Term
Meaning
ABC analysis
This service covers the creation and processing of documents necessary at Origin to complete a shipment i.e. Bill of Lading (B/L), Delivery Order.
Accessibility
A carrier’s ability to provide service between an origin and a destination.
Accessorial charges
A carrier’s charge for accessorial services such as loading, unloading, pickup, and delivery.
Action message
An alert that an MRP or DRP system generates to inform the controller of a situation requiring his or her attention.
Active stock
Goods in active pick locations and ready for order filling.
Activity-Based Costing
A method of cost management that identifies business activities performed, accumulates costs associated with these activities, and uses various cost drivers to trace costs of activities to the products.
Advanced shipment notice
A list transmitted to a customer or consignor designating items shipped. May also include expected time of arrival.
Affreightment, Contract Of
An agreement by an ocean carrier to provide cargo space on a vessel at a specified time and for a specified price to accommodate an exporter or importer.
Agency Fee
A fee charged to the ship by the ship’s agent, representing payment for services while the ship was in port. Sometimes called attendance fee.
Agency tariff
A rate bureau publication that contains rates for many carriers.
Agent
An enterprise authorized to transact business for, or in the name of, another enterprise.
Agglomeration
A net advantage a company gains by sharing a common location with other companies.
Aggregate tender rate
A reduced rate offered to a shipper who tenders two or more class-related shipments at one time and one place.
Air cargo
Freight that is moved by air transportation.
Air Carrier
An enterprise that offers transportation service via 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.
Agency Fee
A fee charged to the ship by the ship’s agent, representing payment for services while the ship was in port. Sometimes called attendance fee.
Air Waybill
A bill of lading for air transport that serves as a receipt for the shipper, indicates that the carrier has accepted the goods listed, obligates the carrier to carry the consignment to the airport of destination according to specified conditions.
Aircargo Agent
An agent appointed by an airline to solicit and process international airfreight shipments.
Aircargo Containers
Containers designed to conform to the inside of an aircraft. There are many shapes and sizes of containers. Aircargo containers fall into three categories: 1) aircargo pallets 2) lower deck containers 3) box type containers.
Airport and Airway Trust Fund
A federal fund that collects passenger ticket taxes and disburses those funds for airport facilities.
All Water
Term used when the transportation is completely by water.
All-cargo carrier
An air carrier that transports cargo only
Any-quantity rate
A rate that applies to any size shipment tendered to a carrier; no discount rate is available for large shipments.
Arrival Notice
A notice from the delivering carrier to the Notify Party indicating the shipment’s arrival date at a specific location (normally the destination).
Assignment
The transfer of rights, duties, responsibilities, and benefits of an agreement, contract, or financial instrument to a third party.
Audit
In reference to freight bills, the term audit is used to determine the accuracy of freight bills.
Auditing
Determining the correct transportation charges due the carrier; auditing involves checking the freight bill for errors, correct rate, and weight.
Average cost
Total cost, fixed plus variable, divided by total output.
Term
Meaning
Back Haul
The return movement of a means of transport that has provided a transport service in one direction.
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.
Backfreight
The owners of a ship are entitled to payment as freight for merchandise returned through the fault of either the consignees or the consignors. Such payment, which is over and above the normal freight, is called back freight.
Balance of Trade
The surplus or deficit which results from comparing a country’s exports and imports of merchandise only.

Bale

A large compressed, bound, and often wrapped bundle of a commodity, such as cotton or hay.

Barge

A cargo vehicle in which its autonomous driving mechanism for moving goods may or may not be present. In most cases, inland water vessels use main barges with open tops, but there are not only open but also indoor barges for dry or liquid content. Barges can be joined together and pushed or pulled by tugboats carrying content weighing sixty thousand tons or more. Not very large barges for transporting goods between ship and land are called “lighters”.
Barratry
An act committed by the master or mariners of a vessel, for some unlawful or fraudulent purpose, contrary to their duty to the owners, whereby the latter sustain injury. It may include negligence, if so gross as to evidence fraud.

Barter

The exchange of commodities or services for other commodities or services rather than the purchase of commodities or services with money.
Base Currency
The currency whose value is “one” whenever a quote is made between two currencies.
Basing-point pricing
A pricing system that includes a transportation cost from a particular city or town in a zone or region even though the shipment does not originate at the basing point.
Batch picking
The picking of items from storage for more than one order at a time.
Benefit-cost ratio
An analytical tool used in public planning; a ratio of total measurable benefits divided by the initial capital cost. Bill of Lading A document issued by an entity providing transportation services that serves three purposes: 1) serves as receipt for the goods delivered to the carrier for shipment, 2) defines the contract of carriage of the goods from the point of origin to the point of destination according to the responsibilities of the service provider listed on the bill of lading, 3) under certain conditions, provides evidence of title for the goods. Bill of Lading Number The number assigned by the carrier to identify the bill of lading.
Bill of Lading, Through
A bill of lading to cover goods from point of origin to final destination when interchange or transfer from one carrier to another is necessary to complete the journey.
Billable Weight
Weight is taken as a basis when the price is generating.
Billing
A carrier terminal activity that determines the proper rate and total charges for a shipment and issues a freight bill.
BIF
Bond in Force. This is equivalent to the duty/tax amount that would be payable if the shipment was imported into the country. For shipments going into bond forwarder is required to set up a collateral equivalent to the amount of the bond. Bond fee is a % of the BIF. Bond is then cancelled once goods are withdrawn from bond and exported or when client is ready to pay duty.
Binder
A strip of cardboard, thin wood, burlap, or similar material placed between layers of containers to hold a stack together.
Blanket rate
A rate that does not increase according to the distance a commodity is shipped. Bond, In Goods are held or transported In-Bond under customs control either until import duties or other charges are paid, or in order to avoid paying the duties or charges until a later date.
Blind shipping
When one or more parties don’t know who the shipper is, whose receiver is, or both are.
Bond, In
The goods in storage are transported in customs regime under customs control or until payment of import duties or some other fees, or to avoid payment of duties or fees until a later date.
Bonded Goods
Imported goods are stored in the so-called customs warehouse, which is a gateway where the goods can be stored for some time without payment for storage and duties.
Bonded trucking
Trucking charge for shipments to a Free Trade Zone.
Bonded warehousing
A type of warehousing in which companies place goods in storage without paying taxes or tariffs. The warehouse manager bonds himself or herself to the tax or tariff collecting agency to ensure payment of the taxes before the warehouse releases the goods.
Booking
The act of requesting space and equipment aboard a vessel for cargo which is to be transported.
Booking Confirmation
Booking confirmation is a receipt.
Booking Fee
Additional costs that the agent adds to the tariff.
Booking Number
The number assigned to a certain space reservation by the carrier or the carrier’s agent.
Boxcar
An enclosed railcar, typically forty to fifty feet long, used for packaged freight and some bulk commodities.
Bracing
To secure a shipment inside a carrier’s vehicle to prevent damage.
Break Bulk Cargo
Cargo that is shipped as a unit or package (for example: palletized cargo, boxed cargo, large machinery, trucks) but is not containerized.
Break Bulk Vessel
A vessel designed to handle break bulk cargo.
Break-bulk
The separation of a consolidated bulk load into smaller individual shipments for delivery to the ultimate consignee. The freight may be moved intact inside the trailer, or it may be interchanged and rehandled to connecting carriers.

Broker

There are 3 definitions for the term “broker”:
1) an enterprise that owns & leases equipment
2) an enterprise that arranges the buying & selling of transp., goods, or services
3) a ship agent who acts for the ship owner or charterer in arranging charters.
Buffer Stock
A quantity of goods or articles kept in storage to safeguard against unforeseen shortages or demands.
Bulk area
A storage area for large items which at a minimum are most efficiently handled by the pallet load. Bulk Cargo shipped in loose condition and of a homogeneous nature. Cargoes that are shipped unpackaged either dry, such as grain and ore, or liquid, such as petroleum products. Bulk service generally is not provided on a regularly scheduled basis, but rather as needed, on specialized ships, transporting a specific commodity.
Bundling
An occurrence where two or more products are combined into one transaction for a single price.
Business logistics
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.
Buyer
An enterprise that arranges for the acquisition of goods or services and agrees to payment terms for such goods or services.
Term
Meaning
Cabotage
(1) Trade or navigation in coastal waters. (2) The exclusive right of a country to operate the air traffic within its territory.

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.
Cargo
Merchandise carried by a means of transportation
Carnet
A customs document allowing special categories of goods to cross international borders without payment of duties.
Carrier
An enterprise engaged in the business of transporting goods.
Carrier Certificate & Release Order
Used to advise customs of the shipment’s details. By means of this document, the carrier certifies that the firm or individual named in the certificate is the owner or consignee of the cargo.
Cartage
There are two definitions for this term: 1) charge for pick-up and delivery of goods 2) movement of goods locally (short distances).
Cartel
An association of several independent national or international business organizations that regulates competition by controlling the prices, the production, or the marketing of a product or industry.
Cartment
Customs form permitting in-bond cargo to be moved from one location to another under Customs control, within the same Customs district. Usually in motor carrier’s possession while draying cargo.
Cash Against Documents (CAD)
A method of payment for goods in which documents transferring title are given to the buyer upon payment of cash to an intermediary acting for the seller.
Cash In Advance
A method of payment for goods whereby the buyer pays the seller in advance of shipment of goods.
Cash with Order
A method of payment for goods where cash is paid at the time of order, and the transaction becomes binding on both buyer and seller.
Certificate of Insurance (COI)
A negotiable document indicating that insurance has been secured under an open policy to cover loss or damage to a shipment while in transit.
Certificate of Origin
A document containing an affidavit to prove the origin of imported goods. Used for customs and foreign exchange purposes.
Channel of Distribution
A means by which a manufacturer distributes products from the plant to the ultimate user, including warehouses, brokers, wholesalers, retailers, etc.
Chargeable Weight
The shipment weight used in determining freight charges. The chargeable weight may be the dimensional weight or, for container shipments, the gross weight of the shipment less the tare weight of the container.
Charterer
The person to whom is given the use of the whole of the carrying capacity of a ship for the transportation of cargo or passengers to a stated port for a specified time.
Charter Party
A contractual agreement between a ship owner and a cargo owner, usually arranged by a broker, whereby a ship is chartered (hired) either for one voyage or a period of time.
Charter Rates
The tariff applied for chartering tonnage in a particular trade.
Clearance
A document stating that a shipment is free to be imported into the country after all legal requirements have been met.
Collect Freight
Freight payable to the carrier at the port of discharge or ultimate destination. The consignee does not pay the freight charge if the cargo does not arrive at the destination.
Collective Paper
All documents (commercial invoices, bills of lading, etc.) submitted to a buyer for the purpose of receiving payment for a shipment.
Combined Transport
Means the carriage of goods by at least two different modes of transport, from a place at which the goods are taken in charge situated in one country to a place designated for delivery situated in a different country. Combined Transport is also referred to in the USA as “Intermodal Transport” and in other parts of the world as “Multimodal Transport”.
Commercial Invoice
A document created by the seller. It is an official document which is used to indicate, among other things, the name and address of the buyer and seller, the product(s) being shipped, and their value for customs, insurance, or other purposes.
Commodities
Any article exchanged in trade, most commonly used to refer to raw materials and agricultural products.
Commodity Code
A code describing a commodity or a group of commodities pertaining to goods classification. This code can be carrier tariff or regulating in nature.
Concealed Damage
Damage that is not evident from viewing the unopened package.
Conference
A group of vessel operators joined for the purpose of establishing freight rates.
Conference Carrier
An ocean carrier who is a member of an association known as a “conference.” The purpose of the conference is to standardize shipping practices, eliminate freight rate competition, and provide regularly scheduled service between specific ports.
Consignee
The receiver of goods, i.e. a freight shipment, usually the buyer.
Consignment
Goods shipped to an overseas agent when an actual purchase has not been made, but when the consignee agrees to sell the goods.
Consignor
The shipper of goods, or shipper of a transportation movement.
Consolidation
Collecting smaller shipments to form a larger quantity in order to realize lower transportation rates.
Consolidation Point
The location where consolidation takes place.
Consolidator
An enterprise that provides services to group shipments, orders, and/or goods to facilitate movement.
Consolidator’s Bill of Lading
A bill of lading issued by a consolidator as a receipt for merchandise that will be grouped with cargo obtained from other shippers.
Container
A van, flatrack, open top trailer or other similar trailer body on or into which cargo is loaded and transported without chassis aboard ocean vessels.; a large rectangular or square container/box of a strong structure that can withstand continuous rough handling from ship to shore and back. It opens from one side to allow cargo to be stacked and stowed into it.
Container Chassis
A vehicle built for the purpose of transporting a container so that, when a container and chassis are assembled, the produced unit serves as a road trailer.
Container depot
The storage area for empty containers.
Container Freight Station
The location designated by carriers for receipt of cargo to be packed into containers/equipment by the carrier. At destination, CFS is the location designated by the carrier for unpacking of cargo from equipment/containers.
Container Freight Station Charge
The charge assessed for services performed at the loading or discharge location.
Container ID
An identifier assigned to a container by a carrier.
Container Manifest
Document showing contents and loading sequence of a container.
Container Terminal
An area intended for storing goods in containers, usually delivered by road, rail, and sea, where containers are picked up, dropped off, maintained and housed.
Container Vessel
A vessel specifically designed for the carriage of containers.
Container Yard
The location designated by the carrier for receiving, assembling, holding, storing, and delivering containers, and where containers may be picked up by shippers or redelivered by consignees.
Containerization
The technique of using a boxlike device in which a number of packages are stored, protected, and handled as a single unit in transit.
Contraband
Cargo that is prohibited.
Countertrade
A reciprocal trading agreement that includes a variety of transactions involving two or more parties.
Cube Out
The situation when a piece of equipment has reached its volumetric capacity before reaching the permitted weight limit.
Cubic Capacity
The carrying capacity of a piece of equipment according to measurement in cubic feet.
Customer
An enterprise that uses the services as provided by another enterprise.
Customer Order
The seller’s internal translation of their buyer’s Purchase Order. The document contains much of the same information as the purchase order but may use different Product IDs for some or all of the line items. It will also determine inventory availability.
Customs
The authorities designated to collect duties levied by a country on imports and exports.
Customs Broker
A firm that represents importers/exporters in dealings with customs. Normally responsible for obtaining and submitting all documents for clearing merchandise through customs, arranging inland transport, and paying all charges related to these functions.
Customs Clearance
The act of obtaining permission to import merchandise from another country into the importing nation.
Customs Invoice
Payment charged by customs when importing or exporting goods.
Customs Value
The value of the imported goods on which duties will be assessed.
Term
Meaning
Dangerous Goods
Articles or substances capable of posing a significant risk to health, safety, or property, and that ordinarily require special attention when transported.
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.
Declared Value for Carriage
The value of the goods, declared by the shipper on a bill of lading, for the purpose of determining a freight rate or the limit of the carrier’s liability.
Deconsolidator
An enterprise that provides services to un-group shipments, orders, goods, etc., to facilitate distribution.
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 six 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 that 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 other countries.
Delivery Instructions
A document issued to a carrier to pick up goods at a location and deliver them to another location.
Delivery Order
A document issued by the customs broker to the ocean carrier as authority to release the cargo to the appropriate party.
Demurrage
The penalty for exceeding free time allowed for loading/unloading under the terms of the agreement with the carrier. Demurrage is the term used in the rail and ocean industry; detention is used in the motor industry.
Density
A physical characteristic measuring a commodity’s mass per unit volume or pounds per cubic foot; an important factor in ratemaking, since density affects the utilization of a carrier’s vehicle.
Density rate
A rate based upon the density and shipment weight.
Detention
The penalty for exceeding free time allowed for loading/unloading under the terms of the agreement with the carrier. Detention is the term used in the motor industry; demurrage is used in the rail and ocean industry.
Devanning
The unloading of cargo from a container or other piece of equipment.
Term
Meaning
Embargo
A prohibition upon exports or imports, either with specific products or specific countries.
Entry Form
The document that must be filed with Customs to obtain the release of imported goods and to allow collection of duties and statistics. Also called a Customs Entry Form or Entry.
Equipment
The rolling stock carriers use to facilitate the transportation services that they provide, including containers, trucks, chassis, vessels, and airplanes, among others.
Exception Rate
A deviation from the class rate; changes (exceptions) made to the classification.
Exclusive Patronage Agreements
A shipper agrees to use only a conference’s member liner firms in return for a 10 to 15 percent rate reduction.
Expediting
Determining where an in-transit shipment is and attempting to speed up its delivery.
Export Broker
An enterprise that brings together buyer and seller for a fee, then eventually withdraws from the transaction.
Export License
A document secured from a government authorizing an exporter to export a specific quantity of a controlled commodity to a certain country. An export license is often required if a government has placed embargoes or other restrictions upon exports.
Export Sales Contract
The initial document in any international transaction; it details the specifics of the sales agreement between the buyer and seller.
Term
Meaning
Fair Return
A profit level that enables a carrier to realize a rate of return on investment or property value that the regulatory agencies deem acceptable for that level of risk.
Fair Value
The value of the carrier’s property; the calculation basis has included original cost minus depreciation, replacement cost, and market value.
Feeder
A grain container or reservoir constructed around the hatchway between two decks of a ship which when filled with grain automatically feeds or fills in the vacant areas in the lower holds.
Feeder Service
Cargo to/from regional ports are transferred to/from a central hub port for a long-haul ocean voyage.
Feeder Vessel
A short-sea vessel which transfers cargo between a central hub port and smaller “spoke” ports.
Field Warehouse
A warehouse that stores goods on the goods’ owner’s property while the goods are under a bona fide public warehouse manager’s custody. The owner uses the public warehouse receipts as collateral for a loan.
Fill Rate
The percentage of order items that the picking operation actually found.
Fixed Costs
Costs that do not fluctuate with the business volume in the short run.
Fixed Quantity Inventory Model
A setup wherein a company orders the same(fixed) quantity each time it places an order for an item.
Flexible-Path Equipment
Materials handling devices that include hand trucks and forklifts.
Flow Rack
A storage method where product is presented to picking operations at one end of a rack and replenished from the opposite end.
For-Hire Carrier
A carrier that provides transportation service to the public on a fee basis.
Forklift Truck
A machine-powered device used to raise and lower freight and to move freight to different warehouse locations.
Free Time
The period of time allowed for the removal or accumulation of cargo before charges become applicable.
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
Goods being transported from one place to another.
Freight Bill
The carriers invoice for payment of transport services rendered.
Freight Charge
The rate established for transporting freight.
Freight Collect
The freight and charges to be paid by the consignee.
Freight Forwarder
An enterprise that provides services to facilitate the transport of shipments. Services can include documentation preparation, space and equipment reservation, warehousing, consolidation, delivery, clearance, banking and insurance services, and agency services. The forwarder may facilitate transport by land, air, ocean, or may specialize in one mode of transport. Also called Forwarder or Foreign Freight Forwarder.
Freight Prepaid
The freight and charges to be paid by the consignor.
Freight Quotation
A quotation from a carrier or forwarder covering the cost of transport between two specified locations.
Term
Meaning
Gang
A group of stevedores, usually four to five members, with a supervisor assigned to a hold or portion of the vessel being loaded or unloaded.
Gangway
A narrow portable platform used as a passage, by persons entering or leaving a vessel moored alongside a pier or quay.
General-Commodities Carrier
A common motor carrier that has operating authority to transport general commodities, or all commodities not listed as special commodities.
General-Merchandise Warehouse
A warehouse used to store goods that are readily handled, are packaged, and do not require a controlled environment.
Goods
A term associated with more than one definition: 1) Common term indicating movable property, merchandise, or wares. 2) All materials which are used to satisfy demands. 3) Whole or part of the cargo received from the shipper, including any equipment supplied by the shipper.
Gross Registered Tons
A common measurement of the internal volume of a ship with certain spaces excluded. One ton equals 100 cubic feet; the total of all the enclosed spaces within a ship expressed in tons each of which is equivalent to 100 cubic feet.
Gross Weight
The total weight of the vehicle and the payload of freight or passengers.
Term
Meaning
Haulage
The inland transport service which is offered by the carrier under the terms and conditions of the tariff and of the relative transport document.
Hazardous Goods
Articles or substances capable of posing a significant risk to health, safety, or property, and that ordinarily require special attention when transported. Also called Dangerous Goods.
High Cube (Hi Cube, HQ)
Any container exceeding 102 inches in height.
Term
Meaning
Igloos
Pallets and containers used in air transportation; the igloo shape fits the internal wall contours of a narrow-body airplane.
In Gate
The transaction or interchange that occurs at the time a container is received by a rail terminal or water port from another carrier.
Incoterms
Set of international rules compiled by the International Chamber of Commerce for interpretation of predominant terms used in foreign trade contracts. See Incoterms 2000.
Inland Bill of Lading
The carriage contract used in transport from a shipping point overland to the exporter’s international carrier location.
Inland Carrier
An enterprise that offers overland service to or from a point of export.
Inspection Certificate
A document certifying that merchandise (such as perishable goods) was in good condition immediately prior to shipment.
Insurance
A system of protection against loss under which a number of parties agree to pay certain sums (premiums) for a guarantee that they will be compensated under certain conditions for specified loss and damage.
Insurance Certificate
A document issued to the consignee to certify that insurance is provided to cover loss of or damage to the cargo while in transit.
Intermodal transportation
The use of two or more transportation modes to transport freight; for example, rail to ship to truck.
Invoice
A detailed statement showing goods sold or shipped and amounts for each. The invoice is prepared by the seller and acts as the document that the buyer will use to make payment.
Issuing Carrier
The carrier whose name is printed on the bill of lading and with whom the contract of carriage exists.
ISPS Code
The International Ship and Port Facility Code adopted by an IMO Diplomatic Conference in December 2002. Measure is designed to strengthen maritime security. (ISPS Code – Chapter XI-2 of SOLAS).
Term
Meaning
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.
Term
Meaning
Known Loss
A loss discovered before or at the time of delivery of a shipment.
Term
Meaning
Manifest
A list of all cargoes that pertain to a specific shipment, grouping of shipments, or piece of equipment. Ocean carriers will prepare a manifest will prepare a manifest per container, etc.
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.
Measurement ton
Forty cubic feet; used in water transportation ratemaking.
Modal split
The relative use that companies make of transportation modes; the statistics include ton-miles, passenger-miles, and revenue.
Net Weight
The weight of the merchandise, unpacked, exclusive of any containers.
Notify Party
The abbreviation of the name of an organization that should be notified when a shipment reaches its destination.
Ocean Waybill
A document, issued by a shipping line to a shipper which serves as a receipt for the goods and evidence of the contract carriage.
Off-hire Clause
In a time charter, the owner is entitled to a limited time for his vessel to be off hire until such time as the vessel may be repaired or dry-docked.
Off-load
Discharge of cargo from a ship.
Term
Meaning
Net Weight
The weight of the merchandise, unpacked, exclusive of any containers.
Notify Party
The abbreviation of the name of an organization that should be notified when a shipment reaches its destination.
Term
Meaning
Ocean Waybill
A document, issued by a shipping line to a shipper which serves as a receipt for the goods and evidence of the contract carriage.
Off-hire Clause
In a time charter, the owner is entitled to a limited time for his vessel to be off hire until such time as the vessel may be repaired or dry-docked.
Off-load
Discharge of cargo from a ship.
Open Rates
Pricing systems that are flexible and not subject to conference approval. Usually applied to products in which tramps are substituted for liners.
Open Registry
A term used in place of “flag of convenience” or “flag of necessity” to denote registry in a country which offers favorable tax, regulatory, and other incentives to ship owners from other nations.
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.
Overtonnaging
A situation where there are too many ships generally or in a particular trade for the level of available cargoes.
Term
Meaning
Packing List
A document containing information about the location of each Product ID in each package. It allows the recipient to quickly find the item he or she is looking for without a broad search of all packages. It also confirms the actual shipment of goods on a line item basis.
Pallet
A flat tray, generally made of wood but occasionally of steel, on which goods particularly those in boxes, cartons or bags, can be stacked. Its purpose is to facilitate the movement of such goods, mainly by the use of forklift trucks.
Pallet wrapping machine
A machine that wraps a pallet’s contents in stretch-wrap to ensure safe shipment.
Partial Containerships
Multipurpose containerships where one or more but not all compartments are fitted with permanent container cells. Remaining compartments are used for other types of cargo.
Port State Control
The inspection of foreign ships in national ports for the purpose of verifying that the condition of a ship and its equipment comply with the requirements of international conventions and that the vessel is manned and operated in compliance with applicable international law.
Prepaid Freight
Freight paid by the shipper to the carrier when merchandise is tendered for shipment that is not refundable if the merchandise does not arrive at the intended destination.
Pro Forma Invoice
An invoice, forwarded by the seller of goods prior to shipment, that advises the buyer of the particulars and value of the goods. Usually required by the buyer in order to obtain an import permit or letter of credit.
Pro-forma
A type of quotation or offer that may be used when first negotiating the sales of goods or services. If the pro-forma is accepted, then the terms and conditions of the pro-forma may become the request.
Purchase Order
A document created by a buyer to officially request a product or service from a seller. It contains, among other things, the name and address of the buyer, the ship-to address, the quantity, product code (and expected price), requested ship or receipt date, sales and shipping terms, and other appropriate information.
Term
Meaning
Rail Waybill
The bill of lading issued by rail carriers to their customers.
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.
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.
Reefer
A container with a self-contained refrigeration unit, used for the transportation of perishable cargo.
Release Approval
Document to advise that goods are available for further movement or action.
Return Cargo
A cargo which enables a ship to return loaded to the port or area where her previous cargo was loaded.
Revenue Ton
A ton on which the shipment is freighted.
Rolling Cargo
Cargo which is on wheels, such as truck or trailers, and which can be driven or towed on to a ship.
Ro-Ro Ship
Freight ship or ferry with facilities for vehicles to drive on and off (roll-on roll-off); a system of loading and discharging a ship whereby the cargo is driven on and off on ramps. Equipped with large openings at bow and stern and sometimes also in the side, the ship permits rapid loading and discharge with hydraulically operated ramps providing easy access. Fully loaded trucks or trailers carrying containers are accommodated on the deck.
Term
Meaning
Safety stock
The inventory a company holds beyond normal needs as a buffer against delays in receipt of orders or changes in customer buying patterns.
Salvage material
Unused material that has a market value and can be sold.
Scrap material
Unusable material that has no market value.
Sea Waybill
Transport document which is not a document of title/negotiable document. The sea waybill indicates the “on board” loading of the goods and can be used in cases where no ocean bill of lading, i.e. no document of title is required. For receipt of the goods, presentation of the sea waybill by the consignee named therein is not required, which can speed up processing at the port of destination.
Separable cost
A cost that a company can directly assign to a particular segment of the business.
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 or conference, in which the shipper makes a commitment to provide a minimum quantity of cargo over a fixed time period. The ocean carrier or conference also commits to a rate or rate schedule as well as a defined service level, such as space, transit item, port rotation, or other features.
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.
Shipment
A shipment is a user-defined unit containing goods (single or multiple units) and requires transportation from one location to another. A shipment becomes a shipment when it leaves the consignor’s location. A shipment is complete when it arrives at the consignee’s destination.
Shipment Point
A specific location from where goods will depart for movement.
Shipper’s agent
A firm that primarily matches up small shipments, especially single-traffic piggyback loads, to permit shippers to use twin-trailer piggyback rates.
Special Customs Invoice
In addition to a commercial invoice, some countries require a special customs invoice designed to facilitate the clearance of goods and the assessment of customs duties in that country.
Spot Voyage
A charter for a particular vessel to move a single cargo between specified loading port(s) and discharge port(s) in the immediate future. Contract rate (“spot” rate) covers total operating expenses, i.e., bunkers, port charges, canal tolls, crew’s wages and food, insurance and repairs. Cargo owner absorbs, in addition, any expenses specifically levied against the cargo.
Stevedore
Individual or firm that employs longshoremen and who contracts to load or unload the ship.
Stowage
The placing of goods in a ship in such a way as to ensure the safety and stability of the ship not only on a sea or ocean passage but also in between ports when parts of the cargo have been loaded or discharged.
Surcharge
An add-on charge to the applicable charges; motor carriers have a fuel surcharge, and railroads can apply a surcharge to any joint rate that does not yield 110 percent of variable cost.
Term
Meaning
Tare weight
The weight of the vehicle when it is empty.
Tariff
A document issued by a carrier setting forth applicable rules, rates, and charges for the movement of goods. The document sets up a contract of carriage between the shipper, consignee, and carrier.
Tonnage
Deadweight, gross, net, displacement; a quantity of cargo normally expressed as a number of tons.
Ton-mile
A freight transportation output measure that reflects the shipment’s weight and the distance the carrier hauls it; a multiplication of tons hauled and distance traveled.
Tracing
Determining a shipment’s location during the course of a move.
Tracking
A carrier’s system of recording movement intervals of shipments from origins to destinations.
Tramp Service
Vessels operating without a fixed itinerary or schedule or charter contract.
Transit time
The total time that elapses between a shipment’s delivery and its pickup.
Transmittal Letter
A letter from the shipper to its agent that lists the particulars of a shipment, the documents being transmitted, and instructions for the disposition of those documents.
Transshipment
The shipment of merchandise to the point of destination in another country on more than one vessel or vehicle. The liability may pass from one carrier to the next, or it may be covered by Through Bills of Lading issued by the first carrier.
Term
Meaning
Valuation Charges
Transportation charges to shippers who declare a value of goods higher than the value of the carriers’ limits of liability.
Variable cost
Costs that vary directly with the level of activity within a short time. Examples include costs of moving cargo inland on trains or trucks, stevedoring in some ports, and short-term equipment leases. For business analysis, all costs are either defined as variable or fixed. For a business to break even, all fixed costs must be covered. To make a profit, all variable and fixed costs must be recovered plus some extra amount.
Vessel Manifest
The international carrier is obligated to make declarations of the ship’s crew and contents at both the port of departure and arrival. The vessel manifest lists various details about each shipment by BL number. Obviously, the BL serves as the core source from which the manifest is created.
Voyage Charter
A contract whereby the shipowner places the vessel at the disposal of the charterer for one or more voyages, the shipowner being responsible for the operation of the vessel.
Term
Meaning
Warehouse
A place for the reception, delivery, consolidation, distribution, and storage of goods/cargo.
Waybill
A non-negotiable document prepared by or on behalf of the carrier at the point of shipment origin. The document shows point of origin, destination, route, consignor, consignee, description of shipment, and amount charged for the transport service.

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