"Custom Search Engines for the Transportation Industry"

 

Infinite Menus, Copyright 2006, OpenCube Inc. All Rights Reserved.

 

Ad Space Available - Sponsored by - Ad Space Available

Freight Terms 101

 

<A> <B> <C> <D> <E> <F> <G> <H> <I> <J> <K> <L> <M> <N> <O> <P> <Q> <R> <S> <T> <U> <V> <W> <X> <Y> <Z>

 

[A]

 

Abatement

 

A discount allowed for damage or overcharge in the payment of a bill.

 

Accessorial Charges

 

Charges that are applied to the base tariff rate or base contract rate, e.g., bunkers, container, currency, and destination/delivery.

 

Accessorial

 

A service that is not considered ‘standard’ will incur additional fees. Accessorial charges may include, but are not limited to: arrival notification, inside delivery, insurance, liftgate service, COD, hazardous materials, fuel surcharge

 

Acquiescence

 

When a bill of lading is accepted or signed by a shipper or shipper's agent without protest, the shipper is said to acquiesce to the terms, giving a silent form of consent.

 

Act of God

 

An act beyond human control, such as lightning, flood or earthquake

 

Advanced Charge

 

A charge advanced by one carrier to another to be collected by the later carrier from the consignor or consignee.

 

Aggregate Shipment

 

Numerous shipments from different shippers to one consignee that are consolidated and treated as a single consignment.

 

Agreed valuation

 

The value of a shipment agreed upon in order to secure a specific freight rate.

 

Agreed Weight

 

The weight prescribed by agreement between carrier and shipper for goods shipped in certain packages or in a certain number.

 

Alternative Rates

 

Privilege to use the rate producing the lowest charge.

 

Ambient Temperature

 

The temperature of a surrounding body. The ambient temperature of a container is the atmospheric temperature to which it is exposed.

 

Any Quantity (A.Q.)

 

Usually refers to a rating that applies to an article regardless of size or quantity.

 

Apparent Good Order

 

When freight appears to be free of damage so far as a general survey can determine.

 

Arbitrary

 

A stated amount over a fixed rate to one point to make a rate to another point.

 

Arrival Notification

 

Carrier notifies and schedules a delivery date and time with the receiver.

 

Back to Index

 

[B]

 

B/L

 

Abbreviation for "Bill of Lading."

 

Backhaul

 

To haul a shipment back over part of a route it has traveled.

 

Beyond

 

Reference to charges assessed for cargo movement past a line-haul terminating or final destination point.

 

Bill of Lading

 

Multi-use documents that are essential to conduct the day-to-day operations when transportation of supplies, materials, and personal property is required. These primary documents are used to procure freight and express transportation and related services from commercial carriers, including freight forwarders.

 

Bill of Lading Requirements?

 

- The name and address of:

- carrier (the shipping company responsible for transport)

- shipper (the consignor/sender, or his agent)

- consignee (the buyer or his agent)

- Origin and Destination

- Description of the commodity or goods being transported

- Payment instructions (PPD (Prepaid), Collect,  COD)

- Place and date issued

- Haz Mat (Placard) Requirements

- Any other information relative to the shipment

 

 

Bill to Party

 

Customer designated as party paying for services.

 

Billed Weight

 

The weight shown in a waybill and freight bill, i.e, the invoiced weight.

 

Blanket Rate

 

A rate applicable to or from a group of points. A special rate applicable to several different articles in a single shipment.

 

Blind Shipment

 

A B/L wherein the paying customer has contracted with the carrier that shipper or consignee information is not given.

 

Block Stowage

 

Stowing cargo destined for a specific location close together to avoid unnecessary cargo movement.

 

Blocked Trains

 

Railcars grouped in a train by destination so that segments (blocks) can be uncoupled and routed to different destinations as the train moves through various junctions. Eliminates the need to break up a train and sort individual railcars at each junction.

 

Blocking or Bracing

 

Wood or metal supports (Dunnage) to keep shipments in place to prevent cargo shifting.

 

Bls.

 

Abbreviation for "Bales."

 

Board Feet

 

The basic unit of measurement for lumber. One board foot is equal to a one_inch board, 12 inches wide and one foot long. Thus, a board ten feet long, 12 inches wide, and one inch thick contains ten board feet.

 

Bobtail

 

Movement of a tractor, without trailer, over the highway.

 

Bogie

 

is a chassis or framework carrying wheels or a set of wheels built specifically as rear wheels under the container.

 

Bolster

 

A device fitted on a chassis or railcar to hold and secure the container.

 

Bonded Freight

 

Freight moving under a bond to U.S. Customs or to the Internal Revenue Service, and to be delivered only under stated conditions.

 

Bonded Warehouse

 

A warehouse authorized by Customs authorities for storage of goods on which payment of duties is deferred until the goods are removed.

 

Booking Arrangements

 

with a carrier for the acceptance and carriage of freight; i.e., a space reservation, truck, container.

 

Booking Number

 

Reservation number used to secure equipment and act as a control number prior to completion of a B/L.

 

Bottom Side Rails

 

Structural members on the longitudinal sides of the base of the container.

 

Bottom-Air Delivery

 

A type of air circulation in a temperature control container. Air is pulled by a fan from the top of the container, passed through the evaporator coil for cooling, and then forced through the space under the load and up through the cargo. This type of airflow provides even temperatures.

 

Boxcar

 

A closed rail freight car.

 

Break Bulk

 

To unload and distribute A portion or all of the contents of trailer, container or rail car.

 

Broker

 

A person who arranges for transportation of loads for a percentage of the revenue from the load.

 

Brokerage

 

A brokerage is a firm that acts as a broker of  freight, general commodities or house hold goods, invoices the shipment. collect the money and pays the carrier.

 

Bulk Cargo

 

Not in packages or containers; shipped loose in the hold of a ship without mark and count." Grain, coal and sulfur are usually bulk freight.

 

Bulk-Freight

 

Container A container with a discharge hatch in the front wall; allows bulk commodities to be carried.

 

Bulkhead

 

A partition separating one part of A ship, Freight car, aircraft or truck from Another part.

 

Back to Index

 

[C]

 

Car Pooling

 

Use of individual carrier/rail equipment through a central agency for the benefit of carriers and shippers.

 

Car Seal

 

Metal strip and lead fastener used for locking freight car or truck doors. Seals are numbered for record purposes.

 

Carrier

 

Any person or entity who, in a contract of carriage, undertakes to perform or to procure the performance of carriage by rail, road, sea, air, inland waterway or by a combination of such modes.

 

Cartage

 

Usually refers to intra_city hauling on drays or trucks.

 

Cash Against Documents (CAD)

 

Method of payment for goods in which documents transferring title are given the buyer upon payment of cash to an intermediary acting for the seller, usually a commission house.

 

Cash in Advance (CIA)

 

A method of payment for goods in which the buyer pays the seller in advance of the shipment of goods. Usually employed when the goods, such as specialized machinery, are built to order.

 

Cash With Order (CWO)

 

A method of payment for goods in which cash is paid at the time of order and the transaction becomes binding on both buyer and seller.

 

CBM (CM)

 

Abbreviation for "Cubic Meter."

 

Certificate of Origin

 

A certified document showing the origin of goods; used in international commerce.

 

CFS

 

Abbreviation for "Container Freight Station." A shipping dock where cargo is loaded, or unloaded from containers.

 

Chassis

 

A frame with wheels and container locking devices in order to secure the container for movement.

 

Chock

 

A piece of wood or other material placed at the side of cargo to prevent rolling or moving sideways.

 

CKD

 

Abbreviation for "Completely Knocked Down." Parts and subassemblies being transported to an assembly plant.

 

CL

 

Abbreviation for "Carload" and "Containerload".

 

Claim

 

A demand made upon a transportation line for payment on account of a loss sustained through its alleged negligence.

 

Class

 

Refers to the Classification rating or number that specifically identifies the approximate size, value and difficulty of transporting a particular type of product that can be shipped by a carrier.

 

Classification

 

A publication such as Uniform Freight Classification (railroad) or the National Motor Freight Classification (motor carrier), that assigns ratings to various articles and provides bill of lading descriptions and rules.

 

Classification Rating

 

Same as Class. The designation provided in a classification by which a class rate is determined.

 

Classification Yard

 

A railroad yard with many tracks used for assembling freight trains.

 

Clayton Act

 

An anti-trust act of the U.S. Congress making price discrimination unlawful.

 

Clean Bill of Lading

 

A receipt for goods issued by a carrier with an indication that the goods were received in "apparent good order and condition," without damage or other irregularities. If no notation or exception is made, the B/L is assumed to be "clean."

 

Clearance

 

The size beyond which cars or loads cannot use Limits bridges, tunnels, etc.

 

Cleat

 

A strip of wood or metal used to afford additional strength, to prevent warping, or to hold in place.

 

Clip-On

 

Refrigeration equipment attachable to an insulated container that does not have its own refrigeration unit.

 

CM

 

Abbreviation for "Cubic Meter" (capital letters).

 

COD

 

Abbreviation for: Collect (cash) on Delivery. Carried on Docket (pricing).

 

Combination Rate

 

A rate made up of two or more factors, separately published.

 

Commercial Invoice

 

Represents a complete record of the transaction between exporter and importer with regard to the goods sold. Also reports the content of the shipment and serves as the basis for all other documents about the shipment.

 

Commodity

 

Article shipped. For dangerous and hazardous material, the correct commodity identification is critical.

 

Commodity Rate

 

A rate published to apply to a specific article or articles.

 

Common Carrier

 

A transportation company which provides service to the general public at published rates.

 

Common Law

 

Law that derives its force and authority from precedent, custom and usage rather than from statutes, particularly with reference to the laws of England and the United States.

 

Concealed Damage

 

Damage that is not evident from viewing the unopened package.

 

Conference

 

An association of ship owners operating in the same trade route who operate under collective conditions and agree on tariff rates.

 

Confirmed Letter of Credit

 

A letter of credit, issued by a foreign bank, whose validity has been confirmed by a domestic bank. An exporter with a confirmed letter of credit is assured of payment even if the foreign buyer or the foreign bank defaults.

 

Confirming Bank

 

The bank that adds its confirmation to another bank's (the issuing bank's) letter of credit and promises to pay the beneficiary upon presentation of documents specified in the letter of credit.

 

Connecting Carrier

 

A carrier which has a direct physical connection with, or forms a link between two or more carriers.

 

Consignee

 

A person or company to whom commodities are shipped to or received by.

 

Consignee Mark

 

A symbol placed on packages for identification purposes; generally a triangle,square, circle, etc. with letters and/or numbers and port of discharge.

 

Consignment

 

(1) A stock of merchandise advanced to a dealer and located at his place of business, but with title remaining in the source of supply. (2) A shipment of goods to a consignee.

 

Consignor

 

A person or company shown on the bill of lading as the shipper.

 

Consolidation

 

Cargo containing shipments of two or more shippers or suppliers. Containerload shipments may be consolidated for one or more consignees.

 

Consolidator

 

A person or firm performing a consolidation service for others. The consolidator takes advantage of lower full carload (FCL) rates, and savings are passed on to shippers.

 

Container

 

A truck trailer body that can be detached from the chassis for loading into a vessel, a rail car or stacked in a container depot. Containers may be ventilated, insulated, refrigerated, flat rack, vehicle rack, open top, bulk liquid or equipped with interior devices. A container may be 20 feet, 40 feet, 45 feet, 48 feet or 53 feet in length, 8'0" or 8'6" in width, and 8'6" or 9'6" in height.

 

Container Booking

 

Arrangements with a steamship line to transport containerized cargo.

 

Container Freight Station

 

See CFS.

 

Container Load

 

A load sufficient in size to fill a container either by cubic measurement or by weight.

 

Container Manifest

 

Document showing contents and loading sequence of a container.

 

Container Pool

 

An agreement between parties that allows the efficient use and supply of containers. A common supply of containers available to the shipper as required.

 

Container Terminal

 

An area designated for the stowage of cargoes in container; usually accessible by truck, railroad and marine transportation. Here containers are picked up, dropped off, maintained and housed.

 

Container Yard (CY)

 

A materials handling/storage facility used for completely unitized loads in containers and/or empty containers. Commonly referred to as CY.

 

Containerable

 

Cargo Cargo that will fit into a container and result in an economical shipment.

 

Containerization

 

Stowage of general or special cargoes in a container for transport in the various modes.

 

Contraband

 

Cargo that is prohibited.

 

Contract

 

A legally binding agreement between two or more persons/organizations to carry out reciprocal obligations or value.

 

Contract Carrier

 

Any person not a common carrier who, under special and individual contracts or agreements, transports passengers or property for compensation.

 

Controlled Atmosphere

 

Sophisticated, computer_controlled systems that manage the mixtures of gases within a container throughout an intermodal journey reducing decay.

 

Corner Posts

 

Vertical frame components fitted at the corners of the container, integral to the corner fittings and connecting the roof and floor structures. Containers are lifted and secured in a stack using the castings at the ends.

 

Correspondent Bank

 

A bank that, in its own country, handles the business of a foreign bank.

 

Cost, Insurance and Freight (CIF)

 

Cost of goods, marine insurance and all transportation (freight) charges are paid to the foreign point of delivery by the seller.

 

Countervailing Duty

 

An additional duty imposed to offset export grants, bounties or subsidies paid to foreign suppliers in certain countries by the government of that country for the purpose of promoting export.

 

Cross Member

 

Transverse members fitted to the bottom side rails of a container, which support the floor.

 

Cu.

 

An abbreviation for "Cubic." A unit of volume measurement.

 

Cube

 

Out When a container or vessel has reached its volumetric capacity before its permitted weight limit.

 

Cubic Foot

 

1,728 cubic inches. A volume contained in a space measuring 12" x 12" x 12".

 

Customhouse

 

A government office where duties are paid, import documents filed, etc., on foreign shipments.

 

Customhouse Broker

 

A person or firm, licensed by the treasury department of their country when required, engaged in entering and clearing goods through Customs for a client (importer).

 

Customs

 

Government agency charged with enforcing the rules passed to protect the country's import and export revenues.

 

Customs Bonded Warehouse

 

A warehouse authorized by Customs to receive duty-free merchandise.

 

Customs Entry

 

All countries require that the importer make a declaration on incoming foreign goods. The importer then normally pays a duty on the imported merchandise.

 

Customs Invoice

 

A form requiring all data in a commercial invoice along with a certificate of value and/or a certificate of origin. Required in a few countries (usually former British territories) and usually serves as a seller's commercial invoice.

 

Cut-Off Time

 

The latest time cargo may be delivered to a terminal for loading to a scheduled train or ship.

 

CWT.

 

Hundred weight (United States, 100 pounds: U.K.,112) See Hundredweight below.

 

CY

 

Abbreviation for Container Yard.

 

Back to Index

 

[D]

 

D&H

 

Abbreviation for "Dangerous and Hazardous" cargo.

 

D.B.A.

 

Abbreviation for "Doing Business As." A legal term for conducting business under a registered name.

 

D.O.T.

 

Department of Transportation.

 

Deadhead

 

One leg of a move without a paying cargo load. Usually refers to repositioning an empty piece of equipment.

 

Declared Value

 

To receive a lower rate a shipper declares a lower than actual value for a shipment. Similar to released value. Declared value is for a complete shipment whereas released value is for each piece in a shipment.

 

Deconsolidation Point

 

Place where loose or other non-containerized or truckload cargo is ungrouped for delivery.

 

Deficit Weight

 

The weight by which a shipment is less than the minimum weight.

 

Delivery Instructions

 

Order to pick up goods at a named place and deliver them to a pier. Usually issued by exporter to trucker but may apply to a railroad, which completes delivery by land. Use is limited to a few major U.S. ports. Also known as shipping delivery order.

 

Delivery Receipt (DR)

 

A document which evidences delivery of a shipment. Same as POD.

 

Demurrage

 

A penalty charge against shippers or consignees for delaying the carrier's equipment beyond the allowed free time. The free time and demurrage charges are set forth in the charter party or freight tariff.

 

Density

 

The weight of cargo per cubic foot or other unit.

 

Depot, Container

 

Container freight station or a designated area where empty containers can be picked up or dropped off.

 

Destination

 

The place where carrier actually turns over cargo to consignee or his agent.

 

Destination Control Statements

 

Various statements that the U.S. government requires to be displayed on export shipments. The statements specify the authorized destinations.

 

Detention

 

A penalty charge against shippers or consignees for delaying carrier's equipment beyond allowed time. Demurrage applies to cargo; detention applies to equipment. See Per Diem.

 

Devanning

 

The unloading of a container or cargo van.

 

DF Car

 

Damage_Free Car. Boxcars equipped with special bracing material.

 

Differential

 

An amount added or deducted from base rate to make a rate to or from some other point or via another route.

 

Discrepancy Letter of Credit

 

When documents presented do not conform to the requirements of the letter of credit (L/C), it is referred to as a "discrepancy." Banks will not process L/C's which have discrepancies. They will refer the situation back to the buyer and/or seller and await further instructions.

 

Displacement

 

The weight, in tons of 2,240 pounds, of the vessel and its contents. Calculated by dividing the volume of water displaced in cubic feet by 35, the average density of sea water.

 

Diversion

 

A change made either in the route of a shipment in transit (see Reconsignment) or of the entire ship.

 

Division

 

Carriers' practice of dividing revenue received from through rates where joint hauls are involved. This is usually according to agreed formulae.

 

Dock, freight

 

For land transportation, A loading or unloading platform at an industrial location or carrier terminal.

 

Dock Receipt

 

A form used to acknowledge receipt of cargo and often serves as basis for preparation of the ocean bill of lading.

 

Docket

 

Present a rate proposal to a conference meeting for adoption as a conference group rate.

 

Documents Against Acceptance (D/A)

 

Instructions given by a shipper to a bank indicating that documents transferring title to goods should be delivered to the buyer only upon the buyer's acceptance of the attached draft.

 

Documents Against Payment (D/P)

 

An indication on a draft that the documents attached are to be released to the drawee only on payment.

 

Dolly

 

A set of wheels that support the front of a container; used when the automotive unit is disconnected.

 

Door-to-Door

 

The through transportation of a container or trailer and its contents from consignor to consignee. Also known as House to House. Not necessarily a through rate.

 

Double Drop

 

A type of open deck trailer which has a raised section at the front and rear and a "well" in the middle. Used for transporting very tall equipment.

 

Doubles

 

Slang term for two pups (28’ trailers) hooked together for transport

 

Draft

 

an unconditional order in writing, addressed by one party (drawer) to Another party (drawee), requiring the drawee to pay at a fixed or determinable future date A specified sum in lawful currency to the order of A specified person.

 

Draft, Bank

 

An order issued by a seller against a purchaser; directs payment, usually through an intermediary bank. Typical bank drafts are negotiable instruments and are similar in many ways to checks on checking accounts in a bank.

 

Draft, Clean

 

A draft to which no documents are attached.

 

Draft, Date

 

A draft that matures on a fixed date, regardless of the time of acceptance.

 

Draft, Discounted

 

A time draft under a letter of credit that has been accepted and purchased by a bank at a discount.

 

Draft, Sight

 

A draft payable on demand upon presentation.

 

Draft, Time

 

A draft that matures at a fixed or determinable time after presentation or acceptance.

 

Drawback

 

A partial refund of an import fee. Refund usually results because goods are re-exported from the country that collected the fee.

 

Drawee

 

The individual or firm that issues a draft and thus stands to receive payment.

 

Drayage

 

Charge made for local hauling by dray or truck. Same as Cartage.

 

Dry Cargo

 

Cargo that is not liquid and normally does not require temperature control.

 

Dry-Bulk Container

 

A container constructed to carry grain, powder and other free-flowing solids in bulk. Used in conjunction with a tilt chassis or platform.