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Glossary of Trade Terms

Hague Rules
International Convention for the Unification of Certain Rules relating to Bills of Lading - Brussels Convention of 1924. A set of rules for international transport contained in an international treaty first published in 1924 and subsequently implemented by the greater part of world trading nations. The Hague Rules were revised and updated in the so-called Hague Visby Rules, published in 1968, which have not received so universal an implementation as their predecessors.
Hague Visby Rules
Set of rules amending the Hague rules, published in 1968, which have not been implemented by as many countries as the predecessor Hague Rules.
A transport document issued by an air freight consolidator.A non-negotiable shipping document used by the airlines for air freight.It is a contract for carriage that includes carrier conditions, such as limits of liability and claims procedures. In addition, it contains shipping instructions to airlines, a description of the commodity and applicable transportation charges.It performs the functions of a bill of lading in land surface transport.See also 'Bill of lading'.
Hedge Contract(FEH)
A hedge contract is generally regarded as a non-delivery forward exchange contract. Customers take such positions to ‘hedge’ or reduce the risk of foreign exchange movements against their future foreign currency commitments. Non-delivery simply means that the customer did not intend to take/effect delivery of the foreign exchange on due date and cancels their position, with only the profit/cost being settled. This profit/cost is used to offset the profit/cost customer incurs when they finally settle their foreign currency commitments.
In each of these contracts the price of covering forward may be more or less than the spot exchange rate. The margins between the spot and the forward rates essentially reflect the interest rate differential between the two currencies concerned.
The payee or endorsee of a bill or promissory note who is in possession of it, or the bearer thereof.
Holder in due Course
A holder who takes a bill, complete and regular on the face of it, under the following conditions:
that they became the holder of it before it was overdue, and without notice that it has been previously dishonoured, if such was the case, and
that they took the bill in good faith and for value, and that at the time the bill was negotiated to them they had no notice of any defect in the title of the person who negotiated it.
Until the contrary is proved, every holder is deemed to be a holder in due course. This applies to all holders except the original payee as it has been held that they cannot be holder in due course.
The rights of the holder in due course are not affected when the acceptor or other party has been induced to sign the bill by fraud.
House air waybill (also ‘house AWB’ or ‘HAWB’)
A transport document issued by an air freight consolidator.
House bill of lading (house B/L)
A bill of lading issued by a freight forwarder. Often covers a consignment of parcels from various shippers that has been grouped or consolidated by the forwarder. The forwarder may, for example, receive a single groupage bill of lading from the carrier, then issue a series of house B/L’s to the respective shippers.
House to House
This term generally refers to a container yard to container yard (CY/CY) shipment (in which case it may be used merely to quote the rental rate for the container itself), but is also used in some cases synonymously with ‘door to door’, a term which more generally refers to overall transport services from seller’s premises to buyer’s premises.