Industry Terms
A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
A-1: Term used to
signify a first class ocean vessel.
A/P: Abbreviation for AUTHORITY TO PAY.
AACO: See Arab Air Carriers Organization.
AAD: See ADVANCE AGAINST DOCUMENTS.
AAR: See ASSOCIATION OF AMERICAN RAILROADS.
AB: The abbreviation for Aktiebolaget, a joint stock company in
Sweden. Also AKTB.
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. 2) Shipper or consignee
relinquishes damaged freight to carrier or refuses to accept
delivery. 3) In marine insurance, giving up title to partly
destroyed property to the insurers. 4) The act of relinquishing
title to damaged or lost property in order to claim a total loss.
ABS: See AMERICAN BUREAU OF SHIPPING.
ABI: See Automated Brokerage Interface.
ABC analysis: The classification of items in an inventory according
to importance defined in terms of criteria such as sales volume and
purchase volume.
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 non-essential 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 speaking, any agreement to purchase
goods under specified terms. An agreement to purchase goods at a
state price and under stated 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, demurrage, 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.
ACCOUNT NUMBER- An identifying number issued to identify a shipper
and/or consignee. The number ensures accurate invoicing procedures
and customer traffic activity.
ACH: See Automated Clearinghouse
ACI: See AIR CARGO, INC. or Airports Council International.
ACS –See Automated Commercial System
ACT OF GOD: Operation of an uncontrollable natural force. A natural
event, not preventable by any human agency, such as flood, storms,
or lightning. Forces of nature that a carrier has no control over,
and therefore cannot be held accountable.
Activity-based costing: An accounting system based on the true cost
of specific activities performed in an organization.
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).
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 Hoc Charter: A one-off charter operated at the necessity of an
airline or charterer.
AD VALOREM: Latin phrase meaning “according to value”. Freight rates
set at a certain fixed percentage of the value of articles. E.g. The
wholesale price of the articles, are known as “ad valorem” rates.
AD VALOREM DUTY: Tax imposed on imported merchandise assessed as a
percentage of its value.
ADB: See Asian Development BANK
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 it’s 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.
Advanced Technology Products: About 500 commodity classification
codes used in reporting U.S. merchandise trade are classified as
"Advanced Technology" which meet the following criteria: The
technology is from a recognized high technology field, the products
employ leading edge technology in that field; and such products
constitute a significant part of all items covered in the commodity
classification code.
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.
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.
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 a shipper’s agent
or representative aboard are limited and he is not authorized to
make definite decisions and adjustments without reference to his
principals.
AERP: See Automated Export Reporting Program
AEV: See ARTICLES OF EXTRAORDINARY VALUE.
AFFIDAVIT: Written statement which must be witnessed and sworn to
before a notary public or other officer who has 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.
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.
AG: The abbreviation for Aktien-Gesellschaft, a joint stock company
in Germany.
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. 2) A
broker.
Agent of Change: The professional who lobbies for new ways of doing
business.
AGGREGATED SHIPMENTS: Several shipments from different shippers to a
single consignee, consolidated and treated as single consignment.
AGIO: Premium paid for exchange of one currency for another.
AGVS: See automated guided vehicle system.
AIR CARGO: Any property (freight, mail, express) carried or to be
carried in an aircraft. Does not include passenger baggage.
AIR CARGO, INC. (ACI): A ground service corporation established and
jointly owned by the United States scheduled airlines. In addition
to its airline owners, ACI also serves over 30 air freight
forwarders and international air carriers. One of ACI’s major
functions is to facilitate the surface movement of air freight by
negotiating and supervising the performance of a nationwide series
of contracts under which trucking companies provide both local
pickup and delivery service at airport cities and over-the-road
truck service to move air freight to and from points not directly
served by the airlines. ACI publishes a directory of these trucking
services, listing over 19,000 points served in the United States and
the applicable pickup and delivery rates. Other services include
claims inspection, terminal handling, telemarketing service, and
group purchasing (equipment, supplies, insurance). ACI also makes
available, in many cities, low cost, disposable containers for
shippers' use. For further information: 1819 Bay Ridge Avenue,
Annapolis, MD 21403
AIR CARGO GUIDE: A basic reference publication for shipping freight
by air. It contains current domestic and international cargo flight
schedules, including pure cargo, wide body and combination
passenger-cargo flights. Each monthly issue also contains
information on air carriers' special services, labeling, airline and
aircraft decoding, air carrier and freight forwarders directory,
cargo charter information, United States and Canadian city directory
small package services, interline air freight agreements, aircraft
loading charts and more. For information: 2000 Clearwater Drive, Oak
Brook, IL 60521-9953.
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 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 TRANSPORT ASSOCIATION OF AMERICA (ATA): The trade and service
organization for the U.S. Scheduled airlines. The ATA acts on behalf
of the airlines to serve the Government and the public in activities
ranging from improvement in air safety to planning for the airlines'
role in national defense. The ATA plays a leading role in
encouraging Government to cut red tape that hampers foreign trade.
In the cargo field, the ATA works with the airlines, the Government
and shippers in developing improved standards and techniques in all
phases of air cargo. The ATA is an authoritative source of
information on cargo matters ranging from air freight packaging
practices, automation, freight lift capacity, data on air freight
growth and statistical data on air cargo services. For information:
1709 New York Avenue NW, Washington, DC 20006-5206.
Air Transport Action Group (ATAG): An independent coalition of
organizations from throughout the air transport industry which have
united to press for economically beneficial aviation capacity
improvements in an environmentally responsible manner.
Air Transport Association (ATA): Founded by a group of 14 airlines
meeting in Chicago in 1936, it was the first, and today remains the
only trade organization for the principal U.S. airlines.
AIR TRANSPORT COMMITTEE: A Canadian government agency responsible
for the economic and general welfare of air transport within Canada.
For information: 15 Eddy Street, Ottawa, Ontario, Canada KIA 0N9.
AIR WAYBILL (AIRBILL): 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
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 modern 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.
AIRBILL: See AIR WAYBILL.
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 ¾ “ 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. See also
PALLET.
Airline Group of the International Federation of Operational
Research Societies: A society with the avowed purpose of forwarding
the practice of Operational Research in airlines. The membership
consists of Operational Research workers who are also employed by
recognized civil airlines.
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.
AIRLINE TARIFF PUBLISHING COMPANY (ATPCO): Publisher of airline
industry tariffs setting forth rates and rules applicable to air
freight as well as fares for passengers. Tariffs are available on a
subscription basis. Subscriptions include an up-to-date copy of the
tariffs for new subscribers. For information: 400 West Service Road,
Chantilly, VA 22021.
AIRMAIL: The term "airmail," as a class of mail, is used only in
international postal service. Within the United States, the U.S.
Postal Service moves all first class mail, priority mail, and
express mail by air where this will expedite delivery.
Airlines Reporting Corporation (ARC): Since 1964, ARC's Area
Settlement Plan (ASP) provides ARC accredited travel agency
locations in the USA with a ticketing, reporting, and settlement
link to ARC's participation carriers. Incorporated in 1984 and
currently operating under the theme of Building an Electronic
System, ARC provides its services to approximately 46,000 agency
locations (of which 33,000 are retail locations) and 136 air and
rail carriers.
Airport and Airway Trust Fund: A federal fund that collects
passenger ticket taxes and disperses those funds for airport
facilities.
Airports Council International (ACI): The Airports Council
International is the "Voice of the World's Airports" representing
over 1,200 airports across 150 countries.
AIRPORT MAIL FACILITY (AMF): A U S Postal Service facility located
on or adjacent to an airport that is primarily engaged in the
dispatch, receipt and transfer of mail directly with air carriers
AIRWORTHINESS CERTIFICATION: Documentation to show that aircraft or
components comply with all the airworthiness requirements related to
its use as laid down by the regulatory authorities for the country
in which the aircraft is registered.
AIS: See ALBION INTERNATIONAL SERVICES, INC. Also abbreviation for
“Automated Information System”.
AIT: See American Institute in Taiwan
AKTB: See AB.
AKTS: See AS.
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. 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.
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.
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.
AMTD: Abbreviation for “Automatic Magnetic Tape Distribution”
ALTERNATE ROUTING: Routing that is less desirable than the normal
but results in identical terms.
AMERICAN BUREAU OF SHIPPING (ABS): Organization for classification
of vessels, control of construction specifications and examination
of seaworthiness.
American Institute in Taiwan: The AIT is a non-profit corporation
that represents U.S. commercial, cultural, and other interests in
Taiwan in lieu of an embassy. In 1979, the United States terminated
formal diplomatic relations with Taiwan when it recognized the
People's Republic of China as the sole legal government of China.
AIT was authorized to continue commercial, cultural and other
relations between the United States and Taiwan. AIT headquarters are
located in Arlington, Virginia; constituent offices are in Taipei
and Kaohsiung, Taiwan.
AMERICAN SOCIETY OF TRAFFIC & TRANSPORTATION (AST&T): Examining and
certifying organization which aims for professionalism in the
traffic and transportation field.
American Society of Transportation & Logistics: A professional
organization in the field of logistics.
AMERICAN TRUCKING ASSOCIATION (ATA): National federation of the US
trucking industry comprised of 51 state trucking associations
(including Washington DC) and independent conferences, each
representing a special class/type of trucking operation.
AMERICAN WAREHOUSEMEN’S ASSOCIATION (AWA): Voluntary organization of
warehousemen established to assure high standards in the industry.
AMERICAN WATERWAY OPERATORS: A domestic water-carrier industry
association representing barge operators on the inland waterways.
AMF: See AIRPORT MAIL FACILITY.
AMR: See ALBION MANAGEMENT RESOURCES, INC.
AMS: See Automated Manifest System
AMTRAK: The National Railroad Passenger Corporation. A federally
created corporation that operates most of the US inter-city
passenger rail service.
ANCILLARY EQUIPMENT: Equipment used to build up a palletized load or
to convey an ULD outside an aircraft. See also AIRCRAFT PALLET.
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.
ANSI: Abbreviation for “American National Standards Institute”
Antidumping: Antidumping, as a reference to the system of laws to
remedy dumping, is defined as a converse of dumping.
Antidumping Duty: A duty assessed on imported merchandise which is
subject to an antidumping duty order. The antidumping duty is
assessed on an entry-by-entry basis in an amount equal to the
difference between the United States price of that entry and the
foreign market value of such or similar merchandise at the time the
merchandise was sold to the United States.
Antidumping Petition: A petition filed on behalf of an affected
United States industry, alleging that foreign merchandise is being
sold in the United States at "less than fair value" and that such
sales are causing or threatening material injury to, or materially
retarding the establishment of, a United States industry.
any-quantity rate: A rate that applies to any size shipment tendered
to a carrier. No discount rate is available for large shipments.
APEC: See Asia Pacific Economic
APPARENT GOOD ORDER: Statement denoting that goods are free from
damage and in good condition, as far as their external appearance is
concerned.
AQMS: see Albion Quality Management Systems, Inc.
Arab Air Carriers Organization (AACO): The Arab Air Carriers
Organization is the Regional Association of Arab Airlines. It is one
of the oldest tools of Pan Arab cooperation established by the Arab
League of States. Since its inception in 1965, AACO has thrived to
progress in an environment of an air transport industry that is both
challenging and demanding.
ARBITRARY: 1) Charge in addition to regular freight charge to
compensate for unusual local conditions. 2) Fixed amount accepted by
a carrier when dividing joint rates. Also referred to as a
PROPORTIONAL, ADD-ON or construction rate.
ARBITRAGE: The buying of foreign exchange, securities or commodities
in one market and the simultaneous selling in another market, 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. It states that any controversy or claim
will be settled by arbitration in accordance with the rules of the
American Arbitration Association.
ARC: See Airlines Reporting Corporation.
ARINC: Based in Annapolis, MD, this organization provides
communications services, systems development and integration,
systems engineering, and management services to the world's aviation
community, commercial customers, and government agencies such as the
FAA, DOD, NASA, DOE, and DOT. ARINC provides sophisticated
communications and information handling services capable of reaching
aircraft anywhere in the world.
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. It is issued by
railroads, airlines, and maritime services.
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: The abbreviation for Akieselskabet, a joint stock company in
Denmark or Norway. Also AKTS.
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.
ASEAN: See Association of Southeast Asian Nations
Asia Pacific Economic Cooperation: APEC, established in November
1989, is an informal grouping of Asia Pacific countries that
provides a forum for Ministerial level discussion of a broad range
of economic issues. APEC includes the six ASEAN countries (Brunei,
Indonesia, Malaysia, Philippines, Singapore, and Thailand), plus:
Australia, Canada, China, Hong Kong, Japan, New Zealand, South
Korea, Taiwan, and the United States.
Asian Development Bank: The ADB helps finance economic development
in developing countries in the Asian and Pacific area through the
provision of loans on near-market terms, with its Ordinary Capital
Resources (OCR), and on concessional terms, through the Asian
Development Fund (ADF). The ADB was established in 1965 (began
operating in December 1966); headquarters are in Manila,
Philippines.
ASIAN DOLLARS: U.S. funds deposited in banks in Asia and the Pacific
Basin.
ASRS: See automated storage and retrieval system.
Assessment: The imposition of Antidumping Duties on imported
merchandise.
Association of Asia Pacific Airlines (formerly the Orient Airlines
Association): This organization covers all aspects of commercial
aviation in the Asia Pacific region.
ASSEMBLY SERVICE: A service under which a carrier assembles
shipments from many shippers and transports them as one shipment to
one receiver. See also DISTRIBUTION SERVICE.
Asset-based provider: A logistics company with ties to a motor
carrier, air carrier, railroad, or warehouse management firm.
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.
ASSOCIATION OF AMERICAN RAILROADS (AAR): A railroad industry
association that represents the larger U. S. Railroads.
Association of Southeast Asian Nations (ASEAN): Agreed in January
1992 to create a free trade area (ASEAN Free Trade Area, or AFTA)
with use of a common effective preferential tariff. Under the
agreement ASEAN members will cut tariff rates within 15 years of its
start date of January 1994. Manufactured goods from 15 sectors
designated as "fast track" are subject to tariff reduction to 0-5
percent within 10 years, and seven years if the starting rates were
already below 20 percent. "Fast track" sectors include vegetable
oils, cement, chemicals, pharmaceuticals, fertilizer, plastics,
rubber products, leather products, pulp, textiles, ceramic and glass
products, gems and jewelry, copper cathodes, electronics, and wooden
and rattan furniture.
AST&T: See AMERICAN SOCIETY OF TRAFFIC & TRANSPORTATION.
AT: Abbreviation for “American Terms” used in Marine Insurance. A
term used to differentiate between the conditions of American
Policies from those of other nations, principally England.
ATA: Actual Time of Arrival, or Airport-To-Airport or see 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, the holder avoids paying
duties or posting bonds. See also CARNET.
ATAG: See Air Transport Action Group.
ATD: Actual Time of Departure.
ATLAS: See Automated Trade Locator Assistance Network
ATPCO: See AIRLINE TARIFF PUBLISHING COMPANY.
ATHWARTSHIP: A direction across the beam of a vessel.
ATTENDANT ACCOMPANYING SHIPMENTS: Sometimes attendants accompany
cargo shipments as when grooms or veterinarians accompany racehorses
or other live animals. 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. 2) Management controls that document acceptance,
handling and movement of materials through a warehouse. 3) Verifying
summary account balances by analysis/inspection of underlying source
documents and transaction records.
Auditing: In transportation, determining the correct transportation
charges due the carrier. Auditing involves checking the freight bill
for errors, correct rate and weight.
Automated Brokerage Interface (ABI): A system available to U.S.
Customs Brokers with the computer capabilities and customs
certification to transmit and exchange customs entries and other
information, facilitating the prompt release of imported cargo. Part
of Customs' Automated Commercial System, permits transmission of
data pertaining to merchandise being imported into the United
States. Qualified participants include brokers, importers, carriers,
port authorities, and independent data processing companies referred
to as service centers.
Automated Clearinghouse (ACH): The Automated Clearinghouse (ACH) is
a feature of the Automated Broker Interface which is a part of
Customs' Automated Commercial System. The ACH combines elements of
bank lock box arrangements with electronic funds transfer services
to replace cash or check for payment of estimated duties, taxes, and
fees on imported merchandise.
Automated Commercial System: The electronic system of the US Customs
Service, encompassing a variety of industry sectors, that permits
on-line access to information in selected areas.
Automated Export Reporting Program: The AERP provides for electronic
submission of most information required on the Shipper's Export
Declaration. The program was initiated in 1969 with the intent of
enabling large volume exporters to submit electronically and
facilitate Census Bureau data entry and analysis. AERP was expanded
in 1982 to allow freight forwarders, and again in 1985 to allow
ocean carriers, to file electronically. At the beginning of fiscal
year 1994, about 220 firms: - accounting for 350,000 to 400,000
records a month: - were participating in AERP. The program is
administered by the Automated Data Reporting Branch, Foreign Trade
Division, Bureau of the Census.
automated guided vehicle system: A computer-controlled materials
handling system consisting of small vehicles (carts) that move along
a guideway.
Automated Manifest System: The electronic system allowing a manifest
inventory to be transmitted to the US Customs Service data center by
carrier, port authority or service center computers.
automated storage and retrieval system: An automated, mechanized
system for moving merchandise into storage locations and retrieving
it when needed.
Automated Trade Locator Assistance Network: ATLAS is a Small
Business Administration-sponsored, contractor-operated, automated
system which provides market research information and statistics on
world markets by SIC code (and possibly harmonized system). Indirect
access is available for businesses, with arrangements through the
local SBA district office. ATLAS, which became operational in Spring
1993, replaced SBA's export information system (XIS).
AUTOMATIC POD: Information automatically sent to payer containing
name of person who signed for the package with date and time of
delivery. See also POD.
AUTOMATIC PROOF OF DELIVERY: Same as AUTOMATIC 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 Eastern trade
which is addresses 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.
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.
AWA: See AMERICAN WAREHOUSEMEN’S ASSOCIATION.
AXLE RATINGS: Rear axles on a truck 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, and the
gross combined weight (GCW rating) which is the maximum horsepower
limit the axle is capable of carrying in normal service (engine size
rating).
BAA: Abbreviation for
the “British Airports Authority”
BACA: Abbreviation for the “Baltic Air Charter Association”.
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). 2) Movement in the direction of
lighter traffic flow when traffic is generally heavier in the
opposite direction. 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.
BAI CERTIFICATE: Issued by the Bureau of Animal Industry of the USDA
certifying veterinary inspection.
BAILEE RECEIPTS: See TRUST RECEIPT.
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.
BALLAST: Heavy material which is placed in the ship’s hold for
stability.
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 a financial instrument which can be discounted.
Banker's Draft: Draft payable on demand and drawn by or on behalf of
the bank itself; it is regarded as cash and cannot be returned
unpaid.
Banker'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 scanner: A device to read bar codes and communicate data to
computer systems.
Bar codes: The most commonly used form of automatic-identification
technology. Basically, a series of light and dark bars of different
widths that are used to represent a number, letter or symbol. A
bar-code reader, really an optical scanner, emits a beam of light
and records the pulsated reflection that occurs when light bounces
off the black-and-white bands. The scanner then converts the
pulsated reflection of light into electronic data.
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 cargoes.
BARREL: Container of cylindrical shape made of wood, aluminum or
steel which is longer than it is wide and has ends with equal
diameters.
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 from storage for more than one
order at a time.
BAUD RATE: Number of bits per second a computer is capable of
sending/receiving. Varies from 300 (teletypewriter) and up.
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 Cargo: Freight accommodation below the main deck on 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.
BENEFIT-COST RATIO: An analytical tool used in public planning. A
ratio of total measurable benefits divided by the initial capital
cost.
Bermuda Agreement: An agreement concluded in 1946 between the U.K.
and the U.S. designed to regulate future international air traffic.
Most governments accept its principles and follow it inter-alia by
limiting traffic rights on international routes to one or two
carriers.
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.
BIG EMERGING MARKETS: A group of fast growing economies identified
by the Department of Commerce as having the most potential for U.S.
exporters. They are currently: Argentina, Brazil, the China Economic
Area (China, Hong Kong, Taiwan, India, Indonesia, Mexico, Poland,
South Africa, South Korea and Turkey).
BILGE: 1) The lowest internal part of a ship’s hull, next to the
keelson, where the bilge water collects. 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. An Ocean shipment requires two
documents: an Inland Bill of Lading to cover the domestic movement
of the cargo and an Ocean Bill of Lading to cover the international
carriage. In air freight, the air waybill is a form of Bill of
Lading and is the contract for carriage- both domestically and
internationally. See also ORDER BILL OF LADING.
BILLING THIRD PARTY: The invoicing of transportation charges to
other than shipper or consignee.
BINDER: 1) Temporary insurance coverage pending the issuance of an
insurance policy or certificate. 2) A strip of cardboard, thin wood,
burlap or similar material placed between layers of containers to
hold a stack together.
BLANK ENDORSEMENT: Writing only one’s own name on the back of a
document.
BLANKET RATE: A rate that does not increase according to the
distance the commodity is shipped.
Bleeding edge: A maneuver so far ahead of its time that it may
create a competitive disadvantage.
BLOCKED EXCHANGE: Exchange which cannot be freely converted into
otter currencies.
Blue Lantern: Blue Lantern, a procedure pertaining to U.S. Munitions
List items, is intended to verify that information stated on export
license applications is valid and that the use of the commodity or
service exported is consistent with the terms of the license. It
includes pre-license and post-shipment checks of export applications
conducted by designated officials at U.S. embassies. Blue Lantern
was initiated in September 1990 by the State Department's Office of
Defense Trade Controls
Bond System: The Bond System, a part of Customs' Automated
Commercial System, provides information on bond coverage. A Customs
bond is a contract between a principal, usually an importers, and a
surety which is obtained to insure performance of an obligation
imposed by law or regulation. The bond covers potential loss of
duties, taxes, and penalties for specific types of transactions.
Customs is the contract beneficiary.
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 authorities for
storage of goods on which payment of duties is deferred until the
goods are removed. Also U.S. Customs Bonded Warehouse.
BOGIE: 1) An assembly of two or more axles. 2) Removable set of rear
axles and wheels used to support a van 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. 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
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. 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.
BPR: See “Business Process Reengineering”
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: 1) To unload, sort and reload some/all of a vehicle in
transit. 2) To reduce a large shipment of a single commodity to many
shipments that are then dispersed to various buyers. 3)
Disassembling of consolidated shipment for delivery or
re-consignment of a shipment. 4) Loose cargo, such as cartons,
stowed directly in the ship's hold as opposed to containerized or
bulk cargo. Note: For consolidated air freight, it is moved under
one MAWB and each consignment designated to specific consignee or
recipient is under one HAWB. When freight forwarder receives the
consolidated cargo from carrier, they will break the consolidation
apart per HAWB then proceed customs clearance along with associated
shipping and import documents. Such Break-Bulk is normally handled
by airlines or their contracted ground handling agent.
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.
BROKER: 1) Agent who arranges interstate movement of goods by other
carriers. 2) Arranger of exempt loads for owner-operators and/or
carriers. 3) One who arranges the buying/selling of goods for a
commission. 4) Person who leases owned equipment to a carrier. 5)
Solicitor of insurance who places orders for coverage with companies
designated by the insured or with companies of his choosing. 6)
Person or company licensed by the U.S. Treasury Department to
transact business with Customs on behalf of importers. 7) Middleman
between Buyer and Seller.
BROKER (CUSTOMS): A person or company licensed by the U.S. Treasury
Department to transact business with Customs on behalf of importers.
See also CUSTOM BROKERS and CUSTOMHOUSE BROKER.
BROKERAGE: Fee or commission that is paid to a BROKER for services
performed.
Brussels Tariff Nomenclature Number: The customs tariff number used
by most European nations. The US uses a similar system known as the
Harmonized Tariff Schedule.
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 CARRIER: Vessel engaged in carriage of bulk commodities like
petroleum, grain or ore, which are not packaged, bundled, bottled or
otherwise packed.
BULK SHIPMENTS: Shipments which are not packaged, but 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. 2) Cargo restraining partition in a vehicle or vessel.
BULL RINGS: Cargo securing devices mounted in the floor of
containers which provide for the lashing and securing of cargo.
BUNKER: Ship’s coal bin or oil storage place.
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.
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 buyers
instructions. Complete routing is permitted for rail shipments but
only for the first carrier in motor shipments.
C/L: See CARLOAD.
C&F: See Cost And Freight.
CAA: Abbreviation of the “Civil Aviation Authority”. Government body
responsible for regulating U.K. airlines.
CABOTAGE: Applies to traffic originating at a point in one country
and destined to another point within the territory of the same
country. Coastwise and inter-coastal navigation and trading. In the
US, a federal law that requires coastal and inter-coastal traffic to
be carried in U.S.-built and U.S.-registered ships. Also, where
cargo is carried on what is essentially a domestic flight and
therefore not subject to international agreements that fix set
rates. Cabotage rates are negotiable between shipper and airline and
apply on flights within a country and to its overseas territories.
CAD: See CASH AGAINST DOCUMENTS.
CAD/CAM: Abbreviation for “Computer Aided Design” and “Computer
Aided Manufacturing”.
CAF –See currency adjustment factor
Cage: (1) A secure enclosed area for storing highly valuable items.
(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. 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
and released, cargo is remained at bonded warehouse under customs
custody.
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 in assets
that produce output.
CAPSTAN: Mechanical device for moving/raising heavy weights used at
docks in mooring vessels at rail terminals to move dead engines.
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.
CARGO: 1) Freight transported. 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. 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 a passenger) or the property of the carrier;
providing that unaccompanied baggage moving under an air waybill or
Bill of Lading is cargo.
CARGO AIRCRAFT: See ALL-CARGO AIRCRAFT.
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.
Cargo Agents Settlement System: See CASS.
Cargo Network Services Corp. (CNS): 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. For information: 300 Garden City Plaza, Suite 312, Garden
City, NY 11530
CARGO PLAN: Stowage plan of a vessel.
Cargo Receipt: A receipt of cargo for shipment by a consolidator
(used in ocean freight). See also DOCK RECEIPT.
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.
Caribbean Common Market: CARICOM includes 13 English-speaking
Caribbean nations: Antigua and Barbuda, the Bahamas, Barbados,
Belize, Dominica, Grenada, Guyana, Jamaica, Montserrat, St.
Kitts-Nevis, St. Lucia, St. Vincent/Grenadines, and Trinidad and
Tobago). CARICOM was established in 1973; headquarters are in
Georgetown, Guyana.
CARLOAD (C/L or CL): 1) Quantity of freight required to fill a
rail-car. 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 OF GOODS BY SEA ACT: 1936 U.S. Statute that governs the
acts that a carrier is responsible for and defines the terms used in
shipping. The act provides that the shipowner's liability will be
limited to $500 per shipping package, and it stipulates a one-year
time limit for filing suit against the carrier. This act
automatically applies to international ocean movements but not to
domestic ocean transits unless the carrier agrees to be bound by it.
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 in 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.
Carriers(s) Containers or Shipper(s) 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 the terms of the freight contract. A common carrier is liable for
all shipment loss, damage, and 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 CPT but
with the addition that the seller has to procure cargo insurance
against the buyer's risk of loss of or damage to the goods during
the carriage. The seller contracts for insurance and pays the
insurance premium. The buyer should note that under the CIP term the
seller is only required to obtain insurance on minimum coverage.
CARTAGE: 1) Charge for pickup or delivery of goods. 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.
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 anti-trust laws. 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. See also MARKS.
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.
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.
During 1995, CNS instituted a credit improvement program which not
only investigates potential problems but also assists the parties in
achieving creative and acceptable solutions.
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.
CBD: See CASH BEFORE DELIVERY.
CCEF: Abbreviation of “Customs Centralized Examination Facility”.
CD-ROM: Abbreviation for “Compact Disk-Read Only Memory”
CELLULAR VESSEL: Ship constructed for transportation of containers
stacked on top of each other in vertical guide shafts, no general
freight carried.
centralized authority: The restriction of authority to make
decisions to few managers.
Central American Common Market: A first effort to establish a
Central American Common Market, CACM (Spanish: Mercado Common
Centroamericano, MCCA) was attempted in 1960 under the auspices of
the Organization of Central American States (OCAS). A restructuring
was started in 1973. Members include Honduras, Guatemala, El
Salvador, Nicaragua and Costa Rica. The common market will cover all
products traded within the region by the end of 1992. A second step
toward regional integration will be the establishment of a common
external tariff. CACM is associated with the Central American Bank
for Economic Integration; headquarters are in Guatemala City,
Guatemala.
Central Europe Free Trade Association: CEFTA is a trade agreement
among the "Visegrad" countries: - Poland, the Czech Republic,
Slovakia, and Hungary: - that is somewhat parallel to the European
Free Trade Association.
central processing unit: The physical part of the computer that does
the actual computing.
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.
CERTIFICATED CARRIER: A for-hire carrier that is subject to economic
regulation and that requires an operating certification to provide
services.
CES: Abbreviation of “Customs Examination Station”.
CFD: See Continuous flow distribution
CFR: See Cost And Freight.
CFS: The term CFS at loading port means the location designated by
carriers for the receiving of cargo to be 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.
CFS/CY: The term CFS/CY means cargo delivered break-bulk to
Carrier's CFS to be packed by Carrier into containers and accepted
by consignee at Carrier's CY and unpacked by the 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 Services" means the
service performed at loading port in receiving and packing cargo
into containers from CFS to CY or shipside. "CFS Receiving Services"
referred herein 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 and marking containers, Storage, Ordinary sorting
and stacking, Preparing carrier's internal container load plan
Chaebol: Chaebol are Korean conglomerates which are characterized by
strong family control, authoritarian management, and centralized
decision making. Chaebol dominate the Korean economy, growing out of
the takeover of the Japanese monopoly of the Korean economy
following World War II. Korean government tax breaks and financial
incentives emphasizing industrial reconstruction and exports
provided continuing support to the growth of Chaebols during the
1970s and 1980s. In 1988, the output of the 30 largest chaebol
represented almost 95% of Korea's gross national product.
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 of the shipment used in determining
air freight charges. The chargeable weight may be the dimensional
weight or on container shipments the gross weight of the shipment
less the tare weight of the container.
Chargeable Kilo: Rate for goods where volume exceeds six cubic
meters to the tonne.
CHARGES ADVANCED: See ADVANCEMENT or CHARGES.
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. The company must maintain this
area in accordance with government safety regulations.
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
to 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 assemble 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.
CHEMTREC: Abbreviation for “Chemical Transportation Emergency
Center”. Organization available on a 24-hour basis to provide
emergency response information to anyone involved in hazardous
chemical accidents.
Chinese Economic Area: The CEA is an informal reference to the
economic integration of Southern China with Hong Kong and Taiwan
which has proceeded without any "arrangement". Also referred as
"Greater China".
CHOCK: 1) A piece of wood or other material placed at the side of
cargo to prevent it from rolling about or moving sideways. 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.
CIA: See CASH IN ADVANCE.
CIF: See Cost, Insurance and Freight.
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 air lines 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 for the door-to-door
pickup and delivery service.
CIVIL AERONAUTICS BOARD (CAB): A Federal agency created by Congress
in 1938 to promote the development of the U.S. air transport system,
to award air routes and to regulate passenger fares and cargo rates.
Legislation passed by the U.S. Congress in 1978 terminated the CAB,
effective January 1, 1985. Many of the CAB functions such as
certificates, air carrier fitness, consumer protection,
international rates and services were transferred to the Department
of Transportation.
CL: See CARLOAD.
CLAIM: 1) Demand on transportation company for payment, due to
loss/damage of freight that occurred during transit. 2) Demand on
transportation company for refund on overcharge. 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.
Class II carrier: A classification of regulated carriers based upon
annual operating revenues--motor carriers of property of $1-$5
million; railroads of $10-$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 or Kind" of Merchandise: A term used in defining the scope of
an antidumping investigation. Included in the "class or kind" of
merchandize 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 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.
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; it is not uncommon for importers to
resort to litigation over the correct duty to be assessed by the
customs on a given item.
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.
CLAYTON ACT: An antitrust act of Congress making price
discrimination unlawful. The Federal Trade Commission (FTC) is the
enforcement agency.
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.
CLEARANCE: 1) Customhouse certificate that ship is free to leave,
all legal requirements having been met. 2) Space or measurements
above an beside tracks/highways.
CLEAT: Strip of wood or metal used to add additional strength or to
prevent warping or to keep goods in position.
CLM: See Council of Logistics Management
CM: Centimeters
COASTAL CARRIERS: Vessels that provide service along coasts serving
ports on the Atlantic or Pacific oceans or on the Gulf of Mexico.
COCOM: See: Coordinating Committee for Export Controls
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”.
COGAS: See CARRIAGE OF GOODS BY SEA ACT.
COLLAPSIBLE CONTAINER: So fitted that the main parts are hinged or
removable for the purpose of reducing its effective volume for
transporting in a empty condition, thus making more efficient use of
empty space.
COLLECT CHARGES: The transportation practice under which the
receiver of the goods pays charges. See CHARGES COLLECT.
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. There are no credit provisions in COD service.
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 processed each year. Daily statements are
prepared for the automated brokers who select this service. The
Collections System permits electronic payments of the related duties
and 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 and
receipt of electronic payments from lock-box operations for Customs
bills and fees.
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 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.
COMMERCE CLAUSE OF THE U.S. CONSTITUTION: .... “Congress shall have
the power.... to regulate commerce with foreign nations and among
the several states...”. This clause that gives authority to regulate
interstate commerce.
Commercial Code: A published code designed to reduce the total
number of words required in a cablegram.
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 are also 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. With respect to Eximbank
guarantees, commercial risks cover nonpayment for reasons other than
specified Political Risks. Examples are 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 on
which property may be owned, the 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. The ICC defines the
area.
COMMISSION: Fee charged by brokers as compensation for their
services in purchasing or selling commodities/securities at the
direction of a customer.
Committee for the Implementation of Textile Agreements: CITA is an
interagency committee chaired by the Department of Commerce which
exercises the rights of the United States under the Multi-Fiber
Arrangement. CITA initiates "calls" for consultation when imports of
a particular textile product from a particular country disrupt the
U.S. domestic market for that product. Other member agencies include
the Departments of Labor, State, and Treasury and the United States
Trade Representative.
COMMITTEE OF AMERICAN STEAMSHIP LINES: An industry association
representing subsidized U.S. flag steamship companies.
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. See HARMONIZED COMMODITY
DESCRIPTION AND CODING SYSTEM.
COMMODITY RATE: A rate for a specific commodity and its origin or
destination.
Commodity Specialist: An official authorized by the U.S. Treasury to
determine proper tariff and value of imported goods.
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 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.
Commuter: 1) An exempt for-hire air carrier that publishes a time
schedule on specific routes. 2) A special type of air taxi.
comparative advantage: A principle based on the assumption that an
area will specialize in producing goods for which it has the
greatest advantage or the least comparative disadvantage.
Competitive line rate: A shipper/carrier negotiated rate or National
Transportation Agency-imposed rate. With a Competitive Line Rate,
Railway A (the "local carrier") may charge a shipper served
exclusively by it and located more than 30 kilometers from an
interchange, to move the shipper's traffic to the interchange and
transfer it to Railway B (the "connecting carrier").
COMPUTERIZED TRAFFIC FLOW: The increased use of electronic data
processing is one of the most significant advances in physical
distribution of recent years. Computers are being given new
assignments not only by carriers, but also by shippers, to achieve
better control over the flow of raw materials and finished
inventories. Also the U.S. Government and the United Nations gather
more accurate data on the flow of commerce. Airlines have been in
the forefront of computer application of cargo operations by using
computers to prepare air waybills, expedited terminal handling,
pickup and delivery, up-to-the-minute shipment status and billing.
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 ICC that
verifies carrier participates in rates published in a tariff by a
given agent.
CONDITIONS OF CONTRACT: The terms and conditions established by the
air carriers for the carriage of goods. These conditions are printed
on the air waybill and 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. 2) Association of shipowners servicing
the same trade route who operate under collective conditions of
carriage and tariff rates. Organization which fixes rates and
sailings for the purpose of limiting competition between members and
of “outsiders.
Conference on Security and Cooperation in Europe: CSCE was
established in 1991 as a successor to the Eastern bloc's Council for
Mutual Economic Assistance (CMEA or COMECON). CSCE administers
residual tariffs and quotas and relations with other organizations.
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.
Confirmed Letter of Credit: A letter of credit, issued by a foreign
bank, with validity confirmed by a U.S. bank. An exporter who
requires a confirmed letter of credit from the buyer is assured of
payment by the U.S. bank even if the foreign buyer or the foreign
bank defaults.
Confirming: Confirming is a financial service in which an
independent company confirms an export order in the seller's country
and makes payment for the goods in the currency of that country.
Among the items eligible for confirmation are the goods; inland,
air, and ocean transportation costs; forwarding fees; custom
brokerage fees; and duties. Confirming permits the entire export
transaction from plant to end user to be fully coordinated and paid
for over time. It is mainly a European practice.
Confiscation: The taking and holding of private property by a
government or an agency acting for a government. Compensation may or
may not be given to the owner of the property.
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. 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.
For export control purposes, the documentation differentiates
between an "intermediate" consignee and an "ultimate" consignee.
CONSIGNEE ACCOUNT NUMBER: See ACCOUNT NUMBER.
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. The consignee
sells the goods for commission and remits the net proceeds to the
consignor.
CONSIGNOR: Shipper of goods. Means the person whose name appears as
the party contracting with the carrier for the carriage of goods.
See also SHIPPER.
CONSOLIDATION –1) Practice of combining less-than-carload (LCL) or
less-than-truckload (LTL) shipments to make carload/truckload
movements. 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. In this case, each consignment will be shipped with one
HAWB respectively and all of them will be under one MAWB.
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) of more than one nation, 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
United States.
construction rate: See ARBITRARY.
Consul: A government official residing in a foreign country, charged
with representing the interests of his or her country and its
nationals.
CONSULAR DECLARATION: A formal statement made to the consul of a
foreign country describing goods to be shipped.
CONSULAR DOCUMENTS: Bills of Lading, Certificates of Origin or
special forms of invoice to which has been added the official
signature of the consul of the country of destination.
Consular Invoice: A document, required by some foreign countries,
describing a shipment of goods and showing information such as the
consignor, consignee, and value of the shipment. Certified by a
consular official of the foreign country, it is used by the
country's customs officials to verify the value, quantity, and
nature of the shipment.
CONSULAR VISA: An official signature affixed to certain shipping
documents by the consul of the country of destination.
Consultative Committee for International Telephone and Telegraphy:
CCITT facilitates U.S. coordination of communications standards
issues. CCITT is a part of the International Telecommunications
Union (ITU), which is an international treaty organization. The
State Department is responsible for coordinating and presenting U.S.
positions to the ITU.
container: The term container means a single rigid, non-disposable
dry cargo, insulated, temperature controlled flatrack, 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 flatrack
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. For Air Cargo, many types
of air cargo containers are offered: The containers are designed in
various sizes and irregular shapes to conform to the inside
dimensions of a specific aircraft. For ocean cargo, containers are
designed to be moved inland on its own chassis and can be loaded at
the shippers plant for shipment overseas. Basic types of containers
are; dry van, open top, half high, hi cube, flat rock, tank
container, refrigerated container, insulated container, tilting
container. Average outside dimensions are generally 20, 35, and 40
feet in length, 8 feet wide and 8 feet high standard.
CONTAINER FREIGHT STATION See CFS: Associated with consolidation
depots where parcels of cargo are grouped and loaded into
containers.
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: 1) The practice or technique of using a box-like
device in which a number of packages are stored, protected, and
handled as a single unit in transit. Container descriptions have
been broadened to include a unitized load on a carrier owned pallet,
loaded by shippers, and unloaded by receivers at places other than
on airline premises and are restrained and contoured so as to permit
proper positioning and tie-down aboard the aircraft. Containerized
air freight reduces packaging costs for the shipper because of the
protection afforded by the container. The buildup of container loads
at the shipper's plant bypasses the terminals. Shippers who do not
have appropriate facilities for loading and unloading containers may
contract through the airlines for this service. Specially equipped
trucks pick up containerized shipments at the shipper's plant for
direct delivery to mechanical loading equipment near plane-side.
Containerization saves the airlines time and manpower in ground
handling and enables the carriers to achieve a more efficient
utilization of the cubic capacity of modern freighter aircraft and
wide body jets Consequently, the airlines pass along part of this
savings to shippers. 2) Shipping system based on large
cargo-carrying (usually 20 or 40 feet in length) that can be
interchanged between trucks, trains and ships without re-handling
contents.
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 customer inventories and improve service
usually to large customers.
CONTRABAND: During the time of war, materials carried aboard a
vessel that could aid a belligerent in the process of the war, such
as arms, weapons or munitions.
CONTRACT CARRIER: Carrier engaged in interstate transportation of
persons/property by motor vehicles on a for-hire basis but under
continuing contract with one or a limited number of customers to
meet specific needs of each customer. Must receive authorization
from the ICC.
Contract Logistics: The use of a third-party provider to plan,
implement and control the efficient, cost-effective flow and storage
of raw materials, in-process inventory, finished goods and related
information from the point of origin to the point of consumption, or
any portion thereof.
Conveyor: A materials handling device that moves freight from one
warehouse area to another. Roller conveyors utilize gravity, whereas
belt conveyors use motors.
COOPERATIVE ASSOCIATIONS: Groups of companies or individuals having
common interest; agricultural cooperative associations may haul up
to 25% of their total interstate tonnage in non-farm, non-member
goods in movements incidental and necessary to their primary
business.
COORDINATED TRANSPORTATION: Two or more carriers of different modes
transporting a shipment.
COORDINATED MOVEMENT: The extending of the air freight transport
system to the immediate and smaller size communities increasingly
involves the use of interline agreements and the use of combined
services of truck/air, helicopters, regional, and commuter airlines.
In many cases such traffic moves under a joint rate. The success of
such combined service hinges on preplanning on the part of the
carriers, and often on the part of shippers, with regard to
production and distribution schedules. The various aspects of such
preplanning among two or more carriers and shippers are often
referred to as "coordinated movement."
Coordinating Committee for Export Controls: An informal group of 15
western countries established to prevent the export of certain
strategic products to potentially hostile nations.
Coordination Council for North American Affairs: The CCNAA, the
counterpart to the American Institute in Taiwan, unofficially
represents Taiwan's interests in the United States. The Council
provides information on trade, business, and investment
opportunities to the American business community. Council
headquarters are in Washington, D.C.
CO-LOAD: Two shipments from different terminals combined to ship as
one load.
CORDAGE: Products of rope, twine and string industry.
Core competency: A function essential to a company's success.
Correspondent Bank: A bank that, in its own country, handles the
business of a foreign bank.
Cost And Freight (CFR) (...named port of destination): The seller
must pay the costs and freight necessary to bring the goods to the
named port of destination but the risk of loss of or damage to the
goods, as well as any additional costs due to events occurring after
the time the goods have been delivered on board the vessel, is
transferred from the seller to the buyer when the goods pass the
ship's rail in the port of shipment. The CFR term requires the
seller to clear the goods for export. This term can only be used for
sea and inland waterway transport. When the ship's rail serves no
practical purpose, such as in the case of roll-on/roll-off or
container traffic, the CPT term is more appropriate to use.
(Typically used for ocean shipments only. CPT, or carriage paid to,
is a term used for shipment by modes other than water.) Also, a
method of import valuation that includes insurance and freight
charges with the merchandise values.
Cost, Insurance and Freight (CIF) (...named port of destination):
The seller has the same obligations as under CFR but with the
addition that he has to procure marine insurance against the buyer's
risk of loss of or damage to the goods during the carriage. The
seller contracts for insurance and pays the insurance premium. The
buyer should note that under the CIF term the seller is only
required to obtain insurance on minimum coverage. The CIF term
requires the seller to clear the goods for export.
cost of lost sales: The forgone profit companies associate with a
stock-out.
Costs of Manufacture: In the context of dumping investigations, the
costs of manufacture, COM, is equal to the sum of the materials,
labor and both direct and indirect factory overhead expenses
required to produce the merchandise under investigation.
Cost of Production: A term used to refer to the sum of the cost of
materials, fabrication and/or other processing employed in producing
the merchandise sold in a home market or to a third country together
with appropriate allocations of general administrative and selling
expenses. COP is based on the producer's actual experience and does
not include any mandatory minimum general expense or profit as in
"constructed value."
cost trade-off: The interrelationship among system variables in
which a change in one variable affects other variables' costs. A
cost reduction in one variable may increase costs for other
variables, and vice versa.
Country of Origin: The U.S. Customs Service defines country of
origin as the country where an article was wholly grown,
manufactured or produced, or, if not wholly grown, cultivated or
produced in one country, the last country in which the article
underwent a substantial transformation. Duty rates vary according to
the country of origin.
Court of International Trade: The CIT has jurisdiction over any
civil action against the United States arising from Federal laws
governing import transactions. The court hears antidumping, product
classification, and countervailing duty matters as well as appeals
of unfair trade practice cases from the International Trade
Commission. The court was originally established in 1890; principal
offices are located in New York City, but the court is empowered to
hear and determine cases arising at any port or place within the
jurisdiction of the United States. The judges are appointed for life
by the President, subject to Senate confirmation.
Council of Logistics Management: A professional organization in the
logistics field that provides leadership in understanding the
logistics process, awareness of career opportunities in logistics
and research that enhances customer value and supply chain
performance.
Counterpurchase: This is an agreement whereby the initial exporter
buys or undertakes to find a buyer for a specified amount or value
of unrelated goods from the initial importer during a specified time
period.
Countertrade: Refers to the reciprocal and compensatory trade
agreements involving the purchase of goods or services by the seller
from the buyer of his product, or arraignments whereby the seller
assists the buyer in reducing the amount of net cost of the purchase
through some form of compensatory financing. See also Technology
Transfer.
COUNTERVAILING DUTY: A duty over and above normal duties, imposed by
the Secretary of the Treasury to counteract the economic advantage
afforded the foreign supplier (from export grants, bounties or
subsidies paid in certain countries by their government for export
promotion).
COUNTRY OF EXPORTATION (COE): Is usually, but not necessarily, the
country in which merchandise was manufactured or produced and from
which it was first exported. For example, merchandise made in
Switzerland and shipped to the United States through Frankfurt,
Germany has, as the country of exportation, Switzerland.
COUNTRY of ORIGIN: Country of origin is the country where the
merchandise was grown, mined or manufactured, in accordance with
U.S. Customs Regulations. In instances where the Country of Origin
cannot be determined, transactions are credited to the country of
shipment. Certain foreign trade reports show country subcodes to
indicate special tariff treatment afforded some imported articles.
COURIER: Attendant who accompanies shipment(s). Also, some courier
companies provide a full transportation function, without
accompanying attendants, offering door-to-door air service for
time-sensitive documents or small packages on a “same-day” or
“next-day” basis.
courier service: A fast, door-to-door service for high-valued goods
and documents. Companies usually limit service to shipments weighing
fifty pounds or less.
CPT: See Carriage and Insurance Paid to.
Crane: 1) A materials handling device that lifts heavy items. There
are two types: bridge and stacker. 2) An owner of Eagle USA.
CREDIT ARRANGEMENTS: A series of programs under which credit is
extended to shippers and consignees for the payment of charges.
CREDIT RISK INSURANCE: Insurance that covers the risk of non-payment
for delivered goods.
critical value analysis: A modified ABC analysis in which a company
assigns a subjective critical value to each item in an inventory.
cross-docking: The movement of goods directly from receiving dock to
shipping dock to eliminate storage expense.
Cross-functional team: A multifunctional group of workers (it may be
inter-departmental and/or inter-company) that works on a common set
of objectives.
CRP: See Continuous Replenishment Program.
CUBE: Slang term for volume capacity of a van trailer.
CUBE OUT: When a container has reached its volumetric capacity
before reaching the permitted weight limit.
CUBE RATE: Rate based on space instead of weight and used for light
bulky loads.
CUBIC CAPACITY: The carrying capacity within an aircraft or
container according to measurement in cubic feet.
currency adjustment factor: An added charge assessed by water
carriers for currency value changes.
CUSTOMER AUTOMATION: The use of air carrier automation equipment on
the customer's premises that aids in the processing of shipments,
i.e., airbill preparations, invoicing, weighing and tracing.
Customer driven: The end user, or customer, motivates what is
produced or how it is delivered.
customer service: Activities between the buyer and seller that
enhance or facilitate the sale or use of the seller's products or
services.
CUSTOMS: A government authority designated to regulate flow of goods
to and from a country and to collect duties levied by a country on
imports and exports. The term also applies to the procedures
involved in such collection.
Customs Bonded Warehouse: A warehouse where imported goods may be
stored for a total of three years without the payment of duty or
taxes.
Customs Broker: An individual or company licensed by the government
to enter and clear goods through Customs. The U.S. Customs Service
defines a Customs Broker, as any person who is licensed in
accordance with Part III of Title 19 of the Code of Federal
Regulations (Customs regulations) to transact Customs business on
behalf of others. Customs business is limited to those activities
involving transactions with Customs concerning the entry and
admissibility of merchandise; its classification and valuation; the
payment of duties, taxes, or other charges assessed or collected by
Customs upon merchandise by reason of its importation, or the
refund, rebate, or drawback thereof.
Customs Clearance: The procedures involved in getting cargo released
by Customs through designated formalities such as presenting import
license/permit, payment of import duties and other required
documentation by the nature of the cargo such as FCC or FDA
approval.
Customs Cooperation Council: The CCC (French: Conseil de Cooperation
Dounaire, CCD) is an international organization consisting of
representatives of about 150 countries. The Council serve as a
technical body which studies and seeks to resolve the various
countries' customs problems in an attempt to harmonize customs
operations and promote trade. The Council was established in 1950;
headquarters are in Brussels, Belgium.
Customs Cooperation Council Nomenclature: A customs tariff
nomenclature formerly used by many countries, including most
European nations but not the United States. It has been superseded
by the Harmonized System Nomenclature to which most major trading
nations, including the U.S., adhere.
CUSTOMS COURT: A U.S. Customs Services court based in New York, NY,
consisting of three 3rd party divisions to which importers may
appeal or protest classification and value decisions and certain
other actions taken by U.S. Customs.
CUSTOMS DECLARATION: A statement, oral or written, attesting to the
correctness of description, quantity, value, etc., of merchandise
offered for importation into the USA.
Customs Free Zone: See: Free Trade Zone.
Customs Import Value: This is the U.S. Customs Service appraisal
value of merchandise. Methodologically, the Customs value is similar
to f.a.s. (free alongside ship) value since it is based on the value
of the product in the foreign country of origin, and excludes
charges incurred in bringing the merchandise to the United States
(import duties, ocean freight, insurance, and so forth); but it
differs in that the U.S. Customs Service, not the importer or
exporter, has the final authority to determine the value of the
good.
CUSTOMS INFORMATION EXCHANGE (CIE): A clearinghouse of information
for U.S. Customs Service officers.
Customs Invoice: A document, required by some foreign countries'
customs officials to verify the value, quantity, and nature of the
shipment, describing the shipment of goods and showing information
such as the consignor, consignee, and value of the shipment.
Customs tariff: Schedule of charges assessed by the government on
imports/exports.
Customs Union: An agreement between two or more countries in which
they arrange to abolish tariffs and other import restrictions on
each other's goods and establish a common tariff for the imports of
all other countries. The European Community is the most well-known
example. The two primary trade effects of a customs union are: (a)
trade creation: - the shift from consumption of domestic production
toward consumption of member imports and (b) trade diversion: - the
shift from trade with non-member countries in favor of trade with
member countries.
CUSTOMS VALUATION: This is one of three methods of import valuation.
The Customs value represents the value of imports as appraised by
the U.S. Customs Service and is primarily used for the collection of
import duties. Methodologically, Customs and FAS data are similar
since both represent a value in the foreign country and exclude all
charges incurred in bringing the merchandise to the United States.
Customs valuation replaced FAS valuation beginning with the
compilation of the January 1982 data.
CUSTOMHOUSE BROKER: A broker who is certified by U.S. Customs to act
for importers and other business men in handling for them the
sequence of Customs formalities and other details attendant to the
legal and expeditious importing of goods.
CWO: See CASH WITH ORDER.
CWT: See HUNDREDWEIGHT.
CY: The term CY means the location designated by Carrier in the port
terminal area for receiving, assembling, holding, storing and
delivering containers, and where containers may be picked up by
shippers or re-delivered by consignees. No container yard (CY) shall
be a shipper's, consignee's, NVOCC's, or a forwarder's place of
business, unless otherwise provided.
CY/CFS: The term CY/CFS means containers packed by shipper of
carrier's premises and delivered by shipper to Carrier's CY, all at
shipper's risk and expense and unpacked by Carrier at the
destination port CFS.
CY/CY: The term CY/CY means containers packed by shipper off
Carrier's premises and delivered by shipper to Carrier's CY and
accepted by consignee at Carrier's CY and unpacked by consignee off
Carrier's premises, all at the risk and expense of cargo.
cycle inventory: An inventory system where counts are performed
continuously, often eliminating the need for an annual overall
inventory. It is usually set up so that A items are counted
regularly (i.e., every month), B items are counted semi-regularly
(every quarter or six months), and C items are counted perhaps only
once a year.
Cycle time: The amount of time from when a product or service is
ordered until it is received by the customer.
D/A: See DOCUMENTS
AGAINST ACCEPTANCE.
D/P: See DOCUMENTS AGAINST PAYMENT.
DAMAGE CLAIM (FREIGHT): Demand upon carrier for reimbursement for
physical injury to shipment or because shipment was not delivered
within reasonable time.
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 IATA Dangerous Goods Regulations.
Dangerous goods may be transported domestically and internationally
by air. Also see HAZARDOUS MATERIALS.
DAT: Abbreviation for “Dangerous articles tariff”.
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. See
Time Draft.
DCA: Abbreviation for “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.
DDP: See Delivered Duty PAID.
DDU- See DELIVERED DUTY UNPAID.
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. 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.
PRIVATEdecentralized authority: A situation in which a company
management gives decision-making authority to managers at many
organizational levels.
decision support system: A set of computer-oriented tools designed
to assist managers in making decisions.
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.
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.)
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). 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. The shipper thus earns a further rebate which
will not, however, be paid without an additional period of exclusive
or almost exclusive patronage with the carrier of conference. In
this way, the shipper becomes tied to the rebating carrier or
conference. Although, the deferred rebate 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.
DELCREDERE: Shifting of risk to somebody else, or acceptance by a
party other than the original creditor.
Delivered at Frontier: (DAF) (...named place): Seller delivers the
goods at the named point and place at the frontier. Means that the
seller's obligations are fulfilled when the goods have arrived at
the frontier: - but before "the customs border" of the country named
in the sales contract. The term is primarily intended to apply to
goods by rail or road but is also used irrespective of the mode of
transport.
Delivered Duty Paid (DDP) (...named place of destination): The
seller fulfills his obligation to deliver when the goods have been
made available at the named place in the country of importation. The
seller has to bear the risks and costs, including duties, taxes, and
other charges of delivering the goods thereto, cleared for
importation. Whilst the EXW term represents the minimum obligation
for the seller, DDP represents the maximum obligation. While the
term "Ex Works" signifies the seller's minimum obligation, the term
"DDP” when followed by words naming the buyer's premises, denotes
the other extreme: - the seller's maximum obligation. The term
"Deliver Duty Paid" may be used irrespective of the mode of
transport. If the parties wish that the seller should clear the
goods for import but that some of the cost payable upon the import
of the goods should be excluded: - such as value added tax (VAT)
and/or other similar taxes: - this should be made clear by adding
words to this effect (e.g., "exclusive of VAT and/or taxes").
Delivered Duty Unpaid (DDU) (...named place of destination): The
seller fulfills his obligation to deliver when the goods have been
made available at the named place in the country of importation. The
seller has to bear the costs and risks involved in bringing the
goods thereto (excluding duties, taxes, and other official charges
payable upon importation as well as the costs and risks of carrying
out customs formalities). The buyer has to pay any additional costs
and to bear any risks caused by his failure to clear the goods for
import in time. Basically, referring to DDP except buyer pays for
the import duty.
Delivered Ex Quay (Duty Paid) (DEQ) (...named port of destination):
The seller fulfills his obligation to deliver when he has made the
goods available to the buyer on the quay (wharf) at the named port
of destination, cleared for importation. The seller has to bear all
risks and costs including duties, taxes and other charges of
delivering the goods thereto.
Delivered Ex Ship (DES) (...named port of destination): The seller
fulfills his obligation to deliver when the goods have been made
available to the buyer on board the ship uncleared for import at the
named port of destination. The seller has to bear all the costs and
risks involved in bringing goods to the named port of destination.
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 Verification Certificate: The U.S. Customs Service defines
a DVC as a form used to track imported merchandise from the custody
of the importer to the custody of a manufacturer and is used to
substantiate a manufacturing drawback claim. The DVC is also known
as a Certificate of Delivery (Customs Form 331). An export license
may be issued with a requirement for delivery verification by
Customs in the receiving country. When delivery verification is
required by a foreign government for goods imported into the U.S.,
the U.S. Customs Service will certify a delivery verification
certificate (Form ITA-647). A U.S. export license may require
submission of a similar form from an importing country.
DELTA NU ALPHA: A transportation fraternity of transportation and
traffic practitioners.
DEMURRAGE: The detention of containers by shippers or receivers of
freight beyond a specified grace period. In air freight, the
airlines tender carrier owned containers to the customer for loading
and unloading of the unit. In the event the container is not
returned to the carrier within a specified time (usually 36-48
hours) a charge shall be assessed by the carrier for each 24-hour
period or fraction thereof beyond the allowed time. Similar
processes apply for motor, rail and ocean carriage. Detention means
the same thing for motor carriers. Also the excess time taken for
loading or unloading a vessel, thus causing delay of scheduled
departure. Demurrage refers only to situations in which the charter
or shipper, rather than the vessel's operator, is at fault.
DENSITY: A physical characteristic measuring a commodity's mass per
unit volume or pounds per cubic foot; an important factor in rate
making, since density affects the utilization of a carrier's
vehicle. Weight per cubic foot or kilo per meter of space occupied
by the article. The cubage of loose articles or pieces, or packaged
articles of a rectangular, elliptical or square shape on one plane
shall be determined by multiplying the greatest straight line
dimensions of length, width and depth in inches, including all
projections, and dividing the total by 1728 (to obtain cubic feet).
The density is the weight of the article divided by the cubic feet
thus obtained. See also dimensional weight.
density rate: A rate based upon the density and shipment weight.
Deposit of Estimated Duties: This refers to antidumping duties which
must be deposited upon entry of merchandise which is the subject of
an antidumping duty order for each manufacturer, producer or
exporter equal to the amount by which the foreign market value
exceeds the United States price of the merchandise.
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.
DEPARTMENT OF TRANSPORTATION (DOT): An executive department of the
U.S. Government established by the Department of Transportation Act
of 1966 (80 Stat 931) for the purpose of developing national
transportation policies. As a result of the Airline Deregulation Act
of 1978, the DOT acquired many of the functions of the CAB. For
information: 400 7th Street SW, Washington, DC 20590.
DEQ: See Delivered Ex Quay.
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: See Delivered Ex Ship.
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.
Destination Control Statement: Any of various statements that the
U.S. government requires to be displayed on export shipments and
that specify the destination for which export of the shipment has
been authorized.
Detention- See DEMURRAGE. The charge a motor carrier assesses when a
shipper or receiver holds a truck or trailer beyond the free time
the carrier allows for loading or unloading.
DEVALUATION: The official lowering of the value of one country’s
currency in terms of one or more foreign currencies.
DEVANNING: The discharge of cargo from a container.
DGR: Dangerous Goods Requirement.
DIFFERENTIAL: 1) Amount added to/deducted from a base rate to make
rate to/from some other point or via another route. 2) Part of power
train of vehicle containing gears that convert rotation of drive
shaft to turn wheels/axles.
Dim Weight: See Dimensional Weigh.
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. Some commodities, such as
machinery, have a relatively high density. Others, like ladies hats,
have a relatively low density. Hence, the Dimensional Weight Rule
was developed as a practice applicable to low density shipments
under which the transportation charges are based on a cubic
dimensional weight rather than upon actual weight. Examples in air
freight: One pound for each 194 cubic inches of the shipment in the
case of most domestic air freight; one pound for each 266 cubic
inches of cut flowers or nursery stock shipments; and one pound for
each 194 cubic inches of most international shipments. Some carriers
give discounts for shipments of high-density goods.
Direct Offset: Involves compensation in related goods and usually
involves some form of co-production, license or joint venture. See
also OFFSET.
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: A logistics strategy to improve services and
lower warehouse inventories.
DISC: Abbreviation for and see DOMESTIC INTERNATIONAL SALES
CORPORATION.
DISCOUNT: An allowance from the quoted price of goods made usually
by the deduction of a certain percentage from the invoice price. See
also FINANCIAL DISCOUNT.
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.
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 resource planning: A computer system that uses MRP
techniques to manage the entire distribution network and to link it
with manufacturing planning and control.
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. Also see ASSEMBLY SERVICE.
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.
Distribution License: The DL is a Special License that allows the
holder to make multiple exports of authorized commodities to foreign
consignees who are approved in advance by the Bureau of Export
Administration. The procedure also authorizes approved foreign
consignees to re-export among themselves and to other approved
countries. Applicants and consignees must establish Internal Control
Programs to ensure the proper distribution of items under the DL.
Each program must include comprehensive procedures for ensuring that
the items exported will be used only for legitimate end-uses.
DIVERSION: 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.
DOC- Abbreviation for “Department of Commerce”
DOCK: 1) Area at warehouse/manufacturing plant where goods are
loaded, unloaded and sorted. 2) Slip/waterway between two
projections to receive vessels while taking on or discharging cargo
or passengers.
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.
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. Also
D/A.
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.
Also D/P.
DoD: Abbreviation for “Department of Defense”
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 INTERNATIONAL SALES CORPORATION: An export sales
corporation established by a US Company under US government
authorization to promote trade from the USA by giving the exporter
economic advantages not available outside such framework.
domestic trunk line carrier: A classification for air carriers that
operate between major population centers. These carriers are now
classified as major carriers.
DOMICILE: The place where a draft or acceptance is made payable.
DOT: See Department of Transportation.
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.
Download: To merge temporary files containing a day's or week's
worth of information with the main data base in order to update it.
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 re-exportation.
DRAFT: 1) See BILL OF EXCHANGE. 2) Buyer's payment for goods. 3)
Depth of water necessary to float vessel.
Draft Bill of Exchange: A written, unconditional order for payment
from one person (the drawer) to another (the drawee). It directs the
drawee to pay a specified sum of money, in a given currency, at a
specific date to the drawer. A Sight Draft calls for immediate
payment (on sight) while a Time Draft calls for payments at a
readily determined future date.
DRAW: The addressee of a draft. The person on whom the draft is
drawn.
DRAWBACK: Refund of customs duties paid on material imported and
then later exported. This feature of U.S. Customs law permits a
refund of 99% of the duty paid for articles manufactured or produced
in the United States with the use of imported merchandise and are
later exported. Drawback regulations and procedures vary among
countries.
Drawback System: The Drawback System, a part of Customs' Automated
Commercial System, provides the means for processing and tracking of
drawback claims.
Drawee: The individual or firm on whom a draft is drawn and who owes
the indicated amount.
Drawer: The individual or firm that issues or signs a draft and thus
stands to receive payment of the indicated amount from the drawee.
DRAYAGE: Transportation of freight by truck, primarily in local
cartage.
driving time regulations: U.S. Department of Transportation rules
that limit the maximum time a driver may drive in interstate
commerce; the rules prescribe both daily and weekly maximums.
Drop: A situation in which an equipment operator deposits a trailer
or boxcar at a facility at which it is to be loaded or unloaded.
DROP-OFF: Delivery of a shipment(s) to an air or ocean carrier for
transportation.
DROP SHIPMENT: Shipment sent directly from manufacturer to retailer
or industrial customers, even though ordered through wholesaler who
takes title to goods and unusual wholesale discount.
Dry Lease: The rental of a "clean" aircraft without crew, ground
staff or supporting equipment.
DST: The acronym meaning "double stack train" service, which is the
transport rail between two points of a trainload of containers with
two containers, one on top of the other, per chassis.
DUAL OPERATION: A motor carrier that has both COMMON and CONTRACT
CARRIER operating authority.
Dual Pricing: The selling of identical products in different markets
for different prices. This often reflects dumping practices.
DUAL-RATE SYSTEM: An international water carrier pricing system
whereby a shipper signs an exclusive-use agreement with the
Conference and pays a lower rate (10 to 15 percent) than non-signing
shippers for an identical shipment.
Dumping: The sale of a commodity in a foreign market at less than
fair value. Dumping is generally recognized as unfair because the
practice can disrupt markets and injure producers of competitive
products in an importing country. Article VI of the GATT permits
imposition of antidumping duties equal to the difference between the
price sought in the importing country and the normal value of the
product in the exporting country. With price-to-price dumping, the
foreign producer can use its sales in the high-priced market
(usually the home market) to subsidize its sales in the low-priced
export market. The price difference is often due to protection in
the high-priced market. Price-cost dumping indicates that the
foreign supplier has a special advantage. Sustained sales below cost
are normally possible only if the sales are somehow subsidized.
Dumping Margin: The amount by which the imported merchandise is sold
in the United States below the home market or third country price or
the constructed value (that is, at less than its "fair value"). For
example, if the U.S. "purchase price" is $200 and the fair value is
$220, the dumping margin is $20. This margin is expressed as a
percentage of the United States price. In this example, the margin
is 10 percent.
DUNNAGE: Cardboard, lumber or other filler material used to
stabilize shipment. Does not include packaging.
DUTY: A tax imposed on imports by the Customs authority of a
country. Duties are generally based on the value of the goods (ad
valorem duties), weight or quantity (specific duties) or a
combination of value and other factors (compound duties). Also known
as a TARIFF. Also “Specific duty”: An assessment on the weight or
quantity of an article without preference to its monetary value or
market price and “Duty Drawback”: A recovery in whole or in part of
duty paid on imported merchandise at the time of exportation, in the
same or different form.
dw: Abbreviation for “Deadweight ton” (tons of 2,240 lbs.)
dwc: Abbreviation for “Deadweight for cargo”
DWT: See Deadweight TONNAGE
Dynamic Asian Economies: A collective reference, currently
comprising six Asian countries: Hong Kong, Korea, Malaysia,
Singapore, Taiwan, and Thailand.
EAA: See Experimental
Aircraft Association.
EAON: Abbreviation for “Except as otherwise noted”
ECAC: See European Civil Aviation Conference.
Economic Value Added: Measuring the true profitability of an
operation by focusing on the total cost of assets, operating costs,
inventories, etc.
Economic Zones: Economic zones are designated regions in a country
which operate under rules that provide special investment
incentives, including duty free treatment for imports, for
manufacturing plants which re-export their products. The term
"economic zone" is currently used in the People's Republic of China
and the former Soviet Union.
Entry Summary Selectivity System: The Entry Summary Selectivity
System, a part of Customs' Automated Commercial System, provides an
automated review of entry data to determine whether team or routine
review is required. Selectivity criteria include an assessment of
risk by importer, tariff number, country of origin, manufacturer,
and value. Summaries with Census warnings, as well as quota,
antidumping and countervailing duty entry summaries are selected for
team review. A random sample of routine review summaries is also
automatically selected for team review.
ECR: See Efficient consumer response.
EDI: Electronic Data Interchange. Enables computers to talk to
computers. Although an investment in computer hardware and software
is necessary, EDI allows companies to engage in electronic commerce,
exchanging information such as purchase orders to better coordinate
their logistics operations. Standardized formats define how
information is encoded and permit the flow of data from one database
in a company to another. Of particular importance to distribution
operations has been the development of the EDI-based advance
shipment notice. This tells a consignee what to expect in a shipment
before the truck even arrives.
EDIFACT: Electronic Data Interchange for Administration, Commerce
and Transportation, is an international syntax used in the
interchange of electronic data. Customs uses EDIFACT to interchange
data with the importing trade community.
EEC: See EUROPEAN ECONOMIC COMMUNITY.
Efficient consumer response: A supply chain initiative for the
grocery industry. ECR is a consumer-driven system of replenishment
in which high-quality products and accurate information flow through
a paperless (EDI) system between all distribution points from
manufacturing line to checkout counter.
Efficient foodservice response: A supply chain initiative for the
foodservice industry, a.k.a. ECR without the coupons. Growth in the
quick-service restaurant and correctional industries has provided
EFR with a solid foundation for growth.
EFR: See Efficient foodservice response
EIN: Employer Identity Number.
EIR: See EQUIPMENT INTERCHANGE RECEIPT.
Electronic Data Interchange: See EDI
Electronic Point of Sale: A computerized system for recording sales
at retail checkouts.
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 vessel in port by order of government usually issued in
time of war or hostilities.
Empty Leg: Results from an aircraft primarily chartered outbound
having cargo capacity inbound or vice versa. A cheap form of
airfreight.
ENDORSE: Sign one’s name on back of document such as a check or Bill
of Lading.
Endorsement in Blank: Commonly used on a bank check, an endorsement
in blank is an endorsement to the bearer. It contains only the name
of the endorser and specifies no particular payee. Also, a common
means of endorsing Bills of Lading dawn to the order of the shipper.
The bills are endorsed "For..." (see Bill of Lading, Order).
Entrepot: An intermediary storage facility where goods are kept
temporarily for distribution within a country or for re-export.
Entry Summary Selectivity System: The Entry Summary Selectivity
System, a part of Customs' Automated Commercial System, provides an
automated review of entry data to determine whether team or routine
review is required. Selectivity criteria include an assessment of
risk by importer, tariff number, country of origin, manufacturer,
and value. Summaries with Census warnings, as well as quota,
antidumping and countervailing duty entry summaries are selected for
team review. A random sample of routine review summaries is also
automatically selected for team review.
Entry Summary System: An entry is the minimum amount of
documentation needed to secure the release of imported merchandise.
The Entry Summary System, a part of Customs' Automated Commercial
System, contains data on release, summary, rejection, collection,
liquidation, and extension or suspension.
Entry Value: The U.S. Customs Service defines entry value (or
entered value) as the value reflected on the entry documentation
submitted by the importer. (see 19 CFR 141.61 for how shown on
entry.)
EPOS: See Electronic Point of Sale (EPOS): a computerized system for
recording sales at retail checkouts.
EQUIPMENT INTERCHANGE RECEIPT (EIR): Form used by parties
delivering/receiving containers or container equipment. Used for
container control an damage purposes.
ERAA: See European Regional Airlines Association.
ESTOPPEL: Legal document used in a court of law to establish
liability.
ETA: Abbreviation for “Estimated time of arrival”. Then, It normally
takes 4 hours for carriers to Break Bulk then ready to be picked up
by forwarders along with customs release notification.
ETD: Abbreviation for “Estimated time of departure”. The cut-off
time for carriers' cargo ramp handling is normally two hours ahead
of ETD. However, the freight forwarder’s' consolidation cut-off time
may vary depending on each forwarder's operations respectively.
ETIOLOGIC AGENTS: As defined in the HAZARDOUS MATERIAL REGULATIONS
in 49 CFR. Viable microorganisms or their toxins which may cause
human disease.
EURO DOLLAR: U.S. funds deposited in banks outside the USA. This
usually means banks in Europe or the European Union.
European Regional Airlines Association (ERAA): This organization is
the voice of Europe’s regional air transport industry.
EUROCONTROL: Founded in 1960 for overseeing air traffic control in
the Upper Air-space of Member States, this organization has, as its
most important goal, the development of a coherent and coordinated
air traffic control system in Europe.
European Civil Aviation Conference (ECAC): An inter-governmental
organization founded in 1955. The ECAC has today 37 Member States.
It’s aim is to promote the continued development of a safe,
efficient and sustainable European air transport system.
European Community: A regional organization created in 1958
providing for gradual elimination of intra-regional customs duties
and other trade barriers, applying a common external tariff against
other countries, and providing for gradual adoption of other
integrating measures, including a Common Agricultural Policy (CAP)
and guarantees of free movement of labor and capital. The original 6
members were Belgium, France, West Germany, Italy, Luxembourg, and
the Netherlands. Denmark, Ireland, and the United Kingdom became
members in 1973; Greece acceded in 1981; Spain and Portugal in 1986.
The term European Community (EC) refers to three separate regional
organizations which operate under separate treaties: European Coal
and Steel Community (ECSC), established in 1952; European Atomic
Energy Community (EURATOM), established in 1958, and European
Economic Community (EEC), established in 1958. Since 1967, the
European Community have been served by four common institutions: -
the EC Commission, the EC Council, the European Parliament, and the
Court of Justice of the European Community. The present 12 member
states of the EC are also members of the ECSC and Euratom. While the
expression "European Community" (or "EC") was meant to refer to the
three Communities, frequent use of the expression "European
Community" (or "EC") has become common as a reference to the
European Economic Community (EEC). Prior to November 1, 1993 (the
date on which the Maastricht Treaty on European Union entered into
force), the acronym "EC" was used as a reference to "European
Community" and "European Communities." Part I, Article I of the
Maastricht Treaty on European Union formalized "EC" as a reference
to "European Community." The Treaty also introduced the term
"European Union" as a broader legal entity than the European
Community.
EUROPEAN ECONOMIC COMMUNITY (EEC): Common market nations of Europe.
European Union: The EU is an umbrella reference to the European
Community (EC) and to two European integration efforts introduce by
the Maastricht Treaty: Common Foreign and Security Policy (including
defense) and Justice and Home Affairs (principally cooperation
between police and other authorities on crime, terrorism, and
immigration issues). The term "European Union" was introduced in
November 1993 (when the Maastricht Treaty on European Union entered
into force). The term "European Community" (EC) continues to exist
as a legal entity within the broader framework of the EU.
EX: As a prefix, means “out” or “from” when used in conjunction with
a noun or location. Means all transportation charges and risks of
loss/damage are chargeable to buyer when goods are delivered to
carrier at "ex" location. When used in pricing terms such as "Ex
Factory" or "Ex Dock," it signifies that the price quoted applies
only at the point of origin (in the two examples, at the seller's
factory or a dock at the import point). In practice, this kind of
quotation indicates that the seller agrees to place the goods at the
disposal of the buyer at the specified place within a fixed period
of time.
Ex Quay: "Ex Quay" means that the seller makes the goods available
to the buyer on the quay (wharf) at the destination named in the
sales contract. The seller has to bear the full cost and risk
involved in bringing the goods there. There are two "Ex Quay"
contracts in use: (a) Ex Quay "duty paid" and (b) Ex Quay "duties on
buyer's account" in which the liability to clear goods for import is
to be met by the buyer instead of by the seller.
Ex Ship: "Ex Ship" means that the seller will make the goods
available to the buyer on board the ship at the destination named in
the sales contract. The seller bears all costs and risks involved in
bringing the goods to the destination.
Ex Works (EXW): This represents the minimum risk and cost for the
supplier and the maximum risk and cost for the buyer. The seller's
only responsibility is to make the goods available at his premises.
He is not responsible for loading the goods on the vehicle provided
by the buyer, unless otherwise agreed. The buyer bears all costs and
risks involved in taking the goods from the seller's premises.
EXCEPTION RATINGS: Rates set at a certain percentage above the
general commodity rates because they apply to commodities that
require special handling, such as live animals, human remains, or
automotive vehicles.
EXCESS VALUATION: See DECLARED VALUE.
EDI or EDIFACT: Electronic Data Interchange for Administration,
Commerce and Transport, from the UN-backed electronic data
interchange standards body, to create electronic versions of common
business documents that will work on a global scale. One digital
document under consideration, the International Forwarding and
Transport Message will do the jobs of six different electronic
messages currently in use.
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 the ICC under
provisions of the Interstate Commerce Act. Generally seafood or
agricultural commodities.
EXPEDITING: Moving shipments through regular channels at accelerated
pace. An example of dispatching LTL quantities on a single truck for
quick delivery.
Experimental Aircraft Association (EAA): This organization is
dedicated to serving all of aviation by fostering and encouraging
individual participation, high standards and access to the world of
flight in an environment that promotes freedom, safety, family and
personal fulfillment.
EXPLOSIVES: As defined in the HAZARDOUS MATERIAL REGULATIONS in 49
CFR. Any chemical compound, mixture or device for which the function
is an explosion. Further defined into Class A, B, C and Blasting
Agents.
Export Administration Act: The EAA of 1979, as amended, authorizes
the President to control exports of U.S. goods and technology to all
foreign destinations, as necessary for the purpose of national
security, foreign policy, and short supply. As the basic export
administration statute, the EAA is the first big revision of export
control law since enactment of the Export Control Act of 1949. The
EAA is not a permanent legislation; it must be reauthorized: -
usually every three years. There have been reauthorizations of the
EAA in 1982, 1985 (the Export Administration Amendments Act), and
1988 (Omnibus Amendments of 1988) which have changed provisions of
the basic Act. The Act was extended in 1993 until June 30, 1994.
EXPORT BROKER: An individual or company that brings buyers and
sellers together for a fee but does not take part in the actual
sales transaction.
Export Control Classification Number: Every product has an export
control classification number (formerly: Export Control Commodity
Number) within the Commerce Control List. Each ECCN consists of five
characters that identify the category, product group, type of
control, and country group level of control.
Export Declaration: A form to be completed by the exporter or their
authorized agent and filed in triplicate by a carrier with the
United State Collector of customs at the point of exit. It serves a
twofold purpose: 1) Primarily, it is used by the U.S. Bureau of
Census for the compilation of export statistics on United States
foreign trade (For this reason an export declaration is required for
practically all shipments from the United States to foreign
countries and the United States possessions, except for mail
shipments of small value, or for those of a non commercial
character) and 2) The declaration also serves as an export control
document because it must be presented, together with the export
license, to the United States Customs at the port of export. If the
goods may be exported under general export license, this fact must
be stated on the export declaration. See also SHIPPER’S EXPORT
DECLARATION
EXPORT CONTROL: An exercise control over exports for statistical and
strategic purposes. U.S. Customs enforces the export control laws
for the U.S. Department of Commerce and other Federal agencies.
EXPORT LETTER OF CREDIT: When importer has arranged with bank for
letter of credit financing of purchases, importer applies for
issuance of individual letters of credit to cover purchase contracts
as made.
Export License: A government document (also known as an "Individual
Validated License") authorizing exports of specific goods in
specific quantities to a particular destination. This document may
be required in some countries for most or all exports and in other
countries only under special circumstances. An export license is
often required if a government has place embargoes or other
restrictions upon exports.
EXPORT MANAGEMENT COMPANY: A private company that serves as the
export department for several manufacturers soliciting and
transacting export business on behalf of its clients in return for a
commission, salary, or retainer plus commission.
Export Processing Zones: EPZs are a form of free trade zone which
provide incentives for industrial or commercial export activity.
Export processing zones are located in developing countries and are
usually in defined areas, industrial parks, or facilities which
provide free trade zone benefits and usually offer additional
incentives, such as exemption from normal tax and business
regulations. The zones, which began appearing around 1975, are
sometimes referred to as Special Economic Zones or Development
Economic Zones.
Export Revolving Line of Credit: The Export Revolving Line of
Credit, ERLC, is a form of financial assistance provided by the
Small Business Administration (SBA). The ERLC guarantees loans to
U.S. firms to help bridge the working capital gap between the time
inventory and production costs are disbursed until payment is
received from a foreign buyer. SBA guarantees 85 percent of the ERLC
subject to a $750,000 guarantee limit. The ERLC is granted on the
likelihood of a company satisfactorily completing its export
transaction. The guarantee covers default by the exporter, but does
not cover default by a foreign buyer; failure on the buyer's side is
expected to be covered by letters of credit or export credit
insurance. Under SBA's ERLC program, any number of withdrawals and
repayments can be made as long as the dollar limit on the line of
credit is not exceeded and disbursements are made within the stated
maturity period (not more than 18 months). Proceeds can be used only
to finance labor and materials needed for manufacturing, to purchase
inventory to meet an export order, and to penetrate or develop
foreign markets. Examples of eligible expenses for developing
foreign markets include professional export marketing advice or
services, foreign business travel, and trade show participation.
Under the ERLC program, funds may not be used to purchase fixed
assets.
EXPORT SERVICE: Airlines, ocean carriers and freight forwarders
perform, at the request of shippers, many services relating to the
transfer, storage and documentation of freight destined for export.
The same is true of imports. A narrower application of the term
'Export Service" refers to the air movement of goods having a
subsequent movement by ocean vessel. Some airlines have a tariff on
such traffic which sets forth a rate covering the air
transportation, from airport of origin to seaport and all relevant
transfer and documentation procedures. On freight arriving in the
USA via an ocean vessel and having a subsequent movement by air,
some airlines have a similar tariff program known as "Import
Service”
EXPORT TRADING COMPANY: Similar to an export management company.
Exporter's Certificate of Origin: The U.S. Customs Service defines
an Exporter's Certificate of Origin (also known as Customs Form 353)
as a document completed by the exporter, certifying that the goods
described therein are eligible for a preferential rate of duty under
some trade program such as the U.S.-Canada Free-Trade Agreement.
(See 19 CFR 10.37(d)(1).)
Express: Premium-rated service for urgent deliveries.
External Dimensions: The extreme outside measurements, including any
handles or other protrusions, of a ULD.
External Volume, ULD: The amount of space a ULD occupies in an
aircraft calculated using the extreme external dimensions of the
unit.
Euro Dollars: Euro Dollars are deposits of U.S. dollars in banks or
other financial institutions which are located outside the borders
of the United States. In every other way, Euro Dollars are identical
to any other U.S. dollars. These same dollars are also called
offshore dollars, or depending where the money is on deposit.
F&D: Abbreviation for
“Freight and Demurrage”.
FAA: See FEDERAL AVIATION ADMINISTRATION.
FACE VALUE: Nominal value on coin, paper currency or other
negotiable document or instrument; may be lower or higher than the
market value.
FACILITATION: Programs to expedite the flow of international
commerce through modernizing and simplifying Customs procedures,
duty collection, and other procedures to which inter-national cargo
and passengers are subject. The ATA Facilitation Committee pursues
this work with Government agencies in the United States and other
countries. Examples of progress in facilitation include the
elimination of certain export declaration requirements, more
expeditious release of cargo from Customs and clearance of cargo at
point of origin.
FACTOR: Agent appointed to sell goods on commission. Also known as a
COMMISSION MERCHANT.
FAIR MARKET VALUE: The sum that a sale of an article would bring
under normal market conditions.
FAK: See “Freight All Kinds”. See also ALL-COMMODITY RATE and
GENERAL COMMODITY RATE.
Fathom: Nautical term. Conversion equivalents: 6 feet or 1.83
meters.
Fcsrcc: Abbreviation for “Free of capture, seizure, riots and civil
commotions”.
FC&S: Abbreviation for “Free of Capture & Seizure” A clause
excluding war risks from the Marine Policy. War risks can be covered
by issuing a separate War Policy with an additional premium being
charged.
FCL: Abbreviation for “Full Container Load”. The maximum permissible
weight for the value of the cargo contained in a container.
FDA: The U.S. Food and Drug Administration.
FEDERAL AVIATION ADMINISTRATION (FAA): Created under the Federal
Aviation Act of 1958 as the Federal Aviation Agency and charged with
the responsibility of promulgating operational standards and
procedures for all classes of aviation in the USA. With the creation
of the cabinet level, Department of Transportation in 1966, the FAA
became a unit within the new Department and received the new
designation Federal Aviation Administration. The FAA Administrator,
however, continues to be a presidential appointee and the FAA
remains a separate entity with most of its former functions. In the
field of air cargo, the FAA promulgates certain stress standards
which must be met in the tiedown of cargo in flight. The FAA is the
element of the U.S. government with primary responsibility for the
safety of civil aviation. Major functions include regulating civil
aviation to promote safety and fulfill the requirements of national
defense, encouraging and developing civil aeronautics, including new
aviation technology, developing and operating a common system of air
traffic control and navigation for both civil and military aircraft,
research and development with respect to the National Airspace
System and civil aeronautics, developing and implementing programs
to control aircraft noise and other environmental effects of civil
aviation and regulating U.S. commercial space transportation. For
information: 800 Independence Avenue SW, Washington, DC 20591
FEDERAL HIGHWAY ADMINISTRATION (FHWA): The division of the U.S.
Department of Transportation in charge of the nation’s highway
system which administers federal aid for highway construction,
develops safety standards and programs and has jurisdiction over the
safety of commercial motor carriers engaged in interstate commerce.
FEDERAL MARITIME COMMISSION (FMC): Established in 1961 as an
independent government agency responsible for the regulation of
shipping in the foreign trades of the United States. The
Commission's five members are appointed by the President with the
advice and consent of the Senate. The FMC is headquartered at 800
North Capitol Street, N.W., Washington, D.C. 20573 with five Area
Representatives around the USA. The FMC's jurisdiction encompasses
many facets of the maritime industry. However, it has no
jurisdiction over vessel operations, navigation, vessel
construction, vessel documentation, vessel inspection, licensing of
seafaring personnel, maintenance of navigational aids or dredging.
These activities are handled by other federal, state and local
agencies. The principal shipping statutes administered by the FMC
are the Shipping Act of 1984 (46 USC app. 1710 et seq.), the Foreign
Shipping Practices Act of 1988 (46 USC app. 1701 et seq.), and
section 19 of the Merchant Marine Act, 1920 (46 USC app. 876). The
FMC's regulations are published in 46 CFR 500 et seq. The FMC
controls the services, practices and agreements of international
water carriers and non-contiguous domestic water carriers.
FEDERAL REGISTER: Government publication that prints rules and
regulations of federal agencies on a daily basis. In most cases,
rules and regulations must be published to become legal.
FEEDER: In intermodal context, a pickup or delivery vehicle or ship.
FEEDER SERVICES: Coastal movement of loaded or empty containers on
board smaller container vessels which coordinate with a “mother
ship” for the ocean voyage.
FEU: Abbreviation for a “Forty-Foot Equivalent Unit” or a 40 foot
dry cargo container.
FHWA: See FEDERAL HIGHWAY ADMINISTRATION.
FIATA: See International Federation of Freight Forwarders'
Associations.
FIB: Abbreviation for “Free in Bunkers” or “Free into Barge”.
FIFO: Abbreviation for “First-In-First-Out”. Warehouse and
accounting term meaning the first items stored are the first items
used.
Fifth Freedom Flight: Where cargo is carried by an airline between
two countries in neither of which it is based.
FILING OF TARIFFS: Requirement that
tariffs/supplements/re-issues/other schedules be in the hands of the
regulating body such as the FMC or ICC at specific time prior to
effective date.
FINANCIAL DISCOUNT: A deduction form the face value of commercial
paper such as Bills of Exchange and acceptance in consideration of
receipt by the seller of cash before maturity date. The rates of
discount vary according to the state of the money market, the
financial standing of the drawee to accept a draft or to pay it when
due.
FISCAL YEAR: Annual period established for accounting purposes in
business or government. May start at any time in the calendar year.
Flag Carrier: An airline of one national registry whose government
gives it partial or total monopoly over international routes.
Flag of convenience: A shipowner registers a ship in a nation that
offers conveniences in the areas of taxes, manning and safety
requirements. Liberia and Panama are the two nations best known.
FLAMMABLE LIQUID: As defined in the HAZARDOUS MATERIAL REGULATIONS
in 49 CFR. Any liquid other than an EXPLOSIVE having a flash point
below 100 degrees F except liquids which meet definition of compress
gas or that are part of a mixture where other components with flash
points above 100 degrees F make up at least 99% of the mixture.
FLAMMABLE SOLID: As defined in the HAZARDOUS MATERIAL REGULATIONS in
49 CFR. Any solid material other than an EXPLOSIVE which under
conditions incidental to transportation is liable to cause fires
through friction, retained heat from manufacturing/processing or
which can be ignited readily.
FLASH POINT: Minimum temperature at which substance gives off
flammable vapors which will ignite when they come in contact with a
spark or flame.
FLASH VESSELS: Shallow draft vessels suitable to carry 8 to 15
barges at a time towed by seagoing vessels.
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.
Flexible specialization: A strategy based on multi-use equipment,
skilled workers and innovative senior management to accommodate the
continuous change that occurs in the marketplace.
Flight Safety Foundation: An independent, nonpolitical, nonprofit
organization offering an objective view of aviation safety
developments. The Foundation uses the Internet to maximize
dissemination of its publications, seminars, special reports and
calendar of events.
FLOOR LOAD RATING: Weight that can be safely supported by floor.
Expression in pound per square foot.
FMC: See FEDERAL MARITIME COMMISSION.
FILS: French for “Sons” at the end of a business company’s name.
FOB: See FREE ON BOARD
FOD : Abbreviation of “Free of Damage”.
FOIA: Abbreviation for the US “Freedom of Information Act”
FOIR: Abbreviation for “Freedom of Information Request”
Folded: An article folded in such a manner as to reduce its bulk 33
1/3% from its normal shipping cubage when not folded.
FOOTPRINT: Slang expression for the amount of tire tread on the
ground.
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 the
provisions of an agreement.
FORE AND AFT: 1) At bow and stern, all over ship. 2) The direction
on a vessel parallel to the centerline.
Foreign Access Zone: FAZ is a term adopted by Japan for its form of
free trade zone. FAZs are the outgrowth of Japan's effort to improve
its trade balance and to stimulate regional economic areas. FAZs are
intended to be established around airports and seaports, with
facilities (warehouses, cargo-sorting, distribution, import
processing, wholesale, design-in centers, exhibition halls) on an
international scale. The FAZ concept: - which emphasizes imports
rather than the processing and job creation: - extends from the July
1992 Law on Extraordinary Measures for the Promotion of Imports and
the Facilitation of Foreign Direct Investment in Japan. Passage of
the law is linked to the Structural Impediments Initiative (SII).
Foreign Exports: Exports of foreign merchandise (re-exports),
consist of commodities of foreign origin which have entered the
United States for consumption or into Customs bonded warehouses or
U.S. Foreign Trade Zones, and which, at the time of exportation, are
in substantially the same condition as when imported.
FOREIGN FLAG: A reference to a carrier not registered in the USA
that flies the American flag. The term applies to air and sea
transportation.
FOREIGN TRADE ZONE: FTZs are the U.S. form of free trade zones.
These zones are restricted-access sites in or near ports of entry,
that operate under public utility principles to create and maintain
employment by encouraging operations in the U.S. which might
otherwise have been carried on abroad. Goods brought into a zone for
a bona fide Customs reason are exempt from state and local ad
valorem tax. The zones are licensed by the Commerce Department's
Foreign-Trade Zones Board and operate under the supervision of the
Customs Service. Quota restrictions do not normally apply to foreign
goods stored in zones, but the Board can limit or deny zone use in
specific cases on public interest grounds. Domestic goods moved into
a zone for export may be considered exported upon entering the zone
for purposes of excise tax rebates and drawback. A foreign trade "subzone"
is a non-contiguous zone site located at a manufacturing plant.
Foreign Trade Zone Entry: A form declaring goods which are brought
duty free into a Foreign Trade Zone for further processing or
storage and subsequent exportation.
FORKLIFT: Freight/material handling vehicle used in loading and
unloading.
FORMAL ENTRY: Generally, a formal entry is filed when an informal
entry is inappropriate, usually when the value of a shipment exceeds
US$1,250. It must be noted that U.S. Customs may require a formal
entry at any time, and some commodity restrictions apply (i.e. All
textile products, antidumping, plastic or rubber articles and
merchandise having Visa or Quota conditions).
FORWARDING AGENT: Individual or company specializing in shipping
goods. Payments made for insurance and other expenses can be charged
to foreign buyers. See also FREIGHT FORWARDER.
FOUL BILL OF LADING: A receipt for goods issued by a carrier with
indication that the goods were damaged when received from the
shipper.
FPA: Abbreviation for “Free of Particular Average” A marine
insurance term. A term used in marine insurance policies to indicate
that while the underwriter is unwilling to assume liability for
ordinary partial losses due to the peculiar qualities of the
particular article or to its form of package, he is willing to bear
partial losses, the direct result of stranding, sinking, burning,
collision, or other named peril
FPAAC: Abbreviation for “Free of Particular Average, American
Conditions. An marine insurance term. The American form of clause
commonly used, as distinguished from that used by the English
underwriters. Under the American clause the underwriter does not
assume responsibility for partial losses unless caused by stranding,
sinking, burning or collision with another vessel whereas under the
English clause, the underwriter assumes responsibility for partial
losses if the vessel be stranded, sunk, burnt or in collision even
though such an event did not actually cause the damage suffered by
the goods. Conditions.
Free Alongside Ship (FAS) (...named port of shipment): The seller
fulfills his obligation to deliver when the goods have been placed
alongside the vessel on the quay or in lighters at the named port of
shipment. This means that the buyer has to bear all costs and risks
of loss or of damage to the goods from that moment. The FAS term
requires the buyer to clear the goods for export. FAS is also a
method of export and import valuation.
Free Carrier (FCA) (...named place or point): The seller fulfills
his obligation to deliver when he has handed over the goods, cleared
for export, into the charge of the carrier named by the buyer at the
named place or point. This term replaces the former "FOB named
inland port" to designate the seller's responsibility for the cost
of loading goods at the named shipping point. It may be used for
multi-modal transport, container stations, and any mode of
transport, including air.
FREE DOMICILE: A term used in international transportation where the
shipper pays all transportation charges and any applicable duties
and/or taxes.
Free In: A pricing term indicating that the charterer of a vessel is
responsible for the cost of loading goods onto the vessel.
Free In and Out: A pricing term indicating that the charterer of a
vessel is responsible for the cost of loading and unloading goods
from the vessel.
Free In and Out: Cost of loading and unloading a vessel is borne by
the charterer.
Free of Particular Average (FPA): A type of marine insurance, is the
minimum coverage in use and covers total and partial losses if the
ship carrying an exporter's goods is involved in a collision or
fire, or is stranded or sunk.
Free of Capture & Seizure: See FC&S
Free On Board (FOB) (...named port of shipment): A pricing term
indicating that the quoted price includes the cost of loading the
goods into transport vessels at the specified place. The seller
fulfills his obligation to deliver when the goods have passed over
the ship's rail at the named port of shipment. This means that the
buyer has to bear all costs and risks of loss of or damage to the
goods from that point. The FOB term requires the seller to clear the
goods for export. This term can only be used for sea or inland
waterway transport. When the ship's rail serves no practical
purpose, such as in the case of roll-on/roll-off or container
traffic, the FCA term is more appropriate to use. North American
sellers and buyers tend to use the term "FOB" inappropriately.
Free On Rail/Free On Truck: These terms are synonymous, since the
word "truck" relates to the railway wagons. The terms should only be
used then the goods are to be carried by rail. Free on Railroad
defines seller's responsible for the cost of goods is to the point
of loading it to the trains' loading deck. FOR normally comes with
loading railroad station where the goods is to be loaded.
Free Out: A pricing term indicating that the quoted prices includes
the cost of unloading the goods from the vessel.
Free Port: A port which is a foreign trade zone, open to all traders
on equal terms. More specifically a port where merchandise may be
stored duty-free, pending re-export or sale within that country.
Examples include Hong Kong and Singapore.
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.
FREE TRADE ZONE: "Free Trade Zones" (sometimes called "customs free
zones" or "duty free zones") is a generic term referring to special
commercial and industrial areas at which special customs procedures
allow the importation of foreign merchandise (including raw
materials, components, and finished goods) without the requirement
that duties be paid immediately. If the merchandise is later
exported, duty free treatment is given to re-exports. The zones are
usually located in or near ports of entry. Merchandise brought into
these zones may be stored, exhibited, assembled, processed or used
in manufacture prior to re-export or entry into the national customs
territory. When manufacturing activity occurs in free trade zones,
it usually involves a combination of foreign and domestic
merchandise, and usually requires special governmental authority.
Types of free trade zones include: foreign trade zones (and foreign
trade sub-zones); free ports; and transit zones. See FOREIGN TRADE
ZONE.
FREIGHT: 1) Property and commodities of all kinds, including small
package service, tendered to a carrier for transportation. Does not
include mail, express, or passenger baggage. 2) The money charged by
the carrier for transporting goods.
Freight All Kinds: Uniform airline charging scale applying to a
number of commodities as opposed to SCR (Specific Commodity Rate)
applying to one commodity only.
FREIGHT BILL: The carrier’s invoice for transportation charges
applicable to a freight shipment.
Freight Carriage ... paid to: Like C & F, "Freight/Carriage paid to
..." means that the seller pays the freight for the carriage of the
goods to the named destination. However, the risk of loss of or
damage to the goods, as well as of any cost increases, is
transferred from the seller to the buyer when the goods have been
delivered into the custody of the first carrier and not at the
ship's rail. The term can be used for all modes of transport
including multi-modal operations and container or "roll on-roll off"
traffic by trailer and ferries. When the seller has to furnish a
bill of lading, waybill or carrier's receipt, he duly fulfills this
obligation by presenting such a document issued by the person with
whom he has contracted for carriage to the named destination.
Freight Carriage ... and Insurance paid to: This term is the same as
"Freight/Carriage Paid to ..." but with the addition that the seller
has to procure transport insurance against the risk of loss of
damage to the goods during the carriage. The seller contracts with
the insurer and pays the insurance premium.
FREIGHT FORWARDER: 1) Individual or company that accepts
less-than-truckload (LTL) shipments and consolidates them into
truckload lots on for-hire basis for shippers. 2) Agent who helps
expedites shipments by preparing necessary documents and making
other arrangements for the moving of freight. 3) Designated as a
common carrier under the ICC. 4) An independent business which
handles export shipments for compensation. At the request of the
shipper, the forwarder makes the actual arrangements and provides
the necessary services for expediting the shipment to its overseas
destination. The forwarder takes care of all documentation needed to
move the shipment from origin to destination, making up and
assembling the necessary documentation for submission to the bank in
the exporter's name. The forwarder arranges for cargo insurance,
makes the necessary overseas communications, and advises the shipper
on overseas requirements of marking and labeling. The forwarder
operates on a fee basis paid by the exporter and often receives an
additional percentage of the freight charge from the common carrier.
An export freight forwarder must be licensed by the Federal Maritime
Commission to handle ocean freight and by the International Air
Transport Association (IATA) to handle air freight. An ocean freight
forwarder dispatches shipments from the United States via common
carriers, books or arranges space for the shipments, and handles the
shipping documentation.
FREIGHT IN BOND: Goods shipped under control/ownership of Government
until duty is paid. See also IN BOND.
FREIGHTER: See ALL-CARGO AIRCRAFT.
FTP: Abbreviation for “File Transfer Protocol”.
G-7 (GROUP OF SEVEN):
Seven industrial countries (The USA, Japan, Germany, France, the
United Kingdom, Italy and Canada): whose leaders have met at annual
economic summits since 1975 to coordinate economic policies.
GA: See General AVERAGE
GAGE (GAUGE OF TRACK): Distance between heads of rails, measured at
right angles at a point 5/8 inches below the top of the rail.
Standard gage is 4 ft. 8 ¼ inches. Narrower gage is frequently
employed in construction/scenic areas.
Gang: Group of stevedores usually 4 to 5 members with supervisor
assigned to a hold or portion of the vessel being loaded or
unloaded.
GAO: Abbreviation for “General Accounting Office”
GATEWAY: Point at which freight is interchanged/interlined between
carriers or at which carriers joins two operating authorities
provision of through service. In the context of travel activities,
gateway refers to a major airport or seaport. Internationally,
gateway can also mean the port where customs clearance takes place.
GATT (GENERALIZED AGREEMENT ON TARIFFS AND TRADE): A multilateral
treaty designed to help reduce trade barriers between signatory
countries and to promote trade through tariff elimination and
concessions. The GATT is a binding contract among (in early 1992)
103 governments. GATT was established in 1947 as an interim measure
pending the establishment of the International Trade Organization,
under the Havana Charter. The International Trade Organization (ITO)
was never ratified by Congress. Operating in the absence of an
explicit international organization, GATT has provided the legal
framework for international trade with its primary mission being the
reduction of trade barriers.
gathering lines: Oil pipelines that bring oil from the oil well to
storage areas.
GAUGE OF TRACK: See GAGE.
GBL: Abbreviation for “Government Bill of Lading”.
GCR: Abbreviation for “General Cargo Rate”. The basic tariff
category which was introduced to cover most air cargo now covers
only a minority, the remainder being under SCR or class rates.
GENERAL AVERAGE: Ancient principle of equity in which all parties in
a sea adventure (ship, cargo, and freight) proportionately share
losses resulting from a voluntary and successful sacrifice of part
of the ship or cargo to save the whole adventure from an impending
peril, or extraordinary expenses necessarily incurred for the joint
benefit of ship and cargo.
GENERAL AVERAGE SECURITY: Documents the cargo owner presents to the
General Average Adjuster to replace the vessel owner's maritime lien
on cargo for its share of General Average and to obtain release of
the goods by the Steamship Company. G.A. Security consists of a G.A.
Bond and either a cash deposit or an Underwriter's Guarantee.
GENERAL CARGO: Term applying to ship’s loading comprising a variety
of goods/articles and not confined to a single commodity.
general-commodities carrier: A common motor carrier that has
operating authority to transport general commodities or all
commodities not listed as special commodities.
GENERAL COMMODITY RATE: A rate applicable on all commodities except
those for which specific rates have been filed. Such rates are
usually based on weight and distance for each pair of cities served.
See also ALL-COMMODITY RATE.
GENERAL LICENSE: There are licenses, authorized by the Bureau of
Export Administration, that permit the export of non-strategic goods
to specified countries without the need for a validated license. No
prior written authorization is required and no individual license is
issued.
GENERAL LICENSE G-DEST: General license-shipments of commodities to
destinations not requiring a validated license. The majority of all
items exported fall under the provisions of General License G-DEST.
general-merchandise warehouse: A warehouse used to store goods that
are readily handled, are packaged and do not require a controlled
environment.
GENERAL ORDER (GO): Government contract warehouse for the storage of
cargoes left unclaimed for ten working days after availability.
Unclaimed cargoes are auctioned publicly after one year.
General Tariff: A tariff that applies to countries that do not enjoy
either preferential or most-favored-nation tariff treatment. Where
the general tariff rate differs from the most-favored-nation rate,
the general tariff rate is usually the higher rate.
GENERALIZED AGREEMENT ON TARIFFS AND TRADE: See GATT.
GENERALIZED SYSTEM OF PREFERENCE: This is a set of non-reciprocal
trade concessions which industrialized countries have agreed to
extend to qualified “Less Developed Countries (LDCs). It permits
duty-free entry of numerous manufactured or agricultural products,
in addition to those products already classified as duty-free under
MFN status. To qualify for GSP, all articles must satisfy the
relevant rules of origin and be imported from the beneficiary
country. It is a framework under which developed countries give
preferential tariff treatment to manufactured goods imported from
certain developing countries. GSP is one element of a coordinated
effort by the industrial trading nations to bring developing
countries more fully into the international trading system. The U.S.
GSP scheme is a system of non-reciprocal tariff preferences for the
benefit of these countries. The U.S. conducts annual GSP reviews to
consider petitions requesting modification of product coverage
and/or country eligibility. United States GSP law requires that a
beneficiary country's laws and practices relating to market access,
intellectual property rights protection, investment, export
practices, and workers rights be considered in all GSP decisions.
GNP- See Gross National Product
going-concern value: The value that a firm has as an entity, as
opposed to the sum of the values of each of its parts taken
separately. Particularly important in determining a reasonable
railroad rate.
GONDOLA: A railcar with a flat platform and slides 3 to 5 feet high
used for top loading of items that are long and heavy.
GOODS: Cargo shipped by sea or air.
GOOSENECK: The front rails of the chassis that raise above the plane
of the chassis and engage in the tunnel of a container.
GRACE, DAYS OF: A certain number of days allowed by law for payment
of due bill.
GRANDFATHER CLAUSE: 1) Allows individual or company that has been
doing business in a area to continue, despite new regulations that
might ordinarily preclude operation. 2) Term used by ICC to grant
authority to carrier to operate over routes where it or a
predecessor was in bona fide operation at June 1, 1935.
granger laws: State laws passed before 1870 in mid-western states to
control rail transportation.
Gray Market Imports: This term refers to imports bearing a genuine
trademark but imported by a party other than the trademark holder or
authorized importer.
Great Lakes carriers: Water carriers that operate on the five Great
Lakes.
grid technique: A quantitative technique to determine the least-cost
center, given raw materials sources and markers, for locating a
plant or warehouse.
Gross National Product: A measure of a nation's output; the total
value of all final goods and services a nation produces during a
time period.
GROSS WEIGHT: 1) Entire weight of a shipment including containers
and packaging material. 2) The combined weight of a container, its
payload and any other loose internal fittings.
Group of ...: 5: Similar to the Group of Seven (G-7), with the
exception of Canada and Italy. 7: This term refers to seven major
economic powers (Canada. France, Germany, Great Britain, Italy,
Japan, and the United States) whose finance ministers seek to
promote balanced economic growth and stability among exchange rates.
The leaders of these seven countries have met at annual economic
summits since 1975 to coordinate economic policies. 10: Under the
International Monetary Fund's General Agreements to Borrow (GAB),
established in 1962, 10 of the wealthiest industrial members of the
IMF "stand ready to lend their currencies to the IMF up to specified
amounts when supplementary resources are needed." The finance
ministers of these countries comprise the Group of 10 (also called
the Paris Club). Members include: Belgium, Canada, France, Germany,
Italy, Japan, Netherlands, Sweden, Switzerland, the United Kingdom,
and the United States. Though numbering 11 with the addition of
Switzerland in 1984, the numerical name persists. 11: The G-11 (also
known as the Cartagena Group) was established in 1984 and comprises
the largest debtor nations in Latin America: Argentina, Bolivia,
Brazil, Chile, Colombia, Dominican Republic, Ecuador, Mexico, Peru,
Uruguay, and Venezuela. 15: The G-15, established in 1990, consists
of relatively prosperous or large developing countries. The G-15
discusses the benefits of mutual cooperation in improving their
international economic positions. Members include: Algeria,
Argentina, Brazil, Egypt, India, Indonesia, Jamaica, Malaysia (a
very active member), Mexico, Nigeria, Peru, Senegal, Venezuela,
Yugoslavia, and Zimbabwe. 24: A grouping of finance ministers from
24 developing country members of the International Monetary Fund.
The Group, representing eight countries from each of the African,
Asian, and Latin American country groupings in the Group of 77, was
formed in January 1972 to counterbalance the influence of the Group
of 10. 77: A grouping of developing countries which received its
name in connection with 77 countries issuing a joint statement in
Geneva, Switzerland in 1964. The G-77's primary focus is serving as
a caucus for articulating members' collective interests primarily in
areas of promoting economic cooperation among developing countries
and in negotiations on economic matters with developing countries.
G-77 membership has increased since 1964 to over 125 countries.
GROUP OF SEVEN: See G-7.
GSP: See GENERALIZED SYSTEM of PREFERENCE.
GST: Abbreviation for “Goods and Services Tax”. Specific to goods
going into Canada.
GSA: General Sales Agent acting on behalf of an airline. Usually
Broker or Forwarder.
GUARANTEED FREIGHT: Freight payable whether the goods are delivered
or not, provided the failure to deliver the goods resulted from
causes beyond the carrier's control.
guaranteed loans: Railroad loans that the federal government
co-signs and guarantees
GW: Abbreviation for “Gross Weight”.
Hard Currency: The
currency of a nation which may be exchanged for that of another
nation without restriction. Sometimes referred to as convertible
currency. Hard currency countries typically have sizeable exchange
reserves and surpluses in their balance of payments.
Harmonized Code: An internationally accepted and uniform description
system for classifying goods for customs, statistical and other
purposes.
HARMONIZED COMMODITY DESCRIPTION AND CODING SYSTEM: A multipurpose
international goods classification system designed to be used by
manufacturers, transporters, exporters, importers, Customs,
statisticians and others in classifying goods moving in
international trade under a single commodity code. Developed under
the auspices of the Customs Cooperation Council (CCC), an
international Customs organization in Brussels. This code is a
hierarchically structured product nomenclature containing
approximately 5,000 headings and subheadings describing the articles
moving in international trade. It is organized into 99 chapters
arranged in 22 sections with the sections generally covering an
industry (e.g., Section Xl, Textiles and Textile Articles) and the
chapters covering the various materials and products of the industry
(e.g., Chapter 50-Silk; Chapter 55-Manmade Staple Fibers; Chapter
57-Carpets). The basic code contains 4-digit headings and 6-digit
subheadings. The USA has added digits for tariff and statistical
purposes and duty rates are in the 8-digit level. Statistical
suffixes are in the 10-digit level. This Harmonized System (HS)
supplanted the U.S. Tariff Schedule (TSUSA) in January 1988.
Harmonized System: The Harmonized Commodity Description and Coding
System (or Harmonized System, HS) is a system for classifying goods
in international trade, developed under the auspices of the Customs
Cooperation Council. Beginning on January 1, 1989, the new HS
numbers replaced previously adhered-to schedules in over 50
countries, including the United States. For the United States, the
HS numbers and four additional digits are the numbers that are
entered on the actual export and import documents. Any other
commodity code classification number (SITC, end-use, etc.) are just
rearrangements and transformations of the original HS numbers.
HATCH: The cover of or opening in the deck of a vessel, through
which cargo is loaded.
HAWB: House Air waybill issued by carrying airlines' agent, normally
freight forwarder.
HAZARDOUS MATERIALS: Means a substance or material which has been
determined by the U.S. Secretary of Transportation to be capable of
posing an unreasonable risk to health, safety, and property when
transported in commerce and which has been so designated. Title 49,
Code of Federal Regulations (U.S.) Transportation: Parts 100199,
govern the transportation of hazardous materials. Hazardous
materials may be transported domestically, but they may be
classified as Dangerous Goods when transported internationally by
air. Also see RESTRICTED ARTICLES and DANGEROUS GOODS.
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 which exceeds 8’6” (102 inches) in height.
HIGHWAY CARRIERS: Divided into the 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.
HOLD FOR PICKUP: Freight to be held at the carrier's destination
location for pickup by the recipient.
House Air Waybill: An air waybill issued by a freight consolidator.
See Air Waybill.
Hub: A central location to which traffic from many cities is
directed and from which traffic is fed to other areas.
HUB AND SPOKE ROUTING: Aircraft routing service pattern that feeds
traffic from many cities into a central hub designed to connect with
other flights to final destinations. The system maximizes operating
flexibility by connecting many markets through a central hub with
fewer flights than would be required to connect each pair of cities
in an extensive system.
HUNDREDWEIGHT: The pricing unit used in transportation. A
hundredweight is equal to 100 pounds or 112 pounds avoirdupois.
Abbreviated as CWT.
HUNDREDWEIGHT PRICING: Special pricing for multiple-piece shipments
traveling to one destination which are rated on the total weight of
the shipment (usually over 100 pounds) as opposed to rating on a per
package basis.
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.
IAOPA: See International
Aircraft Owner and Pilot Associations.
IATA: See INTERNATIONAL AIR TRANSPORT ASSOCIATION.
IATA Designator: Two-character Airline identification assigned by
IATA in accordance with provisions of Resolution 762. It is for use
in reservations, timetables, tickets, tariffs as well as air
waybill.
iatan: see International Airlines Travel Agent Network.
IBID: Latin term meaning “in the same place”.
icc –See MOTOR CARRIER ACT OF 1935. Also abbreviation for
“International Chamber of Commerce”
Ice Clause: An ice clause is a standard clause in the chartering of
ocean vessels. It dictates the course a vessel master may take if
the ship is prevented from entering the loading or discharge port
because of ice, or if the vessel is threatened by ice while in the
port. The clause establishes rights and obligations of both vessel
owner and charterer if these events occur.
ICTF: Abbreviation for “Intermodal Container Transfer Facility” An
on-dock facility for moving containers from ship to rail or truck.
IFF: Abbreviation for the “Institute of Freight Forwarders”.
Igloo: Container designed to occupy full main deck width of carrying
aircraft.
Image processing: Allows a company to take electronic photographs of
documents. The electronic photograph then can be stored in a
computer and retrieved from computer storage to replicate the
document on a printer. The thousands of bytes of data composing a
single document are encoded in an optical disk. Many carriers now
use image processing to provide proof-of-delivery documents to a
shipper. The consignee signs an electronic pad that automatically
digitizes a consignee's signature for downloading into a computer. A
copy of that signature then can be produced to demonstrate that a
delivery took place.
IMMEDIATE DELIVERY: A procedure allowing more rapid release to
importers of imports flown into the USA each year. Under the
“Immediate Delivery Program”, an importer can take delivery almost
immediately of virtually all of an incoming shipment while Customs
retains a sample for the purposes of appraisal. On the basis of this
appraisal, the importer is billed later for the payment of duties.
Import Certificate: The import certificate is a means by which the
government of the country of ultimate destination exercises legal
control over the internal channeling of the commodities covered by
the import certificate.
IMPORT LICENSE: A certificate, issued by countries exercising import
controls, that permits importation of the articles stated in the
license. The issuance of such a permit frequently is connected with
the release of foreign exchange needed to pay for the shipment for
which the import license has been requested.
Import Quota: A means of restricting imports by the issuance of
licenses to importers, assigning each a quota, after determination
of the total amount of any commodity which is to be imported during
a period. Import licenses may also specify the country from which
the importer must purchase the goods.
Import Quota Auctioning: The process of auctioning the right to
import specified quantities of quota-restricted goods.
Import RESTRICTIONS: Import restriction, applied by a country with
an adverse trade balance (or for other reasons), reflect a desire to
control the volume of goods coming into the country from other
countries may include the imposition of tariffs or import quotas,
restrictions on the amount of foreign currency available to cover
imports, a requirement for import deposits, the imposition of import
surcharges, or the prohibition of various categories of imports.
IMPORT SERVICE: See EXPORT SERVICE.
Importer of Record: The U.S. Customs Service defines the importer of
record as the owner or purchaser of the goods; or, when designated
by the owner, purchaser, or consignee, a licensed Customs broker.
Imports for Consumption: "Imports for Consumption" measure the total
of merchandise that has physically cleared through U.S. Customs
either entering consumption channels immediately or entering after
withdrawal for consumption from bonded warehouses under Customs
custody or from Foreign Trade Zones. Many countries use the term
"special imports" to designate statistics compiled on this basis.
IN BOND: As applied to freight coming into the USA, the term “In
Bond” designates a procedure under which US Customs clearance of
cargo is postponed until the cargo reaches an inland Customs point
rather than subjecting the cargo to clearance procedures at the
first arriving United States gateway port where the process might be
more time consuming. The procedure is so named because the cargo
moves under the carriers bond (financial liability assured by the
carrier) from the gateway port and remains “In Bond” until Customs
releases the cargo at the inland Customs point.
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 pickup, 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
greater or 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 at what specific point the
costs are incurred. Maintained by the International Chamber of
Commerce.
Incremental Cost to Export: The additional costs incurred while
manufacturing and preparing a product for export ( e.g., product
modifications, special export packaging and export administration
costs.) This does not include the costs to manufacture a standard
domestic product, export crating and transportation to the foreign
market.
INDEMNIFY: To compensate or repay for a loss sustained.
Independent Action: A move by whereby a member of a shipping
conference elect to depart from the specific service rates set forth
by the conference, giving ten calendar days notice of such action.
The conference member's new schedule of rate, or rates, officially
takes effect no later than ten days after receipt of notice by the
conference.
INDIRECT AIR CARRIER: See AIR FREIGHT FORWARDER.
Indirect Offset: Involves goods and services unrelated to the
aerospace/defense material being sold. See also OFFSET.
Individual Validated License: An IVL is written approval by which
the U.S. Department of Commerce grants permission, which is valid
for 2 years, for the export of a specified quantity of products or
technical data to a single recipient. IVLs also are required, under
certain circumstances, as authorization for the re-export of
U.S.-origin commodities to new destinations abroad.
Inducement: Some steamship lines publish in their schedules the name
of a port and the words by inducement in parentheses. This means the
vessel will call at the port if there is sufficient amount of
profitable cargo available and booked.
INFLATABLE DUNNAGE: Flexible bags usually made from vinyl material
which can be inflated within the void spaces of a container/trailer
to prevent the movement of cargo.
Infopartnering: An efficient consumer response enabler where
retailers, wholesales and manufacturers develop partnerships based
on shared "actionable information" and real-time communications
links.
INFORMAL ENTRY: A simplified import entry procedure accepted at the
option of Customs for any noncommercial shipment (baggage) and any
commercial shipment not over $1,000 in value.
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 Bill of Lading: A bill of lading used in transporting goods
overland to the exporter's international carrier. Although a through
bill of lading can sometimes be used, it is usually necessary to
prepare both an inland bill of lading and an ocean bill of lading
for export shipments.
INLAND CARRIER: A transportation line which hauls exports or import
traffic between ports and inland points.
Inspection Certificate: A document certifying that merchandise (such
as perishable goods) was in goods condition immediately prior to
shipment.
Insourcing: The opposite of outsourcing, that is, a service
performed in-house.
INSURANCE: Contractual relationship which exists when one party, for
a consideration, agrees to reimburse another from loss caused by
designated contingencies. The first party is the insurer; the second
is the insured; the contract is the Insurance Policy, the
consideration is the premium, the property in question is risk and
the contingency in question is the hazard or the peril.
Insurance Certificate: This certificate is used to assure the
consignee that insurance is provided to cover loss of or damage to
the cargo while in transit.
INSURANCE RIDER: Additional clause amending or supplementing the
insurance policy.
INTEGRATED CARGO SERVICE: A blend of segments of the cargo system
providing the combined services of air carrier, forwarder, ground
handling and agents.
Integrated Carriers: Carriers that have both air and ground fleets;
or other combinations, such as sea, rail, and truck. Since they
usually handle thousands of small parcels an hour, they are less
expensive and offer more diverse services than regular carriers.
Integrated Logistics: A system-wide management view of the entire
supply chain, from raw materials supply through finished goods
distribution. It requires managing all functions that make up the
supply chain as a single entity, rather than managing individual
functions separately.
Integrated operator: A service that controls the total process of
moving cargo from pickup to delivery. The rationale is that tighter
scheduling and total control lead to better service. Integrated
operators usually fly their own cargo planes.
Integrated Tariff of the European Community: TARIC is a publication
which presents the regulations pertaining to import of products into
the EC as well as for some exports. TARIC adopts the provisions of
Community legislation, the harmonized system, and the combined
nomenclature (CN).
INTEGRATED TOW BARGE: A series of barges that are connected together
to operate as one unit.
Intellectual Property: Ownership of the legal rights to possess, use
or dispose of products created by human ingenuity, including
patents, trademarks and copyrights.
INTER ALIA: Latin phrase meaning “amongst other things”.
INTERCHANGE: Process of passing freight from one carrier to another
between lines.
INTERCOASTAL CARRIER: Vessels that transport freight between the
east coast and west coast ports usually by way of the Panama Canal.
INTERLINE: The movement of a shipment via two or more carriers or
transportation lines. See COORDINATED MOVEMENT
INTERLINE FREIGHT: Freight moving from origin to destination over
lines of two or more transportation lines.
Intermeddle: Referring to the capacity to go from ship to train to
truck, or the like. The adjective generally refers to containerized
shipping or the capacity to handle same.
Intermediate Consignee: An intermediate consignee is the bank,
forwarding agent, or other intermediary (if any) that acts in a
foreign country as an agent for the exporter, the purchaser, or the
ultimate consignee, for the purpose of effecting delivery of the
export to the ultimate consignee.
Intermediate Container Transfer Facility: ICTF is a site where cargo
is transferred from one form of transit to another, such as rail to
ship.
Intermodal: Two or more modes of transport used in the continuous
movement of goods from origin to destination. It applies to goods
transported within containers or trailers, most often to join
rail/truck moves. But marine and air modes can also be involved.
INTERMODAL COMPATIBILITY: The capability which enables a shipment to
be transferred from one form of transport to another, as from
airplane to highway truck, to railway freight car, to ocean vessel.
Some aircraft in service today have the capability for intermodal
exchange of the large types of standard containers currently used in
surface transport.
Intermodal transportation: Using more than one mode to deliver
shipments. For example: The movement of trailers-container by rail
and at least one other mode of transportation.
INTERNAL WATER CARRIERS: Vessels that operate over the internal
navigable rivers such as the Mississippi, Ohio and Missouri.
INTERNATIONAL AIR TRANSPORT ASSOCIATION (IATA): The trade and
service organization for airlines of more than 100 countries serving
international routes. IATA activities on behalf of shippers in
international air freight include development of containerization
programs, freight handling techniques and, for some airlines,
uniform rates and rules. For information: P.O. Box 800, Victoria
Place, Montreal, Quebec, Canada, 1M1 H4Z. Also see CNS.
International Aircraft Owner and Pilot Associations (IAOPA): A
nonprofit federation of 37 autonomous, non-governmental, national
general aviation organizations. IAOPA has represented international
general aviation for more than 32 years.
International Airlines Travel Agent Network (IATAN): A not-for
profit service organization whose main goal is to assist travel
agents to meet and maintain a specific set of standards that are of
value to airlines, the agency community as well as to consumers.
INTERNATIONAL CIVIL AVIATION ORGANIZATION (ICAO): An agency of the
United Nations whose constitution is the “Convention on
International Civil Aviation” drawn up by a conference in Chicago in
November and December 1944, and to which each ICAO Contracting State
is a party. It was organized to insure orderly worldwide technical
development of civil aviation. For information: International
Aviation Square, 1000 Sherbrooke Street West, Mail Box 400,
Montreal, P0, Canada H3A 2R4.
International Court of Justice: The ICJ, established in 1945, is the
principal judicial organ of the UN. The ICJ decides cases submitted
to it by states and gives advisory opinions on legal questions
submitted to it by the General Assembly or Security Council or by UN
specialized agencies. The court is composed of 15 judges elected by
the General Assembly and the Security Council from a list of persons
nominated by the national groups in the Permanent Court of
Arbitration. The seat of the Court is in The Hague, Netherlands.
International Federation of Freight Forwarders' Associations (FIATA):
Founded in 1926 to protect and represent its members at
international level. It’s members include 90 organizations and 1,920
associate members in 132 countries. For information: Baumackerstr.
24, POB 8050 Zürich, Switzerland.
International Management Code for the Safe Operation of Ships and
for Pollution Prevention: See ISM CODE.
International Maritime Organization: The IMO was established as a
specialized agency of the United Nations in 1948. The IMO
facilitates cooperation on technical matters affecting merchant
shipping and traffic, including improved maritime safety and
prevention of marine pollution. Headquarters are in London, England.
International Standards Organization: The ISO, established in 1947,
is a worldwide federation of national bodies, representing
approximately 90 member countries. The scope of the International
Standards Organization covers standardization in all fields except
electrical and electronic engineering standards, which are the
responsibility of the IEC, International Electrotechnical
Commission. Together, the ISO and IEC form the specialized system
for worldwide standardization: - the world's largest nongovernmental
system for voluntary industrial and technical collaboration at the
international level. The result of ISO technical work is published
in the form of International Standards. There are, for example, ISO
standards for the quality grading of steel; for testing the strength
of woven textiles; for storage of citrus fruits; for magnetic codes
on credit cards; for automobile safety belts; and for ensuring the
quality and performance of such diverse products as surgical
implants, ski bindings, wire ropes, and photographic lenses.
International Standards Organization 9000-9004: ISO 9000 is the
general name for the quality standard accepted throughout the
European Economic Community. It was initially adopted in 1987. ISO
is a series of documents on quality assurance published by the
Geneva-based International Standards Organization. The five
documents outline standards for developing Total Quality Management
and a Quality Improvement Process. 9000 consists of guidelines for
the selection and use of the quality systems contained in 9001-9003.
9001 outlines a model for quality assurance in design, development,
production, installation, and servicing. 9002 outlines a model for
quality assurance in production and installation. 9003 outlines
model for quality assurance for final inspection and testing. 9004
is not a standard but contains guidelines for quality management and
quality system elements.
International Trade Commission: An independent U.S. Government
agency concerned with imports, import duties, and the effect of
imports on U.S. industry. The Commission has six commissioners who
review and make recommendations concerning countervailing duty and
antidumping petitions submitted by U.S. industries seeking relief
from imports that benefit unfair trade practices. Known as the U.S.
Tariff Commission before its mandate was broadened by the Trade Act
of 1974.
Interplant: Includes Bar code scanning for accurate inventory
management, Consolidate/de-consolidate freight for time-sensitive
delivery, Operate and manage warehouse/distribution centers,
Plant-to-plan shuttle service, Cross-dock operations and Site
selection.
INTERSTATE: Literally means between states. Applies to
transportation of goods/persons from point in one state to point in
another; between point in same state but passing within/through
another state en-route or between points in the USA and foreign
countries.
INTERSTATE COMMERCE: Business of exchanging goods between buyers and
sellers of two or more states.
Interstate Commerce Commission (ICC): See MOTOR CARRIER ACT OF 1935.
INTRA: Latin term meaning “within”.
INTRASTATE COMMERCE: When all business between buyer and seller is
carried on within one state.
Inventory velocity: The speed with which products move from
receiving dock to shipping dock.
IPA: Abbreviation for “Including Particular Average”
IRREGULAR ROUTE CARRIER: A motor carrier that is permitted to
provide service using any route.
IRREVOCABLE LETTER OF CREDIT: A Letter of Credit in which the
specified payment is guaranteed by the bank if all terms and
conditions are met by the drawee. The opposite is a Revocable Letter
of Credit which can be cancelled or altered by the drawee or buyer
after it has been issued by the drawee’s bank. It is as good as the
issuing bank.
IRRITATING MATERIAL: As defined in the HAZARDOUS MATERIAL
REGULATIONS in 49 CFR, liquid or solid substance which, upon contact
with fire or when exposed to air gives off dangerous or intensely
irritating fumes. Does not include any material classed as Poison A.
ISM Code: The ISM Code (International Management Code for the Safe
Operation of Ships and for Pollution Prevention) become
international law on July 1, 1998 for certain categories of vessels:
Passenger ships, oil tankers, chemical tankers, gas carriers, bulk
carriers and high speed cargo craft of 500 gross tonnage and over.
Other cargo vessels and mobile offshore drilling units of 500 gross
tonnage and over will be required to comply with the ISM Code by
July 1, 2002.
ISO: The International Organization for Standardization (ISO) is a
worldwide federation founded in 1946 to promote the development of
international manufacturing, trade and communication standards. ISO
is composed of member bodies from more than 90 countries. The
American National Standards Institute (ANSI) is the United States'
representative to ISO. ISO develops standards in all industries
except those related to electrical and electronic engineering.
Standards in these areas are made by the Geneva-based International
Electrotechnical Commission (IEC) which has representatives from
more than 40 member countries including the USA.
ISO 9000: A set of generic standards that provide quality assurance
requirements and quality management guidance. They include a broad
range of quality system elements. The basic ISO 9000 series
comprises five standards: ISO 9000, ISO 9001, ISO 9002, ISO 9003,
and ISO 9004. The standards are of two types: Guidance and
Conformance. ISO 9000 and ISO 9004 are guidance standards. That is,
they are descriptive documents, not prescriptive requirements.
Companies do not register to either ISO 9000 or ISO 9004. Instead,
they register to one of the conformance standards, ISO 9001, ISO
9002 or ISO 9003. These are models for quality systems.
ISP: Abbreviation for “Internet Service Provider”.
J&WO: Abbreviation for
“Jettison and Washing Overboard”.
JETSAM: Goods from a ship's cargo, or parts of its equipment, that
have been thrown overboard to lighten the load in time of danger, or
to set a stranded ship adrift.
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.
JIT II (JUST IN TIME II): Vendor-managed operations taking place
within a customer's facility. JIT II was popularized by the Bose
Corporation.
joint cost: A common cost in cases where a company produces products
in fixed proportions and the cost the company incurs to produce one
product entails producing another; the backhaul is an example.
JOINT RATE: Agreed upon by two or more carriers, published in a
single tariff, and applying between point on line of one and point
on line of another. May include one or more intermediate carriers in
route.
JOINT VENTURE: An international business collaboration between
foreign interests and private parties in which two or more parties
establish a new business enterprise to which each contributes and in
which ownership and control are shared.
KANBAN: Japanese word
translated as “visible record” for manufacturing control systems in
which suppliers deliver needed parts to the assembly line “just in
time” for use. E.g. parts are not stocked. Affects purchasing,
material management, inventory control and production management.
Papercards are used for record keeping/control. Pronounced “conbon”,
this 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.
KDCL: Abbreviation for “Knocked down in carload lots”
KDLCL: Abbreviation for “Knocked down in less than carload lots”.
KEIRETSU: Refers to the horizontally and vertically linked
industrial structure of post-war Japan. The horizontally linked
groups include a broad range of industries linked via banks and
general trading firms.
KICKBACK: Rebate usually given to person who is in position to
purchase or order transportation for his/her company. See also
REBATE.
KITTING: The process by which individual items are grouped or
packaged together to create a special single item.
Knock Down: An article taken apart, folded or telescoped in such a
manner as to reduce its bulk at least 33 1/3% below its assembled
bulk.
KNOT: Equivalent to one nautical mile (6,080.20 feet) per hour or
1.85 kilometers per hour.
L&D: See LOSS AND
DAMAGE.
L/C: See Letter of Credit.
LADING: The cargo carried in a transportation vehicle.
Lagan: Cargo or equipment to which an identifying marker or buoy is
fastened, thrown over-board in time of danger to lighten a ship's
load. Under maritime law if the goods are later found they must be
returned to the owner whose marker is attached; the owner must make
a salvage payment.
LAN: Abbreviation for “Local Area Network”
LAND BRIDGE: Intermodal system of getting international cargo across
intervening continent from one seacoast to another by special
through trains.
land grants: Grants of land given to railroads to build tracks
during their development stage.
LANDED COST: Total expense of receiving merchandise/goods at place
of retail sale including retail purchase price and transportation
charge.
LANDING GEAR: Device that supports at the end of semi-trailer when
not attached to the tractor.
LASH: Lighter-Aboard-Ships vessels that carry barges. Designed to
load internally, barges specifically designed for the vessel. The
concept is to quickly float the barges to the vessel (using tugs or
ships wenches) load these barges through the rear of the vessel,
then sails. Upon arrival at the foreign port, the reverse happens;
Barges are quickly floated away from the vessel and another set of
waiting barges quickly are loaded. Designed for quick vessel
turn-around. Usually crane-equipped; handles mostly breakbulk cargo.
They are equipped with an overhead crane capable of lifting LASH
barges and stowing them into cellular slots in athwartship position.
See also SEA-BEE VESSEL.
Lash Vessel: Lay Days: The dates between which a chartered vessel is
to be available in a port for loading of cargo.
LASHING: Rope/wire use to secure two objects together by binding.
LAST IN, FIRST OUT (LIFO): Accounting method of inventory valuation
that assumes latest goods purchased are first goods used during the
accounting period. Opposite of FIFO.
LAY ORDER: The period during which the imported merchandise may
remain at the place of unlading without some action being taken for
its disposition, i.e. Beyond the 5-day General Order period.
LAY TIME: Period of time in which the ship is loaded/discharged and
for which no demurrage is charged.
LAZARETTO: Quarantined area for fumigating goods that might be
carrying insects/dangerous germs.
LCL: Maritime terms meaning “Less than container load” or railroad
term meaning “less than carload” e.g. Weighing less than the amount
necessary to apply a carload rate charged by railroads for
transportation.
LD3: Lower deck type 3 container. This is the most commonly used
container in passenger aircraft.
LDI: See logistics data interchange
LDP: Abbreviation for “Landed Duty Paid”.
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 the time in transit.
LEGAL WEIGHT: 1) Weight of goods sold and interior packing but not
the container’s weight (term commonly used in foreign trade). 2) A
maximum weight limitation for a total highway unit as established by
the highway authorities which, if exceeded, may subject the carrier
to a fine or impounding of the vehicle.
LENGTH & GIRTH: Some carriers may apply this limitation on
shipments. The equation used to calculate length and girth: Length +
(2 x width) + (2 x height). The largest measurement will always be
used as the length in the equation.
Less Developed Country: An LDC is a country with low per capita
gross national product. Terms such as third world, poor, developing
nations, and underdeveloped have also been used to describe less
developed countries.
Lesser Developed Countries: The classification LLDC (sometimes also
known as "Least" Developed Countries) was developed by the United
Nations to give some guidance to donor agencies and countries about
an equitable allocation of foreign assistance. The criteria for
designating a country an LLDC, originally adopted by the UN
Committee for Development Planning in 1971, have been modified
several times. Criteria have included low: per-capita-income,
literacy, and manufacturing share of the country's total gross
domestic product. There is continuing concern that the criteria
should be more robust and less subject to the possibility of easy
fluctuation of a country between less developed and least developed
status.
LESSEE: Individual, party or company with legal possession/control
of vehicle (with/without driver) or other equipment from another
party under the terms of a lease agreement.
LESSOR: Individual, party or company granting legal use of vehicle
(with/without driver) or other equipment to another party under the
terms of a lease agreement.
Letter of Credit: A financial document issued by a bank at the
request of the consignee guaranteeing payment to the shipper for
cargo if certain terms and conditions are fulfilled. Normally it
contains a brief description of the goods, documents required, a
shipping date, and an expiration date after which payment will no
longer be made. An Irrevocable Letter of Credit is one which
obligates the issuing bank to pay the exporter when all terms and
conditions of the letter of credit have been met. None of the terms
and conditions may be changed without the consent of all parties to
the letter of credit. A Revocable Letter of Credit is subject to
possible recall or amendment at the option of the applicant, without
the approval of the beneficiary. A Confirmed Letter of Credit is
issued by a foreign bank with its validity confirmed by a U.S. bank.
An exporter who requires a confirmed letter of credit from the buyer
is assured payment from the U.S. bank in case the foreign buyer or
bank defaults. A Documentary Letter of Credit is one for which the
issuing bank stipulates that certain documents must accompany a
draft. The documents assure the applicant (importer) that the
merchandise has been shipped and that title to the goods has been
transferred to the importer.
LETTER OF INDEMNITY: Issued by the shipper to the carrier to secure
a clean Bill of Lading for damaged goods. Usually to protect the
carrier and for the purpose of avoiding collection difficulties with
bank. Also, when a bank refuses to accept a foul bill of lading, the
shipper (so that there shall be nothing to prevent the questionable
draft from being discounted, among other reasons) may obtain a clean
bill of lading. To acquire this, the shipper signs a letter of
indemnity, which is an inducement to obtain the clean bill of lading
through the dock or mate's receipt, given on delivery of the goods
to dock or ship, showed that the shipment was damaged or in bad
condition. This acts as a form of guarantee whereby the shipper
accords a claim settlement against a steamship by a bill of lading
holder resulting from a clean bill being issued.
LICENSE: A general export license covers the exportation of goods
that are not restricted under the terms of a validated export
license. No formal application or written authorization is needed to
ship exports under a general export license.
LIFO: See LAST IN, FIRST OUT.
LIFT-ON/LIFT-OFF (LOLO): Carriage of containers on decks or on
flatcars 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.
LIGHTERAGE: The cost of loading or unloading a vessel by means of
barges alongside.
line functions: The decision-making areas companies associate with
daily operations. Logistics line functions include traffic
management, inventory control, order processing, warehousing, and
packaging.
LINER: Ocean vessel engaged in the carriage of general cargo
(including passengers) along definite route on a fixed schedule. The
word "liner" is derived from the term "line traffic" which denotes
operation along definite routes on the basis of definite, fixed
schedules; a liner thus is a vessel that engages in this kind of
transportation, which generally involves the haulage of general
cargo as distinct from bulk cargo.
LINEHAUL: Movement of freight between cities, usually more than
1,000 miles, not including pickup and delivery services.
liner servicE: International water carriers that ply fixed routes on
published schedules.
Link: The transportation method a company uses to connect nodes
(plants, warehouses) in a logistics system.
Liquidation: The finalization of a customs entry.
LIST: (Of ship), means to lean to one side due to shifting of cargo.
LivE: A situation in which the equipment operator stays with the
trailer or boxcar while it is being loaded or unloaded.
Live Animal: Commodities classified by IATA referring live animals
such as horse, cow, ... also known as Livestock.
LIVE AXLE: Axle driven by engine as compared to dead axle which only
follows as pulled.
Livestock: Common farm animals.
Lkg & Bkg: Abbreviation for “Leakage and Breakage”.
LLOYD’S REGISTER: Yearly document issued by Lloyds of London that
contains tonnage, age, build, character and condition of registered
ships.
Lo/Lo: The acronym meaning "lift-on, lift-off," denoting the method
by which cargo is loaded onto and discharged from an ocean vessel,
which in this case is by the use of a crane.
LOAD DISPLACEMENT: Vessel’s load capacity according to structure
displacement.
load factor: A measure of operating efficiency used by air carriers
to determine a plane's utilized capacity percentage or the number of
passengers divided by the total number of seats.
loading allowance: A reduced rate that carriers offer to shippers
and/or consignees who load and/or unload LTL or AQ shipments.
LOADING LINE: Guide on ship indicating to what depth it has sunk
with lading. Serves as a safety factor. See also PLIMSOLL LINE.
LOAN RECEIPT: Document signed by the Assured where he acknowledges
receipt of money advanced by the insurance company as an
interest-free loan (instead of payment of a loss) repayable to the
insurance company only if the loss is recovered from a third party
and then only to the extent of the recovery.
local rate: A rate published between two points served by one
carrier.
local service carriers: A classification of air carriers that
operate between less-populated areas and major population centers.
These carriers feed passengers into the major cities to connect with
trunk (major) carriers. Local service carriers are now classified as
national carriers.
localized raw material: A raw material found only in certain
locations.
locational determinant: The factors that determine a facility's
location. For industrial facilities, the determinants include
logistics.
Logbook: A daily record of the hours an interstate driver spends
driving, off duty, sleeping in the berth, or on duty but not
driving.
Logistics: 1) All of the activities involved in planning and
carrying out the handling, storage and transport of goods and
materials along the supply chain, including the recovery of used or
waste materials. 2) The function that encompasses materials
management and physical distribution. 3) The management of inventory
in motion and at rest.
Logistics Channel: The network of supply chain participants engaged
in storage, handling, transfer, transportation, and communications
functions that contribute to the efficient flow of goods.
logistics data interchange: A computerized system that
electronically transmits logistics information.
LOLO: See LIFT-ON/LIFT-OFF.
Long-Dated Forward: The long-dated forward is a foreign exchange
contract whose maturity exceeds one year; a few have extended over
ten years.
LONG TON: Equivalent to 2,240 pounds or 20 long hundredweight. Also
called a GROSS TON.
LONGSHOREMAN: Person employed on wharves of port to load/unload
vessels.
LOSS AND DAMAGE (L&D): Report usually applicable when loss or damage
is discovered when shipment is delivered.
LOSS OF MARKET: A situation in which, for one reason or another,
sound cargo is no longer wanted by the consignee when it arrives.
This is a "business loss" not recoverable under a Marine Cargo
Policy; e.g., Christmas trees arriving in January undamaged.
LOT LABELS: Labels attached to each piece of a multiple lot shipment
for identification purposes.
lot size: The quantity of goods a company purchases or produces in
anticipation of use or sale in the future.
Louvre Accord: The Louvre Accord (February 1987) attempted to stop
the dollar's fall and stabilize currency relationships by
introducing reference ranges among the G-7 currencies.
Lower Deck: The compartment below the Main Deck (also synonymous
with lower hold and lower lobe).
LOWER DECK CONTAINERS: Air carrier owned containers specially
designed as an integral part of the aircraft to fit in the cargo
compartments (lower deck) of the wide body aircraft.
LTL: Abbreviation for “Less than Truckload”. This term refers to
less than quantity of freight required to apply a truckload (TL)
rate charged by motor carriers for transportation. Also, a shipment
weighting less than the minimum weight needed to use the lower
truckload rate.
LUFFING: Angular movement of a crane in vertical plane.
Lumping: The act of assisting a motor carrier owner-operator in the
loading and unloading of property. Commonly used in the food
industry.
LWR: Most commonly used type of pallet at lower deck of passenger
aircraft and full cargo freighter.
M/R: See Mate's Receipt
M/T: Abbreviation for “Metric Ton” (2204 lbs.)
M/V or MV: Abbreviation for “Motor Vessel”
Maastricht Treaty: The Maastricht Treaty (named for the Dutch town
in which the treaty was signed) is also known as the Treaty of
European Union. The treaty creates a European Union by: (a)
committing the 12 member states of the European Economic Community
to both European Monetary Union (EMU) and political union; (b)
introducing a single currency (European Currency Unit, ECU); (c)
establishing a European System of Central Banks (ESCB); (d) creating
a European Central Bank (ECB); and (e) broadening EEC integration by
including both a common foreign and security policy (CFSP) and
cooperation in justice and home affairs (CJHA). The treaty,
negotiated in 1991 and signed in February 1992, entered into force
on November 1, 1993. The Maastricht Treaty envisioned EMU being
achieved in three stages: A first stage (encompassing treaty
negotiations and lasting through January 1, 1994) concludes with
ratification of treaty amendments needed to establish EMU, including
participation by all 12 EEC member states in the Exchange Rate
Mechanism; A second stage (January 1, 1994 through no later than
January 1, 1999) involves establishment of the European Monetary
Institute (EMI) to support development of a single currency (the
ECU) and development of the ECB; A third stage (starting no later
than January 1, 1999) involves irrevocable fixing of exchange rates
and the debut of the ECB with transfer of powers necessary for
administering economic and monetary union.
Main Deck: The deck on which the major portion of payload is
carried, normally known as Upper Deck of an airplane. The full cargo
freighter aircraft has it entire upper deck equipped for main deck
type of containers/pallets while Combi aircraft uses it rear part of
the upper deck for cargo loading. There is no upper deck or main
deck type of container/pallet at passenger aircraft.
MAJOR CARRIER: A for-hire certified air carrier with annual
operating revenues of $1 billion or more. Carrier usually operates
between major traffic centers.
MANDAMUS: Writ issued by 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, etc.
MARAD: A US government agency, while not actively involved in vessel
operation, administers laws for maintenance of merchant marine for
the purposes of defense and commerce.
MAQUILADORA: The maquiladora (or "in-bond" industry) program allows
foreign manufacturers to ship components into Mexico duty-free for
assembly and subsequent re-export. Industry established under the
maquiladora program is Mexico's largest source of foreign revenue
(following oil exports). In December 1989, the Mexican government
liberalized the maquiladora program to make this a more attractive
and dynamic sector of economy. As a result, maquiladora operations
may import, duty and import license free, products not directly
involved in production, but that support production, including
computers and other administrative materials and transportation
equipment.
MARINE REGISTRY: Listing vessels under then name of the nation whose
flag it flies. Shipowners most often register under most
favorable/lenient flags.
Manufacturing Resource Planning System: See MRP II
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.
Marine Cargo Insurance: Broadly, insurance covering loss of, or
damage to, goods at sea. Marine insurance typically compensates the
owner of merchandise for losses in excess of those which can be
legally recovered from the carrier that are sustained from fire,
shipwreck, piracy, and various other causes. Three of the most
common types of marine insurance coverage are "free of particular
average" (FPA), "with average" (WA), and "All Risks Coverage."
MARITIME: Commerce/navigation at sea or in seaports.
MARITIME ADMINISTRATION: A US Agency that promotes the merchant
marine, determines ocean ship routes and services equipment and
awards maritime subsidies.
Mark: As used on containers in foreign trade, a symbol or initials
shown together with the port of importation and the final
destination, if different. Example: A.G. y Cia., Bogota via
Barranquilla. Marks are registered at appropriate customs houses;
they also appear on bills of lading and invoices. In domestic trade,
it is common to mark containers with the name and address of the
recipient, but this is rarely done in foreign trade.
Market Access: Market access refers to the openness of a national
market to foreign products. Market access reflects a government's
willingness to permit imports to compete relatively unimpeded with
similar domestically produced goods.
Market Disruption: Market disruption refers to the situation which
is created when a surge of imports in a given product line causes
sales of domestically produced goods in a particular country to
decline to an extent that the domestic producers and their employees
suffer major economic hardship.
market dominance: The absence of effective competition for railroads
from other carriers and modes for the traffic to which the rail rate
applies. The Staggers Act stated that market dominance does not
exist if the rate is below the revenue-to-variable-cost ratio of 160
percent in 1981 and 170 percent in 1983.
Marking: Every article of foreign origin, or its container, imported
into the United States shall be permanently marked in a conspicuous
place in a manner which would indicate to the ultimate purchaser the
English name of the country of origin of the article.
MARKS: Letters, numbers or other symbols placed on outer surface of
shipping containers or packages to facilitate identification and
handling procedures. Examples are address labels, box
specifications, caution, or directional warnings. See also CASE
MARKS.
Marks of Origin: The physical markings on a product that indicate
the country of origin where the article was produced. Customs rules
require marks of origin of most countries.
Mass Customization: The flexibility to meet the demands of a
customer base whose needs are diverse and/or changing.
MATE’S RECEIPT: Receipt of cargo by the vessel, signed by the mate
(similar to Dock Receipt)
material index: The ratio of the sum of the localized raw material
weights to the weight of the finished product.
materials handling: Short-distance movement of goods within a
storage area.
materials management: The movements and storage functions associated
with supplying goods to a firm.
materials planning: The materials management function that attempts
to coordinate materials supply with materials demand.
Materials REQUIREMENT Planning: See MRP II.
matrix organization: An organizational structure that emphasizes the
horizontal flow of authority; the company treats logistics as a
project, with the logistics manager overseeing logistics costs but
traditional departments controlling operations.
MAXIMUM CUBE: A level of cube utilization that closely approximates
the stated cubic capacity of a container.
MAXIMUM GROSS WEIGHT: Weight of a container and its payload.
MD2: Commonly used container/pallet at Main Deck or Upper Deck.
Non-Airplane Unit Load
measurement ton: The measurement ton (also known as the cargo ton or
freight ton) is a space measurement, usually 40 cubic feet or one
cubic meter. The cargo is assessed a certain rate for every 40 cubic
feet or 1 cubic meter it occupies. Used in water transportation rate
making
MEMORANDUM TARIFF: Publications, which contain rule and rate
information extracted from official tariffs. Memorandum tariffs are
published by many carriers and are available from these carriers
upon request.
Merger: The combination of two or more carriers into one company
that will own, manage and operate the properties that previously
operated separately.
METRIC TON: Measure of weight equal to 1,000 kilograms or about
2,206.6 pounds. Symbol is “t”. Also called tonne. See TON.
MFN: See MOST-FAVORED-NATION STATUS.
MICROBRIGDE: Provides for intermodal transport of freight from
inland city to seaport with through movement of container freight
onto overseas ship.
micro-land bridge: An Intermodal movement in which the shipment is
moved from a foreign country to the U.S. by water and then moved
across the U.S. by railroad to an interior, non-port city, or vice
versa for exports from a non-port city.
mileage allowance: An allowance, based upon distance that railroads
give to shippers using private railcars.
mileage rate: A rate based upon the number of miles the commodity is
shipped.
mini-land bridge: An Intermodal movement in which the shipment is
moved from a foreign country to the U.S. by water and then moved
across the U.S. by railroad to a destination that is a port city, or
vice versa for exports from a U.S. port city.
MINIMUM CHARGE: The lowest rate applicable on each type of service
no matter how small the shipment.
minimum weight: The shipment weight the carrier's tariff specifies
as the minimum weight required to use the TL or CL rate; the rate
discount volume.
MIS: Abbreviation for “Management Information System”.
mixed loads: The movement of both regulated and exempt commodities
in the same vehicle at the same time.
MM: Abbreviation for “Mercantile marine”.
modal split: The relative use that companies make of transportation
modes. The statistics include ton-miles, passenger-miles and
revenue.
MORTGAGE: Conveyance of property, real or personal, to person called
mortgagee to secure performance of some act such as payment of money
to mortgagor which become void upon performance of act.
MOST-FAVORED-NATION STATUS: A provision of certain international
agreements, including the General Agreement on Tariffs and Trade
(GATT), which affords countries the right to have their goods
treated no less favorably than the goods of any other country. For
example, the GATT MFN clause gives each member the right to have
customs duties levied upon its products at the lowest rate offered
to any other member nation. This is no longer the best tariff
structure available. All contracting parties undertake to apply such
treatment to one another under Article I of GATT. When a country
agrees to cut tariffs on a particular product imported from one
country, the tariff reduction automatically applies to imports of
this product from any other country eligible for most-favored nation
treatment. This principle of nondiscriminatory treatment of imports
appeared in numerous bilateral trade agreements prior to
establishment of GATT. A country is under no obligation to extend
MFN treatment to another country unless both are bilateral
contracting parties of the General Agreement on Tariffs and Trade or
MFN treatment is specified in a bilateral agreement.
MOTOR CARRIER ACT OF 1935: Act of Congress effective October 1,
1935; Part II of the Interstate Commerce Act brought motor common
and contract carriers under the jurisdiction of the ICC,
incorporated into Revised Interstate Commerce Act of 1978.
MOTOR CARRIER ACT OF 1980: Act of Congress that initiated
deregulation of for-hire trucking.
MOTOR COMMON CARRIER: Entity holding itself out to general public to
provide motor vehicle transportation for compensation over regular
or irregular routes, or both.
MOU: Abbreviation for “Memorandum of Understanding”.
MRO items: Maintenance, repair, and operating items--office
supplies, for example.
MRP II: Manufacturing Resource Planning System of manufacturing
controls using computers, as in KANBAN. Systems affects purchasing,
material management, inventory control and production management as
well as peripheral activities. The older meaning of MRP was
“Materials REQUIREMENT Planning” and the roman numeral “II” was
added to flag the change.
MULE: 1) Small vehicle used for moving two-axle dollies. 2) Yard
tractor or hostler.
MULTI-FIBER ARRANGEMENT: An international umbrella compact,
authorized by GATT, that allows contracting parties to negotiate
bilaterally quantitative restrictions on textile imports (which
normally would be considered contrary to GATT provisions) to the
extent the importing country considers them necessary to prevent
market disruption. This agreement provides that such restrictions
should not reduce imports to levels below those attained during the
preceding year. Bilateral agreements usually allow for import growth
tied to anticipated greater demand. The Uruguay Round Agreement on
Textiles and Clothing contains an agreed schedule for the gradual
phase-out of quotas established pursuant to the MFA over a ten-year
transition period, after which textile and clothing trade will be
fully integrated into the GATT and subject to the same disciplines
as other sectors.
MULTIMODAL: Using more than one mode of transportation to move a
load of goods. E.g. Truck, train, ship, etc. Usually for imported or
exported goods.
multinational company: A company that both produces and markets
products in different countries.
multiple-car rate: A railroad rate that is lower for shipping more
than one carload at a time.
MW: Abbreviation for “Minimum weight factor”
NAFTA: See North
American Free Trade NAMED PERILS POLICY: Any marine policy limiting
coverage to perils specifically listed in the policy; opposed to All
Risks policy. See "ALL RISKS."
national carrier: A for-hire certificated air carrier that has
annual operating revenues of $75 million to $1 billion. The carrier
usually operates between major population centers and areas of
lesser population. Also, a flag carrier owned or controlled by the
state.
National Customs Brokers & Forwarders Association of America, Inc.:
See NCBFAA.
National Industrial Traffic League: An association representing
shippers' and receivers' interests in matters of transportation
policy and regulation.
National Motor Bus Operators Organization: An industry association
representing common and charter bus firms. Now known as the American
Bus Association.
National Transportation Act of 198: Federal legislation that governs
transport by air, commodity, pipeline, federally regulated motor
vehicles, northern marine re-supply and rail. A major goal of the
Act was to increase competition among transportation firms.
National Railroad Corporation: Also known as Amtrak, the corporation
established by the Rail Passenger Service Act of 1970 to operate
most of the United States' rail passenger service.
Nationalization: Public ownership, financing and operation of a
business entity.
NATO: See North Atlantic Treaty Organization.
NCBFAA: The National Customs Brokers & Forwarders Association of
America, Inc. A trade association representing the licensed customs
brokers, international freight forwarders, international air cargo
agents and NVOCCs located throughout the USA. For information: 1200
18th Street, Suite 901, Washington, DC 20036.
NEGLIGENCE: Failure to exercise degree of care as demanded by law.
NEM: Abbreviation for “Not Elsewhere Mentioned” (English)
NES: Abbreviation of “Not Elsewhere Specified”. This often appears
in air freight tariffs. For example: "advertising matter, NES" or
"printed matter, NES" indicating that the rate stated in the tariff
applies to all commodities within the commodity group except those
appearing under their own rate. The abbreviation NES, as used in air
freight tariffs, is comparable to the abbreviation NOIBN. “Not
Otherwise Indexed By Number) and NOS (Not Otherwise Specified) which
appear in tariffs published by the surface modes.
Nested: Three or more different sizes of an article are placed
within each other so that each article will not project above the
next lower article by more than 33 1/3% of its height.
Nested Solid: Three of more different sizes of an article are placed
within each other so that each article will not project above the
next lower article by more than 1/4 inch.
NESTING: Fitting one article of cargo inside the other to economize
on 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 Terms: Free of charters' commission
NET TON: 2,000 pounds.
NET TONNAGE: Gross tonnage minus deductions for space occupied by
crew quarters, machinery for navigation, engine room and fuel.
NET TON-MILE: Movement of ton of freight one mile.
NET WEIGHT: 1) Weight of article without packing and container. 2)
Weight of entire contents of vehicle.
NEUTRAL AIR WAYBILL: A standard air waybill without identification
of the issuing carrier. Also called a UNIVERSAL AIR WAYBILL.
Newly Independent States: The NIS is a collective reference to 12
republics of the former Soviet Union: Russia, Ukraine, Belarus
(formerly Byelorussia), Moldova (formerly Moldavia), Armenia,
Azerbaijan, Uzbekistan, Turkmenistan, Tajikistan, Kazakhstan, and
Kirgizstan (formerly Kirghiziya) and Georgia. Following dissolution
of the Soviet Union, the distinction between the NIS and the
Commonwealth of Independent States (CIS) was that Georgia was not a
member of the CIS. That distinction dissolved when Georgia joined
the CIS in November 1993.
Newly Industrializing Countries: The term, originated by the
Organization for Economic Cooperation and Development (OECD),
describes nations of the Third World that have enjoyed rapid
economic growth and can be described as "middle-income" countries
(such as Singapore and the Republic of Korea).
Newly Industrializing Economies: NIE's is a term generally applied
to the more advanced developing countries in East Asia. The
reference includes Hong Kong, Korea, Singapore, and Taiwan;
occasionally its use encompasses other countries as well, such as
Indonesia and Thailand.
NFO: Abbreviation for “Next Flight Out”
NMFC: Abbreviation for “National Motor Freight Classification”.
no location: A received item for which the warehouse has no
previously established storage slot.
No Objection Certificate: Document provided by scheduled or national
airlines of many countries declaring no objection to a proposed
charter flight operated by another airline. Often demanded by
government authorities before they grant permission for a charter
flight to take place.
No Objection Fee: Sum of money paid by a charter airline normally to
a scheduled airline in order that it waives its right of objection
to its government, thus allowing a charter to take place. Tantamount
to a bribe. The amount is usually a fixed percentage of the gross
cost of a charter. Common practice in the Middle East and Africa.
NODE: A fixed point in a company’s logistics system where goods come
to rest: plants, warehouses, supply sources, market destinations,
etc.
NOE: Abbreviation for “Not otherwise enumerated”.
NOI: Abbreviation for “Not Otherwise Indexed”.
NOHP: Abbreviation for “Not otherwise herein provided”.
NOI: Abbreviation for “Not more specifically described
NOIBN: Abbreviation for “Not otherwise indicated by number” or “Not
otherwise indicated by name”.
Non-asset provider: A logistics company with no ties to a
transportation or warehouse firm.
NON-CONFERENCE: Independent steamship lines that cannot provide the
schedules or direct service that conference lines can.
NON-DOCUMENT SURCHARGE: Surcharges on exported commodities
classified as dutiable in the foreign destination.
NONSTRUCTURAL CONTAINER: An ULD composed of a bottomless rigid shell
used in combination with a pallet and net assembly. NOTE: The
expression "Nonstructural Container" is also used to refer to the
shell part of a device.
Non-Tariff Barriers: Market access barriers that result from
prohibitions, restrictions, conditions or specific requirements and
make exporting products difficult and/or costly. The term covers any
restriction or quota, charge, or policy, other than traditional
customs duties, domestic support programs, discriminatory labeling
and health standards, and exclusive business practices which limit
the access of imported goods. May result from government or private
sector actions.
NON-VESSEL OPERATING COMMON CARRIER (NVOCC): A company that
consolidates small shipments from different sources consigned to the
same destination into a single container for shipment overseas by
either air or ocean carrier. An FMC registered cargo consolidator of
small shipments in ocean trade, generally soliciting business and
arranging for or performing containerization functions at the port.
These carriers issue their own bill of lading referred to as a house
bill of lading.
North American Free Trade Agreement: NAFTA, which entered into force
in January 1994, is a free trade agreement comprising Canada, the
United States and Mexico. NAFTA exceeds 360 million consumers and a
combined output of $6 trillion: -approximately 20 percent larger
than the European Community. NAFTA's consumer population is slightly
smaller than the European Economic Area which has over 380 million
consumers. The Agreement: Progressively eliminates almost all
U.S.-Mexico tariffs over a 10-year period, with a small number of
tariffs for trade-sensitive industries phased out over a 15-year
period. Mexico-Canada tariffs are also phased out over a 10-year
period. Tariff reduction schedules between the United States and
Canada negotiated in the Canadian Free Trade Agreement are retained.
Eliminates other barriers to trade such as import licensing
requirements and Customs user fees. Establishes the principle of
national treatment, for ensuring that NAFTA-origin products trade
between NAFTA countries will receive treatment equal to similar
domestic products. Guarantees service providers of the three
countries equal treatment in the NAFTA area, including the right to
invest and the right to sell services across borders. Establishes
five basic principles to protect foreign investors and their
investment in the free trade area: (a) nondiscriminatory treatment,
(b) freedom from performance requirements, (c) free transference of
funds related to an investment, (d) expropriation only in conformity
with international law, and (e) the right to seek international
arbitration f or a violation of the agreement's protections. The
Agreement contains special provisions for sensitive economic
sectors, including agriculture, automotive products, energy, and
textiles and apparel. The Agreement also created a Border
Environment Cooperation Commission and a North American Development
Bank.
North Atlantic Treaty Organization: NATO members include Belgium,
Canada, Denmark, France (which has only partial membership), Greece,
Iceland, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain,
Turkey, United Kingdom, United States, and Germany. With the end of
the "cold war," NATO's role, originally defense-oriented is being
redefined.
NOS: Abbreviation for “Not Otherwise Specified”. See NES.
Abbreviation indicating an article in general class in consolidating
freight classification.
NOSE: Front of a container.
NOTICE OF ARRIVAL: See ARRIVAL NOTICE.
NT: Abbreviation for “Net tons”.
NVOCC: See NON-VESSEL OPERATING COMMON CARRIER.
O/A: See OPEN ACCOUNT.
O/N: Abbreviation for “Order notify; own name”
O/o: Abbreviation for “Order of”
O/R: Abbreviation for “Owner's risk”
O&R: Abbreviation for “Ocean and Rail”.
OA: Abbreviation for “Office Automation”.
OBC: On Board Courier.
Ocean Bill of Lading: A receipt for the cargo and a contract for
transportation between a shipper and the ocean carrier. It may also
be used as an instrument of ownership which can be bought, sold, or
traded while the goods are in transit. To be used in this manner, it
must be a negotiable "Order" Bill-of-Lading. A Clean Bill-of-Lading
is issued when the shipment is received in good order. If damaged or
a shortage is noted, a clean bill-of-lading will not be issued. An
On Board Bill-of-Lading certifies that the cargo has been placed
aboard the named vessel and is signed by the master of the vessel or
his representative. On letter of credit transactions, an On Board
Bill-of-Lading is usually necessary for the shipper to obtain
payment from the bank. When all Bills-of-Lading are processed a
ship's manifest is prepared by the steamship line. This summarizes
all cargo aboard the vessel by port of loading and discharge. An
Inland Bill-of-Lading (a waybill on rail or the "pro forma"
bill-of-lading in trucking) is used to document the transportation
of the goods between the port and the point of origin or
destination. It should contain information such as marks, numbers,
steamship line, and similar information to match with a dock
receipt.
OCR: See OPTICAL CHARACTER RECOGNITION.
OD: Abbreviation for “Outside diameter”
ODS: An acronym commonly used for the term "Operating Differential
Subsidy," which is a payment to an American-flag carrier by the
federal government to offset the difference in operating costs
between US and foreign vessels.
OEM: See Original Equipment Manufacturers
Off-Line: Describes an airline that sells in a market to which it
does not operate. An Off-Line carrier will use another operator to
link with its network.
OFF ROUTE POINTS: Points locate off regular route highways of
linehaul carriers. Generally served only on irregular basis.
Offset: Compensatory, reciprocal trade agreements for industrial
goods and services as a condition of military-related export sales
and services. It is also used in the purchase of civilian aircraft
and has become the norm in the aerospace/defense sector. Offset is
divided into two categories, Indirect Offset and Direct Offset.
Offshore Banking Unit: An OBU is normally a foreign bank which
conducts domestic money market, Eurocurrency, and foreign exchange
settlements. OBUs cannot accept domestic deposits but their
activities are unrestricted by domestic authorities. OBUs are
located in major financial centers (known as offshore banking
centers) with liberal reserve, tax, and capital market requirements.
Offshore Manufacturing: Offshore manufacturing is the foreign
manufacture of goods by a domestic firm primarily for import into
its home country.
ON THE BERTH: Term denoting that ship is ready to load/discharge
cargo.
OPEN ACCOUNT (O/A): A trade arrangement in which goods are shipped
to a foreign buyer without the guarantee of payment. Because this
method poses an obvious risk to the supplier, it is essential that
the buyer's integrity be unquestionable.
OPEN END LEASE: Lease guaranteeing that lessor will realize minimum
value from sale of equipment at the end of the lease period.
OPEN INSURANCE POLICY: An insurance policy that applies to all
shipments made over a period of time rather than to one shipment
only.
OPEN POLICY: A cargo policy with no expiration date that provides
automatic coverage of cargo to or from an Assured in a specified
trade at agreed rates, terms, and conditions. Usually consists of
separate Marine and War policies.
OPERATING AUTHORITY: Routes, points and types of traffic that may be
served by carrier. Authority is granted by state or federal
regulatory agencies.
OPERATING RATIOS: 1) Comparison of carrier’s operating expenses with
gross receipts or income divided by expenses. 2) A measure of
operating efficiency defined as Operating expenses divided by
Operating revenues x 100 order cycle time. The time that elapses
from placement of order until receipt of order. This includes time
for order transmittal, processing, preparation, and shipping.
OPTICAL CHARACTER RECOGNITION (OCR): Reading of data scanning
location or shape of data on a document.
OPTIMUM CUBE: The highest level of cube utilization that can be
achieved when loading cargo into an ocean container.
ORB: Abbreviation for “Owner's risk or breakage”.
ORDER BILL OF LADING: Contains four distinguishing features: 1)
Goods are consigned to order of the party named on the Bill of
Lading. 2) Name and post office address of party to notify on
arrival of the consignment at destination must always be written on
the Bill of Lading. 3) Negotiable document most frequently used when
shippers wish to collect for value of the shipment prior to making
delivery and 4) Printed on yellow paper to make it readily
distinguishable.
order picking: Assembling a customer's order from items in storage.
order processing: The activities associated with filling customer
orders.
ordering cost: The cost of placing an inventory order with a
supplier.
ORDet: Abbreviation for “Owner's risk of deterioration”
ORDINARY LIVESTOCK: Defined in the Interstate Commerce Act as “all
cattle, swine, sheep, goats, horses and mules except as such as are
chiefly valuable for breeding, racing, show purposes and other
special uses”
Organization for International Standards: See ISO.
ORF: Abbreviation for “Owner's risk of fire or freezing”
Original Equipment Manufacturers: Customers who incorporate the
exporter's product into their own merchandise for resale under their
own brand names.
Orient Airlines Association: see Association of Asia Pacific
AirlineS.
ORL: Abbreviation for “Owner's risk of leakage”
ORM (OTHER REGULATED MATERIAL): See HAZARDOUS MATERIALS and
RESTRICTED ARTICLES.
ORW: Abbreviation for “Owner's risk of becoming wet”
OS&D: Abbreviation for “Over, Short and Damaged”. Normally a report
used to file a claim with a carrier.
OSHA: The Occupational Safety and Health Administration.
out-of-pocket cost: The cost directly assignable to a particular
unit of traffic and which a company would not have incurred if it
had not performed the movement.
OUTAGE: Empty space in container/drum to accommodate natural
expansion, density change etc due to temperature changes.
Outbound logistics: Includes to deliver product to retail stores, to
return warranty and scrap product to distribution center, to
computerized information management to provide real-time view of the
entire operation, to contract warehousing.
Outsource: To hire a third-party provider.
Outsourcing: Subcontracting business functions or processes such as
logistics and transportation services to an outside firm, instead of
doing them in-house.
OVERAGE: Freight in excess over quantity believed to have been
shipped, or more than quantity shown on the shipping document.
OVER, SHORT AND DAMAGED: See OS&D.
OVER THE COUNTER SMALL PACKAGE SERVICE: See SMALL PACKAGE SERVICE.
OVER THE ROAD: A motor carrier operation that reflects long
distance, intercity moves. The opposite of local operations.
OVER PIVOT RATE - The rate per kilo to be charged for the Over Pivot
weight.
OVER PIVOT WEIGHT: The weight in excess of the pivot weight.
OVERHEIGHT CARGO: Cargo stowed in an open-top container that
projects above the uppermost level of the roof struts.
OWNER-OPERATOR: Driver who owns and operates his/her own truck. The
owner-operator may be a common carrier or exempt carrier. Such
contractor may lease his/her rig/driver to another carrier.
OWNER’S RISK: When the owner of goods remains responsible during
shipping, relieving the carrier of part of the risk.
OXIDIZING MATERIAL: As defined in the HAZARDOUS MATERIAL REGULATIONS
in 49 CFR. Any substance that yields oxygen readily to simulate
combustion of organic matter.
PA: Abbreviation for
“Particular average”
Pacific Rim: The Pacific Rim, referring to countries and
economies bordering the Pacific ocean, is an informal, flexible term
which generally has been regarded as a reference to East Asia,
Canada, and the United States. At a minimum, the Pacific Rim
includes Canada, Japan, the People's Republic of China, Taiwan, and
the United States. It may also include Australia, Brunei, Cambodia,
Hong Kong/Macau, Indonesia, Laos, North Korea, South Korea,
Malaysia, New Zealand, the Pacific Islands, the Philippines, Russia
(or the Commonwealth of Independent States), Singapore, Thailand,
and Vietnam. As an evolutionary term, usage sometimes includes
Mexico, the countries of Central America, and the Pacific coast
countries of South America.
PACKING: any container or covering in which the contents of a
shipment is packed.
PACKING LIST: List showing merchandise packed and all
particulars. Usually prepared by the shipper but not necessarily
required by the carrier. A copy is usually sent to the consignee to
assist in verifying shipment receipt.
Paid by Agent (PBA): See ADVANCEMENT OF CHARGES
Paired: Abbreviation for “Port of Arrival Immediate Release
and Enforcement Determination”. A U.S. Customs program that allows
entry documentation for an import shipment to be filed at one
location, usually an inland city, while the merchandise is cleared
by Customs at the port of entry, normally a seaport. May be
ineffective with certain types of high-risk cargoes, such as
quota-regulated textiles or shipments from drug-production regions.
Cities where there is a natural flow of cargo are actually "paired"
in the program; e.g., Atlanta, an inland city, is linked with
Savannah, a seaport. Tested in '87-'88, it became generally
available in mid- '88.
PALLET: 1) A platform with a flat metal framed undersurface
on which goods are assembled and secured by nets and straps. See
Aircraft Pallet. 2) Load board with two decks separated by bearers
or single deck supported by bearers constructed for
transport/stacking and with overall height reduced to minimum
compatible with handling by forklift/pallet trucks. 3) Platform used
for utilizing loads for storage/shipping. The standard pallet is 48
x 40 x 5 ½ inches and usually made of wood.
Pallet Extender: Fashionable metal or cardboard device to
increase pallet capacity.
PALLET LOADER: A device employing one or more vertical lift
platforms for the mechanical loading or unloading of palletized
freight at planeside.
PALLET TRANSPORTER: A vehicle for the movement of loaded
pallets between the aircraft and the freight terminal or truck dock.
Sometimes the functions of both the pallet loader and pallet
transporter are combined into a single vehicle.
pallet wrapping machine: A machine that wraps a pallet's contents in
stretch-wrap to ensure safe shipment.
PALLETIZATION: System for shipping goods on comparatively
lightweight double-decked wooden platforms called PALLETS. Permits
shipment of multiple units as one large unit.
Paperless Release: Under ABI, certain commodities from
low-risk countries not designated for examination may be released
through an ABI-certified broker without the actual submission of
documentation.
PARCEL POST AIR FREIGHT: An airline service through which a
shipper can consolidate a number of parcel post packages (with
destination postage affixed by the shipper) for shipment as air
freight to the postmaster at another city for subsequent delivery
within local postal zones or beyond.
Part Charter: Where part of an airline's scheduled flight is
sold as if it were a charter in its own right (Often wrongly used as
a synonym for split charter).
Part Load Charter: Where a part of an aircraft's load is
discharged at one destination and a part of it at another. This is
distinct from a split charter where a number of consignments are
carried to the same destination. Inbound, part loads are treated as
single entity charters under the regulations of most countries.
Particular Average: Partial loss or damage to goods.
passenger-mile: A measure of output for passenger
transportation that reflects the number of passengers transported
and the distance traveled; a multiplication of passengers hauled and
distance traveled.
PAYLOAD: In freight transportation, means “profitable cargo”
PARTICIPATING CARRIER: A carrier participating in a tariff
and who therefore applies that rates, charges, routings and
regulations of the tariff.
PBA (Paid by Agent): See ADVANCEMENT OF CHARGES
peak demand: The time period during which customers demand
the greatest quantity.
Pegging: A technique in which a DRP system traces demand for
a product by date, quantity, and warehouse location.
PER: 1) Latin term meaning “by”. 2) “means of”. 3) “according
to”.
PER DIEM: 1) Latin term meaning “by the day”. 2) Daily rate
charged 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.
PERILS OF THE SEA: An insurance term used to designate heavy
weather, grounding, stranding, collision, water damage or lightning,
etc.
PERISHABLE FREIGHT: Commodities subject to a rapid
deterioration or decay (fresh fruits and vegetables, dairy products,
meats and fish etc.). These commodities require special protective
services in transit like refrigeration, heating, ventilation, etc.
PERMITS: Authority granted by the ICC to contract carriers by
motor vehicle or water and freight forwarders to operate in
interstate commerce.
personal computer (PC): An individual unit an operator uses
for creating and maintaining programs and files. Can often access
the mainframe simultaneously.
personal discrimination: Charging different rates to shippers
with similar transportation characteristics, or, charging similar
rates to shippers with differing transportation characteristics.
Petrodollars: This term refers to oil earnings of
petroleum-exporting countries in excess of their domestic needs and
deposited in dollars in Western banks. However, a large part of the
revenues that OPEC countries were unable to spend has been recycled
to oil-importing countries in an attempt to balance international
accounts.
PHYSICAL DISTRIBUTION: Broad range of activities involving
efficient movement of goods from source of raw materials through
production to consumer. Activities include warehousing, material
handling, packaging, order processing, freight transportation and
other related activities.
PHYTOSANITARY INSPECTION CERTIFICATE: A certificate, issued
by the US Department of Agriculture to satisfy import regulations
for foreign countries, indicating that a US shipment has been
inspected and is free from harmful pests and plant diseases.
physical supply: The movement and storage of raw materials
from supply sources to the manufacturing facility.
pick/pack: Picking and packing immediately into shipment
containers.
picking by aisle: A method by which pickers pick all needed
items in an aisle regardless of the items' ultimate destination; the
items must be sorted later.
picking by source: A method in which pickers successively
pick all items going to a particular destination regardless of the
aisle in which each item is located.
PICKUP AND DELIVERY SERVICE (PU&D): An optional service for
the surface transport of shipments from shipper's door to
originating carrier’s terminal and from the carrier’s terminal of
destination to receiver's door. Pickup service, at an additional
charge, is provided upon shipper's request. In air transportation,
delivery service is provided automatically by the air carrier, at an
additional charge, unless the shipper requests otherwise. PU&D
service is provided between all airports and all local points of
such airports. For service beyond the terminal area, see TRUCK/AIR
SERVICE.
PIER: The structure to which a vessel is secured for the
purposes of loading and unloading cargo.
PIER-TO-HOUSE: Ocean carrier containerizes shipper’s cargo on
the loading pier and delivers directly to the consignee’s premises.
PIER-TO-PIER: Ocean carrier containerizes shipper’s cargo on
the loading pier and removes cargo from the container on the
arriving pier.
PIGTAIL: Slang term for cable used to transmit electrical
power to trailer.
PIGGYBACK: The point-to-point movement of one transportation
vehicle upon another. A highway semi-trailer on a railroad flat car
or trailer ferry, a van-container on board a ship or new passenger
automobiles on auto-rack cars are all forms of piggyback
transportation.
PILFERAGE: Taking the property of others. As used in marine
insurance policies, the term denotes petty thievery, the taking of
small parts of a shipment, as opposed to the theft of a whole
shipment or large unit. Many ordinary marine insurance policies do
not cover against pilferage, and when this coverage is desired, it
must be added to the policy.
PILOT: Person whose duty is to steer ships, particularly
along coasts or into/out of harbor.
pin lock: A hard piece of iron, formed to fit on a trailer's
pin, that locks in place with a key to prevent an unauthorized
person from moving the trailer.
PIVOT WEIGHT: Minimum chargeable ULD weight. That weight of a
ULD above which a higher tariff applies; in effect, an incentive to
maximize cargo density.
Place: A particular street address or other designation of a
factory, store, warehouse, place of business, private residence,
construction camp or the like, at a point.
Place of Rest: The term "Place of Rest" as used in the
Containerized Cargo Rules means that location on the floor, dock,
platform or doorway at the CFS to which cargo is first delivered by
shipper or agent thereof.
PLACE UTILITY: A value created in a product by changing its
location. Transportation creates place utility.
planned order: In DRP and MRP systems, a future order the system
plans in response to forecasted demand.
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.
POA: Power Of Attorney, an authorization granted by consignee
or importer to its customs broker for the processing of customs
clearance on its behalf.
POC: Abbreviation for “Point of Contact”
POD: See PROOF OF DELIVERY.
Point: A particular city, town, village or other community or
area which is treated as a unit for the application of rates.
POINT OF ORIGIN: Station at which shipment is received from
shipper by the carrier.
point of sale information: Price and quantity data from the retail
location as sales transactions occur.
POISONS: As defined in the HAZARDOUS MATERIAL REGULATIONS in
49 CFR. These materials are further divided into two groups based on
the degree of hazard posed in transportation. Poison A includes
gases and liquids that are dangerous to life if only a small amount
is mixed with air. Poison B includes substances, liquid and solid,
which are known to be toxic to man.
police powers – The US's constitutionally granted right for
the states to establish regulations to protect their citizens'
health and welfare. Truck weight, speed, length, and height laws are
examples.
POLITICAL RISK: In export financing, the risk of loss due to
currency inconvertibility, foreign government action preventing the
delivery of goods, revolution, war, expropriation, confiscation,
etc.
POOL: A continuous supply of containers at a specific
location to facilitate continuous volume loading.
POOLING AGREEMENT: Dividing of revenue/business amongst two
or more carriers in accordance with previous contracts/agreements.
Also an agreement among carriers to share the freight to be hauled
or to share profits. The Interstate Commerce Act outlawed pooling
agreements, but the Civil Aeronautics Board approved profit pooling
agreements for air carriers during strikes.
PORT: 1) A harbor or haven where ships may anchor. 2) 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 in ports.
PORT CHARGES: Charges assessed for services performed at
ports including lighterage, pilotage, towage, harbor dues, dockage
and wharfage.
Port Marks: An identifying set of letters numbers and/or
geometric symbols followed by the name of the port of destination,
which are placed on export shipments. Foreign government
requirements may be exceedingly strict in the matter of port marks.
Port of Discharge: Port where vessel is off loaded and cargo
discharges.
PORT OF ENTRY: A port at which foreign goods are re-admitted
into the receiving country . In the USA, any place designated by act
of U.S. Congress, executive order of the President of the United
States or order of the U.S. Secretary of the Treasury, at which a
U.S. Customs officer is assigned with authority to accept entries of
merchandise, to collect duties and to enforce the various provisions
of the U.S. Customs laws.
Port of Loading: Port where cargo is loaded aboard the vessel
lashed and stowed.
PORT-OF-ORIGIN AIR CARGO CLEARANCE: For the convenience of
exporters moving goods by air from inland U.S. cities, certain U.S.
Customs formalities can now be handled at the originating Airport
City. This avoids delaying such procedures until the export reaches
a gateway point sometimes hundreds of miles from the exporter's
business.
possession utility: The value created by marketing's effort
to increase the desire to possess a good or benefit from a service.
Power of Attorney: A document that authorizes a customs
broker to sign all customs documents on behalf of an importer.
Pre-Advice: Preliminary advice that a letter of credit has
been established in the form of a brief authenticated wire message.
It is not an operative instrument and is usually followed by the
actual letter of credit.
PREDATORY PRICING: Temporary pricing action by one company to
point below variable costs that has the effect of removing competing
company from market.
PREPAID CHARGES: Generally speaking, freight charges both in
ocean and air transport may be either prepaid in the currency of the
country of export or they may be billed collect for payment by the
consignee in his local currency. However, on shipments to some
countries freight charges must be prepaid because of foreign
exchange regulations of the country of import and/or rules of
steamship companies or airlines.
Pre-Slung Cargo: Cargo shipped already in a cargo sling or
net. Usually prepared and loaded at pier ready for arrival of vessel
and subsequent loading (i.e. coffee in bags, coconut shells, etc).
Price Quotation: An invoice prepared by the seller in advance
of shipment that documents the cost of goods sold, freight,
insurance, and other related charges. It is often used by the buyer
to secure a letter of credit, an import license or a foreign
currency allocation.
Prima Facie: Latin, "on first appearance." A term frequently
encountered in foreign trade. When a steamship company issues a
clean bill of lading, it acknowledges that the goods were received
"in apparent good order and condition" and this is said by the
courts to constitute prima facie evidence of the conditions of the
containers; that is, if nothing to the contrary appears, it must be
inferred that the cargo was in good condition when received by the
carrier.
primary-business test: A test the ICC uses to determine if a
trucking operation is bona fide private transportation. The private
trucking operation must be incidental to and in the furtherance of
the firm's primary business.
PRIORITY AIR FREIGHT: Reserved air freight or Air Express
service wherein shipments have a priority after mail and the small
package services. Any size or weight allowed within air freight
service limits is acceptable. Advanced reservations are permitted
for movement on a given flight and, in some cases, a partial refund
is paid the shipper if the shipment is not moved on the flight
specified.
PRIORITY LOGISTICS MANAGEMENT: The application of the JIT
(Just-In-Time) transportation theory.
PRIVATE CARRIER: A carrier that provides transportation
services to the company that owns or leases the vehicles and does
not charge a fee. Private motor carriers may haul freight at a fee
for their wholly owned subsidiaries.
private warehousing: The storage of goods in a warehouse owned by
the company that has title to the goods.
PRO NUMBER: A progressive or serial number applied for
identification purposes to freight bills, Bills of Lading, etc.
production planning: The decision-making area that determines
when and where and in what quantity a manufacturer is to produce
goods.
Productivity: A measure of resource utilization efficiency
defined as the sum of the outputs divided by the sum of the inputs.
profit ratio: The percentage of profit to sales--that is,
profit divided by sales.
PROFORMA: When coupled with the title of another document (proforma
invoice, proforma manifest), it means an informal document presented
in advance of the arrival or preparation of the required document in
order to satisfy a Customs requirement.
PROFORMA INVOICE: An invoice provided by a supplier prior to
the shipment of merchandise, informing the buyer of the kinds and
quantities of goods to be sent, their value, and important
specifications (weight, size, and similar characteristics). When an
importer applies for Letter of Credit as the means of payment, a Pro
Forma Invoice from the beneficiary of such Letter of Credit, usually
the exporter, is required by the L/C issuing bank.
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 it’s name.
PROject License: The Bureau of Export Administration uses the
project license to authorize large-scale exports of a wide variety
of commodities and technical data for specified activities. Those
activities are restricted to capital expansion, maintenance, repair
or operating supplies, or the supply of materials to be used in the
production of other commodities for sale. Items intended for resale
in the form received are not permitted and must be effected under a
Distribution License.
PROMOTIONAL RATE: A rate applying to traffic under special
conditions and usually confined to movement between a limited number
of cities. Early rates on fresh farm produce which helped develop
increased air freight volumes from the west coast to eastern cities
are examples of promotional rates. See SPECIAL RATES.
PROOF OF DELIVERY (POD): Information provided to payer
containing name of person who signed for the package with the date
and time of delivery. This term has been widely used in courier and
express industry and also gaining more attention and implementation
at air cargo industry. See also AUTOMATIC POD.
PROOF OF PERFORMANCE: See PROOF OF DELIVERY.
PROPORTIONAL RATE: See ARBITRARY.
PRORATE: A portion of a joint rate between the carriers
concerned, on an agreed basis.
PROTECTIVE SERVICE: Many airlines offer a protective service
where shippers can arrange to have their shipments under carrier
surveillance at each stage of transit from origin to destination.
This service can be extended to pickup and delivery. Shippers can
also arrange for armed guard protection. There is usually an extra
charge for various levels of protective service. See SIGNATURE
SERVICE.
Protest: Customs Form 19 allows for a refund of an
overpayment of duty if filed within 90 days of liquidation.
PUBLIC WAREHOUSE: Storage place renting space to anybody
desiring it. There are 5 types: 1) Ordinary or merchandise. 2)
Commodity. 3) Household goods. 4) Cold storage and 5) Field or
branch. Some states regard public warehouses as public utilities and
fix their rates.
public warehouse receipt: The basic document a public
warehouse manager issues as a receipt for the goods a company gives
to the warehouse manager. The receipt can be either negotiable or
nonnegotiable.
Pull or Pull-through distribution: Supply-chain action
initiated by the customer. Traditionally, the supply chain was
pushed; manufacturers produced goods and "pushed" them through the
supply chain, and the customer had no control. In a pull
environment, a customer's purchase sends replenishment information
back through the supply chain from retailer to distributor to
manufacturer, so goods are "pulled" through the supply chain.
Pull Ordering System: A system in which each warehouse
controls its own shipping requirements by placing individual orders
for inventory with the central distribution center.
PURCHASE ORDER: Form used by buyer when placing an order for
merchandise or supplies.
purchase price discount: A pricing structure in which the
seller offers a lower price if the buyer purchases a larger
quantity.
Purchasing: The functions associated with buying the goods
and services the firm requires.
pure raw material: A raw material that does not lose weight in
processing.
Push ordering system: A situation in which a firm makes
inventory deployment decisions at the central distribution center
and ships to its individual warehouses accordingly.
QA: Abbreviation for
“Quality Assurance”.
QUALITY CIRCLES: groups of workers formed to improve quality and
productivity that are usually task orientated with voluntary
participation.
QUALITY CONTROL: The management function that attempts to ensure
that the goods or services manufactured or supplied meet the desired
specifications.
QUAY: Manmade docking area for loading/unloading of vessels. Docking
is parallel allowing loading/unloading from one side of the ship.
Quantity discount: A percentage reduction of a rate based on
quantity.
Quick response: A consumer-driven system of replenishment in which
high-quality products and accurate information flow through a
paperless (EDI) system between all distribution points from
manufacturing line to retail checkout counter.
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.
Quotas and Quota System: Absolute quotas permit a limited number of
units of specified merchandise to be entered or withdrawn for
consumption during specified periods. Tariff-rate quotas permit a
specified quantity of merchandise to be entered or withdrawn at a
reduced rate during a specified period. Quotas are established by
Presidential Proclamations, Executive Orders, or other legislation.
The Quota System, a part of Customs' Automated Commercial System,
controls quota levels (quantities authorized) and quantities entered
against those levels. Visas control exports from the country of
origin. Visa authorizations are received from other countries and
quantities entered against those visas are transmitted back to them.
Control of visas and quotas simplify reconciliation of other
countries' exports and U.S. imports.
R/C: Abbreviation for
“Reconsigned”
R&C: Abbreviation for “Rail and Canal”
R&D: Abbreviation for “Research and Development”
R&E: Abbreviation for “Research and Engineering”
RADIOACTIVE MATERIAL: As defined in the HAZARDOUS MATERIAL
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 definitions of radioactivity.
RAM: Abbreviation for “Random Access Memory”. Temporary memory on
micro chips. Users can store data in RAM or take it out at high
speeds. However, any information stored in RAM disappears when the
computer is shut off.
RATE BASIS: Formula of specific factors/elements which control the
making of a rate.
rate basis number: The distance between two rate basis points.
rate basis point: The major shipping point in a local area. Carriers
consider all points in the local area to be the rate basis point.
rate bureau: A carrier group that assembles to establish joint
rates, to divide joint revenues and claim liabilities, and to
publish tariffs. Rate bureaus have published single line rates,
which were prohibited in 1984.
RATE CLASS: A rate applicable to a specifically designated class of
goods, in or between specified areas.
RATE WAR: When carriers cut rates in an effort to secure tonnage.
RCC: Abbreviation for “Riots and civil commotions”
RCC&S: Abbreviation for “Riots, civil commotions and strikes”
Re-exports: For export control purposes: the shipment of U.S. origin
products from one foreign destination to another.
For statistical reporting purposes: exports of foreign-origin
merchandise which have previously entered the United States for
consumption or into Customs bonded warehouses for U.S. Foreign Trade
Zones.
RE-INSURANCE: Insurance of all/part of risk by another insurer
previously assumed by an insurance company.
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.
Recapture Clause: A provision of the 1920 Transportation Act that
provided for self-help financing for railroads. Railroads that
earned more than the prescribed return contributed one-half of the
excess to the fund from which the ICC made loans to less profitable
railroads. The Recapture Clause was repealed in 1933.
RECIPROCITY: 1) An exchange of rights. 2) In motor transportation,
may involve granting equal rights to vehicles in several states in
which reciprocity agreements are in effect. 3) To give preference in
buying to vendors who are customers of the company.
RECOURSE: An obligation, if not met, goes back to the original
drawer. “Without Recourse” drawing relieves the drawer of liability.
Reconsignment: A carrier service that permits a shipper to change
the destination and/or consignee after the shipment has reached its
originally billed destination and to still pay the through rate from
origin to final destination.
Red Clause Letter of Credit: A letter of credit that allows the
exporter to receive a percentage of the face value of the letter of
credit in advance of shipment. This enables the exporter to purchase
inventory and pay other costs associated with producing and
preparing the export order.
Reed-Bulwinkle Act: Legislation that legalized common carrier joint
rate making through rate bureaus; extended antitrust immunity to
carriers participating in a rate bureau.
REEFER: Slang term for refrigerated trailer for hauling perishables.
Sometimes used in reference to other types of transportation
equipment. E.g. reefer car equipment referring to a railcar with
refrigeration equipment.
Reengineering: A fundamental rethinking and radical design of
business processes to achieve dramatic improvements in performance.
refrigerated warehouse: A warehouse that is used to store perishable
items requiring controlled temperatures.
regional carrier: A for-hire air carrier, usually certificated, that
has annual operating revenues of less than $75 million; the carrier
usually operates within a particular region of the country.
regular-route carrier: A motor carrier that is authorized to provide
service over designated routes.
REGISTER OF SHIPS: Vessels must be registered in the Marine Registry
of some country after inspection, rating, measurement etc. This
register, kept normally by the collector of customs, contains names,
ownership and other facts relative to each vessel.
REGULAR-ROUTE CARRIER: A motor carrier that is authorized to provide
service over designated routes.
RELAY TERMINAL: A motor carrier terminal designed to facilitate the
substitution of one driver for another whom has driven the maximum
hours permitted.
released-value rates: Rates based upon the shipment's value. The
maximum carrier liability for damage is less than the full value,
and in return the carrier offers a lower rate.
RELIABILITY: A carrier selection process that considers the
variation in carrier transit times and the consistency of the
transit times provided.
REMITTANCE FOLLOWING COLLECTION (RFC): In instances when the shipper
has performed services incidental to the transportation of goods, a
carrier will collect payment for these services from the receiver
and remit such payment to the shipper. The carriers charge a nominal
fee for this service.
reorder point: A predetermined inventory level that triggers the
need to place an order. This minimum level provides inventory to
meet the demand a firm anticipates during the time it takes to
receive the order.
REPARATION ORDER: Redress in the form of adjustment/reimbursement on
account of unjust/unreasonable charges assesses after submission has
been proven to the ICC.
REPLEVIN: Legal action instituted to recover possession of property
unlawfully taken or detained. This recovery would be accomplished
through court action.
RESERVED FREIGHT SPACE: A service by some airlines enabling
forwarders and shippers to reserve freight space on designated
flights. See PRIORITY AIR FREIGHT. Also RESERVATION.
RESERVATION: See RESERVED FREIGHT SPACE.
RESTRICTED ARTICLES: An airline term meaning a hazardous material as
defined by Title 49, Code of Federal Regulations (U.S.) and Air
Transport Restricted Articles Circular 6-D. Restricted articles may
be transported domestically and be classified dangerous goods when
transported internationally by air. See also HAZARDOUS MATERIAL.
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 firsts country's exports.
RETARDATION: A force causing container and cargo to move fore, aft
and upwards.
RETROACTIVE: Application of law, rule, tariff, provision etc. to
time before the rule, law, etc. became effective.
Reverse logistics: Sometimes called “Green Logistics”. Refers to
aftermarket logistics activities such as returns, repairs, recycling
and disposal.
Reverse Preferences: Tariff advantages once offered by developing
countries to imports from certain developed countries that granted
them preferences. Reverse preferences characterized trading
arrangements between the European Community and some developing
countries prior to the advent of the Generalized System of
Preferences (GSP) and the signing of the Lome Convention.
Revocable Letter of Credit: A letter of credit which can be
cancelled or altered by the drawee (buyer) after it has been issued
by the drawee's bank.
RF: Abbreviation for “Radio Frequency” whereby users relay
information via electromagnetic energy waves from a terminal to a
base station, which is linked in turn to a host computer. The
terminals can be place at a fixed station, mounted on a forklift
truck, or carried in the worker's hand. The base station contains a
transmitter and receiver for communication with the terminals. RF
systems use either narrow-band or spread-spectrum transmissions.
Narrow-band data transmissions move along a single limited radio
frequency, while spread-spectrum transmissions move across several
different frequencies. When combined with a bar-code system for
identifying inventory items, a radio-frequency system can relay data
instantly, thus updating inventory records in so-called "real time."
RFC: See REMITTANCE FOLLOWING COLLECTION.
right of eminent domain: A concept that, in a court of law, permits
a carrier to purchase land it needs for transportation right-of-way.
Used by railroads and pipelines.
RISK: 1) A term usually applied to insurance as a measure of the
probability of loss. 2) The degree to which an investor exposes
himself to the possibility of the loss of money.
ROLLING: The side to side (ATHWARTSHIP) motion of a vessel.
ROLLING STOCK: Freight/passenger cars owned by rail carriers. Not
including motive power equipment. Also buses, trucks and trailers
owned by motor carriers.
ROLL-ON/ROLL-OFF (RO/RO): Feature in specially constructed vessels
permitting road vehicles to drive on and off the vessel in
loading./discharging ports.
RO/RO: See ROLL-ON/ROLL-OFF.
ROUTE –1) Course/direction that shipment moves. 2) To designate
course/direction that shipment shall move. 3) Carriers with junction
points over which shipment moves.
ROUTING: 1) Process of determining how shipment shall move between
point of origin and point of destination. 2) Right of shipper to
determine carriers, routes and points of transfer on FTL and FCL
shipments.
Royalty: A charge on charter flights levied by some governments
before traffic rights are granted. Sometimes called a "no objection
fee." Usually a fixed proportion of a total charter value.
rule of eight: Before the Motor Carrier Act of 1980, the ICC
restricted contract carriers requesting authority to eight shippers
under contract. The number of shippers has been deleted as a
consideration for granting a contract carrier permit.
rule of rate making: A regulatory provision directing the regulatory
agencies to consider the earnings a carrier needs to provide
adequate transportation.
RATE: The amount charged for a unit of weight (or volume) or value
of goods. Also, the established shipping charge for movement of
goods. In interstate transportation, price/rate is approved by ICC.
RUNNING GEAR: Complementary equipment for terminal and over-the-road
handling of containers.
S&FA: “Shipping and
forwarding agent”.
S/N: Abbreviation for “Shipping Note”.
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 maritime insurance, the loss sustained by necessary
sale of goods at a port prior to expected destination because of
PERILS OF THE SEA. Treated as total loss with amount realized from
the sale of goods credited on amount payable under policy.
Sanitary and Health Certificate: A statement signed by a health
organization official certifying the degree of purity, cleanliness,
or spoilage of goods, and the health of live animals.
Satellite tracking: Takes advantage of space-age communications to
track the whereabouts of a truck. The communications are actually
facilitated by two orbiting satellites. One serves as the
communications link between driver and dispatcher, the other as the
vehicle tracker. Two-way communications between the truck driver and
dispatcher are routed through the first satellite. The second
tracker satellite gives a fix on location. A truck dispatcher can
determine a truck's location by measuring signal length from the
tracker satellite to a communications terminal mounted in the truck
cab.
SCALE OF RATES: Numerous rates adjusted in relation to each other.
SCHEDULE B: Short form of “Schedule B, Statistical Classification of
Domestic and Foreign Commodities Exported from the United States”.
All commodities exported from the USA must be assigned a seven-digit
Schedule B number. A US Bureau of the Census publication and is
based on the Harmonized Commodity Description and Coding System
(Harmonized System). Export statistics are initially collected and
compiled in terms of approximately 8,000 commodity classifications.
Scheduled Flight: Any service that operates to a set timetable.
SCOW: Hollow, flat bottomed boat used for transporting gravel, sand,
and similar bulk commodities.
SCR: “Specified Commodity Rate”. Applied to narrowly specified
commodities. Usually granted on relatively large shipments.
Theoretically is of limited time duration.
SDI: Abbreviation for “Strategic Defense Initiative”.
SEA-BEE VESSEL: Ocean vessel constructed with heavy duty submersible
hydraulic lift or elevator system located in the stern of the
vessel. The Sea-Bee system moves barges from one inland coastal
water system to another. Sea-Bee barges are larger that LASH barges.
SEAL: Device applied to freight containers, railcars and motor
vehicle door fastenings which shows that door fastening where a seal
has been applied has not been tampered with between the time of its
application and the time of breaking the seal.
SEAWORTHINESS: Sufficiency of vessel in materials, construction,
equipment, officers and crew for voyage/service where employed. An
implied condition of all policies of maritime insurance unless
otherwise specifically stipulated.
Sector: Distance between two ground points within a route.
SED: See SHIPPER'S EXPORTATION DECLARATION.
SELF-INSURANCE: Assumption of risk without insurance coverage
through systematic provisions of funds to provide for the loss which
individual/company may suffer.
SELF-SUSTAINING: Vessel has its own cranes and equipment mounted on
board for loading/unloading. Used in ports where shore cranes and
equipment are lacking.
SEMI: Slang term for semi-trailer. Also used loosely in referring to
tractor-trailer combination.
Semiconductor Trade Arrangement: The U.S.-Japan Semiconductor Trade
Arrangement is a bilateral agreement which came into effect on
August 1, 1991, replacing the prior 1986 Semiconductor Trade
Arrangement. The new Arrangement contains provisions to: (a)
increase foreign access to the Japanese semiconductor market and (b)
deter dumping of semiconductors by Japanese suppliers into the U.S.
market, as well as in third country markets. In evaluating market
access improvement, both governments agreed to pay particular
attention to market share. The expectation of a 20 percent foreign
market share by the end of 1992 is included in the Arrangement. The
Arrangement explicitly states, however, that the 20 percent figure
is not a guarantee, a ceiling, or a floor on the foreign market
share.
separable cost: A cost that a company can directly assign to a
particular segment of the business.
SERVICE COMMITMENTS: Pickup and/or delivery commitments agreed to
the carrier and shipper.
setup costs: The costs a manufacturer incurs in staging the
production line to produce a different item.
Service: The defined, regular pattern of calls made by a carrier in
the pick-up and discharge of cargo.
Service Contract: A contract between a shipper and an ocean carrier
of conference, in which the shipper makes a commitment to provide a
minimum quantity of cargo over a fixed time period.
SERVICE SHIP AGENT: A liner company to tramp-ship operator
representative who facilitates ships arrival, clearance,
loading/unloading and fee payment while at a specific port.
Set Up: Articles in their assembled condition.
SHIP BROKER: An individual or company that serves as a go-between
for the tramp shipowner and the chartering consignor or consignee.
SHIP CHANDLER: One who furnishes everything necessary to equip a
vessel.
ship agent: A liner company or tramp ship operator representative
who facilitates ship arrival, clearance, loading and 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's Manifest: A list, signed by the captain of a ship, of the
individual shipments constituting the ship's cargo.
SHIP’S PAPERS: Merchant vessels are required to carry the following
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) Bills of Lading or duplicate receipts of cargo from
master to shipper. 8) Manifest or general statement of cargo. 9)
Invoice or detailed statement of cost of goods. 10) Clearance or
permission from authorities to sail. 11) Certificate of Inspection.
12) Passenger list if passengers are carried. 13) Bill of sale if
the ship has been sold. 14) Officers licenses and 15) License to
carry on port trade.
Ship's Tackle: All rigging, etc., utilized on a ship to load or
discharge cargo.
SHIPPER: See CONSIGNOR.
SHIPPER'S ACCOUNT NUMBER: See ACCOUNT NUMBER.
SHIPPER’S AGENT: A company that acts primarily to match up small
shipments: especially single traffic piggyback loads to permit the
use of twin-trailer piggyback rates.
shippers association: A nonprofit, cooperative consolidator and
distributor of shipments that member firms own or ship; acts in much
the same way as a for-profit freight forwarder.
Shipper's certificate: Form filled out and presented by shipper to
outbound carrier at transit point, together with instructions and
inbound carrier's freight bill, asking for reshipping privilege and
transit rate on commodity previously brought into transit point.
SHIPMENT: 1) Lot of freight tendered at one place for delivery to
the consignee at one place, on one or more Bills of Lading. 2)
Goods/merchandise in one or more containers, pieces or parcels for
transportation from one shipper to single destination.
SHIPPER’S CERTIFICATE: Form filled out and presented by shipper to
the outbound carrier at transit point (together with instructions
and outbound carrier’s freight bill) which requests re-shipping
privileges and transit rates on commodity previously brought into
transit point.
SHIPPER'S EXPORTATION DECLARATION (SED): The SED includes complete
particulars on individual shipments and is used to control exports
and act as a source document for the official US export statistics.
SEDs must be prepared for shipments through the US Postal Service
when the shipment is valued over $500. SEDs are required for
shipments, other than by the US Postal Service, where the value of
commodities classified under each individual Schedule B number is
over $2,500. SEDs must be prepared, regardless of value, for all
shipments requiring a validated export license or destined for
countries prohibited by the Export Administration Regulations. SEDs
are prepared by the exporter and the exporter's agent and delivered
to the exporting carrier (such as: post office, airline, or vessel
line). The exporting carrier presents the required number of copies
to the US Customs Service at the port of export. The Foreign Trade
Statistical Regulations (15 CFR, Part 30) provide the statistical
requirements for use by exporters, freight forwarders, and ocean
carriers concerning preparation and filing of SEDs.
SHIPPER'S LETTER OF INSTRUCTION: A form used by a shipper to
authorize an airline, broker or forwarder to issue an air waybill on
the shipper's behalf. The form contains all details of shipment and
authorizes the airline, broker or forwarder to sign the air waybill
in the name of the shipper.
SHIPPER'S LOAD AND COUNT: Note on bill of lading indication that the
contents of a container were loaded and counted by the shipper and
not checked or verified by the Steamship Company.
SHIPPING DOCUMENTS: Documents other than transportation receipts or
transportation contracts requited to enable shipments to be
forwarded or received.
Shipping Mark: The letters, numbers or other symbols placed on the
outside of cargo to facilitate identification.
Shipping Weight: Shipping weight represents the gross weight in
kilograms of shipments, including the weight of moisture content,
wrappings, crates, boxes, and containers (other than cargo vans and
similar substantial outer containers).
short-haul discrimination: Charging more for a shorter haul than for
a longer haul over the same route, in the same direction, and for
the same commodity.
SHORT SHIPMENT: Piece of freight missing from shipment. Cargo
received is less than what is stipulated by documents on hand.
short ton: 2,000 pounds.
SHORT-SHIPPED: Cargo manifested but not loaded.
SIC: See STANDARD INDUSTRIAL CLASSIFICATION.
SIGHT DRAFT: A sight draft is a COD in international trade and
usually calls for the release of the Bill of Lading and all other
documents against cash payment to the collecting bank.
SIGNATURE SERVICE: A service designed to provide continuous
responsibility for the custody of shipments in transit. So named
because a signature is required from each person handling the
shipment at each stage of its transit from origin to destination.
Simulation: A computer model that represents a real-life logistics
operation with mathematical symbols and runs it for a simulated
length of time to determine how proposed changes will affect the
operation.
Single Entry Charter- A non-scheduled flight carrying the cargo of
one shipper.
SIT: Abbreviation for “Stopped in Transit”
SITA: See SOCiete International de Telecommunications Aeronautiques.
SITC: See STANDARD INTERNATIONAL TRADE CLASSIFICATION.
Site: A particular platform or location for loading or unloading at
a place.
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.
SKU: See stock-keeping unit:
SL&C: Abbreviation for “Shipper's Load and Count”.
SL&T: Abbreviation for “Shipper's Load and Tally
sleeper team: Two drivers who operate a truck equipped with a
sleeper berth; while one driver sleeps in the berth to accumulate
mandatory off-duty time, the other driver operates the vehicle.
SLIDING TANDEM: An assembly rigged in a chassis that may be shifted
to adjust axle weights.
slip seat operation: A motor carrier relay terminal operation in
which a carrier substitutes one driver for another who has
accumulated the maximum driving time hours.
slip sheet: Similar to a pallet, the slip sheet, which is made of
cardboard or plastic, is used to facilitate movement of unitized
loads.
SLURRY: Dry commodities that are made into a liquid form by the
addition of water or other fluids to permit pumping through
pipelines.
SMALL PACKAGE SERVICE: A specialized service to guarantee the
delivery of small parcels within specified express time limits, e.g.
“Same-day” or “Next-day”. This traffic is subject to size and weight
limitations. Air carriers that also transport passengers will accept
these packages at the airport ticket counters with delivery at
destination baggage claim area. Many carriers provide door-to-door
service on a 24 hour basis.
SOCIETE ANONYME: French name for “corporation”.
SOCiete International de Telecommunications Aeronautiques (SITA):
Since 1949, SITA has been providing communications and information
solutions to the world's air transport community.
Society of Logistics Engineers: A professional association engaged
in the advancement of logistics technology and management.
Soft Currency: The currency of a nation in which exchange may be
made only with difficulty. Soft currency countries typically have
minimal exchange reserves and deficits in their balance of payments.
software - A computer term that describes the system design and
programming that the computer's effective use requires.
SOL: Abbreviation for “Ship Owner's Liability”
South Pacific Forum: The SPF is a regional arrangement for convening
15 governments and territories for deliberations on issues of mutual
interest. The Forum was established in 1971; headquarters are in
Suva, Fiji; members include: Australia, the Cook Islands, Fiji,
Kirbati, Marshall Islands, Micronesia, Nauru, New Zealand, Niue,
Papua New Guinea, Samoa, Solomon Island, Tonga, Tuvalu, and Vanatu.
The South Pacific Bureau for Economic Cooperation (SPEC) is a
subsidiary organization which promotes regional cooperation in the
development of the island members in partnership with the more
industrially developed countries of the region: Australia and New
Zealand.
Special 301: The Special 301 statute requires the United States
Trade Representative (USTR) to review annually the condition of
intellectual property protection among U.S. trading partners.
Submissions are accepted from industry after which the USTR,
weighing all relevant information, makes a determination as to
whether a country presents excessive barriers to trade with the
United States by virtue of its inadequate protection of intellectual
property. If the USTR makes a positive determination, a country may
be named to the list of: (a) Priority Foreign Countries (the most
egregious), (b) the Priority Watch List, or (c) the Watch List.
Special 301 (a variation of Section 301) was created by the Omnibus
Trade and Competitiveness Act of 1988.
SPECIAL POLICY OF INSURANCE: Document issued on behalf of the
Underwriter stating the terms and conditions of the marine
insurance. Issued when evidence of insurance is required, as by the
bank issuing the Letter of Credit.
SPECIAL RATES: Rates that apply to traffic under special conditions
and usually at a limited number of cities. Examples of such rates
are container rates, exception ratings, surface-air rates, and
import rates.
special-commodities carrier: A common carrier trucking company that
has authority to haul a special commodity; the sixteen special
commodities include household goods, petroleum products, and
hazardous materials.
special-commodity warehouses: A warehouse that is used to store
products requiring unique facilities, such as grain (elevator),
liquid (tank), and tobacco (barn).
SPECIFIC COMMODITY RATE: Rate applicable to certain classes of
commodities. Usually commodities moving in volume shipments. Hence
specific commodity rates are usually lower than the general
commodity rate between the same pair of cities.
Split Charter: Where a number of consignments from different
shippers are carried on the same non-scheduled aircraft. Under U.K.
regulations a non-scheduled flight chartered by a single forwarder
or agent on behalf of a number of shippers is still classified as a
split charter. Under U.S. regulations, a forwarder chartered flight
is classified as a single entity although it can consolidate.
SPOTTING: Placing an ocean container or railcar to be
loaded/unloaded.
SPREADER: Device for spreading lifting cables on crane to provide
balanced lift on four corners of an ocean container allowing load to
be lifted straight up.
spur track: A railroad track that connects a company's plant or
warehouse with the railroad's track; the user bears the cost of the
spur track and its maintenance.
SS: Abbreviation for “Steamship” A steam powered ship (Steam driven
turbines)
staff functions: The planning and analysis support activities a firm
provides to assist line managers with daily operations. Logistics
staff functions include location analysis, system design, cost
analysis, and planning.
STANDARD INTERNATIONAL TRADE CLASSIFICATION (SITC): One of a number
of numerical commodity codes developed by the United Nations and
adopted by the US airlines as the basis for numerical identification
of commodities moving in air freight. The SITC was developed in 1950
and is used solely by international organizations for reporting
international trade. The SITC has been revised several times; the
current version is Revision 3. See HARMONIZED COMMODITY DESCRIPTION
AND CODING SYSTEM,
Standard Industrial Classification (SIC): The SIC is the
classification standard underlying all establishment-based U.S.
economic statistics classified by industry.
STARBOARD: Right side of ship.
Statistical Office of the European Community: EUROSTAT provides
European Economic Community-wide statistics on economics, finance,
foreign trade, services, transportation, industry, population,
social conditions, energy, agricultural, forestry, and other topics.
Eurostat offices are located in Luxembourg.
statistical process control: A managerial control technique that
examines a process's inherent variability.
STATUTORY NOTICE: Length of time required by law for carriers to
give notice of changes in tariffs, rates, rules and regulations.
Usually 30 days unless otherwise permitted by the relevant
regulatory authorities.
Steamship Agent: A duly appointed and authorized representative in a
specified territory acting in behalf of a steamship line or lines
and attending to all matters relating to the vessels owned by his
principals.
STEAMSHIP CONFERENCES: Collective rate-making bodies for vessels.
See also CONFERENCE.
Steamship Line: Company is usually composed of the following
departments; vessel operations, container operations, tariff
department, booking, outbound rates, inward rates and sales. the
company can maintain its own in country U.S. offices to handle
regional sales, operations and/or other matters or appoint steamship
agents to represent them doing same. Some lines have liner offices
in several regions and have appointed agents in others.
stock-keeping unit: A single unit that has been completely
assembled. In a DRP system, an item is not considered complete until
it is where it can satisfy customer demand.
stockless purchasing: A practice whereby the buyer negotiates a
purchase price for annual requirements of MRO items and the seller
holds inventory until the buyer orders individual items.
Stockout: A situation in which the items a customer orders are
currently unavailable.
stockout cost: The opportunity cost that companies associate with
not having supply sufficient to meet demand.
stores: The function associated with storing and issuing frequently
used items.
STOW: To arrange in compact mass. E.g. To stow cargo in the hold of
a ship.
Stowage: The lacing of cargo in a vessel in such a manner as to
provide the utmost safety and efficiency for the ship and the goods
it carries.
STRADDLE CARRIER: Mobile truck equipment with the capacity of
lifting an ocean container within its own framework.
strategic planning: Looking one to five years into the future and
designing a logistical system (or systems) to meet the needs of the
various businesses in which a company is involved.
strategic variables: The variables that effect change in the
environment and logistics strategy. The major strategic variables
include the economy, population, energy, and government.
Strategy: A specific action to achieve an objective.
STRAIGHT BILL OF LADING: Non-negotiable document that provides that
shipment is to be delivered direct to the party whose name is shown
as the consignee. Carrier does not require its surrender upon
delivery unless when needed to identify the consignee.
stretch-wrap: An elastic, thin plastic material that effectively
adheres to itself, thereby containing product on a pallet when
wrapped around the items.
STRIPPING: In truck transportation, means the emptying the truck of
its cargo and arranging shipments by destination.
Structural Impediments Initiative: The SII was started in July 1989
to identify and solve structural problems that restrict bringing
two-way trade between the U.S. and Japan into better balance. Both
the U.S. and Japanese governments chose issues of concern in the
other's economy as impediments to trade and current account
imbalances. The areas which the U.S. Government chose as focus
included: (a) Japanese savings and investment patterns, (b) land
use, (c) distribution, (d) keiretsu, (e) exclusionary business
practices, and (f) pricing. Areas which the Japanese Government
chose as focus included: (a) U.S. savings and investment patterns,
(b) corporate investment patterns and supply capacity, (c) corporate
behavior, (d) government regulation, (e) research and development,
(f) export promotion, and (g) workforce education and training. In a
June 1990 report, the U.S. and Japan agreed to 7 meetings in the
following three years to review progress, discuss problems, and
produce annual joint reports.
STUFFING: Slang term for loading container with cargo.
SUBROGATION: Right of an insurance company to recover the amount
paid to insured from a third party who may have caused the loss.
Substitution of one creditor for another.
Subsidy: An economic benefit granted by a government to producers of
goods or services, often to strengthen their competitive position.
Substitutability: A buyer's ability to substitute different sellers'
products.
Sue & Labor Clause: A provision in marine insurance obligating the
assured to do things necessary after a loss to prevent further loss
and to act in the best interests of the insurer.
Super 301: This provision was enacted due to Congressional concern
that the regular Section 301 procedures narrowly limit U.S.
attention to the market access problems of individual sectors or
companies. Super 301 sets procedures to identify and address within
three years certain "priority", systemic trade restriction policies
of other nations. Super 301 was created by the Omnibus Trade and
Competitiveness Act of 1988. Super 301 authority expired May 30,
1990.
supplemental carrier: A for-hire air carrier having no time schedule
or designated route; the carrier provides service under a charter or
contract per plane per trip.
Supply chain: Starting with unprocessed raw materials and ending
with the final customer using the finished goods, the supply chain
links many companies together. Also, the material and informational
interchanges in the logistical process stretching from acquisition
of raw materials to delivery of finished products to the end user.
All vendors, service providers and customers are links in the supply
chain.
Supply chain management: The practice of controlling all the
interchanges in the logistics process from acquisition of raw
materials to delivery to end user. Ideally, a network of firms
interact to deliver the product or service. Also, a combination of
traditional logistics functions of distribution and materials
management with the procurement of raw materials and/or inventory
and sales, marketing, information technology, and strategic planning
functions.
supply warehouse: A warehouse that stores raw materials; a company
mixes goods from different suppliers at the warehouse and assembles
plant orders.
SURCHARGE: An add-on charge to the applicable charges. Motor
carriers have a fuel surcharge and railroads can apply a surcharge
on any joint rate that does not yield 110 percent of the variable
cost.
SURETY BOND: Contract between principal and responsible third party
(surety) which makes the surety monetary responsible for the
principal’s fulfillment of obligation to obligee (party who is
protected).
Surety Company: An insurance company
SURVEYOR: A marine specialist who examines damaged property and
determines the cause, nature, and extent of damage and methods of
repair and/or replacement. He is not an adjuster, and all his
actions are without prejudice to policy terms and conditions.
switch engine: A railroad engine that is used to move railcars short
distances within a terminal and plant.
switching company: A railroad that moves railcars short distances;
switching companies connect two mainline railroads to facilitate
through movement of shipments.
System: A set of interacting elements, variables, parts, or objects
that are functionally related to each other and form a coherent
group.
SYSTEMS CONCEPT: A decision-making strategy that emphasizes overall
efficiency of the individual parts of the system.
T&E: See TRANSPORTATION
AND EXPORTATION
T/T: Abbreviation for “Telegraphic Transfer”. Also referred to as
“Wire Funds”.
Table of Denial Orders: A list of individuals and firms that have
been disbarred from shipping or receiving U.S. goods or technology.
Firms and individuals on the list may be disbarred with respect to
either controlled commodities or general destination
(across-the-board) exports. The list is published in the Export
Administration Regulations.
TACM: See TRANSIT AIR CARGO MANIFEST.
TALLY SHEET: List of cargo, incoming and outgoing, checked by a
Tally Clerk on dock. Also, a printed form on which companies record,
by making an appropriate mark, the number of items they receive or
ship. In many operations, tally sheets become a part of the
permanent inventory records.
TANDEM: A truck that has two drive-axles or a trailer that has two
axles.
tank cars: Railcars designed to haul bulk liquid or gas commodities.
TANKTAINER: Tank built into standard container 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 on freight shipment that can be
deducted from packing weight. Usually allowance is about four pounds
per 104 pounds.
TARE WEIGHT: The weight of the container before loading of goods
being shipped. The actual weight of the container when empty.
TARIFF: 1) A document setting forth applicable rules, rates, and
charges for the movement of goods. A tariff sets forth a contract of
carriage for the shipper, the consignee, and the carrier. 2) In
addition to the domestic tariffs published by Airline Tariff
Publishing Company, some airlines also publish their own tariffs
covering special services. International tariffs containing freight
rates of the U.S. international carriers are published by the U.S.
flag carriers. 3) Offer of goods for transportation by shipper, or
offer of delivery by carrier. 4) A general term for any listing of
rates, charges, etc. the tariffs most frequently encountered in
foreign trade are: tariffs of the international transportation
companies operating on sea, on land, and in the air; tariffs of the
international cable, radio, and telephone companies; and the customs
tariffs of the various countries, which list goods that are duty
free and those subject to import duty, giving the rate of duty in
each case. There are various classes of customs duties. 5) A tax
assessed by a government in accordance with its tariff schedule on
goods as they enter (or leave) a country. May be imposed to protect
domestic industries from imported goods and/or to generate revenue.
Types include ad valorem, specific, variable, or some combination.
Tariff Act of 1930: Title VII of the Tariff Act of 1930, as amended,
provides for the imposition of antidumping duties on imported
merchandise found to have been sold in the United States at "less
than fair value," if these sales have caused or are likely to cause
material injury to, or materially retard the establishment of, an
industry in the United States.
Tariff Anomaly: A tariff anomaly exists when the tariff on raw
materials or semi-manufactured goods is higher than the tariff on
the finished product.
Tariff Escalation: A situation in which tariffs on manufactured
goods are relatively high, tariffs on semi-processed goods are
moderate, and tariffs on raw materials are nonexistent or very low.
TARIFF QUOTAS: Application of a higher tariff rate to imported goods
after a specified quantity of the item has entered the country at a
lower prevailing rate.
Tariff Schedule: A comprehensive list of the goods which a country
may import and the import duties applicable to each product.
Tariff Schedules of the United States Annotated: Effective 1979 to
January 1989, the U.S. import statistics were initially collected
and compiled in terms of the commodity classifications in the Tariff
Schedules of the United States Annotated (TSUSA), an official
publication of the U.S. International Trade Commission embracing the
legal text of the Tariff Schedules of the United States (TSUS)
together with statistical annotations. This publication was
superseded by the Harmonized Tariff Schedule of the United States
Annotated for Statistical Reporting Purposes (HTSUSA) in January
1989. Effective 1979 to January 1989, the U.S. export statistics
were initially collected and compiled in terms of the commodity
classifications in Schedule B, Statistical Classification of
Domestic and Foreign Commodities Exported from the United States.
Schedule B is a U.S. Bureau of the Census publication and, during
this period, was based on the framework of the TSUS. In January
1989, this publication was replaced by Schedule B based on the
Harmonized System.
TBL: See Through bill of lading.
Technology: BXA regulations define technical data as "information of
any kind that can be used, or adapted for use, in the design,
production, manufacture, utilization, or reconstruction of articles
or materials. Technology can be either "tangible" or "intangible."
Models, prototypes, blueprints or operating manuals (even if stored
on recording media) are examples of tangible technology. Intangible
technology consists of technical services, such as training, oral
advice, information guidance and consulting.
Technology Transfer: This term is used to characterize "the transfer
of knowledge generated and developed in one place to another, where
is it is used to achieve some practical end." Technology may be
transferred in many ways: by giving it away (technical journals,
conferences, emigration of technical experts, technical assistance
programs); by industrial espionage; or by sale (patents, blueprints,
industrial processes, and the activities of multinational
corporations). Also, the transfer of technology mandated as part of
a COUNTERTRADE or offset agreement, other than co-production or
license production. It may be in the form of research and
development, technical assistance and training, or patent agreements
between manufacturers. This is central to many Third World
enterprises, public and private, and is the focus of a large number
of COUNTERTRADE and offset deals.
Technical Barrier to Trade: According to the Standards Code, a
specification which sets forth characteristics or standards a
product must meet (such as levels of quality, performance, safety,
or dimensions) in order to be imported.
TEMPERATURE CONTROLLED CARGO: Any cargo requiring carriage under
controlled temperature.
TEMPERATURE CONTROLLED GROUND HANDLING: Many of the commodities
moving in air freight must be protected against sudden changes in
temperatures. The temperature of a jet freighters cabin is ideal to
maintain perishables in peak condition but the increase in the
shipment of perishables by air required new strides in ground
handling to protect cargoes from spoilage induced by marked
differences in temperatures often encountered on the ground at
points of origin and destination. To meet these needs, the airlines
have, at some cities, special equipment and facilities ranging from
heated vans to temperature controlled holding rooms in which up to
100,000 pounds of perishables can be held at any one time.
TEMPORARY AUTHORITY: The ICC may grant a temporary operating
authority as a common carrier for up to 270 days.
TEMPORARY Importation UNDER BOND (TIB): When an importer makes entry
of articles brought into the United States temporarily and claimed
to be exempt from duty under Chapter 98, Subchapter XIII, Harmonized
Tariff Schedule of the United States, a bond is posted with Customs
which guarantees that these items will be exported within a
specified time frame (usually within one year from the date of
importation). Failure to export these items makes the importer
liable for the payment of liquidated damages for breach of the bond
conditions. (See 19 CFR 10.31.). The Temporary Importation under
Bond (TIB) is usually twice the amount of duties and other payments
the importer would otherwise be required to pay. Merchandise
imported under TIB is usually for sales demonstration, testing, or
repair.
TENDER: Offer of goods for transportation by shipper or offer of
delivery on part of carrier.
TENOR: The term fixed for payment of a draft.
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.
terminal delivery allowance: A reduced rate that a carrier offers in
return for the shipper or consignee tendering or picking up the
freight at the carrier's terminal.
TERMS OF SALE: The invoice is the sales contract between buyer and
seller and indicates the Terms of Sale.
Textile Surveillance Body: An international body which meets in
Geneva at the GATT to monitor the Multi-Fiber Arrangement. The TSB
receives reports of all textile restrictions and can make
recommendations to participants. It can mediate disputes between
parties to the MFA but has no binding powers. Membership is balanced
between importing and exporting members.
TEU: See Twenty-Foot Equivalent Unit
THE INTERNATIONAL AIR CARGO ASSOCIATION (TIACA): A worldwide
organization which brings together all elements of the air logistics
industry into a single, dynamic force for progress and growth in the
ever-expanding arena of world trade and economic development.
TIACA's members include all major components of the industry air
and surface carriers, forwarders, shippers, vendors, manufacturers,
airports, countries, financial institutions and consultants. TIACA
also represents international, national, regional, and city air
cargo associations and their students involved in air cargo
training. For information: General Secretariat, P.O. Box 33069,
Miami, FL 33233.
Third-party provider: A company that supplies goods and services
such as transportation and logistics to another company.
Third-party logistics: The use of specialist companies to provide
several combined logistics services (for example, storage,
transportation, and inventory management) to manufacturers and their
customers. Third-party logistics includes Mode selection, including
truckload, rail, ship, air, Intermodal, plus expedited and small
packages, Carrier management, Private fleet management, Dedicated
contract carriage, Information flow and Single billing.
three-layer framework: A basic structure and operational activity of
a company; the three layers include operational systems, control and
administrative management, and master planning.
THROUGH BILL OF LADING: A single Bill of Lading covering both the
domestic and international carriage of an export shipment. An air
waybill, for instance, is essentially a Through Bill of Lading used
for air shipments. Many ocean shipments require two separate
documents (an inland Bill of Lading for domestic carriage and an
ocean Bill of Lading for international carriage).
Throughput: A warehousing output measure that considers the volume
(weight, number of units) of items stored during a given time
period.
TIA: See TRANSPORTATION INTERMEDIARIES ASSOCIATION or Travel
Industry Association of America.
TIACA: See THE INTERNATIONAL AIR CARGO ASSOCIATION.
TIB: See TEMPORARY IMPORTATION UNDER BOND.
Tied Aid Credit: Tied aid credit refers to the practice of providing
grants and/or concessional loans, either alone or combined with
export credits, linked to procurement from the donor country.
Tied Loan: A loan made by a government agency that requires a
foreign borrower to spend the proceeds in the lender's country.
TIME DRAFT: Draft maturing at certain fixed time after
presentation/acceptance.
TIME DEFINITE DELIVERY: The range of service performance standards
offered by air freight carriers which permit the customer to select
a specific time frame for delivery based on requirement for service
and economy. These service standards provide door-to-door (pickup
and delivery) schedule patterns based on “same day”, “next day”,
second or third day delivery needs.
time service rate: A rail rate that is based upon transit time.
Timetables: Time schedules of departures and arrivals by origin and
destination; typically used for passenger transportation by air,
bus, and rail.
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 that confers on holder the right of
ownership/possession/transfer of merchandise specified. E.g. the
Bill of Lading and Warehouse Receipts.
Title, Passing: The passing of title to exported goods is determined
in large measure by the selling terms. For example, if an exporter
sells goods CIF he may be presumed to pass ownership and tender of
documents. However, he may ship on a bill of lading drawn to his own
order, to prevent the buyer from gaining possession of the goods
until the draft is paid or accepted. In this case he retains a
security title to the goods; that is, a title for security purposes
only, until the financial arrangement is carried out. Caution:
Depending on the laws of the buyer's country, you may not be able to
force passage of title without payment having been received or the
buyer having accepted delivery of the goods or a clear understanding
by the buyer being understood and accepted.
TL: Abbreviation for “Truckload”.
TOFC: Abbreviation for “Trailer on flatcar”. Also called PIGGYBACK.
Shipments that move TOFC receive special rates from tariffs
providing for that class of traffic.
TON: A Long Ton is 2,240 pounds. A Short Ton is 2,000 pounds. A
Metric Ton is 2,206.6 pounds.
TONNE: See METRIC TON.
TON MILE: One of the most commonly used measures of transportation
service. An output measure that reflects the shipment's weight and
the distance the carrier hauls it; a multiplication of tons hauled
and distance traveled.
TONNAGE: 1) The carrying capacity of a ship or a vessel. 2) The
tax/duty paid on such capacity. 3) The weight the ship can carry
expressed in tons.
TORT: A wrong, other than breach of contract, committed upon
person/property of another.
total cost analysis: A decision-making approach that considers total
system cost minimization and recognizes the interrelationship among
system variables such as transportation, warehousing, inventory, and
customer service.
TOTAL COST OF DISTRIBUTION: The sum total of all the costs incurred
in the distribution of goods. The total cost of distribution
includes such items as transportation charges, inventory carrying
costs, warehousing expenses, packaging, insurance, product
obsolescence and pilferage. Today's growing use of automated
information systems enables a company to identify each element of
cost more accurately and more quickly than ever before. The rise of
new concepts of distribution management in which the selection of a
freight transport mode sometimes does not hinge upon direct freight
charges alone, but on the total cost of distribution, along with
service requirements of marketing and sales. Air freight's speed
facilitates a more rapid turnover of inventory. This means a more
rapid return on inventory investment, the elimination or drastic
reduction of warehousing costs, the elimination of the risk of
product obsolescence and the avoidance of such cost items as
inventory taxes. Packaging costs are lower because of the protection
afforded by the aircraft and, increasingly, because of the use of
containers. The lower incidence of damage and pilferage in air
freight, as compared with surface modes, reduces insurance costs.
Usually, but not always, the freight charges via air from point A to
point B may be higher than via surface; but savings on the other
elements in the total cost of distribution often result in a net
saving via air. See TRADEOFFS.
total quality management: A management approach in which managers
constantly communicate with organizational stakeholders to emphasize
the importance of continuous quality improvement.
TQM: See TOTAL QUALITY MANAGEMENT.
TRACKING/TRACING: A carrier's system of recording movement intervals
of shipments from origin to destination.
Trade: A term used to define a geographic area or specific route
served by carriers.
TRADE ACCEPTANCE: A draft of which the drawee and acceptor is a
mercantile concern. Such an acceptance usually arises from the sale
of merchandise.
Trade Barriers: The United States Trade Representative classifies
trade barriers into eight general categories: (1) import policies
(tariffs and other import charges, quantitative restrictions, import
licensing, and customs barriers); (2) standards, testing, labeling,
and certification; (3) government procurement; (4) export subsidies;
(5) lack of intellectual property protection; (6) service barriers;
(7) investment barriers; and (8) other barriers (e.g., barriers
encompassing more than one category or barriers affecting a single
sector).
Trade Fair Certification Program: The Commerce Department Trade Fair
Certification program was started in 1983 to promote selected
privately organized trade shows. The program helps private sector
organizations in mounting certified international fairs. Commerce
assistance includes promoting the fair among foreign customers and
helping exhibitors to make commercial contacts.
Trade Information Center: A one-stop source for information on
Federal programs to assist U.S. exporters. Telephone:
1-800-USA-TRADE (1-800-872-8723).
Trade Opportunities Program: An International Trade Administration
service which provides sales leads from overseas firms seeking to
buy or represent U.S. products and services. Through overseas
channels, U.S. foreign commercial officers gather leads and details,
including specifications, quantities, end use, and delivery
deadlines. TOPs are cabled to Washington and listed on the Commerce
Department's Economic Bulletin Board and redistributed by the
private sector.
TRADEOFFS: Interaction between related activities such as the
offsetting of higher costs in one area with reduced costs or other
benefits in another. In air freight the classic "Tradeoff" is one of
“time versus money” but there are many others in the total cost of
distribution.
TRAFFIC: 1) Department/division responsible for obtaining most
economical commodity classifications and methods of transporting
materials and products, people and/or property carried by
transportation companies. 2) People and/or property carried by
transportation companies.
Traffic Conferences: Rate-fixing machinery operated by IATA.
TRAFFIC MANAGEMENT: The management of activities associated with
buying and controlling transportation services for a shipper,
consignee or both.
TRAILER ON FLAT CAR (TOFC): Highway trucks trailers are either
lifted on and off in side transfer or else end loaded/unloaded from
a fixed ramp. Probably the most common and best known form of
piggyback.
TRAILER SHIPS: A vessel similar to a ferry boat carrying cars and
trucks. Also known as ROLL-ON/ROLL-OFF (RO/RO) ships.
TRAMP: Vessel that does not operate along definite routes on a fixed
schedule but calls at any port where cargo is available. A shipper
charters a tramp ship for a particular voyage or a given time
period.
transit privilege: A carrier service that permits the shipper to
stop the shipment in transit to perform a function that changes the
commodity's physical characteristics, but to still pay the through
rate.
Transit Zones: Transit zones, a form of free trade zone, are ports
of entry in coastal countries that are established as storage and
distribution centers for the convenience of a neighboring country
lacking adequate port facilities or access to the sea. A transit
zone is administered so that goods in transit to and from the
neighboring country are not subject to the customs duties, import
controls or many of the entry and exit formalities of the host
country. Transit zones are more limited facilities then a foreign
trade zone or a free port.
TRANSMITTAL LETTER: A list of the particulars of the shipment and a
record of the documents being transmitted together with instructions
for disposition of documents. Any special instructions are also
included.
TRANSACTION STATEMENT: A document that clearly outlines the terms
and conditions agreed upon between an importer and an exporter.
TRANSFER CARGO: Cargo arriving at a point by one flight and
continuing therefrom by another flight of the same or a connecting
carrier.
Transferable Letter of Credit: A letter of credit that allows all or
a portion of the proceeds to be transferred from the original
beneficiary to one or more additional beneficiaries.
TRANSIT AIR CARGO MANIFEST (TACM): Procedures under which air cargo
imports move through the gateway city to the city of final U.S.
Customs destination for the collection of duty and other import
processing thereby expediting shipment movements, reducing gateway
congestion and saving expense for importers, U.S. Customs and
airlines.
transit time: The total time that elapses between a shipment's
delivery and its pickup.
TRANSIT CARGO: Cargo arriving at a point and departing therefrom by
the same through flight.
Transport Index: The number expressing the maximum radiation level
in a package of ULD.
TRANSPORTATION AND EXPORTATION (T&E): An entry filed to control the
movement of merchandise being transported through the United States
for exportation.
Transportation Association of America: An association that
represents the entire U.S. transportation system--carriers, users,
and the public; now defunct.
TRANSPORTATION INTERMEDIARIES ASSOCIATION (TIA): Organization
representing the interests of transportation intermediaries of all
disciplines. For information: 3601 Eisenhower Avenue, Suite 110,
Alexandria, VA 22304.
transportation method: A linear programming technique that
determines the least-cost means of shipping goods from plants to
warehouses or from warehouses to customers.
transportation requirements planning: Utilizing computer technology
and information already available in MRP and DRP databases to plan
transportation needs based on field demand.
Transportation Research Board: A division of the National Academy of
Sciences which pertains to transportation research.
Transportation Research Forum: A professional association that
provides a forum for the discussion of transportation ideas and
research techniques.
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 simlilar products
creating a rolling (in-transit) inventory of the products.
Transmittal Letter: A list of the particulars of the shipment and a
record of the documents being transmitted together with instructions
for disposition of documents. Any special instructions are also
included.
TRANSSHIP: 1) Term commonly used to denote the transfer of goods
from one means of transportation to another. 2) Rehandling of goods
enroute.
TRANSSHIPMENT: Transfer of cargo. The transfer of a shipment from
one carrier to another in international trade, most frequently from
one ship to another. In as much as the unloading and reloading of
delicate merchandise is likely to cause damage, transshipments are
avoided whenever possible.
transshipment problem: A variation of the linear programming
transportation method that considers consolidating shipments to one
destination and reshipping from that destination.
travel agent: A firm that provides passenger travel information;
air, rail, and steamship ticketing; and hotel reservations. The
carrier and hotel pay the travel agent a commission.
Travel Industry Association of America (TIA): A Washington DC based
national, non-profit association that serves as the unifying
organization for all components of the U.S. travel industry, the
third largest retail industry and one of the largest employers in
the USA.
Trigger Price Mechanism: An antidumping mechanism designed to
protect U.S. industries from under-priced imports. First used in
1978 to protect the steel industry, the TPM is the price of the
lowest cost foreign producer. Imports priced below the trigger price
are assessed a duty equal to the difference between their price and
the trigger price.
TRIP CHARTER: Hiring of a vessel to haul cargo for a special voyage.
TRUCK/AIR SERVICE: The surface movement of air freight to and from
airports and origin and destination points beyond the terminal area
of pickup and delivery service.
Truckload: Truckload rates apply where the tariff shows a truckload
minimum weight. Charges will be at the truckload minimum weight
unless weight is higher.
trunk lines: Oil pipelines used for the long-distance movements of
crude oil, refined oil, or other liquid products.
TRUST RECEIPT: Release of merchandise by a bank to a buyer in which
the bank retains title to the goods. The Buyer is obligated to
maintain the goods: or the proceeds from their sale: distinct from
the remainder of his assets and to hold them ready for repossession
by the bank. Also BAILEE RECEIPT.
TSUSA: The Tariff Schedule of the United States, Annotated. TSUSA is
the very detailed classification system in which U.S. import data
are originally recorded and is the legal basis for import duty
calculations by the Customs Bureau. All other import classification
systems are some transformation of TSUSA, since the TSUSA commodity
identification numbers are the only commodity identification numbers
recorded on the actual import declaration documents.
Turnkey Project: Capital construction projects in which the supplier
(contractor) designs and builds the physical plant, trains the local
personnel on how to manage and operate the facility and presents the
buyer with a self-sustaining project (all the buyer has to do is
"Turn the Key").
Twenty-Foot Equivalent Unit (TEU): TEU is a measure of a ship's
cargo-carrying capacity. One TEU measures twenty feet by eight feet
by eight feet: the dimensions of a standard twenty-foot container.
An FEU equals two TEUs or one standard 40-foot, ISO Series 1
container equals 2 TEUs.
TWIST LOCK: A set of four visible bayonet-type, shear keys used as a
part of a SPREADER to pick up containers or as part of a chassis to
secure containers.
two-bin system: An inventory ordering system in which the time to
place an order for an item is indicated when the first bin is empty.
The second bin contains supply sufficient to last until the company
receives the parts.
UCC: Uniform Commercial
Code.
UKACC: Abbreviation for “United Kingdom Air Cargo Club”.
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.
ULTIMATE CONSIGNEE: The ultimate consignee is the person located
abroad who is the true party in interest, receiving the export for
the designated end-use.
umbrella rate: An ICC rate making practice that held rates to a
particular level to protect another mode's traffic.
Unclean Bill of Lading: A bill containing reservations as to the
good order and condition of the goods, or the packaging, or both.
Examples: "bags torn;" "drums leaking;" "one case damaged;" "rolls
chafed."
Unfair Trade Practice: This term refers to any act, policy, or
practice of a foreign government that: (a) violates, is inconsistent
with, or otherwise denies benefits to the U.S. under any trade
agreement to which the United States is a party; (b) is
unjustifiable, unreasonable, or discriminatory and burdens or
restricts United States commerce; or (c) is otherwise inconsistent
with a favorable section 301 determination by the U.S. Trade
Representative.
Uniform Warehouse Receipts Act: The act that sets forth the
regulations governing public warehousing. The regulations define a
warehouse manager's legal responsibility and define the types of
receipts he or she issues.
UNIT LOAD DEVICE: See ULD.
UNIT TRAIN: An entire, uninterrupted locomotive car and caboose
movement between an origin and destination. Rail movement of large
tonnage of single-bulk products between two points.
United States Railway Association: The planning and funding agency
for Conrail; created by the 3-R Act of 1973.
unit train: An entire, uninterrupted locomotive, car, and caboose
movement between an origin and destination.
United Nations Commission on International Trade Law: UNCITRAL was
established in 1966 to aid in harmonizing and unifying international
trade law. The Commission has focused on four principal
international areas: (a) sales of goods, (b) payments, (c)
commercial arbitration, and (d) legislation pertaining to shipping.
The Commission issues publications and sponsors training in
international trade law.
United Nations Conference on Trade and Development: UNCTAD was set
up in December 1964 as a permanent organ of the UN General Assembly.
UNCTAD promotes international trade and seeks to increase trade
between developing countries and countries with different social and
economic systems. UNCTAD also examines problems of economic
development within the context of principles and policies of
international trade and seeks to harmonize trade, development, and
regional economic policies. Headquarters are in Geneva, Switzerland.
United Nations Industrial Development Organization: UNIDO promotes
accelerated commercial development in developing countries and
encourages industrial cooperation worldwide. As part of its
activities, UNIDO identifies promising entrepreneurs in the
developing world to the attention of potential partners in
industrialized countries through a network of Investment Promotion
Services (IPS). IPS offices operate in Austria, China, France,
Germany, Italy, Japan, Korea, Russia, Switzerland, and the United
States (Washington, D.C.) Established in 1967, UNIDO became a
specialized agency on the UN in 1986; headquarters are in Vienna,
Austria.
United States-Asia Environmental Program: The US-AEP, announced in
January 1992, helps U.S. companies compete in expanding Asian
markets for sales of environmental products, services, technologies,
and know-how. US-AEP, coordinated by AID, links the efforts of U.S.
government agencies in a one-stop service.
United States Council for International Business: USCIB is the
American affiliate of the International Chamber of Commerce (ICC),
the Business and Advisory Council (BIAC) to the Organization for
Economic Cooperation and Development, and the International
Organization of Employers (IOE). The Council advocates U.S. business
positions to the U.S. Government, to United Nations bodies, and to
other international organizations. The Council administers the ATA
Carnet System, which issues and guarantees documents that allow
duty-free, temporary importation of merchandise overseas. The
Council was established in 1945; headquarters are in New York City.
United States Trade Representative: The USTR is a cabinet-level
official with the rank of Ambassador who advises the President on
trade policy. The USTR coordinates the development of U.S. trade
policy initiatives; leads U.S. international trade negotiations; and
seeks to expand U.S. exports by promoting removal or reduction of
foreign trade barriers. The Office of the USTR was created as the
Office of the Special Representative for Trade Negotiations by
Executive Order (11075) in January 1963. The Trade Act of 1974
established the Office as an agency of the Executive Office of the
President, charged with administering the trade agreements program
under the Tariff Act of 1930, the Trade Expansion Act of 1962, and
the Trade Act of 1974. Other powers and responsibilities for
coordinating trade policy were assigned to the Office by the Trade
Act of 1974 and by the President by Executive Order in March 1975,
as amended. Reorganization Plan No. 3 of 1979 (implemented by
Executive Order in January 1980), charged the Office with
responsibility for setting and administering overall trade policy
and identified the USTR as the chief representative of the U.S. for
all activities of the General Agreement on Tariffs and Trade, for
negotiation on trade and commodity issues in the Organization of
Economic Cooperation and Development, for negotiations in the United
Nations Conference on Trade and Development, and for trade and
commodity negotiations in other multilateral institutions and in
other bilateral and multilateral negotiations concerning trade as a
primary issue.
UNITIZATION: The practice or technique of consolidating many small
pieces of freight into a single unit. Also the loading of one or
more large items of cargo onto a single piece of equipment such as a
PALLET.
unitize: To consolidate several packages into one unit; carriers
strap, band, or otherwise attach the several packages together.
UNIVERSAL AIR WAYBILL: See NEUTRAL AIR WAYBILL.
Universal Postal Union: Organization which negotiates international
mail charges.
Upper Deck: See Main Deck
Urban Mass Transportation Administration: A U.S. Department of
Transportation agency that develops comprehensive mass transport
systems for urban areas and for providing financial aid to transit
systems.
US Customs Bonded Warehouse: see bonded warehouse.
US Munitions List: The USML identifies those items or categories of
items considered to be defense articles and defense services subject
to export control. The USML is similar in coverage to the
International Munitions List (IML), but is more restrictive in two
ways. First, the USML currently contains some dual-use items that
are controlled for national security and foreign policy reasons
(such as space-related or encryption-related equipment). Second, the
USML contains some nuclear-related items. Under Presidential
directive, most dual-use items are to be transferred from the USML
to the Commerce Department's dual-use list. State, with the
concurrence of Defense, designates which articles will be controlled
under the USML. Items on the Munitions List face a stricter control
regime and lack the safeguards to protect commercial competitiveness
that apply to dual-use items.
USANCE: Time allowed for payment of foreign drafts.
USDA: Abbreviation for the “US Department of Agriculture”.
VALUATION, ACTUAL: See
ACTUAL VALUATION.
VALUATION CHARGES: Transportation charges assessed on shippers who
declare a value of goods higher than the value of carrier’s limits
of liability. See DECLARED VALUE FOR CARRIAGE.
Value for Customs Purposes Only: The U.S. Customs Service defines
"value for Customs purposes only" as the value submitted on the
entry documentation by the importer which may or may not reflect
information from the manufacturer but in no way reflects Customs
appraisement of the merchandise.
Validated Export License: A document issued by the U.S. government
authorizing the export of commodities for which written export
authorization is required by law. Two types exist: an Individual
Validated License (IVL) and a Special License.
VALUATION CLAUSE: The clause in the Marine Policy that contains a
fixed basis of valuation agreed upon by the Assured and the
Underwriter and which establishes the insured value of the
merchandise. The Clause determines the amount payable under any
recoverable loss or General Average contribution.
Value-Added Tax: A European Community (EC) tax assessed on the
increased value of goods as they pass from the raw material stage
through the production process to final consumption. The tax on
processors or merchants is levied on the amount by which they
increase the value of items they purchase. The EC charges a tax
equivalent to the value added to imports and rebates value-added
taxes on exports. Some other countries' retail sales tax also called
VAT, such as Taiwan.
VALUE-OF-SERVICE PRICING: Pricing according to the value of the
product being transported. Third-degree pricing of discrimination.
Demand-orientated pricing. Charging whatever the traffic will bear.
VANNING: A term used for stowing cargo in a container.
VARIABLE COST: A cost that fluctuates with the volume of business.
VAT: See VALUE-ADDED TAX
VENDOR: A firm or individual that supplies goods or services; the
seller.
VENDOR-MANAGED INVENTORY: The process by which the vendor manages
the inventory of its products in its distribution center. The vendor
receives stock information from the customer and then calculates
what should be shipped to maintain adequate inventory levels at the
retailer's facility.
VESSEL: Generally a craft used or intended to be used as means of
transportation by water.
VESSEL TON: 100 cubic feet.
Virtual logistics: A phrase coined by David Frentzel of Mercer
Management Consulting to describe the disappearance of the in-house
logistics function by name and traditional description. In this
scenario, logistics will be managed by many individuals throughout
the supply chain, or be outsourced altogether.
VISA: Visas are required by many countries for entry of a foreigner.
A visa is a stamp in a foreign national's passport issued by a U.S.
consular officer which creates a legal presumption that there are no
apparent reason to deny entry into the U.S. Regardless of the stamp,
the final decision to grant admission is made by an officer of the
U.S. Immigration Service at the port of entry.
VISA WAIVER: A program of selected countries to eliminate the visa
requirement on a test basis.
VOLATILITY: 1) Ability of liquid to vaporize. 2) Explosivity.
VOLUME CHARGE: A charge for carriage of goods based on their volume.
Voluntary Export Restriction: An understanding between trading
partners in which the exporting nation, in order to reduce trade
friction, agrees to limit its exports of a particular good. Also
called Voluntary Restraint Agreement.
Voluntary Restraint Agreement: Informal bilateral or multilateral
understandings in which exporters voluntarily limit exports of
certain products to a particular country destination in order to
avoid economic dislocation in the importing country and the
imposition of mandatory import restrictions. These arrangements do
not involve an obligation on the part of the importing country to
provide "compensation" to the exporting country, as would be the
case if the importing country unilaterally imposed equivalent
restraints on imports.
von Thunen's belts: A series of concentric rings around a city to
identify where agricultural products would be produced according to
von Thunen's theory.
VOYAGE CHARTER: Engaging services of a vessel (cargo) for specified
trip from one port to another at established tonnage rate.
WA: Abbreviation for
"With Average"
WACA: See World Airlines Clubs Association.
WAIS: Abbreviation for “Wide Area Information Server”
WAIVER: 1) Written statement canceling previous claim/right. Usually
refers to only one person or specific situation. 2) Intentionally
forfeiting a right.
WAN: Abbreviation for “Wide Area Network”
War Risk: The possible aggressive actions against a ship and its
cargo by a belligerent government. This risk can be insured by a
marine policy with a risk clause.
War Risk Insurance: Insurance issued by marine underwriters against
war-like operations specifically described in the policy. In former
times, war risk insurance was taken out only in times of war, but
currently many exporter cover most of their shipments with war risk
insurance as a protection against losses from derelict torpedoes and
floating mines placed during former wars and also as a safeguard
against unforeseen warlike developments. In the United States, war
risk insurance is written in a separate policy from the ordinary
marine insurance. It is desirable to take out both policies with the
same underwriter in order to avoid the ill effects of a possible
dispute between underwriters as to the cause (Marine peril or war
peril) of a given loss.
WAREHOUSE: Place for receiving/storing goods and merchandise
for-hire. The warehouse is bound to use ordinary diligence in
preserving goods.
Warehouse Receipt: A receipt of commodities deposited in a
warehouse, identifying the commodities deposited. It is
non-negotiable if permitting delivery only to a specified person or
firm, but it is negotiable if made out to the order of a person or
firm or to a bearer. Endorsement (without endorsement if made out to
bearer) and delivery of a negotiable warehouse receipt serves to
transfer the property covered by the receipt serves to transfer the
property covered by the receipt. Warehouse receipts are common
documents in international banking.
WAREHOUSE-TO-WAREHOUSE CLAUSE: The clause in the Cargo Policy that
defines when coverage commences and terminates. It is the intent of
the policy to attach at the time the goods leave the warehouse of
origin named in the Policy, and to continue while the goods are in
due course of transit until delivered to the warehouse of
destination named in the Policy, where it terminates.
WAREHOUSING: The temporary storing of goods.
WARSAW CONVENTION: An international multilateral treaty which
regulates, in a uniform manner, the conditions of international
transportation by air. Among other things, it establishes the
international liability of air carriers and establishes the monetary
limits for loss, damage, and delay. Specifically, the Convention for
the Unification of Certain Rule Relating to International Carriage
by Air, signed at Warsaw, October 12, 1929, or that convention as
amended by the Hague Protocol, 1955, whichever may be applicable.
WASTAGE: Loss of goods due to handling, decay, leakage, shrinkage,
etc.
waterway use tax: A per-gallon tax assessed barge carriers for
waterway use.
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 originating/delivering agents. Used by carrier
for internal record and control especially during transit. Not a
transportation contract. See also Air waybill.
WB: See WAYBILL.
WEIGHT: In shipping, weight is qualified further as Gross Weight
(weight of goods and container), Net Weight (weight of goods without
any container) and Legal Weight (similar to net, determined in such
manner as the laws of a particular country/jurisdiction may direct).
weight-losing raw material: A raw material that loses weight in
processing.
WEIGHT BREAK: Levels at which the air freight rate per 100 pounds
decreases because of substantial increases in the weight of the
shipment. Examples of levels at which weight breaks occur (in
pounds) are 100, 500, 1,000 3,000, 5,000, and 10,000.
WEIGHT CHARGE: A charge for carriage of goods based on their 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 US
states also use portable scales to ensure compliance with their
weight limits. Also often combined with port of entry facilities.
Wet Lease: An arrangement for renting an aircraft under which the
owner provides crews, ground support equipment, fuel and so on (of
dry lease).
WHARF: Loading/discharging terminal built parallel to stream/shore
line.
WHARFAGE: 1) Charge made for handling traffic on wharf. 2) Charge
made for docking vessels at wharf.
WIP: See Work in Progress.
With Average: A marine insurance term meaning that a shipment is
protected from partial damage whenever the damage exceeds 3 percent
(or some other percentage). If the ship is involved in a major
catastrophe, such as a collision, fire or stranding, the minimum
percentage requirement is waived and the insurance company pays for
all of the damage.
WITHOUT RECOURSE: When drafts are negotiated “without recourse”, the
beneficiary is relieved of responsibility to the holder of the draft
to the extent permissible under the contract involved and under the
law governing the transaction.
Without Reserve: A term indicating that a shipper's agent or
representative is empowered to make definitive decisions and
adjustments abroad without approval of the group or individual
represented.
work in process: Parts and subassemblies in the process of becoming
completed assembly components. These items, no longer part of the
raw materials inventory and not yet part of the finished goods
inventory, may constitute a large inventory by themselves and create
extra expense for the company.
World Airlines Clubs Association (WACA): Established in Cannes,
France, in April 1966 when the Riviera Airlines Club hosted a
conference of the various airline club representatives to discuss
the formation of a world body which would unite and promote the
activities of interline clubs throughout the world.
World Bank: The World Bank is an integrated group of international
institutions which provides financial and technical assistance to
developing countries. The World Bank includes the International Bank
for Reconstruction and Development and the International Development
Association. World Bank affiliates, legally and financially
separate, include the International Center for Settlement of
Investment Disputes, the International Finance Corporation, and the
Multilateral Investment Guarantee Agency. World Bank headquarters
are in Washington, D.C.
World Trade Organization: Provisions to establish the WTO were
reached in the Uruguay Round of the General Agreement on Tariffs and
Trade (GATT). The WTO is scheduled to be established no later than
1997 as an international organization of comparable stature to the
World Bank and the International Monetary Fund. The Organization is
expected to facilitate implementation of trade agreements reached in
the Uruguay Round by bringing them under one institutional umbrella,
requiring full participation of all countries in one new trading
system, and providing a permanent forum to discuss new issues facing
the international trading system. The WTO system will be available
only to countries which: (a) are contracting parties to the GATT,
(b) agree to adhere to all of the Uruguay Round agreements, and (c)
submit schedules of market access commitments for industrial goods,
agricultural goods, and services
WWW: Abbreviation for “World Wide Web”.
X Heavy: Extra Heavy
X Strong: Extra strong
XX Heavy: Double extra heavy
XX Strong: Double extra strong
Y/A: York-Antwerp Rules:
A code of rules adopted by an international convention in 1890,
amended in 1924 and again in 1950, for the purpose of establishing a
uniform basis for adjusting general average. Certain nationalities
decline to observe certain of the rules adopted. United States
shipping interests generally abide by general rule "F" and numbered
rules 1 to 15 and 17 to 22, inclusive and specifically set this
forth in a Bill Of Lading Clause.
YARD (FREIGHT): Unit of track systems within certain area used for
storing cars, loading/unloading freight and making up trains, over
which movement not authorized by timetable or train order may be
made, subject to prescribed signals/regulations.
YARDAGE: Livestock shipped to stockyards is subject to yardage
charge in addition to transportation and other charges. Usually
assessed on basis of so much per head, varying in amount according
to type of livestock.
YIELD: The air transport revenue derived per unit of traffic carried
in air transportation. Examples: Revenue per freight ton-mile and
revenue per passenger mile flown.
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-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.