Your A–Z for Moving Goods Across Borders

For companies moving goods between the United States, Latin America, and Africa, mastering the language of trade and logistics is non-negotiable. Misunderstanding a single incoterm or documentation requirement can delay shipments by weeks, incur penalties, or break a deal. This glossary defines 20 essential terms used daily in cross-border commerce across these regions, with practical context for US-LATAM-Africa trade flows.

Core Shipping and Incoterms

Incoterms (International Commercial Terms) are globally standardized rules published by the International Chamber of Commerce that define the responsibilities of buyers and sellers for delivery, risk, and costs. For US-LATAM trade, FOB (Free on Board) is the most common incoterm, where the seller delivers goods on board the vessel at the port of origin. In US-Africa shipments, CIF (Cost, Insurance, and Freight) is frequently used, particularly for containerized cargo to West African ports. Spanish-speaking traders often refer to incoterms as "términos de comercio internacional." A related term, FCA (Free Carrier), is preferred for multimodal shipments where the seller hands goods to the carrier at a named place, common for land transport from US warehouses to Mexican border crossings.

Bill of Lading (B/L) is a legal document issued by a carrier to acknowledge receipt of cargo for shipment. It serves as a receipt, contract of carriage, and document of title. In trade with Latin America, the "Ocean Bill of Lading" is standard for sea freight, while in Africa, the "Telex Release" is often used to expedite cargo release when original documents cannot arrive in time. The Spanish equivalent is "conocimiento de embarque." A Sea Waybill is a non-negotiable alternative used for shipments where no letter of credit requires a full set of originals, reducing paperwork delays in fast-moving corridors like Miami to São Paulo.

Demurrage is a charge incurred when cargo remains in the terminal beyond the free time allowed after the vessel arrives. In congested ports like Santos (Brazil) or Mombasa (Kenya), demurrage fees can escalate quickly, often reaching hundreds of dollars per container per day. Traders must factor in potential delays when calculating total landed cost. Detention is a similar charge applied when containers are held outside the terminal beyond the agreed return time, common in inland destinations like Mexico City or Nairobi.

Customs and Documentation

Harmonized System (HS) Codes are a standardized numerical method of classifying traded products, used by customs authorities worldwide to determine duties, taxes, and regulations. For US-LATAM trade, getting the HS code right is critical because many Latin American countries apply higher tariffs on certain finished goods versus raw materials. In Africa, HS codes also determine eligibility for preferential rates under the African Growth and Opportunity Act (AGOA). The Spanish term is "código del sistema armonizado." Customs Bond is a guarantee required by US Customs and Border Protection (CBP) to ensure payment of duties and compliance. For imports from Latin America, a continuous bond is typical for frequent shippers, while single-entry bonds are used for one-off shipments from Africa.

Carnet ATA is an international customs document that allows temporary admission of goods (like samples or professional equipment) without paying duties and taxes. This is particularly useful for US companies exhibiting at trade shows in Mexico or South Africa, as it avoids lengthy customs clearance for re-export. The Spanish term is "cuaderno ATA." Certificate of Origin is a document certifying that goods in a particular shipment originate from a specific country, often required to claim preferential tariff treatment under free trade agreements like the USMCA (US-Mexico-Canada) or AGOA. For US-LATAM trade, the NAFTA/USMCA certificate has been replaced by a simpler statement of origin, but many African customs authorities still require a formal certificate.

Transportation Modes and Infrastructure

Intermodal Transport refers to moving goods in the same container or vehicle using multiple modes of transportation (truck, rail, ship) without handling the cargo itself when changing modes. This is the backbone of US-LATAM logistics, where containers arrive at ports like Savannah and are transferred directly to rail for inland US destinations. In Africa, intermodal is growing but faces infrastructure gaps, especially for rail connections from Mombasa to Uganda. Less-than-Container Load (LCL) is a shipping method for cargo that does not fill a full container, consolidated with other shipments. LCL is popular for small- and medium-sized exporters in Latin America sending niche products to the US, and for US companies testing African markets with smaller volumes. The Spanish term is "carga consolidada."

Transshipment occurs when cargo is transferred from one vessel to another at an intermediate port to reach its final destination. Major transshipment hubs for US-LATAM trade include the Port of Balboa in Panama and Freeport in the Bahamas. For US-Africa trade, transshipment often happens via Algeciras (Spain) or Tangier (Morocco). Drayage is the short-distance transport of containers from a port or rail ramp to a nearby warehouse or distribution center. In congested gateways like Los Angeles/Long Beach or the Port of Veracruz, drayage delays are a common pain point, and reliable drayage providers are essential for maintaining supply chain velocity.

Warehousing and Inventory

Cross-Docking is a logistics practice where incoming goods are unloaded from inbound trucks or containers and immediately reloaded onto outbound vehicles with minimal or no storage in between. This is widely used in US-LATAM supply chains for perishable goods like avocados or flowers that require rapid movement from Mexican farms to US retailers. Bonded Warehouse is a facility authorized by customs authorities to store imported goods without payment of duties until they are released for consumption or re-export. Many US importers use bonded warehouses in Miami or Houston to defer duty payments on goods from Latin America while awaiting orders. The Spanish term is "almacén fiscal."

Just-in-Time (JIT) Inventory is a strategy where materials and goods are ordered and received only as needed for production or sales, minimizing holding costs. While JIT works well in stable US-LATAM corridors with reliable trucking, it is riskier in Africa where port congestion and infrastructure variability can disrupt schedules. Safety Stock is extra inventory held to mitigate the risk of stockouts due to demand fluctuations or supply disruptions. For US companies sourcing from Latin America, safety stock levels must account for seasonal weather disruptions (e.g., hurricanes in the Caribbean) and political instability.

Risk and Compliance

Force Majeure is a contractual clause that frees parties from liability when unforeseen events beyond their control prevent fulfillment of obligations. In US-LATAM-Africa trade, force majeure events can include port strikes (common in Argentina and South Africa), hurricanes, or civil unrest. The Spanish term is "fuerza mayor." Letter of Credit (L/C) is a bank-issued document that guarantees payment to the seller upon presentation of required shipping documents. L/Cs are widely used in US-Africa trade to mitigate payment risk, and in Latin American transactions where buyer creditworthiness is uncertain. The Spanish term is "carta de crédito."

Sanctions Compliance refers to adherence to trade restrictions imposed by governments, such as US sanctions on certain countries or entities. US exporters to Latin America must screen partners against the Office of Foreign Assets Control (OFAC) list, while African trade may involve sanctions related to countries like Sudan or Zimbabwe. Customs Valuation is the process of determining the value of imported goods for duty assessment. The World Trade Organization (WTO) Valuation Agreement sets rules based on transaction value, but Latin American customs authorities sometimes apply reference prices to prevent under-invoicing, requiring careful documentation from US exporters.

How Coppermont Applies These Concepts

At Coppermont, these trade and logistics terms are not just definitions — they are the building blocks of every cross-border transaction we facilitate. Whether structuring an FOB shipment from a Colombian coffee exporter, auditing demurrage charges at a Nigerian port, or advising on the right incoterm for a US-based machinery sale to Peru, we apply this vocabulary daily to reduce risk, cut costs, and speed up delivery. Our team combines deep knowledge of US, Latin American, and African trade regulations with hands-on logistics experience to ensure your cargo moves smoothly from origin to destination.

Ready to navigate your next shipment with confidence? Coppermont’s trade and logistics advisory services help you select the right incoterms, optimize documentation, and avoid costly delays. Schedule a consultation with our experts today.