MAB OR MAWB To the Top

Abbreviation for “Master Air Waybill”.

MADRID AGREEMENT CONCERNING THE INTERNATIONAL REGISTRATION OF MARKS

An international agreement under which the owner of a trademark or service mark can secure protection for his mark in all the states adhering to the convention by means of a single application.

MADRIDUNION

An international agreement, concluded for the purpose of suppressing false or misleading origin marking on goods sold in international commerce. Member states are obligated to seize and deny importation to merchandise bearing false marking indicating origin in any other member state.

MAINTENANCE-OF-VALUE CLAUSE

A provision in a contract for adjustment in prices or values in the contract in response to exchange rate fluctuation under specified conditions. Also known as an index clause.

MAIZE

Indian corn (zea mays), more commonly called corn in the United States.

MALTA AGREEMENT

Adoption by certain governments of air carrier liability limitations as expressed in the Montreal Intercarrier Agreement.

MANAGED ECONOMY

Economy in which considerable government intervention takes place in order to direct economic activity.

MANAGED FLOAT

When a floating currency is not allowed to float freely and is managed in a desired direction by central bank intervention. The term “dirty float” is often used by those who feel abused by this practice.

MANAGEMENT CONTRACT

An arrangement whereby a firm manages or operates a foreign plant on behalf of its local owners in return for a stipulated fee or percentage of the profits.

MANAGEMENT FEE

Fee charged by an Export Credit Agency (ECA) or commercial bank for services performed in the management of a project or syndicated financial arrangement. Sometimes called an arrangement fee.

MANAGING AGENT

A firm that serves as a resident exclusive agent on behalf of a foreign manufacturer. The MA often invests in the local venture and exercises considerable latitude in its operation. Compensation is usually derived on the basis of costs plus a share of the profits.

MANIFEST

This document lists in detail all the bills of lading issued by a vessel or its agent or master, i.e., a detailed summary of the total cargo of vessel, which is used principally for customs purposes.

MANNING AND SUBSISTENCE

The expenses associated with paying and feeding a ship’s crew, including allied fringe benefits.

MANSHOLT PLAN

A series of programs, originally articulated by European Economic Community Commissioner Sicco Mansholt in 1968, for the development and harmonization of European agriculture.

MANUFACTURED OR PROCESSED

An article must be manufactured or processed in the United States in determining Drawback, a simple change is not enough to permit recovery in drawback. The article must be transformed into a new item having a distinctive name, character, or use.

MANUFACTURER’S EXPORT AGENT

A firm which acts as an export sales agent for several non-competing manufacturers. Business is transacted under the name of the agent firm.

MANUFACTURER’S PARTICULARS

Details of the construction of an intermodal container, as specified in the container’s Data Plate.

MAQUILADORA

Export-oriented industries operating in Mexico in a narrow zone along the U.S. border. The zone was established by the Mexico government in response to high unemployment in the region. Foreign firms locating within the zone (mostly U.S. manufacturers) are generally exempt from Mexico’s strict foreign investment code. The manufacturers are permitted to import raw and semiprocessed materials duty free, to employ Mexican workers, and to re-export the finished product paying duty only on the value of labor and foreign materials added in Mexico.

MARGIN

A cost calculation performed in association with vessel operations that allows for potential cost overruns, e.g, lost days due to adverse weather. A margin of 5 percent is common per voyage.

MARGIN FEE

An excise tax in marine insurance imposed upon insurance premiums remitted to foreign insurers.

MARGINAL COSTS

Increase or decrease in costs as the result of one more or one less unit of output.

MARINE ADVENTURE

The ship’s owners and every shipper of goods on that vessel are part of the adventure, a term of art in the marine insurance business.

MARINE BELT

Coastal waters subject to the municipal jurisdiction of the states which they border. The United States exerts “custom jurisdiction” up to twelve miles from the shore, and many states claim authority up to two hundred miles from shore or to the edge of continental shelf as exclusive preserves for fishing, mining, or oil drilling. There is a distinction in American usage between “marine belt” and “maritime belt.” In most other countries the two terms would be interchangeable, however, inasmuch as the United States is a confederation of states, the term maritime belt is used to describe the authority of coastal states of the U.S. over their coastal water, as distinguished from the broader jurisdiction of the federal government over maritime affairs.

MARINE CARGO INSURANCE

Insurance covering loss or damage to goods in transit. While originally devised to cover only goods transported by sea, most marine cargo policies also cover land and air transport.

MARINE EXTENSION CLAUSE

A provision in an ocean marine cargo policy that provides coverage of the merchandise in situations where there is a deviation by the vessel, transhipment, forced discharge, or commencement of transit to a point other than that covered by the policy. Marine extension clauses are customary in virtually all ocean marine cargo policies.

MARINE INTEREST To the Top

The rate of interest applicable to bonds for Bottomry and Respondentia. As a rule such rates were far in excess of those charged on commercial transactions.

MARITIME

Business pertaining to commerce or navigation transacted upon the sea or in seaports in such matters as the courts of admiralty have jurisdiction over, concurrently with courts of common law.

MARITIME ADMINISTRATION (MarAd)

A U.S. government agency, while not actively involved in vessel operation, administers laws for maintenance of a merchant marine for the purposes of defense and commerce.

MARITIME BELT

See Marine Belt.

MARITIME LIEN

A claim upon a vessel arising from a maritime operation. Maritime liens traditionally arise from the following obligations: seamen’s claims for wages; salvage; torts, involving collision and personal injuries (except seamen’s injury claims covered by the Jones Act); general average; preferred ship mortgages; supplies and repairs; piloting, wharfage, stevedoring; claims against cargo for unpaid freight; obligations for damage to cargo; breach of charter parties; and bottomry and respondentia bonds. As a practical matter, a maritime lien will not normally arise except in conjunction with one of these conditions.

MARITIME SUBSIDY BOARD

A body collateral to the Maritime Administration responsible for reviewing application for subsidies to U.S. merchant vessel operators to permit competition with lower-cost foreign vessel operator. The board is responsible to assistant secretary of transportation for maritime affairs.

MARK

As used on containers in foreign trade, a symbol or initials shown together with the port of importation and the final destination, if different. Marks are registered at appropriate customs houses; they also appear on bills of lading and invoices. In domestic trade, it is common to mark container with the name and address of the recipient, but this is rarely done in foreign trade.

MARKED CAPACITY

The carrying capacity of a car as marked or stencilled thereon.

MARKET ACCESS

The degree of participation in the domestic market that a nation allow to foreign suppliers. Tariffs, quotas, and similar protective devices are devices imposed to limit market access.

MARKET ANALYSIS

Research aimed at predicting or anticipating the direction of stock, bond, or commodity markets, based on technical data about the movement of market prices or on fundamental data such as corporate earning prospects or supply and demand.

MARKET DISRUPTION

A condition in which foreign imports of a given product increase in quantity so rapidly as to cause, or threaten to cause material injury to a competing domestic industry. A finding of market disruption before the International Trade Commission may result in retaliatory actions against the offending products or the countries from which they are imported.

MARKET ECONOMY

Economy that relies largely upon market forces to allocate resources and goods, and to determine prices and quantities of each good that will be produced. Capitalist economies are market economies, while managed economies are less so.

MARKETING ORIENTATION

The location of a manufacturing facility near its principal markets. It usually occurs in cases where the cost of transporting the finished product significantly exceeds the cost of transporting the raw material.

MARKET PRICE

A recent price agreed upon by buyers and sellers of a product or service, as determined by supply and demand.

MARKING DUTIES

A special duty, in addition to ordinary duties, imposed upon merchandise not properly marked so as to indicate to the purchaser the country of origin. Payment of marking duties does not relieve the importer from the obligation to mark the goods retroactively as to country of origin. Imported articles may be exempted from the marking requirements in those cases where the country of origin is obvious or marking is not feasible.

MARKS AND NUMBERS

Identifying symbols and numbers placed by the shipper on each piece of cargo in a shipment. Normally, the number of the particular piece over the total number of pieces will be shown (1/11, 2/11, etc.) as well as the gross weight and port of destination. Some buyers request that their own proprietary symbols (triangles, circles, etc.) also be put on each piece of cargo.

MASTER

In shipping terms, the Master is the captain of a vessel.

MASTER AIR WAYBILL

A document issued by the originating airline when more than one air carrier is involved with a shipment. MABs are also issued to air freight consolidators to support the House Air Waybill that they issue to their individual shippers.

MASTER POLICY

A casualty insurance policy that provides a multinational firm with uniform protection for all, or substantially all, its operations worldwide.

MASTER PROTEST

A document issued by a vessel’s master upon reaching port in which he details unusual occurrences during the voyage, such as heavy seas or damage to the ship or cargo. Also known as captain’s protest.

MASTER TARIFF

A tariff filed with I.C.C. applying to a large number of applicable tariffs. Often used to publish general rate increases.

MATE’S RECEIPT

Receipt signed by the mate of a vessel acknowledging receipt of cargo. This type of receipt is not usually encountered, except in the case of chartered vessels as opposed to vessels in regular line trade.

MATURE ECONOMY

Economy of a nation whose population has stabilized or is declining, and whose economic growth is no longer robust.

MATURITY DATE

The date when a note, draft, acceptance, or letter of credit becomes due for payment.

MAXIMUM PAYLOAD

The maximum gross cargo weight capacity for a container.

MEASUREMENT CARGO To the Top

A cargo on which the transportation charge is assessed on the basis of measurement.

MEASUREMENT TON

A space measurement, usually 40 cubic foot or 1 cubic meter, which is used to determine freight charges on low-density cargos. Measurement is taken on the external packaging, including skids or pallets.

MEDIUM OF EXCHANGE

Commodity or product that is generally accepted in a market as a standard of value and as a measure of value and wealth. The most common medium of exchange is money; however, in some primitive markets other commodities (cattle, precious metals, etc.) may be used.

MEET A DRAFT

To pay or honor a draft falling due.

MEMBER BANK

A bank that holds membership in the Federal Reserve system. Membership is mandatory for banks with Federal charters. Member banks are obliged to subscribe a fixed portion of their capital and surplus to stock of their regional banks, must maintain prescribed reserves, and submit to periodic examinations.

MEMBER LINE

A steamship line that is a member of a conference.

MEMORANDUM BILL OF LADING

The duplicate copy of a bill of lading.

MEMORANDUM TARIFF

An abstract of a freight tariff. This document, usually published by carriers in a given trade, contains selected rates and other information extracted from the official tariff.

MERCANTILE AGENCY

A firm that specializes in commercial credit reporting.

MERCANTILE PAPER

Acceptances, short-term notes, and similar short-term obligations of firms engaged in the merchandising, but not the production, of commodities.

MERCANTILISM

Seventeenth and eighteenth century economic policy under which trading nations generated wealth and prospered by exporting manufactured good in exchange for gold. In modern times, second-rate status of nations having a heavy dependence on imported manufactured goods.

MERCHANT

One who buys and sells goods.

MERCHANT BANK

A bank that provides a variety of financial services to commercial entities, including investment banking, acceptance of bills of exchange, insurance portfolio management, as well as business financing. Merchant banks are West European institutions and do not customarily accept retail banking business.

MERCHANTMAN

A vessel engaged in the business of carrying goods.

MERCHANT MARINE

A nation’s fleet of ocean going commercial cargo and passenger vessels. A vessel is part of the merchant marine of the country in which it is registered; it may be impressed into naval service of that country in time of war or other national emergency.

METALLIC BASIS

A system in which a national currency is supported by a base of precious metal.

METRIC SYSTEM

A decimal system in which the meter measuring 39.37 inches is the basis of all measures whether of length, surface, capacity, or volume. Multiples of the unit are expressed by prefixes, deka, hecto, and kilo, indicating 10, 100, and 1000, respectively. Decimal parts of the unit are indicated by the prefixes deci, centi, and milli, meaning 1/10, 1/100, and 1/1000, respectively.

METRIC TON

2,204.6 pounds, or 1,000 kilograms.

MICROBRIDGE

Intermodel movement by rail or truck with a preceding subsequent movement by water, usually concerning an inland point.

MINI LANDBRIDGE

A mini landbridge move is a combination of water and rail transport in which the container arrives at one U.S. coast and is transported to the other by railroad instead of the originating vessel transiting the Panama Canal.

MINIMUM BILL OF LADING

Ocean bills of Lading are known as minimum because they contain a clause which specifies the least charge that the carrier will make for the issuance of a lading. The charge may be a definite sum, or the current charge per ton or for any specified quantity of cargo.

MINIMUM IMPORT PRICE

As used in conjunction with the Common Agricultural Policy of European Economic Community, GATE PRICE.

MINIMUM LENDING RATE

The rate at which the Bank of England lends to members of the discount market against the security of treasury bill or other government paper with less than five years to mature.

MINIMUM LIST

A statistical classification system for foreign trade advanced by the League of Nations. The report entitled Minimum List of Commodities for International Trade Statistics was published in 1938. Following World War II, it was superseded by the United Nations Standard International Trade Classification.

MINIMUM REVENUE To the Top

The lowest charge that will be assessed against a shipment.

MISCELLANEOUS CHARGE ORDER (MCO)

A document issued by a carrier or its agent, in conjunction with a passenger ticket and baggage check and which may be used only for payment of baggage shipped as cargo.

MIXED CREDITS

Exceptionally liberal financing terms for export sale, ostensibly provided for a foreign aid purpose.

MIXED ECONOMY

An economy that possess the elements of both public and private ownership of the means of production.

MIXED REGULATIONS

Regulations that require that certain imported raw or processed products be mixed with a specified portion of equivalent domestic products as a conditions of sale.

MODE

Frequently used to refer to the basic division of the transportation industry. The principal modes of transportation are truck, rail, air and water.

MODIFIED PROCEDURE

A method of handling formal complaints before the I.C.C. under which part of the testimony is handled by correspondence in the form of sworn statements.

MONETARY BLOC

A group of countries that have in common the use of a particular reserve asset. Traditionally, the U.S. dollar and the pound sterling have served as primary reserve assets for many nations, resulting in monetary blocs arising around the dollar or the pound.

MONETARY RESERVE

Government’s stockpile of foreign currency and precious metals, used to back up its currency, also called international reserve.

MONEY OF ACCOUNT

The currency unit used in a particular country to record governmental and private transactions. In the United States the money of account is the dollar; in Britain it is the pound sterling.

MONEY VALUE

The value of a good or service expressed in units of the currency in use.

MONTANT DE SOUTIEN

A plan devised by the European Economic Community in 1963 as the basis of agricultural trade negotiations during the Kennedy round. The plan is predicated upon a reference price for a given agricultural commodity; any imports below the reference price would incur a levy equal to the spread between the market and reference prices, thereby effectively eliminating import price competition with domestic EEC produce.

MOORSOM TON

A unit of measurement consisting of one hundred cubic feet, used principally in connection with measuring vessels.

MORIDIDA

Latin American usage for a gratuitous payment to a business associate or government official to stimulate a desired result.

MOST FAVORED NATION (MFN)

A privilege granted by one country to another whereby the products of the privileged country pay the lowest duty charged by the granting country.

MOST-FAVORED NATION PRINCIPLE

This principle states that a country agrees to refrain from discriminating against countries to which it has granted this status in the formulation and enforcement of its trade policy. It will treat equally all countries to which it extends this privilege. For example, any tariff imposed on imports from such a country will be no higher than equivalent tariffs imposed on imports from other countries but could be lower. The principle represents a central pillar of the GATT agreement.

MOTHER SHIP

A vessel that serves only major ports directly, turning over it’s cargo to barges or smaller conveyances for delivery.

MOTOR SHIP

A vessel that employs a marine diesel engine as its propulsion method. The fuel efficiency of diesel engines causes them to operate more cost effectively than steam turbine plants, which were used in earlier vessel designs.

MOTOR VEHICLE

Any vehicle, machine, tractor, trailer or semi-trailer propelled or drawn by mechanical power and used upon the highway in the transportation of passengers or property.

MULLEN TEST To the Top

A device to test the strength of fiberboard and similar material used as a substitute for wood in making shipping containers.

MULTI-FIBER ARRANGEMENT REGARDING INTERNATIONAL TRADE IN TEXTILES (MFA)

An international compact under GATT that allows an importing signatory country to apply quantitative restrictions on textile imports when it considers them necessary to prevent market disruption. The MFA provides a framework for regulating international trade in textiles and apparel with the objectives of achieving “orderly marketing” of such products, and of avoiding “market disruption” in importing countries. It provides a basis on which major importers, such as the United States and the European Community, may negotiate bilateral agreements or, if necessary, impose restraints on imports from low-wage producing countries. It provides, among other things, standards for determining market disruption, minimum levels of import restraints, and annual growth of imports. Since an importing country may impose such quotas unilaterally to restrict rapidly rising textiles imports, many important textiles exporting countries consider it advantageous to enter into bilateral agreements with the principal textile importing countries. The MFA went into effect on Jan. 1, 1974 and has been renewed three times, the latest was in 1986 for five years. It succeeded the Long-term Agreement on International Trade in Cotton Textiles (The LTA), which had been in effect since 1962. The LTS applied only to cotton textiles, the MFA now applies to wool, man-made (synthetic) fiber, silk blend and other vegetable fiber textiles and apparel.

MULTILATERALISM

The name given to a situation where countries seek to balance their overall transactions with the world as a whole rather than seeking to balance their bilateral payments with every single trading partner.

MULTILATERAL DEVELOPMENT BANKS (MDBs)

African Development Bank, Asian Development Bank, Inter-American Development Bank, World Bank group.

MULTILATERAL TRADE NEGOTIATION (MTN)

A multi-sided negotiation with several (more than two) parties participating.

MULTIMODAL BILL OF LADING

A bill of lading that provides for carriage of goods by more than one mode of transport (water, air, rail, motor), unlike a combined transport bill of lading, in which the issuer of the bill assumes responsibility for the goods through to destination. The multimodal bill may leave each carrier responsible for loss or damage during its respective segment of the journey.

MULTIMODAL TRANSPORT

The movement of goods by more than one mode, or type, of transport, for example, a movement by truck to a pier, then by ship to a foreign port, and finally by rail to the customer.

MULTINATIONAL COMPANIES/ENTERPRISES

The name given to any company/enterprise which owns, controls, and manages production establishments in at least two countries.

MULTITANK CONTAINER

An intermodal container which is internally segmented to allow carriage of different liquids. Such containers may be equipped with heating coils to accommodate substances normally solid or semisolid but which liquefy when heated.

MUTATIS MUTANDIS

Means the necessary changes having been made, or the substitution of new terms.

MUSHROOM LINE

A transportation line operating mushroom steamers.

MUSHROOM STEAMERS To the Top

A vessel that has no established operating policy and whose service is inaugurated on short notice to and from advantageous ports.