Freight Glossary

Average Annual Daily Truck Traffic (AADTT) – The total volume of truck traffic on a highway segment for one year, divided by the number of days in the year.

A.C.E. (Automated Commercial Environment) - ACE is the commercial trade processing system that has been developed by the U.S. Customs & Border Protection to facilitate legitimate trade and strengthen border security requiring every carrier or truck that enters through any and all border crossings to submit an e-manifest (electronic manifest).

All Risk – All Risks Coverage, a type of marine insurance, is the broadest kind of standard coverage, but excludes damage caused by war, strikes, and riots.

Alongside – A phrase referring to the side of a ship. Goods to be delivered alongside are to be placed on the dock or lighter within reach of the transport ship’s tackle so that they can be loaded aboard the ship. Goods are delivered to the port of embarkation, but without loading fees.

Backhaul – The process of a transportation vehicle (typically a truck) returning from the original destination point to the point of origin. A backhaul can be with a full or partially loaded trailer.

BAF (Bunker Adjustment Factor) – An adjustment in shipping charges to offset price fluctuations in the cost of bunker fuel.

Barge - The cargo-carrying vehicle that inland water carriers primarily use. Basic barges have open tops, but there are covered barges for both dry and liquid cargoes.

Belly Cargo – Air freight carried in the belly of passenger aircraft.

Bill of Lading – A transportation document that is the contract of carriage containing the terms and condition between shipper and carrier.

Billing – Preparation of the freight bill, the primary document for a common carrier shipment including a description of the freight, number of pieces and charges

Bogie – An auxiliary axle assembly having a fifth wheel used for purpose of converting a semitrailer to a full trailer. Dollies can be used to haul multiple trailers behind a single power unit. (Also referred to as dolly)

Bonded Warehouse - The Customs Service authorizes bonded warehouses for storage or manufacture of goods on which payment of duties is deferred until the goods enter the Customs Territory. The goods are not subject to duties if reshipped to foreign points.

Bottleneck – A section of a highway or rail network that experiences operational problems such as congestion. Bottlenecks may result from factors such as reduced roadway width or steep freeway grades that can slow trucks.

Boxcar - An enclosed railcar, typically 40 or more feet long, used for packaged freight and some bulk commodities.

Break Bulk - To separate a composite load into individual shipments and route to different destinations;

Break bulk Cargo – Cargo of non-uniform sizes, often transported on pallets, sacks, drums, or bags. These cargoes require labor-intensive loading and unloading processes. Examples of break bulk cargo include coffee beans, logs, or pulp.

Break bulk Vessel – A general cargo vessel designed to efficiently handle un-containerized cargo. Vessels are usually self-sustaining in that they have their own loading and unloading machinery.

Broker – A person whose business it is to prepare shipping and customs documents for international shipments. Brokers often have offices at major freight gateways, including border crossings, seaports, and airports.

Bulk Cargo - Cargo that is unbound as loaded; it is without count in a loose unpackaged form. Examples of bulk cargo include coal, grain, and petroleum products.
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Cabotage - A national law that requires costal and intercostal traffic to be carried in its own nationally registered, and sometimes built and crewed ships.

CAF (Currency Adjustment Factor) - A freight surcharge or adjustment factor imposed by an international carrier to offset foreign currency fluctuations. In some cases an emergency currency adjustment factor (ECAF) may be applied when a charge or rate has been originally published in a currency that is experiencing sustained or rapid decline. The CAF is charged as a percentage of the freight.

Capacity – The physical facilities, personnel and process available to meet the product of service needs of the customers. Capacity generally refers to the maximum output or producing ability of a machine, a person, a process, a factory, a product, or a service.

Cargo Ramp – A dedicated load/unload facility for cargo aircraft.

Carload – Quantity of freight (in tons) required to fill a railcar; amount normally required to qualify for a carload rate.

Carnet – A customs document permitting the holder to carry or send merchandise temporarily into certain foreign countries for display, demonstration or other purposes without paying import duties or posting bonds.

Carrier - A firm which transports goods or people via land, sea or air.

Centralized Dispatching - The organization of the dispatching function into one central location. This structure often involves the use of data collection devices for communication between the centralized dispatching function, which usually reports to the production control department and the shop manufacturing departments.

Chassis – A trailer-type device with wheels constructed to accommodate containers, which are lifted on and off.

Claim - Charges made against a carrier for loss, damage, delay, or overcharge.

Class I Carrier - A classification of regulated carriers based upon annual operating revenues-motor carrier of property greater than or equal to $5 million; railroads: greater than or equal to $50 million: motor carriers of passengers; greater than or equal to $3 million.

Class II Carrier – A classification of regulated carriers based upon annual operating revenues-motor carrier of property $1- $5 million; railroads: $10-$50 million: motor carriers of passengers; less than or equal to $3 million.

Class III Carrier - A classification of regulated carriers based upon annual operating revenues-motor carrier of property less than or equal to $1 million; railroads: greater than or equal to $10 million.

Class I Truck – Truck with gross vehicle weight (GVW) of 6,000 lbs or less

Class II Truck - Truck with gross vehicle weight (GVW) of 6,001-10,000 lbs Truck

Class III Truck – Truck with gross vehicle weight (GVW) of 10,001-14,000 lbs

Class IV Truck – Truck with gross vehicle weight (GVW) of 14,001-16,000 lbs

Class V Truck – Truck with gross vehicle weight (GVW) of 16,001-19,500 lbs

Class VI Truck – Truck with gross vehicle weight (GVW) of 19,501-26,000 lbs

Class VII Truck – Truck with gross vehicle weight (GVW) of 26,001-33,000 lbs

Class VIII - Truck with gross vehicle weight (GVW) of 33,001-10,000 or more lbs

Classification Yard – A railroad terminal area where railcars are grouped together to form train units.

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 damages or other irregularities.

Coastal Shipping – Also known as short-sea or coastwise shipping, describes marine shipping operations between ports along a single coast or involving a short sea crossing.

COFC – Container on (rail) flat car. A form of intermodal movement of freight using a box suitable for use on rail cars, trailer frames, and container ships. Containers come in many sizes. International containers which are used on ships usually have height and width of eight feet. Length can vary, but 20 and 40 foot lengths are the most common. US domestic containers are generally taller than international containers.

Combination Vehicle – An equipment configuration which includes separate power unit (tractor) and at least one trailer

Commercial Invoice - The commercial invoice is a bill for the goods from the seller to the buyer. These invoices are often used by governments to determine the true value of goods for the assessment of customs duties and are also used to prepare consular documentation. Governments using the commercial invoice to control imports often specify its form, content, number of copies, language to be used, and other characteristics.

Commodity – An Item that is traded in commerce. The term usually implies an undifferentiated product competing primarily on price and availability.

Common Carrier - Any carrier engaged in the interstate transportation of persons/property on a regular schedule at published rates, whose services are for hire to the general public.

Connecting Carrier - A carrier which interchanges trailers with another for completion of shipments.

Consignee – The person or firm named in a freight contract to whom goods have been consigned or turned over. For export control purposes, the documentation differentiates between an intermediate consignee and an ultimate consignee.

Consignment – Delivery of merchandise from an exporter (the consignor) to an agent (the consignee) under agreement that the agent sell the merchandise for the account of the exporter. The consignor retains title to the goods until sold. The consignee sells the goods for commission and remits the net proceeds to the consignor.

Consignor – The sender of a freight shipment, usually the seller.

Container – A “box”‘ typically ten to forty feet long, which is used primarily for ocean freight shipment. For travel to and from ports, containers are loaded onto truck chassis’ or on railroad flatcars.

Containerization - A shipment method in which commodities are placed in containers, and after initial loading, the commodities per se are not re-handled in shipment until they are unloaded at destination.

Containerized Cargo - Cargo that is transported in containers that can be transferred easily from one transportation mode to another.

Contract Carrier – Carrier engaged in interstate transportation of persons/property by motor vehicle on a for-hire basis, but under continuing contract with one or a limited number of customers to meet specific needs.

Cost and Freight (C&F) / Cost and Freight (CFR) to a named overseas port of import - Under this term, the seller quotes a price for the goods that includes the cost of transportation to the named point of debarkation. The cost of insurance is left to the buyer’s account. (Typically used for ocean shipments only. CPT, or carriage paid to, is a term used for shipment by modes other than water.) Also, a method of import valuation that includes insurance and freight charges with the merchandise values.

Cost, Insurance and Freight (CIF) to a named overseas port of import - Under this term, the seller quotes a price for the goods (including insurance), all transportation, and miscellaneous charges to the point of debarkation for the vessel. (Typically used for ocean shipments only. CIP, or carriage and insurance paid to, is a term used for shipment by modes other than water.)

Cubage - Cubic volume of space being used or available for shipping or storage.

CWT – Hundred weight, or one hundred pounds

DDP - While the term “Ex Works” signifies the seller’s minimum obligation, the term “DDP – Deliver Duty Paid”, when followed by words naming the buyer’s premises, denotes the other extreme — the seller’s maximum obligation. The term “Deliver Duty Paid” may be used irrespective of the mode of transport. If the parties wish that the seller should clear the goods for import but that some of the cost payable upon the import of the goods should be excluded — such as value added tax (GST) and/or other similar taxes — this should be made clear by adding words to this effect (e.g., “exclusive of GST and/or taxes”).

DDU - Deliver Duty Unpaid, referring to DDP except buyer pays for the import duty.

Deadhead – The return of an empty transportation container back to a transportation facility. Commonly used description of an empty backhaul.

Delivery Instructions – Provides specific information to the inland carrier concerning the arrangement made by the forwarder to deliver the merchandise to the particular pier or steamship line. Not to be confused with Delivery Order which is used for import cargo.

Detention Fee - The carrier charges and fees applied when rail freight cars, ship and carriers are retained beyond a specified loading or unloading time.

Demurrage - The carrier charges and fees applied when rail freight cars and ships are retained beyond a specific loading or unloading time.

Demurrage – Excess time taken for loading or unloading a vessel, thus causing delay of scheduled departure. Demurrage refers only to situations in which the charter or shipper, rather than the vessel’s operator, is at fault.

Direct to store – Process of shipping direct from a manufacturer’s plant or distribution center to the customer’s retail store, thus bypassing the customer’s distribution center.

Dispatcher - An individual tasked to assign available transportation loads to available carriers.

Dispatching – The scheduling and control of truck pickup and delivery.

Distribution Center (DC) - The warehouse facility which holds inventory from manufacturing pending distribution to the appropriate stores.

Dock – A space used or receiving merchandise at a freight terminal.

Dolly – An auxiliary axle assembly having a fifth wheel used for purpose of converting a semitrailer to a full trailer. Dollies can be used to haul multiple trailers behind a single power unit. (Also referred to as Bogie)

Domestic Intercity Trucking – Trucking operations within the territory of the United States, including intra-Hawaiian and intra-Alaskan, which carry freight beyond the local areas and commercial zones

Double – A combination of two trailers pulled by a power unit. Usually refers to a power unit pulling two 28′ trailers. See also Rocky Mountain Double and Turnpike Double

Double-stack – Railcar movement of containers stacked two high.

Drayage – Transporting of rail or ocean freight by truck to an intermediate or final destination; typically a charge for pickup/delivery of goods moving short distances (e.g., from marine terminal to warehouse).

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.

Durable Goods – Generally any goods whose continuous serviceability is likely to exceed three years.

Duty – A tax imposed on imports by the customs authority of a country. Duties are generally based on the value of the goods (ad valorem duties), some other factors such as weight or quantity (specific duties), or a combination of value and other factors (compound duties).

Enroute – On the way

Ex Works (…named place) (EXW) – A term of sale in which for the quoted price, the seller merely makes the goods avaliable to the buyer at the seller’s “named place” of business. This trade term places the greatest responsibility on the buyer and minimum obligations on the seller. The Ex Works term is often used when making an initial quotation for the sale of goods without any costs included.

Exempt Carrier - A for-hire carrier that is free from economic regulation. Trucks hauling certain commodities are exempt from Interstate Commerce Commission economic regulation. By far the largest portion of exempt carrier transports agricultural commodities or seafood.

FCL or CY – Full Container Load, also known as CY. CY is the abbreviation of Container Yard. When the term CY to CY, it means full container load all the way from origin to destination.

Federal Maritime Commission – The FMC is an independent agencys which regulates oceanborne transportation in the foreign commerce and in the domestic offshore trade of the United States.

FEU – Forty Feet Equivalent Unit

Find an LTL Motor Carrier - Looking for a carrier that requires an LTL shipment to their desired destination or surrounding cities.

Fifth Wheel - A device used to connect a semi-trailer and tractor
Find a Freight Broker - Looking for a freight broker to haul a shipment from point A to point B.

Find Freight – Looking for a commodity being shipped from one destination to another.

Flat Rack Containers – Especially for heavy loads and over-dimensional cargo. Containers do not have sides or a top. This allows easy fork-lift and crane access.

Flatbed – A trailer without sides used for hauling machinery or other bulky items.

For-hire Carrier – Carrier that provides transportation service to the public on a fee basis.

Freight – Any commodity being transported

Freight All Kinds (FAK) - Goods classified FAK are usually charged higher rates than those marked with a specific classification and are frequently in a container that includes various classes of cargo.

Freight Bill - Document for a common carrier shipment. Gives description of the freight, its weight, amount of charges, taxes, and whether collect or prepaid. Charges paid in advance are called prepaid freight bills. Charges collected at the destination are called destination or collect freight bills.

Freight Broker - Any person who sells transportation without actually providing it. Usually refers to agent for TL shipments, matching small shippers with carriers. Freight brokers often do not accept any responsibility for their shipments.

Freight Forwarder - An independent business which handles export shipments for compensation. At the request of the shipper, the forwarder makes the actual arrangements and provides the necessary services for expediting the shipment to its overseas destination. The forwarder takes care of all documentation needed to move the shipment from origin to destination, making up and assembling the necessary documentation for submission to the bank in the exporter’s name. The forwarder arranges for cargo insurance, makes the necessary overseas communications, and advises the shipper on overseas requirements of marking and labeling.

Free Alongside Ship (FAS) at a named port of export – Under FAS, the seller quotes a price for the goods that includes charges for delivery of the goods alongside a vessel at the port of departure. The seller handles the cost of unloading and wharfage; loading, ocean transportation, and insurance are left to the buyer. FAS is also a method of export and import valuation.

Free Carrier (FCA) to a named place – This term replaces the former “FOB named inland port” to designate the seller’s responsibility for the cost of loading goods at the named shipping point. It may be used for multimodal transport, container stations, and any mode of transport, including air.

Free On Board (FOB) - Common price term used in international trade meaning seller’s responsible for the cost of goods is to the point of loading it to the vessel deck or aircraft loading deck. Domestically it involves the risk of loss of or damage to the goods is transferred from the seller to the buyer when the goods have been so delivered. FOB normally comes with port of loading either airport or sea port.

Free 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.

Freight for All Kinds (FAK) - FAK is a shipping classification. Goods classified FAK are usually charged higher rates than those marked with a specific classification and are frequently in a container which includes various classes of cargo.

Fuel-Taxed Waterway System - Eleven thousand miles of the U.S. waterway system designated by the Water Resources Development Act of 1986. Commercial users of this system pay a per gallon fuel tax which is deposited in the Inland Waterways Trust Fund and used to fund inland navigation projects each year.

Four P’s – Set of marketing tools to direct the business offering to the customer. The four P’s are product, price, place and promotion.

Gateway – In the context of travel activities, gateway refers to a major airport or seaport. Internationally, gateway can also mean the port where customs clearance takes place.

GCW – Gross Combination Weight (see Gross Vehicle Weight)

Gross Vehicle Weight (GVW) – The combined total weight of a vehicle and its freight.

Hazardous Material - A substance or material which the Department of Transportation has determined to be capable of posing a risk to health, safety, and property when stored or transported in commerce.

Heavy Duty Truck – Truck with a gross vehicle weight generally in excess of 19,500 pounds (class 6-8). Other minimum weights are used by various laws or government agencies

Hours of Service – Ruling that stipulates the amount of time a driver is allotted to work.

Hub – A common connection point for devices in a network. Referenced for a transportation network as in “hub and spoke” which is common in the airline and trucking industry.

ICC (Interstate Commerce Commission) – The federal body charged with enforcing Acts of Congress affecting interstate commerce. The ICC was sun-setted in 1995.

Import License - A document required and issued by some national governments authorizing the importation of goods. Also referred as import permit. With such documentation, customs clearance can be conducted.

Incoterms – Maintained by the International Chamber of Commerce (ICC), this codification of terms is used in foreign trade contracts to define which parties incur the costs and at what specific point the costs are incurred.

In-bond Shipment – A shipment status in which goods are permitted to enter a country and temporarily stored for transport to a final destination where the duty will be paid.
Inbound Logistics – The movement of materials from shippers and vendors into production processes or storage facilities.

Insurance Certificate – This certificate is used to assure the consignee that insurance is provided to cover loss of or damage to the cargo while in transit.

Intercity Trucking – Trucking operations which carry freight beyond the local areas and commercial zones

Integrated Carriers – Carriers that have both air and ground fleets; or other combinations, such as sea, rail, and truck. Since they usually handle thousands of small parcels an hour, they are less expensive and offer more diverse services than regular carriers.

Interline Freight – Freight moving from point of origin to destination over the lines of two or more transportation lines.

Intermediate Consignee- An intermediate consignee is the bank, forwarding agent, or other intermediary (if any) that acts in a foreign country as an agent for the exporter, the purchaser, or the ultimate consignee, for the purpose of effecting delivery of the export to the ultimate consignee.

Intermodal terminal - A location where links between different transportation modes and networks connect. Using more than one mode of transportation in moving persons and goods. For example, a shipment moved over 1000 miles could travel by truck for one portion of the trip, and then transfer to rail at a designated terminal.

Intermodal Transportation – Transportation movement involving more than one mode, e.g. rail-motor, motor-air, or rail-water

Inventory – The number of units and/or value of the stock of good a company holds.

Irrevocable Letter of Credit – A letter of credit in which the specified payment is guaranteed by the issuing bank if all terms and conditions are met by the drawee. It is as good as the issuing bank.

ISTA - Intermodal Surface Transportation Efficiency Act of 1991.

Just-in-Time (JIT) – Cargo or components that must be at a destination at the exact time needed. The container or vehicle is the movable warehouse.

Lead-time – The total time that elapses between an order’s placement and it receipt. It includes the time required for order transmittal, order processing, order preparation, and transit.

Less-Than-Containerload/Less-Than-Truckload (LCL/LTL) – A container or trailer loaded with cargo from more than one shipper; loads that do not by themselves meet the container load or truckload requirements.

Less Than Truckload (LTL) – A quantity of freight less than that required for the application of a truckload rate. The historical definition for LTL freight is shipments under 10,000 pounds. LTL carriers are carriers which specialize in shipments under 10,000 pounds. However, competition from other freight carriers restricts shipments for most LTL carriers to the range between 300 and 3000 pounds.

Letter of Credit - A financial document issued by a bank at the request of the consignee guaranteeing payment to the shipper for cargo if certain terms and conditions are fulfilled. Normally it contains a brief description of the goods, documents required, a shipping date, and an expiration date after which payment will no longer be made. An Irrevocable Letter of Credit is one which obligates the issuing bank to pay the exporter when all terms and conditions of the letter of credit have been met. None of the terms and conditions may be changed without the consent of all parties to the letter of credit. A Revocable Letter of Credit is subject to possible recall or amendment at the option of the applicant, without the approval of the beneficiary. A Confirmed Letter of Credit is issued by a foreign bank with its validity confirmed by a U.S. bank. An exporter who requires a confirmed letter of credit from the buyer is assured payment from the U.S. bank in case the foreign buyer or bank defaults. A Documentary Letter of Credit is one for which the issuing bank stipulates that certain documents must accompany a draft. The documents assure the applicant (importer) that the merchandise has been shipped and that title to the goods has been transferred to the importer.

Level of Service (LOS) - A qualitative assessment of a road’s operating conditions. For local government comprehensive planning purposes, level of service means an indicator of the extent or degree of service provided by, or proposed to be provided by, a facility based on and related to the operational characteristics of the facility. Level of service indicates the capacity per unit of demand for each public facility.

Lift-on/Lift-off (lo/lo) Cargo – Containerized cargo that must be lifted on and off vessels and other vehicles using handling equipment.

Line Haul - The movement of freight over the road/rail from origin terminal to destination terminal, usually over long distances.

Liquid Bulk Cargo – A type of bulk cargo that consists of liquid items, such as petroleum, water, or liquid natural gas.

Live Load - As situation in which the equipment operation stays with the trailer or boxcar while being loaded or unloaded.

Lock - A channel where the water rises and falls to allow boats to travel a dammed river.

Logbook - A daily record of the hours an interstate driver spends driving, off duty, sleeping in the berth, or on duty not driving.

Logistics – All activities involved in the management of product movement; delivering the right product from the right origin to the right destination, with the right quality and quantity, at the right schedule and price.

LCL – Less than Container Load, consolidated container load.

LTL Motor Carrier - LTL carriers are carriers which specialize in shipments under 10,000 pounds. However, competition from other freight carriers restricts shipments for most LTL carriers to the range between 300 and 3000 pounds

Lumpers – Individuals that assist a motor carrier owner operator in the unloading of property; quite commonly used in the food industry.

Marine Cargo Insurance – Broadly, insurance covering loss of, or damage to, goods at sea. Marine insurance typically compensates the owner of merchandise for losses in excess of those which can be legally recovered from the carrier that are sustained from fire, shipwreck, piracy, and various other causes. Three of the most common types of marine insurance coverage are “free of particular average” (f.p.a.), “with average” (w.a.), and “All Risks Coverage.”

Modal Share – The percentage of total freight moved by a particular type of transportation

Neo-bulk Cargo – Shipments consisting entirely of units of a single commodity, such as cars, lumber, or scrap metal.

Node – A fixed point in a firm’s logistics system where goods come to rest; includes plants, warehouses, supply sources, and markets.

OS&D – Over, short and damaged. Report is issued at warehouse when goods are damaged; claim is usually filed with the carrier.

On-dock Rail – Direct shipside rail service. Includes the ability to load and unload containers/breakbulk directly from rail car to vessel.

Outbound Logistics – The process related to the movement and storage of products from the end of the production line to the end user.

Operating expenses – The costs of handling traffic including both direct costs, e.g. driver wages and fuel; and indirect cots, e.g. computer expenses and advertising; but excludes interest expense.

Operating Ratio – A measure of profitability based on operating expenses as a percentage of gross revenues

Owner-operator – Trucking operation in which the owner of the truck is also the driver.

Packing List – A shipping document issued by shipper to carrier, Customs and consignee serving the purposes of identifying detail information of package count, products count, measurement of each package, weight of each package, etc.

Placard – A label that identifies a hazardous material shipment and the hazards present.

Piggyback – A rail/truck service. A shipper loads a highway trailer, and a carrier drives it to a rail terminal and loads it on a flatcar; the railroad moves the trailer-on-flatcar combination to the destination terminal, where the carrier offloads the trailer and delivers it to the consignee.

Pool/Drop Trailers – Trailer that are staged at a facilities for preloading purposes.

Point of Sale (POS) – The time and place at which a sale occurs, such as a cash register in a retail operation, or the order confirmation screen in an on-line session. Supply chain partners are interested in capturing data at the POS because it is a true record of the sale rather than being derived from other information such as inventory movement.

Port Authority – State or local government that owns, operates, or otherwise provides wharf, dock, and other terminal investments at ports.

Power Units - The control and pulling vehicle for trailers or semitrailers

Private Carrier - A carrier that provides transportation service to the firm that owns or leases the vehicles and does not charge a fee.

Private Warehouse – A company owned warehouse.

Prepaid – A freight term, which indicates that charges are to be paid by the shipper.  Prepaid shipping charges may be added to the customer invoice, or the cost may be bundled into the pricing of the product.

Pro Forma Invoice - An invoice provided by a supplier prior to the shipment of merchandise, informing the buyer of the kinds and quantities of goods to be sent, their value, and important specifications (weight, size, and similar characteristics). When an importer applies for Letter of Credit as the means of payment, a Pro Forma Invoice from the beneficiary of such Letter of Credit, usually the exporter is required by the L/C issuing bank.

Project Cargo - This is a term normal referred to when shipping cargo air or sea, which does not fall within standard methods. I.e. over-height or oversize cargo which requires special equipment and handle.

Proof of Delivery – Information supplied by the carrier containing the name of the person who signed for the shipment, the time and date of delivery, and other shipment delivery related information.

Pull Logistics System – “Just in time” logistics system driven by customer demand and enabled by telecommunications and information systems rather than by manufacturing process and inventory stockpiling.

Purchase Order (PO) - The purchaser’s authorization used to formalize a purchase transaction with a supplier. The physical form or electronic transaction a buyer uses when placing an order for merchandise.

Push Logistics System – Inventory-based logistics system characterized by regularly scheduled flows of products and high inventory levels.

Rating – Determination of the correct legal rate for a shipment

Rail Siding - A very short branch off a main railway line with only one point leading onto it. Sidings are used to allow faster trains to pass slower ones or to conduct maintenance.

Reefer Trailer – A refrigerated trailer that is commonly used for perishable goods.

Regional Railroad – Railroad defined as line-haul railroad operating at least 350 miles of track and/or earns revenue between $40 million and $266.7 million.

Reliability – Refers to the degree of certainty and predictability in travel times on the transportation system. Reliable transportation systems offer some assurance of attaining a given destination within a reasonable range of an expected time. An unreliable transportation system is subject to unexpected delays, increasing costs for system users.

Reverse Logistics – A specialized segment of logistics focusing on the movement and management of products and resources after the sale and after delivery to the customer. Includes product returns and repair for credit.

Receiving – The function encompassing the physical receipt of material, the inspection of the shipment for conformance with the purchase order (quantity and damage), the identification and delivery to destination, and the preparation of receiving reports.

Return to Vendor (RTV) - Material that has been rejected by the customer or buyer’s inspection department and is awaiting shipment back to supplier for repair or replacement.

Radio Frequency (RFID) – A form of wireless communication that lets users relay information via electronic energy waves from a terminal to a base station, which is linked in turn to a host computer. The terminals can be placed at a fixed station, mounted on a forklift truck, or carried in the worker’s hand. The base station contains a transmitter and receiver for communication with the terminals. When combined with a bar-code system for identifying inventory items, a radio-frequency system can relay data instantly, thus updating inventory records in so-called “real time”.

Rocky Mountain Double - A combination vehicle consisting of a tractor, a 45 to 48 foot semitrailer and a shorter 28 foot semitrailer

Roll-on, Roll-off (RORO) – A type of ship designed to load & discharge cargo which rolls on wheels or tracks.

Roll-on/Roll-off (ro/ro) Cargo – Wheeled cargo, such as automobiles, or cargo carried on chassis that can be rolled on or off vehicles without using cargo handling equipment.

Seasonality – Repetitive pattern of demand from year to year (or other repeating time interval) with some periods considerably higher than others. Seasonality explains the fluctuation in demand for various recreational products, which are used during different seasons.

Semitrailer – Truck trailer equipped with one or more axles and constructed so that the front end rests upon a truck tractor

Shipper – Party that tenders goods for transportation.

Shipper’s Agent – Company which coordinates all aspects of an intermodal move, hiring drayage at both ends, and providing shippers with a single invoice. (See also Freight Forwarder and Broker)

Shipping Mark – The letters, numbers or other symbols placed on the outside of cargo to facilitate identification.

Shipping Manifest – A document that lists the pieces in a shipment.

Shipping Weight - Shipping weight represents the gross weight in kilograms of shipments, including the weight of moisture content, wrappings, crates, boxes, and containers (other than cargo vans and similar substantial outer containers).

Short Line Railroad – Freight railroads which are not Class I or Regional Railroads, that operate less than 350 miles of track and earn less than $40 million.

Short-sea Shipping – Also known as coastal or coastwise shipping, describes marine shipping operations between ports along a single coast or involving a short sea crossing.

SIC Code – Standard Industrial Classification Code A classification of establishments by type of activity in which they are engaged; for the purpose of facilitating the collection, tabulation, presentation and analysis of data relating to establishments, e.g. SIC 42 Motor Freight Transportation and Warehousing SIC 421 Trucking,, Local and Long distance

Sleeper Team – Two drivers who operated a truck equipped with a sleeper berth; while one driver sleeps in the berth to accumulate mandatory off-duty time, the other driver operates the vehicle.

Specialized Carrier – A trucking company franchised to transport articles which, because of size, shape, weight, or other inherent characteristics, require special equipment for lading, unloading or transporting.

Stock Keeping Unit (SKU) - A category of unit with unique combination of form, fit and function.

Stock Outs – Merchandise that is requested by a customer but is temporarily unavailable. Also referred to as (OOS).

Stop Off Charge – Charge associated with a load that has more than one drop off point. Typically, the first stop of a multistop load is free, and then the charge applies to the subsequent stops.

State of Domicile – Companies: The state in which the carrier maintains its headquarters. Drivers:  The state in which a driver resides.

Strategic Highway Network (STRAHNET) – A network of highways which are important to the United States’ strategic defense policy and which provide defense access, continuity, and emergency capabilities for defense purposes.

Strategic Rail Corridor Network (STRACNET) - An interconnected and continuous rail line network consisting of over 38,000 miles of track serving over 170 defense installations.

Straight Truck – A vehicle with the cargo body and tractor mounted on the same chassis

Switching and Terminal Railroad – Railroad that provides pick-up and delivery services to line-haul carriers.

Supply Chain – Starting with unprocessed raw materials and ending with final customer using the finished goods.

Tare Weight - The weight of a container and/or packing materials without the weight of the goods it contains.

TEU - Twenty-foot equivalent unit, a standard size intermodal container

Third-party Logistics (3PL) Provider – A specialist in logistics who may provide a variety of transportation, warehousing, and logistics-related services to buyers or sellers. These tasks were previously performed in-house by the customer.

Third Structure Tax – Any tax on road users other than registration fees or fuel taxes. See, for example, ton-mile tax and weight-distance tax.

Through Bill of Lading – A single bill of lading covering receipt of the cargo at the point of origin for delivery to the ultimate consignee, using two or more modes of transportation.

Throughput - Total amount of freight imported or exported through a seaport measured in tons or TEUs.

Ton-Mile - The movement of one ton of freight a distance of one mile. Ton-miles are computed by multiplying the weight in tons of each shipment transported by the distance hauled for each movement. Total ton-miles for a carrier are calculated by adding the figure for all movements.

Ton-Mile Tax - A tax calculated by measuring the weight of each truck for each trip. The gross weight is assigned a tax rate which is multiplied by the miles of travel

Tracer - A request that a carrier locate a shipment to speed its movement or to establish proof of delivery, or a request for an answer to a previously filed claim

Trailer on Flatcar (TOFC) – Transport of trailers with their loads on specially designed rail cars.

Transit time – The total time that elapses between a shipment’s delivery and pickup.

Transshipment – Transshipment refers to the act of sending an exported product through an intermediate country before routing it to the country intended to be its final destination.

Transloading – Transferring bulk shipments from the vehicle/container of one mode to that of another at a terminal interchange point.

Truckload (TL) – Quantity of freight required to fill a truck, or at a minimum, the amount required to qualify for a truckload rate.

Truck Tonnage – The weight of freight in tons transported by truck

Turnpike Double – A combination vehicle consisting of a tractor and two trailers of 45 to 48 feet.

Twenty-foot Equivalent Unit (TEU) – The 8-foot by 8-foot by 20-foot intermodal container is used as a basic measure in many statistics and is the standard measure used for containerized cargo.

Twin Trailer - A short semitrailer (under 29′) designed to be operated as part of a combination vehicle with a tandem trailer of similar length

Ultimate Consignee – The ultimate consignee is the person located abroad who is the true party in interest, receiving the export for the designated end-use.

Unit Train – A train of a specified number of railcars handling a single commodity type which remain as a unit for a designated destination or until a change in routing is made.

Value for Customs Purposes Only – The U.S. Customs Service defines “value for Customs purposes only” as the value submitted on the entry documentation by the importer which may or may not reflect information from the manufacturer but in no way reflects Customs appraisement of the merchandise.

Vehicle Miles of Travel (VMT) – A unit to measure vehicle travel made by a private vehicle, such as an automobile, van, pickup truck, or motorcycle.

War/Strike Clause – An insurance provision that covers loss due to war and/or strike.

Warehouse – Storage place for products. Principal warehouse activities include receipt of product, storage, shipment and order picking.

Waybill – Description of goods with a common carrier freight shipment

Weight-distance Tax – A tax basing the fee per mile on the registered gross weight of the vehicle. Total tax liability is calculated by multiplying this rate times miles traveled

Wharfage - A charge assessed by a pier or dock owner for handling incoming or outgoing cargo.