ABANDONMENT
-
Proceeding where a carrier seeks authorization to stop service
over all or part of its route/line, or to give up ownership/control
of cargo or vessel. Must be approved by the ICC in the case
of motor or rail proceedings.
-
Shipper or consignee relinquishes damaged freight carrier
or refuses to accept delivery.
-
The act or relinquishing title to damaged or lost property
to claim a total loss.
ABSOLUTE LIABILITY
Condition in which a carrier is responsible for all liability and
is not protected by normal exemptions found in a bill of lading
or common law liability.
ACCEPTANCE
-
Acknowledged receipt by consignee of a shipment, terminating
the common carrier contract.
-
A promise to pay, usually evidenced by inscribing across
the face of the bill "accepted," followed by the date, place
payable, and acceptor’s signature.
ACCESSORIAL CHARGES
Charges for supplementary services and privileges (ACCESSORIAL
SERVICES) 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 are: pickup/delivery,
in-transit privileges, demurrage, switching, loading/unloading.
ACCESSORIAL SERVICE
A service rendered by a carrier in addition to regular transportation
service. AD VALOREM
A Latin phrase meaning "according to value." Freight rates set
at a certain fixed percentage of the value of articles are known
as ad valorem rates.
ADVANCED CHARGE
Freight or charge on a shipment that is advanced by one transportation
company to another, or to the shipper, to be collected from the
consignee.
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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.
ALL-COMMODITY RATE
Usually a carload/truckload rate that applies to multiple shipments
that move at one time in one vehicle from the consignor to one consignee.
An all-commodity rate is established based on actual transportation
cost rather than "value of service."
ALLOWANCE
Deduction from the weight or value of goods. Allowed if a carrier
fails to provide necessary equipment and that equipment is furnished
by the shipper.
ALONGSIDE
Point of delivery beside a vessel; statement designating where
the title to goods passes from one party to another.
ALTERNATE ROUTING
Routing that is less desirable than the normal, but results in
identical terms.
ARBITRARY
-
Charge in addition to regular freight charge to compensate
for unusual local conditions.
-
Fixed amount accepted by a carrier when dividing joint rates.
ARRIVAL NOTICE
A notice, furnished to consignee, of the arrival of freight.
ASTRAY FREIGHT
Freight that has been separated from its freight bill.
AUTHORITY
Operating rights granted a motor carrier by the ICC.
AUTHORIZED CARRIER
A person or company
authorized by the ICC to transport goods as a common or contract carrier.
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BACK HAUL
-
Return transportation movement, usually at less revenue than
the original move.
-
Movement in the direction of lighter traffic flow when traffic
generally is heavier in the opposite direction.
-
To move a shipment back over part of a route already traveled.
BARRELL WHEELER OR BARREL TRUCK
A dolly-like hand truck designed specifically to move drums or
barrels.
BASING POINT
Geographic point to which transportation rates are set so that
rates to adjacent points can be constructed by adding to/deducting
from the basing point rate.
BILL OF LADING (BL or B/L)
The principal transportation document by which a carrier acknowledges
receipt of freight, describes the freight, and sets forth a contract
of carriage. Terms and conditions, responsibilities, and liabilities
vary with manner and place of use. Bills of lading may be negotiable
or non-negotiable.
BILLED WEIGHT
The weight shown on a freight bill.
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BIRDYBACK
Moving highway freight by air.
BLIND SIDE
Right side of truck and trailer.
BLOCKING
Wood or metal supports to keep shipments in place in trailers.
BOB TAIL
Tractor operating without a trailer.
BOGEY
A two-axle assembly at the rear of some trailers or tractors. Also
called a tandem axle.
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BONDED WAREHOUSE
-
A warehouse approved by the Treasury Department and under
bond/guarantee for observance of revenue laws.
-
Used for storing goods until duty is paid or goods are released
in some other proper manner.
BOTTOM FREIGHT
Heavy freight that must be loaded on the trailer floor and not
on top of other merchandise.
BOX
Slang term for a trailer or container for ocean carriers. Slang
term for a truck transmission.
BRACING
See BLOCKING.
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BREAK BULK
-
To unload, sort and reload some/all contents of a vehicle
in transit.
-
To reduce a large shipment of a single commodity to many
small shipments, which are then dispersed to various buyers.
BREAKDOWN TIME
A type of penalty pay which is incurred when equipment breaks down.
BROKER
-
An agent who arranges interstate movement of goods by other
carriers.
-
An arranger of exempt loads for owner-operators and/or carriers.
-
One who arranges the buying/selling of goods for a commission.
-
A person who leases owned equipment to a carrier.
BULK CARRIER
Vessel that carries bulk commodities such as petroleum, grain,
or ore, which are not packaged, bundled, bottled, or otherwise packed.
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BULK FREIGHT
Freight not in packages or containers such as wheat, petroleum,
etc.
BULKHEAD
-
An upright wall in a trailer or railcar that separates and
stabilizes a load.
-
A cargo restraining partition in a vehicle or vessel.
BUYER’S RIGHT TO ROUTE
When a seller does not pay freight charges, the purchaser has a
right to designate the route for shipment. Seller is responsible
for following the buyer’s instructions. Complete routing is permitted
for rail shipments, but only for the first carrier in motor shipments.
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CAB
Driver’s compartment of a truck or tractor.
CAB-OVER
Truck or tractor with a substantial part of the driving cab located
over the engine.
CABLE SEAL
A heavy steel cable used to secure closed trailer doors. It can
only be removed with heavy duty cable cutters.
CAPACITY LOAD
-
A trailer loaded to the legal weight limit.
-
A trailer loaded so that no additional piece of freight,
equal to the size of the largest piece tendered, will fit
into the trailer
CARLOAD (CL or C/L)
-
Quantity of freight required to fill a railcar.
-
Specified quantity necessary to qualify a shipment for a
carload rate.
CARRIER
An individual, partnership or company in the business of transporting
goods or passengers, in most cases for a fee.
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CART
A four wheeled platform used to move several pieces of freight
across the dock at one time.
CARTAGE
-
The charge for pickup/delivery of goods.
-
The act of moving goods (usually short distances).
CASE MARK
Information shown on the outside of a shipping carton, including
destination and contents.
CASH BEFORE DELIVERY (CBD)
Seller assumes no risk and extends no credit because payment is
received before shipment.
CASH ON DELIVERY (COD)
Buyer pays carrier the price of goods before they are delivered;
seller assumes risk of purchaser refusing to accept goods.
CERTIFICATE OF MANUFACTURE
Document used with letters of credit when drafts are paid/negotiated
on presentation of a certificate stating that goods have been completed
and are being held for shipment.
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CHOCK
A wooden, metal, or rubber wedge used to block the wheels of a
trailer at the dock. Also used in trailers to keep floor freight
from shifting.
CLAIM
-
Demand on transportation company for payment due to loss/damage
of freight during transit.
-
Demand on transportation company for refund on overcharge.
-
Demand by an individual/company to recover for loss under
insurance policy.
CLASS RATE
The rate charged for commodities grouped according to similar shipping
characteristics. Class Rate applies to numbered/lettered groups/classes
of articles contained in the territorial rating column in classification
schedules.
CO-LOAD
Two shipments from different terminals combined to ship as one
load.
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COLLECT SHIPMENT
Shipment where collection of freight charges/advances is made by
delivering carrier from the consignee/receiver.
COMBINATION
Truck or tractor coupled to one or more trailers (including semi-trailers).
COMMERCIAL INVOICE
Itemized list issued by seller/exporter in foreign trade showing
quantity, quality, description of goods, price, terms of sale, marks/numbers,
weight, full name/address of purchaser, and date.
COMMODITY
Any article of commerce. Goods, merchandise.
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COMMODITY, EXEMPT
One that may be transported in interstate commerce without operating
authority or published rates.
COMMODITY RATE
-
A special (usually lower) rate for specific types of goods
(usually exempt commodities).
-
A rate lower than class rates, established to cover the movement
of a specific customer’s freight or for a specific group of
customers.
COMMON CARRIER
Any carrier engaged in the interstate transportation of persons/property
on a regular schedule at published rates, and whose services are
available to the general public on a for-hire basis. Regulated by
the ICC.
CONCEALED DAMAGE
When goods in an apparently undamaged container are damaged.
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CONCURRENCE
Document signed by carrier and filed with the ICC. Verifies carrier
participates in rates published in a tariff by a given agent.
CONNECTING CARRIER
A carrier that originates or completes transportation of a shipment,
but does not haul it the entire distance from origin to destination.
CONSIGN
Send goods to a purchaser or an agent to sell.
CONSIGNEE
Any person who receives goods shipped from an owner.
CONSIGNOR
Any person or company that ships articles to customers.
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CONSOLIDATION
Combining less-than-carload or less-than-truckload shipments to
make carload/truckload movements.
CONTAINERIZATION
-
Using box-like device to store, protect, and handle a number
of packages as a unit of transit.
-
Shipping system based on large cargo-carrying containers
that can be interchanged between trucks, trains, and ships
without re-handling contents.
CONTRACT CARRIER
Any carrier engaged in interstate transportation of persons/property
by motor vehicle on a for-hire basis, but under continuing contract
with one or a limited number of customers to meet specific needs
of each customer. Contract Carriers must receive an authorization
permit from the ICC.
CONTRACT RATES
Rates which are part of a total contract negotiated between shipper
and a carrier.
CONVENTIONAL
Tractor with the engine in front of the cab.
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COST, INSURANCE, AND FREIGHT (CIF)
The basis for quotation by seller that indicates seller will pay
insurance and freight charges to destination only.
CROSS DOCK
Transfer of freight from one trailer to another at a terminal.
CUBE RATE
A rate based on trailer space instead of weight. Used for light,
bulky loads.
CUSTOMS BROKER
A specialist in customs procedures who acts on behalf of importers
for a fee. Licensed by the Treasury Department.
CUSTOMS TARIFF
A schedule of charges assessed by the government on imports/exports.
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DEAD AXLE
Non-powered rear axle on tandem truck or tractor (also called "tag
axle").
DEAD WEIGHT TONNAGE (DWT)
Estimated number of tons of cargo a vessel can carry when loaded
to maximum depth.
DEADHEAD
-
A trailer moving empty.
-
A shipment moving without charges.
-
A ride-along driver.
DECLARED VALUE
-
Assumed value of shipment unless shipper declares higher
value.
-
Stating lower value on a shipment to get a lower rate.
DEFERRED REBATE
Carrier returns a portion of freight charges to shipper. In exchange,
shipper gives all/most shipments to carrier over specified period,
usually six months. Rebate payment is deferred for similar period.
DEMURRAGE
Penalty for exceeding free time, usually 48 hours, allowed for
loading/unloading under terms of railroad/ocean and motor carrier
traffics.
DENSITY
The weight of an article per cubic foot.
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DETENTION
A charge made for a vehicle held by, or for, consignor or consignee
for loading, unloading or for forwarding directions.
DIFFERENTIAL
Amount added to/deducted from base rate to make rate to/from some
other point or via another route.
DISCRIMINATION
Difference in rates not justified by costs.
DIVERSION
A change made in consignee, destination, or shipment route while
in transit.
DOCK
The floor or platform where trucks load and unload.
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DOCK PLATE
Metal plate used to bridge the space between a trailer and a dock
platform.
DOLLY
-
A single-axle piece of trailing equipment used to hook two
trailers together.
-
A non-motorized, two-wheeled hand truck for moving freight
around the dock.
DEPARTMENT OF TRANSPORTATION (DOT)
The various federal agencies that regulate the operation of motor
vehicles and motor vehicle equipment.
DRAWBACK
Refund of customs duties paid on material imported and later exported.
DRAYAGE
Transporting freight by truck, primarily in local cartage.
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DRIVE AXLE
The axle(s) which are connected to the engine by a drive shaft
and power the vehicle. Also called "power axle."
DRIVER COLLECT
Refers to a shipment for which the driver must collect freight
charges at the time of delivery.
DUB
A 28-foot trailer designed to be pulled two or three at a time
by one tractor. Also referred to as a "pup" or "doubles."
DUNNAGE
Term used for cardboard, empty pallets, plywood, foam rubber, air
bags, or other items used to cushion or protect freight while in
transit.
END-OF-THE-LINE TERMINAL (EOL)
A local terminal which handles the pick-up and delivery of the
customer’s freight (as opposed to a consolidation center). Also
referred to as a "satellite" or "group" terminal.
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EXCEPTION
-
A shortage, overage, or damage to a shipment.
-
A notation of such conditions on a freight bill, bill of
lading or unloading checksheet.
EXEMPT CARRIER
For-hire motor carrier exempt from ICC economic regulation.
EXPEDITING
Moving shipments through regular channels at an accelerated rate.
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.
FIRST IN, FIRST OUT (FIFO)
Warehouse term meaning first items stored are the first used.
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FEDERAL REGISTER
Government publication that prints rules/regulations of federal
agencies daily.
FEEDER
In intermodal moves, a pickup/delivery vehicle or ship.
FISHY BACK
Transporting motor carrier trailers and containers by ship.
FOB DESTINATION
Freight costs paid to the destination point, title transfers at
destination.
FOB FACTORY
Title to goods and transportation responsibility transfers from
seller to factory.
FOB VESSEL
Title/transportation costs transfer after goods are delivered on
vessel. All export taxes/costs involved in overseas shipments are
assessed to the buyer.
FORCE MAJEURE
Condition in contract that relieves either party from obligations
where major unforeseen events prevent compliance with provisions
of agreement.
FOREIGN TRADE ZONES
Goods subject to duty may be brought into such zones duty-free
for transshipment/storage/minor manipulation/sorting. Duty must
be paid when/if goods are brought from a zone into any part of the
U.S.
FORKLIFT
Mechanical vehicle used to move freight on the dock. Also known
as lift-truck, towmotor, or hi-lo.
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FORWARDING AGENT
A firm specializing in shipping goods abroad. Payments made for
insurance and other expenses are charged to the foreign buyer.
FREE-ASTRAY
A shipment that is mis-routed or unloaded at the wrong terminal
and is billed and forwarded to the correct terminal free of charge.
FREE ALONGSIDE (FAS)
Selling term in international trade. Selling party quotes price
including delivery of goods alongside overseas vessel at exporting
port.
FREE ON BOARD (FOB)
Loaded aboard carrier’s vehicle at point where responsibility for
risk/expense passes from seller to buyer.
FREE TIME
The period freight will be held before storage charges are applied.
The period allowed for the owner to accept delivery before storage
charges begin to accrue.
FREIGHT FORWARDER
1) An individual/company that accepts less-than truckload (LTL)
shipments and consolidates them into truckload lots on a for-hire
basis.
2) An agent who helps expedite shipments by preparing the necessary
documents/making other arrangements for moving freight.
GATEWAY
The point at which freight is interchanged/interlined between carriers
or at which a carrier joins two operating authorities provision
of through service.
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.
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INTERCHANGE
Passing freight from one carrier to another between lines.
INTERLINE FREIGHT
Freight moving from origin to destination over two or more transportation
lines.
INTERMODAL TRANSPORTATION
Using more than one mode to deliver shipments. For example, rail
or ocean vessel carriage of tractor-trailer containers.
INTERSTATE COMMERCE
Exchanging goods between buyers and sellers in two or more states.
INTERSTATE COMMERCE COMMISSION (ICC)
The federal body charged with enforcing acts of Congress affecting
common carriers in interstate commerce. Directly responsible to
Congress.
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INTRASTATE COMMERCE
When all business between buyers/sellers is carried on within state.
JOINT RATE
Agreed upon by two or more carriers, published in a single tariff,
and applying between point on line of one and point on line of another.
May include one or more intermediate carriers in route.
JUST-IN-TIME (JIT)
An in-bound manufacturing strategy that smoothes material flow
into assembly and manufacturing plants. JIT minimizes inventory
investment by providing timely, sequential deliveries of product
exactly where and when it is needed, from a multitude of suppliers.
Traditionally an automotive strategy, it is being introduced into
many other industries.
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.
LESS-THAN-CARLOAD (LTC or LCL)
A load weighing less than the amount necessary to apply the carload
rate charged by railroads.
LESS-THAN-TRUCKLOAD (LTL)
Less than the quantity of freight required to apply the truckload
rate charged by motor carriers.
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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.
LETTER OF CREDIT (L/C)
A method of paying for goods, where the buyer establishes credit
with a local bank, clearly describing the goods to be purchased.
Upon receipt of documentation, the bank is either paid by the buyer
or takes title to goods and transfers funds to the seller.
LIFT TRUCK
Mechanical vehicle used to move freight on the dock. Also known
as a fork-lift, towmotor, or hi-lo.
LINEHAUL
Movement of freight between cities that are usually more than 1,000
miles apart, not including pickup and delivery service.
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LOAD FACTOR
-
The weight in pounds loaded onto a trailer.
-
A term used loosely to describe the "compactness" or over
"good usage" of trailer space.
LOADING ALLOWANCE
A tariff provision which provides an allowance, usually a fixed
sum per hundredweight, to a shipper for loading a carrier’s trailer.
LOGISTICS
Logistics management is that part of the Supply Chain Management
process that plans, implements, and controls the efficient, effective
forward and reverse flow and storage of goods, services, and related
information between the point of origin and the point of consumption
in order to meet customers' requirements.
These are the boundaries and relationships of Logistics Management
adopted by the Council of Logistics Management: "Logistics Management
activities typically include inbound and outbound transportation
management, fleet management, warehousing, materials handling, order
fulfillment, logistics network design, inventory management of third
party logistics services providers. To varying degrees, the logistics
function also includes sourcing and procurement, production planning
and scheduling, packaging and assembly, and customer service. It
is involved in all levels of planning and execution -- strategic,
operational and tactical. Logistics Management is an integrating
function, which coordinates and optimizes all logistics activities,
as well as integrates logistics activities with other functions
including marketing, sales manufacturing, finance and information
technology."
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LONG TON
Equivalent to 2,240 pounds or 20 long hundredweights. Also called
gross ton.
MANIFEST
A control document used to list the contents (individual shipments)
during loading and from which the contents are checked during unloading.
MANUFACTURING RESOURCE PLANNING (MRP II)
System of manufacturing controls using computers. Affects purchasing,
materials management, inventory control, and production management.
MIX
Refers to the combination of light, medium and heavy density freight.
MOTOR CARRIER ACT OF 1935
Act of Congress bringing motor common and contract carriers under
ICC jurisdiction.
MOTOR CARRIER ACT OF 1980
Act of Congress that deregulated for-hire-trucking.
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MULTIMODAL
See INTERMODAL TRANSPORTATION.
NATIONAL MOTOR FREIGHT CLASSIFICATION
(NMFC)
A publication for motor carriers containing rules, commodity descriptions,
and classifications for nearly all shippable commodities.
NET WEIGHT
-
Weight of article without packing and container.
-
Weight of entire contents of vehicle.
NON-VESSEL-OPERATING COMMON CARRIER (NVOCC)
A cargo consolidator of small shipments in ocean trade, generally
soliciting business and arranging for/performing containerization
functions at the port.
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NOTICE OF ARRIVAL
On arrival of freight at destination, notice is sent promptly to
the consignee showing number of packages, description of articles,
route, rate, weight, etc.
OFF-ROUTE POINTS
Points located off regular route highways of line-haul carriers,
generally served only on irregular schedules.
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 (OR or O/R)
Comparison of carrier’s operating expenses with gross receipts;
income divided by expenses.
OVER, SHORT AND DAMAGED (OS&D)
A report issued at the warehouse when goods are damaged. Used to
file a claim with the carrier.
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OVERAGE
Freight in excess over quantity believed to have been shipped,
or more than quantity shown on shipping document.
OWNER-OPERATORS
Drivers who own or operate their own trucks. May lease rig/driver
to another carrier.
OWNER’S RISK
When owner of goods remains responsible during shipping, relieving
carrier of part of risk.
PACKING LIST
List showing merchandise packed and all particulars. Normally prepared
by shipper but not required by carriers. Copy is sent to consignee
to help verify shipment received.
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PALLET
A wooden platform upon which freight is stacked for transportation.
The pallet provides clearance for forklift blades. A pallet has
a wooden deck and bottom boards.
PALLETIZATION
System for shipping goods on lightweight, double-decked wooden
platforms called pallets. Permits shipment of multiple units as
one large unit.
PAYLOAD
-
Carried cargo.
-
The net weight of the cargo.
PER DIEM
Latin term meaning "by the day." Daily charge for use of railcars.
PERISHABLE FREIGHT
Commodities subject to rapid deterioration or decay, which require
special protective services such as refrigeration or heating.
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PERMIT
Authority granted to contract carriers and forwarders by the ICC
to operate in interstate commerce.
PIGGYBACK
A form of intermodal transportation where trailers/containers are
carried on railcars.
POINT OF ORIGIN
The station at which a shipment is received from the shipper by
a transportation line.
POOLING AGREEMENT
The dividing of revenue/business among two or more carriers in
accordance with previous contracts/agreements.
PRO NUMBER
Any progressive or serial number applied for identification to
freight bills, bills of lading, etc.
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PROOF OF DELIVERY
Copy of waybill signed by consignee at time of delivery as receipt.
PROPORTIONAL WEIGHT
Lower than normal rate on segment of through movement to encourage
traffic or capture competitive traffic. May be percentage of standard
rate or flat rate that is lower between given points.
PUBLIC WAREHOUSE
Storage place renting space to anyone desiring it.
PURCHASE ORDER
Form buyer uses when placing order for merchandise.
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QUOTAS
Many governments have established quotas of limiting imports by
class of goods or country of origin. Sometimes importing countries
require issuance of licenses before U.S. companies may ship to them.
RATE
Established shipping charge for movement of goods. In interstate
transportation, price/rate is approved by ICC. Intrastate prices
are approved by public service commission or similar body.
RATE BASIS
Formula of specific factors/elements that control making of rate.
RATE WAR
When carriers cut rates in an effort to secure tonnage. Can occur
in all commodities.
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REBATE
Unlawful practice in which carrier returns part of transportation
charge to shipper. Done to encourage shipper to use same carrier
again.
RECIPROCITY
-
An exchange of rights. In motor transportation, may involve
granting equal rights to vehicles of several states in which
reciprocity agreements are in effect.
-
To give preference in buying to vendors who are customers
of buying company.
RECONSIGNMENT
-
A change (usually requested by the shipper) in the routing,
or destination, of a shipment that is already in transit but
does not require a new freight bill.
-
A fee for the latter. (See also DIVERSION)
REEFER
Slang term for a refrigerated trailer that hauls perishables.
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RESTRICTED ARTICLES
Commodities that can be handled only under certain specific conditions.
ROLL-ON/ROLL-OFF (RO/RO)
A feature in specially constructed vessels permitting road vehicles
to drive on/off a vessel in loading/discharging ports.
ROUTE
-
Course/direction that shipment moves.
-
To designate course/direction shipment shall move.
-
Carrier(s) with junction points over which shipment moves.
ROUTING
-
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 en route.
-
Right of shipper to determine carriers, routes and points
for transfer on TL and CL shipments.
SATELLITE
-
A local servicing terminal. Also called "city," "group,"
or "end-of-the-line" terminals.
-
An accounting designation for a specific service area; not
a regular freight terminal location.
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SEMI
Slang term for semi-trailer. Also used loosely in referring to
tractor-trailer combination.
SEMI-TRAILER
-
Trailer equipped with rear wheels only. The front of the
trailer is supported by landing legs when not hooked to power.
-
Generally used to refer to a full size (45 to 48-foot) trailer;
as opposed to a doubles trailer.
SHIPMENT
-
Lot of freight tendered to carrier by one consignee at one
place at one time for delivery to one consignee at one place
on one bill of lading.
-
Goods/merchandise in one or more containers, pieces, or parcels
for transportation from one shipper to single destination.
SHIPPER’S CERTIFICATE
Form filled out and presented by shipper to outbound carrier at
transit point, together with instructions and inbound carrier’s
freight bill, asking for reshipping privilege and transit rate on
commodity previously brought into transit point.
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SHIPPER’S EXPORT DECLARATION (SED)
Form required by Treasury Department and completed by shipper showing
value, weight, consignee, destination, etc., of export shipments,
as well as Schedule B identification.
SHIPPER’S LOAD AND COUNT (SL&C)
Indicates that the contents of a trailer were loaded and counted
by the shipper, the trailer was sealed by the shipper, and the carrier
did not observe the loading process.
SHORT SHIPMENT
Piece of freight missing from shipment as stipulated by documents
on hand.
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SHRINK WRAP
A plastic wrap used by shippers to secure cartons on a pallet.
SKID
A wooden platform upon which freight is stacked for transportation.
SLEEPER
Tractor with a sleeping compartment in the cab.
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STANDARD INTERNATIONAL TRADE CLASSIFICATION
(SITC)
A numerical code developed by the United Nations and adopted by
U.S. airlines as the basis for identifying commodities moving in
air freight.
STATUTORY NOTICE
Length of time required by law for carriers to give notice of changes
in tariffs, rates, rules and regulations — usually 30 days unless
otherwise permitted by authority from ICC or other regulatory body.
STEVEDORE
Person in charge of loading/unloading ships.
STRAIGHT BILL OF LADING
Non-negotiable document provides that shipment is to be delivered
direct to party whose name is shown as consignee. Carrier does not
require its surrender upon delivery except when needed to identify
consignee.
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STRIPPING
Emptying truck of cargo, and arranging shipments by destination.
STUFFING
Slang term for loading cargo container.
SUPPLY CHAIN SERVICES / SUPPLY CHAIN MANAGEMENT
Supply Chain Management encompasses the planning and management
of all activities involved in sourcing and procurement, conversion,
and all Logistics Management activities. Importantly, it also includes
coordination and collaboration with channel partners, which can
be suppliers, intermediaries, third-party service providers, and
customers. In essence, Supply Chain Management integrates supply
and demand management within and across companies.
These are the boundaries and relationships of Supply Chain Management
adopted by the Council of Logistics Management: "Supply Chain Management
is an integrating function with primary responsibility for linking
major business functions and business processes within and across
companies into a cohesive and high-performing business model. It
includes all of the Logistics Management activities noted above,
as well as manufacturing operations, and it drives coordination
of processes and activities with and across marketing, sales, product
design, finance and information technology."
TANKTAINER
Tank built into standard container frame and used to transport
liquids.
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TARE WEIGHT
-
Weight of container and material used for packing.
-
In transportation terms, it is the weight of
the car/truck, exclusive of contents.
TARIFF
The printed price list issued by a carrier showing
transportation charges.
TENDER
An offer of goods for transportation by a shipper,
or an offer of delivery by a carrier.
THROUGH BILL OF LADING
This document covers goods moving from point
of origin to final destination, even if transfers are made
to different carriers in transit.
TITLE
Document that confers on holder right of ownership/possession/transfer
of merchandise specified, e.g., bills of lading and warehouse
receipts.
TONNAGE
-
The carrying capacity of a ship/vessel.
-
The tax/duty paid on such capacity.
-
The weight a ship will carry, expressed in tons.
TRAFFIC
-
Department/division responsible for obtaining most economic
commodity classification and method of transportation materials
and products.
-
People and/or property carried by transportation companies.
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TRAILER ON FLATCAR (TOFC)
See PIGGYBACK. Shipments moving TOFC receive special rates from
tariffs provided for that class of traffic.
TRAMP
Vessel that does not operate along definite route on fixed schedule,
but calls at any port where cargo is available.
TRANSSHIP
A term commonly used to denote transfer of goods from one means
of transportation to another. The re-handling of goods en route.
TRIP CHARTER
Hiring vessel to haul cargo for special voyage.
TRIP LEASE
An arrangement in which a regulated carrier "leases" or hires an
owner/operator to make a single run.
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TRIPLE
A combination of vehicles that has a tractor and three trailers.
TRUCKLOAD (TL)
-
Quantity of freight that will fill a truck.
-
Quantity of freight weighing the maximum legal amount for
a particular type of truck.
-
The quantity of freight necessary to qualify for a truckload
rate.
U.S. CUSTOMS BONDED WAREHOUSE
A warehouse that is willing/able to validate that commodities will
not be released until any necessary duties are paid. (Imports awaiting
collection of duty must be stored at the importer's expense in custody
of the federal government until import duty — if required — is paid.
ULLAGE
Empty space present when container is not full.
VALUATION, ACTUAL
The actual value of goods shown on a bill of lading by the shipper
when the rate to be applied depends on the value of those goods.
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VESSEL TON
100 cubic feet.
VOYAGE CHARTER
Engaging services of cargo ship for specified trip from one port
to another at established tonnage rate.
WAREHOUSE
Place for receiving/storing goods and merchandise for hire. Warehouseman
is bound to use ordinary diligence in preserving goods.
WASTAGE
Loss of goods due to handling, decay, leakage, shrinkage, etc.
WAYBILL
A document containing the description of goods which are part of
a common carrier freight shipment. Shows origin, destination, consignee/consignor,
and amount charged. Copies of this document travel with goods and
are retained by originating/delivering agents. Used by carriers
for internal records and control, especially during transit. It
is not a transportation contract.
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WEIGH STATION
Permanent station equipped with scales at which motor vehicles
transportation 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. Often combined
with port of entry facilities.
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).
YARD (FREIGHT)
Unit of track systems within certain area used for storing cars,
loading/unloading freight, and making up trains over which movements
not authorized by timetable or train order may be made. Subject
to prescribed signals/regulations.
Shipping
Terms
Terms in the following section apply to any mode of transport including
multimodal. These terms are also used for roll-on/roll-off and containerized
ocean freight. Where the subterm (... named place/port of ...) or
(... named place) is inserted after an INCOTERM, that placename
must be specified and becomes a legal part of the term.
EXW Ex Works
This represents the minimum risk and cost for the supplier
and the maximum risk and cost for the buyer. The seller's only
responsibility is to make the goods available at his premises.
He is not responsible for loading the goods on the vehicle provided
by the buyer, unless otherwise agreed.
FCA Free Carrier (...named place)
The seller fulfills his obligation to deliver when he has handed
over the goods, cleared for export, into the charge of the carrier
named by the buyer at the named place or point.
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CPT Carriage Paid To (... named place of destination)
The seller pays the freight for the carriage of the goods to
the named destination, The risk of loss of or damage to the
goods, as well as any additional costs due to events occurring
after the time the goods have been delivered to the carrier,
is transferred from the seller to the buyer when the goods have
been delivered into the custody of the carrier.
CIP Carriage and Insurance Paid To (...named place of destination)
The seller has the same obligations as under CPT but with the
addition that the seller has to procure cargo insurance against
the buyer's risk of loss of or damage to the goods during the
carriage. The seller contracts for insurance and pays the insurance
premium. The buyer should note that under the CIP term the seller
is only required to obtain insurance on minimum coverage.
DAF Delivered at Frontier (...named place)
The seller fulfills his obligation to deliver when the goods
have been made available, cleared for export, at the named point
and place at the frontier but before the customs border of the
adjoining country. The term "frontier" may be used for any frontier
including that of the country of export. Therefore it is of
vital importance that the frontier in question be defined precisely
by always naming the point and place in the term.
DDU Delivered Duty Unpaid (...named place of destination)
The seller fulfills his obligation to deliver when the goods
have been made available at the named place in the country of
importation. The seller has to bear the costs and risks involved
in bringing the goods thereto (excluding duties, taxes, and
other official charges payable upon importation as well as the
costs and risks of carrying out customs formalities). The buyer
has to pay any additional costs and to bear any risks caused
by his failure to clear the goods for import in time.
DDP Delivered Duty Paid (...named place of destination)
The seller fulfills his obligation to deliver when the goods
have been made available at the named place in the country of
importation. The seller has to bear the risks and costs, including
duties, taxes, and other charges of delivering the goods thereto,
cleared for importation. While the EXW term represents the minimum
obligation for the seller, DDP represents the maximum obligation.
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Terms defined in the following section apply only
to Marine (Sea) movement, other than Roll-On/Roll-Off and Containerized
Cargo. Where the subterm (... named place/port of
...) or (... named place) is inserted after an INCOTERM, that placename
must be specified and becomes a legal part of the term.
EXW Ex Works
This represents the minimum risk and cost for the supplier
and the maximum risk and cost for the buyer. The seller's only
responsibility is to make the goods available at his premises.
He is not responsible for loading the goods on the vehicle provided
by the buyer, unless otherwise agreed.
FAS Free Alongside Ship (...named port of shipment)
The seller fulfills his obligation to deliver when the goods
have been placed alongside the vessel on the quay or in lighters
at the named port of shipment. This means that the buyer has
to bear all costs and risks of loss or of damage to the goods
from that moment. The FAS term requires the buyer to clear the
goods for export.
FOB Free On Board (...named port of shipment)
The seller fulfills his obligation to deliver when the goods
have passed over the ship's rail at the named port of shipment.
This means that the buyer has to bear all costs and risks of
loss of or damage to the goods from that point. The FOB term
requires the seller to clear the goods for export. This term
can only be used for sea or inland waterway transport. When
the ship's rail serves no practical purpose, such as in the
case of roll-on/roll-off or container traffic, the FCA term
is more appropriate to use.
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CFR Cost And Freight (...named port of destination)
The seller must pay the costs and freight necessary to bring
the goods to the named port of destination but the risk of loss
of or damage to the goods, as well as any additional costs due
to events occurring after the time the goods have been delivered
on board the vessel, is transferred from the seller to the buyer
when the goods pass the ship's rail in the port of shipment.
The CFR term requires the seller to clear the goods for export.
This term can only be used for sea and inland waterway transport.
When the ship's rail serves no practical purpose, such as in the
case of roll-on/roll-off or container traffic, the CPT term is more
appropriate to use.
CIF Cost, Insurance and Freight (...named port of destination)
The seller has the same obligations as under CFR but with the
addition that he has to procure marine insurance against the
buyer's risk of loss of or damage to the goods during the carriage.
The seller contracts for insurance and pays the insurance premium.
The buyer should note that under the CIF term the seller is
only required to obtain insurance on minimum coverage. The CIF
term requires the seller to clear the goods for export.
DES Delivered Ex Ship (...named port of destination)
The seller fulfills his obligation to deliver when the goods
have been made available to the buyer on board the ship uncleared
for import at the named port of destination. The seller has
to bear all the costs and risks involved in bringing goods to
the named port of destination.
DEQ Delivered Ex Quay (Duty Paid) (...named port of destination)
The seller fulfills his obligation to deliver when he has made
the goods available to the buyer on the quay (wharf) at the
named port of destination, cleared for importation. The seller
has to bear all risks and costs including duties, taxes and
other charges of delivering the goods thereto.
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DDU Delivered Duty Unpaid (...named place of destination)
The seller fulfills his obligation to deliver when the goods
have been made available at the named place in the country of
importation. The seller has to bear the costs and risks involved
in bringing the goods thereto (excluding duties, taxes, and
other official charges payable upon importation as well as the
costs and risks of carrying out customs formalities). The buyer
has to pay any additional costs and to bear any risks caused
by his failure to clear the goods for import on time.
DDP Delivered Duty Paid (...named place of destination)
The seller fulfills his obligation to deliver when the goods
have been made available at the named place in the country of
importation. The seller has to bear the risks and costs, including
duties, taxes, and other charges of delivering the goods thereto,
cleared for importation. While the EXW term represents the minimum
obligation for the seller, DDP represents the maximum obligation.
North American sellers and buyers tend to use the term "FOB" inappropriately. |