Below you will find a glossary of commonly use industry terms and definitions.   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    " "Stale" Bill of Lading Often the expensive result of an error or hold-up in the issuing of a B/L, or of its loss! If the consignment arrives at the final destination, but cannot be handed over to the consignee, because the B/L is not available, then the expression "stale B/L" is used.             2 2-way pallet See Pallet             3 3PL A '3PL' or third-party logistics provider; a supplier of outsourced logistics services that primarily uses its own assets and resources.             4 4PL A '4PL' or fourth-party logistics provider; a supplier of outsourced supply chain coordination and management services that generally does not own or operate the underlying logistical assets and resources. See also 3PL and lead logistics provider.    4-way pallet See Pallet             A A.I.D. Agency for International Development.    A.T.A. American Trucking Association.    A.T.A.:  Actual time of arrival    A.T.D.: Actual time of departure    AA Always Afloat (In some ports the ship aground when approaching, or at berth.)    AAR Abbreviation for:- Against All Risks (insurance clause). - Association of American Railroads.    Abaft A point beyond the midpoint of a ships length, towards the rear or stern.    Abandon A proceeding wherein a shipper/consignee seeks authority to abandon all or parts of their cargo.    Abatement A discount allowed for damage or overcharge in the payment of a bill.    ABC analysis: Classification of items in an inventory according to importance defined in terms of criteria such as sales volume and purchase volume.    ABC stratification method used to categorize inventory into groups based upon certain activity characteristics. Examples of ABC stratifications would include ABC by velocity (times sold), ABC by sales dollars, ABC by quantity sold / consumed, ABC by average inventory investment, ABC by margin. ABC stratifications are used to develop inventory planning policies, set count frequencies for cycle counting, slot inventory for optimized order picking, and other inventory management activities.    ABI U.S. Customs' "Automated Broker Interface," by which brokers file importers' entries electronically.    Aboard Referring to cargo being put, or laden, onto a means of conveyance.    Absorption One carrier assumes the charges of another without any increase in charges to the shipper.    Acceptance A time draft (or bill of exchange) that the drawee (payer) has accepted and is unconditionally obligated to pay at maturity. - Broadly speaking, any agreement to purchase goods under specified terms.    accessibility: A carrier's ability to provide service between an origin and a destination.    Accessorial Charges Charges that are applied to the base tariff rate or base contract rate, e.g., bunkers, container, currency, destination/delivery.    A carrier's charge for accessorial services such as loading, unloading, pickup, and delivery.    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.    Acquittance A written receipt in full, in discharge from all claims.    ACS (A.C.S.) U.S. Customs' master computer system, "Automated Commercial Systems."    ACT OF GOD An act beyond human control, such as lightning, flood or earthquake.    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 (ABC) An accounting system that measures the cost and performance of specific activities performed in an organization.    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.    Actual cost inventory costing method used in manufacturing environments that uses the actual materials costs, machine costs, and labor costs reported against a specific work order to calculate the cost of the finished item.    Ad Valorem A term from Latin meaning, "according to value."    ADC Automated data collection. See Automated Data Collection    Added-value processes / services Complementary processes or services applied to a product or service to increase its value to internal or external customers.    Administrative Law Judge A representative of a government commission or agency vested with power to administer oaths, examine witnesses, take testimony, and conduct hearings of cases submitted to, or initiated by, that agency. Also called Hearing Examiner.    Admiralty (Adm.) Refers to marine matters such as an Admiralty Court.    Advance To move cargo up line to a vessel leaving sooner than the one booked. (See "Roll.")    Advanced Charge Transportation charge advanced by one carrier to another to be collected by the later carrier from the consignor or consignee.    Advanced planning and scheduling software system designed to integrate with ERP and MRP systems to enhance the short term production planning and scheduling systems that are notoriously inadequate in MRP systems.  APS  systems have extensive programming logic that allows them to be more effective in dealing with rapidly changing customer demands.    Advanced Shipment Notice (ASN) Detailed shipment information transmitted to a customer or consignee in advance of delivery, designating the contents and nature of the shipment.    A list transmitted to a customer or consignor designating items shipped. May also include expected time of arrival.    Advanced shipment notification advanced shipment notifications (ASNs) are used to notify a customer of a shipment. ASNs will often include PO numbers, SKU numbers, lot numbers, quantity, pallet or container number, carton number. ASNs may be paper-based, however, electronic notification is preferred. Advanced shipment notification systems are usually combined with bar-coded compliance labeling which allows the customer to receive the shipment into inventory through the use of bar-code scanners and automated data collection systems.    Adventure Shipment of goods on shipper's own account. A bill of adventure is a document signed by the master of the ship that carries goods at owner' risk.    Advice of Shipment A notice sent to a local or foreign buyer advising that shipment has gone forward and containing details of packing, routing, etc. A copy of the invoice is often enclosed and, if desired, a copy of the bill of lading.    Advising Bank A bank operating in the seller's country, that handles letters of credit in behalf of a foreign bank.    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.    Aft Movement toward the stern (back end) of a ship.    Aftermarket Activities completed after the sales process, such as the replacement and servicing of parts; particularly prevalent in the automotive industry.    Agency Tariff A tariff published by an agent on behalf of several carriers.    A rate bureau publication that contains rates for many carriers.    Agent (Agt.) A person authorized to transact business for and in the name of another person or company. Types of agent are: (1) brokers, (2) commission merchants, (3) resident buyers, (4) sales agents, 5) manufacturer's representatives.    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 Shipment Numerous shipments from different shippers to one consignee that are consolidated and treated as a single consignment.    aggregate tender rate: A reduced rate offered to a shipper who tenders two or more class-related shipments at one time and one place.    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.    AI  All inclusive.    AIDC Automatic identification & data collection. See Automated Data Collection    air cargo: Freight that is moved by air transportation.    Air Carrier: An enterprise that offers transportation service via air.    Air freight The transportation of goods by air.    air taxi: An exempt for-hire air carrier that will fly anywhere on demand; air taxis are restricted to a maximum payload and passenger capacity per plane.    Air Transport Association of America: A U.S. airline industry association.    AIR WAYBILL (AWB) An Air Waybill is not a title document, it is not negotiable. An Air Waybill is a document which has the same importance in airfreight as a Bill of Lading has in sea freight, but, whereas a B/L is a title document, (i.e. it is a document which proves ownership of the goods mentioned in the B/L, and which can be bought and sold, entitling the buyer to ownership of the goods), an AWB cannot be used in this way.    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. The forwarding agreement or carrying agreement between shipper and air carrier and is issued only in nonnegotiable form.    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 In The total price to move cargo from origin to destination, inclusive of all charges.    All in rate Freight rate which is inclusive of all surcharges and extras.    All Water: Term used when the transportation is completely by water.    all-cargo carrier: An air carrier that transports cargo only.    Allocations allocations in inventory management refer to actual demand created by sales orders or work orders against a specific item.  The terminology and the actual processing that controls allocations will vary from one software system to another.  A standard allocation is an aggregate quantity of demand against a specific item in a specific facility, I have heard standard allocations referred to as normal allocations, soft allocations, soft commitments, regular allocations. Standard allocations do not specify that specific units will go to specific orders.  A firm allocation is an allocation against specific units within a facility, such as an allocation against a specific location, lot, or serial number.  Firm allocations are also referred to as specific allocations, frozen allocations, hard allocations, hard commitments, holds, reserved inventory.  Standard allocations simply show that there is demand while firm allocations reserve or hold the inventory for the specific order designated.    Alongside A phrase referring to the side of a ship. Goods delivered "alongside" are to be placed on the dock or barge within reach of the transport ship's tackle so that they can be loaded.    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.    American Bureau of Shipping U.S. classification society which certifies seagoing vessels for compliance to standardized rules regarding construction and maintenance.    American National Standards Institute (ANSI): ANSI was founded in 1918 to coordinate national standards in the U.S. ANSI is the central body responsible for the identification of a single consistent set of voluntary standards called American National Standards. ANSI provides an open forum for the identification of standards requirements, development of plans to meet those requirements, and agreement on standards. ANSI itself does not develop standards. In 1979 ANSI chartered a new committee, which in now known as Accredited Standards Committee (ASC) X12 Electronic Data Interchange, to develop uniform standards for electronic interchange of business transactions.    American Society of Transportation & Logistics: A professional organization in the field of logistics.    American Trucking Association, Inc.: A motor carrier industry association composed of sub-conferences representing various motor carrier industry sectors.    American Waterway Operators: A domestic water carrier industry association representing barge operators on inland waterways.    AMS The U.S. Customs' "Automated Manifest System."    Amtrak: The National Railroad Passenger Corporation, a federally created corporation that operates most of the United States' intercity passenger rail service.    ANSI: See American National Standards Institute    Anti-Dumping Duty A tariff imposed to discourage sale of foreign goods, subsidized to sell at low prices detrimental to local manufacturers.    Any Quantity (A.Q.) Usually refers to a rating that applies to an article regardless of size or quantity.    A rate that applies to any size shipment tendered to a carrier; no discount rate is available for large shipments.    API: Application Programming Interface    Apparent Good Order When freight appears to be free of damage so far as a general survey can determine.    Appraisement Determination of the dutiable value of imported merchandise by a Customs official who follows procedures outlined in their country's tariff, such as the U.S. Tariff Act of 1930.    Appraiser's Stores The warehouse or public stores to which samples of imported goods are taken to be inspected, analyzed, weighed, etc. by examiners or appraisers.    APS see Advanced Planning and Scheduling    ARB Arbitrary charge.  Charge for added expense, such as transshipment charges or ice-breaking charges.     Arbitrary A stated amount over a fixed rate to one point to make a rate to another point.    ARRIVAL NOTICE A notification by carrier of ship's arrival to the consignee, the "Notify Party," and - when applicable - the "Also Notify Party." These parties in interest are listed in blocks 3, 4 and 10, respectively, of the Bill of Lading.    A notice from the delivering carrier to the Notify Party indicating the shipment's arrival date at a specific location (normally the destination).    artificial intelligence: A field of research seeking to understand and computerize the human thought process.    ASC X12 American Standards Committee X12 responsible for developing EDI standards for the United States.    ASN Advanced Shipment Notifications    ASP,  Application service provider a twist in software marketing in which the software licenses are owned by the ASP and reside on their system while the client rents the rights to use the software.  The ASP may be the software manufacturer or a third party business.  The benefits to an using an ASP are lower upfront costs, quicker implementations, and the reduction of the need for internal IS personnel and mainframe/server hardware.  It is hoped that ASPs will allow small to midsize businesses greater access to technology than was previously available. More recently the terms SaaS (Software as a Service) and On-demand Software have emerged to describe this same scenario.    ASRS see Automated Storage a Retrieval Systems    Assignment A term commonly used in connection with a bill of lading. It involves the transfer of rights, title and interest in order to assign goods by endorsing the bill of lading.    The transfer of rights, duties, responsibilities, and benefits of an agreement, contract, or financial instrument to a third party.    Association of American Railroads: A railroad industry association that represents the larger U.S. railroads.    Astern Behind a vessel. Move in a reverse direction.    ATDNSHINC Any time Day or Night Sundays & Holidays Included.    ATFI: Automated Tariff Filing Information System    Athwartships A direction across the width of a vessel.    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.    Autodiscrimination the functionality of a bar-code reader to recognize the bar-code symbology being scanned, thus allowing a reader to read several different symbologies consecutively.  Read my article ADC Basics    Automated Broker Interface (ABI): The U.S. Customs program to automate the flow of customs-related information among customs brokers, importers, and carriers.    Automated data collection systems of hardware and software used to process transactions in warehouses and manufacturing operations.  Data collection systems may consist of fixed terminals, portable terminals and computers, Radio frequency (RF) terminals, and various types of bar code scanners. a.k.a.  Automated data capture, AIDC, Automatic identification & data collection Read my article ADC Basics.    Automated guided vehicle system (AGVS) describes systems of vehicles that can be programmed to automatically drive to designated points and perform preprogrammed functions.  Guidance system may consist of a wire embedded in the floor, optical system or other types of guidance. Automated guided vehicle (AGV)  More info on Automated Equipment Pics Page.     A computer-controlled materials handling system consisting of small vehicles (carts) that move along a guideway.    Automated storage and retrieval system (ASRS) An automated, mechanized system for moving merchandise into storage locations and retrieving it when needed.    a system of rows of rack, each row having a dedicated retrieval unit that moves vertically and horizontally along the rack picking and putting away loads.  a.k.a. ASRS, AS/RS, Unit-load ASRS and Mini-load ASRS.  More info on Automated Equipment Pics Page.    Available refers to the status of inventory as it relates to its ability to be sold or consumed. Availability calculations are used to determine this status. Availability calculations vary from system to system but basically subtract any current allocations of holds on inventory from the current on-hand balance. An example of an availability calculation would be: [Quantity Available] = [Quantity On Hand] -[ Quantity On Hold] - [Quantity Allocated To Sales Orders] - [Quantity Allocated to Production Orders].    Available to promise available to promise takes the simple availability calculation, adds time phasing and takes into account future scheduled receipts. Available to promise may be calculated for each day or broken down into larger time buckets. The first time period will take on-hand inventory and add any scheduled receipts for that period. It will then deduct any allocations scheduled prior to the next scheduled receipt (which may be several periods in the future). Subsequent periods without any scheduled receipts will have the same available to promise as the previous period. Subsequent periods with scheduled receipts will generally start with a fresh calculation, ignoring any remaining available to promise from previous periods. There are many variations on exactly how available to promise is calculated and it is also important to note that available to promise often works independently of allocation systems. This can sometimes create conflicts.  See also Available, Allocations.    Average cost inventory costing method that recalculates an item's cost at each receipt by averaging the actual cost of the receipt with the cost of the current inventory.    Total cost, fixed plus variable, divided by total output.    Average Inventory The average inventory level over a period of time.    Average: See Marine Cargo Insurance    Avoirdupois Pound Same as 0.4535924277 kilograms.    AWB: See Air Waybill    AWWL Always within Institute Warranties Limits (Insurance purpose).             B B/L Abbreviation for "Bill of Lading."    Back Haul: The return movement of a means of transport that has provided a transport service in one direction.    Back Order Product ordered but out of stock and promised to ship when the product becomes available.    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.    Backflush method for issuing (reducing on-hand quantities) materials to a manufacturing order.  With backflushing, the material is issued automatically when production is posted against an operation. The backflushing program will use the quantity completed to calculate through the bill of material the quantities of the components used, and reduce on-hand balances by this amount.  There are usually options during the backflush process to report scrap.  In operations using backflushing it is advisable to set up specific machine locations and have materials transferred from storage locations to machine locations when they are physically picked for production. The backflush operation will then issue the material from the machine locations.  Read my article on Backflushing.    Backhaul transportation term that describes the activity of picking up, transporting, and delivering a new load on a return trip from delivering another load (known as the fronthaul, though the term fronthaul is not used very frequently).    The return movement of a vehicle from its original destination to its original point of origin, especially when carrying goods back over all or part of the same route. To haul a shipment back over part of a route it has traveled.    Backstage areas Behind-the-scenes areas of malls and shops where stock is held and logistics support and pre-retailing services are undertaken.    backup: Making a duplicate copy of a computer file or a program on a disk or cassette so that the material will not be lost if the original is destroyed; a spare copy.    BAF Abbreviation for "Bunker Adjustment Factor." Used to compensate steamship lines for fluctuating fuel costs. Sometimes called "Fuel Adjustment Factor" or FAF.    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.      Balloon Freight Light, bulky articles.    Bank Guarantee Guarantee issued by a bank to a carrier to be used in lieu of lost or misplaced original negotiable bill of lading.    Bar Code A symbol consisting of a series of printed bars representing values. A system of optical character reading, scanning, and tracking of units by reading a series of printed bars for translation into a numeric or alphanumeric identification code.    A series of lines of various widths and spacings that can be scanned electronically to identify a carton or individual item.    bar code scanner: A device to read bar codes and communicate data to computer systems.    Bar Coding: A method of encoding data for fast and accurate readability. Bar codes are a series of alternating bars and spaces printed or stamped on products, labels, or other media, representing encoded information which can be read by electronic readers called bar.    barge: The cargo-carrying vehicle which may or may not have its own propulsion mechanism for the purpose of transporting goods. Primarily used by Inland water carriers, basic barges have open tops, but there are covered barges for both dry and liquid cargoes.    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.    Barrel (BBL) A term of measure referring to 42 gallons of liquid at 60o F.    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.     Base Rate A tariff term referring to ocean rate less accessorial charges, or simply the base tariff rate.    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 order picking method where orders are grouped into small batches, an order picker will pick all orders within the batch in one pass. Batch picking is usually associated with pickers with multi-tiered picking carts moving up and down aisles picking batches of usually 4 to 12 orders, however, batch picking is also very common when working with automated material handling equipment such as carousels. See also Zone picking, Wave picking. Article Order Picking    The picking of items from storage for more than one order at a time.    BB Ballast Bonus (Special payment above the Chartering price when the ship has to sail a long way on ballast to reach the loading port.)    BCO Abbreviation for "Beneficial Cargo Owner." Refers to the importer of record, who physically takes possession of cargo at destination and does not act as a third party in the movement of such goods.    Beam The width of a ship.    Belt Line A switching railroad operating within a commercial area.    Benchmarking The process of comparing performance against the practices of other leading companies for the purpose of improving performance. Companies also benchmark internally by tracking and comparing current performance with past performance.    A management tool for comparing performance against an organization that is widely regarded as outstanding in one or more areas, in order to improve performance.    BENEFICIARY Entity to whom money is payable. The entity for whom a letter of credit is issued. The seller and the drawer of a draft.    benefit-cost ratio: An analytical tool used in public planning; a ratio of total measurable benefits divided by the initial capital cost.  see Cost Benefit Analysis.    Berth Terms Shipped under rate that includes cost from end of ship's tackle at load port to end of ship's tackle at discharge port.    Best Practice State-of-industry performance or application.    Beyond Used with reference to charges assessed for cargo movement past a line-haul terminating point.    Bilateral A contract term meaning both parties agree to provide something for the other.    Bill of Exchange In the United States, commonly known as a "Draft." However, bill of exchange is the correct term.    Bill of Lading (BOL): 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.    A document that establishes the terms of a contract between a shipper and a transportation company. It serves as a document of title, a contract of carriage and a receipt for goods. 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.    Bill of Lading Number: The number assigned by the carrier to identify the bill of lading.    Bill of Lading Port of Discharge Port where cargo is discharged from means of transport.    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.    Bill of material lists materials (components or ingredients) required to produce an item.  Multilevel BOMs also show subassemblies and their components.  Other information such as scrap factors may also be included in the BOM for use in materials planning and costing.    Bill of Sale Confirms the transfer of ownership of certain goods to another person in return for money paid or loaned.    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.    billing: A carrier terminal activity that determines the proper rate and total charges for a shipment and issues a freight bill.    binder: A strip of cardboard, thin wood, burlap, or similar material placed between layers of containers to hold a stack together.    Blanket Bond A bond covering a group of persons, articles or properties.    Blanket order a type of purchase order that commits to purchase a specific quantity over a specific period of time, but does not necessarily provide specific dates for shipments. Blanket orders are placed for the quantity of an item (or group of items) that you expect to purchase over extended period of time (3 months, 6 months, a year, etc). A blanket purchase order may provide estimated required dates for specific quantities, but actual releases to ship against the blanked order are triggered by separate requests from the customer to the supplier; the specific quantities and dates of these separate requests (releases) may or may not be similar to the estimated dates and quantities. Providing a blanket order to a supplier may reduce lead times and increase on-time shipments from the supplier and may provide a greater discount on purchases.    Blanket Rate A rate applicable to or from a group of points. A special rate applicable to several different articles in a single shipment.    A rate that does not increase according to the distance a commodity is shipped.    Blanket Waybill A waybill covering two or more consignments of freight.    Blanks generally describes discrete units (usually uniform sized units) that are usually produced through a cutting process but are not yet finished items. For example, if a die cutting machine cuts sheets of steel into small rectangular pieces that will later be machined and painted, the unfinished rectangular pieces may be referred to as blanks. Stampings are sometimes referred to as blanks, however, all blanks are not necessarily stampings. See also Stamping    Blind counts describes method used in cycle counting and physical inventories where you provide your counters with item number and location but no quantity information.  See article on Cycle Counting, also check out My book on inventory accuracy.    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 To gain access to a vessel.    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.    BOM see Bill of material    Bond Port Port of initial Customs entry of a vessel to any country. Also known as First Port of Call.    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.    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 facility or a dedicated portion of a facility where imported goods are stored prior to customs duties and taxes being paid. These facilities are often used to delay the payment of import fees until the products are actually sold/shipped (when they physically leave the bonded facility). This can be particularly useful when products are received well in advance of sale or when a portion of the product received may eventually be returned or scrapped (thus preventing paying import fees on items not sold). Bonded warehouses are licensed by the government. I believe the same concept can also be applied to specially taxed domestic products such as alcohol and tobacco products. See also FTZ (Foreign Trade Zone)    A warehouse, distribution centre or consolidation centre that is authorised by customs to store goods; where duties and taxes are only payable once items are dispatched.    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.    Bonded: See Bond, In.    Bookable Leg: See Leg.    Booking Arrangements with a carrier for the acceptance and carriage of freight; i.e., a space reservation.    The act of requesting space and equipment aboard a vessel for cargo which is to be transported.    Booking Number Reservation number used to secure equipment and act as a control number prior to completion of a B/L.    The number assigned to a certain space reservation by the carrier or the carrier's agent.    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.    Bow The front of a vessel.    Box car A closed freight car.    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 To unload and distribute A portion or all of the contents of A rail car, container, or trailer.    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.    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.    Bridge Point An inland location where cargo is received by the ocean carrier and then moved to a coastal port for loading.    Bridge Port A port where cargo is received by the ocean carrier and stuffed into containers but then moved to another coastal port to be waded on a vessel.    Broken Stowage the loss of space caused by irregularity in the shape of packages.    Broker A person who arranges for transportation of loads for a percentage of the revenue from the load.    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.    Brokerage Freight forwarder/broker compensation as specified by ocean tariff or contract.    Browser-based applications software designed to run within a web browser (i.e. Internet Explorer). This allows a user to access the application from any location that has internet access and a web browser (no additional software is needed on the computer accessing the application). Read my article on Software Selection for additional information.    Buffer Stock:  A quantity of goods or articles kept in storage to safeguard against unforeseen shortages or demands.    Bulk the classic use of the term bulk (bulk materials, bulk inventory, bulk storage) in inventory management and distribution refers to raw materials such as coal, iron ore, grains, etc. that are stored or transported in large quantities. This would include rail cars, tanker trucks, or silos full of a single material. However, this term can also have a variety of other definitions based upon the specific industry or facility. For example, a small-parts picking operation may refer to a case storage area as "bulk", while a case-picking operation may refer to the full-pallet area as the "bulk area".    bulk area: A storage area for large items which at a minimum are most efficiently handled by the palletload.    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 Cargo: Goods not in packages or containers. See also, Break Bulk Cargo.    Bulk container A large container designed to carry bulk cargo.    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.    Bull Rings Cargo-securing devices mounted in the floor of containers; allow lashing and securing of cargo.    Bundling: An occurrence where two or more products are combined into one transaction for a single price.    Bunker Charge An extra charge sometimes added to steamship freight rates; justified by higher fuel costs. (Also known as Fuel Adjustment Factor or FAF.)    Bunkers A Maritime term referring to Fuel used aboard the ship. Coal stowage areas aboard a vessel in the past were in bins or bunkers.    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.             C C & F:  See Cost and Freight    C&F Terms of Sale, or INCOTERMS. Obsolete, albeit heavily used, term of sale meaning "cargo and freight" whereby Seller pays for cost of goods and freight charges up to destination port. In July, 1990 the International Chamber of Commerce replaced C&F with CFR.    Cabotage Water transportation term applicable to shipments between ports of a nation; commonly refers to coast-wise or inter-coastal navigation or trade. Many nations, including the United States, have cabotage laws which require national flag vessels to provide domestic interport service.    A federal law that requires coastal and intercoastal traffic to be carried in U.S.-built and registered ships.    CAD: See Cash Against Documents.    CAF Abbreviation for "Currency Adjustment Factor." A charge, expressed as a percentage of a base rate, that is applied to compensate ocean carriers of currency fluctuations.    See Currency Adjustment Factor.    cage: (1) A secure enclosed area for storing highly valuable items, (2) a pallet-sized platform with sides that can be secured to the tines of a forklift and in which a person may ride to inventory items stored well above the warehouse floor.    Campus A site where multiple distribution centres share resources, such as employees and transport, to maximise time and cost efficiencies. See also shared-user.    Cantilever Rack racking system in which the shelving supports are connected to vertical supports at the rear of the rack.  There are no vertical supports on the face of the rack allowing for storage of very long pieces of material such as piping and lumber. Also see Racking Pics Page.    Capacity requirements planning process for determining amount of machine and labor resources required to meet production.    capital: The resources, or money, available for investing in assets that produce output.    CAPSTAN: Computer-Aided Planned Stowage and Networking system.    Captain's Protest A document prepared by the captain of a vessel on arriving at port; shows conditions encountered during voyage, generally for the purpose of relieving ship owner of any loss to cargo and shifting responsibility for reimbursement to the insurance company.    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.    CARAT: Cargo Agents Reservation Air Waybill Issuance and Tracking.    Carfloat A barge equipped with tracks on which up to about 12 railroad cars are moved in harbors or inland waterways.    Cargo Freight loaded into a ship.    Merchandise carried by a means of transportation.    Cargo Manifest A manifest that lists all cargo carried on a specific vessel voyage.    Cargo NOS Cargo Not Otherwise Specified. Usually the rate entry in a tariff that can apply to commodities not covered under a specific item or sub_item in the applicable tariff.    Cargo Preference Cargo reserved by a Nation's laws for transportation only on vessels registered in that Nation. Typically the cargo is moving due to a direct or indirect support or activity of the Government.    Cargo Tonnage Most ocean freight is billed on the basis of weight or measurement tons (W/M). Weight tons can be expressed in short tons of 2000 pounds, long tons of 2240 pounds or metric tons of 1000 kilos (2204.62 pounds). Measurement tons are usually expressed as cargo measurement of 40 cubic feet (1.12 meters) or cubic meters (35.3 cubic feet.)    Carload Rate A rate applicable to a carload of goods.    Carmack Amendment: An Interstate Commerce Act amendment that delineates the liability of common carriers and the bill of lading provisions.    Carnet A Customs document permitting the holder to temporarily carry or send merchandise into certain foreign countries (for display, demonstration or similar purposes) without paying duties or posting bonds. Any of various Customs documents required for crossing some international borders.    A customs document allowing special categories of goods to cross international borders without payment of duties.    Carousel type of automated material handling equipment generally used for high-volume small-parts order-picking operations.  Horizontal carousels are a version of the same equipment used by dry cleaners to store and retrieve clothing. They have racks hanging from them that can be configured to accommodate various size storage bins.  Vertical carousels consist of a series of horizontal trays on a vertical carousel.  Vertical carousels are frequently used in laboratories and specialty manufacturing operations.  More info on carousels on Automated Equipment Pics Page. See article on Order Picking.    A rotating system of layers of bins and/or drawers that can store many small items using relatively little floor space.    Carriage: See Transportation.    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.    A firm which transports goods or people. An enterprise engaged in the business of transporting goods.    Carrier Assets: Items that a carrier owns (technically or outright) to facilitate the services they provide.    Carrier Certificate and 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.    carrier liability: A common carrier is liable for all shipment loss, damage, and delay with the exception of that caused by act of God, act of a public enemy, act of a public authority, act of the shipper, and the goods' inherent nature.    Carrier's Certificate A certificate required by U.S. Customs to release cargo properly to the correct party.    Carrying cost also called holding cost, carrying cost is the cost associated with having inventory on hand.  It is primarily made up of the costs associated with the inventory investment and storage cost. For the purpose of EOQ calculations, if  the cost does not change based upon the quantity of inventory on hand it should not be included in carrying cost. Carrying cost is represented as the annual cost per average on-hand inventory unit. See article on EOQ for more detailed info on carrying cost.    Cartage Usually refers to intra_city hauling on drays or trucks.    There are two definitions for this term: 1) charge for pick-up and delivery of goods 2) movement of goods locally (short distances).    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.    Carton clamp lift truck attachment that operates like a paper roll clamp except the clamping surface is flat rather than circular.    carton flow rack: A storage rack consisting of multiple lines of gravity flow conveyors.    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.    Casting generally describes an unfinished item made of metal that is produced through pouring molten metal into a mold. A casting is later machined into a finished or semi-finished item. Also describes the process used to produce castings.     Catch weight used primarily in the food industry for products such as seafood, meats, and cheeses; catch weights refer to the actual weight of variable-weight items that use weight as the sales unit of measure. Catch weights are generally recorded during the order picking or shipping process. Systems using catch weights must be able to correctly process sales order line items based on the catch weights being within specific tolerances of the "order quantity".    CBM (CM) Abbreviation for "Cubic Meter."    CCD see Charged Coupled Device    CE Abbreviation for "Consumption Entry." The process of declaring the importation of foreign_made goods for use in the United States.    Cells The construction system employed in container vessels; permits ship containers to be stowed in a vertical line with each container supporting the one above it.    Center of Gravity The point of equilibrium of the total weight of a containership, truck, train or a piece of cargo.    central processing unit (CPU): The physical part of the computer that does the actual computing.    centralized authority: The restriction of authority to make decisions to few managers.    Certificate The document issued by the U.S. Coast Guard certifying an American flag vessel's compliance with applicable laws and regulations.    Certificate of Insurance: 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 certified document showing the origin of goods; used in international commerce.    A document containing an affidavit to prove the origin of imported goods. Used for customs and foreign exchange purposes.    certificate of public convenience and necessity: The grant of operating authority that common carriers receive. A carrier must prove that a public need exists and that the carrier is fit, willing, and able to provide the needed service. The certificate may specify the commodities the carrier may haul, and the routes it may use.    certificated carrier: A for-hire air carrier that is subject to economic regulation and requires an operating certification to provide service.    CFR OR C&F (Cost and Freight) A Term of Sale where the seller pays the costs and freight necessary to bring the goods to the named port of destination, Terms of Sale but the risk of loss of or damage to the goods, as (continued) well as any additional costs due to events occurring after the time the goods have been delivered on board the vessel, is transferred from the seller to the buyer when the goods pass the ship's rail in the port of shipment. The CFR term requires the seller to clear the goods for export.    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.    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.    Chargeback chargebacks are becoming more common these days as customers become more specific with their agreements with suppliers. A chargeback is basically a financial penalty placed against a supplier by a customer when a shipment to the customer does not meet the agreed upon terms and conditions. Examples of where suppliers may be charged back would include late shipments, lack of proper packaging and labeling (compliance labels), incorrect shipping terms (shipping collect instead of prepaid or not using the correct carrier or account).    Charged coupled device used to describe a type of barcode scanner that acts like a small digital camera taking a digital image of the barcode as opposed to the standard barcode scanner that uses a laser.  CCD scanners are a low cost option for scanning barcodes at a short distance (usually within a few inches).    charging area: A warehouse area where a company maintains battery chargers and extra batteries to support a fleet of electrically powered materials handling equipment. The company must maintain this area in accordance with government safety regulations.    Charter Party A written contract between the owner of a vessel and the person desiring to employ the vessel (charterer); sets forth the terms of the arrangement such as duration of agreement, freight rate and ports involved in the trip.    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.    A wedge, usually made of hard rubber or steel, that is firmly placed under the wheel of a trailer, truck, or boxcar to stop it from rolling.    CI Abbreviation for "Cost and Insurance." A price that includes the cost of the goods, the marine insurance and all transportation charges except the ocean freight to the named point of destination.    CIA: See Cash In Advance.    CIF (Cost, Insurance and Freight) A Term of Sale where the seller has the same obligations as under the CFR but also has to procure marine insurance against the buyer's risk of loss or damage to the goods during the carriage. The seller contracts for insurance and pays the insurance premium. The CIF term requires the seller to clear the goods for export.    Abbreviation for "Cost, Insurance, Freight." (Named Port) Same as C&F or CFR except seller also provides insurance to named destination.    CIF&C Price includes commission as well as CIF.    CIF&E Abbreviation for "Cost, Insurance, Freight And Exchange."    CIFCI Abbreviation for "Cost, Insurance, Freight, Collection And Interest."    CIFI&E Cost, Insurance, Freight, Interest and Exchange.    city driver: A motor carrier driver who drives a local route as opposed to a long-distance, intercity route.    Civil Aeronautics Board: A federal regulatory agency that implemented economic regulatory controls over air carriers.    CKD Abbreviation for "Completely Knocked Down." Parts and subassemblies being transported to an assembly plant.    CL Abbreviation for "Carload" and "Containerload".    Carload rail service requiring shipper to meet minimum weight.    CLAIM If upon delivery, you notice damaged or missing items you should mark the delivery receipts and inventory accordingly. You must then notify the insurer's of your intent to make a claim within 45 days of delivery.    A demand made upon a transportation line for payment on account of a loss sustained through its alleged negligence. A charge made against a carrier for loss, damage, delay, or overcharge.    Class I carrier: A classification of regulated carriers based upon annual operating revenues--motor carriers of property;  $5 million; railroads; $50 million; motor carriers of passengers; $3 million.    Class II carrier: A classification of regulated carriers based upon annual operating revenues--motor carriers of property: $1-$5 million; railroads: $10-$50 million; motor carriers of passengers: $3 million.    Class III carrier: A classification of regulated carriers based upon annual operating revenues--motor carriers of property: $1 million; railroads $10 million.    Class Rates: A grouping of goods or commodities under one general heading. All the items in the group make up a class. The freight rates that apply to all items in the class are called "class rates."    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 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.    A railroad terminal area where railcars are grouped together to form train units.    classification: An alphabetical listing of commodities, the class or rating into which the commodity is placed, and the minimum weight necessary for the rate discount; used in the class rate structure.    Clayton Act An anti_trust act of the U.S. Congress making price discrimination unlawful.    Clean Bill of Lading A clean Bill of Lading states that the consignment is in apparent good order and condition when shipped on board, and the carrier accepts the liability of delivering the goods in this same condition to the consignee.    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 "cleaned."    Cleaning in Transit The stopping of articles, such as peanuts, etc., for cleaning at a point between the point of origin and destination.    Clear height distance measured from the floor to the bottom of the lowest hanging overhead obstruction. Sometimes realtors will use the distance to the bottom of the roof trusses to calculate clear height even though portions of the building may have lower clear heights due to HVAC units or other equipment suspended from the roof.    Clearance The size beyond which cars or loads cannot use Limits bridges, tunnels, etc.    A document stating that a shipment is free to be imported into the country after all legal requirements have been met.    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).    coastal carriers: Water carriers that provide service along coasts serving ports on the Atlantic or Pacific Oceans or on the Gulf of Mexico.    Coastwise Water transportation along the coast.    COD Abbreviation for: Collect (cash) on Delivery. Carried on Docket (pricing).    COFC Abbreviation for the Railway Service "Container On Flat Car."    COGS Cost of Goods Sold (see separate listing)    COGSA Carriage of Goods by Sea Act. U.S. federal codification passed in 1936 which standardizes carrier's liability under carrier's bill of lading. U.S. enactment of The Hague Rules.    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.    Collecting A bank that acts as an agent to the seller's bank (the presenting bank). The collecting bank assumes no responsibility for either the documents or the merchandise.    Collection A draft drawn on the buyer, usually accompanied by documents, with complete instructions concerning processing for payment or acceptance.    Collective Paper: All documents (commercial invoices, bills of lading, etc.) submitted to a buyer for the purpose of receiving payment for a shipment.    Combi Aircraft: An aircraft specially designed to carry unitized cargo loads on the upper deck of the craft, forward of the passenger area.    Combination Export Mgr. A firm that acts as an export sales agent for more than one noncompeting manufacturer.    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.    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.    commercial zone: The area surrounding a city or town to which rate carriers quote for the city or town also apply; the ICC defines the area.    Committee of American Steamship Lines: An industry association representing subsidized U.S. flag steamship firms.    commodities clause: A clause that prohibits railroads from hauling commodities that they produced, mined, owned, or had an interest in.    Commodities: Any article exchanged in trade, most commonly used to refer to raw materials and agricultural products.    Commodity in inventory management, the term Commodity has a couple of definitions. Standard products commonly available from various sources are often called "commodity items". Specialized or custom products not widely available or proprietary products only available from a small number of sources would not be considered commodity items. The term Commodity is also used to describe classifications of inventory. In this case, "commodity codes" are used to distinguish groups of inventory items to be used for reporting and analysis. Note that commodity classifications can be used to describe any inventory item and are not limited to items that fall under the previous definition of commodity items.    Article shipped. For dangerous and hazardous cargo, the correct commodity identification is critical.    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.    Commodity Rate A rate published to apply to a specific article or articles.    A rate for a specific commodity and its origin-destination.    Common Carrier A transportation company which provides service to the general public at published rates.    A for-hire carrier that holds itself out to transport goods and serve the general public at reasonable rates and without discrimination.    common carrier duties: Common carriers must serve, deliver, charge reasonable rates, and not discriminate.    common cost: A cost that a company cannot directly assign to particular segments of the business; a cost that the company incurs for the business as a whole.    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.    commuter: An exempt for-hire air carrier that publishes a time schedule on specific routes; a special type of air taxi.    comparative advantage: A principle based on the assumption that an area will specialize in producing goods for which it has the greatest advantage or the least comparative disadvantage.    Compliance labels standardized label formats used by trading partners.  Compliance labels are used as shipping labels, container/pallet labels, carton labels, or piece labels, and usually contain bar codes.  Many bar-code labeling software products now have the more common compliance label standards set up as templates.     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.    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.    Configuration processing software functionality that allows a product to be defined by a selecting various pre-defined options, rather than having every possible combination of options pre-defined as specific SKUs. Placing an order for a computer and specifying hard drive, processor, memory, graphics card, sound card, etc. would be an example of configuration processing.     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.    Conrail: The Consolidated Rail Corporation established by the Regional Reorganization Act of 1973 to operate the bankrupt Penn Central Railroad and other bankrupt railroads in the Northeast; the 4-R Act of 1976 provided funding.    CONSIGNEE A person or company to whom commodities are shipped.    The party to whom goods are shipped and delivered. The receiver of a freight shipment.    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 One or more items that a carrier has accepted for shipment at a given time.    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.    Consignment inventory inventory that is in the possession of the customer, but is still owned by the supplier. Consignment inventory is used as a marketing tool to make it easier for a customer to stock a specific supplier's inventory. Read my article on Consignment Inventory.    CONSIGNOR A person or company shown on the bill of lading as the shipper.    The party who originates a shipment of goods (shipper). The sender of a freight shipment, usually the seller.    Consolidation The combination of two or more consignments to create a more economical freight solution.    Combining two or more shipments in order to realize lower transportation rates. Inbound consolidation from vendors is called makebulk consolidation; outbound consolidation to customers is called breakbulk consolidation.    Consolidation centre A warehouse or distribution centre in which goods are assembled into larger units for onward distribution.    Consolidation Point: The location where consolidation takes place.    Collecting smaller shipments to form a larger quantity in order to realize lower transportation rates.    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.    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. See also House Air Waybill.    Construction Differential Subsidy A program whereby the U.S. government attempted to offset the higher shipbuilding cost in the U.S. by paying up to 50% of the difference between cost of U.S. and non_U.S. construction. The difference went to the U.S. shipyard. It is unfunded since 1982.    Consul A government official residing in a foreign country who represents the interests of her or his country and its nationals.    Consular Declaration A formal statement describing goods to be shipped; filed with and approved by the consul of the country of destination prior to shipment.    Consular Declaration: A formal statement made to the consul of a country describing merchandise to be shipped to that consul's country. Approval must be obtained prior to shipment.    Consular Documents: Special forms signed by the consul of a country to which cargo is destined.    Consular Invoice A document, certified by a consular official, is required by some countries to describe a shipment. Used by Customs of the foreign country, to verify the value, quantity and nature of the cargo.    A document, required by some foreign countries, describing a shipment of goods and showing information such as the consignor, consignee, and value of the shipment. Certified by a consular official of the foreign country, it is used by the country's custom    Consular Visa An official signature or seal affixed to certain documents by the consul of the country of destination.    Consumer goods products sold to non-business end users. Clothing, food, Music CDs, are examples of consumer goods.    Consumer Packaged Goods describes inventory that is in such a form that is ready for sale to consumers (end-users).    Consumption Entry (CE) The process of declaring the importation of foreign-made goods into the United States for use in the United States.    CONTAINER This term is associated with more than one definition: 1) anything in which goods are packed 2) a single rigid receptacle without wheels that is used for the transport of goods (a type of carrier equipment into which freight is loaded). 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.    although a container can be anything designed to hold (contain) materials for storage or transport, the most common definition for Container in logistics refers to the specific types of containers used for intermodal transportation, often referred to as "Ocean Containers".  Standard  external dimensions for containers are width of 8', height of 8' 6" or 9' 6" (High Cube), and lengths of 20', 40', 45' (deduct 4" from width, 9" from height and 7" to 9" from length to determine inside demensions).  More specs and info on containers at Seaboard Marine, Maersk Sealand, and a nice independent site  The Intermodal Container FAQ put out by a commercial photographer.    Container Booking Arrangements with a steamship line to transport containerized cargo.    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 (CFS): 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.    A type of steamship-line service in which cargo is transported between container freight stations, where containers may be stuffed, stripped, or consolidated. Usually used for less-than-container load shipments.    Container I.D.: An identifier assigned to a container by a carrier. See also Equipment ID.    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 on Flat Car (COFC): A carriage of intermodal containers detached from their chassis on rail flat cars.    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.    An area designated to be used for the stowage of cargo in containers that may be accessed by truck, rail, or ocean transportation.    Container Vessel: A vessel specifically designed for the carriage of containers.    Container Yard (CY) A materials_handling/storage facility used for completely unitized loads in containers and/or empty containers. Commonly referred to as CY.    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.    Container Yard to Container Yard (CY/CY): A type of steamship-line service in which freight is transported from origin container yard to destination container yard.    Containerizable Cargo Cargo that will fit into a container and result in an economical shipment.    Containerization from the JIT movement in manufacturing, containerization refers to using standardized containers for the storage and transport of materials within a manufacturing facility as well as between vendors and manufacturers.  Materials are ordered in multiples of the container quantity often using Kanban.  The benefits of containerization include reduced product damage, reduced waste (by using reusable containers), less handling, and greater levels of inventory accuracy by simplifying counting processes.    The technique of using a boxlike device in which a number of packages are stored, protected, and handled as a single unit in transit.    contingency planning: Preparing to deal with calamities (e.g., floods) and noncalamitous situations (e.g., strikes) before they occur.    Continuous Replenishment Planning (CRP) A program that triggers the manufacturing and movement of product through the supply chain when the identical product is purchased by an end user.    A system used to reduce customer inventories and improve service usually to large customers.    continuous-flow, fixed-path equipment: Materials handling devices that include conveyors and drag lines.    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.    A for-hire carrier that does not serve the general public but serves shippers with whom the carrier has a continuing contract. The contract carrier must secure a permit to operate.    Contract logistics The process of outsourcing product flow management, storage and related information transfer services, usually under long-term contract, with the objective of increasing efficiency and control.    Contract warehouse a contract warehouse is a business that handles shipping, receiving, and storage of products on a contract basis.  Contract warehouses will generally require a client to commit to a specific period of time (generally in years) for the services.  Contracts may or may not require clients to purchase or subsidize storage and material-handling equipment.  Fees for contract warehouses may be transaction and storage based, fixed, cost plus, or any combination.  Also see Public Warehouse and 3PL.    Control tower Bespoke packages of information services used to manage and control supply chain activities on behalf of customers and suppliers. Also known as logistics or transport control tower.    Controlled Atmosphere Sophisticated, computer_controlled systems that manage the mixtures of gases within a container throughout an intermodal journey reducing decay.    Conveyance: The application used to describe the function of a vehicle of transfer.    conveyor: A materials handling device that moves freight from one warehouse area to another. Roller conveyors utilize gravity, whereas belt conveyors use motors.    cooperative associations: Groups of firms or individuals having common interests; agricultural cooperative associations may haul up to 25 percent of their total interstate nonfarm, nonmember goods tonnage in movements incidental and necessary to their primary business.    coordinated transportation: Two or more carriers of different modes transporting a shipment.    Co-packing Contract packing. See packing.    Coproduct the term coproduct is used to describe multiple items that are produced simultaneously during a production run. Coproducts are often used to increase yields in cutting operations, such as die cutting or sawing, when it is found that scrap can be reduced by combining multiple sized products in a single production run. Coproducts are also used to reduce the frequency of machine setups required in these same types of operations. Coproducts, also known as byproducts, are also common in process manufacturing such as in chemical plants. Although the concept of coproducts is fairly simple, the programming logic required to provide for planning and processing of coproducts is very complicated and most off-the-shelf manufacturing software will have problems with coproduct processing.    CORBA: Common Object Request Broker Architecture.    Core Competency One of a company's primary functions which is considered essential to its success.    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 and Freight (C & F): The seller quotes a price that includes the cost of transportation to a specific point. The buyer assumes responsibility for loss and damage and pays for the insurance of the shipment.    Cost of Capital The cost to borrow or invest capital.    Cost of goods sold accounting term used to describe the total value (cost) of products sold during a specific time period.  Since inventory is an asset, it is not expensed when it is purchased or produced. It instead goes into an asset account (usually called Inventory).  When product is sold, the value of the product (the cost, not the sell price) is moved form the asset account to an expense account called cost of goods sold or COGS.  COGS appears on the profit-and-loss statement and is also used for calculating inventory turns.    cost of lost sales: The forgone profit companies associate with a stockout.    cost trade-off: The interrelationship among system variables in which a change in one variable affects other variables' costs. A cost reduction in one variable may increase costs for other variables, and vice versa.    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.    The price quote that the seller offers to the buyer, which includes cost of the goods, insurance of the goods, and transportation charges.    Costing method refers to the calculations used to determine inventory cost. See also Average Cost, Current Cost, Standard Cost, Actual Cost, Landed Cost, First-in-first-out, Last-in-last-out.    Council of Logistics Management (CLM): A professional organization in the logistics field that provides leadership in understanding the logistics process, awareness of career opportunities in logistics, and research that enhances customer value and supply chain performance.    Countertrade: A reciprocal trading agreement that includes a variety of transactions involving two or more parties.    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.    Special duties imposed on imports to offset the benefits of subsidies to producers or exporters of the exporting country.    Country of Destination: The country that will be the ultimate or final destination for goods.    Country of Origin: The country where the goods were manufactured.    courier service: A fast, door-to-door service for high-valued goods and documents; firms usually limit service to shipments weighing fifty pounds or less.    CPG Consumer Packaged Goods (see separate listing)    crane: A materials handling device that lifts heavy items. There are two types: bridge and stacker.    Credit Terms: The agreement between two or more enterprises concerning the amount and timing of payment for goods or services.    critical value analysis: A modified ABC analysis in which a company assigns a subjective critical value to each item in an inventory.    Cross Dock: An enterprise that provides services to transfer goods from one piece of transportation equipment to another.    Cross Member Transverse members fitted to the bottom side rails of a container, which support the floor.    Cross-belt sorter conveyor sorting system that uses a series of devices (carriers) mounted on a conveyor to sort materials. Each device has a small belt conveyor mounted on top of it that runs perpendicular to the direction of the main conveyor. When it arrives at a sort point, the conveyor on the carrier will spin, moving the materials to the side of the main conveyor (usually onto another conveyor, dropping down a chute, or into a container).    Cross-docking in its purest form cross-docking is the action of unloading materials from an incoming trailer or rail car and immediately loading these materials in outbound trailers or rail cars, thus eliminating the need for warehousing (storage).  In reality, pure cross-docking is rare outside of transportation hubs and hub-and-spoke type distribution networks.  Many "cross-docking" operations require large staging areas where inbound materials are sorted, consolidated, and stored until the outbound shipment is complete and ready to ship.  This staging may take hours, days, or even weeks in which case the "staging area" is essentially a "warehouse".    The direct flow of goods from receipt to shipping/delivery, bypassing storage. Used to reduce costs and lead times for fast-moving and perishable goods.    CRP Capacity requirements planning (see separate listing)    CSG: Communications Support Group.    Cu. An abbreviation for "Cubic." A unit of volume measurement.    Cube a measure of the volume of rectangular shaped three-dimensional objects or spaces. Cube is calculated my multiplying the length times the width times the height of the object or space.     Cube logic term used in Warehouse Management Systems.  Cube logic is often incorporated but seldom used in WMS systems because of its tendency to treat your product as liquid (fitting a round peg in a square hole). See article on Warehouse Management Systems.    Cube Out When a container or vessel has reached its volumetric capacity before its permitted weight limit.    The situation when a piece of equipment has reached its volumetric capacity before reaching the permitted weight limit.    Cube utilization in warehousing and logistics, cube utilization refers to the use of  space  within storage area,  trailer, or container. Cube utilization is generally calculated as a percentage of total space or of total "usable" space.    Cubed out describes a condition where all space in a trailer or container has been completely filled. The term "cubed out" is often used when you have completely filled the trailer or container but are still below the weight capacity. Also see Weighted out.    Cubic Capacity: The carrying capacity of a piece of equipment according to measurement in cubic feet.    Cubic Foot 1,728 cubic inches. A volume contained in a space measuring one foot high, one foot wide and one foot long.    Currency Adjustment Factor (CAF): A surcharge imposed by a carrier on ocean freight charges to offset foreign currency fluctuations.    Current cost inventory costing method that applies the cost of the most recent receipt to all inventory of a specific item.    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    Customer Service: The series of activities involved in providing the full range of services to customers:    Customer: An enterprise that uses the services as provided by another enterprise.    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.    The authorities designated to collect duties levied by a country on imports and exports.    Customs Bonded Warehouse A warehouse authorized by Customs to receive duty-free merchandise.    Customs Broker / Customhouse 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 broking The handling of customs formalities around the import and export of goods.    Customs Clearance: The act of obtaining permission to import merchandise from another country into the importing nation.    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. The importer's statement is compared against the carrier's vessel manifest to ensure that all foreign goods are properly declared.    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.    A document that contains a declaration by the seller, the shipper, or the agent as to the value of the shipment.    Customs of the Port A phrase often included in charter parties and freight contracts referring to local rules and practices which may impact upon the costs borne by the various parties.    Customs Value: The value of the imported goods on which duties will be assessed.    Cut-Off Time The latest time cargo may be delivered to a terminal for loading to a scheduled train or ship.    CWO: See Cash with Order.    CWT: The abbreviation for hundredweight, which is the equivalent of 100 pounds.    Hundred weight (United States, 100 pounds: U.K.,112)    CY Abbreviation for Container Yard.    CY/CY: See Container Yard to Container Yard.    Cycle count refers to process of regularly scheduled inventory counts (usually daily) that "cycles" through your inventory.  User determines how often certain items/locations are counted.  Read my article on Cycle Counting and check out my book on cycle counting..    cycle inventory: An inventory system where counts are performed continuously, often eliminating the need for an annual overall inventory. It is usually set up so that A items are counted regularly (i.e., every month), B items are counted semi-regularly (every quarter or six months), and C Items are counted perhaps only once a year.    Cycle Time The amount of time it takes to complete a business process.    The elapsed time between commencement and completion of a process.             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.    Dangerous Goods: Articles or substances capable of posing a significant risk to health, safety, or property, and that ordinarily require special attention when transported. See also Hazardous Goods.    Data collection See Automated Data Collection (ADC)     DC Distribution Center    DDC Abbreviation for "Destination Delivery Charge." A charge, based on container size, that is applied in many tariffs to cargo. This charge is considered accessorial and is added to the base ocean freight. This charge covers crane lifts off the vessel, drayage of the container within the terminal and gate fees at the terminal operation.    Deadhead One leg of a move without a paying cargo load. Usually refers to repositioning an empty piece of equipment.    Deadweight The number of tons of 2,240 pounds that a vessel can transport of cargo, stores and bunker fuel. It is the difference between the number of tons of water a vessel displaces "light" and the number of tons it displaces when submerged to the "load line."    Deadweight Cargo A long ton of cargo that can be stowed in less than 40 cubic feet.    decentralized authority: A situation in which a company management gives decision-making authority to managers at many organizational levels.    Decision Support System (DSS): A set of computer oriented tools designed to assist managers in making decisions.    Declaration of Dangerous Goods: To comply with the U.S. regulations, exporters are required to provide special notices to inland and ocean transport companies when goods are hazardous.    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.    Deconsolidation Point Place where loose or other non-containerized cargo is ungrouped for delivery.    Deconsolidator: An enterprise that provides services to un-group shipments, orders, goods, etc., to facilitate distribution.    Dedicated Contract Carriage    Defective goods inventory (DGI): Those items that have been returned, have been delivered damaged and have a freight claim outstanding, or have been damaged in some way during warehouse handling.    Deficit Weight The weight by which a shipment is less than the minimum weight.    Delivery Appointment: The time agreed upon between two enterprises for goods or transportation equipment to arrive at a selected location.    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.    A document issued to a carrier to pick up goods at a location and deliver them to another location. See also Delivery Order.    Delivery Order: A document issued by the customs broker to the ocean carrier as authority to release the cargo to the appropriate party.    Delta Nu Alpha: A  professional association of transportation and traffic practitioners.    Demand the need for a specific item in a specific quantity.  See Dependent Demand and Independent Demand.    Demand chain Another name for the supply chain, where the processes employed are viewed in terms of demand (pull) rather than supply (push). The demand chain is therefore driven by consumers and end-users, not manufacturers of goods. See also pull replenishment.    DEMDES Demurrage/Despatch money. (Under vessel chartering terms, the amount to be paid if the ship is loading/discharging slower/faster than foreseen.)    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.    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.    Dependent demand demand generated from scheduled production of other items.    Depot, Container Container freight station or a designated area where empty containers can be picked up or dropped off.    Deregulation: Revisions or complete elimination of economic regulations controlling transportation. The Motor Carrier Act of 1980 and the Staggers Act of 1980 revised the economic controls over motor carriers and railroads, and the Airline Deregulation Act of 1978 eliminated economic controls over air carriers.    Derived demand: The demand for a product's transportation is derived from the product's demand at some location.    Despatch An incentive payment paid to a carrier to loading and unloading the cargo faster than agreed. Usually negotiated only in charter parties.    Destination the place where carrier actually turns over cargo to consignee or his agent.    The location designated as a receipt point for goods/shipment.    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.    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 a container or cargo van.    The unloading of cargo from a container or other piece of equipment. See Stripping.    DF Car Damage_Free Car. Boxcars equipped with special bracing material.    DFZ: See Duty Free Zone.    Differential An amount added or deducted from base rate to make a rate to or from some other point or via another route.    A discount offered by a carrier that faces a service time disadvantage over a route.    Dim weight see Dimensional weight    Dimensional weight formula used to determine freight charges when the minimum weight to volume ratio has not been met.  Actual weight and dim weight are compared, and the larger weight is used for the freight calculation.  Dim weight is calculated by:  Dim weight= (Length x Width x Height)/194 .  All dimensional measurements are in inches.  a.k.a. Dim weight    Direct product profitability (DPP): Calculation of the net profit contribution attributable to a specific product or product line.    Direct ship direct shipping and drop shipping are two terms generally used interchangeably. They describe a process whereby three parties interact with the sales transaction (the buyer, the seller, and the supplier). The buyer initiates a purchase from the seller, who then arranges with the supplier to ship the product directly to the buyer. The seller does not carry inventory of the product and the supplier does not have any direct communication with the buyer. The buyer pays the seller and the seller pays the supplier. Though both terms (direct ship and drop ship) are generally used to describe the same process, I've always considered a small distinction between the two that relates to where you are in the supply chain. To the seller, direct shipping describes both the process and an inventory/sales strategy, however, the supplier will frequently just use the term "drop ship" to describe the process whereby he is shipping the product to an address other than that of his customer (the business that is paying him for the product). Sometimes the term drop ship also describes the process of shipping to any location that is different from the customer's normal shipping location. This subtle distinction is sometimes evident in the terminology used in software documentation. Direct shipment, Drop shipment.    Direct store delivery (DSD): A logistics strategy to improve services and lower warehouse inventories.    DISA: Data Interchange Standards Association.    Discharge Port: The name of the port where the cargo is unloaded from the export vessel. This is the port reported to the U.S. Census on the Shipper's Export Declaration, Schedule K, which is used by U.S. companies when exporting. This can also be considered the first discharge port.    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.    Discrete manufacturing describes manufacturing of distinct items (items you can easily count, touch, see) such as a pencil, a light bulb, a telephone, a bicycle, a fuel pump, etc.  Discrete as opposed to Process manufacturing.  Also see Process Manufacturing.    Dispatching: The carrier activities involved with controlling equipment; involves arranging for fuel, drivers, crews, equipment, and terminal space.    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.    Distribution The process of storing and transporting finished goods between the end of the production line and the final customer.    describes the process of storing, shipping, and transporting goods. Also describes the facilities (distribution operations, distribution centers) that conduct these activities. In statistical analysis, describes the measurement of a group of events or occurrences (see Normal distribution).    Distribution centre (DC) A facility that accepts inbound consignments of raw materials, components or finished goods, divides and then recombines them in different ways into outbound shipments. Many DCs also contain specialised handling/storage equipment and IT systems and also serve as warehouses. Also: regional DC (or RDC), national DC (or NDC) and international DC (or IDC).    Distribution Channel Management: The organizational and pipeline strategy for getting products to customers. Direct channels involve company sales forces, facilities, and/or direct shipments to customers; indirect channels involve the use of wholesalers, distributors, and/or other parties to supply the products to customers. Many companies use both strategies, depending on markets and effectiveness.    Distribution Channel: The route by which a company distributes goods.    Distribution requirements planning process for determining inventory requirements in a multiple plant/warehouse environment. DRP may be used for both distribution and manufacturing.  In manufacturing, DRP will work directly with MRP. DRP may also be defined as Distribution Resource Planning which also includes determining labor, equipment, and warehouse space requirements.    A computer system that uses MRP techniques to manage the entire distribution network and to link it with manufacturing planning and control.    Distribution warehouse: A finished goods warehouse from which a company assembles customer orders.    Distributor: An enterprise that offers services to buy and sell goods on their own account.    Diversion A change made either in the route of a shipment in transit (see Reconsignment) or of the entire ship.    The process of changing the destination and/or the consignee while the shipment is enroute.    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 leveler device that provides a bridge to the trailer as well as a ramp to facilitate the transition in height from dock to trailer. Dock levelers are rated by weight capacity and by the service range. The service range, also known as the height differential, rates the safe range above and below dock level you can use the leveler to transition to the trailer height. See also article Dock Safety    Dock Receipt A form used to acknowledge receipt of cargo and often serves as basis for preparation of the ocean bill of lading.    A document used to accept materials or equipment at an ocean pier or accepted location. Provides the ocean carrier with verification of receipt and the delivering carrier with proof of delivery.    Docket Present a rate proposal to a conference meeting for adoption as a conference group rate.    Documentation: The papers attached or pertaining to goods requiring transportation and/or transfer of ownership.    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.    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.    Domestic trunk line carrier: A classification for air carriers that operate between major population centers. These carriers are now classified as major carriers.    Door to Door: The through-transport of goods from consignor to consignee.    Through transportation of a container and its contents from consignor to consignee. Also known as House to House. Not necessarily a through rate.    Door to Port:  The through transport service from consignor to port of importation.    Double bottoms: A motor carrier operation that involves one tractor pulling two trailers.    Double-deep rack a type of pallet rack designed to be used with double-deep reach trucks that allow storage of palletized loads 2-deep in rack. Double-deep rack may be a unique design (designed specifically for double-deep storage) or may just be a double-deep configuration of standard selective pallet rack. Also see Reach truck and check out article on Aisle Widths.    Double-pallet jack: A mechanized device for transporting two standard pallets simultaneously.    Download: To merge temporary files containing a day's or week's worth of information with the main data base in order to update it.    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.    See Duty Drawback.    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.    The service offered by a motor carrier for pick-up and delivery of ocean containers or rail containers. Drayage agents usually handle full-load containers for ocean and rail carriers.    DRFS Abbreviation for "Destination Rail Freight Station." Same as CFS at destination, except a DRFS is operated by the rail carrier participating in the shipment.    Drive-in rack racking system designed to allow a lift truck to drive into the bay creating very high density storage for non-stackable loads.  Useful for operations with limited SKUs and high quantities of pallets per SKU.  FIFO is difficult to maintain in drive-in racking systems.  a.k.a. Drive-thru Rack. Also see Racking Pics Page.    Driving time regulations: U.S. Department of Transportation rules that limit the maximum time a driver may drive in interstate commerce; the rules prescribe both daily and weekly maximums.    Drop ship see Direct ship.    Drop shipment The direct shipment of goods from a manufacturer to a dealer or consumer, bypassing the wholesaler.    A request for the goods to go to the retailer directly from the manufacturer when the invoice comes from another party in the transaction, typically the distributor from whom the retailer would normally receive the goods.    Drop: A situation in which an equipment operator deposits a trailer or boxcar at a facility at which it is to be loaded or unloaded.    DRP Distribution requirements planning (see separate listing)    Drum-handling attachments describes the various designs of lift-truck attachment used to handle 55 gallon drums.  Some are smaller versions of a paper roll clamp while others may engage the upper rim of the drum, or the lower rings.  Some drum attachments are capable of picking up multiple drums at the same time.    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.    DSS: See Decision Support System    DSU Delay in Startup Insurance is a policy to protect the seller of a construction project from penalties if the project is not completed on time. See "Liquidated Damages."    Dual operation: A motor carrier that has both common and contract carrier operating authority.    Dual rate system: An international water carrier pricing system in which a shipper signing an exclusive use agreement with the conference pays a rate 10 to 15 percent lower than nonsigning shippers do for an identical shipment.    Dumping Attempting to import merchandise into a country at a price less than the fair market value, usually through subsidy by exporting country.    When a product is sold below cost in a foreign market and/or when a product is sold at a lower price in the foreign market than in a domestic market, with the intention of driving out competition in the foreign market.    Dunnage fill material. Types of dunnage include loose fill (packing peanuts), papar, bubble wrap, foam, and air pillows.    DUNS Number: A coded, numerical representation assigned to a specific company (USA).    Duty Drawback: A refund of duty paid on imported merchandise when it is exported later, whether in the same or a different form.    Duty Free Zone (DFZ): An area where goods or cargo can be stored without paying import customs duties while awaiting manufacturing or future transport.    Duty: A tax imposed by a government on merchandise imported from another country.    Dynamic slotting this is a term sometimes used by WMS providers to describe a higher level of slotting functionality. Unfortunately, there is not a standard definition for this, but it usually refers to the ability to change slotting recommendations as item profiles, order profiles, or other operational characteristics change.             E E.C.M.C.A. Eastern Central Motor Carriers Association.    E.T.A.: The Estimated Time of Arrival.    E.T.D.: The Estimated Time of Departure.    E.W.I.B. Eastern Weighing and Inspection Bureau.    Economic Order Quantity (EOQ) An inventory model that determines how much to order by determining the amount that will meet customer service levels while minimizing total ordering and holding costs.    result of a calculation that determines the most cost effective quantity to order (purchased items) or produce (manufactured items).  The formula basically finds the point at which the combination of order cost and carrying cost is the least.  The standard formula is EOQ = Square Root [2 * (Annual Usage) * (Order Cost) / (Annual Carrying Cost/unit)].  The difficult part of implementing the formula is getting accurate values for order cost and carrying cost.  See my article Optimizing EOQ for more info.     Economic Value Added (EVA) A measurement of shareholder value as a company's operating profits after tax, less an appropriate charge for the capital used in creating the profits.    Economy of Scale: The lowering of costs with added output due to allocation of fixed costs over more units.    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.    EDI (Electronic Data Interchange) - The paperless exchange of standard business transactions or information by electronic computer-to-computer transfer, generally requiring little or no human intervention.    Computer-to-computer communication between two or more companies that such companies can use to generate bills of lading, purchase orders, and invoices.  It also enables firms to access the information systems of suppliers,    EDI Interchange: Communication between partners in the form of a structured set of messages and service segments starting with an interchange control header and ending with an interchange control trailer. In the context of X.400 EDI messaging, the contents of the primary body of an EDI message.    EDIFACT International data interchange standards sponsored by the United Nations. See UN/EDIFACT.    EDI for Administration Commerce and Transport.    Effective lead time effective lead time represents a period of time that includes the lead time (see Lead time), plus additional time factors that may occur between the time the need for an order in known, and the inventory is in stock and available. For example, a fixed ordering schedule (orders are only placed on specific days for specific vendors) may add some time to the lead time, as may some internal processing.    Efficient Consumer Response (ECR) A demand driven replenishment system designed to link all parties in the logistics channel to create a massive flow-through distribution network. Replenishment is based upon consumer demand and point of sale information.    A customer-driven system where distributors and suppliers work together as business allies to maximize consumer satisfaction and minimize cost.    Electronic product code EPC is the RFID version of the UPC barcode. EPC is intended to be used for specific product identification. However, EPC goes beyond UPC by not only identifying the product as an SKU, but also providing access to additional data about the origin and history of the specific units. The EPC tag itself identifies the manufacturer, product, version, and serial number. It's the serial number that takes EPC to the next level. This is the key to data related to specific lots/batches as well as potentially tracking the specific unit's history as it moves through the supply chain. This data is stored somewhere else (the internet or other network) but a standardized architecture allows you to access the data much like you would access a web page (though this would be happening automatically behind the scenes). See my article on RFID for more info.    Elevating charges assessed for the handling of grain through grain elevators.    Elkins Act An act of Congress (1903) prohibiting rebates, concession, misbilling, etc. and providing specific penalties for such violations.    Embargo Order to restrict the hauling of freight.    A prohibition upon exports or imports, either with specific products or specific countries.    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.    End User: The final buyer of the product who purchases the product for immediate use.    End-of-life (EOL) Goods that have reached the end of their operational or shelf life. Can include obsolete items or products that cannot be repaired.    Endorsement A legal signature usually placed on the reverse of a draft; signifies transfer of rights from the holder to another party.    Enroute: A term used for goods in transit or on the way to a destination.    Enterprise resource planning describes software systems designed to manage most or all aspects of a manufacturing or distribution enterprise (an expanded version of MRP systems).  ERP systems are usually broken down into modules such as Financials, Sales, Purchasing, Inventory Management, Manufacturing, MRP, DRP.  The modules are designed to work seamlessly with the rest of the system and should provide a consistent user interface between them. These systems usually have extensive set-up options that allow you to customize their functionality to your specific business needs.  Unfortunately, in the real world, ERP systems rarely are sufficient to meet all business needs and a myriad of other software packages such as Customer Relationship Management (CRM), Manufacturing Execution Systems (MES), Advanced Planning and Scheduling (APS), Warehouse Management Systems (WMS) and Transportation Management Systems (TMS) are being sold to make up for these deficiencies.    A cross-functional/regional planning process supporting regional forecasting, distribution planning, operations centers planning, and other planning activities. ERP provides the means to plan, analyze, and monitor the flow of demand/supply alignment and to allocate critical resources to support the business plan.    Entry Customs documents required to clear an import shipment for entry into the general commerce of a country.    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.    EOQ Economic order quantity (see separate listing).    EPC Electronic product code (see separate listing)    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 I.D.: An identifier assigned by the carrier to a piece of equipment. See also Container ID.    Equipment Interchange Receipt (EIR) A document transferring a container from one carrier to another, or to/from a terminal.    Equipment Positioning: The process of placing equipment at a selected location.    Equipment: The rolling stock carriers use to facilitate the transportation services that they provide, including containers, trucks, chassis, vessels, and airplanes, among others.    ERP Enterprise resource planning (see separate listing)    ESFR Early suppression fast response.  Sprinkler system technology that executes faster and with a substantially greater volume of water.  ESFR sprinklers may eliminate the need for in-rack sprinkler systems in many warehouses, thus reducing the cost of installation and, more importantly, the risk of water damage caused by damage to in-rack sprinklers.  Retrofitting ESFR into older warehouses is not always feasible due to limited water pressure in old systems.    ETA Estimated time of arrival.    Ethylene A gas produced by many fruits and vegetables that accelerates the ripening and aging processes.    Event management software functionality that triggers specific actions based upon the occurrence of a specific event or combination of events. This is another one of those terms used primarily by software vendors and consultants to push "new" technology. In reality, business software has been providing event-management functionality for years. If inventory dropping below a predetermined level (reorder point) triggers a message to a planner (or even a listing on a reorder report), this is essentially event management.    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.    Ex Dec Contraction for "Shipper's Export Declaration."    Ex Works: The price that the seller quotes applies only at the point of origin. The buyer takes possession of the shipment at the point of origin and bears all costs and risks associated with transporting the goods to the destination.    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.    Exception Rate: A deviation from the class rate; changes (exceptions) made to the classification.    Excess Inventory inventory quantities above a specific need. Some businesses may designate excess inventory as inventory beyond a certain time period of demand. For example, any inventory greater than 60 day's demand. Others may designate it as inventory beyond their current safety stock plus lot size (order quantity). The second method assumes you have formulas for adjusting safety stock and lot sizes as demand changes. This method basically calculates how much more inventory you have than you would have if you started with nothing and stocked based on current demand and ordering practices.  You will generally use tolerances with the 2nd method. See also Obsolete Inventory    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.    Exclusive Use: Vehicles that a carrier assigns to a specific shipper for its exclusive use.    Exempt Carrier: A for-hire carrier that is exempt from economic regulations.    EXIM Bank Abbreviation for Export-Import Bank of the United States. An independent U.S. Government Agency which facilitates exports of U.S. goods by providing loan guarantees and insurance for repayment of bank-provided export credit.    Expediting: Determining where an in-transit shipment is and attempting to speed up its delivery.    Expert System: A computer program that mimics a human expert.    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.    Explosion-proof lift trucks lift trucks designed to work in hazardous environments where highly combustible materials are present. Vehicles are designed to avoid sparks and components reaching combustible temperatures. Special electrical systems and materials are used to achieve this.    Export Shipment of goods to a foreign country.    To send goods and services to another country.    Export Broker: An enterprise that brings together buyer and seller for a fee, then eventually withdraws from the transaction.    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.    A document required by the U.S. Treasury department and completed by the exporter to show the value, weight, consignee, destination, etc., pertinent to the export shipment. The document serves two purposes: to gather trade statistics and to provide a control document if the goods require a valid export license.    Export License A government document which permits the "Licensee" to engage in the export of designated goods to certain destinations.    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 Management Company: A private firm that serves as the export department for several manufacturers, soliciting and transacting export business on behalf of its clients in return for a commission, salary, or a retainer plus commission.    Export Rate A rate published on traffic moving from an interior point to a port for transshipment to a foreign country.    Export Sales Contract: The initial document in any international transaction; it details the specifics of the sales agreement between the buyer and seller.    Export Trading Company: A firm that buys domestic products for sale overseas. A trading company takes title to the goods; an export-management company usually does not.    Exporter Identification Number (EIN): A number required for the exporter on the Shipper's Export Declaration. A corporation may use their Federal Employer Identification Number as issued by the IRS; individuals can use their Social Security Numbers.    Extrusion generally describes an item made of metal or plastic that is produced by forcing the raw material through a die (extruding). The result being a long item with a uniform shape throughout the length. Extrusions will often (though not always) require cutting and other machining processes to turn them into a finished item.             F F.D.A. Food and Drug Administration.    F.O.B.: A term of sale defining who is to incur transportation charges for the shipment, who is to control the shipment movement, or where title to the goods passes to the buyer; originally meant "free on board ship."    F.P.A. See "Free of Particular Average."    Factor A factor is an agent who will, at a discount (usually five to 8% of the gross), buy receivables.    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.    FAK Abbreviation for "Freight All Kinds." Usually refers to full container loads of mixed shipments.    False Billing Misrepresenting freight or weight on shipping documents.    FAS Abbreviation for "Free Alongside Ship."    Fast Charging Method for quickly recharging lift truck batteries on the vehicle during short periods where the vehicle is not being used (lunches, breaks, shift changes, etc). This process for "opportunity charging" eliminates the need to change batteries in multi-shift operations. Fast charging requires special chargers (called fast chargers). Fast chargers are significantly more expensive than standard battery chargers and there is still debate as to whether or not fast charging causes any harm to the batteries. The cost of the fast chargers can be offset by labor and equipment savings related to the elimination of changing batteries.    Fast Moving Consumer Goods (FMCG) description of common high volume products such as food, hygiene product, or cleaning supplies. These would be products that the average consumer would frequently purchase such as soda, toothpaste, or dish soap.    FCL OR FULL CONTAINER LOAD Sole use of a steamship metal container. Normally come in 20ft or 40ft lengths. Can be loaded and sealed at or near your residence. (subject to access) and after Customs clearance at destination may be delivered direct to your residence for unloading (subject to local Customs / Agricultural laws).    FD Abbreviation for "Free Discharge."    Federal Aviation Administration: The federal agency that administers federal safety regulations governing air transportation.    Federal Maritime Commission: Regulatory agency responsible for rates and practices of ocean carriers shipping to and from the United States.    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.    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.    Forty-foot equivalent unit, a standard size intermodal container.    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.    FIFO First-in-first-out.  In warehousing describes the method of rotating inventory to used oldest product first.  Actually an accounting term used to describe an inventory costing method.  See  LIFO    Fifth Wheel The semi-circular steel coupling device mounted on a tractor which engages and locks with a chassis semi-trailer.    Fill rate Sales order processing measurement that quantifies the ability to fill orders.There are various ways of measuring fill rate.  Line fill compares the number of line items shipped complete to the total number of lines ordered ( 95 line items shipped complete out of 100 lines ordered would result in a 95% line fill rate). Order fill compares the number of orders shipped complete to the total number of orders shipped. Other examples of fill rates would include dollar fill rate (comparing dollars shipped to dollars ordered), unit fill rate (comparing units shipped to units ordered). In fulfillment operations and some distribution operations where orders are generally shipped within 24 hours of receipt of order, fill rates reflect the ability to immediately ship from stock. In manufacturing operations and distribution operations that have lead-times for products, fill rates reflect the ability to ship to an agreed-to date. In these environments fill rate measurements are sometimes called On-time-and-Complete (OTC)  or On-time Delivery (OTD) measurement. Tolerances are sometimes used in fill rate measurements to allow lines or orders that are not shipped complete but are within the tolerance to be considered as "shipped complete". The tolerances may be based on units, dollars, lines, or dates (shipped within certain tolerance of required date).    The percentage of order items that the picking operation actually fills within a given period of time.    Final Destination: The last stopping point for a shipment.    Finance Lease: An equipment-leasing arrangement that provides the lessee with a means of financing for the leased equipment; a common method for leasing motor carrier trailers.    Financial Responsibility: Motor carriers must have bodily injury and property damage (not cargo) insurance of not less than $500,000 per incident per vehicle; higher financial responsibility limits apply for motor carriers transporting oil or hazardous materials.    Finished Goods Inventory (FGI) Products completely manufactured, packaged, stored, and ready for distribution.    FIO See Free In and Out.    FIPS: Federal Information Processing Standards.    Firkin A capacity measurement equal to one-fourth of a barrel.    Firm Planned Order: In a DRP or MRP system, a planned order whose status has been updated to a fixed order.    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.    Costs which do not fluctuate with 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.    Flat Car A rail car without a roof and walls.    A railcar without sides, used for hauling machinery.    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.    Flex conveyor portable conveyor that can be expanded, contracted, and flexed around curves. See Conveyer Pics.    Flexible-Path Equipment: Materials handling devices that include hand trucks and forklifts.    Flight Number: An identifier associated with the air equipment (plane). Typically a combination of two letters, indicating the airline, and three or four digits indicating the number of the voyage.    Floor load a method of loading trucks, trailers, or containers where you load the goods directly on the floor rather than using pallets or other containers. Floor loading tends to be very labor intensive, but provides the greatest opportunity for utilizing the full cube of the truck, trailer, or container.    Flow rack racking system that incorporates sections of conveyor to allow the cartons or pallets to flow to the face of the rack.  Stocking is performed from the rear of the rack. Also see Racking Pics Page.    Flow Rack: A storage method where product is presented to picking operations at one end of a rack and replenished from the opposite end.    Flue space See Longitudinal flue space and Transverse flue space.    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.    FMCG Fast Moving Consumer Goods (see separate listing)    FOB (Free On Board) An International Term of Sale that means the seller fulfills his or her obligation to deliver when the goods have passed over the ship's rail at the named port of shipment. This means that the buyer has to bear all costs and risks to loss of or damage to the goods from that point. The FOB term requires the seller to clear the goods for export.    Contractual terms between a buyer and a seller which define where title transfer takes place.    FOB Destination Title passes at destination, and seller has total responsibility until shipment is delivered.    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.    FOB named point of Exportation seller is responsible FOR the cost of placing the goods at A named point of exportation. Some European buyers use This Form when they actually mean FOB vessel.    FOB Origin Title passes at origin, and buyer has total responsibility over the goods while in shipment.    FOB vessel seller is responsible FOR goods and preparation of export documentation until actually placed aboard the vessel.    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.    Fore and Aft The direction on a vessel parallel to the center line.    Forecast consumption describes the method(s) your inventory management software uses to reduce forecasted demand by the actual demand that occurs during the forecast period.  Incorrectly set up forecast consumption parameters or lack of functionality related to forecast consumption can often create serious problems with planning systems.    Forecast error the difference between the forecast quantity for a period and the actual demand experienced during that period. Forecast error is calculated after the period has passed and is used to evaluate the forecast and make adjustments.    Forecast  A Forecast is an estimation of future demand.  Most forecasts use historical demand to calculate future demand.  Adjustments for seasonality and trend are often necessary.    Foreign Sales Corporation Under U.S. tax law, a corporation created to obtain tax exemption on part of the earnings of U.S. products in foreign markets. Must be set-up as a foreign corporation with an office outside the USA.    Foreign Trade Zone (FTZ) An area or zone set aside at or near a port or airport, under the control of the U.S. Customs Service, for holding goods duty-free pending customs clearance.    A site sanctioned by the U.S. Customs Service in which imported goods are exempted from duties until withdrawn for domestic sale or use. Such zones are used by commercial warehouses or assembly plants.    Forging generally describes an unfinished item made of metal that is produced through a process that heats the metal (not to melting point) then uses pressure or hammering to change the shape of the metal into a shape that closely resembles the finished item that will ultimately be made (through machining processes) from the forging.    For-Hire Carrier: A carrier that provides transportation service to the public on a fee basis.    Fork Lift A machine used to pick up and move goods loaded on pallets or skids.    Fork positioner lift truck attachments that allow the operator to adjust the distance between the forks without getting off of the truck.  Used primarily in high volume operations where there is a great variety of pallet and crate sizes handled.    Forklift a.k.a Fork Lift.  See Lift Trucks.    Forklift Truck: A machine-powered device used to raise and lower freight and to move freight to different warehouse locations.    Forklift-free plants a strategy to eliminate or reduce forklift use in operations. Used mainly in manufacturing operations, forklift-free usually involves finding ways to eliminate forklift use in specific areas (mainly the production areas). A key benefit is the safety of workers, but other benefits such as better space utilization and reduction of costs associated with lift trucks may also be factors.    Form Utility: The value the production process creates in a good by changing the item's form.    Forwarder Compensation See Brokerage.    Forwarder's Bill of Lading: See Consolidator's Bill of Lading.    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.    FPA: Free of Particular Average. See Marine Cargo Insurance.    Free Along Side (FAS): The seller agrees to deliver the goods to the dock alongside the overseas vessel that is to carry the shipment. The seller pays the cost of getting the shipment to the dock; the buyer contracts the carrier, obtains documentation, and assumes all responsibility from that point forward.    Free Astray An astray shipment (a lost shipment that is found) sent to its proper destination without additional charge.    Free In and Out (FIO) Cost of loading and unloading a vessel is borne by the charterer/shipper.    Free of Particular Average (FPA) A marine insurance term meaning that the assurer will not allow payment for partial loss or damage to cargo shipments except in certain circumstances, such as stranding, sinking, collision or fire.    Free on Board (F.O.B.) (exchange point): This expression follows an exchange point. The exchange point indicates the transition of responsibility (risk) from the buyer to the seller. See also Terms of Sale. For example: F.O.B. Origin The seller agrees to deliver the goods to the point of origin.    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 Out (FO) Cost of unloading a vessel is borne by the charterer.    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.)    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.    A commercial or industrial area usually near a port of entry where merchandise and raw material imports are not subject to customs charges or duties.    Freight Refers to either the cargo carried or the charges assessed for carriage of the cargo.    Freight Alongside Ship: The point of embarkment chosen by the buyer, from where a carrier transports goods. Under this designation, a seller is obligated to pay the cost and assume all risks for transporting goods from a place of business to the FAS point.    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.    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 A person or company involved in the collection, consolidation, shipping and distribution of goods from overseas territories. Typically, freight forwarders clear freight through customs, prepare documents and arrange shipping, warehousing and delivery.    A person whose business is to act as an agent on behalf of the shipper. A freight forwarder frequently makes the booking reservation.    Freight Forwarders Institute: The freight forwarder industry association.    Freight management The management of third-party carriers to ensure the swift, safe and cost-efficient delivery of shipments - often involving the integration of a range of services.    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.    Freight-All-Kinds (FAK): An approach to rate making whereby the ante is based only upon the shipment weight and distance; widely used in TOFC service.    Freighters See Ships.    FTL: See Full Truck Load.    FTZ Foreign Trade Zone (also known as Free Trade Zone), is similar to a Bonded Warehouse in that it has a special status that allows products to be imported into it without taxes or duties being paid. However, a Foreign Trade Zone actually has less restrictions placed upon it than a standard bonded warehouse and activities such as manufacturing can occur within an FTZ. Here is a nice link to a site that explains these difference in greater detail http://www.inzone.org/?§ion=basics&subsection=bonded . Also see Bonded Warehouse    Fulfillment the activity of processing customer shipments. Though most manufacturig and warehouse operations will process customer shipments, this term usually refers to  operations that ship  many small orders (usually parcels) to end users as opposed to operations that process larger shipments to other manufacturers, wholesalers, or resellers. Examples of fulfillment operations would include operations that process shipments for mail-order catalogs, internet stores, or repair parts.    Full Container Load (FCL): A term used when goods occupy a whole container.    Full Truck Load (FTL):  Same as Full Container Load, but in reference to motor carriage instead of containers.    Where goods being shipped occupy a complete truck.    Full-Service Leasing An equipment-leasing arrangement that includes a variety of services to support leased equipment (i.e., motor carrier tractors).    Full-time Connection: A communication link between two (or more) entities which is normally maintained continuously.    Fully Allocated Cost: The variable cost associated with a particular output unit plus a common cost allocation.             G Garments on hangers (GOH) Transport and storage of garments in hanging format, minimising handling and pre-retailing requirements.    Gateway Industry-related: A point at which freight moving from one territory to another is interchanged between transportation lines.    Gathering Lines: Oil pipelines that bring oil from the oil well to storage areas.    GATT Abbreviation for "General Agreement on Tariffs and Trade." A multilateral treaty to help reduce trade barriers between the signatory countries and to promote trade through tariff concessions. The World Trade Organization (WTO) superseded GATT in 1994.    See General Agreement on Tariffs and Trade.    Gaylord a large corrugated container usually sized to match the length and width dimensions of a pallet.  Gaylord is actually a trade name that has become synonymous with this specific type of container. Alright Beavis, you can stop snickering now.    GB/L: See Government Bill of Lading.    GBL Abbreviation for "Government Bill of Lading."    GDSM Abbreviation for "General Department Store Merchandise." A classification of commodities that includes goods generally shipped by mass-merchandise companies. This commodity structure occurs only in service contracts.    General Agreement on Tariffs and Trade (GATT): A multilateral trade agreement aimed at expanding international trade as a means of raising world welfare.    General Average: See Marine Cargo Insurance.    General Order (G.O.) When U.S. Customs orders shipments without entries to be kept in their custody in a bonded warehouse.    A customs term referring to a warehouse where merchandise not entered within five working days after the carrier's arrival is stored at the risk and expense of the importer.    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.    Generator Set (Gen Set) A portable generator which can be attached to a refrigerated container to power the refrigeration unit during transit.    Globalisation The internationalisation of trade, by which domestic economies become inter-dependent.    The process of making something worldwide in scope or application.    GMA pallet Also known as a Grocery Pallet, a GMA pallet is made to the specifications of the Grocery Manufacturer's Association. It is basically a 4-way pallet that is 40 inches wide, by 48 inches deep, by 5 inches in height and has the deck boards and bottom boards mounted flush with with the outside stringers (more detailed specs are available from the Grocery Manufacturer's Association).  Also see Pallet    GO: See General Order.    Go-Down In the Far East, a warehouse where goods are stored and delivered.    Going-Concern Value: The value that a firm has as an entity, as opposed to the sum of the values of each of its parts taken separately; particularly important in determining a reasonable railroad rate.    Gondola: A railcar with a flat platform and sides three to five feet high, used for top loading long, heavy items.    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.    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.    Government Bill of Lading (GB/L): The bill of lading used for shipments made by U.S. Government agencies.    Grandfather Clause: A provision that enabled motor carriers engaged in lawful trucking operations before the passage of the Motor Carrier Act of 1935 to secure common carrier authority w/o proving public convenience and necessity; a similar provision exists for other modes.    Granger Laws: State laws passed before 1870 in midwestern states to control rail transportation.    Gravity conveyor types of conveyor that use gravity to move materials. Skatewheel conveyer and roller conveyor are the most common types of gravity conveyor used, however, even a simple steel chute is essentially a gravity conveyor.    Great Lakes carriers: Water carriers that operate on the five Great Lakes.    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.    Grid Technique: A quantitative technique to determine the least-cost center, given raw materials sources and markers, for locating a plant or warehouse.    GROII Gross Margin Return on Inventory Investment. Calculation that shows your margin relative to your average inventory investment. Calculated by dividing your annual gross margin (dollars) by your average inventory (dollars). Particularly useful in determining which items provide the greatest profit potential relative to your investment in inventory. As with all calculations that use "gross margin" as an input, the output may be flawed if other costs not included in the gross calculation may vary significantly from one item to another.    Gross National Product (GNP): A measure of a nation's output; the total value of all final goods and services a nation produces during a time period.    Gross Tonnage (GT) Applies to vessels, not to cargo, (0.2+0.02 log10V) where V is the volume in cubic meters of all enclosed spaces on the vessel.    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.    The total weight of the vehicle and the payload of freight or passengers.    Groupage A consolidation service, putting small shipments into containers for shipment.    GROUPAGE OR CONSOLIDATED For use with smaller shipments. Freight delivers to a warehouse for consolidation with other freight moving to the same destination. The container is dispatched to the port as soon as there are enough consignments to fill the container. A very cost effective way to ship small to medium size shipments but will take longer than LCL shipments.    GTDI:  European Guidelines for Trade Data Interchange.    Guaranteed Loans: Railroad loans that the federal government cosigns and guarantees.    GUI: Graphical User Interface.    Guidance systems guidance systems are used to guide automated guided vehicles through plants, guide lift trucks in very-narrow-aisle storage areas. Wire-guided and Rail-guided tend to be the most common guidance systems, but others including laser, optical systems, and magnetic tape are also available. See also Wire-guided, Rail-guided, Laser-guided, Optical-guided.    GVW Abbreviation for "Gross Vehicle Weight." The combined total weight of a vehicle and its container, inclusive of prime mover.