International Trade Finance Terms from TEFO - H

H

Hallmark

1. Originally an impression made on gold and silverware introduced in the beginning of the fourteenth century in England to identify the quality of the metal used. Later, a mark to identify the maker and year of production.
2. Figuratively, a distinguishing characteristic.

Harbor Fees

Charges assessed to users for use of a harbor, used generally for maintenance of the harbor.

Harbor Master

An officer who is commander of harbor activities and directs the berthing, etc. of ships in a harbor.

Hard Loan

A foreign loan that must be paid in hard money.

Hard Money

Currency of a nation having stability in the country and a reputation abroad for economic strength, and as a result it has wide and ready acceptability on world markets.

Harmonized System (HS)

A multipurpose international goods classification system designed to be used by manufacturers, transporters, exporters, importers, customs, statisticians, and others in classifying under a single commodity code goods moving in international trade.

Harmonized Tariff Schedule of the United States (HTSUS)

(USA) An organized listing of goods and their duty rates which is used as the basis for classifying imported products and identifying the rates of duty to be charged on them. It is based on the international Harmonized System Convention.

Harter Act

(USA) An 1893 Federal Statute regarding ocean bills of lading and limitation of some carrier liabilities. It has been substantially superseded by the Carriage of Goods by Sea Act of 1936 and others.

Hatch

The opening in the deck of a vessel which gives access to a cargo hold.

Haulage

1. The local transport of goods.
2. Also the charge(s) made for hauling freight on carts, drays or trucks.
3. Also called cartage or drayage.

Hazardous Materials

A substance or material which has been determined to be capable of posing an unreasonable risk to health, safety, and property when transported in commerce.

Heavy Lift

Any article deemed by rules in a vessel's tariff to be beyond a certain weight. It may be too heavy for the ship's tackle and require special equipment such as a floating crane.

Heavy Lift Charge

In a maritime tariff, a charge made for lifting heavy articles to load or unload them.

Heavy Lift Vessel

A vessel with heavy lift cranes and other equipment designed to be self-sustaining in the handling of heavy cargo.

Hedge

To reduce one's risk of loss by compensating transactions on the other side. For example, buy goods for future delivery priced in a foreign currency. Hedge by buying the foreign exchange needed at the rate then in effect. Or, another way of hedging is to buy a forward exchange contract. In both cases the buyer will have a known cost in its own currency. This is a hedge against the risk of foreign exchange fluctuation; it is not a hedge against a change in the price of the goods.

Hedge Ratio

The amount of future exchange contracts, options, or underlying financial instruments, purchased or sold against a position to accomplish a hedge of the position.

High Density

High density cargo is cargo whose weight is high compared to its volume. A vessel tariff in which freight is charged according to weight or volume, whichever yields the highest freight charge, will result in high density freight being charged on a weight basis.

Hitchment

In maritime situations, if the tariff of the steamship company provides for it, portions of a shipment originating in different places may be joined together under one bill of lading from one shipper to one consignee at one destination.

Hold

1. The interior of a vessel below deck where cargo is carried.
2. to delay; to pause (verb); a delay; a pause (noun).
3. A verb with multiple other meanings than those noted above such as: to retain, to contain, to maintain, to bind, to bear, to own.

Hold For Pickup

Freight to be held at the carrier's destination location for pickup by the recipient.

Hold Harmless Contract

An agreement by which one party accepts responsibility for all damages and other liability that arise from a transaction, relieving the other party of any such liability.

Honor

To accept a bill of exchange; or to pay a note, check or draft at maturity.

Horizontal Export Trading Company

An export trading company which exports a range of similar or identical products supplied by a number of manufacturers who may be competitors on the domestic market.

House Air Waybill

1. A bill of lading issued by a freight forwarder for consolidated air freight shipments.
2. An airwaybill issued by an airfreight forwarder by which the forwarder assumes the risk and obligations of being "the carrier."

House-To-House

A shipping term indicating that a container will be offered by the carrier for use by the shipper and the receiver for the transport of the contents from the domicile of one to the domicile of the other, but the carrier only contracts to transport the loaded container from terminal at origin to terminal at destination.(usually called C/Y to C/Y - container yard to container yard.)

Hub And Spoke Routing

Air cargo routing pattern that feeds traffic from many places to a central airport where it is sorted and rerouted on other aircraft to final destinations.

Hull

The outer shell of a vessel.

Hump

An essential feature of a railcar sorting yard . The "hump" is that part of the track which is elevated so that when a car is pushed up on it and uncoupled, it runs down the other side by gravity and is switched onto the siding where a train is being made up for the desired destination.

Hundredweight Pricing

In transportation, special pricing for multiple-piece shipments (weighing over 100 pounds in total) traveling to one destination, which are rated on the total weight of the shipment as opposed to rating on a per package basis.