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Glossary of Freight 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
Abatement A discount allowed for damage or overcharge in the payment of a bill.
Accessorial Charges Charges that are applied to the base tariff rate or base contract rate, e.g., bunkers, container, currency, and destination/delivery.
Accessorial A service that is not considered ‘standard’ will incur additional fees. Accessorial charges may include, but are not limited to: arrival notification, inside delivery, insurance, liftgate service, COD, hazardous materials, fuel surcharge.
Acquiescence When a bill of lading is accepted or signed by a shipper or shipper's agent without protest, the shipper is said to acquiesce to the terms, giving a silent form of consent.
Act of God An act beyond human control, such as lightning, flood or earthquake.
Advanced ChargeA charge advanced by one carrier to another to be collected by the later carrier from the consignor or consignee.
Aggregate ShipmentNumerous shipments from different shippers to one consignee that are consolidated and treated as a single consignment.
Agreed Valuation The value of a shipment agreed upon in order to secure a specific freight rate.
Agreed Weight The weight prescribed by agreement between carrier and shipper for goods shipped in certain packages or in a certain number.
Alternative Rates Privilege to use the rate producing the lowest charge.
Ambient Temperature The temperature of a surrounding body. The ambient temperature of a container is the atmospheric temperature to which it is exposed.
Any Quantity (A.Q.) Usually refers to a rating that applies to an article regardless of size or quantity.
Apparent Good Order When freight appears to be free of damage so far as a general survey can determine.
Arbitrary A stated amount over a fixed rate to one point to make a rate to another point.
Arrival Notification Carrier notifies and schedules a delivery date and time with the receiver.
jjajjaB/L Abbreviation for "Bill of Lading."
Backhaul To haul a shipment back over part of a route it has traveled.
Beyond Used with reference to charges assessed for cargo movement past a line-haul terminating point.
Bill of Lading Multi-use documents that are essential to conduct the day-to-day operations when transportation of supplies, materials, and personal property is required. These primary documents are used to procure freight and express transportation and related services from commercial carriers, including freight forwarders.
What must be stated in a Bill of Lading?• The name and address of...
• the carrier (the shipping company responsible for transport)
• the shipper (the consignor/sender, or his agent)
• the consignee (the buyer or his agent)
• Places of departure and destination
• Description of the goods
• Instructions for the payment of freight (collect or prepaid)
• Place and date issued
• Any other information relative to the shipment
Bill to Party Customer designated as party paying for services.
Billed Weight The weight shown in a waybill and freight bill, i.e, the invoiced weight.
Blanket Rate A rate applicable to or from a group of points. A special rate applicable to several different articles in a single shipment.
Blind Shipment A B/L wherein the paying customer has contracted with the carrier that shipper or consignee information is not given.
Block Stowage Stowing cargo destined for a specific location close together to avoid unnecessary cargo movement.
Blocked Trains Railcars grouped in a train by destination so that segments (blocks) can be uncoupled and routed to different destinations as the train moves through various junctions. Eliminates the need to break up a train and sort individual railcars at each junction.
Blocking or Bracing Wood or metal supports (Dunnage) to keep shipments in place to prevent cargo shifting.
Bls. Abbreviation for "Bales."
Board Feet The basic unit of measurement for lumber. One board foot is equal to a one_inch board, 12 inches wide and one foot long. Thus, a board ten feet long, 12 inches wide, and one inch thick contains ten board feet.
Bobtail Movement of a tractor, without trailer, over the highway.
Bogie A set of wheels built specifically as rear wheels under the container.
Bolster A device fitted on a chassis or railcar to hold and secure the container.
Bonded Freight Freight moving under a bond to U.S. Customs or to the Internal Revenue Service, and to be delivered only under stated conditions.
Bonded Warehouse A warehouse authorized by Customs authorities for storage of goods on which payment of duties is deferred until the goods are removed.
Booking Arrangements with a carrier for the acceptance and carriage of freight; i.e., a space reservation.
Booking Number Reservation number used to secure equipment and act as a control number prior to completion of a B/L.
Bottom Side Rails Structural members on the longitudinal sides of the base of the container.
Bottom-Air Delivery A type of air circulation in a temperature control container. Air is pulled by a fan from the top of the container, passed through the evaporator coil for cooling, and then forced through the space under the load and up through the cargo. This type of airflow provides even temperatures.
Boxcar A closed rail freight car.
Break Bulk To unload and distribute A portion or all of the contents of A rail car, container, or trailer.
Broker A person who arranges for transportation of loads for a percentage of the revenue from the load.
Brokerage Freight forwarder/broker compensation as specified by ocean tariff or contract.
Bulk Cargo Not in packages or containers; shipped loose in the hold of a ship without mark and count." Grain, coal and sulfur are usually bulk freight.
Bulk-Freight Container A container with a discharge hatch in the front wall; allows bulk commodities to be carried.
Bulkhead A partition separating one part of A ship, Freight car, aircraft or truck from Another part.
C
Car Pooling Use of individual carrier/rail equipment through a central agency for the benefit of carriers and shippers.
Car Seal Metal strip and lead fastener used for locking freight car or truck doors. Seals are numbered for record purposes.
Carrier Any person or entity who, in a contract of carriage, undertakes to perform or to procure the performance of carriage by rail, road, sea, air, inland waterway or by a combination of such modes.
Cartage Usually refers to intra_city hauling on drays or trucks.
Cash Against Documents (CAD) Method of payment for goods in which documents transferring title are given the buyer upon payment of cash to an intermediary acting for the seller, usually a commission house.
Cash in Advance (CIA) A method of payment for goods in which the buyer pays the seller in advance of the shipment of goods. Usually employed when the goods, such as specialized machinery, are built to order.
Cash With Order (CWO) A method of payment for goods in which cash is paid at the time of order and the transaction becomes binding on both buyer and seller.
CBM (CM) Abbreviation for "Cubic Meter."
Certificate of Origin A certified document showing the origin of goods; used in international commerce.
CFS Abbreviation for "Container Freight Station." A shipping dock where cargo is loaded ("stuffed") into or unloaded ("stripped") from containers. Generally, this involves less than containerload shipments, although small shipments destined to same consignee are often consolidated. Container reloading from/to rail or motor carrier equipment is a typical activity.
Chassis A frame with wheels and container locking devices in order to secure the container for movement.
Chock A piece of wood or other material placed at the side of cargo to prevent rolling or moving sideways.
CKD Abbreviation for "Completely Knocked Down." Parts and subassemblies being transported to an assembly plant.
CL Abbreviation for "Carload" and "Containerload".
Claim A demand made upon a transportation line for payment on account of a loss sustained through its alleged negligence.
Class Refers to the Classification rating or number that specifically identifies the approximate size, value and difficulty of transporting a particular type of product that can be shipped by a carrier.
Classification A publication such as Uniform Freight Classification (railroad) or the National Motor Freight Classification (motor carrier), that assigns ratings to various articles and provides bill of lading descriptions and rules.
Classification Rating Same as Class. The designation provided in a classification by which a class rate is determined.
Classification Yard A railroad yard with many tracks used for assembling freight trains.
Clayton Act An anti-trust act of the U.S. Congress making price discrimination unlawful.
Clean Bill of Lading A receipt for goods issued by a carrier with an indication that the goods were received in "apparent good order and condition," without damage or other irregularities. If no notation or exception is made, the B/L is assumed to be "clean."
Clearance The size beyond which cars or loads cannot use Limits bridges, tunnels, etc.
Cleat A strip of wood or metal used to afford additional strength, to prevent warping, or to hold in place.
Clip-On Refrigeration equipment attachable to an insulated container that does not have its own refrigeration unit.
CM Abbreviation for "Cubic Meter" (capital letters).
COD Abbreviation for: Collect (cash) on Delivery. Carried on Docket (pricing).
Combination Rate A rate made up of two or more factors, separately published.
Commercial Invoice Represents a complete record of the transaction between exporter and importer with regard to the goods sold. Also reports the content of the shipment and serves as the basis for all other documents about the shipment.
Commodity Article shipped. For dangerous and hazardous cargo, the correct commodity identification is critical.
Commodity Rate A rate published to apply to a specific article or articles.
Common Carrier A transportation company which provides service to the general public at published rates.
Common Law Law that derives its force and authority from precedent, custom and usage rather than from statutes, particularly with reference to the laws of England and the United States.
Concealed Damage Damage that is not evident from viewing the unopened package.
Conference An association of ship owners operating in the same trade route who operate under collective conditions and agree on tariff rates.
Confirmed Letter of Credit A letter of credit, issued by a foreign bank, whose validity has been confirmed by a domestic bank. An exporter with a confirmed letter of credit is assured of payment even if the foreign buyer or the foreign bank defaults.
Confirming Bank The bank that adds its confirmation to another bank's (the issuing bank's) letter of credit and promises to pay the beneficiary upon presentation of documents specified in the letter of credit.
Connecting Carrier A carrier which has a direct physical connection with, or forms a link between two or more carriers.
Consignee A person or company to whom commodities are shipped.
Consignee Mark A symbol placed on packages for identification purposes; generally a triangle,square, circle, etc. with letters and/or numbers and port of discharge.
Consignment (1) A stock of merchandise advanced to a dealer and located at his place of business, but with title remaining in the source of supply. (2) A shipment of goods to a consignee.
Consignor A person or company shown on the bill of lading as the shipper.
Consolidation Cargo containing shipments of two or more shippers or suppliers. Containerload shipments may be consolidated for one or more consignees.
Consolidator A person or firm performing a consolidation service for others. The consolidator takes advantage of lower full carload (FCL) rates, and savings are passed on to shippers.
Container A truck trailer body that can be detached from the chassis for loading into a vessel, a rail car or stacked in a container depot. Containers may be ventilated, insulated, refrigerated, flat rack, vehicle rack, open top, bulk liquid or equipped with interior devices. A container may be 20 feet, 40 feet, 45 feet, 48 feet or 53 feet in length, 8'0" or 8'6" in width, and 8'6" or 9'6" in height.
Container Booking Arrangements with a steamship line to transport containerized cargo.
Container Freight Station See CFS.
Container Load A load sufficient in size to fill a container either by cubic measurement or by weight.
Container Manifest Document showing contents and loading sequence of a container.
Container Pool An agreement between parties that allows the efficient use and supply of containers. A common supply of containers available to the shipper as required.
Container Terminal An area designated for the stowage of cargoes in container; usually accessible by truck, railroad and marine transportation. Here containers are picked up, dropped off, maintained and housed.
Container Yard (CY) A materials handling/storage facility used for completely unitized loads in containers and/or empty containers. Commonly referred to as CY.
Containerizable Cargo Cargo that will fit into a container and result in an economical shipment.
Containerization Stowage of general or special cargoes in a container for transport in the various modes.
Contraband Cargo that is prohibited.
Contract A legally binding agreement between two or more persons/organizations to carry out reciprocal obligations or value.
Contract Carrier Any person not a common carrier who, under special and individual contracts or agreements, transports passengers or property for compensation.
Controlled Atmosphere Sophisticated, computer_controlled systems that manage the mixtures of gases within a container throughout an intermodal journey reducing decay.
Corner Posts Vertical frame components fitted at the corners of the container, integral to the corner fittings and connecting the roof and floor structures. Containers are lifted and secured in a stack using the castings at the ends.
Correspondent Bank A bank that, in its own country, handles the business of a foreign bank.
Cost, Insurance and Freight (CIF) Cost of goods, marine insurance and all transportation (freight) charges are paid to the foreign point of delivery by the seller.
Countervailing Duty An additional duty imposed to offset export grants, bounties or subsidies paid to foreign suppliers in certain countries by the government of that country for the purpose of promoting export.
Cross Member Transverse members fitted to the bottom side rails of a container, which support the floor.
Cu. An abbreviation for "Cubic." A unit of volume measurement.
Cube Out When a container or vessel has reached its volumetric capacity before its permitted weight limit.
Cubic Foot 1,728 cubic inches. A volume contained in a space measuring one foot high, one foot wide and one foot long.
Customhouse A government office where duties are paid, import documents filed, etc., on foreign shipments.
Customhouse Broker A person or firm, licensed by the treasury department of their country when required, engaged in entering and clearing goods through Customs for a client (importer).
Customs Government agency charged with enforcing the rules passed to protect the country's import and export revenues.
Customs Bonded Warehouse A warehouse authorized by Customs to receive duty-free merchandise.
Customs Entry All countries require that the importer make a declaration on incoming foreign goods. The importer then normally pays a duty on the imported merchandise.
Customs Invoice A form requiring all data in a commercial invoice along with a certificate of value and/or a certificate of origin. Required in a few countries (usually former British territories) and usually serves as a seller's commercial invoice.
Cut-Off Time The latest time cargo may be delivered to a terminal for loading to a scheduled train or ship.
Cwt. Hundred weight (United States, 100 pounds: U.K.,112) See Hundredweight below.
CY Abbreviation for Container Yard.
D
D&H Abbreviation for "Dangerous and Hazardous" cargo.
D.B.A. Abbreviation for "Doing Business As." A legal term for conducting business under a registered name.
D.O.T. Department of Transportation.
Deadhead One leg of a move without a paying cargo load. Usually refers to repositioning an empty piece of equipment.
Declared Value To receive a lower rate a shipper declares a lower than actual value for a shipment. Similar to released value. Declared value is for a complete shipment whereas released value is for each piece in a shipment.
Deconsolidation Point Place where loose or other non-containerized or truckload cargo is ungrouped for delivery.
Deficit Weight The weight by which a shipment is less than the minimum weight.
Delivery Instructions Order to pick up goods at a named place and deliver them to a pier. Usually issued by exporter to trucker but may apply to a railroad, which completes delivery by land. Use is limited to a few major U.S. ports. Also known as shipping delivery order.
Delivery Receipt (DR) A document which evidences delivery of a shipment. Same as POD.
Demurrage A penalty charge against shippers or consignees for delaying the carrier's equipment beyond the allowed free time. The free time and demurrage charges are set forth in the charter party or freight tariff.
Density The weight of cargo per cubic foot or other unit.
Depot, Container Container freight station or a designated area where empty containers can be picked up or dropped off.
Destination The place where carrier actually turns over cargo to consignee or his agent.
Destination Control Statements Various statements that the U.S. government requires to be displayed on export shipments. The statements specify the authorized destinations.
Detention A penalty charge against shippers or consignees for delaying carrier's equipment beyond allowed time. Demurrage applies to cargo; detention applies to equipment. See Per Diem.
Devanning The unloading of a container or cargo van.
DF Car Damage_Free Car. Boxcars equipped with special bracing material.
Differential An amount added or deducted from base rate to make a rate to or from some other point or via another route.
Discrepancy Letter of Credit When documents presented do not conform to the requirements of the letter of credit (L/C), it is referred to as a "discrepancy." Banks will not process L/C's which have discrepancies. They will refer the situation back to the buyer and/or seller and await further instructions.
Displacement The weight, in tons of 2,240 pounds, of the vessel and its contents. Calculated by dividing the volume of water displaced in cubic feet by 35, the average density of sea water.
Diversion A change made either in the route of a shipment in transit (see Reconsignment) or of the entire ship.
Division Carriers' Practice of dividing revenue received from through rates where joint hauls are involved. This is usually according to agreed formulae.
Dock for land transportation, A loading or unloading platform at an industrial location or carrier terminal.
Dock Receipt A form used to acknowledge receipt of cargo and often serves as basis for preparation of the ocean bill of lading.
Docket Present a rate proposal to a conference meeting for adoption as a conference group rate.
Documents Against Acceptance (D/A) Instructions given by a shipper to a bank indicating that documents transferring title to goods should be delivered to the buyer only upon the buyer's acceptance of the attached draft.
Documents Against Payment (D/P) An indication on a draft that the documents attached are to be released to the drawee only on payment.
Dolly A set of wheels that support the front of a container; used when the automotive unit is disconnected.
Door-to-Door The through transportation of a container or trailer and its contents from consignor to consignee. Also known as House to House. Not necessarily a through rate.
Double Drop A type of open deck trailer which has a raised section at the front and rear and a "well" in the middle. Used for transporting very tall equipment.
Doubles Slang term for two pups (28’ trailers) hooked together for transport.
Draft An unconditional order in writing, addressed by one party (drawer) to Another party (drawee), requiring the drawee to pay at A fixed or determinable future date A specified sum in lawful currency to the order of A specified person.
Draft, Bank An order issued by a seller against a purchaser; directs payment, usually through an intermediary bank. Typical bank drafts are negotiable instruments and are similar in many ways to checks on checking accounts in a bank.
Draft, Clean A draft to which no documents are attached.
Draft, Date A draft that matures on a fixed date, regardless of the time of acceptance.
Draft, Discounted A time draft under a letter of credit that has been accepted and purchased by a bank at a discount.
Draft, Sight A draft payable on demand upon presentation.
Draft, Time A draft that matures at a fixed or determinable time after presentation or acceptance.
Drawback A partial refund of an import fee. Refund usually results because goods are re-exported from the country that collected the fee.
Drawee The individual or firm that issues a draft and thus stands to receive payment.
Drayage Charge made for local hauling by dray or truck. Same as Cartage.
Dry Cargo Cargo that is not liquid and normally does not require temperature control.
Dry-Bulk Container A container constructed to carry grain, powder and other free-flowing solids in bulk. Used in conjunction with a tilt chassis or platform.
Dry Van A trailer, generally 53’ in length by 8’6" wide by 9’6" tall (13’6" from ground). A dry van may be heated or vented but does not have refrigeration equipment.
Dunnage Term used to described material used for the securing of freight.
E
Edge Protector An angle piece fitted over the edge of boxes, crates, bundles and other packages to prevent the pressure from metal bands or other types from cutting into the package.
EDI Abbreviation for "Electronic Data Interface." Generic term for transmission of transactional data between computer systems. EDI is typically via a batched transmission, usually conforming to consistent standards.
Elkins Act An act of Congress (1903) prohibiting rebates, concession, intentional misbilling, etc. and providing specific penalties for such violations.
Embargo Order to restrict the hauling of freight.
Eminent Domain The sovereign power to take property for a necessary public use, with reasonable compensation.
Empty Repo Contraction for Empty Repositioning. The movement of empty containers.
Endorsement A legal signature usually placed on the reverse of a draft; signifies transfer of rights from the holder to another party.
Entry Customs documents required for clearing an import shipment for entry into the general commerce of a country.
Equalization A monetary allowance to the customer for picking up or delivering at a point other than the destination shown on the bill of lading. This provision is covered by tariff publication.
Equipment Interchange Receipt (EIR) A document transferring a container from one carrier to another, or to/from a terminal.
ETA Estimated time of arrival.
Ethylene A gas produced by many fruits and vegetables that accelerates the ripening and aging processes.
E-Track A series of channels in the wall of a trailer for the placement of load bars. Used for freight which cannot be stacked upon each other.
Ex - "From" 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 indicated.
Export Dec Contraction for "Shipper's Export Declaration."
Exception Notations made when the cargo is received at the carrier's terminal or loaded aboard a vessel. They show any irregularities in packaging or actual or suspected damage to the cargo. Exceptions are then noted on the bill of lading.
Expiry Date Issued in connection with documents such as letters of credit, tariffs etc. to advise that stated provisions will expire at a certain time.
Export Shipment of goods to a foreign country.
Export Declaration A government document declaring designated goods to be shipped out of the country. To be completed by the exporter and filed with the U.S. Government.
Export License A government document which permits the "Licensee" to engage in the export of designated goods to certain destinations.
Export Rate A rate published on traffic moving from an interior point to a port for transshipment to a foreign country.
F
Flat Car A rail car without a roof and walls.
Flat Rack/Flat Bed Container A container with no sides and frame members at the front and rear. Container can be loaded from the sides and top.
FMC (F.M.C.) Federal Maritime Commission. The U.S. Governmental regulatory body responsible for administering maritime affairs including the tariff system, Freight Forwarder Licensing, enforcing the conditions of the Shipping Act and approving conference or other carrier agreements.
FOB See Free On Board. See also Terms of Sale, FOB.
FOB Freight Allowed the same as FOB named inland carrier, except the buyer pays the transportation charge and the seller reduces the invoice by A like amount.
FOB Freight Prepaid the same as FOB named inland carrier, except the seller pays the Freight charges of the inland carrier.
F.D.A. Food and Drug Administration.
Factor A factor is an agent who will, at a discount (usually 2 to 8% of the gross), buy receivables.
Factoring The actions of a factor in the ordinary course of business.
FAK Abbreviation for "Freight All Kinds." Usually refers to full container loads of mixed shipments.
False Billing Misrepresenting freight or weight on shipping documents.
FCL Abbreviation for "Full Container Load."
FEU Abbreviation for "Forty-Foot Equivalent Units." Refers to container size standard of forty feet. Two twenty-foot containers or TEU's equal one FEU.
Fifth Wheel The semi-circular steel coupling device mounted on a tractor which engages and locks with a chassis semi-trailer.
Firkin A capacity measurement equal to one-fourth of a barrel.
Fixed Costs Costs that do not vary with the level of activity. Some fixed costs continue even if no cargo is carried. Terminal leases, rent and property taxes are fixed costs.
Flatbed A type of open deck trailer. Generally 40-48 feet in length some maybe as long as 53 feet.
Flat Car A rail car without a roof and walls.
Flat Rack/Flat Bed Container A container with no sides and frame members at the front and rear. Container can be loaded from the sides and top.
FMC (F.M.C.) Federal Maritime Commission. The U.S. Governmental regulatory body responsible for administering maritime affairs including the tariff system, Freight Forwarder Licensing, enforcing the conditions of the Shipping Act and approving conference or other carrier agreements.
FOB See Free On Board. See also Terms of Sale, FOB.
FOB Freight Allowed the same as FOB named inland carrier, except the buyer pays the transportation charge and the seller reduces the invoice by A like amount.
FOB Freight Prepaid the same as FOB named inland carrier, except the seller pays the Freight charges of the inland carrier.
Force Majeure The title of a common clause in contracts, exempting the parties for non-fulfillment of their obligations as a result of conditions beyond their control, such as earthquakes, floods or war.
Fork Lift A machine used to pick up and move goods loaded on pallets or skids.
Forwarder Compensation See Brokerage.
Foul Bill of Lading A receipt for goods issued by a carrier with an indication that the goods were damaged when received. Compare Clean Bill of Lading.
Four-Way Pallet A pallet designed so that the forks of a fork lift truck can be inserted from all four sides. See Fork lift.
Free Alongside (FAS) The seller must deliver the goods to a pier and place them within reach of the ship's loading equipment. See Terms of Sale.
Free Astray An astray shipment (a lost shipment that is found) sent to its proper destination without additional charge.
Free on Board (FOB - U.S. Domestic Use) Shipped under a rate that includes costs of delivery to and the loading onto a carrier at a specified point. Also means the point at which title to the goods passes from seller to buyer.
Free on Board (Int'l Use) See Terms of Sale.
Free Port A restricted area at a seaport for the handling of duty-exempted import goods. Also called a Foreign Trade Zone.
Free Sale Certificate The U.S. government does not issue certificates of free sale. However, the Food and Drug Administration, Silver Spring, Maryland, will issue, upon request, a letter of comment to the U.S. manufacturers whose products are subject to the Federal Food, Drug and Cosmetic Act or other acts administered by the agency. The letter can take the place of the certificate.
Free Time That amount of time that a carrier's equipment may be used without incurring additional charges. (See Storage, Demurrage or Per Diem.)
Free Trade Zone A port designated by the government of a country for duty-free entry of any non-prohibited goods. Merchandise may be stored, displayed, used for manufacturing, etc., within the zone and re-exported without duties.
Freight Refers to either the cargo carried or the charges assessed for carriage of the cargo.
Freight Bill A document issued by the carrier based on the bill of lading and other information; used to account for a shipment operationally, statistically, and financially. An Invoice.
Freight Forwarder A person whose business is to act as an agent on behalf of the shipper. A freight forwarder frequently makes the booking reservation.
FOR Abbreviation for "Free on Rail."
Force Majeure The title of a common clause in contracts, exempting the parties for non-fulfillment of their obligations as a result of conditions beyond their control, such as earthquakes, floods or war.
Fork Lift A machine used to pick up and move goods loaded on pallets or skids.
Forwarder Compensation See Brokerage.
Foul Bill of Lading A receipt for goods issued by a carrier with an indication that the goods were damaged when received. Compare Clean Bill of Lading.
Four-Way Pallet A pallet designed so that the forks of a fork lift truck can be inserted from all four sides. See Fork lift.
Free Astray An astray shipment (a lost shipment that is found) sent to its proper destination without additional charge.
Free on Board (FOB - U.S. Domestic Use) Shipped under a rate that includes costs of delivery to and the loading onto a carrier at a specified point.
Free on Board (Int'l Use) See Terms of Sale.
Free Time That amount of time that a carrier's equipment may be used without incurring additional charges. (See Storage, Demurrage or Per Diem.)
Free Trade Zone A port designated by the government of a country for duty-free entry of any non-prohibited goods. Merchandise may be stored, displayed, used for manufacturing, etc., within the zone and re-exported without duties.
Freight Refers to either the cargo carried or the charges assessed for carriage of the cargo.
Freight Bill A document issued by the carrier based on the bill of lading and other information; used to account for a shipment operationally, statistically, and financially. An Invoice.
Freight Forwarder (Ocean) A person whose business is to act as an agent on behalf of the shipper with steamship lines. A freight forwarder frequently makes the booking reservation.
Fuel Surcharge (FSC) An additional charge to the customer to make up for an increase in fuel prices.
Full Visible Capacity Defined as that quantity of freight which, in the manner loaded, so fills a vehicle that no additional article in the shipping form tendered identical in size to the largest article in the shipment can be loaded in or on the vehicle; or that maximum quantity of freight that can be legally loaded in or on a vehicle due to weight limitations.
G
Gateway Industry-related: A point at which freight moving from one territory to another is interchanged between transportation lines.
GBL Abbreviation for "Government Bill of Lading."
General Order (G.O.) When U.S. Customs orders shipments without entries to be kept in their custody in a bonded warehouse.
Generator Set (Gen Set) A portable generator which can be attached to a refrigerated container to power the refrigeration unit during transit.
Gooseneck The front rails of the chassis that raise above the plane of the chassis and engage in the tunnel of a container leading to the connection to tractor.
GRI Abbreviation for "General Rate Increase." Used to describe an across-the-board tariff rate increase implemented by conference members and applied to base rates.
Gross Weight Entire weight of goods, packaging and freight car or container, ready for shipment. Generally, 80,000 pounds maximum container, cargo and tractor for highway transport.
Groupage A consolidation service, putting small shipments into containers for shipment.
GVW Abbreviation for "Gross Vehicle Weight." The combined total weight of a vehicle and its container, inclusive of prime mover.
H
HAZ MAT An industry abbreviation for "Hazardous Material."
High-Density Compression Compression of a flat or standard bale of cotton to approximately 32 pounds per cubic foot. Usually applies to cotton exported or shipped coastwise.
Humping The process of connecting a moving rail car with a motionless rail car within a rail classification yard in order to make up a train. The cars move by gravity from an incline or "hump" onto the appropriate track.
Hundredweight A unit of weight arrived at by dividing the actual weight by 100. Hundredweight (also called CWT) is a standard presentation of LTL carrier rates.
I
Import To receive goods from a foreign country.
Import License A document required and issued by some national governments authorizing the importation of goods.
In Bond Cargo moving under Customs control where duty has not yet been paid.
In Transit In transit, or in passage.
In-Transit Entry (I.T.) Allows foreign merchandise arriving at one port to be transported in bond to another port, where a superseding entry is filed.
Incentive Rate A lower-than-usual tariff rate assessed because a shipper offers a greater volume than specified in the tariff. The incentive rate is assessed for that portion exceeding the normal volume.
Indemnity Bond An agreement to hold a carrier harmless with regard to a liability.
Independent Action Setting rate within a conference tariff that is different from the rate(s) for the same items established by other conference members.
Independent Tariff Any body of rate tariffs that are not part of an agreement or conference system.
Inducement Placing a port on a vessel's itinerary because the volume of cargo offered at that port justifies the cost of routing the vessel.
Inherent Vice An insurance and cargo claims term referring to any defect or other characteristic of a product that could result in damage to the product without external cause (for example, instability in a chemical that could cause it to explode spontaneously). Insurance policies may exclude inherent vice losses. Carriers do not cover cargo claims made for inherent vice.
Inland Carrier A transportation line that hauls export or import traffic between ports and inland points.
Inspection Certificate A certificate issued by an independent agent or firm attesting to the quality and/or quantity of the merchandise being shipped. Such a certificate is usually required in a letter of credit for commodity shipments.
Inside Delivery When a driver is required to go beyond the front door or loading dock to pick up or deliver a load rather than remaining in his/her truck or on the loading dock.
Installment Shipments Successive shipments are permitted under letters of credit. Usually they must take place within a given period of time.
Insulated Container A container insulated on the walls, roof, floor, and doors, to reduce the effect of external temperatures on the cargo.
Insulated Container Tank The frame of a container constructed to hold one or more thermally insulated tanks for liquids.
Insurance, All-risk This type of insurance offers the shipper the broadest coverage available, covering against all losses that may occur in transit.
Interchange Point A location where one carrier delivers freight to another carrier.
Interline Freight Freight moving from origin to destination over the Freight lines of two or more transportation carriers.
Intermediate Point A point located en route between two other points.
Intermodal Used to denote movements of cargo containers interchangeably between transport modes, i.e., motor, water, and air carriers, and where the equipment is compatible within the multiple systems.
Invoice An itemized list of goods shipped to a buyer, stating quantities, prices, shipping charges, etc.
Irrevocable Letter of Credit Letter of credit in which the specified payment is guaranteed by the bank if all terms and conditions are met by the drawee and which cannot be revoked without joint agreement of both the buyer and the seller.
Issuing Bank Bank that opens a straight or negotiable letter of credit and assumes the obligation to pay the bank or beneficiary if the documents presented are in accordance with the terms of the letter of credit.
Issuing Carrier The carrier issuing transportation documents or publishing a tariff.
J
Jacket A wood or fiber cover placed around such containers as cans and bottles.
JIT Abbreviation for "Just In Time." In this method of inventory control, warehousing is minimal or nonexistent; the container is the movable warehouse and must arrive "just in time;" not too early or too late.
Joint Rate A rate applicable from a point on one transportation line to a point on another line, made by agreement and published in a single tariff by all transportation lines over which the rate applies.
K
Kilogram 1,000 grams or 2.2046 pounds.
King Pin A coupling pin centered on the front underside of a chassis; couples to the tractor.
Knocked Down (KD) Articles which are taken apart to reduce the cubic footage displaced or to make a better shipping unit and are to be re-assembled. In truck transportation KD is defined as an object which when knocked down can be shipped at less than 2/3 of it’s normal size.
Knocked Down Flat (KDF) Articles which are taken apart to reduce the cubic footage displaced or to make a better shipping unit and are to be re-assembled. In truck transportation KDF is defined as an object which when knocked down can be shipped at less than 1/3 of it’s normal size.
Knot One nautical mile (6,076 feet or 1852 meters) per hour. In the days of sail, speed was measured by tossing overboard a log, which was secured by a line. Knots were tied into the line at intervals of approximately six feet. The number of knots measured was then compared against time required to travel the distance of 1000 knots in the line.
Known Loss A loss discovered before or at the time of delivery of a shipment.
KT Kilo or metric ton. 1,000 Kilos or 2,204.6 pounds.
L
L/C Abbreviation for "Letter of Credit."
Laden Loaded aboard a vessel.
Lading Refers to the freight shipped; the contents of a shipment.
Landbridge Movement of cargo by water from one country through the port of another country, thence, using rail or truck, to an inland point in that country or to a third country. As example, a through movement of Asian cargo to Europe across North America.
Landed Cost The total cost of a good to a buyer, including the cost of transportation.
Landing Gear A support fixed on the front part of a chassis (which is retractable); used to support the front end of a chassis when the tractor has been removed.
LCL Abbreviation for "Less than Container Load." The quantity of freight which is less than that required for the application of a container load rate. Loose Freight.
LTL Less Than Truckload Also known as LCL. Is an acronym for Less-Than-Load, meaning cargo that is not of the quantity to require an entire truckload (TL) by itself. Typically, an LTL shipment ranges from 100 lbs to 20,000 lbs.
Letter of Credit (LC) A document, issued by a bank per instructions by a buyer of goods, authorizing the seller to draw a specified sum of money under specified terms, usually the receipt by the bank of certain documents within a given time. Some of the specific descriptions are:
Letter of Credit (LC) - Back-to-Back A new letter of credit issued to another beneficiary on the strength of a primary credit. The second L/C uses the first L/C as collateral for the bank. Used in a three-party transaction.
Letter of Credit (LC) - Clean A letter of credit that requires the beneficiary to present only a draft or a receipt for specified funds before receiving payment.
Letter of Credit (LC) - Confirmed An L/C guaranteed by both the issuing and advising banks of payment so long as seller's documents are in order, and the L/C terms are met. Only applied to irrevocable L/C's. The confirming bank assumes the credit risk of the issuing bank.
Letter of Credit (LC) - Deferred Payment A letter of credit issued for the purchase and financing of merchandise, similar to acceptance-type letter of credit, except that it requires presentation of sight drafts payable on an installment basis.
Letter of Credit (LC) - Irrevocable An instrument that, once established, cannot be modified or cancelled without the agreement of all parties concerned.
Letter of Credit (LC) - Non cumulative A revolving letter of credit that prohibits the amount not used during the specific period from being available afterwards.
Letter of Credit (LC) - Restricted A condition within the letter of credit which restricts its negotiation to a named bank.
Letter of Credit (LC) - Revocable An instrument that can be modified or cancelled at any moment without notice to and agreement of the beneficiary, but customarily includes a clause in the credit to the effect that any draft negotiated by a bank prior to the receipt of a notice of revocation or amendment will be honored by the issuing bank. Rarely used since there is no protection for the seller.
Letter of Credit (LC) - Revolving An irrevocable letter issued for a specific amount; renews itself for the same amount over a given period.
Letter of Credit (LC) - Straight A letter of credit that contains a limited engagement clause which states that the issuing bank promises to pay the beneficiary upon presentation of the required documents at its counters or the counters of the named bank.
Letter of Credit (LC) - Transferable A letter of credit that allows the beneficiary to transfer in whole or in part to another beneficiary any amount which, in aggregate, of such transfers does not exceed the amount of the credit. Used by middlemen.
Letter of Credit (LC) - Unconfirmed A letter of credit forwarded to the beneficiary by the advising bank without engagement on the part of the advising bank.
Letter of Indemnity In order to obtain the clean bill of lading, the shipper signs a letter of indemnity to the carrier on the basis of which may be obtained the clean bill of lading, although the dock or mate's receipt showed that the shipment was damaged or in bad condition.
Licenses Some governments require certain commodities to be licensed prior to exportation or importation. Clauses attesting to compliance are often required on the B/L. Various types issued for export (general, validated) and import as mandated by government(s).
Lien A legal claim upon goods for the satisfaction of some debt or duty.
Liftgate Service A liftgate is a motorized platform affixed to the back of some trucks that raises and lowers cargo between the ground and the truck. When the shipping or receiving location does not have a loading dock, manual loading or unloading is necessary. Accessorial fees will apply for this service.
Line-Haul Transportation from one city to another as differentiated from local switching service.
Liner A vessel sailing between specified ports on a regular basis.
Liquidated Damages The penalty a seller must pay if the construction project does not meet contractual standards or deadlines.
Liter 1.06 liquid U.S. quarts or 33.9 fluid ounces.
Load Locks A rubber footed bar used to secure freight from moving.
Load Ratio The ratio of loaded miles to empty miles. Also sometimes called load bars.
Local Cargo Cargo delivered to/from the carrier where origin/destination of the cargo is in the local area.
Logistics Logistics is that part of the supply chain process that plans, implements, and controls the efficient, effective flow and storage of goods, services, and related information from the point of origin to the point of consumption in order to meet customers' requirements.
Logistics Trailer or Logistics Van A type of trailer outfitted with special load protections and restraints. Typically logistics trailers will have a combination of E-Track, straps, pads, and other equipment. The term logistics trailer is a term of art and types of equipment carried vary.
Long Ton 2,240 pounds.
Longshoreman Individual employed in a port to load and unload ships.
Loose Without packing.
Low-Boy A trailer or semi-trailer with no sides and with the floor of the unit close to the ground.
M
Mandamus A writ issued by a court; requires that specific things be done.
Manifest Document that lists in detail all the bills of lading issued by a carrier or its agent or master for a specific voyage or trip. A detailed summary of the total cargo of a vessel or trailer.
Marine Insurance Broadly, insurance covering loss or damage of goods at sea. Marine insurance typically compensates the owner of merchandise for losses sustained from fire, shipwreck, etc., but excludes losses that can be recovered from the carrier.
Maritime Business pertaining to commerce or navigation transacted upon the sea or in seaports in such matters as the court of admiralty has jurisdiction.
Marking Letters, numbers, and other symbols placed on cargo packages to facilitate identification. Also known as marks.
Marlinespike A pointed metal spike, used to separate strands of rope in splicing.
Master Inbond U.S. Customs' automated program under AMS. It allows for electronic reporting of inbound (foreign) cargoes in the U.S.
MBM 1,000 board feet. One MBM equals 2,265 C.M.
Measurement Cargo Freight on which transportation charges are calculated on the basis of volume measurement.
Measurement Ton 40 cubic feet.
Mechanically Ventilated Container A container fitted with a means of forced air ventilation.
Memorandum Bill of Lading An in-house bill of lading. A duplicate copy.
Meter 39.37 inches (approximately).
Metric Ton 2,204.6 pounds or 1,000 kilograms.
Microbridge A cargo movement in which the water carrier provides a through service between an inland point and the port of load/discharge. The carrier is responsible for cargo and costs from origin on to destination. Also known as IPI or Through Service.
Mile A unit equal to 5,280 feet on land. A nautical mile is 6076.115.
Mini Landbridge An intermodal system for transporting containers by ocean and then by rail or motor to a port previously served as an all_water move (e.g., Hong Kong to New York over Seattle).
Minimum Bill of Lading A clause in a Bill of lading which specifies the least charge that the carrier will make for issuing a lading. The charge may be a definite sum or the current charge per ton for any specified quantity.
Minimum Charge The lowest charge that can be assessed to transport a shipment.
Mixed Container Load A container load of different articles in a single consignment.
MLB Abbreviation for "Mini Landbridge."
Modified Atmosphere A blend of gases tailored to replace the normal atmosphere within a container.
Moving Van Similar to a logistics trailer except generally having a dropped floor to increase volume and ease loading from the ground.
MT Abbreviation for "Metric Ton."
Multimodal Synonymous for all practical purposes with "Intermodal."
N
N.M.F.C. National Motor Freight Classification.
Nautical Mile Distance of one minute of longitude at the equator, approximately 6,076.115. The metric equivalent is 1852.
NEC Abbreviation for "Not Elsewhere Classified."
Negotiable Instruments A document of title (such as a draft, promissory note, check, or bill of lading) transferable from one person to another in good faith for a consideration. Non-negotiable bills of lading are known as "straight consignment." Negotiable bills are known as "order b/l's."
NES Abbreviation for "Not Elsewhere Specified."
Nested Articles packed so that one rests partially or entirely within another, thereby reducing the cubic-foot displacement.
Net Tare Weight The weight of an empty cargo-carrying piece of equipment plus any fixtures permanently attached.
Net Weight Weight of the goods alone without any immediate wrappings, e.g., the weight of the contents of a tin can without the weight of the can.
NOI Abbreviation for "Not Otherwise Indexed."
NOIBN Abbreviation for "Not Otherwise Indexed By Name."
Non-Vessel Operating Common Carrier (NVOCC) A cargo consolidator in ocean trades who will buy space from a carrier and sub_sell it to smaller shippers. The NVOCC issues bills of lading, publishes tariffs and otherwise conducts itself as an ocean common carrier, except that it will not provide the actual ocean or intermodal service.
NOS Abbreviation for "Not Otherwise Specified."
Nose Front of a container or trailer - opposite the tail.
O
Ocean Bill of Lading (Ocean B/L) A contract for transportation between a shipper and a carrier. It also evidences receipt of the cargo by the carrier. A bill of lading shows ownership of the cargo and, if made negotiable, can be bought, sold or traded while the goods are in-transit.
On Board A notation on a bill of lading that cargo has been loaded on board a vessel. Used to satisfy the requirements of a letter of credit, in the absence of an express requirement to the contrary.
Open Account A trade arrangement in which goods are shipped to a foreign buyer without guarantee of payment.
Open Insurance Policy A marine insurance policy that applies to all shipments made by an exporter over a period of time rather than to one shipment only.
Open Top Container A container fitted with a solid removable roof, or with a tarpaulin roof so the container can be loaded or unloaded from the top.
Operating Ratio A comparison of a carrier's operating expense with its net sales. The most general measure of operating efficiency.
Optimum Cube The highest level of cube utilization that can be achieved when loading cargo into a container.
Order-Notify (O/N) A bill of lading term to provide surrender of the original bill of lading before freight is released; usually associated with a shipment covered under a letter of credit.
Origin Location where shipment begins its movement.
Original Bill of Lading (OBL) A document which requires proper signatures for consummating carriage of contract. Must be marked as "original" by the issuing carrier.
OS&D Abbreviation for "Over, Short or Damaged" Usually discovered at cargo unloading.
Overcharge To charge more than the proper amount according to the published rates.
Over-height Cargo Cargo more than 9 feet high which thus cannot fit into a standard container or trailer. Also defines a shipment more than 11 feet high which cannot be loaded on a lowboy so as to remain lower than 13’6" from the ground.
Owner Code (SCAC) Standard Carrier Abbreviation Code identifying an individual common carrier. A three letter carrier code followed by a suffix identifies the carrier's equipment. A suffix of "U" is a container and "C" is a chassis.
