Industry Terms

Accessorial Service - A service rendered by a carrier in addition to normal door- to- door service

Agent - Company or person authorized to transact business for and in the name of another

Airway bill - (AWB) a contract for air transportation and receipt of goods shipped; covers movement by an air carrier or air forwarder

American flag Carrier - An air or sea transportation common carrier involved in international transportation movements, which operates under a certificate of public convenience and necessity, and is approved for service by the President of the United States

Arrival Notice - A notice, furnished to consignee, or arrival of freight

Banding - Material used to wrap the exterior of the shipment to hold it in place

Bank Draft - A negotiable instrument made out by a seller against a purchaser which directs the payment of a given amount of money through an intermediary bank; very similar to checks written on bank accounts

Barge - Flat  bottomed boat used chiefly on inland waterways, or an ocean-  going vessel pulled by ocean-  going tugs which are often used in inter island trade.

Belly - A term referring to a jet aircraft under floor cargo area

Bill of Lading - A non- negotiable document by which a transportation line acknowledges receipt of freight and contracts for its movement

Bobtail - A term for a tractor driven without its trailer; it can also refer to a straight truck

Bonded Goods - Goods in charge of officers of customs for which bonds, instead of cash, have been placed for duties

Bonded Warehouse - A warehouse approved by the Treasury Department and under bond or guarantee for the strict observance of revenue laws utilized for storing goods until duties are paid or goods are otherwise properly released

Booking - The act of recording arrangements for the movement of goods

Bracing - A method of protecting the loading of a railroad car or steamship container to prevent shifting of the load

Broker (Customs) - Intermediaries licensed by U-S- Customs to handle routine work involved in making customs entries; the broker is usually given power of attorney by the importer to sign the necessary form for customs clearance of the goods being imported

Bulk Vessel - Ship that services non- containerized cargo

Bulkhead - A structure built behind a loose load, less than container load shipment in an ocean container, or rail car to prevent movement within the container or to separate it from other shipments

Cargo - The contents of a shipment; the loading of a vessel, car, or vehicle

Carrier - An individual, partnership, or corporation which operates equipment engaged in the business of transporting goods

Certificate of Origin - Document which specify the country of origin, number or packages, number of boxes or cases marks and number, gross and net weight, and a description of the goods in the shipment

Class Rates - Charges for broad groupings of similar commodities which will apply on all items moving from all origins to all destinations

Clearance - A certificate issued by Customs stating that the shipment is free to move and that all legal requirements have been met

Commercial Invoice - Commonly referred to as a bill of statement that specifies goods sold from one party to another

Commodity - Any article of commerce; goods shipped

Commodity Rates - Applies only to specific items moving between named origins and destinations

Common Carrier - Transportation Company engaged in the business of transporting persons or goods for   compensation and for all persons or goods impartially

Consignee - The party to whom the shipment is to be delivered

Consolidation - Combining two or more small shipments in order to obtain reduced freight rates on a higher volume shipment.  Like groupage, but normally loaded into lift vans, then into a steamship container, and having one or several destination addresses from port of arrival. Also, used to obtain reduced freight charges on a higher volume shipment

Consular Invoice - A document written in the language of the country for which the goods are destined; it fully describes goods to be exported and provides evidence of a shipper’s declaration of value of the shipment; it is required by foreign countries for customs and statistical purposes

Container Vessel - An ocean-going ship specifically designed and constructed to carry cargo in ocean containers

Containers - Air, metal or wooden containers used for air shipments; these containers meet the various specifications regarding size and shape as required by the airlines

Containers- Lift van -  Called Type II containers; large wooden boxes which are caulked and waterproofed on the inside; sizes vary, but a standard lift van will measure from 18866 cubic feet to 2120 cubic feet

Containers - Overflow  - Small wooden boxes usually constructed by an origin agent for the shipment of goods that will not fit into lift vans nor air containers

Containers - Steamship - Large metal boxes into which shipments are put for ocean movement; they come in standard sizes of 20’, 40’, 40’ and 45’ high cube (also referred to as ocean containers or ISO containers)

Containers - Tri-wall - Thick (three layer) cardboard boxes or cartons used for air shipments

Contract Carrier - An individual, partnership, or corporation which operates for hire in the business of transportation under specific contracts with a limited number of shippers

CONUS - A term meaning the Continental 48 states of the United States

Demurrage - Charge for not removing a loaded ocean container from a port or terminal within the free time allowed

Density - The number of pounds or kilos per cubic foot or cubic meter of space taken or a specific amount of weight in a specific amount of space

Detention - Charge for keeping a container at premises away from a port or terminal beyond the free time allowed

Dimensions - The length, width, and height of containers

Dock - Sorting platform where shipments are loaded and unloaded

Dock Receipt - Document given to a carrier when it delivers goods to a dock or pier for an international shipment

Drayage - Transporting of shipments for short distances within a local area; to or from the port

DTD - Door to Door

Duty - Charge assessed by a government on shipments imported or exported

Embargo - Refusal by a carrier, for a limited period, to accept cargo for transportation over any route or segment thereof, and to or from any area, or point, or connecting carrier

Entry (customs) - Statement of the kind, quantities, and value of goods imported together with duties due, if any, and declared before a customs officer or other designated official

Export Declaration - Form required by the Treasury Department and completed by the shipper showing the value, weight, consignee, destination, etc- of a shipment to be exported

F.O.B. Destination - The shipper is responsible for transportation charges and cargo until delivered to the buyer at the buyer’s designated destination

FCL - Full Container Load

FAA - The Federal Aviation Agency which regulates air carriers with regard to safety and engages in promotional activities such as the development of airports and aeronautical facilities

FMC - The Federal Maritime Commission which regulates common carriers by water in foreign trade, terminal (port) operators, and ocean freight forwarders

Flatbed - Open trailer without sides, ends, or a top

Forwarder - An individual, partnership, or corporation which engages in the business of transporting goods but does not operate equipment; the forwarder arranges transportation by using subcontracted equipment operations and issues of bill of lading stating its transportation services

Free Time - The amount of time allowed by the carrier for the purpose of loading or unloading of freight; after this amount of time, demurrage charges will be assessed against the cargo

Gross Weight - Total weight of a shipment including the container and the packing materials

Groupage - More than one shipment loose loaded into a steamship container and having one or several destination addresses from port of arrival

IMF - International Monetary Fund

In-Bond - Shipments under the control of U-S- Customs until all charges and regulations have been satisfied

Interstate - Between states

Intrastate - Within the same state

Inventory - Also know as a Packing List which provides detailed specifications as to goods packed and/or loaded

ISO - International Standards Organization

ISO 9002 - An International Standards Organization certification process that guarantees adherence to quality assurance procedures within individual organizations

IT Papers - Required customs documents necessary to move a shipment in bond in the United States

Land Bridge - Overland movement of freight in ocean containers having a prior or subsequent movement by water

LCL - Less Container Load

Legal Weight - The weight of the goods and interior packing but not the container

Letter of Credit - A form letter issued by a bank indicating that a purchaser in a foreign country has established credit in a specific amount in the seller’s favor and that payment will be made upon presentation of a draft together with certain specified documents

Lien - Claim made on goods to the satisfaction of a debt

Line hauls - Transporting of shipments between terminals (long distance)

Long Ton - 2,240 pounds

Manifest - Document that lists the particulars of a shipment aboard a vessel, truck, or rail car

Minimum Charge - Applied to a shipment, establishes the least monetary amount collectible, regardless of weight of the shipment that will be assessed against the goods

NAFTA - North American Foreign Trade Association

NATO - North Atlantic Treaty Organization

Negotiable Papers - Bills, drafts, and notes, which may be transferred with all their rights by endorsement or assignment

Net Weight - Weight of the goods and packing materials only

N.V.O.C.C. - Non-Vessel Operating Common Carrier.    Maritime equivalent of a freight forwarder; has authority only to forward on ocean-  going vessels and cannot jointly make rates with domestic air, motor, or domestic water carriers

O.B.L. - Ocean Bill of Lading.       A contract for carriage and a receipt of goods shipped; covers only an ocean movement

Order - Negotiable document by which a transportation line acknowledges receipt of freight and contracts for its bill of lading

Overhang - Term that applies to that portion of a shipment that projects or extends beyond the physical vehicle

Packing List - Detailed specification as to goods packed as known as inventory

Pallet - Device used for moving and storing freight; about four feet square and constructed so as to facilitate placement of a lift truck between the levels of a platform to move it onto a freight car or into a warehouse

Palletize - To place specific size material on a pallet in a prescribed arrangement

Particular Average - Refers to partial loss of an individual shipment from one of the perils insured against irrespective of the balance of the cargo

Pier - Structure extending into navigable water for use as a landing place for water- going vessels

Piggy Back - Transportation of truck trailers and ocean containers on rail or truck flatbeds

Port - A specifically designated area where the preparation, loading and unloading, warehousing, and drayage of air or ocean cargo is conducted

Private Carrier - A shipper (manufacturer or merchant) who provides his own transportation service; that is, he hauls or moves his own goods

PTP - Port to Port

Re-consign - To change the name of consignee and/or the destination while the shipment is still in transit

Released Valuation - Value of a shipment, set by the shipper, which establishes the maximum liability of the carrier

Routing - Process of determining how a shipment will move between an origin and a destination

Sailing - Designated date that a vessel will depart port en route to destination

Seal - A device used for locking a freight car, motor vehicle, or steamship container door; an unbroken seal serves as evidence that the door fastening has not been tampered with since the time of applying the seal

Short Ton - 2,000 pounds

Skids - Sets of legs or planks used alone or in combination with wheels and a platform to elevate and to transport lift vans (slang for pallet)

Spotting a Container - The placing of containers where required to be loaded or unloaded

SIT - Storage-In-Transit.   The temporary storage of a shipment; it can occur at any time after pickup or prior to delivery

Stripping - Term used for unloading or de-vanning an ocean container

Stuffing - The term used for loading an ocean container

T & E - Document required by the Treasury Department for movement of imported goods through U-S- boundaries in bond for ultimate export

TACT - The air cargo tariff published by IATA that specifies point-to-point air cargo charges

Tare Weight - The weight of an empty container

Tariff - Rate book that provides the charges for given classes of transportation movement

Transit Time - Travel time to get from shipping point to destination point

Type II Container - Wooden Lift van constructed to U.S. military specifications.Usually 87â€x 45â€x 87†or 197 c.f.

Un stuffing - Unloading of shipments from a steamship or air container.  Also known as stripping

Volume Weight - Chargeable weight based on the amount of space occupied

Waiting Time - The time expended while a job waits for processing

Waybill - An official document which is used to identify the shipper and the consignee, present the routing, describe the goods, present the applicable rate, show the weight of the shipment, and make other useful information notations

WTD - Warehouse to Door

WTP - Warehouse to Port

WTW - Warehouse to Warehouse