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Glossary of Trade Terms

Margin or Forward Margin
The premium or discount for the term and currency involved in a forward exchange contract.
The differences between the buying and selling rates of a foreign exchange quotation or between the borrowing and lending rates in deposits. The expression is also used with respect to offshore loans as being the difference between cost of borrowing and return from lending.
Marine Bill of Lading(also ocean bill of lading)
The classic document of the traditional export trade, it plays three potential roles:
As a receipt for the cargo and evidence that the goods have been received in apparent good order
Evidence of the terms of the contract of carriage between the shipper and the ocean carrier, and
An instrument enabling transfer of control over delivery of the goods (negotiability), which allows the holder of the bill to trade the goods in transit by simple endorsement and physical transfer of the bill.
Marine Insurance
Generic term for insurance covering international transport of export transactions; used even in cases where ocean transport is not a predominant leg in the transport chain. Marine insurance can be provided either in terms of a specific policy or certificate (exporters should pay attention to which of the two is required under a documentary credit), or by open cover under which the insurer covers an indefinite number of future shipments; the shipper declares each shipment to the insurer as they are made.

Policy terms:

• Average - Loss or damage.

• General average - Loss occurring when extraordinary measures are taken to preserve the safety of the vessel.

• Particular average - Partial loss or damage; loss to an individual cargo interest rather than entire vessel.

• With average (WA) or With Particular Average (WPA) - Coverage of partial loss provided the claim amounts to at least 3% of the cargo’s insured value.

• Free of Particular Average (FPA) - coverage does not partial loss, a very restrictive form of policy.

• Free of Particular Average American Conditions (FPAAC) - Coverage only of losses resulting from vessel’s sinking, collision, stranding or fire.

• Free of Particular Average English Conditions (FPAEC) - Coverage only of losses resulting from or connected to a vessel’s sinking, collision, stranding or file.
Master Document/Form
Central document in export administrative systems under which all necessary information is entered into a single master document or computer file, which is then used to generate all shipping and export documents.
Mate’s Receipt
A document issued by the carrier to the shipper, indicating receipt of the goods, but not loading on board. Like a B/L, a mate’s receipt can be either clean or claused/dirty/foul, depending on whether or not the goods have been received in apparent good condition. The mate’s receipt can later be exchanged for the bill of lading.
Money Order
Multimodal Transport Bill of Lading
Bill of lading used for carriage whenever there are at least two different forms of transport, such as shipping by rail and by sea.
Multimodal Transport Operator(MTO)
A carrier who concludes multimodal transport contracts, i.e. contracts involving transport by more than one mode of carriage and for which the MTO accepts liability as a carrier.
Motor Vessel.