GLOSSARY OF TERMS
A
A-1 - Term used to signify a first class ocean vessel.
AA - Always Afloat (In some ports the ship aground when approaching, or at berth)
ABAFT - A point beyond the midpoint of a ships length, towards the rear or stern.
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 or 2) Shipper or consignee relinquishes
damaged freight to carrier or refuses to accept delivery or 3) Giving up title to partly destroyed property
to the insurers or 4) The act of relinquishing title to damaged or lost property in order to claim a total
loss.
ABSOLUTE LIABILITY - Condition in which carrier is responsible for all liability and is not protected by
the normal exemptions found in the Bill of Lading or common law liability.
ABSORPTION - Acceptance by a carrier of a portion of a joint rate or change which is less in amount than
that which it would receive for the service in the absence of such joint rate or charge.
ABSTRACT - Abridgement of evidence omitting nonessential items. Used especially in regulatory
proceedings.
ACCEPTANCE - 1) Acknowledged receipt by consignee of a shipment terminating the common carrier’s
contract. 2) A promise to pay usually evidenced by inscribing across the face of the bill “accepted”,
followed by the date, the place payable and the acceptor’s signature. (Broadly: any agreement to
purchase goods under specified 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 are pickup/delivery, in-transit privileges, dernurrage,
switching, loading/unloading, weighing, storage, inspection, grading, repackaging, billing, fabrication,
etc.
ACCESSORIAL SERVICES - Services performed in addition to the normal transportation service. Common
accessorial services include advancement of charges, pickup, delivery, COD Service, signature service,
storage etc.
ACTUAL GROSS WEIGHT - The sum of the container weight, tractor pulling it and the payload contained
in it.
ACTUAL PAYLOAD - Actual weight of commodity being transported (actual gross weight minus tare
weight).
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ACTUAL VALUATION - Actual value of goods shown on Bill of Lading by shipper when rate to be applied
depends on value.
AD HOC - Latin phrase meaning “for this”. In business used to indicate a single end or purpose, a
onetime application e.g., an “ad hoc” investigating committee.
AD VALOREM - Latin phrase meaning “according to value”. Freight rates set at a certain fixed
percentage of the value of articles.
AD VALOREM DUTY - Tax imposed on imported merchandise assessed as a percentage of its value.
ADD-ON - A term equivalent to proportional, arbitrary or construction rate.
ADMIRALTY COURT - A court having jurisdiction over maritime questions pertaining to ocean transport,
including contracts, charters, collisions, and cargo damages.
ADP - Abbreviation for AUTOMATED DATA PROCESSING.
ADVANCE AGAINST DOCUMENTS (AAD) - A loan made on the security of the actual documents
covering a shipment.
ADVANCE ARRANGEMENTS - The shipment of certain classes of commodities in air freight-examples:
gold, precious gems, furs, live animals, human remains, and oversized shipments- require arrangements
in advance with carriers: The shipper or its agent must contact the carrier prior to tendering the
consignment.
ADVANCE FREIGHT - Partial payment of the Bill of Lading freight in advance. In other respects is the
same as guaranteed freight.
ADVANCED CHARGE - Freight or charge on a shipment that is advanced by one transportation company
or another, or to the shipper, to be collected from the consignee.
ADVANCEMENT OF CHARGES - A service under which carriers, in some instances, pay incidental
charges. Examples would include cartage and warehousing costs. These charges can be in advance for
the convenience of either the shipper or their receiver. Generally abbreviated PBA (PAID BY AGENT) on
Air Waybills.
ADVENTURE - Shipment of goods on shipper’s own account. A bill of adventure is a document signed by
the master of the ship that carries goods at owner’ risk.
ADVICE OF SHIPMENT - Notice to local or foreign party that shipment has occurred with details of
packing, routing, etc. A copy of the invoice is usually enclosed and sometimes a copy of the Bill of
Lading.
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ADVISING BANK - A bank that receives a Letter of Credit from an issuing bank, verifies its authenticity
and forwards the original Letter of Credit to the exporter without obligation to pay.
ADVISORY CAPACITY - A term used when the powers of an agent or representative aboard are limited
and not authorized to make definite decisions/adjustments without reference to the principal.
AFFIDAVIT - Written statement which must be witnessed and sworn before a notary public or officer
with authority to administer oaths or affirmations.
AFFILIATE - A company that controls, or is controlled by another company, or is one of two or more
commonly controlled companies.
AFT - Movement toward the stern (back end) of a ship.
AFLOAT - Commodities underway in water transit, either actually aboard vessels at sea or in port but
not yet unloaded.
AFTER DATE - When a DRAFT bears this phrase, the time begins to run its date. The date of maturity is
therefore fixed and does not depend upon presentation or acceptance.
AFTER SIGHT - When a DRAFT bears this phrase, the time begins to run from its presentation or
acceptance.
AFTERMARKET - Activities completed after the sales process, such as the replacement and servicing of
parts; particularly prevalent in the automotive industry.
AGAINST - In international trade, used as a synonym for “upon,,.
AGENCY AGREEMENT - The steamship line appoints the steamship agent and defines the specific duties
and areas of responsibility of that agent.
AGENT - 1) A person or organization authorized to act and/or transact business for and in the name of
another person or organization or 2) A broker.
AGENT OF CHANGE - The professional who lobbies for new ways of doing business.
AGGLOMERATION - A net advantage a company gains by sharing a common location with other
companies.
AGGREGATED SHIPMENTS - Several shipments from different shippers to a single consignee
consolidated and treated as single consignment.
AGGREGATE TENDER RATE - A reduced rate offered to a shipper who tenders two or more class-related
shipments at one time and one place.
AGIO - Premium paid for exchange of one currency for another.
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Al - ALL INCLUSIVE.
AIR BRAKE - A brake which is operated by air. The air brake system on tractors consists of air lines,
valves, tanks, and an air compressor.
AIR CARGO - Any property (freight, mail, express) carried or to be carried in an aircraft. Does not
include passenger baggage.
AIR EXPRESS - A term often used to describe expedited handling of air freight service. See also PRIORITY
AIR FREIGHT.
AIR FREIGHT - A service provided for the transport of goods in any volume. Air freight is by far, the
predominant form of air cargo and accounts for over 80% of all air cargo movements. Each shipper’s
decision to move goods by air turns on one or more of these basic factors: The time factor, inventory
control, superior condition of goods upon arrival or lower shipping costs. Increasingly, the decision to
ship by air is a market oriented decision and hence, a consumer oriented decision.
AIR FREIGHT FORWARDER - Serves a dual role. The air freight forwarders are, to the shipper, an indirect
carrier because they receive freight from shippers under their own tariff usually consolidating it into
larger units which is tendered to the airlines. To the airlines, the air freight forwarder is a shipper. An air
freight forwarder is ordinarily classed as an indirect air carrier. However, several air freight forwarders
operate their own aircraft.
AIR PARCEL POST - Term commonly used for priority mail which consists of first class mail weighing
more than 13 ounces. Priority mail is another economical and expedited service for the shipping of
parcels by air.
AIR RIDE SUSPENSION - The suspension system supports the weight of the load, plus the trailer on air
filled rubber bags rather than the old system which used steel springs. The compressed air is supplied by
the air compressor and reservoir tanks which provide air for the air brake system.
AIR SPRING SYSTEM - The system in which the container and plunger are separated by pressurized air.
When the container and plunger attempt to squeeze together, the air compresses and produces a spring
affect.
AIR TANK - A reservoir for storing air for use in the air brake system. Braking would be impossible
without an adequate supply of air.
AIR TAXI - An exempt for-hire air carrier that will fly anywhere on demand. Air taxis are restricted to a
maximum payload and passenger capacity per plane.
AIR WAYBILL - Shipping document used by the airlines for air freight. It is a contract for carriage that
includes carrier conditions of carriage including such items as limits of liability and claims procedures.
The air waybill also contains shipping instructions to airline, a description of the commodity, and
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applicable transportation charges. Air waybills can be used by many truckers as through documents for
coordinated air-truck service. Air waybills are not negotiable. The airline industry has adopted a
standard formatted air waybill that accommodates both domestic and international traffic. The standard
document was designed to enhance the application of modem computerized systems to air freight
processing for both the carrier and the shipper. Normally, an Air Waybill refers to the Air Waybill issued
by carrying airlines and also called Master Air Waybill (MAWB) which comes with three digits of numeric
airline identification codes issued by IATA to non-U.S. based airlines and Air Transport Association of
America to U.S. based airlines. However, air freight forwarders also issue HAWB (House Air Waybill) to
their customers for each of the shipments.
AIRCRAFT CONTAINER - A unit load device (ULD) which links directly with the airplane cargo handling
and restraint system.
AIRCRAFT PALLET - The use of a platform or pallet (in air freight usually from 3/4” to 2” thick) upon
which unitized shipment rests or on which goods are assembled and secured before being loaded as a
unit onto the aircraft. Most carriers offer container discounts for palletized loads. Palletization results in
more efficient use of space aboard freighter aircraft and better cargo handling, particularly when used
as part of mechanized systems employing such other advances as pallet loaders and pallet transporters.
AIRFREIGHTMENT - An agreement by a steamship line to provide cargo space on a vessel at a specified
time and for a specified price to accommodate an exporter or importer, who then becomes liable for
payment even though he is later unable to make the shipment.
AIRMAIL - As a class of mail is used only in international postal service. Within the USA, the U.S. Postal
Service moves all first class mail, priority mail & express mail by air to expedite delivery.
ALL-COMMODITY RATE - 1) Usually a carload/truckload rate applicable to multiple shipments which
move at one time in one vehicle from the consignor to the consignee or 2) “freight-all-kinds” or FAK
rate. 3) An all-commodity rate is established based on actual transportation cost rather than “Value of
service”.
ALL-CARGO AIRCRAFT - An aircraft for the carriage of cargo only rather than the combination of
passengers and cargo. The all-cargo aircraft will carry traffic in bulk or container in the main deck as well
as in the lower deck of the aircraft. It may include a scheduled and non-scheduled service.
ALL-RISK CLAUSE - An insurance provision that all loss or damage to goods is insured except that of
inherent vice (self caused). See All-Risk Insurance.
ALL-RISKS COVERAGE - A type of marine insurance, is the broadest kind of standard coverage, but
excludes damage caused by war, strikes, and riots. The broadest form of coverage available, providing
protection against all risks of physical loss or damage from any external cause. Does not cover loss or
damage due to delay, inherent vice, pre-shipment condition, inadequate packaging, or loss of market.
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ALL-RISK INSURANCE - Names given to a policy which covers against loss caused by all perils except
those which are specifically excluded in the terms of the policy. This is the broadest form of coverage
available, providing protection against all risks of physical loss or damage from any external cause. Does
not cover loss or damage due to delay, inherent vice, pre-shipment condition, inadequate packaging, or
loss of market. Ordinary policies name the peril or perils specifically covered in the policy.
ALL IN - The total price to move cargo from origin to destination, inclusive of all charges.
ALL IN RATE - Freight rate which is inclusive of all surcharges and extras.
ALLONGE - A slip of paper attached to a BILL OF LADING, ACCEPTANCE or NOTE for the purposes of
providing space for additional endorsements.
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 party to another. Normally, a phrase referring to the side of a ship. Goods to be delivered
“alongside” are to be placed on the dock or barge within reach of the transport ship’s tackle so that they
can be loaded aboard the ship. Also, goods delivered to the port of embarkation, but without loading
fees.
ALTERNATE ROUTING - Routing that is less desirable than the normal but results in identical terms.
AMBIENT TEMPERATURE - The temperature of a surrounding body. The ambient temperature of a
container is the atmospheric temperature to which it is exposed.
ANCILLARY EQUIPMENT - Equipment used to build up a palletized load or to convey an ULD outside an
aircraft.
ANIMAL CONTAINERS - The use of air freight as a means of transporting household pets led to the
development of special containers designed to provide adequate protection and air circulation. Such
containers may be purchased or rented from many carriers.
ANTI-LOCK BRAKING SYSTEM (ABS) - The ABS system helps the driver retain control of the vehicle under
heavy braking conditions.
ANY-QUANTITY RATE - A rate that applies to any size shipment tendered to a carrier. No discount rate
is available for large shipments.
ANY QUANTITY (A.Q.) - Usually refers to a rating that applies to an article regardless of size or quantity.
A rate that applies to any size shipment tendered to a carrier; no discount rate is available for large
shipments
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APPARENT GOOD ORDER - Statement denoting that goods are free from damage and in good
condition, as far as (heir external appearance is concerned.
APPRAISEMENT - Determination of the dutiable value of imported merchandise by a Customs official
who follows Procedures outlined in their country’s tariff
ARBITRARY - 1) Charge in addition to regular freight charge to compensate for unusual local conditions
or 2) Fixed amount accepted by a carrier when dividing joint rates. Also referred to as a PROPORTIONAL,
ADD-ON or construction rate.
ARBITRAGE - The buying of foreign exchange, securities or commodities in one market & the
simultaneous selling in another in terms of a third market. By this manipulation, a profit is made due to
the difference in rates of exchange or in the price of the securities or commodities involved.
ARBITRATION CLAUSE - A standard clause to be included in the contracts of exporters and importers as
suggested by the American Arbitration Association stating that any controversy or claim will be settled
by arbitration in accordance with the rules of the American Arbitration Association.
ARRIVAL NOTICE - On arrival of freight at destination, notice is promptly sent to the consignee showing
number of packages, description of goods, route, rate, weight, car initial and number, amount of freight
charges, location where delivery will be made and the time allowed for removal before
demurrage/storage charges will accrue. Also the Notice that the carrier or the forwarders sends to the
consignee when a shipment has arrived.
ARTICLES OF EXTRAORDINARY VALUE (AEV)- Commodities identified as high value items.
ARTIFICIAL INTELLIGENCE - A field of research seeking to understand and computerize the human
thought process.
AS CUSTOMARY - In a contract, this refers to the usual manner of performing a service without a time
period specified.
AS/IS - Term indicating that goods offered are without warranty or guarantee. Buyer has no recourse on
vendor for the quality of the merchandise.
ASN - ADVANCED SHIPMENT NOTIFICATIONS
ASSESSMENT - The imposition of Antidumping Duties on imported merchandise.
ASSEMBLY SERVICE - A service under which a carrier assembles shipments from many shippers and
transports them as one shipment to one receiver.
ASSET-BASED PROVIDER - A logistics company with ties to a motor carrier, air carrier, railroad, or
warehouse management firm.
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ASSIGNMENT - Legal transfer of the rights, duties, responsibilities and/or benefits of an agreement,
contract, or financial instrument to third party.
ASSIGNMENT OF PROCEEDS - A stipulation within a Letter of Credit in which some or all of the
proceeds are assigned from the original beneficiary to one or more additional beneficiaries.
ASTERN - Behind a vessel. Move in a reverse direction.
AT ANCHOR - Held in place in the water by an anchor. Includes “moored” to a buoy or anchored vessel
and “dragging anchor”.
ATA - ACTUAL TIME OF ARRIVAL or AIRPORT-TO-AIRPORT or AIR TRANSPORT ASSOCIATION OF
AMERICA or AMERICAN TRUCKING ASSOCIATION.
ATA CARNET - A customs document permitting the holder to carry or send merchandise temporarily
into certain foreign countries (for display, demonstration or similar purposes) without completing
normal customs formalities. With a carnet, holder avoids paying duties or posting bonds.
ATAG - AIR TRANSPORT ACTION GROUP.
ATD - Actual Time of Departure.
ATDNSHINC - Any time Day or Night Sundays & Holidays Included.
ATHWARTSHIP - A direction across the beam of a vessel.
ATTENDANT ACCOMPANYING SHIPMENTS - Sometimes attendants accompany cargo shipments as
when grooms or veterinarians accompany racehorses. This service requires advance arrangements with
an airline.
AUDIT TRAIL - 1) Path generated by a fully processed business transaction includes original entry,
transaction listing, file posting and report or 2) Management controls that document acceptance,
handling and movement of materials through a warehouse or 3) Verifying summary account balances by
analysis/inspection of underlying source documents and transaction records.
AUDITING - In transportation, determining the correct charges. Auditing involves checking freight bills
for errors, correct rate & weight.
AUTOMATIC POD - Information automatically sent to payer containing name of person who signed for
the package with (late and time of delivery. See also POD.
AUTHORITY - Operating rights granted by a motor carrier by the ICC. See OPERATING AUTHORITY.
AUTHORITY TO PAY - A letter mainly used in the Far East trade which is addressed by a bank to a seller
of merchandise notifying him that it is authorized to purchase, with or without RECOURSE, drafts up to a
stipulated amount drawn on a foreign buyer in cover of specialized shipments of merchandise.
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AUTHORIZED CARRIER - Person / company authorized to engage in the transportation of property as a
common carrier or contract carrier.
AVERAGE - Any loss or damage due to insured perils that is less than a total loss. Two types of average
occur:PARTICULAR AVERAGE and GENERAL AVERAGE.
AVERAGE COST - Total cost, fixed plus variable, divided by total output.
AWWL - Always within Institute Warranties Limits (Insurance purpose).
AXLE - A structural component to which wheels, brakes, and suspension are all attached. Types of axles
include Steer Axle: the front axle of the tractor; Drive Axles: axles with powered wheels; Pusher Axles:
unpowered, go ahead of drive axles; Tag Axles: unpowered, go behind drive axles; Rear Axles: may be
drive, pusher, or tag axles and Trailer tandem axles: generally unpowered, sometimes split apart for
distribution.
AXLE RATINGS - Rear axles generally carry three ratings; the carrying capacity rated at the ground (raw
materials); the total weight the axle is capable of carrying/pulling in service & the gross combined
weight (GCW) which is the maximum horsepower limit the axle is capable of carrying (engine size
rating).
B
B/L - Abbreviation for BILL OF LADING.
BACK ORDER - The process a company uses when a customer orders an item that is not in inventory,
the company fills the order when the item becomes available.
BACK-TO-BACK CREDITS - A term commonly used to denote LETTERS OF CREDIT issued for account of
different buyers to cover the same shipment, the terms of which credits are so similar that documents
under one are subsequently applicable against one another.
BACKHAUL - 1) Return transportation movement, usually at less revenue than the original move (headhaul) or 2) Movement in the direction of lighter traffic flow when traffic is generally heavier in the
opposite direction or 3) To move a shipment back over part of a route already traveled.
BACKUP - Making a duplicate copy of a computer file or a program on a disk or cassette so that the
material will not be lost if the original is destroyed. A spare copy.
BAF - BUNKER ADJUSTMENT FACTOR. A surcharge/discount on the ocean freight rate to offset oil price
either fixed sum per TEU or in percent. Sometimes called “Fuel Adjustment Factor” or FAF.
BAl CERTIFICATE - Issued by the Bureau of Animal Industry of the USDA certifying veterinary inspection.
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BALANCE OF TRADE - The difference between a ‘country’s total imports and exports. If exports exceed
imports, a favorable balance of trade exists; if not, a trade deficit is said to exist.
BALE - A large compressed, bound, and often wrapped bundle of a commodity, such as cotton or hay.
BALLAST - Heavy material which is placed in the ship’s hold for stability.
BALLAST BONUS - Special payment above the Chartering price when the ship has to sail a long way on
ballast to reach the loading port.
BANK ACCEPTANCE - A DRAFT of which a bank is drawee and acceptor.
BANK DRAFT - Bill of Exchange drawn by one bank to another. Normally used to provide a customer
with funds payable at distant bank.
BANK RELEASE - Negotiable time draft drawn on and accepted by a bank which adds its credit to that of
an importer of merchandise.
BANKER’S ACCEPTANCE - A banker’s acceptance is a draft drawn on and accepted by a bank. Depending
on the bank’s creditworthiness, the acceptance becomes an instrument which can be discounted.
BANKER’S DRAFT - Draft payable on demand and drawn by or on behalf of the bank itself; is regarded as
cash and cannot be returned unpaid.
BANK’S GUARANTEE - An assurance, obtained from a bank by a foreign purchaser; that the bank will
pay an exporter up to a given amount for goods shipped if the foreign purchaser defaults.
BAR CODE - A symbol consisting of a series of printed bars representing values. A system of optical
character reading, scanning, and tracking of units by reading a series of printed bars for translation into
a numeric or alphanumeric identification code.
BAR CODE SCANNER - A device to read bar codes and communicate data to computer systems.
BARGE - The cargo carrying vehicle used primarily by inland water carriers. The basic barges have open
tops, but there are covered barges for both dry and liquid cargos.
BARRATRY - An act committed by the master or mariners of a vessel, for some unlawful or fraudulent
purpose, contrary to their duty to the owners, whereby the latter sustain injury. It may include
negligence, if so gross as to evidence fraud.
BARREL - 1) Container of cylindrical shape made of wood, aluminum or steel that is longer than wide
with ends with equal diameters or 2) A term of measure referring to 42 gallons of liquid at 60o F.
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BARTER - The exchange of goods or services of equivalent value without the use of currency. Barter is
the oldest form of trade. Widely used in trade with countries using currencies that are not readily
convertible on the world exchange markets.
BASING POINT: Geographic point to which transportation rates are set to that rates to adjacent points
can be constructed by adding or deducting from the Basing Point rate.
BATCH PICKING - The picking of items for more than one order at a time.
BAY - Area in a warehouse outlined by markings on columns or posts or floor to show specific
boundaries.
BEAM - Greatest width of a ship’s structure.
BELLY CARCO - Freight accommodation below the main deck oh an aircraft.
BENEFICIARY - The person in whose favor a DRAFT is drawn or a LETTER OF CREDIT opened. The
beneficiary is usually the seller or exporter.
BELLY PITS OR HOLDS - Compartments located beneath the cabin of an aircraft and used for the carriage
of cargo and passenger baggage.
BENCHMARKING - Using specific measurements to compare performance against another standard. A
management tool for comparing performance against an organization that is widely regarded as
outstanding in one or more areas, in order to improve performance.
BENEFICIAL CARGO OWNER - The importer of record, who physically takes possession of cargo at
destination and does not act as a third party in the movement of such goods.
BENEFIT-COST RATIO - An analytical tool used in public planning. A ratio of total measurable benefits
divided by the initial capital cost.
BERTH - Ship’s place at dock, pier, quay or wharf where a vessel can be loaded or discharged.
BERTH LINER SERVICE - Is a regular scheduled steamship line with regular published schedules (port of
call) from and to defined trade areas.
BERTH OR LINER TERMS - An expression covering assessment of ocean freight rates generally implying
that loading and discharging expenses will be for ship owner’s account and usually apply from the end of
ship’s tackle in port of loading to the end of ship’s tackle in port of discharge.
BERTH RATES - Rates charged by scheduled liner services.
BEST PRACTICE - State-of-industry performance or application.
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BILGE - 1) The lowest internal part of a ship’s hull, next to the keelson, where the bilge water collects or
2) Belly of a barrel or cask.
BILL OF EXCHANGE - Also referred to as a DRAFT. Instrument drawn by one person ordering second
person to pay definite sum of money to third person on sight (SIGHT DRAFT) or at definite time in the
future (TIME DRAFT).
BILL OF LADING - Principal transportation document, by which a carrier acknowledges receipt of freight,
describes the freight and sets forth a contract of carriage. It is a receipt for goods and contracts to move
them. Terms and conditions, responsibilities and liabilities vary with manner and place of use. Bills of
Lading may be negotiable or non-negotiable. Contents of the Bill of Lading were outlined in 1917. Every
Bill of Lading must contain at least the following:
1) Date of issue; 2) Name of consignor; 3) Place of original consignment; 4) Place of delivery; 5)
Statement of whether goods are to be delivered to a specific person; 6) Description of goods/packages
containing them and 7) Signature of carrier. There are many kinds of Bills of Lading: Uniform Straight Bill
of Lading, Short Form Uniform Straight Bill of Lading, Order-Notify bill of Lading, Ocean-Marine Bill of
Lading, Air Bill of Lading, Express Bill of Lading, etc.
BOBTAIL - The tractor operating without a trailer attached
BOGIE - 1) An assembly of two or more axles or 2) Removable set of rear axles and wheels used to
support a van container.
BALLOON FREIGHT - Cargo which takes up a lot of space, but is very light.
BOLSTER – A device fitted on a chassis or railcar to hold and secure the container.
BOLSTER - A device so fitted on a chassis or railcar so as to hold and secure the container.
BONA FIDE - Latin phrase meaning “in good faith”. Also used to mean “real” or “true”.
BOND - 1) Obligation made binding by payment of a fee, which is lost if the contract is violated or 2) A
binding agreement.
BONDED TERMINAL - An airline terminal approved by the U.S. Treasury Department for storage of
goods until Customs duties are paid or the goods are otherwise released.
BONDED WAREHOUSE - A warehouse authorized by customs for storage of goods on which payment of
duties is deferred until the goods are removed.
BOOKING - Arrangements with a carrier for the acceptance mid carriage of freight; i.e., a space
reservation.
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BOTTOM SIDE-RAILS - Structural members located on the longitudinal sides of the base of the
container.
BOX - 1) Slang term for trailer or container for ocean carriers or 2) A slang term used for truck
transmission.
BOXCAR - An enclosed railcar typically 40 to 50 feet long; used for packaged freight and some bulk
commodities.
BOW - The front of a vessel.
BRACING -Securing a shipment inside a carrier’s vehicle to prevent damage.
BRANCH LINE - Railroad line providing train service to one or more stations beyond a junction with the
main line or another branch in the line.
BREAK BULK - To unload, sort and reload some/all of a vehicle in transit or 2) To reduce a large
shipment of a single commodity to many shipments that are then dispersed to various buyers or 3)
Disassembling of consolidated shipment for delivery or re-consignment of a shipment or 4) Loose cargo,
such as cartons, stowed directly in the ship’s hold as opposed to containerized or bulk cargo.
BREAK-BULK VESSEL - A vessel designed to handle large or oversized cargo; generally cargo unsuitable
for container stowage.
BREAK-EVEN WEIGHT - The weight at which it is cheaper to charge the lower rate for the next higher
weight- break times the minimum weight indicated, than to charge the higher rate for the actual weight
of the shipment.
BREAKING OUT THE BOX - Solving conventional problems with unconventional thinking.
BRIDGE FORMULA - Formula used to determine the maximum gross weight that can be carried on any
given arrangement of consecutive axles.
BRIDGE POINT - An inland location where cargo is received by the ocean carrier and then moved to a
coastal port for loading.
BRIDGE PORT - A port where cargo is received by the ocean carrier and stuffed into containers but then
moved to another coastal port to be waded on a vessel.
BROKEN STOWAGE - The loss of space caused by irregularity in the shape of packages.
BROKER - I) Agent who arranges interstate movement of goods by other carriers or 2) Arranger of
exempt loads for owner-operators and/or carriers or 3) One who arranges the buying/selling of goods
for a commission or 4) Person who leases owned equipment to a carrier or 5) Solicitor of insurance who
places orders for coverage with companies designated by the insured or with companies of his choosing.
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BROKERAGE - Fee or commission that is paid to a BROKER for services performed.
BULK - A mass of a product, unpackaged.
BULK AREA - A storage area for large items which at a minimum are most efficiently handled by the
pallet load.
BULK CARGO - Loose cargo that is loaded directly into a ship’s hold.
BULK CARRIER - Vessel engaged in carriage of bulk commodities like petroleum, grain or ore, which are
not packaged, bundled, bottled or otherwise packed. There are two yes of bulk carriers, the dry-bulk
carrier and the liquid-bulk carrier, better known as a tanker. Bulk cargo is a shipment such as oil, grain,
or one which is not packaged, bundled, bottled, or otherwise packed and is loaded without counting or
marking.
BULK SHIPMENTS - Shipments which are not packaged, hut are loaded directly into the vessel’s holds.
Examples of commodities that can be shipped in bulk are ores, coal, scrap, iron, grain, rice, vegetable oil,
tallow, fuel oil, fertilizers, and similar commodities.
BULKHEAD - 1) Upright wall in trailer or rail car that separates a load or 2) Cargo restraining partition in
a vehicle or vessel.
BULL RINGS - Cargo securing devices mounted in the floor ui containers which provide for the lashing
and securing of cargo.
BUNKER - Ship’s coal bin or oil storage place.
BUNKER ADJUSTMENT FACTOR - An adjustment in & upping charges to offset price fluctuations in the
cost of fuel. Also known as a Bunker Surcharge (B/S). The word Bunker refers to fuel storage containers
on a vessel. Normally either a fixed sum per TEU or in percent.
BUSINESS LOGISTICS - The physical movement of goods from supply points to final sale to customers,
and the associated transfer and holding of such goods at various intermediate storage points,
accomplished in such a manner as to contribute to the explicit goals of an organization. The process of
planning, implementing and controlling the efficient, effective flow and storage of goods, services and
related information from the point of origin to the point of consumption for the purpose of conforming
to customer requirements. Note that this definition includes inbound, outbound, internal and external
movements.
BUSINESS PROCESS RE-ENGINEERING - The fundamental thinking and radical redesign of business
process to achieve dramatic improvements in critical, contemporary measures of performance, such as
cost, quality, service and speed.
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BUYERS RIGHT TO ROUTE - When a seller does not pay for freight charges, the purchaser has the 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.
C
C & F (Cost & Freight) – Term used in ocean transportation meaning the price states includes cost of
goods and transportation charges to point of destination; insurance is normally not included.
CAB OVER - Short for cab-over-engine, designed so that the cab sits over the engine on the chassis.
CAGE - 1) A secure enclosed area for storing highly valuable items or 2) A pallet-sized platform with
sides that can be secured to the tines of a forklift and in which a person may ride to inventory items
stored well above the warehouse floor or 3) The transporting of goods by truck to or from a vessel,
aircraft, or bonded warehouse, all under customs custody.
CAGED - Before import customs formality has been completed cleared & released, cargo remains at
bonded warehouse under customs custody.
CAMPUS - A site where multiple distribution centers share resources, such as employees and transport,
to maximize time and cost efficiencies.
CAPACITY REQUIREMENTS PLANNING - Process for determining the amount of machine and labor
resources required to meet production.
CANTILEVER RACK - Racking system in which the shelving supports are connected to vertical supports at
the rear ii the rack. There are no vertical supports on the face of the rack allowing for storage of very
long pieces of material such as piping and lumber.
CAPACITY PLATE - Plate affixed to a forklift truck indicating the maximum weight which can be raised or
moved by that equipment.
CAPITAL - The resources, or money, available for investing iii assets that produce outi5ut.
CAPSTAN - 1) Mechanical device for moving/raising heavy weights used at docks in mooring vessels at
rail terminals to move dead engines or COMPUTER-AIDED PLANNED STOWAGE AND NETWORKING
SYSTEM.
CAPTAIN’S PROTEST - Declaration by master of ship on arrival in port to accidents/damage to ship/cargo
during the voyage designated to relieve ship owner of liability.
CAR POOLING - Use of individual carrier/rail equipment through a central agency for the benefit of
carriers and shippers.
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CAR SEAL - Metal strip and lead fastener used for locking freight car or truck doors. Seals are numbered
for record purposes.
CARAT - Cargo Agents Reservation Air Waybill Issuance and Tracking.
CARFLOAT - A barge equipped with tracks on which up to about 12 railroad cars are moved in harbors or
inland waterways.
CARGO - 1) Freight transported or 2) Goods, merchandise or commodities of every description which
may be carried aboard a vessel, in consideration of the freight charged; does not include provisions and
stores for use on board or 3) Equivalent to the term “goods” meaning anything carried or to be carried
in an aircraft or vessel other than mail or property carried under the terms of an international postal
convention or baggage (including personal effects accompanying al passenger) or the property of the
carrier; providing that unaccompanied baggage moving under an air waybill or Bill of Lading is cargo.
CARGO AIRCRAFT ONLY - Indicates hazardous goods that may only be loaded on cargo planes.
CARGO AGENT - An agent appointed by a carrier to solicit and process international freight for
shipments. In air freight, cargo agents are paid commissions by the airline.
CNS – CARGO NETWORK SERVICES CORP – A subsidiary of the International Air Transport Association
was founded to serve the needs of the Air cargo industry in the United States. CNS provides services to
promote productivity, profitability, credibility, cooperation and quality of service among air carriers and
cargo agents.
CARGO PLAN - Stowage plan of a vessel.
(AR(() PREFERENCE: Cargo reserved by a Nation’s hiws for transportation only on vessels registered in
that Nation. Typically the cargo is moving due to a direct or iiidirect support or activity of the
Government.
CARGO RECEIPT - A receipt of cargo for shipment by a consolidator (used in ocean freight
CARGO SELECTIVITY SYSTEM - The Cargo Selectivity System, a part of Customs’ Automated Commercial
System, specifies the type of examination (intensive or general) to be conducted for imported
merchandise. The type of examination is based on database selectivity criteria such as assessments of
risk by filer, consignee, tariff number, country of origin, and manufacturer/shipper. A first time
consignee is always selected for an intensive examination. An alert is also generated in cargo selectivity
the first time a consignee files an entry in a port with a particular tariff number, country of origin, or
manufacturer/shipper.
CARGO TONNAGE - Most ocean freight is billed on the basis of weight or measurement tons (WIM).
Weight tons can be expressed in short tons of 2000 pounds, long tons of 2240 pounds or metric tons of
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1000 kilos (2204.62 pounds). Measurement tons are usually expressed as cargo measurement of 40
cubic feet (1.12 meters) or cubic meters (35.3 cubic feet.)
CARLOAD (CIL or CL) - 1) Quantity of freight required to fill a rail-car or 2) Specified quantity necessary
to qualify a shipment for a carload rate.
CARMACK AMENDMENT - An Interstate Commerce Act amendment that delineates the liability of
common carriers and the Bill of Lading provisions.
CARNET - Customs documents permitting the holder to carry or send sample merchandise temporarily
into certain foreign countries without paying duties or posting bonds. Foreign customs regulations vary
widely; in some countries, duties and extensive customs procedures on sample products may be
avoided by obtaining an ATA Carnet. The ATA Carnet is a standardized international customs document
used to obtain duty-free temporary admission of certain goods into the countries that are signatories to
the ATA Convention. Under the ATA Convention, commercial and professional travelers may take
commercial samples; tools of the trade; advertising material; and cinematographic, audiovisual, medical,
scientific, or other professional equipment into member countries temporarily without paying customs
duties and taxes or posting a bond at the border of each country visited. The carnets are generally valid
for 12 months. See also TEMPORARY Importation UNDER BOND.
CAROUSEL - A rotating system of layers of bins and/or drawers that can store many small items using
relatively little floor space.
CARRIAGE - That part of transportation service that is represented by actual movement of goods to a
point of destination after having been loaded but before being unloaded.
CARRIAGE PAID TO - Carriage paid to (CPT) and carriage and insurance paid to (CIP) a named place of
destination. Used in place of CFR and CIF, respectively for shipment by modes other than water.
CARRIER - Individual, partnership or corporation engaging iii the business of transporting goods or
passengers, in most cases, for a fee. Usually means Steamship Company, but can also refer to trucking
company, airline, or railroad as transporter of cargo.
CARRIER CERTIFICATE AND RELEASE ORDER - used to advise customs of the shipment’s details. By
means of this document, the carrier certifies that the firm or individual named in the certificate is the
owner or consignee of the cargo.
CARRIERS CONTAINERS/SHIPPERS CONTAINERS - The term Carrier(s) Container(s) or Shipper(s)
Container(s) means containers over which the carrier or the shipper has control either by ownership or
by the acquisition thereof under lease or rental from container companies or container suppliers or from
similar sources. Carriers are prohibited from purchasing, leasing or renting shipper owned containers.
CARRIER’S LIABILITY - Liability begins when goods are delivered at the proper place and ends when
goods have been delivered to the consignee or when the carrier’s duty has been discharged according to
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the terms of the freight contract. A common carrier is liable for all shipment loss, damage, and by delay
with the exception of that caused by act of God, act of a public enemy, act of a public authority, act of
the shipper, and the goods’ inherent nature.
CARRIAGE AND INSURANCE PAID TO (CPA) (...NAMED PLACE OF DESTINATION) - Seller pays freight and
insurance for carriage of the goods to the named destination.
CARRIAGE AND INSURANCE PAID TO (CIP) (...NAMED PLACE OF DESTINATION) - The seller has the
same obligations as under PT 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.
CARRYING COST - Also called holding cost, carrying cost is the cost associated with having inventory on
hand. It is primarily made up of the costs associated with the inventory investment and storage cost. For
the purpose of EOQ calculations, if the cost does not change based upon the quantity of inventory on
hand it should not be included in carrying cost. Carrying cost is represented as the annual cost per
average on-hand inventory unit.
CARTAGE - 1) Charge for pickup or delivery of goods or 2) Act of moving goods (usually short distances).
CARTAGE AGENT - Ground service operator who provides pickup and delivery in areas not served
directly by air carrier.
CARTMENT - Customs form permitting in-bond cargo to be moved from one location to another under
Customs control, within the same Customs district. Usually in motor carrier’s possession while draying
cargo.
CARTEL - Group of industrial companies that agree to regulate output, divide markets and set prices at
which to sell products. An illegal practice in the U.S. since it violates antitrust laws.
CARTON CLAMP - Lift truck attachment that operates like a paper roll clamp except the clamping
surface is flat rather than circular.
CARTON FLOW RACK - A storage rack consisting of multiple lines of gravity flow conveyors.
CASE MARKS - Information shown on the outside of shipping cartons, including destination and
contents.
CASH AGAINST DOCUMENTS (CAD) - Payment for goods in which a commission house or other
intermediary transfers title documents to the buyer upon payment in cash. A term denoting that
payment is made when the bill of lading is presented.
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CASH BEFORE DELIVERY (CBD) - Seller assumes no risk and extends no credit because he is paid before
shipment.
CASH IN ADVANCE (CIA) - Payment for goods in which the full price is paid in full before the shipment is
made. This type of payment is only made for small shipments or when goods are made to order.
CASH ON DELIVERY - COD means payment to be made upon the delivery of goods.
CASH WITH ORDER (CWO) - Payment for goods in which a buyer pays when ordering and in which the
transaction is binding on both parties.
CASHIER’S CHECK - Check drawn by a bank.
CASS - Abbreviation for CARGO AGENTS SETTLEMENT SYSTEM. Administered by CNS. Simplifies air
cargo reporting, billing and remittance procedures through a centralized settlement system.
CASTING - Generally describes an unfinished item made of metal that is produced through pouring
molten metal into a mold. A casting is later machined into a finished or semi-finished item. Also
describes the process used to produce castings.
CATCH WEIGHT - Used primarily in the food industry for products such as seafood, meats, and cheeses;
catch weights refer to the actual weight of variable-weight items that use weight as the sales unit of
measure. Catch weights are generally recorded during the order picking or shipping process. Systems
using catch weights must be able to correctly process sales order line items based on the catch weights
being within specific tolerances of the “order quantity”.
CAT SCALES - The most common type of scales at truck stops in the USA are CAT scales. These are
purported to be the most accurate, and they guarantee the weight reading to be accurate, or else they’ll
go to court for you and pay the fine.
CATEGORY MANAGEMENT - Managing products with similar requirements and characteristics (e.g.,
temperature-or humidity-controlled) as a single systems or category throughout the supply chain.
CAVEAT EMPTOR - Latin term meaning “let the buyer beware”. Common law imposes on the buyer the
duty of examining the purchase. There is no recourse against seller because of the defects.
CB (CITIZENS BAND RADIO) - The type of radio that’s used by truckers to communicate with each other.
CDL (COMMERCIAL DRIVERS LICENSE) - The drivers license which authorizes individuals to operate
commercial motor vehicles and buses over 26,000 pounds gross vehicle weight.
CELLS - The construction system employed in container vessels; permits ship containers to be stowed in
a vertical line with each container supporting the one above it.
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CELLULAR VESSEL - Ship constructed for transportation of containers stacked on top of each other in
vertical guide shafts, no general freight carried.
CENTER OF GRAVITY - The point of equilibrium of the total weight of a containership, truck, train or a
piece of cargo.
CENTRALIZED AUTHORITY - The restriction of authority to make decisions to few managers.
CERTIFICATE OF ANALYSIS - A certificate required by some countries as proof of the quality and
composition of food products or pharmaceuticals. The required analysis may be made by a private or
government health agency. The certificate must be legalized by a foreign consul of the country
concerned, as is the case with such similar certificates as the phytosanitary certificate.
CERTIFICATE OF INSPECTION - A document often acquired in connection with shipments of perishable
goods in which certification is made as to the good condition of the merchandise immediately prior to
shipment. Pre-shipment inspection is a requirement for importation of goods into many developing
countries.
CERTIFICATE OF INSURANCE - Issued (usually on Form E or Form H) by an officer of an insurance
company, to state agency or other party, stating the fact that the party named has insurance coverage in
amounts/type. Not a binding agreement.
CERTIFICATE OF MANUFACTURE - A statement sometimes notarized by a producer, usually also the
seller or merchandiser that indicates the goods have been manufactured and are at the disposal of the
buyer.
CERTIFICATE OF MANUFACTURER - Document used with letters of credit when drafts are
paid/negotiated on presentation of a certificate stating the fact that the goods have been completed
and are being held for shipment.
CERTIFICATE OF ORIGIN - A document required by U.S. Customs and certain other countries for tariff
purposes certifying as to the country of origin of specified goods. Sometimes requires the signature of
the consul of the country to which it is destined. A certificate may be required even though the
commercial invoice contains the information.
CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY - The grant of operating authority that is given
to common carriers. A carrier must prove that a public need exists and that the carrier is fit, willing, and
able to provide the needed service. The certificate may specify the commodities to be hauled, the area
to be served, and the routes to be used.
CERTIFICATE OF REGISTRY - Document issued by maritime authorities indicating legal restriction of a
ship.
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CERTIFICATED CARRIER - A for-hire carrier that is subject to economic regulation and that requires an
operating certification to provide services.
CFR - An Incoterms 2000 term whereby shipper is responsibility for ocean transportation of the goods to
port of destination. Buyer covers insurance from the port of origin to port of destination.
CFS - Container Freight Station at loading port means the location designated by carriers for the
receiving of cargo to b packed into containers by the carrier. At discharge ports, the term CFS means the
bonded location designated by carriers in the port area for unpacking and delivery of cargo.
CFS/CFS - The term CFS/CFS means cargo delivered by break-bulk to Carrier’s CFS to be packed by
Carrier into containers and to be unpacked by Carrier from the container at Carrier’s destination port
CFS. Often referred to as “Pier to Pier”
CFS/CY - The term CFS/CY means cargo delivered break-bulk to Carrier’s CFS to be packed by Carrier into
containers d accepted by consignee at Carrier’s CY and unpacked by consignee off Carrier’s premises, all
at consignee’s risk and expense.
CFS CHARGE - The term CFS Charge means the charge assessed for services performed at the loading or
discharging port in packing or unpacking of cargo into/from containers at CFS.
CFS RECEIVING SERVICE - The term “CFS Receiving -vices” means the service performed at loading port
in receiving & packing cargo into containers from CFS to CY or shipside. CFS Receiving Services are
restricted to the following: Moving empty containers from CY to CFS, Drayage of loaded containers from
CFS to CY and/or ship’s tackle, Tallying, Issuing dock receipt/shipping order, Physical movement of cargo
into, out of and within CFS, Stuffing, Sealing, Marking containers, Storage, Ordinary sorting & stacking,
Preparing carrier’s internal container load plan
CHANNEL OF DISTRIBUTION - A means by which a manufacturer distributes products from the plant to
the ultimate user, including warehouses, brokers, wholesalers, retailers, etc.
CHARGEBACK - A financial penalty placed against a supplier by a customer when a shipment to the
customer does not meet the agreed upon terms and conditions. Examples of where suppliers may be
charged back would include late shipments, lack of proper packaging and labeling (compliance labels),
and incorrect shipping terms (shipping collect instead of prepaid or not using the correct carrier or
account).
CHARGES FOR PACKING SHIPMENTS - Some carriers provide material and services for packing and
unpacking special commodities that require special packaging and handling. A charge is made for this
service.
CHARGEABLE WEIGHT - The weight used in determining freight charges. The chargeable weight may be
the dimensional weight or on container shipments, gross weight of the shipment less tare weight of the
container.s
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CHARGEABLE KILO -Rate for goods where volume exceeds 6cbm to the tonne.
CHARGES COLLECT - Transportation charges may include pickup and/or delivery and are entered on the
air waybill to be collected from the consignee. Equivalent terms are freight collect or charges forward.
CHARGES FORWARD - A banking term used when foreign and domestic bank commission charges,
interest (if any) and government taxes in connection with the collection of a draft are for the account of
the drawee.
CHARGES FOR PACKING SHIPMENTS - Some carriers provide material and services for packing and
unpacking special commodities that require special packaging and handling. A charge is made for this
service.
CHARGING AREA - A warehouse area where a company maintains battery chargers and extra batteries
to support a fleet of electrically powered materials handling equipment.
CHARTER - Originally meant a flight where a shipper contracted hire of an aircraft from an airline. Has
usually come to mean any non-scheduled commercial service.
CHARTER PARTY - A contract, expressed in writing on a special form, between the owner of a vessel and
the one (the Charterer) desiring to employ the vessel, setting forth the terms of the arrangement such
as freight rates and ports involved in the trip contemplated. Also, among other specifications, the
contract usually stipulates the exact obligations of the ship-owner (loading the goods, carrying the goods
to a certain point, returning to the charterer with other goods, etc.); or it provides for an outright leasing
of the vessel lo the charterer, who then is responsible for his own loading and delivery. In either case,
the charter party sets forth the exact conditions and requirements agreed upon by both sides.
CHARTER PARTY BILL OF LADING - A bill of lading issued under a charter party. It is not acceptable by
banks under letters of credit unless so authorized in the credit.
CHARTER SERVICE - The temporary hiring of an aircraft usually on a trip basis, for the movement of
cargo or passengers.
CHASSIS - A trailer-type device with wheels constructed to accommodate containers enabling the load
to be moved over-the-road. Also, a wheel assembly including bogies constructed to accept mounting of
containers.
CHECK DIGIT NUMBER - A single digit of the air waybill number used to insure that the air waybill
number is correctly entered into a computer system.
CHOCK - 1) A piece of wood or other material placed at the side of cargo to prevent it from rolling about
or moving sideways or 2) A wedge, usually made of hard rubber or steel, that is firmly placed under the
wheel of a trailer, truck, or boxcar to stop it from rolling.
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CIF - An Incoterms 2000 term whereby seller is the one insuring the goods to the port of destination.
Transfer of responsibility is accomplished at port of destination. Buyer covers all related charges with
import custom clearance.
CIF&C - Price includes commission as well as CIF.
CIF&E - Abbreviation for COST, INSURANCE, FREIGHT AND EXCHANGE.
CIFCI - Abbreviation for COST, INSURANCE, FREIGHT, COLLECTION AND INTEREST.
CIFI&E - COST, INSURANCE, FREIGHT, INTEREST AND EXCHANGE.
CIP - CARRIAGE AND INSURANCE PAID TO: An Incoterms 2000 term whereby the risk for delivery of
goods and providing the insurance to named place destination. Buyer is responsible for custom duties
and taxes. CIP term arrange usually multimodal transportation.
CIRCA - “About”
CITES -Abbreviation COMMITTEE ON INTERNATIONAL TRADE OF ENDANGERED SPECIES
CITY DRIVER - A motor carrier driver who drives a local route as opposed to a long-distance, inter-city
route.
CITY TERMINAL SERVICE - A service provided by some airlines to accept shipments at the terminals of
their cartage agents or other designated in-town terminals or to deliver shipments to these terminals at
lower rates than those charged or the door-to-door pickup and delivery service.
CKD - Abbreviation for COMPLETELY KNOCKED DOWN. Parts and subassemblies being transported to an
assembly plant.
CLAIM - 1) Demand on a transportation company for payment due to loss/damage of freight that
occurred during transit or 2) Demand on a transportation company for refund on overcharge or 3)
Demand by individual or corporation to recover for loss under policy of insurance.
CLASS (or KIND) of MERCHANDISE - A term used in defining the scope of an antidumping investigation.
Included in the “class or kind” of merchandise is merchandise sold in the home market which is “such or
similar” to the petitioned product. “Such or similar” merchandise is that merchandise which is identical
to or like the petitioned product in physical characteristics.
CLASS I CARRIER - A classification of regulated carriers based upon annual operating revenues--motor
carriers of property of more than $5 million; railroads more than $50 million and motor carriers of
passengers more than $3 million.
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CLASS II CARRIER - A classification of regulated carriers based upon annual operating revenues--motor
carriers of property of $1-$5 million; railroads of $l0-$50 million and motor carriers of passengers less
than $3 million.
CLASS III CARRIER - A classification of regulated carriers based upon annual operating revenues--motor
carriers of property of less than $1 million and railroads less than $10 million.
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. A class rate is available for any product between any two points.
CLASSIFICATION - 1) An alphabetical listing of commodities, the class or rating into which the
commodity is placed, and the minimum weight necessary for the rate discount. Used in the class rate
structure or 2) A customs term. The placement of an item under the correct number in the customs
tariff for duty purposes. At times this procedure becomes highly complicated or 3) A publication, such as
Uniform Freight Classification (railroad) or the National Motor Freight Classification (motor carrier), that
assigns ratings to various articles and provides bill of lading descriptions and rules.
CLASSIFICATION YARD - A railroad terminal area where railcars are grouped together to form train
units.
CLAUSED BILL OF LADING - A bill of lading which has exemptions to the receipt of merchandise in
“apparent good order” noted.
CLEAN BILL OF LADING - A bill of lading which covers goods received in “apparent good order and
condition” and without qualification.
CLEAN DRAFT - A draft to which no documents are or have been attached.
CLEAR HEIGHT - Distance measured from the floor to the bottom of the lowest hanging overhead
obstruction. Sometimes realtors will use the distance to the bottom of the tool trusses to calculate clear
height even though portions of the building may have lower clear heights due to HVAC units or other
equipment suspended from the roof.
CLEANING IN TRANSIT - The stopping of articles, such as peanuts, etc., for cleaning at a point between
the point of origin and destination.
CLEARANCE - 1) Customhouse certificate that ship is free to leave, all legal requirements having been
met or 2) Space or measurements above and beside tracks/highways.
CLEARANCE LIGHTS - The lights on top of the front and rear of the trailer; often referred to as the
marker lights.
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CLEAT - Strip of wood or metal used to add additional strength or to prevent warping or to keep goods
in position.
CLIP-ON - Refrigeration equipment attachable to an insulated container that does not have its own
refrigeration unit.
CLUTCH BRAKE - The clutch brake is engaged when you push the clutch all the way to the floor. You only
do this when you’re stopped, and need to get the truck into gear.
COASTWISE - Water transportation along the coast.
COASTAL CARRIERS - Vessels that provide service along coasts serving ports on the Atlantic or Pacific
oceans or on the Gulf of Mexico.
COD TERMS OF SALE - Abbreviation for CASH ON DELIVERY. Buyer pays carrier the price of goods before
they are delivered. Seller assumes risk of buyer refusing to accept goods.
COFC - Abbreviation for CONTAINER ON FLATCAR.
COGS - Cost of Goods Sold
COLLAPSIBLE CONTAINER - Fitted that the main parts are hinged or removable to reduce effective
volume for transporting in an empty condition, thus making more efficient use of empty space.
COLLECT CHARGES - The transportation practice under which the receiver of the goods pays charges.
COLLECT ON DELIVERY (COD) - A transportation service under which the purchase price of the goods is
collected by the carrier from the receiver at the time of delivery, and subsequently, payment is
transmitted by the carrier to the shipper. Carriers charge a nominal fee for this service. As the term COD
implies payment is due upon delivery with no credit provisions.
COLLECT SHIPMENT - Shipment where collection freight charges/advances is made by delivering carrier
from the consignee/receiver.
COLLECTION PAPERS - All documents (invoices, bills of lading or air waybill, etc.) submitted to a buyer
for the purpose of receiving payment for a shipment.
COLLECTION SYSTEM - The Collections System, a part of Customs’ Automated Commercial System,
controls and accounts for the billions of dollars in payments collected by Customs each year and the
millions in refunds. Daily statements are prepared for the automated brokers who select this service.
The Collections System permits electronic payments of the related duties & taxes through the
Automated Clearinghouse capability. Automated collections also meet the needs of the importing
community through acceptance of electronic funds transfers for deferred tax bills & receipt of electronic
payments from lock-box operations.
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COLLECTIVE PAPER - All documents (commercial invoices, bills of lading, etc.) submitted to a buyer for
the purpose of receiving payment for a shipment.
COMBI AIRCRAFT - Aircraft specially designed to carry unitized cargo loads on the upper deck of the
aircraft forward of the passenger compartment.
COMBINATION AIRCRAFT - An aircraft capable of transporting both passengers and cargo on the same
flight. Some came is carried on virtually all scheduled passenger flights in the belly pits below the
passenger cabin.
COMBINATION RATE - A rate made up of two or more hwtors, separately published.
COMBINATIQN VESSELS - Container/Break-bulk vessel: This type of ship accommodates both container
and break-bulk cargo. It can be either self sustaining or non-self sustaining.
COMMERCE - Buying, selling, trading and transportation of goods and services.
COMMERCIAL CODE - A published code designed to reduce the total number of words required in a
message.
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 buyer
and date. The commercial invoice is a bill for the goods from the seller to the buyer. These invoices are
often used by governments to determine the true value of goods for the assessment of customs duties
and used to prepare consular documentation. Governments using the commercial invoice to control
imports often specify its form, content, number of copies, language to be used, and other
characteristics.
COMMERCIAL RISK - Risk carried by the exporter (unless insurance is secured) that the foreign buyer
may not be able to pay for goods delivered on an open account basis. Commercial risks often cover
nonpayment for reasons other than Political Risks such as insolvency or protracted default.
COMMERCIAL SET - Set of four “negotiable” documents that represents and takes the place of the
goods themselves in the financing of the cargo sales transaction.
COMMERCIAL TREATY - An agreement between two or more countries setting forth the conditions
under which business between the countries may be transacted. May outline tariff privileges, terms that
property may be owned, manner in which claims may be settled, etc.
COMMERCIAL ZONE - The area surrounding a city or town to which rate carriers quote for the city or
town also apply defined by the ICC.
COMMISSION - Fee charged by brokers as compensation for their services in purchasing or selling
commodities/securities at the direction of a customer.
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COMMODITIES CLAUSE - A clause that prohibits railroads from hauling commodities that they produced,
mined, owned or had an interest in.
COMMODITY CODE - A system for identifying a given commodity by a number as a means of facilitating,
for example, the application of computerization to freight transport.
COMMODITY RATE - A rate for a specific commodity and its origin or destination.
COMMON CARRIER - Any carrier engaged in the interstate transportation of persons or property on a
regular schedule at published rates and whose service are available to the general public on a for-hire
basis. Common carriers are regulated by the ICC. To operate, the carrier must secure a certificate of
public convenience and necessity.
COMMON CARRIER DUTIES - Common carriers are required to serve, deliver, charge reasonable rates
and not discriminate.
COMMON COST - A cost that cannot be directly assignable to particular segments of the business that is
incurred for the business as a whole.
COMMON LAW - Law that derives its force and authority from precedent, custom and usage rather than
from statutes, parsticularly with reference to the laws of the UK and the United States.
COMMON MARKET - A common market (as opposed to a free trade area) has a common external tariff
and may allow for labor mobility and common economic policies among the participating nations. The
European Community is the most notable example of a common market.
COMPARATIVE ADVANTAGE - The assumption that an area will specialize in production for which it has
the greatest advantage or the least comparative disadvantage.
COMPLIANCE LABELS - Standardized label formats used by trading partners. Compliance labels are used
as shipping labels, container/ pallet labels, carton labels, or piece labels, and usually contain bar codes.
Many bar-code labeling software products now have more common compliance standards set up as
templates.
COMPULSORY PAYMENT - In certain regions, the maritime shipper or air freight carrier only agrees to
transport the goods following payment at the port of departure.
CONCEALED DAMAGE - When product in an apparently undamaged container is damaged. Usually
freight claims for concealed damage are difficult to settle because neither shipper nor carrier wants
responsibility.
CONCURRENCE - Document signed by carrier and filed with the Interstate Commission that verifies
carrier participates in rates published in a tariff by a given agent.
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CONDITIONS OF CONTRACT - The terms and conditions established by carriers for the carriage of goods.
These conditions include such items as limits of liability, claims limitations, indemnity and dimensional
weight rules.
CONFERENCE - 1) Independent/autonomous organization within the American Trucking Association
(ATA) that represents a certain class/type of motor carrier or 2) Association of ship owners servicing the
same trade route who operate under collective conditions of carriage and tariff rates.
CONFIDENTIAL CONTRACT - A binding written agreement for the rates and conditions of moving traffic,
negotiated between a shipper and railway and kept confidential between them. Such contracts were not
permitted before the 198 National Transportation Act.
CONFISCATION - The taking and holding of private property by a government or an agency acting for a
government. Compensation may or may not e given to the owner of the property.
CONGESTION SURCHARGE - Surcharge on ocean freight rate for mooring fees in the port if it is
“congested”; generally fixed amount per TEU or W/M
CONRAIL - Abbreviation for the CONSOLIDATED RAIL CORPORATION established by the Regional
Reorganization Act of 1973 to operate the bankrupt Penn Central Railroad and other bankrupt railroads
in the Northeast. The 4-R Act of 1976 provided funding.
CONSIGN - 1) Deliver formally to another or 2) Send goods to buyer, factor or agent to sell.
CONSIGNEE - Person who receives the goods shipped from one owner (consignor) or a person named as
the receiver of a shipment: one to whom a shipment is consigned. Also, the person or firm named in a
freight contract to whom goods have been consigned or turned over.
CONSIGNEE MARKS - A symbol laced on packages for identification purposes; generally consisting of a
triangle, square, circle, diamond, cross, with letters and/or numbers as well as port of discharge.
CONSIGNMENT - Shipment of one or more pieces of property, accepted by the carrier from one shipper
at one time, receipted for in one lot and moving on one air waybill. Also merchandise shipped to a
foreign agent or customer when an actual purchase has not been made, but under an agreement
obliging the consignee to pay the consignor for the goods when sold. Also, the delivery of merchandise
from an exporter (the consignor) to an agent (the consignee) under agreement that the agent sell the
merchandise for the account of the exporter. The consignor retains title to the goods until sold.
CONSIGNMENT INVENTORY - Inventory that is in the possession of the customer, but is still owned by
the supplier. Consignment inventory is used as a marketing tool to make it easier for a customer to stock
a specific supplier’s inventory.
CONSIGNOR - A term used to describe any person who consigns goods to himself or to another party in
a bill of lading or equivalent document. A consignor might be the owner of the goods, or a freight
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forwarder who consigns goods on behalf of his principal. Normally the Shipper of goods and the person
whose name appears as the party contracting with the carrier for the carriage of goods.
CONSOLIDATED SHIPMENT - A method of shipping whereby an agent (freight forwarder or consolidator)
combines individual consignments from various shippers into one shipment made to a destination
agent, for the benefit of preferential rates. (Also called “groupage”) The consolidation is then deconsolidated by the destination agent into its original component consignments and made available to
consignees. Consolidation provides shippers access to better rates than would be otherwise attainable.
CONSOLIDATION - 1) Practice of combining less-than- carload (LCL) or less-than-truckload (LTL)
shipments to make carload/truckload movements or 2) The Consolidation Endorsement may be added
to an Open Cargo Policy at an agreed premium, to provide coverage on merchandise while in transit to,
and while at, a common consolidation point for the purpose of preparing or consolidating the
merchandise for export. Also, in order to handle small lot of consignment efficiently and competitively,
freight forwarder usually put many consignments into one lot then tender to carrier for forwarding:
Each consignment is shipped with one HAWB and all of them will be under one MAWB.
CONSOLIDATION CENTER - A warehouse or distribution centre in which goods are assembled into larger
units for onward distribution.
CONSOLIDATION POINT - The location where consolidation takes place. Collecting smaller shipments to
form a larger quantity in order to realize lower transportation rates.
CONSOLIDATOR - An entity that provides service also provided by an air carrier, independent from that
carrier, and derives income from package consolidation of others for tender to an air carrier. An Air
Freight Forwarder performs the functions of a consolidator.
CONSORTIUM - The name for an agreement under which several nations or nationals (usually
corporations) join together for a common purpose. It could be for management or exploitation of a
natural resource, as in the case of some international petroleum consortiums.
CONSTRUCTED VALUE - A means of determining fair or foreign market value when sales of such or
similar merchandise do not exist or, for various reasons, cannot be used for comparison purposes. The
“constructed value” consists of the cost of materials and fabrication or other processing employed in
producing the merchandise, general expenses of not less than 10 percent of material and fabrication
costs, and profit of not less than 8 percent of the sum of the production costs and general expenses. To
this amount is added the cost of packing for exportation to the USA.
CONSUMER GOODS - Products sold to non-business end users. Clothing, food, Music CDs, are examples
of consumer goods.
CONSUMER PACKAGED GOODS - Describes inventory that is in such a form that is ready for sale to
consumers (end-users).
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CONTAINER - The term container means a single rigid, non- disposable dry cargo, insulated,
temperature controlled flat- rack, vehicle rack portable liquid tank, or open top container without
wheels or bogies attached, having not less than 350 cubic feet capacity, having a closure or permanently
hinged door that allows ready access to the cargo (closure or permanently hinged door not applicable to
flat-rack vehicle rack or portable liquid tank). All types of containers will have constructions, fittings and
fastenings able to withstand without permanent distortion, all the stresses that may be applied in
normal service use of continuous transportation. All containers must bear manufacturer’s specifications.
CONTAINER LOAD - A loading which does not utilize the full volumetric capacity of a container nor the
maximum payload by weight and will permit additional part loads.
CONTAINER ON FLAT CAR (COFC) - Is the form of piggyback where the van-container is first de-mounted
from the chassis or bogie, prior to being loaded and secured directly onto a railroad flat car.
CONTAINER POOL - An agreement between transport carriers and/or container leasing companies
which will permit the exchange of containers.
CONTAINER SHIP - Vessel with specially designed cellular structure for transport of containers.
CONTAINERIZATION - The use of containers to unitize cargo for transportation, supply, and storage.
Containerization incorporates supply, transportation, packaging, storage, and security together with
visibility of container and its contents into a distribution system from source to user.
CONTINGENCY PLANNING - Preparing to deal with calamities (e.g., floods) and non-calamitous
situations (e.g., strikes) before they occur.
CONTINUOUS BOND - An annual customs bond insuring compliance with all regulations and
requirements.
CONTINUOUS FLOW DISTRIBUTION - The streamlined pull of products in response to customer
requirements while minimizing the total costs of distribution.
CONTINUOUS-FLOW, FIXED-PATH EQUIPMENT -Materials handling devices that include conveyors and
drag lines.
CONTINUOUS REPLENISHMENT PROGRAM - A customer-driven replenishment when the purchase of a
good by the end user triggers the manufacturing and movement of a product through the supply chain.
A system used to reduce responsibility to arrange transportation across the border, import customs
clearance and taxes payment.
D
DAMAGE CLAIM (FREIGHT) - Demand upon carrier for reimbursement for physical injury to shipment or
because shipment was not delivered within reasonable time.
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DANGEROUS GOODS - Articles or substances which are capable of posting a significant risk to health,
safety, or property when transported by air and which are classified according to the most current
editions of the CAD Technical Instructions for the Safe Transport of Dangerous Goods by Air and the
JATA Dangerous Goods Regulations. Dangerous goods may be transported domestically and
internationally by air.
DATA PLATE - Sign attached to container giving details of weight, dimensions, capacity, etc.
DATE DRAFT - Draft that matures in a specified number of days after the date it is issued, without regard
to the date of Acceptance.
DAY CAB - A tractor which has no sleeper berth. Often for local work where the driver gets home every
night.
DCA – (DEPARTMENT OF CIVIL AVIATION) Commonly used term to denote the government department
of any foreign country that is responsible for aviation regulation and granting traffic rights.
DDC - Destination Delivery Charge.
DDP (DELIVERED DUTY PAID) - Also known as “FREE DOMICILE” or “FREE HOUSE.” An Incoterms 2000
term whereby shipper responsibilities for most of the expenses. It is common term for courier or
intermodal type of transportation. The shipper is responsible for freight delivery at seller facility and
customs clearance. The shipper may decide not to insure the freight at his own risk.
DDU - DELIVERED DUTY UNPAID: An Incoterms 2000 term whereby seller responsibility for cargo
delivery to final destination but not unloaded and not cleared. Buyer is responsible for custom duties
and taxes. They may decide not to insure the goods at his own risk.
DE FACTO - Latin phrase meaning “in fact”, used to describe situation which exists regardless of any
other condition.
DEAD LEG - A sector flown without payload.
DEAD FREIGHT - Freight charges paid by the charterer of vessel for the contracted space, which is left
partially unoccupied.
DEAD WEIGHT TONNAGE (DWT) - 1) Estimated number of tons of cargo a vessel can carry when loaded
to maximum depth, obtained by subtracting displacement “light” and “loaded” tonnage and expressed
in long tons (2,240 lb.) or metric tons (1,000 kg). Serves as a basis for rates when vessels operate on time
charters or 2) Cargo of such nature that a long-ton is less than 70 cubic feet.
DEADHEAD - One leg of a move with either a tractor alone or a tractor pulling an empty container.
DECK CARGO - Cargo carried outside rather than within the enclosed cargo spaces of a vessel. On deck
carriage is required for certain commodities, such as explosives.
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DECLARATION BY FOREIGN SHIPPER - The U.S. Customs Service defines this term as a statement by the
shipper in the foreign country attesting to certain facts. For example, articles shipped from the United
States to an insular possession and then returned must be accompanied by a declaration by the shipper
in the insular possession, indicating that, to the best of his or her knowledge, the articles were exported
directly from the United States to the insular possession and remained there until the moment of their
return to the United States. (see 19 CFR 4.60 and 4.61 on U.S. clearance of vessels bound for a foreign
port or ports.)
DECLARATION OF DANGEROUS GOODS - To comply with the U.S. regulations, exporters are required to
provide special notices to inland and ocean transport companies when goods are hazardous.
DECLARED VALUE - 1) Assumed value of shipment unless shipper declares a higher amount (e.g. Air
freight declared value on most shipments has been 50 cents a pound or $50.00, whichever is greater) or
2) Process of stating a lower value on a shipment to obtain a lower rate.
DECLARED VALUE FOR CARRIAGE - The value of goods declared to the carrier by the shipper for the
purposes of determining charges or of establishing the limit of the carrier’s liability for loss, damage, or
delay. See VALUATION CHARGES.
DECLARED VALUE FOR CUSTOMS - The selling price of the contents or the replacement cost if the
contents are not for resale. The amount must be equal to or greater than the declared value.
DEDICATED CONTRACT CARRIAGE - A third-party contractual service that dedicates vehicles and drivers
to a single customer for its exclusive use. Usually done in a closed loop or fixed route situation.
DEFECTIVE GOODS INVENTORY - Those items that have been returned, have been delivered damaged
and have a freight claim outstanding, or have been damaged in some way during warehouse handling.
DEFERRED AIR FREIGHT - Air freight requiring dependable, reliable service, but of a less time sensitive
nature, with delivery provided over a period of days.
DEFERRED PAYMENT CREDIT - A type of Letter of Credit which provides for payment some time after
presentation of the shipping documents by the exporter.
DEFERRED REBATE - The return of a portion of the freight charges by a carrier or a conference shipper in
exchange for the shipper giving all or most of his shipments to the carrier or conference over a specified
period of time (usually 6 months). Payment of the rate is deferred for a further similar period, during
which the shipper must continue to give all or most of his shipments to the rebating carrier or
conference; system is illegal in U.S. foreign commerce, it generally is accepted in the ocean trade
between foreign countries.
DELAY - Even under All Risk coverage, damage due to delay is not recoverable. Most underwriters have
inserted a “Delay Cause” in the Open Cargo Policy, which states specifically that damage caused by delay
is not recoverable even if the delay was due to a peril insured against.
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DELCREDERE - Shifting of risk to somebody else, or acceptance by a party other than the original
creditor.
DELIVERY INSTRUCTIONS - Provides specific information to the inland carrier concerning the
arrangement made by the forwarder to deliver the merchandise to the particular pier or steamship line.
Not to be confused with Delivery Order which is used for import cargo.
DELIVERY ORDER - A document issued by the customs broker to the ocean carrier as authority to release
the cargo to the appropriate party.
DELTA NU ALPHA - A transportation fraternity of transportation and traffic practitioners.
DEMDES - Demurrage/Dispatch money. (Under vessel chartering terms, the amount to be paid if the
ship is loading/discharging slower/faster than foreseen.)
DEMURRAGE - Penalty for exceeding free time (generally 48 hours) allowed for loading/unloading under
terms of railroad/ocean tariffs. Detention means the same thing for motor carriers.
DENSITY - Weight per cubic feet or kg per cubic meter of space occupied by the article/dimensional
weight.
DENSITY RATE - A rate based upon the density and shipment weight.
DEREGULATION - Revisions or complete elimination of economic regulations concerning transportation.
The Motor Carrier Act of 1980, the Staggers Rail Act of 1980 and the Airline Deregulation Act of 1978
revised the economic controls over motor carriers, railroads and air forwarders respectively.
DEQ - DELIVERED EX-QUAY - An Incoterms 2000 term whereby ocean delivery of merchandise to named
port of destination at shipper’s expenses. Shipper assumes responsibility for vessel unloading charges,
but no further inland transportation. Buyer is responsible for customs clearance.
DEMAND - The demand for transportation of a product is derived from the demand for the product at
some location.
DERIVED DEMAND - The demand for a product’s transportation is derived from the product’s demand
at some location.
DES - DELIVERED EX-SHIP - An Incoterms 2000 term whereby goods delivery on ocean vessel at
designated port of destination, not unloading at seller’s expense. Buyer pays for vessel unloading fee,
insurance and customs clearance and taxes. Any expenses after ship arrival are buyer’s responsibility.
DESICCANT - Material that absorbs moisture by physical/chemical action (e.g. Calcium chloride).
Desiccants are includes in packages to keep the contents from suffering moisture damage.
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DEVALUATION - The official lowering of the value of one country’s currency in terms of one or more
foreign currencies.
DF CAR - Damage Free Car. Boxcars equipped with special bracing material.
DEVANNING - The discharge of cargo from a container.
DGR - Dangerous Goods Requirement or Dangerous Goods Regulations that govern the air transport of
dangerous goods.
DIFFERENTIAL - 1) Amount added to/deducted from a base rate to make rate to/from some other point
or via another route or 2) Part of power train of vehicle containing gears that convert rotation of drive
shaft to turn wheels/axles.
DIMENSIONAL WEIGHT - Dimensional weight refers to density, i.e. weight per cubic foot. The weight of
a shipment per cubic foot is one of its most important transportation characteristics directly involving
such factors as the efficient loading of an aircraft and the economy of freight traffic movement.
DIRECT OFFSET - involves compensation in related goods and usually involves some form of coproduction, license or joint venture.
DIRECT PRODUCT PROFITABILITY - Calculation of the net profit contribution attributable to a specific
product or product line.
DIRECT SHIP - Ship without consolidation and under one MAWB i.e. non-consolidation.
DIRECT STORE DELIVERY (DSD) - A logistics strategy to improve services and lower warehouse
inventories.
DISCHARGE PORT - The name of the port where the cargo is unloaded from the export vessel. This is the
port reported to the U.S. Census on the Shipper’s Export Declaration, Schedule K, which is used by U.S.
companies when exporting. This can also be considered the first discharge port.
DISCOUNT - An allowance from the quoted price of goods made usually by the deduction of a certain
percentage from the invoice price.
DISCREPANCY LETTER OF CREDIT - When documents presented do not conform to the requirements of
the letter of credit (L/C), it is referred to as a “discrepancy.” Banks will not process L/C’s which have
discrepancies. They will refer the situation back to the buyer and/or seller and await further
instructions.
DISCRIMINATION - Difference in rates not justified by costs. E.g. Two shipments move under the same
circumstances but for different charges.
DISHONOR - Refusal on the part of the drawee to accept a draft or to pay it when due.
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DISPATCHER - Person who schedules and controls truck pickups and deliveries. E.g. Assigns
drivers/return vehicles to jobs, records departures/return times, investigates overdue vehicles, issues
equipment, establishes routes etc.
DISPATCHING - The carrier activities involved with controlling equipment; involves arranging for fuel,
drivers, crews, equipment and terminal space.
DISPLACEMENT TONNAGE - Weight in long tons of water displaced by capacity of vessel and its cargo.
DISTANCE RATE SYSTEMS - Based on tapering rate principal in which rates increase with distance but
not as fast as distance itself. Distance rates are often established for key points.
DISTRIBUTION CENTRE (DC) - A facility that accepts inbound consignments of raw materials,
components or finished goods, divides and then recombines them in different ways into outbound
shipments.
DISTRIBUTION RESOURCE PLANNING - A computer system that uses MRP techniques to manage the
entire distribution network.
DISTRIBUTION SERVICE - A service, under which a carrier accepts one shipment from one shipper and,
after transporting it as a single shipment, separates it into a number of parts at destination and
distributes them to many consignees.
DISTRIBUTION WAREHOUSE - A warehouse that stores finished goods and from which customer orders
are assembled.
DISTRIBUTOR - An agent who sells for a supplier directly and maintains an inventory of the supplier’s
products.
DIVERSION - 1) A change made either in the route of a shipment in transit or of the entire ship or 2)
Change made in consignee, destination or route of shipment while in transit and to still pay the through
rate from origin to final destination.
DIVERSIONARY DUMPING - This occurs when foreign producers sell to a third country market at less
than fair value and the product is then further processed and shipped to another country.
DOCK - 1) Area at warehouse/manufacturing plant where goods are loaded, unloaded and sorted or 2)
Slip/waterway between two projections to receive vessels while taking on or discharging cargo or
passengers.
DOCK LEVELER - Device that provides a bridge to the trailer as well as a ramp to facilitate the transition
in height from dock to trailer. Dock levelers are rated by weight capacity and by the service range. The
service range, also known as the height differential, rates the safe range above and below dock level you
can use the leveler to transition to the trailer height.
35
DOCK LOCK - A safety device that hooks to a trailer’s bumper when backing to a loading dock. This
device is controlled from inside the facility and it prevents the trailer from being able to move away
from the dock, especially considering the safety of the forklift driver and anyone else inside the trailer.
DOCK RECEIPT - A steamship company form evidencing receipt of the goods at a pier. Copies of the form
are made available to shippers as a means of expediting handling at piers. The dock receipt is used to
transfer accountability when the export item is moved by the domestic carrier to the port of
embarkation and left with the international carrier for export. The Dock Receipt controls the ownership
of the goods until the Bill of Lading is issued.
DOCK STATEMENT - A receipt issued by an Ocean Carrier to acknowledge the receipt of a shipment at
the carrier’s dock or warehouse facility.
DOCKET - Present a rate proposal to a conference meeting for adoption as a conference group rate.
DOCUMENTARY CREDIT - A commercial letter of credit providing for payment by a bank to the named
beneficiary who is usually the seller of merchandise against delivery of such documents as may be
specified in the credit.
DOCUMENTS - Papers customarily attached to foreign drafts, consisting of ocean bills of lading, marine
insurance certificates, and commercial invoices, and where required, including certificates of origin and
consular invoices.
DOCUMENTS AGAINST ACCEPTANCE - Instructions given by a shipper to his bank that the documents
attached to a draft for collection are deliverable to the drawee against his acceptance of the draft.
DOCUMENTS AGAINST PAYMENT - Instructions given by a shipper to his bank that the documents
attached to a draft for collection are deliverable to the drawee only against his payment of the draft.
DOOR-TO-DOOR - Through transportation of a container/trailer and its contents from CONSIGNOR’s
loading facility to CONSIGNEE’s unloading facility. The through delivery of cargo from shipper to
receiver.
DOLLY - A piece of equipment used to move containers or pallets around the airport with the aid of a
tractor.
DOMESTIC EXPORTS - Exports of domestic merchandise include commodities which are grown,
produced, or manufactured in one country, and commodities of foreign origin which have been
substantially changed in this country, including Foreign Trade Zones, from the form in which they were
imported, or which have been enhanced in value by further manufacture in this country.+
DOMESTIC TRUNK LINE CARRIER - A classification for air carriers that operate between major
population centers. These carriers are now classified as major carriers.
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DOMICILE - The place where a draft or acceptance is made payable.
DOUBLE-STACK - Railcar movement of containers stacked two high.
DOUBLE BOTTOMS - A motor carrier operation that involves one tractor pulling two trailers.
DOUBLE-PALLET JACK - A mechanized device for transporting two standard pallets simultaneously.
DOWNSTREAM DUMPING - This occurs when foreign producers sell at below cost to a producer in its
domestic market, and the product is then further processed and shipped to another country.
DRAWBACK - A refund of duties paid on imported goods which is provided at the time of their reexportation.
DRAFT - I) Buyer’s payment for goods or 2) Depth of water necessary to float vessel
DRAYAGE – Transportation of freight by truck, primarily in local cartage.
DROP SHIPMENT – Shipment sent directly from manufacturer to retailer/industrial customer, even
though ordered through wholesaler, who takes title to goods and usual wholesale discount.
DUAL OPERATION – A motor carrier that has both common and contract carrier operating authority.
DUAL-RATE SYSTEM – An international water carrier pricing system where a shipper signing an
exclusive-use agreement with the conference pays a lower rate (10% to15%) than non-signing shippers
for an identical shipment.
DUNNAGE – Cardboard, lumber or other filler material used to stabilize shipment, does not include
packaging.
DUTY – Tax levied by government on import/export consumption goods.
DWT – (Deadweight Tonnage) – Estimated number of tons of cargo a vessel can carry when loaded to
maximum depth.
E
EDI – Electronic Data Interchangeable
EMBARGO – 1) Temporary refusal to accept traffic for transportation at certain points or in certain
routes due to emergencies, limitations of facilities or other abnormal circumstances; 2) detention of
vessels in port by order of government, usually issued in time of war/hostilities.
EMPTY LEG – Results from an aircraft primarily chartered outbound having cargo capacity inbound or
vice versa. A cheap form of airfreight.
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ENDORSE – Sign one’s name on back of document such as a check or Bill of Lading.
ENROUTE – A term used for goods in transit or on the way to a destination.
EQUIPMENT INTERCHANGE RECEIPT (EIR) – Form used by parties delivering/receiving
containers/container equipment, used for equipment control and damage purposes.
ESTOPPEL – Legal document used in court of law to establish liability.
ETA – Estimated time of arrival
ETD – Estimated time of departure
EXCEPTION RATE – A deviation from the class rate; changes are made to the classification.
EXCLUSIVE USE – Carrier vehicles that are assigned to a specific shipper for its exclusive use.
EXEMPT CARRIER – Motor carrier engaged in for-hire transportation of commodities, exempt from
economic regulations by ICC under provision Interstate Commerce Act, generally agricultural
commodities or seafood.
EXPEDITING – Moving shipments through regular channels at accelerated rate, an example of
dispatching less-than-truckload (LTL) quantities on a single truck for quick delivery.
EXPLOSIVES – As defined in the Hazardous Materials Regulations in 49 CFR any chemical compound
mixture or device, the primary or common purpose for which is to function by explosion, within the
explosives definition, there are further divisions into Class A, B, C and Blasting Agents.
EXPORT DECLARATION – A document required by the Department of Commerce that provides
information as to the nature, value, etc., of export activity.
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 – Certificate granting holder permission to export goods.
EXPRESS – Premium-rated service for urgent deliveries.
F
FACE VALUE – Nominal value on coin, paper currency or other negotiable document or instrument ; may
be lower or higher than the market value.
FACTOR – Agent appointed to sell goods on commission, also known as a commission merchant.
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FAIR MARKET VALUE – The sum that a sale of an article would bring under normal market conditions.
FAK – Freight All Kind.
FAS – Free Alongside Ship – An Incoterms 2000 whereby shipper is responsible for export clearance of
the merchandise and transfer is accomplished when the goods are turned over to buyer for
transportation and insurance.
FCL – Full Container Load. The maximum permissible weight for the value of the cargo carried in a
container.
FEEDER – An Intermodal context, a pick up or delivery vehicle or ship.
FEEDER VESSEL – A vessel that connects with a line vessel to service a port not directly served by that
line vessel.
FIFO – First In, First Out; Warehousing term meaning first items stored are the first used.
FISCAL YEAR – Annual period established for accounting purposes in business or government, may start
at any time in calendar year.
FIXED TANDEM – The assembly of two axles and suspension that is attached to the chassis in one place
and cannot be moved back and forth.
FLASH VESSELS – Feeder LASH vessels, which are shallow-draft vessels suitable to carry 8 to 15 LASH
barges at a time, towed by seagoing vessels.
FLAT CAR – A rail car without a roof and walls used for hauling machinery.
FLATBED – Trailer with level bed and no sides or tops.
FLAT –RACK CONTAINER - A container with no sides and frame members at the front and rear of the
container. Container can be loaded from the sides or the top.
FOB – Free on board. An Incoterms 2000 term whereby Seller turns over to the buyer responsibility
when cargo pass ship’s rail. Buyer is liable for all the risk and damages of the goods after the cargo has
been loaded on the vessel.
FOB DESTINATION – Freight cost paid to point of destination, 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 buyer.
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FOR-HIRE-CARRIER - A carrier that provides transportation service to the public on a fee basis.
FORCE MAJEURE – Condition in contract that relieves either party from obligation where major
unforeseen events prevent compliance with provisions of agreement.
FORE & AFT – The direction on a vessel parallel to the centerline.
FOREIGN TRADE ZONE – Goods subject to duty may be brought into such zones duty-free for
transshipment/storage/minor manipulating/sorting; duty must be paid when/if goods are brought from
zone into any part of United States.
FORKLIFT – Freight/materials handling vehicle used in loading/unloading heavy freight.
FORWARDING AGENT – Firm specializing in shipping goods abroad, payments made for insurance and
other expense are charged to foreign buyer.
FREE TIME – The amount of time allowed by a carrier for the loading or unloading of freight at the
expiration of which demurrage or detention charges will accrue.
FREIGHT BILL – The carrier’s invoice for transportation charges applicable to a freight shipment.
Freight Forwarder – 1) Individual/company that accepts less-than-truckload (LTL) shipments and
consolidates them into truckload lots on for-hire basis for shippers; 2) agent who helps expedite
shipments by preparing necessary documents/making other arrangements for moving of freight; 3)
designated as a common carrier under the Interstate Commerce Act.
Freight In Bond – Goods shipped under control/ownership of Government until duty is paid.
G
GAGE (Gauge of Track) – Distance between heads of rails, measured at right angles at point 5/8-inch
below top of rail, standard gage is 4 ft. 8-1/2 in., narrower gage is frequently employed by
construction/scenic areas.
GATEWAY – Point at which freight is interchanged/interlined between carriers or at which carrier joints
two operating authorities provision of through service.
GBL – Government Bill of Lading
GENERAL AVERAGE – Ancient principle in Maritime law in which all parties in a sea adventure (ship,
cargo, and freight) proportionally share losses resulting from a voluntary and successful sacrifice of part
of the ship or cargo in order to save the whole adventure from an impending peril, or extraordinary
expenses necessarily incurred for the joint benefit of ship and cargo.
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GENERAL CARGO – Term applying to ship’s loading comprising a variety of goods/articles and not
confined to a single commodity.
GONDOLA – A railcar with a flat platform and sides 3 to 5 feet high; used for top loading of items that
are long and heavy.
GOOSENECK – The front rails of the chassis that rise above the plane of the chassis and engage in the
tunnel of a container.
GRANDFATHER CLAUSE - 1) Allows individual or company that has been doing business in an area to
continue, despite new regulations that might ordinarily preclude operation; 2) used by Interstate
Commerce Commission to grant authority to carrier to operate over routes where it or a predecessor
was in bona fide operation on June 1, 1935.
GROSS WEIGHT – The combined weight of a container, its payload and any other loose internal fittings.
GROUPAGE – A consolidation service, putting small shipments into containers for shipment.
GUARANTEED FREIGHT – Railroad loans that the federal government co-assigns and guarantees.
H
HARMONIZED CODE - An internationally accepted and uniform description system for classifying goods for
customs, statistical and other purposes.
HAWB – House Air Waybill issued by carrying airlines’ agent, normally freight forwarder for the individual
consignment in a consolidated shipment.
HAZARDOUS MATERIALS – Substance/material determined and designated by Secretary of Transportation
to be capable of posing unreasonable risk to health, safety and property when transported in commerce.
HEAVY LIFTS – Freight too heavy to be handled by regular ship’s tackle.
HEAVY LIFT VESSEL – Specifically designed to be self sustaining with heavy lift cranes, to handle unusually
heavy and/or out-sized cargoes.
HIGH CUBE – Any container that exceeds 8’6" (102 inches) in height.
HIGHWAY CARRIERS – Divided into following classes; regular route (line haul), long-haul/transcontinental
carriers, regular route (line haul), short-haul carriers, irregular route carriers, specific commodity carriers,
intrastate carriers, interstate carriers and local cartage/pickup/distribution carriers.
HOPPER BARGE – A barge which loads material dumped into it by a dredger and discharges the cargo
through the bottom.
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HOPPER CARS – Railcars that permit top loading and bottom unloading of bulk commodities; some hopper
cars have permanent tops with hatches to provide protection against elements.
HUNDREDWEIGHT (CWT) – The pricing unit used in transportation; a hundredweight is equal to 100
pounds.
HUSBANDING – Term used by steamship lines, agents, or port captains who are appointed to handle all
matters in assisting the master of the vessel while in port to obtain bunkering, fresh water, food and supplies,
payroll for the crew, doctors appointments, ship repair, etc.
I
IBID – Latin term meaning "in the same place."
IMDG – International code issues by the IMO governing the maritime shipping of dangerous goods;
generally in conformance with the German GGVS regulations.
IN BOND – Storage of goods in custody of government/bonded warehouse or carrier from which goods
can be taken only upon payment of taxes/duties to appropriate government agency.
IN TRANSIT – Load proceeding along route between home terminal and destination point.
INBOUND LOGISTICS – Covers: Determining most efficient routing and scheduling, time-scheduled
component parts pick up, satellite tracking of shipment movements, bar code verification at pick up
points, supplier coordination, Material management, Returnable container control.
INCENTIVE RATE - A rate designed to induce the shipper to ship heavier volumes per shipment.
INCOTERMS – Maintained by the International Chamber of Commerce (ICC). This codification of terms is
used in foreign trade contracts to define which parties incur the costs and what specific point
INDEMNIFY – To compensate/repay for loss sustained.
INFLATABLE DUNNAGE - Flexible bags usually made from vinyl material, which can be inflated within
the void spaces of a container/trailer to prevent movement of cargo.
INHERENT VICE – An insurance term referring to any defect or other characteristics of a product which
could result in damage to the product without external cause. Insurance policies may specifically
exclude losses caused by inherent vice.
INLAND CARRIER - A Transportation line which hauls export or import traffic between ports and inland
points.
INSURANCE – Contractual relationship which exists when one party, for a consideration, agrees to
reimburse another for loss caused by designated contingencies; first party is insurer, second is insured,
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contract is insurance policy, consideration is premium property in question is risk, contingency in
question is hazard/peril.
INTEGRATED TOW BARGE - A Series of barges that are connects together to operate as one unit.
INTERCHANGE – Process of passing freight from one carrier to another between lines.
INTERCOASTAL CARRIERS – Water carriers that transport freight between the east coast and west-coast
ports usually by way of the Panama Canal.
INTERLINE FREIGHT – Freight moving from origin to destination over lines of two or more transportation
lines.
INTERMODAL TRANSPORTATION – Using more than one mode to deliver shipment, e.g., trailer on
flatcar (TOFC) or container on floater (COFC).
INVENTORY – A list of raw materials, components, work in progress, finished goods or other supplies
held in a warehouse or distribution centre.
J
JETTISON – Act of throwing cargo or equipment (jetsam) overboard when a ship is in danger.
JIT – Just In Time – The principle of production and inventory control that prescribes precise controls for
the movement of raw materials, component parts, and work-in-progress. Goods arrive when needed
(just in time) for production or use rather than becoming expensive inventory that occupies costly
warehouse space. JIT is an umbrella term including the elements of both KANBAN and MRP II systems.
JOINT RATE – Agreed upon by two or more carriers, published in a single tariff and applying between
point on line of another, may include one or more immediate carriers in route.
K
KANBAN – Japanese word, translated "visible record," for manufacturing control system in which
supplies deliver needed parts to assembly line "just in time" for use, e.g., parts not stocked; affects
purchasing materials management, inventory control and production management. Paper cards are
used for record keeping/control. Pronounced "conbon", term is primarily associated with Toyota, but
has become a generic term in the USA.
KD FLAT – An Article taken apart, folded or telescoped to reduce its bulk at least 66 2/3% below its
assembled size.
KICKBACK – Rebate, usually given to person who is in position to purchase/order transportation service
for his/her firm.
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KNOT – equivalent to one nautical mile (6,080.20 feet) per hour or 1.85 kilometers per hour.
L
LADING – The cargo carried in a transportation vehicle.
LAND BRIDGE – 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/merchandise at place of retail sale including retail
purchase price and transportation charges.
LANDING GEAR – Device that supports at end of semi-trailer when not attached to tractor.
LASH – Lighter-Aboard-Ship vessels that carry barges. They are equipped with an overhead crane
capable of lifting LASH barges and stowing them into cellular slots in athwartship position.
LAST IN, FIRST OUT (LIFO) – Accounting method of valuing inventory that assumes latest goods
purchased are first goods used during accounting period, opposite of first in, first out (FIFO).
LAY TIME – Period of time in which ship is loaded/unloaded and for which no demurrage is charged.
LAZARETTO – Quarantined area for fumigating goods that might be carrying insects/dangerous germs.
LCL – Less than carload; term refers to load weighing less than amount necessary to apply carload rate
charged by railroads for transportation.
LD3 – Lower deck type 3 container. This is the most commonly used container in passenger aircraft.
LEAD TIME – the total elapse time between order placement and order receipt. Includes time required
for order transmittal, order processing, and preparation, as well as time in transit.
LEGAL WEIGHT – Weight of goods and interior packing, but not the container’s weight (term used
commonly in foreign trade). A maximum weight limitation for a total highway unit; this maximum is
established by highway authorities, which, if exceeded, may subject carriers to fines or impounding of
vehicles.
LESSEE – Party, firm or corporation with legal possession/control of vehicle (with/without) driver or
other equipment owned by another under terms of lease agreement.
LESSOR – Party, firm or corporation granting legal use of vehicle (with/without) driver or other
equipment to another party under the terms of lease agreement.
LETTER OF CREDIT (L/C) – Method of payment for good in which buyer establishes credit with local
bank, clearly describing goods to be purchased, price, documentation required and time limit for
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completion of transaction; upon receipt of documentation, bank is either paid by buyer or takes title to
goods and transfers funds to seller, may be revocable or irrevocable.
LIFT-ON/LIFT-OFF – Carriage of containers on decks or on flat racks of water vessels.
LIGHTER – Flat-bottomed boat, usually moved by tugs but can also be steam powered, used to transfer
freight between cars, piers and vessels.
LINEHAUL – Movement of freight between cities, usually more than 1,000 miles, not including pickup
and delivery service.
LINER – Ocean vessel engaged in carriage of general cargo (including passengers) along definite route
on fixed schedule.
LINER SERVICE – International Water carriers that ply fixed routes on published schedules.
LIVE AXLE – Axle driven by engine as compared to dead axle that only follows as pulled.
LLOYD’S REGISTER – Yearly document issued by Lloyd’s containing tonnage, age, build, character and
condition of registered ships.
LOAD DISPLACEMENT – Vessel’s load capacity according to structure displacement.
LOADING LINE – Guide on ship indicating to what depth it has sunk with lading, serves as safety factor.
LONG TON – Equivalent to 2,240 pounds or 20 long hundred weights, also called gross ton.
LONGSHOREMAN – Person employed on wharves of port to load/unload vessels.
LOSS AND DAMAGE (L&D) – Usually applied when loss/damage is discovered when package is delivered.
LTL – Less than truckload; term refers to less than quantity of freight required to apply truckload (TL)
rate charged by motor carriers for transportation. A shipment weighing less than the minimum weight
needed to use the lower truckload rate.
LUFFING – Angular movement of crane in vertical plane.
LWR – Most commonly used type of pallet at lower deck of passenger aircraft and full cargo freighter.
M
MAJOR CARRIER – A for-hire certificated air carrier with annual operating revenues of $1 billion or
more; carrier usually operates between major traffic centers.
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MAIN DECK – the deck on which the major portion of payload is carried, normally known as Upper Deck
of an airplane.
MANDAMUS – Writ issued y court requiring specific actions to be taken.
MANIFEST – 1) Document signed by master of ship setting forth description/destination of goods
shipped; 2) listing of shipments in load by pro number/consignee/destination/weight.
MARINE REGISTRY - Listing vessel under name of nation whose flag it flies; ship owners often register
under most favorable/lenient flags.
MARGINAL COST – The cost to produce one additional unit of output; the change in total variable cost
resulting from a one-unit change in output.
MARITIME ADMINISTRATION - AN U.S. Government agency that promotes the merchant marine,
determines ocean ship routes and services equipment, and awards maritime subsidies.
MAXIMUM CUBE – A level of cube utilization that closely approximates the stated cubic capacity of a
container.
MAXIMUM GROSS WEIGHT – Weight of container and its payload.
METRIC TON – Measure of weight equal to 1,000 kilograms, or about 2,200 pounds, symbols is it, also
called tonne.
MICROBRIDGE – Provides for intermodal transport of freight from inland city to seaport with through
movement transfer of container freight onto overseas ship.
MORTAGE – Conveyance of property, real or personal, to person called mortgagee to secure
performance of some act such as payment of money by mortgagor becomes void upon performance of
act.
MOTOR COMMON CARRIER – Entity holding itself out to general public to provide motor vehicle
transportation for compensation over regular or irregular routes, or both.
MRP II –Manufacturing Resource Planning-System of manufacturing controls using computers; as in
Kanban systems affect purchasing materials management, inventory control and production
management – as well as peripheral manufacturing activities (older meaning of MRP is "materials
requirements planning," Roman numeral II was added to flag change.
MULE – 1) Small vehicle used for moving two-axle dollies; 2) yard tractor or hostler.
MULTIMODAL – Using more than one mode of transportation to move load of goods, e.g., truck, train,
ship, usually for imported/exported goods.
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N
NOI – Not otherwise indexed.
NEGLIGENCE – Failure to exercise degree of care demanded by law.
NESTING – Fitting one article of cargo inside the other to economize space.
NET – Figures/totals remaining after all charges/deductions have been subtracted.
NET TARE WEIGHT – The weight of an empty container plus any fixtures permanently attached.
NET TON – 2,000 pounds.
NET TON-MILE – Movement of ton of freight one mile.
NET TONNAGE (Vessel) – Gross tonnage minus deductions for space occupied by crew quarters, machinery
for navigation, engine room and fuel.
NET WEIGHT – 1) Weight of article without packing and container; 2) weight of entire contents of vehicle.
NODE – A fixed point in a firm’s logistics system where goods come to rest; plants, warehouses, supply
sources, market destination.
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.
NOSE – Front of the container.
NOTICE OF ARRIVAL – On arrival of freight at destination, notice is promptly sent to consignee showing
number of packages, description of articles, route, rate, weight, car initial and number, amount of freight
charges’ station where delivery will be made and time allowed for removal before demurrage/storage
charges accrue.
NOTIFY PARTY – The name of an organization that should be notified when a shipment reaches its
destination.
O
OS & D – Over, Short and Damaged; report issued at warehouse when goods are damaged, used to file
claim with carrier.
OCEAN BILL OF LADING – Issued by ocean carrier for marine transport of goods; provides terms of
carrier between shipper/forwarder and carrier between stated points and for specific charge.
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OFF ROUTE POINTS – Points located off regular route highways of line-haul carriers, generally served
only on irregular schedules.
ON THE BERTH – Term denoting that ship is ready to load/discharge cargo.
OPEN ACCOUNT (O/A) – Manner of supplying credit by charging goods/services to purchaser’s account,
payment for which is made at future date.
OPEN-END LEASE – Lessee guarantee lessor will realize minimum of value from sale of equipment at end
of lease period.
OPEN INSURANCE POLICY – Form of insurance covering shipments for specified time or stated value
and not limited to single shipment, most often used in marine insurance.
OPEN POLICY – A cargo policy with no expiration date that provides automatic coverage of cargo to and
from an Assured in a specified trade at agreed rates, terms, and conditions. Usually consists of separate
Marine and War policies.
OPEN TOP CONTAINER – A container fitted with a solid removable roof, or with a tarpaulin roof so the
container can be loaded from the top.
OPERATING AUTHORITY – Routes, points and types of traffic that may be served by carrier, authority is
granted by state of federal regulatory agencies.
OPERATING RATIO – Comparison of carrier’s operating expenses with gross receipts; income divided by
expenses.
OPTICAL CHARACTER RECOGNITION (OCR) – Reading of data scanning location or shape of data on
document.
OPTIMUM CUBE – The highest level of cube utilization that can be achieved when loading cargo into an
ocean-freight container.
ORDER BILL OF LADING – Contains four distinguishing features: 1) goods are consigned to order of party
named in bill of lading; 2) name and post office address of party to notify on arrival of consignment at
destination must always be written on bill; 3) negotiable document most frequently used when shippers
wish to collect for value of shipments prior to delivery; 4) printed on yellow paper to make it readily
distinguishable.
ORDINARY LIVESTOCK – Defined in Interstate Commerce Act as "all cattle, swine, sheep, goats, horses
and mules, except such as are chiefly valuable for breeding, racing, show purposes and other special
uses."
OUTAGE – Empty space in container/drum to accommodate natural expansion, density change, etc.,
due to temperature change.
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OVERAGE – Freight in excess over quantity believed to have been shipped, or more than quantity shown
on shipping document.
OVERHEIGHT CARGO – Cargo stowed in an open-top container that projects above the uppermost level
of the roof struts.
OVER-THE-ROAD – A motor carrier operation that reflects long distance, inter-city moves; the opposite
of local operations.
OWNER-OPERATOR – Driver who owns and operates his own truck; he may be a common carrier,
contract carrier, or exempt carrier; such contractor may lease rig/driver to another carrier.
OWNER’S RISK – When owner of goods remains responsible during shipping, relieving carrier of part of
risk.
OXIDIZING MATERIAL – As defined in the Hazardous Materials Regulations in 49 CFT any substance that
yields oxygen readily to stimulate combustion of organic matter.
P
PACKING LIST – List showing merchandise packed and all particulars, normally prepared by shipper but
not necessarily required by carriers; copy is usually sent to consignee to assist in verifying shipment
received.
PALLET – 1) Load board with two decks separated by bearers or single deck supported by bearer
constructed for transport/stacking and with overall height reduced to minimum compatible with
handling by forklift/pallet trucks; 2) platform used for utilizing loads for storage/shipping, standard
pallet is 48x40x5-1/2 inches usually made of wood.
PALLETIZATION – System for shipping goods on comparatively lightweight, double-decked wooden
platform called pallets; permits shipment of multiple units as one large unit.
PAYLOAD – In freight transportation, profitable cargo.
PER DIEM – 1) Latin term meaning "by the day"; 2) daily charge by rail carriers for use of railcars by any
other rail carriers.
PERFORMANCE BOND – Bond executed in connection with contract securing performance/fulfillment of
terms.
PERISHABLE FREIGHT – Commodities subject to rapid deterioration or decay (fresh fruits and
vegetables, dairy products, meats, fish) which require special protective services in transit like
refrigeration, heating, and ventilation.
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PERMITS – Authority granted by ICC to contract carriers by motor vehicle or water and freight
forwarders to operate in interstate commerce.
PHYSICAL DISTRIBUTION – Broad range of activities involving efficient range of activities involving
efficient movement of goods from source of raw materials through production to consumer; activities
include warehousing, material handling, packaging, order possessing, freight transportation and other
activities.
PIER – The structure to which a vessel is secured for the purpose of loading and unloading cargo.
PIER-TO-HOUSE – A shipment loaded into a container at the pier or terminal then exported strictly to
the consignee’s designated area for unloading.
PIER-TO-PIER – Containers loaded at port-of-loading and discharged at port-of-destination.
PIGGYBACK – Intermodal transportation system where trailers/containers are carried on railcars;
essentially joint carrier movement in which motor carrier performs pickup/delivery operation to rail
terminal, as well as delivery operation at terminating railhead.
PIGTAIL – Slang term used for cable used to transmit electrical power to trailer.
PILFERAGE – Taking property of others; in transportation, usually consists of breaking into
cartons/containers and removing items.
PILOT – Person whose duty is to steer ships, particularly along coasts or into/out of harbor.
PLACE UTILITY – A value created in a product by changing its location. Transportation creates place
utility.
PLIMSOLL LINE – statutory load line on a vessel identifying displacement mark as to where a vessel may
safely be loaded to. A horizontal line painted on the outside of the ship that must remain above the
surface of the water.
POINT OF ORIGIN – Station at which shipment is received from shipper by transportation line.
POISONS – As defined in Hazardous Materials Regulations in 49 CFR, these materials are further divided
into two groups based on degree of hazard posed in transportation. Poison A includes gasses or liquids
that are dangerous to life if only a small amount is mixed with air. Poison B includes substances, liquid
and solid (pastes and semi-solids also) which are known to be toxic to man that they provide a health
hazard during transportation. See also Irritating Material.
POOL – A continuous supply of containers at a specific location to facilitate continuous volume loading.
POOLING AGREEMENT – Dividing of revenue/business among two or more carriers in accordance with
previous contracts/agreements.
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PORT – A harbor or haven where ships may anchor, or that side of the vessel on the left hand of a
person who stands on board facing the bow (front) of the vessel.
PORT AUTHORITY – A state or local government that owns, operates or otherwise provides wharf, dock
and other terminal investments at ports.
PORT CHARGES – Charges assessed for services performed at ports, including lighterage, pilotage,
towage, harbor dues, dockage and wharfage.
PREDATORY PRICING – Temporary pricing action by one firm to point below variable costs that has
effect of removing competing firm from market.
PRIVATE CARRIER – A carrier that provides transportation service to the firm that owns or leases the
vehicles and does not charge a fee. Private motor carriers may haul for a fee for wholly owned
subsidiaries.
PRO FORMA INVOICE – Document used largely for banking purposes, abbreviated invoice sent in
advance of shipment, usually to enable buyer to obtain import permit, exchange permit or both.
PRO NUMBER – Any progressive or serial number applied for identification to freight bills, bills of lading,
etc.
PRODUCT LIABILITY – Liability imposed for damages caused by accident and arising out of
goods/products manufactured, sold, handled or distributed by insured or others trading under his name.
PROOF OF LIABILITY – Copy of waybill signed by consignee at time of delivery as receipt.
PROPORTIONAL RATE – 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 o anyone desiring it; there are five types: 1) ordinary
or merchandise; 2) commodity; 3) household goods; 4) cold storage; 5) field or branch; some states
regard public warehouses as public utilities and fix their rates.
PURCHASE ORDER – Form used by purchaser when placing order for merchandise or supplies.
Q
QUALITY CIRCLES – Groups of workers formed to improve quality and productivity, usually task/oriented
with voluntary participation.
QUALITY CONTROL – the management function that attempts to ensure that the goods or services
manufactured or purchased meet the product or service specifications.
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QUARANTINE – A restraint place on an operation to protect the public against health hazard.
QUAY – Manmade docking area for loading/unloading vessels, docking is parallel allowing loading/
unloading from one side of ship.
QUOIN – A wedged-shaped piece of timber used to secure barrels, preventing movement during transit.
QUOTA – The quality of goods of a specific type that may be imported without restriction or the
imposition of additional duties. Sometimes importing countries require issuance of licenses before U.S.
companies may ship to them.
R
RADIOACTIVE MATERIAL – As defined in Hazardous Materials Regulations in 49 CFR, any material or
combination of materials which spontaneously emits ionizing radiation and has a specific gravity greater
than 0.002 microcuries per gram. The regulations include many more specific designations of
radioactivity.
RAIL CARRIER – An enterprise that offers service via rail carriage.
RAIL FREIGHT – The transportation of goods by rail.
RATE - Established shipping charge for movement of goods in interstate transportation price/rate is
approved by Interstate Commerce Commission, intrastate 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.
REASONABLE RATE – A rate that is high enough to cover the carrier’s cost but not too high to enable
carrier to realize monopolistic profits.
REBATE - Unlawful practice in the USA whereby a carrier returns part of the transportation charges to
the shipper in order to encourage the shipper to use the same carrier again.
RE-INSURANCE – Insurance of all/part of risk by another insurer, previously assumed by an insurance
company.
RECIPROCITY – 1) An exchange of rights, in motor transportation may involve granting equal rights,
vehicles of several states in which reciprocity agreements are in effect; 2) to give performance in buying
to vendors who are customers of buying company.
REEFER – Slang term for refrigerated trailer for hauling perishables, sometimes used in reference to
other types of transportation equipment, e.g., reefer car referring to railcar with refrigeration
equipment.
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REGISTER OF SHIPS – Vessel must be registered in merchant marine of some country after inspection,
rating, measurement, etc.; this register kept by collector of customs, contains names, ownership and
other facts relative to vessels.
REGULAR-ROUTE CARRIER – A motor carrier that is authorized to provide service over designated
routes.
RELAY DRIVING – In LTL shipments, a driver only takes a portion of the way, usually for the duration of
one shift (eight to ten hours). The driver then turns the truck over to another driver to continue the trip.
RELAY TERMINAL – A motor-carrier terminal designed to facilitate the substitution of one driver for
another who has driven the maximum hours permitted.
RELIABILITY – A carrier-selection criterion that considers the variation in carrier-transit time; the
consistency of the transit time provided.
REPARATION ORDER – Redress in form of adjustment/reimbursement on account of
unjust/unreasonable charge assessed after situation has been proved to Interstate Commerce
Commission.
REPLEVIN – Legal action instituted to recover possessions of property unlawfully taken or detained; this
recovery would be accomplished through court action.
RESTRICTED ARTICLES – Commodities that can be handled only under certain specific conditions.
RETALIATION – action taken by a country to restrain its imports from another country that has increased
a tariff or imposed other measures that adversely affects the first’s country’s exports.
RETARDATION – A force causing container and cargo to move fore, aft and upward.
RETROACTIVE – Application of law, rule, tariff provision, etc., to time before law/rule became effective.
RISK – 1) Term usually applied to insurance as a measurement of probability of loss; 2) degree to which
investor exposes himself to possibility of loss of money.
ROLLING – The side to side (athwartship) motion of a vessel.
ROLLING STOCK – Freight/passenger cars owned by rail carrier, not including motive power equipment;
also buses, trucks and trailers owned by motor carriers.
ROLL-ON/ROLL-OFF (RO/RO) – Feature in specially constructed vessel permitting vehicles to drive
on/off 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.
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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 FTL and FCL
shipments.
RUNNING GEAR – Complementary equipment for terminal and over-the-road handling of containers.
S
SAID TO CONTAIN – In this case of containerized cargo, or of palletized consignments or large
consignments of conventional cargo, the cargo cannot check the statements made by the shipper as to
contents. By using the statement “said to contain” the carrier places responsibility for the correct
description of contents on the shipper.
SALVAGE – Rescue of goods from loss at sea or by fire; also, goods so saved or payment made or due for
their rescue.
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.
SANCTION – An embargo imposed by a Government against another country.
SCALE OF RATES – Numerous rates adjusted in relation to each other.
SCOW – Hollow/flat-bottomed boat used for transporting gravel, sand and similar bulk commodities.
SEA-BEE VESSEL – Ocean vessel constructed with heavy-duty submersible hydraulic-lift or elevator
system located at the stern of the vessel. The See-Bee system moves barges from one inland coastal
water system to another; Sea-Bee barges are larger than LASH barges.
SEAL – Device applied to freight car/motor vehicle door fastening which shows that door fastening
where it’s applied has not been tampered with between time of application and time of breaking seal.
SEAWORTHINESS – Sufficiency of vessel in materials, construction, equipment, officers and crew for
voyage/ service where employed; an implied condition of all policies of marine insurance unless
otherwise specifically stipulated.
SECTOR – Distance between two ground points within a route.
SELF-INSURANCE – Assumption of risk without insurance coverage through systematic provision of
funds to provide for loss which individual/firm may suffer.
SEMI – Slang term for semi-trailer, also used loosely in referring to tractor-trailer combination.
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SHIP AGENT – A liner company or tramp ship operator representative who facilitates ship arrival,
clearance, loading/unloading, and fee payment while at a specific port.
SHIP BROKER – A firm that serves as a go-between for the tramp ship owner and the chartering
consignor or consignee.
SHIP CHANDLER – One who furnishes everything necessary to equip vessel.
SHIPPER’S AGENT - A firm that acts primarily to match up small shipments, especially single-traffic
piggyback loads to permit use of twin-trailer piggyback rates.
SHIP’S PAPERS – Merchant vessel is required to carry these documents: 1) register; 2) log book; 3)
charter party, if chartered; 4) muster roll or list of crew; 5) ship’s articles; 6) bill of health; 7) bill of lading
or duplicate receipts of cargo from master to shippers; 8) manifest or general statement of cargo; 9)
invoices or detailed statements of cost of goods; 10) clearance or permission from authorities to sail; 11)
certificate of inspection; 12) passenger list of passengers are carried; 13) bill of sale (ship has been sold
by citizens of one country to citizens of another together with consular certificate; 14) officer’s licenses
and; 15) license to carry on port trade.
SHIPMENT – 1) Lot of freight tendered to carry by one consignee at one place at one time for delivery to
the 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 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.
SHIPPER’S EXPORT DECLARATION (SED) – Form required by Treasury Department and completed by
shipper showing value, weight, consignee, destination, etc., export of shipments as well as Schedule B
identification.
SHORT SHIPMENT – Piece of freight missing from shipment. Cargo received is less than what is
stipulated by documents on hand.
SIGHT DRAFT – Sight draft, COD international trade, usually calls for release of bills of lading and all
other documents making up commercial to set buyer against cash payments to collecting bank.
SKIDS – Battens or a series of parallel runners fitted beneath boxes or packages to raise them clear of
the floor to permit easy access of forklift blades or other handling equipment.
SKIFF – A small, hand –propelled rowboat. Sometimes called a “yawl”.
SLIDING TANDEM – An assembly rigged on a chassis that may be shifted to adjust axle weights.
SLING – A wire or rope contrivance placed around cargo and used to load or discharge it to/from a
vessel.
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SLURRY – Dry commodities that are made into a liquid form by the addition of water or other fluids to
permit pumping through pipelines.
SPOTTING – Placing a railcar to be loaded/unloaded.
SPREADER – Device for spreading lifting cables on frame to provide balanced lift on four corners of
container allowing load to be lifted straight up.
STANDARD INTERNATIONAL TRADE CLASSIFICATION (SITC) – Numerical code developed by United
Nations and adopted by United States airlines as basis for numerical identification of commodities
moving in air freight.
STARBOARD – Right side of ship.
STATUTORY NOTICE – Length of time required by law for carriers to give notice of changes in tariffs,
rates, rules and regulations – usually thirty day, unless otherwise permitted by authority from Interstate
Commerce Commission or other regulatory body.
STEAMSHIP CONFERENCES – Collective rate-making bodies for liner water carriers.
STERN – The end of a vessel, opposite of bow.
STEVEDORE – Person having charge of loading/unloading of ships.
STOW – To arrange in compact mass, e.g., stow cargo in hold of ship.
STRADDLE CARRIER – Mobile truck equipment with the capacity for lifting a container within its own
framework.
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.
STRIPPING – In truck transportation, emptying truck of cargo and arranging shipments by destination.
STUFFING – Slang term for loading cargo container.
SUBROGATION – Right of an insurance company to recover amount paid to insured from third party
that may have caused loss.
SUBSIDY – An economic benefit granted by a government to producers of goods or services, often to
strengthen their competitive position.
SURCHARGE – An add-on charge to the applicable charges; motor carriers have a fuel surcharge and
railroads can apply a surcharge to any joint rate that does not yield 110 percent of variable cost.
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SURETY BOND – Contract between principal and responsible third party (surety) which makes surety
momentarily responsible for principal’s fulfillment of obligation to obligee (party who is protected).
SYSTEMS CONCEPT – A decision-making strategy that emphasizes overall efficiency of the whole rather
than the efficiency of the individual parts of the system.
T
TANDEM – A truck that has two drive-axles or a trailer that has two axles.
TANK – A structure used for the storage of fluids.
TANK BARGE - A large, flat-bottomed, non-self propelled, compartmented, decked-over barge used for
all types of liquid cargo (petroleum, molasses, chemicals, etc.)
TANK CARS – Railcars designed to haul bulk liquid or gas commodities.
TANKTAINER – Tank built into standard frame and used to transport liquids.
TAPERING RATE – A rate that increases with distances but not in direct proportion to the distance the
commodity is shipped.
TARE – Amount of gross weight that can be deducted from packing weight, usually allowance is four
pounds per 104 pounds.
TARE WEIGHT – 1) Weight of container and material used for packaging; 2) in transportation terms,
weight of car/truck exclusive of contents.
TARIFF (Transportation) - Printed price list issued by carrier showing transportation charges.
TEMPORARY AUTHORITY – The Interstate Commerce Commission may grant a temporary operating
authority as a common carrier for up to 270 days.
TENDER – Offer of goods for transportation by shipper or offer of delivery on part of carrier.
TERMINAL – An assigned area in which containers are prepared to be loaded into a vessel or are stacked
immediately after discharge from the vessel; any assigned area for the loading/unloading temporary
storage of vehicles, or the interchange of freight during transit.
TEU – Twenty-foot equivalent unit (6.10 m). A standard unit for counting containers of various lengths
and for describing the capacities of container ships or terminals. One standard 40-foot, ISOS series 1
container equals 2 TEU’s.
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THROUGH BILL OF LADING – Covers goods, moving from point of origin to final destination, even though
transfers are made to different carriers in transit.
THROUGHPUT – A warehousing output measure that considers the volume (weight, number of units) of
items stored during a given time period.
TIME DRAFT – Draft maturing at certain fixed time after presentation/acceptance.
TIME UTILITY – A value created in a product by having the product available at a time desired;
transportation and warehousing create time utility.
TITLE – Document which confers on holder right of ownership/possess/transfer of merchandise
specified, e.g., bills of lading and warehouse receipts.
TOFC – Trailer-on-flatcar, also called piggyback, shipments moving TOFC receive special rates from tariffs
providing for that class or tariff.
TON – Long ton, 2,240 pounds; short ton, 2,000 pounds; metric ton, 2,206.6 pounds.
TONNAGE – 1) Carrying capacity of ship/vessel; 2) tax/duty paid on such capacity; 3) weight ship will
carry expressed in tons.
TORT – Wrong, other than breach of contract, committed upon person/property of another.
TRACING – Determine where a shipment is during the course of a move.
TRAFFIC – Department/division responsible for obtaining most economical commodity classification and
method of transporting materials and products; people and/or property carried by transportation
companies.
TRAFFIC MANAGEMENT – The management of activities associated with buying and controlling
transportation services for a shipper or consignee or both.
TRAMP – Vessel that does not operate along definite route on fixed schedule, but calls at any port
where cargo is available.
TRANSIT TIME – The total time that elapses from pickup to delivery of a shipment.
TRANSLOADING – The practice of breaking (transferring) bulk shipments from the vehicle/container of
one mode to that of another at one or a series of terminal interchange points. Usually transloading
involves transporting a continuous volume of similar products, creating a rolling (in-transit) inventory of
the products.
TRANSSHIP – Term commonly used to denote transfer of goods from one means of transportation to
another, rehandling of goods enroute.
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TRIP CHARTER – Hiring vessel to haul cargo for special voyage.
TRUCKLOAD - Truckload rates apply where the tariff shows a truckload minimum weight. Charges will be
at the truckload minimum weight unless weight is higher.
TUG – A small but powerful vessel designed for moving larger vessels or for towing barges. Also called
“towboat” or “pushboat”.
TWIST LOCKS – A set of four, twistable bayonet-type, shear keys used as part of a spreader to pick up a
container or as part of a chassis to secure containers.
U
UBIQUITY – A raw material that is found at all locations.
UCC – Uniform Commercial Code
ULD (UNIT LOAD DEVICE) – Term commonly used when referring to containers and pallets. Any type of
container, container with integral pallet, aircraft container or aircraft pallet.
ULLAGE – Empty space present when cask/container is not full.
UNCLEAN BILL OF LADING – A bill containing reservations as to the good order and condition of the
goods, or the packaging, or both.
UNIT TRAIN – An entire, uninterrupted locomotive-car-and-caboose movement between an origin and
destination; rail movement of large tonnages of single-bulk products between two points.
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.
UTILIZATION – The consolidation of a quantity of individual items into one large shipping unit for easier
handling; loading one or more large items of cargo onto a single piece of equipment such as a pallet.
V
VALUE ADDED TAX – (VAT) Government imposed taxation on import cargo.
VALUE-OF-SERVICE-PRICING – Pricing according to the value of the product being transported; third
degree price of discrimination; demand-oriented pricing, charges what the traffic will bear.
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VALUATION ACTUAL – Actual value of goods shown on bill of lading by shipper when rate to be applied
depends on value.
VANNING – A term sometimes used for stowing cargo in a container.
VARIABLE COST – A cost that fluctuates with the volume of business.
VENDOR – A firm or individual that supplies goods or services; the seller.
VESSEL – Generally, craft used or intended to be used as means of transportation by water.
VESSEL TON – 100 cubic feet.
VOLATILITY – 1) Ability of liquid to vaporize; 2) Explosivity.
VOYAGE CHARTER – Engaging services of ship (cargo) for specified trip from one port to another at
established tonnage rate.
W
WAIVER – 1) Written statement canceling previous claim/right, usually refers to only one person or specific
situation; 2) intentionally forfeiting a right
WAREHOUSE – Place for receiving/storing goods and merchandise for-hire warehouseman is bound to use
ordinary diligence in preserving goods.
WARRANTY – The written guarantee issued with new motor vehicles or related equipment. It defines the
manufacturer’s responsibility for the repair or replacement of defective parts and other services provided as
part of the purchase price. A warranty can be nullified if the user does not follow certain stipulations of the
manufacturer, such as preventive maintenance.
WASTAGE – Loss of goods due to handling, decay, leakage, shrinkage, etc.
WAYBILL (WB) - Document containing description of goods that are part of common carrier freight
shipment, also shows origin, destination, consignee/consignor and amount charged; copies travel with goods
and are retained by carrier for internal record and control, especially during transit; not a transportation
contract.
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 BREAK – The shipment volume at which the LTL charges equal to TL charges at the minimum
weight.
WEIGHT 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 compliance with their weight limits; also often combined with port of entry facilities.
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WHARF – Loading/discharging terminal built parallel to stream/shore line.
WHARFAGE – 1) Charges made for handling traffic on wharf; 2) charge made for docking vessels at wharf.
WHEELBASE – The distance from the center line of the front axle to the center line of the rear axle.
WITHOUT RECOURSE – When drafts are negotiated without recourse, beneficiary is relieved of
responsibility to holder of draft to extent permissible under contract involved and under law governing
transaction.
WRECK – A wreck vessel, either submerged or visible , which is attached to or foul of the bottom or cast up
on the shore.
WRECKAGE – An area identified as a danger to maritime navigation containing the ruined remains of one ot
more vessels.
X
X HEAVY – Extra Heavy
X STRONG – Extra Strong
XX HEAVY – Double Extra Heavy
XX STRONG – Double Extra Strong
Y
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.
YARD CABOOSE – A caboose that is used exclusively in a single yard area.
YARD MULE – Small tractor used to move semitrailers around the terminal yard.
YARD TRACTOR – A truck tractor used exclusively to move trailers around the a motor or trailer yard. It is
not used for over the road vessel.
YARDAGE – Livestock shipped to stockyards is subject to yardage charges in addition to transportation and
other charges, usually assessed on basis of so much per head, varying in amount according to type of
livestock.
Z
ZEPHYR HAUL – A shipment of light weight cargo.
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ZIP CODE – A numerical code, established by the US Postal Service, used for the purpose of routing and to
identify delivery zones. Some carriers apply this code for freight in the same manner.
ZONE – Any one of a number of sections or districts of the United States used for the purpose of establishing
proper rates for parcels, mail, and pickup/delivery.
ZONE CHARGE – An extra fee charged for crossing a predetermined boundary.
ZONE OF REASONABLENESS – A zone or limit within which air carriers are permitted to change rates
without regulatory scrutiny; if the rate change is within the zone, the new rate is presumed to be reasonable.
ZONE-OF-TRADE FLEXIBILITY – Railroads are permitted to raise rates by a percentage increased in the
railroad cost index determined by the ICC; rates may be raised by 4 percent.
ZULU TIME – Time based on Greenwich Mean Time.
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