Glossary of Trade & Shipping Terms

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Glossary of Trade & Shipping Terms - L

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l - liter
L. def. - Latent defect
L.A.S.H. - Lighter aboard ship
L.A.T. - Linseed Association Terms
L.A.T.F. - Lloyd's American Trust Fund
L.A.U.A. - Lloyd's Aviation Underwriters' Association
L.A.U.T.R.O. - Life Assurance and Unit Trust Regulatory
L.C. - London clause (chartering), Label clause
L.C.L. - Less than full container load
L.C.T.A. - London Corn trade
L.d.d. - Loss during discharge
L.d.l. - Loss during loading
L.H.A.R. - London, Hull, Antwerp or Rotterdam
L.I.B.C. - Lloyd's Insurance Brokers' Committee
L.I.M. - London Insurance Market
L.I.M.D.S.M. - London Insurance Market Data Standards Manual
L.I.M.T.C.G. - London Insurance Market Technical Co-ordination Group
L.I.P. - Life Insurance Policy
L.L.T. - London Land Terms
L.M.C. - Lloyd's machinery certificate
l.m.c. - Low middling clause (cotton trade)
L.M.C.C. - Lloyd's machinery certificate, continuous survey
L.N.G. - Liquified natural gas carrier
l.n.y.d. - Liability not yet determined
L.P.G. - Liquified petroleum gas carrier
L.P.S.O. - Lloyd's Policy Signing Office
L.R. - Lloyd's Register of Shipping
L.R.M.C. - Lloyd's refrigerating machinery certificate
l.s. - Lump sum
L.S. Cls. - Livestock clauses
L.S.H.W. Liab. - Longshoremen's and Harbor Workers' Liability
L.S.T. - Local standard time
L.T.A. - Long term agreement
L.U.A. - Lloyd's Underwriters' Association
L.U.A.A. - Lloyd's Underwriting Agents Association
L.U.A.M.C. - Leading underwriter agreement for marine cargo
L.U.A.M.H. - Leading underwriter agreement for marine hull
L.U.C.R.O. - Lloyd's Underwriters' Claims andRecoveries Office
L.U.T.I.R.O. - Life and Unit Trust Intermediaries Regulatory Organization
L.W. - Low water
L.W.O.S.T. - Low water, ordinary spring tides
L/A - Letter of authority. Landing account. Lloyd's agent
L/C - Letter of Credit
L/C - Letter of Credit
l/u - Laid up, Letter of undertaking
L/U - Leading Underwriter
La Zone Franc - See: Franc Zone.
Labor Advisory Committee - A committee of private sector advisors, consisting of trade union representatives and other experts, which advises the Labor Department and the United States Trade Representative on U.S. trade policy matters.
LAES - Latin American Economic System
LAFTA - Latin American Free Trade Association
lagan - Goods that have been jettisoned but are attached to a floating object so that they can be recovered.
LAIA - Latin American Integration Association
Laisser Passer - A document accorded by a host government to foreign diplomatic personnel, which permits them to pass freely across the border of that country.
Lake Chad Basin Commission - The LCBC recommends plans for developing the Chad Basin and coordinates research programs. The Commission was established in 1964; headquarters are in N'Djamena, Chad. LCBC members include: The Cameroon, Chad, Niger, and Nigeria.
LANBY - Large automatic navigation buoy
LASH - Lighter aboard ship
Latin American Association of Development Financing Institutions - The Association promotes cooperation among members in ways which support the integration of Latin American economies, including efforts to improve the flow of information among members and encouraging studies of problems of common interest. Members include 24 Latin American countries and several countries in Europe and North America. The Association was established in January 1968; headquarters are in Lima, Peru.
Latin American Economic System - LAES (Spanish: Sistema Econ¢mico Latinoamericano, SELA), established in October 1975, promotes economic and social integration among approximately 26 Latin American and Caribbean member states. The System also seeks to present a united view for Latin America before agencies of the European Economic Communities and the United Nations. LAES headquarters are in Caracas, Venezuela.
Latin American Export Bank - See: Banco Latinoamericano de Exportaciones.
Latin American Free Trade Association - See: Latin American Integration Association.
Latin American Integration Association - LAIA (Spanish: Asociaci¢n Latinoamericana de Integraci¢n, ALADI) was originally created in 1960 as the Latin American Free Trade Association (LAFTA). LAFTA was restructured by the 1980 Montevideo Treaty as a more flexible alternative to LAIA. LAIA, whose membership included Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Mexico, Paraguay, Peru, Uruguay, and Venezuela, has been declining as a major Latin American integration effort in favor of regional efforts, such as Mercosur. Association headquarters are in Montevideo, Uruguay.
latitude - Distance north or south of the equator.
LCB - Local Competitive Bidding
LCBC - Lake Chad Basin Commission
LCL - Less than full container load
LDC - Less Developed Country
LDCs - Least developed countries
ldg. - Loading
Ldg. & Dly. - Landing and delivery
lds. - Loads
LDT - Light displacement tons
League of Arab States - The League of Arab States (or Arab League) is a regional grouping aimed at improving relations among Arab nations. Members include: Algeria, Bahrain, Djibouti, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Mauritania, Morocco, Oman, Palestine, Qatar, Saudi Arabia, Somalia, Sudan, Syria, Tunisia, United Arab Emirates, Yeman Arab Republic, Yemen People's Democractic Republic. The League was established in March 1945; headquarters are in Cairo, Egypt. See: Arab Bank for Economic Development in Africa Arab Fund for Economic and Social Development.
Leg. Chgs. - Legal charges
length overall - Maximum length between the farthest ends of a ship.
Less Developed Country - An LDC is a country with low per capita gross national product. Terms such as third world, poor, developing nations, and underdeveloped have also been used to describe less developed countries.
Lesser Developed Countries - The classification LLDC (sometimes also known as "Least" Developed Countries) was developed by the United Nations to give some guidance to donor agencies and countries about an equitable allocation of foreign assistance. The criteria for designating a country an LLDC, originally adopted by the UN Committee for Development Planning in 1971, have been modified several times. Criteria have included low: per-capita-income, literacy, and manufacturing share of the country's total gross domestic product. There is continuing concern that the criteria should be more robust and less subject to the possibility of easy fluctuation of a country between less developed and least developed status.
Letter of Credit - A financial document issued by a bank at the request of the consignee guaranteeing payment to the shipper for cargo if certain terms and conditions are fulfilled. Normally it contains a brief description of the goods, documents required, a shipping date, and an expiration date after which payment will no longer be made.- An Irrevocable Letter of Credit is one which obligates the issuing bank to pay the exporter when all terms and conditions of the letter of credit have been met. None of the terms and conditions may be changed without the consent of all parties to the letter of credit.- A Revocable Letter of Credit is subject to possible recall or amendment at the option of the applicant, without the approval of the beneficiary.- A Confirmed Letter of Credit is issued by a foreign bank with its validity confirmed by a U.S. bank. An exporter who requires a confirmed letter of credit from the buyer is assured payment from the U.S. bank in case the foreign buyer or bank defaults.- A Documentary Letter of Credit is one for which the issuing bank stipulates that certain documents must accompany a draft. The documents assure the applicant (importer) that the merchandise has been shipped and that title to the goods has been transferred to the importer.
Letter Of Credit - An instrument of audit issued by the buyer's bank, at the buyer's request, in which the issuing bank promises to pay the seller upon presentation of documents stipulated in the terms and conditions of the audit
LETTER OF CREDIT (Confirmed) - A letter of audit issued by one bank to which another bank added its irrevocable confirmation to pay, thereby obligating itself in the same manner as the opening bank. For example, "we hereby confirm this credit and undertake to pay drafts drawn in accordance with the terms and conditions of the letter of credit."
LETTER OF CREDIT (Cumulative) - A revolving letter of credit which permits any amount not utilized during any of the specified periods to be carried over and added to the amounts available in subsequent periods.
LETTER OF CREDIT (Deferred Payment) - A letter of credit issued for the purchase and financing of merchandise, similar to acceptance letter of credit, except that it requires presentation of sight drafts which are payable on installment basis usually for periods of 1 year or more. Under this type of credit, the seller is financing the buyer until the stipulated time his drafts can be presented to the bank for payment. There is a significant deference in the bank's commitment, depending on whether the negotiating bank advised or confirmed the letter of credit.
LETTER OF CREDIT (McLean) - A letter of credit which requires the beneficiary to present only a draft or a receipt for specified funds before he receives payment.
LETTER OF CREDIT (Negotiable) - A letter of credit issued in such form that it allows any bank to negotiate the documents. Negotiable credits incorporate the opening bank's engagement, stating that the drafts will be duly honored on presentation, provided they comply with ail terms of the credit.
LETTER OF CREDIT (Non-Cumulative) - A revolving letter of credit which prohibits the amount not utilized during the specific period to be available in the subsequent periods.
LETTER OF CREDIT (Revocable) - This type of letter of credit is not as legally binding as an irrevocable credit. It can be modified or canceled without the beneficiary's consent, unless the negotiation has already taken place. The issuing bank must honor the drafts negotiated before the notice of revocation or amendment has been made. Negotiability is restricted to the advising bank and confirmation is usually not available.
LETTER OF CREDIT (Revolving) - A credit which includes a provision for reinstating its face value after being drawn under within a stated period of time. This kind of credit facilitates the financing of on going regular purchases.
LETTER OF CREDIT (Standby) - One issued for the express purpose of effecting payment in the event of default. The issuing bank is prepared to pay but does not expect to as long as the underlying transaction is properly fulfilled.
LETTER OF CREDIT (TRAVELER'S) - A letter of credit which is issued by a bank to a customer preparing for an extended trip. The customer pays for the letter of credit at the time of issuance, and a bank issues the letter for a specified period of time in the amount purchased. The bank furnishes a list of correspondent banks where drafts against the letter of credit will be honored. The bank also identifies the customer by exhibiting a specimen signature of the purchaser in the folder enclosing the list of correspondent banks. Each bank, which honors a draft, endorses on the letter of credit the date when a payment was made, the bank's name, the amount drawn against the letter of credit, and charges the issuing bank's account.
Letter of Credit ADVICE OF CREDIT - Communication by the advising bank that a letter of credit has been issued. The primary responsibility of the advising bank is to take care in establishing the authenticity of the credit.
Letter of Credit ADVISING BANK - A bank which acts as an agent of the issuing bank of a letter of credit in supplying the details of the letter of credit to its beneficial, without any responsibility or engagement on its part.
Letter of Credit-ACCEPTANCE FINANCING - An acceptance transaction unrelated to a letter of credit, created for the purpose of borrowing, is referred to as acceptance financing. In contrast to direct loans, the bankers acceptance provides a vehicle of financing customers without the use of bank funds. By accepting a draft the bank merely adds its name to a bill which then can be used to raise funds by selling in the open market.
Liab. - Liability
LIB - Limited International Bidding
LIBID - London Interbank Bid Rate
LIBOR - London Interbank Offered Rate
Life-Cycle Processing - An accounting approach in which a company sets product prices based on recovering costs over the life cycle of the product. U.S. authorities dispute the validity of this approach because projections of future yield improvements cannot be verified at the time of dumping calculations.
LIFFE - London International Financial Futures and Options, Exchange
lift - Weight of an individual piece of cargo lifted or carried.
lift-on lift-off - To load and discharge cargo by lifting it on and off a ship via cranes. This is the method generally used for containers.
Lighter - An open or covered vessel which transfers cargo between ship and shore, used mainly in harbors and inland waterways. Lighters are generally used for shorter hauls than barges.
LIMEAN - London Interbank Mean Rate
Limited (Liability) - In the United Kingdom there are two types of limited companies: (a) a private limited company in which the public cannot be invited to subscribe to any share issue and (b) a public limited company (plc) which can raise funds through share issues. Before a limited company can "go public," it must have a minimum share capital. A private limited company requires no minimum share capital.
Limited Appointment - Limited appointees to the U.S. and Foreign Commercial Service (or to other foreign services) are persons from the private sector or from the Federal Government who are non-career officers assigned overseas for a limited time.
Limited International Bidding - LIB is one of several forms of procurement made with World Bank financing. In some circumstances (such as: small purchases, urgent need, or few suppliers), suppliers or contractors of specialized goods and services participate by invitation rather than in response to an advertisement. See: International Business Opportunities Service International Competitive Bidding Local Competitive Bidding.
LIMNET - London Insurance Market Network
line - A company that operates a ship on a regular basis between advertised ports and offers space for goods in return for freight based on a tariff of rates.
Line Release System - The Line Release System, a part of Customs' Automated Commercial System, is designed for the release and tracking of shipments through the use of personal computers and bar code technology. To qualify for line release, a commodity must have a history of invoice accuracy, and be selected by local Customs districts on the basis of high volume. To release the merchandise, Customs reads the bar code into a personal computer, verifies that the bar code matches the invoice data, and enters the quantity. The cargo release is transmitted to the Automated Commercial System, which establishes an entry and the requirement for an entry summary, and provides the Automated Broker Interface system participants with release information.
Liquidation System - The Liquidation System, a part of Customs' Automated Commercial System, closes the file on each entry and establishes a batch filing number which is essential for recovering an entry for review or enforcement purposes. An entry liquidation is a final review of the entry. P.L. 95-410 (Customs Procedural Reform and Simplification Act of 1978) requires that all liquidations be performed within one year from the date of consumption entry or final withdrawal on a warehouse entry. Three one-year extensions are permitted.
Lkg. & bkg. - Leakage and breakage
Lkge & Bkge - Leakage and breakage
Ll. & Cos. - Lloyd's and Companies
LLDCs - Lesser Developed Countries
LNG - Liquefied natural gas
loa - Length overall
Local Competitive Bidding - LCB is one of several forms of procurement made with World Bank financing. LCB is generally used for contracts involving: (a) labor intensive activities; (b) small value; (c) locally procurable services or goods priced below the world market; (d) intermittant work; or (e) activities to be performed at numerous sites. See: International Business Opportunities Service International Competitive Bidding Limited International Bidding.
Lombard Rate - The Lombard rate is one of the official interest rates in Germany used to regulate the money market. Other countries use the term Lombard to describe rates which function somewhat like the Lombard rate. The Swiss, for example, have their own Lombard rate. In France, it's called the Central Bank Intervention rate but performs the same function.
Lome Convention - The Convention is an agreement concluded at Lome, Togo in February 1975 and which entered into force in April 1976. The orginal Convention has been followed by several additional Lome Conventions which expanded the scope of the original agreement. The Convention is between the European Community (EC) and 62 African, Caribbean, and Pacific states (mostly former colonies of the EC members). The agreement covers some aid provisions as well as trade and tariff preferences for the ACP countries when shipping to the EC. Lome grew out of the 1958 Treaty of Rome's "association" with the 18 African colonies/countries that had ties with Belgium and France. The ACP members are: Angola, Bahamas, Barbados, Benin, Botswana, Burkina Faso, Burundi, Cameroon, Cape Verde, Central African Republic, Chad, Comoros, Congo, Cote d'Ivoire, Djibouti, Dominica, Equatorial Guinea, Ethiopia, Fiji, Gabon, Gambia, Ghana, Grenada, Guinea, Guinea-Bissau, Guyana, Jamaica, Kenya, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritius, Mauritania, Mozambique, Namibia, Niger, Nigeria, Papua New Guinea, Rwanda, Saint Lucia, Saint Vincent, Samoa, Sao Tome and Principe, Senegal, Seychelles, Sierra Leone, Solomon Islands, Somalia, Sudan, Suriname, Swaziland, Tanzania, Togo, Trinidad and Tobago, Uganda, Zaire, Zambia, and Zimbabwe.
London Club - The London Club, a creditor cartel of commercial banks, evolved in the early 1980s. Debt rescheduling (i.e., constructing new repayment profiles over a specific period of time) was a primary function of the club. The Brady deals on debt restructuring (i.e., renegotiating the entire stock of outstanding debt at a discount), obviated the need to reschedule repayments every couple of years. In some respect, the Bank Advisory Committee has replaced the London Club. The Paris Club, also concerned with debt repayment, is an association of official creditors. See: Bank Advisory Committee.
London Interbank Bid Rate - LIBID is the rate of interest paid for funds in the London interbank market. The bid to Libor's offer has been used as a reference for floating rate payments for especially strong borrowers.
London Interbank Mean Rate - Abbreviated as LIMEAN, this is the midpoint of the LIBOR-LIBID spread. LIMEAN has been used as a reference for floating rate payments.
London Interbank Offered Rate - LIBOR, the most prominent of the interbank offered rates, is the rate of interest at which banks in London lend funds to other prime banks in London. LIBOR is frequently used as a basis for determining the rate of interest payable on Eurodollars and other Eurocurrency loans. The effective rate of interest on these Eurocredits is LIBOR plus a markup negotiated between lender and borrower. See: Interbank Offered Rate.
London International Financial Futures and Options Exchange - LIFFE, Europe's leading exchange, trades in futures contracts including short-term interest rates, government bonds, stock indices, and traded options on these instruments. The Exchange was established in 1982 to provide a means for hedging interest rates and currency exposures against volatility. Originally called the London International Financial Futures Exchange, LIFFE merged in March 1992 with the London Traded Options Market (LTOM) and retained the original acronym.
long ton - 2,240 lbs.
Long-Dated Forward - The long-dated forward is a foreign exchange contract whose maturity exceeds one year; a few have extended over ten years.
longitude - Distance east or west of the Greenwich meridian.
Louvre Accord - The Louvre Accord (February 1987) attempted to stop the dollar's fall and stabilize currency relationships by introducing reference ranges among the G-7 currencies. See: Plaza Accord.
LPG - Liquefied petroleum gas
Lt.-v. - Light-vessel
LTD - Limited (Liability)
LTFV - Less Than Fair Value
LTGE - Lighterage
Ltr. - Lighter
LUF - Lifting unit frame
Lusophone Countries - Lusophone countries are those in which the official language is Portuguese: Angola, Brazil, Cape Verde, Guinea-Bissau, Mozambique, Portugal, and Sao-Tome and Principe.
Restricted - A condition within the letter of credit which limits its negotiation to a named bank.