an import bond, is a legal document verifying all required importing fees, duties, and taxes have been paid. A Customs bond is required to import goods into the United States, as a form of insurance to protect the U.S. Treasury.

A Continuous bond will cover all your import shipments for one year.

Applied to foreign goods in the U.S. that are manufactured with foreign subsidies.

An agent who assists importers and exporters in preparing documents for clearing goods through customs.

The governmental authorization necessary for a good to enter or exit the borders of a specific country.

A declaration of the kind, amount, and value of goods being taken in or out of a country, for purposes of customs clearance.

A shipment may be selected for a customs exam upon import into the U.S.

If your shipment is pulled for a Customs Exam, you are liable for any applicable fees. Exam fees can range from $80 - $1,000, depending on the type of inspection performed.

Driver driving empty to pick up or delivery. Driver is not getting paid and burning fuel.  EX: Driver is in Chicago and load is picking up in St. Louis, there is 300 miles of DH the driver will drive prior to picking up.

A trucker may charge a delivery labor fee if they must help unload cargo at the warehouse, or delivery location.

Carriers allow for 2 hours of free loading and unloading time before they start charging. Typically billed in 15 minute increments.

Demurrage fees incur when a container has not been retrieved from port before the last free day.  Demurrage is charged per container, per day, until the container has been picked up.  Each terminal and port set their own pricing, with some terminals increasing the daily fee, in a tier system after so many days.

Also known as Per Diem, is a fee charged for the extra days a container is away from port.  Detention is also referenced sometimes as wait time at either a port pick up/drop off, or delivery destination.

A logistics term that means ‘unloading cargo from a container’.  Most often seen with transloading shipments.

A disbursement fee is charged for any outlay of funds, such as duties and taxes exceeding $1,000 or per diem charges. The Block charges a 5% disbursement fee. To pay duties and taxes directly to customs, please inquire about ACH programs.

Drayage is the transportation of a full container to a destination.  A full container will be picked up from the port terminal and/or container yard, loaded onto a chassis and trucked to a nearby warehouse, rail ramp, or vendor yard (prepull), or to end user.

A drop fee is incurred when a trucker drops off a container at a warehouse to be unloaded and leaves rather than waiting for the container to be emptied.  The Trucker will then be informed once the container is unloaded and will return the empty equipment back to port.  The Drop Fee is incurred as it results in an extra trip for the trucking company. Depending on the goods within a container and or staffing within a receiving warehouse, shipments are not always able to be unloaded in a timely manner. As such, a drop may be the best option as truckers are not always able to wait for several hours – and waiting time can be quite expensive.

The process of leaving a trailer at the shipper or receiver.  Typically has a flat daily storage charge and an additional fee may apply to retrieve the trailer.

A trucking term for when the trucker cannot complete pickup or delivery. A dry run occurs when a trucker is unable to successfully complete a pickup or delivery of a shipment.  Dry run charges will be unknown at the time of quoting but will be included on the final invoice if applicable.

Reasons a dry run may occur: The two most common reasons a dry run may occur is port congestion and Cargo not being available for release.

• Port congestion is a common issue we have been seeing within shipping ports since Covid. Peak seasons and holidays can often exacerbate congestion issues.  When a port is facing major congestion, the trucker may be unable to retrieve a shipment on the first try.
• A trucker may be dispatched to pick up a shipment, but if the cargo is not ready for pickup, then a dry run will occur.

Any time a Dry Run fee occurs, The Block will audit the charges and if found to be at the fault of the Trucking company or any other party other than the consignee, charges will be disputed on your behalf.

A term for cargo that is to be transported in an enclosed trailer, and not need to be temperature controlled.

An indirect tax on the value of an imported or exported product.

An export incentive program that allows U.S. importers, exporters, and manufacturers to recover, in part or in whole, certain duties, taxes and fees paid on imported merchandise or domestically produced flavoring extracts, medicinal or toilet preparations, bottled distilled spirits and wines.

Full container load; FCL is an ocean shipment that consumes the entire container. FCL shipments are charged at a flat rate per container and can vary in size. The most common FCL container sizes are:

• 20’ container
• 40’ container
• 40’ HQ - High Cube container
• 45’ HQ – High Cube container

Full truckload; FTL is a type of trucking used for shipments that fill a 53’ truck.  FTL is often used for the ‘last mile’ delivery of a shipment that has been transloaded and/or pulled from inventory.

FSC is a fee charged by a carrier to account for regional/ seasonal variations in fuel costs.  FSC charges is based on a set percentage against the base drayage cost. Often seen with trucking shipments but can apply to some air shipments as well.

Hazardous materials needing to be carefully shipped. Items include batteries, magnets, chemicals (lighter fluid, hand sanitizer), fertilizer, gases, poisonous substances explosives and flammable substances.

Product remaining in the trailer after delivery has been made.  Product is removed at tank wash and can cost anywhere from $7 - $15 per gallon depending on the product. Tank washers allow up to 5 gals free of heel before they charge for removal.

The importer of record is responsible for Customs documentation and payment.

Incoterms® (International Commercial Terms) are terms of sale that define who arrange for the payment and handling of the goods during shipping, from the moment the goods leave the seller’s door, up until their arrival at the buyer’s final destination.

It is ultimately up to the buyer and the seller to agree on each party’s responsibility of cost and risk before the shipment begins.

Incoterms® do:

• Define the commitment and costs between the seller and the buyer. Establishing a relatively precise understanding of the operational obligations and costs between a seller and buyer in relation to the delivery of the buyer’s goods.
• Define the point of passage of risk between the buyer and seller regarding cargo loss or damage.
• Provide instructions to carriers, forwarders, customs brokers, and others involved in shipping your goods. Instructions are also provided to all involved in financing - such as banks.

Incoterms® don’t:

• Cover ownership/ passage of title. Passage of title should be defined separately via a ‘retention of title’ clause within the sales contract.
• Cover Payment. Terms and payment for the goods are negotiated separately.

Cover Insurance.  Only CIF (Cost, Insurance, and Freight and CIP (Carriage and insurance paid) specifically outline insurance as the seller’s responsibility.  Other terms do not outline who has this responsibility.

The chart below summarizes the most used Incoterms®:

Importer of record.

Importer Security Filing (ISF); Also known as a 10+2, ISF is a filing requirement by the Customs and Border Patrol that documents importing information and details as a shipment passes from point to point.  Failing to file an ISF properly can result in a shipment being penalized up to $5,000 USD. The ISF must be filed at least 24 hours prior to an ocean departure.

The rate of the shipment without including fuel and any other charges.

Less than container load; LCL is an ocean shipment where your goods are consolidated into a container with other LCL shipments. LCL is a great option when you do not have enough cargo to fill up an entire 20’, 40’, or 45’ container.

Less than truckload; LTL is used for smaller shipments that do not fill up a full 53’ truck. Your goods will be combined with other LTL shipments to fill a full 53’ FTL truck.  LTL carriers move cargo between trucking terminals en route to the destination, so LTL shipments often have longer transit times resulting is a lower cost.

The last day of free storage time.

• FCL shipments: Ocean terminals typically provide around 5 business days of storage time; however, it varies across terminals.
• LCL shipments: A CFS (Container Freight Station) provides about a week of free storage time after they have unloaded and deconsolidated the container.
• Air shipments: Airline terminals will provide 2-3 days' free storage time.
• Rail shipments: Rail ports typically provide about 2 days of free storage time.

A liftgate is a piece of trucking equipment that allows cargo to be lowered to the ground from the back of the truck.  Liftgates are used in situations where the cargo cannot be unloaded in any other way, like with a loading dock. A fee is incurred from the trucker with the use of a liftgate and is invoiced as a Liftgate Fee.

A trucking term that the trucker will wait for the container to be unloaded, instead of making a drop at the time of delivery. Most ideal if the cargo can be unloaded within two hours as most drivers allow for 1-2 free hours of waiting.

A document regulated by the Federal Maritime Commission (FMC), ensuring all ocean freight rates are documented and accepted before the cargo is loaded onto the vessel.

Documents the basics of your shipment:

• Dates: NRA Offer Date/ Effective Date/ Expiration Date
• Who: The Block and client information
• What: Nature of your goods
• Where: Origin/ Destination/ POL/ POD
• Rate: Rate amount / Rate basis/ Cargo quantity/ Service Type

The NRA must be in place prior to The Block Logistics taking receipt of your cargo at origin. Without an accepted NRA on file, The Block Logistics cannot move your cargo.

Any party notified with shipment information by a carrier upon the arrival of cargo at its destination.  May include, a customs broker, freight forwarder, or intermediary.

Origin charges will apply for every shipment, but who pays for them depends on the incoterm. Origin charges may include AMS fee, CFS fee, Export Customs clearance, Origin doc fees.

A document used for Customs declaration that identifies the quantity, weight, dimensions, and carton count of the shipped products.  Accurate documentation may help avoid a Customs exam.

Cartons are stacked on pallets, a flat transport structure, to make cargo more secure and to make unloading easier.

A fee charged if the trucker does not bring pallets to exchange when they pick up the cargo.

Per diem, also known as detention, is a fee the Steam Ship Line (SSL) charges for each day past the number of free days that a container is away from port.  Each SSL will have a different allotted amount of free time and tiered rates.  Most often, a container is given a specified amount of free time, then per diem charges begin it incur.  This fee is the SSL’s fee for container equipment usage.

SSL are keen to keep their containers in circulation, so per diem charges are enforced to ensure timely returns of said equipment.

Important note about SSL fees – SSLs are legally allowed for up to 2 years to provide invoices against containers and collect charges.

Pier Pass is a single flat fee charged for both daytime and nighttime container moves at the Port of Los Angeles and Long Beach.  Prior to 2018, the Pier Pass fee was the Port’s effort to reduce traffic and port congestion during peak hours. However, since 2018, this fee has become standard to reduce traffic congestion within these ports.

In the context of customs clearance, is the authorization required to be given to the customs broker on behalf of the importer or exporter. This document is necessary to conduct business on the importer’s behalf.  The details of the contract will dictate renewal necessities.

Driver only drives tractor. They don’t use their own trailer or tank. Sometimes customers will ask them to pick up their trailer or tank.

A lower than normal duty rate applied to the imports from third countries.  I.E., lower than the Most Favored Nation (MFN) duty rate. This lower duty may be claimed for qualifying goods originating in countries with which the importing country has a Free Trade Agreement (FTA).  Proof of Origin must be submitted to claim Preferential Duty rates.

A prepull occurs when a trucker pulls an FCL container from the port and stores the container at the trucker’s yard rather than immediately delivering it.  A prepull is a great way to avoid incurring demurrage charges.  Prepull should not be charged for a transloading service.

Document signed by someone at consignee that they received delivered goods.

A fluctuating surcharge that carriers may apply during times of high demand.  Most commonly seen before fall/winter holidays and Chinese New Year.

Device to suck product out of trailer.  About 50% of drivers have a pump on truck.  The pump is used on all combustible or highly flammable products.

When the destination of a shipment is changed after it has been picked up by the carrier.

If a shipment is being delivered to a residential area, a trucker may charge a residential delivery fee.

If your shipment is split between two or more delivery locations, a stop off fee may be charged.

The cost of holding a shipment at a location (warehouse, CES, etc.) and will be invoiced if applicable. Storage charges may apply to your shipment even if you don’t plan on putting your shipment into storage.  A few common reasons a shipment may incur storage charges include:

• Shipment is selected for a customs exam and must be put into storage while waiting for Customs release.
• Shipment requires a pre-pull and must be stored at the trucker’s yard.

The process of moving a shipment from one mode of transport to another.  This most often means picking up the container from port, bringing it to a warehouse, unloading it, and re-loading the cargo into a truck for final delivery.

All cargo tanks designed to be loaded by vacuum with full opening rear heads (6 months), internal visual inspection (I) - All insulated cargo tanks, except MC 330, MC 331, MC 338 (1 year) , lining test (L) - All lined cargo tanks transporting lading corrosive to the tank (1 year), pressure retest (P) - All cargo tanks which are insulated with no manhole or insulated and lined, except MC 338 (1 year), leakage test (K) - MC 330 and MC 331 cargo tanks in chlorine service (2 years), and thickness test (T) - All unlined cargo tanks transporting material corrosive to the tank, except MC 338 (2 years)

Typically charged by a truck driver if they must wait more than 1-2 hours while cargo is being unloaded. Charges may be incurred at either port pick up/ return if there is heavy port congestion, or at the delivery destination. Wait time is a prorated hourly charge.

Charged by the trucker if a container is stored at the trucker’s yard, instead of a terminal.  If a container cannot be delivered to its destination before the Last Free Day, the container may be stored at the trucker’s yard to avoid costly demurrage charges.