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GLOSSARY |
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A B
C D E F
G H I J
K L M ABANDONMENT
ABSOLUTE LIABILITYCondition in which a carrier is responsible for all liability and is not protected by normal exemptions found in a bill of lading or common law liability. ACCEPTANCE
ACCESSORIAL CHARGESCharges for supplementary services and privileges (ACCESSORIAL SERVICES) provided in connection with line-haul transportation of goods. These charges are not included in the freight charge and usually take the form of a flat fee. Some examples are: pickup/delivery, in-transit privileges, demurrage, switching, loading/unloading. ACCESSORIAL SERVICEA service rendered by a carrier in addition to regular transportation service. AD VALOREMA Latin phrase meaning "according to value." Freight rates set at a certain fixed percentage of the value of articles are known as ad valorem rates. ADVANCED CHARGEFreight or charge on a shipment that is advanced by one transportation company to another, or to the shipper, to be collected from the consignee. ADVICE OF SHIPMENTNotice to local or foreign buyer that shipment has occurred, with packing and routing details. A copy of invoice usually is enclosed, and sometimes a copy of the bill of lading. ALL-COMMODITY RATEUsually a carload/truckload rate that applies to multiple shipments that move at one time in one vehicle from the consignor to one consignee. An all-commodity rate is established based on actual transportation cost rather than "value of service." ALLOWANCEDeduction from the weight or value of goods. Allowed if a carrier fails to provide necessary equipment and that equipment is furnished by the shipper. ALONGSIDEPoint of delivery beside a vessel; statement designating where the title to goods passes from one party to another. ALTERNATE ROUTINGRouting that is less desirable than the normal, but results in identical terms. ARBITRARY
ARRIVAL NOTICEA notice, furnished to consignee, of the arrival of freight. ASTRAY FREIGHTFreight that has been separated from its freight bill. AUTHORITYOperating rights granted a motor carrier by the ICC. AUTHORIZED CARRIER
BACK HAUL
BARRELL WHEELER OR BARREL TRUCKA dolly-like hand truck designed specifically to move drums or barrels. BASING POINTGeographic point to which transportation rates are set so that rates to adjacent points can be constructed by adding to/deducting from the basing point rate. BILL OF LADING (BL or B/L)The principal transportation document by which a carrier acknowledges receipt of freight, describes the freight, and sets forth a contract of carriage. Terms and conditions, responsibilities, and liabilities vary with manner and place of use. Bills of lading may be negotiable or non-negotiable. BILLED WEIGHTThe weight shown on a freight bill. BIRDYBACKMoving highway freight by air. BLIND SIDERight side of truck and trailer. BLOCKINGWood or metal supports to keep shipments in place in trailers. BOB TAILTractor operating without a trailer. BOGEYA two-axle assembly at the rear of some trailers or tractors. Also called a tandem axle. BONDED WAREHOUSE
BOTTOM FREIGHTHeavy freight that must be loaded on the trailer floor and not on top of other merchandise. BOX
BRACINGSee BLOCKING. BREAK BULK
BREAKDOWN TIMEA type of penalty pay which is incurred when equipment breaks down. BROKER
BULK CARRIERVessel that carries bulk commodities such as petroleum, grain, or ore, which are not packaged, bundled, bottled, or otherwise packed. BULK FREIGHTFreight not in packages or containers such as wheat, petroleum, etc. BULKHEAD
BUYER’S RIGHT TO ROUTEWhen a seller does not pay freight charges, the purchaser has a right to designate the route for shipment. Seller is responsible for following the buyer’s instructions. Complete routing is permitted for rail shipments, but only for the first carrier in motor shipments. CABDriver’s compartment of a truck or tractor. CAB-OVERTruck or tractor with a substantial part of the driving cab located over the engine. CABLE SEALA heavy steel cable used to secure closed trailer doors. It can only be removed with heavy duty cable cutters. CAPACITY LOAD
CARLOAD (CL or C/L)
CARRIERAn individual, partnership or company in the business of transporting goods or passengers, in most cases for a fee. CARTA four wheeled platform used to move several pieces of freight across the dock at one time. CARTAGE
CASE MARKInformation shown on the outside of a shipping carton, including destination and contents. CASH BEFORE DELIVERY (CBD)Seller assumes no risk and extends no credit because payment is received before shipment. CASH ON DELIVERY (COD)Buyer pays carrier the price of goods before they are delivered; seller assumes risk of purchaser refusing to accept goods. CERTIFICATE OF MANUFACTUREDocument used with letters of credit when drafts are paid/negotiated on presentation of a certificate stating that goods have been completed and are being held for shipment. CHOCKA wooden, metal, or rubber wedge used to block the wheels of a trailer at the dock. Also used in trailers to keep floor freight from shifting. CLAIM
CLASS RATEThe rate charged for commodities grouped according to similar shipping characteristics. Class Rate applies to numbered/lettered groups/classes of articles contained in the territorial rating column in classification schedules. CO-LOADTwo shipments from different terminals combined to ship as one load. COLLECT SHIPMENTShipment where collection of freight charges/advances is made by delivering carrier from the consignee/receiver. COMBINATIONTruck or tractor coupled to one or more trailers (including semi-trailers). COMMERCIAL INVOICEItemized list issued by seller/exporter in foreign trade showing quantity, quality, description of goods, price, terms of sale, marks/numbers, weight, full name/address of purchaser, and date. COMMODITYAny article of commerce. Goods, merchandise. COMMODITY, EXEMPTOne that may be transported in interstate commerce without operating authority or published rates. COMMODITY RATE
COMMON CARRIERAny carrier engaged in the interstate transportation of persons/property on a regular schedule at published rates, and whose services are available to the general public on a for-hire basis. Regulated by the ICC. CONCEALED DAMAGEWhen goods in an apparently undamaged container are damaged. CONCURRENCEDocument signed by carrier and filed with the ICC. Verifies carrier participates in rates published in a tariff by a given agent. CONNECTING CARRIERA carrier that originates or completes transportation of a shipment, but does not haul it the entire distance from origin to destination. CONSIGNSend goods to a purchaser or an agent to sell. CONSIGNEEAny person who receives goods shipped from an owner. CONSIGNORAny person or company that ships articles to customers. CONSOLIDATIONCombining less-than-carload or less-than-truckload shipments to make carload/truckload movements. CONTAINERIZATION
CONTRACT CARRIERAny carrier engaged in interstate transportation of persons/property by motor vehicle on a for-hire basis, but under continuing contract with one or a limited number of customers to meet specific needs of each customer. Contract Carriers must receive an authorization permit from the ICC. CONTRACT RATESRates which are part of a total contract negotiated between shipper and a carrier. CONVENTIONALTractor with the engine in front of the cab. COST, INSURANCE, AND FREIGHT (CIF)The basis for quotation by seller that indicates seller will pay insurance and freight charges to destination only. CROSS DOCKTransfer of freight from one trailer to another at a terminal. CUBE RATEA rate based on trailer space instead of weight. Used for light, bulky loads. CUSTOMS BROKERA specialist in customs procedures who acts on behalf of importers for a fee. Licensed by the Treasury Department. CUSTOMS TARIFF
DEAD AXLENon-powered rear axle on tandem truck or tractor (also called "tag axle"). DEAD WEIGHT TONNAGE (DWT)Estimated number of tons of cargo a vessel can carry when loaded to maximum depth. DEADHEAD
DECLARED VALUE
DEFERRED REBATECarrier returns a portion of freight charges to shipper. In exchange, shipper gives all/most shipments to carrier over specified period, usually six months. Rebate payment is deferred for similar period. DEMURRAGEPenalty for exceeding free time, usually 48 hours, allowed for loading/unloading under terms of railroad/ocean and motor carrier traffics. DENSITYThe weight of an article per cubic foot. DETENTIONA charge made for a vehicle held by, or for, consignor or consignee for loading, unloading or for forwarding directions. DIFFERENTIALAmount added to/deducted from base rate to make rate to/from some other point or via another route. DISCRIMINATIONDifference in rates not justified by costs. DIVERSIONA change made in consignee, destination, or shipment route while in transit. DOCKThe floor or platform where trucks load and unload. DOCK PLATEMetal plate used to bridge the space between a trailer and a dock platform. DOLLY
DEPARTMENT OF TRANSPORTATION (DOT)The various federal agencies that regulate the operation of motor vehicles and motor vehicle equipment. DRAWBACKRefund of customs duties paid on material imported and later exported. DRAYAGETransporting freight by truck, primarily in local cartage. DRIVE AXLEThe axle(s) which are connected to the engine by a drive shaft and power the vehicle. Also called "power axle." DRIVER COLLECTRefers to a shipment for which the driver must collect freight charges at the time of delivery. DUBA 28-foot trailer designed to be pulled two or three at a time by one tractor. Also referred to as a "pup" or "doubles." DUNNAGETerm used for cardboard, empty pallets, plywood, foam rubber, air bags, or other items used to cushion or protect freight while in transit.
END-OF-THE-LINE TERMINAL (EOL)A local terminal which handles the pick-up and delivery of the customer’s freight (as opposed to a consolidation center). Also referred to as a "satellite" or "group" terminal. EXCEPTION
EXEMPT CARRIERFor-hire motor carrier exempt from ICC economic regulation. EXPEDITINGMoving shipments through regular channels at an accelerated rate. EXPORT LETTER OF CREDITWhen importer has arranged with bank for letter-of-credit financing of purchases, he applies for issuance of individual letters of credit to cover purchase contracts as made.
FIRST IN, FIRST OUT (FIFO)Warehouse term meaning first items stored are the first used. FEDERAL REGISTERGovernment publication that prints rules/regulations of federal agencies daily. FEEDERIn intermodal moves, a pickup/delivery vehicle or ship. FISHY BACKTransporting motor carrier trailers and containers by ship. FOB DESTINATIONFreight costs paid to the destination point, title transfers at destination. FOB FACTORYTitle to goods and transportation responsibility transfers from seller to factory. FOB VESSELTitle/transportation costs transfer after goods are delivered on vessel. All export taxes/costs involved in overseas shipments are assessed to the buyer. FORCE MAJEURECondition in contract that relieves either party from obligations where major unforeseen events prevent compliance with provisions of agreement. FOREIGN TRADE ZONESGoods subject to duty may be brought into such zones duty-free for transshipment/storage/minor manipulation/sorting. Duty must be paid when/if goods are brought from a zone into any part of the U.S. FORKLIFTMechanical vehicle used to move freight on the dock. Also known as lift-truck, towmotor, or hi-lo. FORWARDING AGENTA firm specializing in shipping goods abroad. Payments made for insurance and other expenses are charged to the foreign buyer. FREE-ASTRAYA shipment that is mis-routed or unloaded at the wrong terminal and is billed and forwarded to the correct terminal free of charge. FREE ALONGSIDE (FAS)Selling term in international trade. Selling party quotes price including delivery of goods alongside overseas vessel at exporting port. FREE ON BOARD (FOB)Loaded aboard carrier’s vehicle at point where responsibility for risk/expense passes from seller to buyer. FREE TIMEThe period freight will be held before storage charges are applied. The period allowed for the owner to accept delivery before storage charges begin to accrue. FREIGHT FORWARDER1) An individual/company that accepts less-than truckload (LTL) shipments and consolidates them into truckload lots on a for-hire basis. 2) An agent who helps expedite shipments by preparing the necessary documents/making other arrangements for moving freight.
GATEWAYThe point at which freight is interchanged/interlined between carriers or at which a carrier joins two operating authorities provision of through service.
IN BONDStorage of goods in custody of government/bonded warehouse or carrier from whom goods can be taken only upon payment of taxes/duties to appropriate government agency. INTERCHANGEPassing freight from one carrier to another between lines. INTERLINE FREIGHTFreight moving from origin to destination over two or more transportation lines. INTERMODAL TRANSPORTATIONUsing more than one mode to deliver shipments. For example, rail or ocean vessel carriage of tractor-trailer containers. INTERSTATE COMMERCEExchanging goods between buyers and sellers in two or more states. INTERSTATE COMMERCE COMMISSION (ICC)The federal body charged with enforcing acts of Congress affecting common carriers in interstate commerce. Directly responsible to Congress. INTRASTATE COMMERCEWhen all business between buyers/sellers is carried on within state.
JOINT RATEAgreed upon by two or more carriers, published in a single tariff, and applying between point on line of one and point on line of another. May include one or more intermediate carriers in route. JUST-IN-TIME (JIT)An in-bound manufacturing strategy that smoothes material flow into assembly and manufacturing plants. JIT minimizes inventory investment by providing timely, sequential deliveries of product exactly where and when it is needed, from a multitude of suppliers. Traditionally an automotive strategy, it is being introduced into many other industries.
LANDED COSTTotal expense of receiving goods at place of retail sale, including retail purchase price and transportation charges. LAST IN, FIRST OUT (LIFO)Accounting method of valuing inventory that assumes latest goods purchased are first goods used during accounting period. LESS-THAN-CARLOAD (LTC or LCL)A load weighing less than the amount necessary to apply the carload rate charged by railroads. LESS-THAN-TRUCKLOAD (LTL)Less than the quantity of freight required to apply the truckload rate charged by motor carriers. LESSEEParty or company with legal possession/control of vehicle (with/without driver), or other equipment owned by another under terms of lease agreement. LESSORParty or company granting legal use of vehicle (with/without driver), or other equipment to another party under terms of lease agreement. LETTER OF CREDIT (L/C)A method of paying for goods, where the buyer establishes credit with a local bank, clearly describing the goods to be purchased. Upon receipt of documentation, the bank is either paid by the buyer or takes title to goods and transfers funds to the seller. LIFT TRUCKMechanical vehicle used to move freight on the dock. Also known as a fork-lift, towmotor, or hi-lo. LINEHAULMovement of freight between cities that are usually more than 1,000 miles apart, not including pickup and delivery service. LOAD FACTOR
LOADING ALLOWANCEA tariff provision which provides an allowance, usually a fixed sum per hundredweight, to a shipper for loading a carrier’s trailer. LONG TONEquivalent to 2,240 pounds or 20 long hundredweights. Also called gross ton.
MANIFESTA control document used to list the contents (individual shipments) during loading and from which the contents are checked during unloading. MANUFACTURING RESOURCE PLANNING (MRP II)System of manufacturing controls using computers. Affects purchasing, materials management, inventory control, and production management. MIXRefers to the combination of light, medium and heavy density freight. MOTOR CARRIER ACT OF 1935Act of Congress bringing motor common and contract carriers under ICC jurisdiction. MOTOR CARRIER ACT OF 1980Act of Congress that deregulated for-hire-trucking. MULTIMODALSee INTERMODAL TRANSPORTATION.
NATIONAL MOTOR FREIGHT CLASSIFICATION (NMFC)A publication for motor carriers containing rules, commodity descriptions, and classifications for nearly all shippable commodities. NET WEIGHT
NON-VESSEL-OPERATING COMMON CARRIER (NVOCC)A cargo consolidator of small shipments in ocean trade, generally soliciting business and arranging for/performing containerization functions at the port. NOTICE OF ARRIVALOn arrival of freight at destination, notice is sent promptly to the consignee showing number of packages, description of articles, route, rate, weight, etc. OFF-ROUTE POINTSPoints located off regular route highways of line-haul carriers, generally served only on irregular schedules. OPERATING AUTHORITYRoutes, points, and types of traffic that may be served by carrier. Authority is granted by state or federal regulatory agencies. OPERATING RATIO (OR or O/R)Comparison of carrier’s operating expenses with gross receipts; income divided by expenses. OVER, SHORT AND DAMAGED (OS&D)A report issued at the warehouse when goods are damaged. Used to file a claim with the carrier. OVERAGEFreight in excess over quantity believed to have been shipped, or more than quantity shown on shipping document. OWNER-OPERATORSDrivers who own or operate their own trucks. May lease rig/driver to another carrier. OWNER’S RISKWhen owner of goods remains responsible during shipping, relieving carrier of part of risk.
PACKING LISTList showing merchandise packed and all particulars. Normally prepared by shipper but not required by carriers. Copy is sent to consignee to help verify shipment received. PALLETA wooden platform upon which freight is stacked for transportation. The pallet provides clearance for forklift blades. A pallet has a wooden deck and bottom boards. PALLETIZATIONSystem for shipping goods on lightweight, double-decked wooden platforms called pallets. Permits shipment of multiple units as one large unit. PAYLOAD
PER DIEMLatin term meaning "by the day." Daily charge for use of railcars. PERISHABLE FREIGHTCommodities subject to rapid deterioration or decay, which require special protective services such as refrigeration or heating. PERMITAuthority granted to contract carriers and forwarders by the ICC to operate in interstate commerce. PIGGYBACKA form of intermodal transportation where trailers/containers are carried on railcars. POINT OF ORIGINThe station at which a shipment is received from the shipper by a transportation line. POOLING AGREEMENTThe dividing of revenue/business among two or more carriers in accordance with previous contracts/agreements. PRO NUMBERAny progressive or serial number applied for identification to freight bills, bills of lading, etc. PROOF OF DELIVERYCopy of waybill signed by consignee at time of delivery as receipt. PROPORTIONAL WEIGHTLower 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 WAREHOUSEStorage place renting space to anyone desiring it. PURCHASE ORDERForm buyer uses when placing order for merchandise.
QUOTASMany governments have established quotas of limiting imports by class of goods or country of origin. Sometimes importing countries require issuance of licenses before U.S. companies may ship to them. RATEEstablished shipping charge for movement of goods. In interstate transportation, price/rate is approved by ICC. Intrastate prices are approved by public service commission or similar body. RATE BASISFormula of specific factors/elements that control making of rate. RATE WARWhen carriers cut rates in an effort to secure tonnage. Can occur in all commodities. REBATEUnlawful practice in which carrier returns part of transportation charge to shipper. Done to encourage shipper to use same carrier again. RECIPROCITY
RECONSIGNMENT
REEFERSlang term for a refrigerated trailer that hauls perishables. RESTRICTED ARTICLESCommodities that can be handled only under certain specific conditions. ROLL-ON/ROLL-OFF (RO/RO)A feature in specially constructed vessels permitting road vehicles to drive on/off a vessel in loading/discharging ports. ROUTE
ROUTING
SATELLITE
SEMISlang term for semi-trailer. Also used loosely in referring to tractor-trailer combination. SEMI-TRAILER
SHIPMENT
SHIPPER’S CERTIFICATEForm filled out and presented by shipper to outbound carrier at transit point, together with instructions and inbound carrier’s freight bill, asking for reshipping privilege and transit rate on commodity previously brought into transit point. SHIPPER’S EXPORT DECLARATION (SED)Form required by Treasury Department and completed by shipper showing value, weight, consignee, destination, etc., of export shipments, as well as Schedule B identification. SHIPPER’S LOAD AND COUNT (SL&C)Indicates that the contents of a trailer were loaded and counted by the shipper, the trailer was sealed by the shipper, and the carrier did not observe the loading process. SHORT SHIPMENTPiece of freight missing from shipment as stipulated by documents on hand. SHRINK WRAPA plastic wrap used by shippers to secure cartons on a pallet. SKIDA wooden platform upon which freight is stacked for transportation. SLEEPERTractor with a sleeping compartment in the cab. STANDARD INTERNATIONAL TRADE CLASSIFICATION (SITC)A numerical code developed by the United Nations and adopted by U.S. airlines as the basis for identifying commodities moving in air freight. STATUTORY NOTICELength of time required by law for carriers to give notice of changes in tariffs, rates, rules and regulations — usually 30 days unless otherwise permitted by authority from ICC or other regulatory body. STEVEDOREPerson in charge of loading/unloading ships. STRAIGHT BILL OF LADINGNon-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. STRIPPINGEmptying truck of cargo, and arranging shipments by destination. STUFFINGSlang term for loading cargo container. SUPPLY CHAIN SERVICES / SUPPLY CHAIN MANAGEMENTDesigning and implementing complex distribution systems that begin with the sourcing of raw materials and end with delivery of goods to the consumer — and back, if necessary. This includes the operation of technologically superior "smart" warehouses, managing orders and returns, and packaging products for distribution.
TANKTAINERTank built into standard container frame and used to transport liquids. TARE WEIGHT
TRAFFIC
TRAILER ON FLATCAR (TOFC)See PIGGYBACK. Shipments moving TOFC receive special rates from tariffs provided for that class of traffic. TRAMPVessel that does not operate along definite route on fixed schedule, but calls at any port where cargo is available. TRANSSHIPA term commonly used to denote transfer of goods from one means of transportation to another. The re-handling of goods en route. TRIP CHARTERHiring vessel to haul cargo for special voyage. TRIP LEASEAn arrangement in which a regulated carrier "leases" or hires an owner/operator to make a single run. TRIPLEA combination of vehicles that has a tractor and three trailers. TRUCKLOAD (TL)
U.S. CUSTOMS BONDED WAREHOUSEA warehouse that is willing/able to validate that commodities will not be released until any necessary duties are paid. (Imports awaiting collection of duty must be stored at the importer's expense in custody of the federal government until import duty — if required — is paid. ULLAGEEmpty space present when container is not full. VALUATION, ACTUALThe actual value of goods shown on a bill of lading by the shipper when the rate to be applied depends on the value of those goods. VESSEL TON100 cubic feet. VOYAGE CHARTEREngaging services of cargo ship for specified trip from one port to another at established tonnage rate.
WAREHOUSEPlace for receiving/storing goods and merchandise for hire. Warehouseman is bound to use ordinary diligence in preserving goods. WASTAGELoss of goods due to handling, decay, leakage, shrinkage, etc. WAYBILLA document containing the description of goods which are part of a common carrier freight shipment. Shows origin, destination, consignee/consignor, and amount charged. Copies of this document travel with goods and are retained by originating/delivering agents. Used by carriers for internal records and control, especially during transit. It is not a transportation contract. WEIGH STATIONPermanent station equipped with scales at which motor vehicles transportation property on public highways are required to stop for checking of gross vehicle and/or axle weights. Many states also use portable scales to comply with their weight limits. Often combined with port of entry facilities. WEIGHTIn shipping, weight is qualified further as gross (weight of goods and container), net (weight of goods themselves without any container), and legal (similar to net, determined in such manner as law of particular country/jurisdiction may direct). YARD (FREIGHT)Unit of track systems within certain area used for storing cars, loading/unloading freight, and making up trains over which movements not authorized by timetable or train order may be made.
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