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GLOSSARY OF TERMS
 

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ABANDONMENT
    1. 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.
    2. Shipper or consignee relinquishes damaged freight carrier or refuses to accept delivery.
    3. 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
    1. Acknowledged receipt by consignee of a shipment, terminating the common carrier contract.
    2. 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
    1. Charge in addition to regular freight charge to compensate for unusual local conditions.
    2. 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. Top


BACK HAUL
    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 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
    1. A warehouse approved by the Treasury Department and under bond/guarantee for observance of revenue laws.
    2. 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
    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 are then dispersed to various buyers.

BREAKDOWN TIME

A type of penalty pay which is incurred when equipment breaks down.


BROKER
    1. An agent who arranges interstate movement of goods by other carriers.
    2. An arranger of exempt loads for owner-operators and/or carriers.
    3. One who arranges the buying/selling of goods for a commission.
    4. 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
    1. An upright wall in a trailer or railcar that separates and stabilizes a load.
    2. 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
    1. A trailer loaded to the legal weight limit.
    2. 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)
    1. Quantity of freight required to fill a railcar.
    2. 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
    1. The charge for pickup/delivery of goods.
    2. 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
    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 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
    1. A special (usually lower) rate for specific types of goods (usually exempt commodities).
    2. 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
    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 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
    1. A trailer moving empty.
    2. A shipment moving without charges.
    3. A ride-along driver.

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 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
    1. A single-axle piece of trailing equipment used to hook two trailers together.
    2. 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
    1. A shortage, overage, or damage to a shipment.
    2. 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
    1. The weight in pounds loaded onto a trailer.
    2. 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
    1. Weight of article without packing and container.
    2. 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
    1. Carried cargo.
    2. 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
    1. An exchange of rights. In motor transportation, may involve granting equal rights to vehicles of several states in which reciprocity agreements are in effect.
    2. To give preference in buying to vendors who are customers of buying company.

RECONSIGNMENT
    1. 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.
    2. 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
    1. Course/direction that shipment moves.
    2. To designate course/direction shipment shall move.
    3. Carrier(s) with junction points over which shipment moves.

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 en route.
    2. Right of shipper to determine carriers, routes and points for transfer on TL and CL shipments.

SATELLITE
    1. A local servicing terminal. Also called "city," "group," or "end-of-the-line" terminals.
    2. 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
    1. Trailer equipped with rear wheels only. The front of the trailer is supported by landing legs when not hooked to power.
    2. Generally used to refer to a full size (45 to 48-foot) trailer; as opposed to a doubles trailer.

SHIPMENT
    1. 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.
    2. 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
    1. Weight of container and material used for packing.
    2. 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

  1. The carrying capacity of a ship/vessel.
  2. The tax/duty paid on such capacity.
  3. The weight a ship will carry, expressed in tons.

TRAFFIC
    1. Department/division responsible for obtaining most economic commodity classification and method of transportation materials and products.
    2. 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)
    1. Quantity of freight that will fill a truck.
    2. Quantity of freight weighing the maximum legal amount for a particular type of truck.
    3. 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.