Glossary of Transportation & Logistics Terms
Accessorial Charges | Charges for supplementary services and privileges provided in connection with line-haul transportation of goods. These charges are not included in the freight charge and usually take the form of a flat fee. Some examples: inside delivery, lift gate and fuel surcharges. |
Accounts Payable (A/P) | Accounts payable (AP) represents the amount that a company owes to its creditors and suppliers (also referred to as a current liability account). Accounts payable is recorded on the balance sheet under current liabilities. |
Actual Valuation | Actual value of goods shown on bill of lading by shipper when rate to be applied depends on value. |
Adjustments | The act of adjusting; adaptation to a particular condition, position, or purpose. |
Advice of Shipment | Notice to local or foreign buyer that shipment has occurred, with packing and routing details. A copy of invoice usually is enclosed, and sometimes a copy of the bill of lading. |
Agent | An agent, in legal terminology, is a person who has been legally empowered to act on behalf of another person or an entity in a business transaction. |
Air Freight | Air freight is another term for air cargo that is, the shipment of goods via an air carrier. |
Air Freight Cost | The amount to be paid for the transportation of goods by air. |
Air Freight Forwarder | An air freight forwarder specializes in moving freight by air on either passenger aircrafts or specially designed cargo aircrafts. This specialization enables them to better understand the intricacies of air freight, create a relationship with the TSA, and, in many cases, provide better air rates. |
Air Waybill | A bill of lading that covers both domestic and international flights transporting goods to a specified destination. This is a nonnegotiable instrument of air transport that serves as a receipt for the shipper, indicating that the carrier has accepted the goods listed and obligates itself to carry the consignment to the airport of destination according to specified conditions. |
All-Cargo Aircraft | Aircraft, usually wide-body and/or containerized cargo aircraft that typically operate from one major airport to another. |
All Risk Insurance | Refers to a type of insurance coverage that automatically covers any risk that a contract does not explicitly omit. For example, if an “all risk” cargo policy does not expressly exclude a specific provision, then the policy would cover the provision or event. |
Alongside | Point of delivery beside a vessel; statement designating where the title to goods passes from one party to another. |
Arrival Notice | On arrival of freight at destination, notice is sent promptly to the consignee showing number of packages, description of articles, route, rate, weight, etc. |
ASN | Advanced Shipping Notice |
Authority | Operating rights granted a motor carrier by the DOT. |
Aviation and Transportation Security Act (ATSA) | An Act to improve aviation security, and for other purposes. Enacted by the Senate and House of Representatives of the United States of America in Congress. SECTION 1. SHORT TITLE. This Act may be cited as the ‘‘Aviation and Transportation Security Act’’. TITLE I—AVIATION SECURITY SEC. 101. TRANSPORTATION SECURITY ADMINISTRATION. |
Axle Load | Axle load means the total load transmitted to the road by an assembly of two (2) or more wheels whose centers are in one (1) transverse vertical plane or may be included between two (2) parallel transverse vertical planes forty (40) inches apart extending across the full width of the vehicle. |
Backhaul | 1) Return transportation movement, usually at less revenue than the original move 2) Movement in the direction of lighter traffic flow when traffic generally is heavier in the opposite direction 3) To move shipment back over part of a route already traveled |
Beneficial Ownership | One who enjoys the benefit of a property of which another is the legal owner.” The legal owner (i.e., the owner of record) may be described as the ” registered owner “, and if they are not the beneficial owner they may be described as a “nominee”. |
Bill of Lading | A document that establishes the terms of a contract between a shipper and a transportation company under which freight is to be moved between specified points for a specified charge. Usually prepared by the shipper on forms issued by the carrier, it serves as a document of title, a contract of carriage, and a receipt for goods. |
Billed Weight or Billable Weight | It is the weight used to calculate the rate for domestic and international transport services. The billable weight will be the greater of the dimensional weight compared to the actual weight of a shipment. |
Blind Shipment | When a consignee/receiver of a shipment is not aware of the shipper or its origin. The term double blind is used when the shipper does not know where the shipment will be delivered. |
Blocking and Bracing | Blocking means preventing a load from moving laterally (side-to-side, front-and-back) and bracing means preventing the load from moving vertically (up-and-down). Without proper bracing, a load can jump over its blocks. And without proper blocking, the braces will not hold. |
Bogie | A chassis or framework that carries a wheelset, attached to a vehicle, a modular subassembly of wheels and axles. |
Bonded Warehouse | A warehouse for storage or manufacture of goods on which payment of duties is deferred until the goods enter the Customs Territory. The goods are not subject to duties if reshipped to foreign points |
Breakbulk | 1) To unload, sort, and reload some/all contents of a vehicle in transit 2) To reduce a large shipment of a single commodity to many small shipments, which then are dispersed to various buyers |
Broker | 1) Agent who arranges interstate movement of goods by other carriers 2) One who arranges the buying/selling of goods for commission 3) Person who leases owned equipment to a carrier |
Brokerage License | A freight broker is required to obtain a license in order to make freight shipping arrangements on behalf of a person or company. The broker determines the needs of the client, has experience in the industry and negotiates shipping rates with a carrier who can meet a client’s requirements. |
Bulk Carrier | Vessel that carries bulk commodities such as petroleum, grain, or ore, which are not packaged, bundled, bottled, or otherwise packed |
Bulk Freight | Commodities not packed, but loaded directly into a vessel. For example, grains, petroleum products, iron ore and more, also referred to as bulk cargo. |
C&F (Cost and Freight) | Ocean transportation term meaning price stated includes cost of goods and transportation charges to point of destination. Insurance normally is not included |
Carload (C/L or CL) | 1) Quantity of freight required to fill a railcar 2) Specified quantity necessary to qualify a shipment for a carload rate |
Cargo | A load of materials being transported by a vehicle like a ship, airplane, train, or truck, especially for commercial or professional purposes. |
Cargo Manifest | A document which indicates the consignor, consignee, mark, package number, quality, quantity, weight, cargo declaration number and other particulars of goods being transported. |
Carrier | Individual, partnership or company in the business of transporting goods or passengers for a fee |
Cartage | 1) Charges for pickup/delivery of goods 2) Act of moving goods, usually short distances |
Cartage Agent | A carrier that performs pickup or delivery in areas that a trucking company does not service themselves. Freight is in the possession of the Cartage Agent, not the trucking company. Cartage agents use their own paperwork while transporting shipments. |
Certificate of Manufacture | A statement (often notarized) in which a producer of goods certifies that manufacture has been completed and that the goods are now at the disposal of the buyer |
Certificate of Origin | A document, required by certain foreign countries for tariff purposes, certifying the country of origin of specified goods |
Chargeable Weight | The Actual Gross Weight or the Volumetric Weight of a shipment – whichever is the greater. Typically, large items with a light overall weight take up more space than a small, heavy item. That’s why freight carriers charge according to Chargeable Weight. |
Charter Service | A group of people who have contracted the use of a vehicle for a certain amount of time, with a detailed itinerary, at a fixed rate. |
Chassis for Containers | Consists of a steel frame, a lighting system, brakes, and tires. It is designed to enable trucks to move shipping containers. |
CIF (Cost, Insurance, Freight) | A pricing term indicating that the cost of the goods, insurance, and freight are included in the quoted price |
Claim | 1) Demand on transportation company for payment due to loss/damage of freight during transit 2) Demand on transportation company for refund on overcharge 3) Demand by individual/company to recover for loss under insurance policy |
Class Rate | Rate for commodities grouped according to similar shipping characteristics. Applies to numbered/lettered groups/classes of articles contained in the territorial rating column in classification schedules |
Clean Bill of Lading | A receipt for goods issued by a carrier that indicates that the goods were received in “apparent good order and condition,” without damages or other irregularities |
COD (Collect on Delivery) | Buyer pays carrier the price of goods before they are delivered; seller assumes risk of purchaser refusing to accept goods |
Collect Shipment | Shipment where collection of freight charges/advances is made by delivering carrier from the consignee/receiver |
Commercial Invoice | An itemized list of goods shipped, usually included among an exporter’s collection papers |
Common Carrier | Any carrier engaged in the interstate transportation of person/property on a regular schedule at published rates, and whose services are available to the general public on a for-hire basis |
Concealed Damage | When goods in an apparently undamaged container are damaged. Claims are hard to settle because neither shipper nor carrier wants responsibility |
Confirmed Letter of Credit | A letter of credit, issued by a foreign bank, the validity of which has been confirmed by a domestic bank. An exporter whose payment terms are a confirmed letter of credit is assured of payment by the domestic bank even if the foreign buyer or the foreign bank defaults |
Consign | Send goods to purchaser or agent to sell |
Consignee | Person who receives goods shipped from owner |
Consignor | Person or company that ships articles to customers |
Consolidation | Combining less-than-carload or less-than-truckload shipments to make carload/truckload movements |
Containerization | 1) Using box-like device to store, protect and handle a number of packages as a unit of transit 2) Shipping system based on large cargo-carrying containers that can be interchanged between trucks, trains, and ships without rehandling contents |
Container Yard (CY) | A physical facility from which ocean carriers accept and deliver ocean containers, as well as issue and receive back empty containers. Ocean sailings typically have a CY cut-off date by which the container must be delivered in order to be loaded onto a scheduled sailing. |
Contract Carrier | Carrier engaged in interstate transportation of persons/property by motor vehicle on a for-hire basis, but under continuing contract with one or more customers to meet specific needs of each customer |
Cross-Town | Situated or traveling in a direction extending across a town or city. |
Cubic Capacity | Cubic capacity is one of the most important commercial measurement used in shipping. It can be expressed in cubic meters, or cubic feet when the intrinsic weight of cargo is so low that the ship becomes full without being loaded to the cargo line. In the context of shipping, the term cubic capacity implies the product of length, width, and depth in inches of a package divided by 1728 to be expressed as cubic-feet. |
Customs | The government service that is responsible for the assessment of import and export duties and taxes and administration of other laws and regulations that apply to the importation, transit and exportation of goods
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Customs Broker | Specialist in customs procedures who acts for importers for a fee. Licensed by Treasury Department |
Customs Clearance | A necessary procedure before goods can be imported or exported internationally. If a shipment is cleared, then the shipper will provide documentation confirming customs duties that are paid and the shipment can be processed. |
Customs Declaration | A document that traditionally accompanies exported goods bearing such information as the nature of the goods, their value, the recipient and their ultimate destination. Required for statistical purposes, it accompanies all controlled goods being exported under the appropriate permit |
Customs Invoice | A formal document used to clear goods through customs in the importing country by providing pertinent shipment information including but not limited to country of origin, description and value |
Customs Tariff | Schedule of charges assessed by the government on imports/exports |
Damage Claim | Demand upon carrier for reimbursement for physical injury to shipment, or because shipment was not delivered within reasonable time |
Dangerous Goods | A dangerous good (also known as hazardous material or hazmat) is any substance or material that is capable of posing an unreasonable risk to health, safety, and property when transported in commerce. |
Declared Value | 1) Assumed value of shipment unless shipper declares higher value 2) Stating lower value on a shipment to get a lower rate |
Deferred Air Freight | Property received for air transportation at a level of service lower than standard service (e.g., space available) and transported at a lower charge than standard air freight. |
Delivered/Duty Paid | While the term “Ex Works” signifies the seller’s minimum obligation, the term “Delivered/Duty Paid,” when followed by words naming the buyer’s premises, denotes the other extreme – the seller’s maximum obligation. The term may be used irrespective of the mode of transport. If the parties wish that the seller should clear the goods for import but that some of the cost payable upon the import of the goods should be excluded – such as value-added tax (VAT) and/or other similar taxes. This should be made clear by adding words to this effect (e.g., “exclusive of VAT and/or taxes”) |
Delivery Instructions | Also called Delivery Orders, these documents provide specific information to a carrier regarding delivery to a specific port, pier, terminal, airport, or steamship line. They show the shipping carrier, delivery deadlines, name and address of consignee, and the contract name and telephone number of the shipper in case of delivery problems |
Delivery Receipt | Document a consignee or its agent dates and signs at delivery, stating the condition of the goods at delivery. The driver takes the signed delivery receipt to the terminal for retention. The customer retains the remaining copy |
Demurrage | A charge levied when a full container is not moved out of the port/terminal for unpacking within the allowed free days offered by the shipping line. The charge is levied by a shipping line to an importer. |
Dimensional Weight | Dimensional weight is a calculation of the shipment’s weight based on its volumetric standard instead of its actual weight. Dimensional weight is calculated by multiplying the length by width by height of each package in inches or centimeters and dividing by a dimensional weight divisor. The dimensional weight divisor varies by service offering and unit of measure (inches or centimeters) |
Dock Receipt | A receipt issued by an ocean carrier to acknowledge receipt of a shipment at the carrier’s dock or warehouse facilities |
Drawback | Articles manufactured or produced in the United States with the use of imported components or raw materials and later exported are entitled to a refund of up to 99 percent of the duty charged on the imported components. The refund of duty is known as a drawback |
Drayage | Transporting freight by truck, primarily in local cartage |
Durable Goods | A durable good or a hard good or consumer durable, is a good that does not quickly wear out, or more specifically, one that yields utility over time rather than being completely consumed in one use. |
Duty | A tax imposed on imports by the customs authority of a country. Duties are generally based on the value of the goods (ad valorem duties), some other factor such as weight or quantity (specific duties), or a combination of value and other factors (compound duties) |
Electronic Data Interchange (EDI) | The electronic transmission of routine business documents, such as purchase orders, invoices and bills of lading, between computers in a standard format. The data formats, or transaction sets, are usually sent between mainframe computers |
Embargo | An official ban on trade or other commercial activity with a particular country. |
Entry | An import declaration made for the purpose of obtaining customs clearance by a shipper or importer or a customs broker authorized to represent the importer. Depending on the country and the product, additional supporting documentation, such as origin certificates, consular documentation and product related health and safety certification may also be required. |
Estimated Time of Arrival (ETA) | The time interval at which a certain vehicle will arrive at its destination. It is a transportation term that defines the time remaining for certain aircraft, automobile, ship or emergency service to reach the place it is destined to. |
Ex | Prefix meaning “out of” or “from”, used with noun of location. Means all transportation charges and risks of loss/damage are chargeable to buyer when goods are delivered at “ex” location |
Exceptions | An exception is any delivery in which the receiver or driver notes a problem on the delivery receipt before signing it. Typically, exceptions concern shortage and/or damage |
Exclusive Use | A shipper pays a premium rate for the sole use of a trailer. The trailer will be sealed at loading, and the seal number is recorded on the manifest. The seal number is verified before the trailer is unloaded at destination. When a shipper requests an exclusive-use trailer, no other freight may be added to the unit even if space permits |
Export | Export of goods means to ship goods to a foreign country (including carrying such goods overseas as a part of baggage) when such goods will be apparently shipped to a foreign country. |
Export Declaration | A formal statement declaring full details about goods being exported made to the collector of Customs at a port of exit |
Export Letter of Credit | When importer has arranged with bank for letter-of-credit financing of purchases, he applies for issuance of individual letters of credit to cover purchase contracts as made |
Export License | A government document that permits the licensee to export designated goods to certain destinations |
FAS (Free Alongside Ship) | A pricing term indicating that the quoted price includes the cost of delivering the goods alongside a designated vessel |
Federal Aviation Administration (FAA) | The largest modern transportation agency and a governmental body of the United States with powers to regulate all aspects of civil aviation as well as over its surrounding international waters. |
Federal Communications Commission (FCC) | Independent federal agency charged with regulating all interstate and foreign communications by radio, television, wire, satellite, and cable. FCC standards and regulations apply only to the technical aspects of communication systems. |
Federal Register | Government publication that prints rules/regulations of federal agencies daily |
FIFO (First In, First Out) | Warehouse term meaning first items stored are the first used |
FOB (Free on Board) | At named port of export. A pricing term indicating that the quoted price covers all expenses up to and including delivery of goods by or for the buyer |
FOB Destination | Freight cost paid to destination point, title transfers at destination |
FOB Factory | Title to goods and transportation responsibility transfers from seller to factory |
FOB Origin | Title and risk pass to the buyer at the moment the seller delivers the goods to the carrier. The parties may agree to have title and risk pass at a different time or to allocate shipping charges by a written agreement |
FOB Vessel | Title/transportation costs transfer after goods are delivered on vessel. All export taxes/costs involved in overseas shipments are assessed to buyer |
Food and Drug Administration (FDA) | U.S. agency responsible for protecting the public health by assuring the safety, efficacy, and security of human and veterinary drugs, biological products, the U.S.’s food supply, medical devices, cosmetics, and products that emit radiation |
Force Majeure | The title of a standard clause in contracts exempting the parties for non-fulfillment of their obligations as a result of conditions beyond their control, such as earthquakes, floods, or war |
Foreign Trade Zones | An isolated policed area typically adjacent to a port of entry (as a seaport or airport) where foreign goods may be unloaded for immediate transshipment or stored, repacked, sorted, mixed, or otherwise manipulated without being subject to import duties. |
Forwarding Agent | Firm specializing in shipping goods abroad. Payments made for insurance and other expenses are charged to foreign buyer |
Freight All Kinds (FAK) | A consolidated cargo that contains different kinds of goods but it is charged at one unique rate. In other words, a group of goods are pooled together for shipping purposes with no regard of their classification. |
Freight Bill | Shipping document confirming shipment delivery and indicate payment terms (prepaid or collect). The document describes the shipment, its weight, the amount of charges and taxes and whether the bill is collect or prepaid. If the bill is prepaid, the shipper pays the shipping charges. If the bill is collect, the consignee pays the shipping charges |
Freight Classification | A standardized shipping industry pricing classification establishing uniform parameters for commerce between multiple brokers, warehouses and carriers. It is determined based upon a range of factors, including: ease of handling, value, weight, length, height, density and liability. |
Freight Forwarder | An independent business that handles shipments for compensation (a freight forwarder is among the best sources of information and assistance on regulations, documentation and shipping methods) |
Full Container Load (FCL) | A shipment type where cargo occupies the full size of a container. Sometimes the container may not be fully filled, but the rate is charged on the basis of a full container. |
Full Truck Load (FTL) | Commonly referred to as FTL, is a type of shipping mode whereby a truck carries one dedicated shipment. In other words, the journey is reserved for one shipment or one shipper’s goods only. FTL trucking has several advantages over the alternative trucking shipment mode, LTL, or less than a full truckload shipment. |
Gross Weight | The full weight of a shipment, including goods and packaging |
Gross Vehicle Weight Rating (GVWR) | Or gross vehicle mass (GVM), is the maximum operating weight/mass of a vehicle as specified by a manufacturer including the vehicle’s chassis, body, engine, engine fluids, fuel, accessories, driver, passengers and cargo. |
Harmonized System Code (HS Code) | A universally accepted classification system for trade goods, used to classify products and their corresponding tariff |
Harmonized Tariff Schedule of the United States (HTS or HTSUS) | Also referred to as the Harmonized Tariff Schedule of the United States Annotated (HTSA), is the primary resource for determining tariff (customs duties) classifications for goods imported into the United States. |
Hazardous Material | Hazardous materials are defined by the U.S. Department of Transportation in accordance with the Federal Hazardous Material Law. A substance or material may be designated as hazardous if the transportation of the material in a particular amount and form poses an unreasonable risk to health and safety or property. Hazardous material may include: an explosive, radioactive material, etiologic agent, flammable or combustible liquid or solid, poison, oxidizing or corrosive material, and compressed gas. For more general information, go to the U.S. DOT website at http://www.phmsa.dot.gov/hazmat |
Igloo | A kind of airfreight cargo container. |
Imports | Foreign goods and services bought by citizens, businesses, and the government of another country. |
Import License | A document required and issued by some national governments authorizing the importation of goods into their individual countries |
Importer of Record (IOR) | The owner or purchaser of the goods; or, when designated by the owner, purchaser, or consignee, a licensed customs broker |
Inbound Freight | The term used to define a shipment that comes from a vendor to a business or facility, like a warehouse. |
Indirect Air Carrier (IAC) | Any person or entity within the United States, not in possession of a Federal Aviation Administration air carrier operating certificate, which undertakes to engage indirectly in air transportation of property for all or any part of such transportation the services of an air carrier. |
In Bond | Storage of goods in custody of government/bonded warehouse or carrier from whom goods can be taken only upon payment of taxes/duties to appropriate government agency |
Inland Bill of Lading | A port on an inland waterway, such as a river, lake, or canal, which may or may not be connected to the sea. The term “inland port” is also used to refer to a dry port, which is an inland extension of a seaport, usually connected by rail to the docks. |
Inland Port | A bill of lading used in transporting goods overland to the exporter’s international carrier. Although a through bill of lading can sometimes be used, it is usually necessary to prepare both an inland bill of lading and an ocean bill of lading for export shipments |
Interline Freight | Freight moving from origin to destination over two or more transportation lines |
Interline Shipping | The utilization of multiple freight carriers for a single shipment, which may require intermediaries to coordinate various aspects of the process. |
Intermodal Transportation | Using more than one mode to deliver shipments |
International Air Transport Association | The trade association for the world’s airlines, representing some 300+ airlines and over 80% of total air traffic. |
Interstate Commerce | Exchanging goods between buyers and sellers in two or more states |
Intrastate Commerce | When all business between buyers/sellers is carried on within one state |
Irrevocable Letter of Credit | A letter of credit in which the specified payment is guaranteed by the bank if all terms and conditions are met by the drawee |
Landbridge | Intermodal system of getting international cargo across intervening continent from one seacoast to another by special through trains |
Landed Cost | Total expense of receiving goods at place of retail sale, including retail purchase price and transportation charges |
Last In, First Out (LIFO) | Accounting method of valuing inventory that assumes latest goods purchased are first goods used during accounting period |
LCL (Less-than-Carload, Less-than-Container Load) | Loads weighing less than amount necessary to apply carload rate charged by railroads, or container load charged by ocean carrier |
Lessee | Party or company with legal possession/control of vehicle (with/without driver), or other equipment owned by another under terms of lease agreement |
Lessor | Party or company granting legal use of vehicle (with/without driver), or other equipment to another party under terms of lease agreement |
Less Than Container Load (LCL) | A term used in sea freight to describe loads that are “less than a container load,” or a shipment that does not fill an entire container. |
Letter of Credit (L/C) | Method of paying for goods where buyer establishes credit with local bank, clearly describing goods to be purchased. Upon receipt of documentation, bank either is paid by buyer or takes title to goods and transfers funds to seller |
Licensing | A business arrangement in which the manufacturer of a product (or a firm with proprietary rights over certain technology, trademarks, etc.) grants permission to some other group or individual to manufacture that product (or make use of that proprietary material) in return for specified royalties or other payment |
Linehaul | Movement of freight between cities, usually more than 1,000 miles, not including pickup and delivery service |
Long Ton | Equivalent to 2,240 pounds or 20 long hundredweights. Also called gross ton |
Longshoreman | Person employed on wharves of port to load/unload vessels |
Loss and Damage (L&D) Claim | Usually applied when loss/damage is discovered when package is delivered |
Lower Deck | The deck of a ship situated immediately above the hold |
LTL (Less-than-Truckload) | Goods weighing less than 10,000 pounds from several shippers loaded onto one trailer |
Marine Insurance | Insurance that compensates the owners of goods transported overseas in the event of loss that cannot be legally recovered from the carrier. Also covers air shipments |
Marking (or Marks) | Letters, numbers, and other symbols placed on cargo packages to facilitate identification |
Master Air Waybill (MAWB) | Generally, shipping process starts from a shipper who delivers goods to the forwarder. A document issued by an air carrier/air forwarder to a freight forwarder upon receiving a shipment to be delivered to a named location as agreed in the shipping terms. |
Minimum Charge | The lowest charge for which a shipment will be handled after discount and/or adjustment |
Motor Carrier | A motor carrier transports passengers or property for compensation. |
Motor Property Broker | A person who, for compensation, arranges, or offers to arrange, the transportation of property by an authorized motor carrier. It can be performed on behalf of a motor carrier, consignor, or consignee. |
NAFTA Certificate of Origin | A document provided for goods that qualify for reduced or duty-free entry as a product of one of the three participating member nations: Mexico, United States and Canada |
National Motor Freight Classification (NMFC) | Industry standard tariff published by motor carriers containing rules, descriptions and rating on all products moving in commerce; used to classify goods for the purpose of rating the freight bill. You can obtain more information about shipment classes and the NMFC at www.nmfta.org |
Nested | A term used in less than truckload (LTL freight) shipping in which materials are stacked so that one item goes inside another. Nested freight reduces the amount of space taken up by the combined freight and makes LTL shipping more efficient as a result. |
Net Weight | the weight of an item/product without the addition of the packaging or container weight. Net weight is also the weight of the total number of goods loaded into a container excluding the weight of the container |
Non-Vessel Operating Common Carrier (NVOCC) | Cargo consolidator of small shipments in ocean trade, generally soliciting business and arranging for/performing containerization functions at the port |
North American Free Trade Agreement (NAFTA) | A trade agreement between Canada, the U.S. and Mexico that encourages free trade between these countries |
Not Otherwise Indicated (NOI) | Listed in the NMFC. The NMFC numbers dictate the freight rating that is assigned to freight. A general class rate or NOI is assigned to any freight that has no rate. |
Ocean Bill of Lading | A bill of lading (B/L) indicating that the exporter consigns a shipment to an international carrier for transportation to a specified foreign market. Unlike an inland B/L, the ocean B/L also serves as a collection document. If it is a “straight” B/L, the foreign buyer can obtain the shipment from the carrier by simply showing proof of identity. If a “negotiable” B/L is used, the buyer must first pay for the goods, post a bond, or meet other conditions agreeable to the seller |
Ocean Container | Ocean shipping containers are large standardized shipping containers designed and built for freight transport via ocean. They vary in size, style, and function. |
On Board Bill of Lading | A bill of lading in which a carrier certifies that goods have been placed on board a certain vessel |
Operating Authority | Routes, points, and types of traffic that may be served by carrier. Authority is granted by state or federal regulatory agencies |
Operating Ratio | Comparison of carrier’s operating expenses with gross receipts, income divided by expenses |
OS&D (Over, Short and Damaged) | Report is issued at warehouse when goods are damaged. Used to file claim with carrier |
Overage | Freight in excess over quantity believed to have been shipped or more than quantity shown on shipping document |
Overcharge Claims | The payor of the shipping charges files an overcharge claim to dispute a discrepancy in charges that can stem from overpayment, weight or description corrections, etc. |
Owner’s Risk | When owner of goods remains responsible during shipping, relieving carrier of part of risk |
Owner-Operators | Drivers who own or operate their own trucks. May lease rig/driver to another carrier |
Packing List | A list showing the number and kinds of items being shipped, as well as other information needed for transportation purposes |
Pallet | A flat, (usually wooden) structure that is used for handling transport, storing goods or transporting freight. |
Palletization | System for shipping goods on lightweight, double-decked wooden platform called pallets. Permits shipment of multiple units as one large unit |
Parcel Audit | A function performed for shippers of all sizes. The audit process is aimed at finding incorrectly billed charges on parcel carrier invoices. It provides a means for shippers to recover overcharges from parcel carriers. |
Per Diem | Latin term “by the day.” Daily charge for use of equipment or daily fees |
Perishable Freight | Commodities subject to rapid deterioration or decay, which require special protective services such as refrigeration or heating |
Permit | Authority granted to contract carriers and forwarders to operate in interstate commerce |
Point of Origin | Station at which shipment is received from shipper by transportation line |
Port | A port is a maritime facility which may comprise one or more wharves where ships may dock to load and discharge passengers and cargo. |
Pro Forma Invoice | An invoice provided by a supplier prior to the shipment of merchandise, informing the buyer of the kinds and quantities of goods to be sent, their value, and important specifications (weight, size, etc.) |
Pro Number | Any progressive or serial number applied for identification to freight bills, bills of lading, etc. |
Proof of Delivery | Copy of waybill signed by consignee at time of delivery as receipt |
Public Warehouse | Storage place renting space to anyone desiring it |
Purchase Order | Form buyer uses when placing order for merchandise |
Quota | The quantity of goods of a specific kind that a country permits to be imported without restriction or imposition of additional duties |
Rate | Established shipping charge for movement of goods |
Reefer | Slang term for refrigerated trailer that hauls perishables |
Reverse Logistics | Return of a shipment or order from recipient back to shipper. Reasons can include order inaccuracy, customer dissatisfaction, diagnostics and repair, damage, or return of goods into inventory. Also called Returns Management |
Revocable Letter of Credit | A letter of credit that can be canceled or altered by the drawee (buyer) after it has been issued by the drawee’s bank |
Roll-on/Roll-Off (Ro/Ro) | Are cargo ships designed to carry wheeled cargo, such as cars, trucks, semi-trailer trucks, trailers, and railroad cars, that are driven on and off the ship on their own wheels or using a platform vehicle, such as a self-propelled modular transporter. |
Routing | 1) Process of determining how shipment will move between origin and destination. Routing information includes designation of carrier(s) involved, actual route of carrier, and estimated time enroute 2) Right of shipper to determine carriers, routes and points for transfer on TL and CL shipments |
Salvage Loss | In marine insurance, loss sustained by necessary sale of goods at port prior to expected destination because of “perils of the sea.” Treated as total loss with amount realized from sale of goods credited on amount payable under policy |
Seal | Device applied to freight car/motor vehicle door fastening. Shows that door fastening where it’s applied has not been tampered with between time of application and time of breaking seal |
Second Day Air Freight | Guaranteed second day delivery for packages that don’t require overnight shipping. |
Semi | Slang term for semitrailer. Also used loosely in referring to tractor-trailer combination |
Ship’s Manifest | An instrument in writing, signed by the captain of a ship that lists the individual shipments constituting the ship’s cargo |
Shipper | (also known as a consignor) is a person or a company responsible for organizing and transporting goods from one point to another |
Shipper’s Letter of Instruction (SLI) | An optional document that conveys specific instructions from exporters to their agents (usually freight forwarders), for ocean and air shipments. Think of it as a letter that tells the agent/forwarder how and where they need to send products. |
Shipment | 1) Lot of freight tendered to carrier by consignee at one place at one time for delivery to one consignee at one place on one bill of lading 2) Goods/merchandise in one or more containers, pieces, or parcels for transportation from one shipper to single destination |
Shipper’s Export Declaration (SED) | A form required for all shipments by the U.S. Treasury Department and prepared by a shipper, indicating the value, weight, destination, and other basic information about an export shipment |
Shipper’s Letter of Instructions for Issuing Air Waybill | A document required by the carrier or freight forwarders as a prerequisite to obtain (besides the data needed) authority to issue and sign the waybill in the shipper’s name |
SL&C | Shipper’s load and count |
Steamship Conference | A group of steamship operators that operate under mutually agreed-upon freight rates |
Straight Bill of Lading | A nonnegotiable bill of lading in which the goods are consigned directly to a named consignee |
Stripping | Emptying truck of cargo, and arranging shipments by destination |
Stuffing | Slang term for loading cargo container |
Tare | Amount of gross weight on freight shipment that can be deducted for packaging weight |
Tare Weight | 1) Weight of container and material used for packing 2) In transportation terms, weight of car/truck, exclusive of contents |
Tariff | A Tariff is a document setting forth applicable rules, rates and charges to move goods. A tariff sets forth a contract for the shipper, the consignee and the carrier. Since January 1, 1996, motor carriers are not required to publish tariffs. However, in accordance with federal law, tariffs must be provided to a shipper on request |
Terminal Handling Charge (THC) | Are made by operators of container terminal facilities at both ends of a shipments journey; charges made for the movement of containers at the destination terminal, i.e. unloading of the container from the arriving vessel and its transfer to a consignee’s vehicle. |
Terms of sale | The point at which sellers have fulfilled their obligations so the goods are said to have been delivered to the buyer. They are shorthand expressions that set out the rights and obligations of each party when transporting the goods |
Third-Party | A party other than the shipper or consignee that is ultimately responsible for paying the shipment charges |
Through Bill of Lading | A single bill of lading converting both the domestic and international carriage of an export shipment. An air waybill, for instance, is essentially a through bill of lading used for air shipments. Ocean shipments, on the other hand, usually require two separate documents – an inland bill of lading for domestic carriage and an ocean bill of lading for international carriage. Through bills of lading are insufficient for ocean shipments |
Through Rate | A single transportation rate on an interline haul made up of two or more separately established rates. |
Time-Critical | Urgent; Requiring immediate or vigilant action or attention. time-dependent. time-sensitive. |
Time-Definite | Refers to a freight or delivery service that specifies or guarantees a day or time. |
Title | Document that confers on holders right of ownership/possession/transfer of merchandise specified, e.g., bills of lading and warehouse receipts |
Transit | If the tracking status of a shipment is “In Transit”, it means it is on its way to its final destination. It does not necessarily mean that it is in a moving vehicle such as an aircraft or truck. |
Transit Time | Transit time is the interval needed for a shipment to be delivered once it has been picked up from the point of departure. The transit time varies according to route and the mode of transportation used. The exact time is mostly measured in hours and days |
Transportation Security Administration (TSA) | An agency of the U.S. Department of Homeland Security that has authority over the security of the traveling public in the United States. |
Truckload (TL) | Large-volume shipment from a single customer that weighs more than 10,000 pounds or takes up all the trailer space so no other shipment can be loaded |
Ultimate Consignee | An ultimate consignee is the party who will be the final recipient of a shipment. |
Unit Load Device (ULD) | A unit load device (ULD) is a pallet or container used to load luggage, freight, and mail on wide-body aircraft and specific narrow-body aircraft. It allows a large quantity of cargo to be bundled into a single unit. |
Upper Deck | The topmost full-length deck of a ship, a full-length deck above the main deck. |
U.S. Customs Bonded Warehouse | Until import duty (if required) is paid, federal government retains control of goods. Imports awaiting collection of duty must be stored at importer’s expense in custody of warehouse willing/able to furnish bond that commodities will not be released until necessary duties are paid |
UCC | Uniform Commercial Code |
Value Added Tax (VAT) | A consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale. The amount of VAT that the user pays is on the cost of the product, less any of the costs of materials used in the product that have already been taxed The value added tax is imposed throughout the European Community and European Free Trade Association (EFTA) countries and many other trading nations, but not the U.S. |
Volume Rate | A less than truckload (LTL) shipping term for rates that are made subject to a minimum weight typically of 7,000 pounds or more, or cubic volume exceeding 750 cubic feet. |
Waiting Cost | The agreed transport price including a small amount of spare time for loading and unloading of goods. For container transport, it typically amounts to 2 hours for loading and unloading. |
Warehouse | Place for receiving/storing goods and merchandise for-hire. Warehouseman is bound to use ordinary diligence in preserving goods |
Warehouse Receipt | A receipt issued by a warehouse listing goods received for storage |
Warehousing | The act of storing goods that will be sold or distributed later. Businesses typically own or rent space in a building that is specifically designed for storage. |
Weigh Station | Permanent station equipped with scales at which motor vehicles transporting property on public highways are required to stop for checking of gross vehicle and/or axle weights. Many states also use portable scales to comply with their weight limits |
Weight | In shipping, weight is qualified further as gross (weight of goods and container), net (weight of goods themselves without any container), and legal (similar to net, determined in such manner as law of particular country/jurisdiction may direct) |
Weight Certificate | Usually issued by an official weigher on the dock, this certificate records the weight (as well as measurements) being entered on the back of the second and third copies of the dock receipt by clerk on the dock |