| 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 |

ABI - Automated Brokerage Interface Is a system available to U.S. Customs Brokers with the computer capabilities and customs certification to transmit and exchange customs entries and other information, facilitating prompt release of imported cargo.

ABS - American Bureau of Shipping: A U.S.—based private classification, or standards setting society for merchant ships and other marine systems.

AITA - International Air Transport Association, IATA, (French, German).

Accounts Payable (A/P) - The value of goods and services acquired for which payment has not yet been made.

Accreditation - Certification by a recognized body of the facilities, capability, objectivity, competence, and integrity of an agency, service, operational group, or individual to provide the specific service or operation needed. For example, the Registrar Accreditation Board accredits those organizations that register companies to the ISO 9000 Series Standards.

Activity-Based Costing (ABC) - A methodology that measures the cost and performance of cost objects, activities, and resources. Cost objects consume activities and activities consume resources. Resource costs are assigned to activities based on their use of those resources, and activity costs are reassigned to cost objects (outpputs) based on the cost objects proportional use of those activities. Activity—based costing incorporates causal relationships between cost objects and activities and between activities and resources.

Ad Valorem - A fixed percentage of the value of goods that is used to calculate customs duties and taxes.

Air Cargo Agent - A type of freight forwarder who specializes in air cargo and acts for airlines that pay him a fee (usually 5%). He is registered with the International Air Transport Association, IATA (See also Air Freight Forwarder; Forwarder, Freight Forwarder, Foreign Freight Forwarder).

Air Freight Forwarder - Is a type of freight forwarder who specializes in air cargo. He usually consolidates the air shipments of various exporters, charging them for actual weight and deriving his profit by paying the airline the lower consolidated rate. He issues his own air waybills to the exporters, is licensed by the CAB (Civil Aeronautics Board) and has the status of an indirect air carrier (See also Air Cargo Agent, Forwarder, Freight Forwarder, Foreign Freight Forwarder.)

Airwaybill - bill of landing that covers both international and domestic flights transporting goods to a specified destination. This is a non—negotiable documents of air transport that serves as a receipt for the shipper, indicating that the carrier has accepted the goods listed and obligates itself to carry the consignment to the airport of destination according to specified conditions.

All Risk Insurance - Is a clause included in marine insurance policies to cover loss and damage from external causes, such as fire, collision, pilferage, etc. but not against innate flaws in the goods, such as decay, germination, nor against faulty packaging, improper packing/ loading or loss of market, nor against war, strikes, riots and civil commotions (See Marine Insurance)

All-Risk Clause - Is an insurance provision that all loss or damage to goods is insured except that of inherent vice (self caused). (See All Risk Insurance).

Alongside - A phrase referring to the side of a ship. Goods to be 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 abroad the ship.

American National Standards Institute (ANSI) - A non—profit organization chartered to develop, maintain, and promulgate voluntary US national standards in a number of areas, especially with regards to setting EDI standards. ANSI is the US representative to the International Standards Organization (ISO).

Arbitration Clause - Is a standard clause to be included in the contracts of exporters and importers, as suggested by the American Arbitration Association. It states that any controversy or claim will be settled by arbitration in accordance with the rules of the American Arbitration Association.

Arbitration - Method of settling disputes usually applied to a charter party.

Arrival Notice - A notice from the delivering carrier to the Notify Party indicating the shipment's arrival date at a specific location (normally the destination).

Assemble to Order - A production environment where a good or service can be assembled after receipt of a customer's order. The key components (bulk, semifinished, intermediate, sub—assembly, fabricated, purchased, packing, and so on) used in the assembly or finishing process are planned and usually stocked in anticipation of a customer order. Receipt of an order initiates assembly of the customized product. This strategy is useful where a large number of end products (based on the selection of options and accessories) can be assembled from common components.

Assembly - A group of subassemblies and/or parts that are put together and constitute a major subdivision for the final product. An assembly may be an end item or a component of a higher—level assembly.

Assignment - The transfer of the rights, duties, responsibilities and/or benefits of an agreement, contract, or financial instrument to third party.

Audit Trail - Manual or computerized tracing of the transactions affecting the contents or origin or a record.

Audit - In reference to freight bills, the term audit is used to determine the accuracy of freight bills.

Automated Manifest System (AMS) - The electronic system allowing a manifest inventory to be transmitted to the US Customs Service data center by carrier, port authority or service center computers.

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 |

go to top

B/L TON (also Freight Ton) - the greater weight or measurement of goods where 1 tonnes is either 1,000 kg or 1 cubic metre.

BAA - British Airports Authority

BACA - Baltic Air Charter Association

BAF - Bunker adjustment factor. A freight adjustment factor reflecting the current cost of bunkers.

Bagged Cargo - Various kinds of commodities usually packed in sacks or in bags, such as sugar, cement, milk powder, onion, grain, flour, etc. Also referred to as breakbulk.

Barge - Flat-bottomed boat for carrying cargo on protected waterways, usually without engines or crew accommodations. On inland river systems barges can be lashed together and either pushed or pulled by tugs and handle cargo of 60,000 tonnes or more. Small barges for carrying cargo between ship and shore are known as lighters.

BIMCO - Baltic and International Maritime Council, to which many shipowners and brokers belong.

Back Order - Product ordered but out of stock and promised to ship when the product becomes available.

Balance of Trade - The difference between a country's total imports and exports; if exports exceed imports, favorable balance of trade exists, if not, a trade deficit is said to exist.

Balanced Scorecard - A structured measurement system based on a mix of financial and non—financial measures of business performance. A list of financial and operational measurements used to evaluate organizational or supply chain performance. The dimensions of the balanced scorecard might include customer perspective, business process perspective, financial perspective, and innovation and learning perspectives. It formally connects overall objectives, strategies, and measurements. Each dimension has goals and measurements. Also see Scorecard.

Bar Code Scanner - A device to read bar codes and communicate data to computer systems.

Bar Code - A symbol consisting of a series of printed bars representing values. A system of optical character reading, scanning, tracking of units by reading a series of printed bars for translation into a numeric or alphanumeric identification code. A popular example is the UPC code used on retail packaging.

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.

Barter - Trade in which merchandise is exchanged directly for other merchandise without use of money. Barter is an important means of trade with countries using currency that is not readily convertible.

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.

Beneficiary - A firm or person on whom a letter of credit has been drawn. The beneficiary is usually the seller or exporter.

Bilateral Contract - An agreement where—in each party makes a promise to the other party.

Bill of Lading (BOL) - A transportation document that is the contract of carriage containing the terms and conditions between the shipper and carrier.

Bill of Lading Number - The number assigned by the carrier to identify the bill of lading.

Bill of Lading, Through - A bill of lading to cover goods from point of origin to final destination when interchange or transfer from one carrier to another is necessary to complete the journey.

Bonded Warehouse - An area of security approved by custom authorities for the safekeeping or deposit of goods liable for excise duty but not yet subject to that duty.

Box - a term used for a container.

Break Bulk Cargo - Goods carried in the hold of ships and not in containers.

Breakbulk Vessel - A general, multipurpose, cargo ship that carriers cargoes of non—uniform sizes, often on pallets, resulting in labour—intensive loading and unloading.

Bunkers - Fuel consumed by the engines of a ship; compartments or tanks in a ship for fuel storage.

Business Process Outsourcing (BPO) - The practice of outsourcing non—core internal functions to third parties. Functions typically outsourced include logistics, accounts payable, accounts receivable, payroll, and human resources. Other areas can include IT development or complete management of the IT functions of the enterprise.

Business Process Reengineering (BPR) - The fundamental rethinking and radical redesign of business processes to achieve dramatic organizational improvements.

Business-to-Business (B2B) - As opposed to business—to—consumer (B2C). Many companies are now focusing on this strategy, and their web sites are aimed at businesses (think wholesale) and only other businesses can access or buy products on the site. Internet analysts predict this will be the biggest sector on the web.

Business-to-Consumer (B2C) - The hundreds of e—commerce web sites that sell goods directly to consumers are considered B2C. This distinction is important when comparing web sites that are B2B as the entire business model, strategy, execution, and fulfillment is different.

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 |

go to top

C&F - Is a quoted price includes cost of goods and freight.

C&I - Is a quoted price includes cost of goods and insurance.

C.F.R. (Cost and Freight) and C.I.F. (Cost, Insurance, and Freight) - indicate that the seller will deliver the goods onto a vessel and pay all the normal charges to get the cargo to the named seaport. The buyer assumes all risks from the time the cargo is placed onto the vessel at the seaport of loading. C.I.F. also indicates that the seller arranges for insurance as an automatic condition of the contract.

C.I.F. - see INCOTERMS

C/P - Charter Party

CFS (Container Freight Station) - The term CFS at loading port means the location designated by carriers for the receiving of cargo to be packed into containers by the carrier. At discharge ports, the term CFS means the bonded location designated by carriers in the port area for unpacking and delivery of cargo.

CFS Charge (Container Freight Charge) - The term CFS Charge means the charge assessed for services performed at the loading or discharging port in packing or unpacking of cargo into/from containers at CFS.

CFS/CFS (Pier to Pier) - The term CFS/CFS means cargo delivered by break—bulk to Carrier's CFS to be packed by Carrier into containers and to be unpacked by Carrier from the container at Carrier's destination port CFS.

CFS/CY (Pier to House) - The term CFS/CY means cargo delivered break—bulk to Carrier's CFS to be packed by Carrier into containers and accepted by consignee at Carrier's CY and unpacked by the consignee off Carrier's premises, all at consignee's risk and expense

CPI - Consumer Price Index.

CY ( Container Yard) - The term CY means the location designated by Carrier in the port terminal area for receiving, assembling, holding, storing and delivering containers, and where containers may be picked up by shippers or re—delivered by consignees. No container yard (CY) shall be a shipper's, consignee's, NVOCC's, or a forwarder's place of business, unless otherwise provided.

CY/CFS (House to Pier) - The term CY/CFS means containers packed by shipper of carrier's premises and delivered by shipper to Carrier's CY, all at shipper's risk and expense and unpacked by Carrier at the destination port CFS.

CY/CY (House to House) - The term CY/CY means containers packed by shipper off Carrier's premises and delivered by shipper to Carrier's CY and accepted by consignee a t Carrier's CY and unpacked by consignee off Carrier's premises, all at the risk and expense of cargo.

Cabotage Policies - Reservation of a country's coastal (domestic) shipping for its own flag vessels.

Cabotage - Is where cargo is carried on what is essentially a domestic flight and therefore not subject to international agreements that fix set rates. Cabotage rates are negotiable between shipper and airline and apply on flights within a country and to its overseas territories.

Cabotage - The carriage of goods or passengers for remuneration taken on at one point and discharged at another point within the territory of the same country.

Capacity Management - The concept that capacity should be understood, defined, and measured for each level in the organization to include market segments, products, processes, activities, and resources. In each of these applications, capacity is defined in a hierarchy of idle, non—productive, and productive views.

Capacity Planning - Assuring that needed resources (e.g., manufacturing capacity, distribution center capacity, transportation vehicles, etc.) will be available at the right time and place to meet logistics and supply chain needs.

Cargo Handling - The act of loading and discharging a cargo ship.

Cargo Preference - Reserving a portion of a nation's imports and exports to national—flag vessels.

Cargo Receipt - Is a receipt of cargo for shipment by a consolidator (used in ocean freight).

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) Containers or Shipper(s) Containers - The term Carrier(s) Container(s) or Shipper(s) Container(s) means containers over which the carrier or the shipper has control either by ownership or by the acquisition thereof under lease or rental from container companies or container suppliers or from similar sources. Carriers are prohibited from purchasing, leasing or renting shipper owned containers.

Carrier, Common - a public or privately owned firm or corporation that transports the goods of others over land, sea, or through the air, for a stated freight rate. By government regulation, a common carrier is required to carry all goods offered if accommodations are available and the established rate is paid.

Carriers - Owners or operators of vessels providing transportation to shippers. The term is also sometimes used to refer to the vessels, i.e. ore carriers.

Cash in Advance (C.I.A.) - Payment for goods in which the price is paid in full before shipment is made. This method is usually used only for small purchases or when the goods are built to order.

Certificate Of Registry - A document specifying the nation registry of the vessel.

Certificate of Inspection - A document certifying that the goods were in apparent good condition immediately prior to shipment.

Certificate of Inspection - A document in which certification is made as to the good condition of the merchandise immediately prior to shipment. The buyer usually designates the inspecting organization, usually an independent inspection firm or government body.

Certificate of Manufacture - A statement by a producer, sometimes notarized, which certifies that manufacture has been completed and that the goods are at the disposal of the buyer.

Certificate of Manufacture - A statement in which a producer specifies where his goods were manufactured, certifies that manufacturing has been completed, and confirms that the goods are at the buyer's disposal.

Certificate of Origin - A document in which certification is made as to the country of origin of the merchandise.

Certificate of Origin - A statement signed by the exporter, or his agent, and attested to by a local Chamber of Commerce, indicating that the goods being shipped, or a major percentage of them, originated and were produced in the exporter's country.

Chamber of Commerce - An association of businessmen whose purpose is to promote commercial and industrial interests in the community.

Classification - Is a customs term. The placement of an item under the correct number in the customs tariff for duty purposes. At times this procedure becomes highly complicated; it is not uncommon for importers to resort to litigation over the correct duty to be assessed by the customs on a given item.

Claused Bill of Lading - Is a bill of lading which has exemptions to the receipt of merchandise in 'apparent good order' noted.

Clean Bill of Lading - A bill of lading signed by the transportation company indicating that the shipment has been received in good condition with no irregularities in the packing or general condition of all or any part of the shipment. See 'Foul Bill of Lading.'

Clean Bill of Lading - Is a bill of lading which covers goods received in 'apparent good order and condition' and without qualification.

Coastal Service Or Coastwise - Domestic shipping routes along a single coast.

Code Of Liner Conduct (UNCTAD) - A convention drafted under the auspices of the United Nations Conference on Trade and Development which provides that all shipping traffic between two foreign countries is to be regulated as far as the quantities of shipments are concerned on the following percentages — — 40% for owners of the country of origin, 40% for owners of country of destination, and 20% for owners of the country which is neither the origin nor the destination.

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.

Collection - The procedure involved in a bank's collecting money for a seller against a draft drawn on a buyer abroad, usually through a correspondent bank.

Commercial Invoice - A document created by the seller. It is an official document which is used to indicate, among other things, the name and address of the buyer and seller, the product(s) being shipped, and their value for customs, insurance, or other purposes.

Commercial Invoice - A trade invoice.

Commercial Invoice - An itemized list of goods shipped, usually included among an exporter's collection papers.

Conference and Conference Lines - An affiliation of shipowners operating over the same route(s) who agree to charge uniform rates and other terms of carriage. A conference is 'closed' if one can enter only by the consent of existing members of the conference. It is 'open' if anyone can enter by meeting certain technical and financial standards.

Configure/Package to Order - A process where the trigger to begin to manufacture, final assembly, or packaging of a product is an actual customer order or release rather than a market forecast. In order to be considered a configure—to—order environment, less than 20% of the value added takes place after the receipt of the order or release, and virtually all necessary design and process documentation is available at time of order receipt.

Consignee - The person to whom cargo is consigned as stated on the bills of lading.

Consignee - The person, firm, or representative to whom a seller or shipper sends merchandise and who, upon presentation of the necessary documents, is recognized as the owner of the merchandise for the purpose of the payment of customs duties. This term is also used as applying to one to whom goods are shipped, usually at the shipper's risk, when an outright sale has not been made. See 'Consignment.'

Consignment - A term pertaining to merchandise shipped to a consignee abroad when an actual purchase has not been made, under an agreement by which the consignee is obligated to sell the goods for the account of the consignor, and to remit proceeds as goods are sold.

Consignment - Is the physical transfer of goods from a seller (consignor) with whom the title remains, to another legal entity (consignee) who acts as a selling agent, selling the goods and remitting the new proceeds to the consignor.

Consignor - A term used to describe any person who consigns goods to himself or to another party in a bill of lading or equivalent document. A consignor might be the owner of the goods, or a freight forwarder who consigns goods on behalf of his principal.

Consignor - The person named in the bill of lading as the one from whom the goods have been received for shipment.

Container Ship - a ship designed to handle containerised cargo. A fully cellular container ship is one that carries no cranes and is reliant on shorebased cranes for loading and discharging. Container ships' hulls are divided into cells accessible through large hatches into which the containers fit. Specialized types of container ships are the LASH and SeaBee, which carry floating containers (or 'lighters,') and RoRo ships, which may carry containers on truck trailers.

Container - A steel box of a given measurement used for the carriage of goods, often referred to as a TEU (20ft equivalent). Can be a standard container, usually either 6m or 12m in length (20ft or 40ft), a reefer container for refrigerated cargo, a flatrack standard or collapsible container, or an open top container type.

Continuous Replenishment - Continuous replenishment is the practice of partnering between distribution channel members that changes the traditional replenishment process from distributor—generated purchase orders based on economic order quantities to the replenishment of products based on actual and forecasted product demand.

Correspondent Bank - A bank which is a depository for another bank, accepting deposits and collecting items for its bank depositor.

Council of Supply Chain Management Professionals (CSCMP) - The CSCMP is a not—for—profit professional business organization consisting of individuals throughout the world who have interests and/or responsibilities in logistics and supply chain management, and the related functions that make up these professions. Its purpose is to enhance the development of the logistics and supply chain management professions by providing these individuals with educational opportunities and relevant information through a variety of programs, services, and activities.

Country of Origin - The country in which a product or commodity is manufactured or produced.

Credit Risk Insurance - A form of insurance which protects the seller against loss due to default on the part of the buyer. See 'FCIA.'

Credit Terms - The agreement between two or more enterprises concerning the amount and timing of payment for goods or services.

Crossdock - Crossdock operations in a warehouse involve moving goods between different trucks to consolidate loads without intermediate storage.

Currency Adjustment Factor (CAF) - A surcharge imposed by a carrier on ocean freight charges to offset foreign currency fluctuations.

Customhouse Broker - An individual or firm licensed to enter and clear goods through Customs.

Customs Bonded Warehouse - Is a warehouse where imported goods may be stored for a total of three years without the payment of duty or taxes.

Customs Broker - A firm that represents importers/exporters in dealings with customs. Normally responsible for obtaining and submitting all documents for clearing merchandise through customs, arranging inland transport, and paying all charges related to these functions.

Customs Clearance - The act of obtaining permission to import merchandise from another country into the importing nation.

Customs House Broker - A business firm that oversees the movement of international shipments through Customs, and ensures that the documentation accompanying a shipment is complete and accurate.

Customs Invoice - A document that contains a declaration by the seller, the shipper, or the agent as to the value of the shipment.

Customs - The agency or procedure for collecting duties imposed by a country on imports or exports.

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 |

go to top

Dangerous Cargo - see Hazardous Cargo

Deadweight (DWT) - A common measure of ship carrying capacity, equalling the number of tonnes of cargo, stores and bunkers that the ship can transport. It is the difference between the number of tonnes of water a vessel displaces 'light' and the number of tons it displaces when submerged to the 'deep load line'. A ship's cargo capacity is less than its total deadweight tonnage. The difference in weight between a vessel when it is fully loaded and when it is empty (in general transportation terms, the net) measured by the water it displaces. This is the most common, and useful, measurement for shipping as it measures cargo capacity and is usually used when referring to liquid and dry bulk ships.

Deep Sea Trades - The traffic routes of both cargo and passenger vessels which are regularly engaged on the high seas or on long voyages.

Demurrage - A fee levied by the shipping company upon the port or supplier for not loading or unloading the vessel by a specified date agreed upon by contract.

D.E.Q. Delivered Ex Quay - indicates that the seller must deliver the goods onto the quay (dock or wharf), having cleared the goods for import and paid all taxes, duties, etc. applicable to that clearance.

Dock Receipt - A receipt issued by an ocean carrier or its agent, acknowledging that a shipment has been delivered and received at the dock or warehouse of the carrier.

Duty - The tax imposed by a government on merchandise imported from another country.

Dead Freight - Is freight charges paid by the charterer of vessel for the contracted space, which is left partially unoccupied.

Dangerous Goods - Articles or substance capable of posing a significant risk to health, safety or property, and that ordinarily require special attention when being transported.

Deck Cargo - Is cargo carried on deck rather than stowed under deck. On deck carriage is required for certain commodities, such as explosives.

Deferred Payment Credit - Type of letter of credit providing for payment some time after presentation of shipping documents by exporter.

Deferred Rebate - The return of a portion of the freight charges by a carrier or a conference shipper in exchange for the shipper giving all or most of his shipments to the carrier or conference over a specified period of time (usually 6 months). Payment of the rate is deferred for a further similar period, during which the shipper must continue to give all or most of his shipments to the rebating carrier or conference. The shipper thus earns a further rebate which will not, however, be paid without an additional period of exclusive or almost exclusive patronage with the carrier of conference. In this way, the shipper becomes tied to the rebating carrier or conference. Although, the deferred rebate system is illegal in U.S. foreign commerce, it generally is accepted in the ocean trade between foreign countries.

Demurrage - A penalty for exceeding free time allowed for loading or unloading at a pier or freight terminal. Also a charge for undue detention of transportation equipment or carriers in port while loading or unloading.

Dock Receipt - When cargo is delivered to a steamship company at the pier, the receiving clerk issues a dock receipt.

Detention - The carrier charges and fees applied when rail freight cars and ships are retained beyond a specified loading or unloading time. Also see: Demurrage, Express.

Dock Receipt - 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.

Door to Door - The through-transport of goods from consignor to consignee.

Door to Port - The through transport service from consignor to port of importation.

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 |

go to top

E.X.W. Ex Works - Indicates that the buyer is responsible for cargo when it's available at the seller's factory.

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.

EDI or EDIFACT - Electronic Data Interchange for Administration, Commerce and Transport, from the UN—backed electronic data interchange standards body, to create electronic versions of common business documents that will work on a global scale. One digital document under consideration, the International Forwarding and Transport Message will do the jobs of six different electronic messages currently in use.

EDIFACT - Electronic Data Interchange for Administration, commerce, and Transport. The United Nations' EDI standard.

EEC - European Economic Community, the European Common Market.

EEU - European Economic Union, the political union of Europe.

ETA - Estimated time of arrival

ETD - Estimated time of departure

EXW, 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.

Embargo - A prohibition upon exports or imports, either with specific products or specific countries

Ex (Point of Origin) - A pricing term under which the seller's only responsibility is to clear the goods for export and make them available to the buyer at an agreed upon location (factory, warehouse, ship, etc.). The buyer then bears the full cost and risk involved in transporting the goods to his desired location. Other terms used are 'Ex Works,' Ex Ship,' and 'Ex Quay.'

Expiration Date - The final date upon which the presentation of documents and drawing of drafts under a letter of credit may be made.

Export Broker - One who brings together the exporter and importer for a fee and then withdraws from the transaction.

Export Declaration - See 'Shipper's Export Declaration.'

Export License - A governmental permit required to export certain products to certain destinations.

Export - To send goods to a foreign country or overseas territory.

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 |

go to top

F.O.B. - Free on Board, as in 'F.O.B. (Vessel),' a pricing term under which the seller must deliver the goods on board the ship at the point named at his own expense. Similar terms are 'F.O.B. (Destination)' and F.O.B. (Named Point of Exportation).'

F.O.B. - Free on Board: Export term in which the price quoted by the exporter does not include the costs of ocean transportation, but does include loading on board the vessel.

FAK, Freight all kinds - a system where freight is charged per container, irrespective of the nature of goods and not according to tariff.

FAS - Free Along Side (of ship).

FEU - Forty-Foot Equivalent Units (Containers).

FIATA - International Federation of Freight Forwarders Associations.

FOB (FREE ON BOARD) - Cost of a product before transportation costs are figured in.

FOR/FOT - FOR and FOT mean 'Free on Rail' and 'Free on Truck.' These terms are synonymous since the word 'truck' relates to the railway wagons. They should only be used when the goods are to be carried by rail.

Feeder Ship - Ships that handle transhipped cargo from one port to another.

First In First Out (FIFO) - In inventory control and financial accounting, this refers to the practice of using stock from inventory on the basis of what was received first and is consumed first. Antonym — Last In First Out.

Flags Of Convenience (FOC) - The registration of ships in a country that offer favourable tax structures and regulations; also the flag representing the nation under whose jurisdiction a ship is registered. Ships are always registered under the laws of one nation but are not always required to establish their home location in that country. FOC states often offer low tax rates and their requirements concerning manning or maintenance are not stringent. The term always denotes registration of vessels in foreign nations.

Force Majeure - Clause limiting responsibilities of charterers, shippers and receiver of cargo

Foreign Trade Zone - An area where goods of foreign origin may be brought in for re—export or transhipment without the payment of customs duty.

Forwarder, Freight Forwarder, Foreign Freight Forwarder - An independent business that dispatches shipments for exporters for a fee. The firm may ship by land, air, or sea, or it may specialize. Usually it handles all the services connected with an export shipment; preparation of documents, booking cargo space, warehouse, pier delivery and export clearance. The firm may also handle banking and insurance services on behalf of a client. The U.S. forwarder is licensed by the Federal Maritime Commission for ocean shipments.

Free Port - An area generally encompassing a port and its surrounding locality into which goods may enter duty—free or subject only to minimal revenue tariffs.

Freight Carriage (and insurance paid to) - Like 'Freight or Carriage paid to...' but with the addition that the seller has to procure transport insurance against the risk of loss of or damage to the goods during the carriage. The seller contracts with the insurer and pays the insurance premium.

Freight Carriage (paid to) - Like C&F 'Freight Carriage paid to...' means that the seller pays the freight for the carriage of the goods to the named destination. However, the risk of loss of or damage to the goods, as well as the risk of any cost increases, is transferred from the seller to the buyer when the goods have been delivered into the custody of the first carrier and not at the ship's rail.

Freight Forwarder - A person or persons who represents the cargo owner and who arranges shipments for that owner.

Freight Forwarder - An agent who assists his exporter client in moving cargo to a foreign destination.

Freight Rate - The charge made for the transportation of freight.

Freight Tonne - The greater weight or measurement of goods where 1 tonne is equal to 1,000kg or 1 cubic metre.

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 |

go to top

GA - General Average

GATT - General Agreement on Tariffs & Trade, an international agreement embodying a code of practice for fair trading in international commerce. Is headquartered in Geneva.

GATT - General Agreement on Tariffs and Trade, a multilateral treaty intended to help reduce trade barriers and promote tariff concessions.

GDP - Gross Domestic Product: The total value of goods and services produced by a nation over a given period, usually 1 year.

GNP - Gross National Product: GDP plus the net income accruing from foreign sources.

General Agreement on Tariffs and Trade (GATT) - The General Agreements on Tariffs and Trade is a multilateral trade treaty among governments, embodying rights and obligations. The detailed rules set out in the Agreement constitute a code which the parties to the Agreement have agreed upon to govern their trading relationships.

General Average - When damage to cargo on board a vessel exceeds carrier's insurance, carrier will release cargo only with an acceptance agreement to claim only a general percentage of all the damage sustained.

General Cargo - A non-bulk oil cargo composed of miscellaneous goods.

General License (Export) - Government authorization to export without specific documentary approval.

Gross & Net Tonnage(GT and NT) - Gross tonnage is the basis on which manning rules and safety regulations are applied, and registration fees are reckoned. Port fees are also often reckoned on the basis of GT and NT. GT and NT are defined according to formulas which take account, among other things, of the volume of the vessel's enclosed spaces (GT) and the volume of its holds (NT).

Gross Weight - Total weight of goods, packing, and container, ready for shipment.

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 |

go to top

Hague Rules - Code of minimum conditions for the carriage of cargo under a bill of lading

Hague Visby Rules - the 1968 revision of the Hague Rules

Harbour Dues - Various local charges levied against all seagoing vessels entering a harbour, to cover maintenance of channel depths, buoys, lights, etc. Not all harbours raise this charge.

Harmonized Code - An internationally accepted and uniform description system for classifying goods for customs, statistical and other purposes.

Harmonized Systems - A key provision of the recently signed trade bill, effective Jan. 1, 1989, that establishes international uniformity for product classifications. Most U.S. Trading partners adopted it a year earlier, and it was drafted in Brussels a decade ago with U.S. representatives' input. In essence, it is a new tariff schedule in that it changes methods of rating some items.

Hatch - An opening, generally rectangular, in a ship's deck providing access into the compartment below.

Hazardous Cargo - All substances of an inflammable, toxic or otherwise dangerous nature.

Hazardous Goods - Articles or substances capable of posing a significant risk to health, safety, or property, and that ordinarily require special attention when transported. Also called Dangerous Goods.

Hold - A general name for the large compartments below the main deck designated for stowage of general cargo.

House Air Waybill (HAWB) - A bill of lading issued by a forwarder to a shipper as a receipt for goods that the forwarder will consolidate with cargo from other shippers for transport.

House Air Waybill - An air waybill issued by a freight consolidator. See Air Waybill

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 |

go to top

I.C.T.F. - Intermodal Container Transfer Facility, an on—dock facility for moving containers from ship to rail or truck.

IATA - International Air Transport Association.

ICAO - International Civil Aviation Organization. A specialized agency of the United Nations, with headquarters in Montreal. Its task is to promote general development of civil aviation (e.g. aircraft design and operation, safety procedures, contractual agreements).

ICC - International Chamber of Commerce

IFF - Institute of Freight Forwarders

IMDG - International Maritime Dangerous Goods Code.

IMF - International Monetary Fund.

IMO - International Maritime Organization: Formerly known as the Inter—Governmental Maritime Consultative Organization (IMCO), was established in 1958 through the United Nations to coordinate international maritime safety and related practices.

ISO 14000 Series Standards - A series of generic environmental management standards under development by the International Organization of Standardization which provide structure and systems for managing environmental compliance with legislative and regulatory requirements and affect every aspect of a company's environmental operations.

ISO 9000 - A series of quality assurance standards compiled by the Geneva, Switzerland—based International Standards Organization. In the United States, ISO is represented by the American National Standards Institute based in Washington, DC.

ISO - International Standards Organization also referred to as the International Organizational for Standardization

Import License - A governmental document which permits the importation of a product or material into a country where such licenses are necessary.

In Bond - A term applied to the status of merchandise admitted provisionally into a country without payment of duties. See 'Bonded Warehouse.'

Inbound logistics - The management of materials from suppliers and vendors into production processes or storage facilities.

Inco Terms - Indicate whether the buyer or the seller carries the risk, responsibility, liability, or costs at specific points during a transaction.

Incoterms - A codification of terms used in foreign trade contracts that is maintained by the International Chamber of Commerce.

Incoterms - Incoterms are a set of uniform rules codifying he interpretation of trade terms defining the rights and obligations of both buyer and seller in an international transaction. The terms recognised by Incoterms 1990 are: EXW — ex works (named place); FCA — Free Carrier (named place); FAS — Free alongside Ship (named port of shipment); FOB — Free on Board (named port of shipment); CFR — Cost & Freight (named port of destination); CIF — Cost, Insurance and Freight (named port of destination); CPT — Carriage Paid To (named point of destination); CIP — Carriage & Insurance Paid To (named point of destination); DAF — Delivered at Frontier (named point); DES — Delivered ex Ship (named port of destination); DEQ — Delivered ex Quay (duty paid) (named port of destination); DDU — Delivered Duty Unpaid (named point); DDP — Delivered Duty Paid (named point).

Inducement - Some steamship lines publish in their schedules the name of a port and the words by inducement in parentheses. This means the vessel will call at the port if there is sufficient amount of profitable cargo available and booked.

Inflammable Liquids - Liquids liable to spontaneous combustion, which gives off inflammable vapours at or below 80 degrees F. For example, ether, ethyl, benzene, gasoline, paints, enamels, carbon disulfide, etc.

Inland Waters - Term referring to lakes, streams, rivers, canals, waterways, inlets, bays and the like.

Insurance Certificate - A document issued by an insurance company, usually to order of shipper, under a marine policy and in cover of a particular shipment of merchandise.

Integrated Logistics - A comprehensive, system—wide view of the entire supply chain as a single process, from raw materials supply through finished goods distribution. All functions that make up the supply chain are managed as a single entity rather than managing individual functions separately.

Intermodalism - The concept of transportation as a door—to—door service rather than port—to—port, using different forms of transportation, i.e. trains, ships, road but usually with a single carrier.

International Waterways - Consist of international straits, inland and interocean canals and rivers where they separate the territories of two or more nations. Provided no treaty is enforced both merchant ships and warships have the right of free and unrestricted navigation through these waterways.

Irrevocable - Applied to letters of credit. An irrevocable letter of credit is one which cannot be altered or canceled once it has been negotiated between the buyer and his bank.

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 |

go to top

Jones Act - Contentious US Merchant Marine Act of 1920, Section 27, requiring that all U.S. domestic waterborne trade be carried by U.S.—flag, U.S.—built, and U.S.—manned vessels.

Just In Time (JIT) - An inventory control system that controls material flow into assembly and manufacturing plants by coordinating demand and supply to the point where desired materials arrive just in time for use. An inventory reduction strategy that feeds production lines with products delivered just in time. Developed by the auto industry, it refers to shipping goods in smaller, more frequent lots.

Just in Time II (JIT II) - Vendor—managed operations taking place within a customer's facility. JIT II was popularized by the Bose Corporation. The supplier reps, called 'inplants,' place orders to their own companies, relieving the customer's buyers from this task. Many also become involved at a deeper level such as participating in new product development projects and manufacturing planning (concurrent planning).

Just-in-Time Logistics (or Quick Response) - The process of minimizing the times required to source, handle, produce, transport, and deliver products in order to meet customer requirements.

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 |

go to top

Key Performance Indicator (KPI) - A measure which is of strategic importance to a company or department. For example, a supply chain flexibility metric is Supplier On—Time Delivery Performance which indicates the percentage of orders that fulfilled on or before the original requested date. Also see - Scorecard.

Knock Down (KD) - An article taken apart, folded or telescoped in such a manner as to reduce its bulk at least 33 1/3% below its assembled bulk.

Knot - Unit of speed in navigation, which is the rate of nautical mile (1,852 metres or 6,080 feet) per hour. i.e. 1.852 km/h.

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 |

go to top

L/C - Letter of Credit — A document issued by a bank per instructions by a buyer of goods, authorizing the seller to draw a specified sum of money under specified terms. Issued as revocable or irrevocable.

LCL - LESS THAN CONTAINER LOAD - A consignment of cargo which is insufficient to fill a shipping container. It is grouped with other consignments for the same destination in a container at a container freight station.

LO-LO - Lift on, lift off; a container ship in which containers are lifted on or off by crane as opposed to Ro—Ro.

LOF - Lloyds Open Form

LOI - Letter of Indemnity

Less than Truck Load (LTL) - Rates applicable when the quantity of freight is less than the volume or truckload minimum weight.

Letter of Credit (Commercial) - Abbreviated 'L/C.' A document issued by a bank at buyer's request in favor of a seller, promising to pay an agreed amount of money upon receipt by the bank of certain documents within a specified time.

Lien - Retention of property until outstanding dept is paid.

Life Cycle Cost - In cost account, a product's life cycle is the period that starts with the initial product conceptualization and ends with the withdrawal of the product from the marketplace and final disposition. A product life cycle is characterized by certain defined stages, including research, development, introduction, maturity, decline, and abandonment. Life cycle cost is the accumulated costs incurred by a product during these stages.

Lighter - General name for a broad, flat—bottomed boat used in transporting cargo between a vessel and the shore. The distinction between a lighter and a barge is more in the manner of use than in equipment. The term 'lighter' refers to a short haul, generally in connection with loading and unloading operations of vessels in harbour, while the term 'barge' is more often used when the cargo is being carried to its destination over a long distance.

Lighterage - Charge for conveying cargo by lighters or barges.

Lightering - Conveying cargo with another vessel known as a lighter from ship to shore, or vice versa.

Liner Service - Vessels operating on fixed itineraries or regular schedules and established rates available to all shippers. The freight rates which are charged are based on the shipping company's tariff or if the company is a member of a liner conference, the tariff of that conference. An agent once compared a Liner Service with a bus service travelling to regular stops at regular times and on a regular turnaround route. See also Non—Liner Service.

Liner - A cargo or passenger-carrying ship which is operated between scheduled, advertised ports of loading and discharge on a regular basis.

Loading Port - The port where the cargo is loaded onto the exporting vessel. This port must be reported on the Shipper's Export Declaration, Schedule D. Schedule D is used by U.S. companies when exporting to determine which tariff is used to freight rate the cargo for carriers with more than one tariff.

Logistics Management as defined by the Council of Supply Chain Management Professionals (CSCMP) — Logistics management is that part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customers' requirements. Logistics management activities typically include inbound and outbound transportation management, fleet management, warehousing, materials handling, order fulfillment, logistics network design, inventory management, supply/demand planning and management of third party logistics services providers. To varying degrees, the logistics function also includes sourcing and procurement, production planning and scheduling, packaging and assembly, and customer service. It is involved in all levels of planning and execution — strategic, operational, and tactical. Logistics management is an integrating function which coordinates and optimizes all logistics activities with other functions, including marketing, sales, manufacturing, finance, and information technology.

Lumpsum Freight - Money paid to shipper for charter of a ship (or portion) up to stated limit irrespective of quantity of cargo.

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 |

go to top

MOA - Memorandum of agreement

Make to Order (Manufacture to Order) - A manufacturing process strategy where the trigger to begin manufacture of a product is an actual customer order or release rather than a market forecast. For make—to—order products, more than 20% of the value added takes place after the receipt of the order or release, and all necessary design and process documentation is available at the time of order receipt.

Make to Stock (Manufacture to Stock) - A manufacturing process strategy where finished product is continually held in plant or warehouse inventory to fulfill expected incoming orders or releases based on a forecast.

Manifest - A document containing a full list of the ship's cargo, extracted from the bills of lading.

Marine Insurance - An insurance which will compensate the owner of goods transported overseas in the event of loss which cannot be legally recovered from the carrier. Also covers air shipments.

Marks and Numbers - Marks and numbers placed on goods used to identify a shipment or parts of a shipment.

Marks - A set of letters, numbers and/or geometric symbols, generally followed by the name of the port of destination, placed on packages for export for identification purposes.

Maturity Date - The date upon which a draft or acceptance becomes due for payment. Most—Favored—Nation Status: All countries having this designation receive equal treatment with respect to customs and tariffs.

Message - The EDIFACT term for a transaction set. A message is the collection of data, organized in segments, exchanged by trading partners engaged in EDI. Typically, a message is an electronic version of a document associated with a common business transaction, such as a purchase order or shipping notice. A message begins with a message header segment, which identifies the start of the message (e.g., the series of characters representing one purchase order). The message header segment also carries the message type code, which identifies the business transaction type. EDIFACT's message header segment is called UNH; in ANSI X12 protocol, the message header is called ST. A message ends with a message trailer segment, which signals the end of the message (e.g., the end of one purchase order). EDIFACT's message trailer is labeled UNT; the ANSI X12 message trailer is referred to as SE.

Multipurpose Ship - Any ship capable of carrying different types of cargo which require different methods of handling. There are several types of ships falling into this category, for example, ships which can carry roll on/roll off cargo together with containers. Ships that are designed to carry both dry, loose cargo and cargo in containers.

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 |

go to top

NVO - Non-vessel-operating common carrier, a ships agent, conducts business for the ship but does not operate the vessel.

NVOCC - Non Vessel Operating (Common) Container Carriers - a carrier issuing bills of lading for carriage of goods on vessels that he neither owns nor operates.

National Flag - The flag carried by a ship to show her nationality.

Nomenclature of the Customs Cooperation Council - This was known as the 'Brussels Classification Nomenclature' prior to January 1, 1975. It is the customs tariff adhered to by most European countries and many other countries throughout the world, but not by the United States.

Non Vessel Operating Common Carrier (NVOCC) - A firm that offers the same services as an ocean carrier, but which does not own or operate a vessel. NVOCCs usually act as consolidators, accepting small shipments (LCL) and consolidating them into full container loads. They also consolidate and disperse international containers that originate at or are bound for inland ports. They then act as a shipper, tendering the containers to ocean common carriers. They are required to file tariffs with the Federal Maritime Commission and are subject to the same laws and statutes that apply to primary common carriers.

Non-Negotiable BOL - Provides for the delivery of goods to a named enterprise and to no one else. Also known as a straight bill of lading.

Non-conference Line - A shipping line which operates on a route served by a liner conference but which is not a member of that conference.

Non-liner Service - A shipping service that does not operate to a fixed itinerary or regular schedule. Someone once compared a non—liner service to a taxi service, going here, going there, anywhere to pick up a farefreight, whereas a Liner Service is like a bus service travelling to regular stops at regular times and on a regular turnaround route. See also Liner Service.

North American Free Trade Agreement (NAFTA) - A free trade agreement, implemented January 1, 1994, between Canada, the United States and Mexico.

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 |

go to top

'On Board' Bill of Lading - A bill of lading in which a carrier acknowledges that goods have been placed on board a certain vessel.

'Order' Bill of Lading - A bill of lading, negotiable, made out to the order of the shipper.

Ocean Bill of Lading - A receipt for cargo in transit, and a contract between the exporter and an ocean carrier for transportation and delivery of goods to a specified party at a specified foreign destination. Issued after the vessel has sailed and the cargo has been entered in the ship's manifest.

Ocean Waybill - A document, issued by a shipping line to a shipper which serves as a receipt for the goods and evidence of the contract carriage.

Open Cargo Policy - Synonymous with 'Floating Policy.' An insurance policy which binds the insurer automatically to protect with insurance all shipments made by the insured from the moment the shipment leaves the initial shipping point until delivered at destination. The insuring conditions include clauses naming such risks insured against as 'perils of the sea,' fire, jettison, forcible theft, and barratry. See >'Perils of the Sea,' 'Barratry,' 'All Risks Clause.'

Open Rates - Pricing systems that are flexible and not subject to conference approval. Usually applied to products in which tramps are substituted for liners.

Open Registry - A term also described as 'flag of convenience' or 'flag of necessity' to denote registry in a country which offers favourable tax, regulatory, and other incentives to ship owners from other nations.

Operator - The holder of a freight contract with a cargo shipper.

Order Management - The planning, directing, monitoring, and controlling of the processes related to customer orders, manufacturing orders, and purchase orders. Regarding customer orders, order management includes order promising, order entry, order pick, pack and ship, billing, and reconciliation of the customer account. Regarding manufacturing orders, order management includes order release, routing, manufacture, monitoring, and receipt into stores or finished goods inventories. Regarding purchase orders, order management includes order placement, monitoring, receiving, acceptance, and payment of supplier.

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

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 |

go to top

P & I Club - Protection and Indemnity Association, the carriers mutual liability assurer.

P & I - Protection and indemnity insurance.

Pallet - A flat tray, generally made of wood but occasionally of steel, on which goods particularly those in boxes, cartons or bags, can be stacked. Its purpose is to facilitate the movement of such goods, mainly by the use of forklift trucks.

Pallet - Load carrying platform to which loose cargo is secured before placing aboard the aircraft

Per Container Rate - Rates and/or changes on shipments transported in containers or trailers and rated on the basis of the category of the container or trailer.

Perishables - Any cargo that loses considerable value if it is delayed in transportation (Usually refers to fresh fruit and vegetables).

Pick List - A list of items to be picked from stock in order to fill an order; the pick list generation and the picking method can be quite sophisticated.

Pick/Pack - Picking and packing immediately into shipment containers.

Picking by Aisle - A method by which pickers pick all needed items in an aisle regardless of the items' ultimate destination; the items must be sorted later.

Picking by Source - A method in which pickers successively pick all items going to a particular destination regardless of the aisle in which each item is located.

Picking - The operations involved in pulling products from storage areas to complete a customer order.

Pilferage - As used in marine insurance policies, the term denotes petty thievery, the taking of small parts of a shipment, as opposed to the theft of a whole shipment or large unit. Many ordinary marine insurance policies do not cover against pilferage, and when this coverage is desired, it must be added to the policy.

Point of Sale Information (POS) - Price and quantity data from the retail location as sales transactions occur.

Pooling - The sharing of cargo or the profit or loss from freight by member lines of a liner conference. Pooling arrangements do not exist in all conferences.

Port Authority - A government body (city, county or state) which in international shipping maintains various airports and/or ocean cargo pier facilities, transit sheds, loading equipment warehouses for air cargo, etc. Has the power to levy dockage and wharfage charges, landing fees, etc.

Port of Discharge - Port where vessel is off loaded and cargo discharges.

Port of Entry - A port at which foreign goods are re—admitted into the receiving country.

Port of Loading - Port where cargo is loaded aboard the vessel lashed and stowed

Power of Attorney - A document that authorizes a customs broker to sign all customs documents on behalf of an importer.

Pre-Advice - Preliminary advice that a letter of credit has been established in the form of a brief authenticated wire message. It is not an operative instrument and is usually followed by the actual letter of credit.

Pre-Slung Cargo - Cargo shipped already in a cargo sling or net. Usually prepared and loaded at pier ready for arrival of vessel and subsequent loading (i.e. coffee in bags, coconut shells, etc).

Prepaid Freight - Generally speaking, freight charges both in ocean and air transport may be either prepaid in the currency of the country of export or they may be billed collect for payment by the consignee in his local currency. However, on shipments to some countries freight charges must be prepaid because of foreign exchange regulations of the country of import and/or rules of steamship companies or airlines.

Pro Forma Invoice - An invoice forwarded by the seller of goods prior to shipment to advise the buyer of the weight and value of the goods.

Procurement - The business functions of procurement planning, purchasing, inventory control, traffic, receiving, incoming inspection, and salvage operations.

Proforma - When used with the title of a document, the term refers to an informal document presented in advance of the arrival, or preparation of the required document, in order to satisfy a customs requirement.

Proof of Delivery (POD) - 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. POD is also sometimes used to refer to the process of printing materials just prior to shipment (Print on Demand).

Proof of Delivery - Add-on service in express market, delivered either by phone or courier. Often offered free.

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.

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 |

go to top

Quota - The total quantity of a product or commodity which may be imported into a country without restriction or the penalty of additional duties or taxes.

Quotation - An offer to sell goods at a stated price and under stated terms

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

go to top

Radio Frequency (RF) - A form of wireless communications that lets users relay information via electromagnetic energy waves from a terminal to a base station which is linked, in turn, to a host computer. The terminal can be placed at a fixed station, mounted on a forklift truck, or carried in a worker's hand. The base station contains a transmitter and receiver for communication with the terminal. RF systems use either narrow—band or spread—spectrum transmissions. Narrow—band data transmissions move along a single limited radio frequency, while spread—spectrum transmissions move across several different frequencies. When combines with a bar code system of identifying inventory items, a radio frequency system can relay data instantly, thus updating inventory records in so—called real time.

Radio Frequency Identification (RFID) - The use of radio frequency technology such as RFID tags and tag readers to identify objects. Objects may include virtually anything physical, such as equipment, pallets of stock, or even individual units of product.

Rate of Exchange - The basis upon which money of one country will be exchanged for that of another. Rates of exchange are established and quoted for foreign currencies on the basis of the demand, supply, and stability of the individual currencies. See 'Exchange.'

Receiving Dock - Distribution center location where the actual physical receipt of the purchased material from the carrier occurs.

Reefer Box - An insulated shipping container designed to carry cargoes requiring temperature control. It is fitted with a refrigeration unit, which is connected to the ship's electrical power supply.

Replenishment - The process of moving or resupplying inventory from a reserve (or upstream) storage location or facility to a primary (or downstream) storage or picking location, or to another mode of storage in which picking is performed.

Request for Information (RFI) - A document used to solicit information about vendors, products, and services prior to a formal RFQ/RFP process.

Request for Proposal (RFP) - A document which provides information concerning needs and requirements for a manufacturer. This document is created in order to solicit proposals from potential suppliers. For example, a computer manufacturer may use an RFP to solicit proposals from suppliers of third party logistics services.

Request for Quote (RFQ) - A document used to solicit vendor responses when a product has been selected and price quotations are needed from several vendors.

Return Cargo - A cargo which enables a ship to return loaded to the port or area where her previous cargo was loaded.

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 for repair and/or credit.

Revocable - Applied to letters of credit. A revocable letter of credit is one which can be altered or canceled by the buyer after he has opened it through his bank. See 'Irrevocable.'

Ro/Ro Ship - Freight ship or ferry with facilities for vehicles to drive on and off (roll—on roll—off); a system of loading and discharging a ship whereby the cargo is driven on and off on ramps. Equipped with large openings at bow and stern and sometimes also on the side, providing easy access. Fully loaded trucks or trailers carrying containers are accommodated on the deck.

Rolling Cargo - Cargo which is on wheels, such as truck or trailers, and which can be driven or towed on to a ship.

Royalty Payment - The share of the product or profit paid by a licensee to his licenser. See 'Licensing.'

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 |

go to top

S.L. & C. - Shipper's Load and Count

S.L. & T. - Shipper's Load and Tally

SCOR - Supply Chain Operations Reference Model. This is the model developed by the Supply—Chain Council (SCC), and is build around six major processes: plan, source, make, deliver, return, and enable. The aim of the SCOR is to provide a standardized method of measuring supply chain performance, and to use a common set of metrics to benchmark against other organizations.

Sanitary Certificate - A certificate which attests to the purity or absence of disease or pests in the shipment of food products, plants, seeds, and live animals.

Schedule B - Refers to 'Schedule B, Statistical Classification of Domestic and Foreign Commodities Exported from the United States.' A seven—digit Schedule B number must be entered on the shipper's U.S. Export Declaration for every commodity shipped.

Schedule B - Refers to 'Schedule B, Statistical Classification of Domestic and Foreign Commodities Exported from the United States.' Being replaced under the Harmonized System.

Service Contract - A contract between a shipper and an ocean carrier of conference, in which the shipper makes a commitment to provide a minimum quantity of cargo over a fixed time period.

Service - The defined, regular pattern of calls made by a carrier in the pick—up and discharge of cargo.

Shifting - This refers to movements or changing positions of cargo from one place to another — a dangerous situation at sea that can easily endanger the seaworthiness or cargo worthiness of the ship.

Shipment - Freight tendered to a carrier by one consignor at one piece at one time for delivery to one consignee at one place on one bill of lading.

Shipper's Export Declaration - A form required by the Treasury Department and completed by a shipper showing the value, weight, consignee, destination, etc., of export shipments as well as Schedule B identification number.|

Shipper's Export Declaration - A form required by the U.S. Treasury Department and completed by a shipper showing the value, weight, consignee, destination, etc., of export shipments as well as Schedule B identification number.

Shipper - Individuals or businesses who tender goods or cargo for transportation — usually the cargo owners or their representatives and not to be confused with the party issuing the bills of lading or the ship's operator who is the carrier..

Shipper - Term used to describe exporter. Mostly manufacturing companies.

Shipping Documents - Commercial invoices, bills of lading, insurance certificates, consular invoices, and related documents.

Short-Shipped - Cargo manifested but not loaded.

Split Delivery - A method by which a larger quantity is ordered on a purchase order to secure a lower price, but delivery is divided into smaller quantities and is spread out over several dates to control inventory investment, save storage space, etc.

Stock-Keeping Unit (SKU) - A category of unit with a unique combination of form, fit, and function (i.e., unique components held in stock). To illustrate - If two items are indistinguishable to the customer, or if any distinguishing characteristics visible to the customer are not important to the customer so that the customer believes the two items to be the same, these two items are part of the same SKU. As a further illustration - consider a computer company that allows customers to configure a complete computer from a selection of standard components. For example, they can choose from three keyboards, three monitors, and three CPUs. Customers may also individually buy keyboards, monitors, and CPUs. If the stock were held at the configuration component level, the company would have nine SKUs. If the company stocks at the component level, the company would have 36 SKUs. (9 component SKUs + 3*3*3 configured product SKUs.) If, as part of a promotional campaign, the company also specially packaged the products, the company would have a total of 72 SKUs.

Stowage Factor - Cubic space (measurement tons occupied by one tonne of cargo).

Stowage - The lacing of cargo in a vessel in such a manner as to provide the utmost safety and efficiency for the ship and the goods it carries

Stowage - The placing of goods in a ship in such a way as to ensure the safety and stability of the ship not only on a sea or ocean passage but also while in port when parts of the cargo have been loaded or discharged.

Stuffing (Or Stripping) - the act of packing or unpacking a container.

Supply Chain Execution (SCE) - The ability to move the product out of the warehouse door. This is a critical capacity and one that only brick—and—mortar firms bring to the B2B table. Dot coms have the technology, but that's only part of the equation. The need for SCE is what is driving the dot coms to offer equity partnerships to the wholesale distributors.

Supply Chain Management (SCM) - as defined by the Council of Supply Chain Management Professionals (CSCMP): Supply chain management encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activites. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third party service providers, and customers. In essence, supply chain management integrates supply and demand management within and across companies. Supply chain management is an integrating function with primary responsibility for linking major business functions and business processes within and across companies into a cohesive, high—performing business model. It includes all of the logistics managment activities noted above, as well as manufacturing operations, and it drives coordination of processes and activities with and across marketing, sales, product design, finance, and information technology.

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 |

go to top

Calculation - [Order Management Costs + Material Acquisition Costs + Inventory Carrying Costs + Supply—Chain Related Finance and Planning Costs + Total Supply Chain—Related IT Costs]/[Total Product Revenue]

T.B.L.- Through bill of lading - Tally Sheet — List of cargo, incoming and outgoing, checked by Tally clerk on dock.

TEU - Twenty Foot Equivalent Unit (containers): A measurement of cargo—carrying capacity on a containership, referring to a common container size of 20 ft in length. A 40ft long container is measured as being 2TEU.

TEU - Twenty foot equivalent.

THC - Terminal-handling charge, raised at port terminals for the handling of cargo.

Tare Weight - The weight of packing and containers without the goods to be shipped.

Tare Weight - The weight of the container and/or packing materials only — excluding the weight of the goods inside the container.

Tariff - A general term for any listing of rates, charges, etc. the tariffs most frequently encountered in foreign trade are tariffs of the international transportation companies operating on sea, on land, and in the air; tariffs of the international cable, radio, and telephone companies; and the customs tariffs of the various countries, which list goods that are duty free and those subject to import duty, giving the rate of duty in each case. There are various classes of customs duties.

Tariff - Terms and conditions and scale of charges.

Temperature Controlled Cargo - Any cargo requiring carriage under controlled temperature

Terminal - the business unit in ports where specific cargo, i.e. containers are handled.

Third Party Logistics Provider (3PL) - A firm which provides multiple logistics services for use by customers. Preferably, these services are integrated or bundled together, by the provider. These firms facilitate the movement of parts and materials from suppliers to manufacturers, and finished products from manufacturers, and finished products from manufacturers to distributors and retailers. Among the services they provide are transportation, warehousing, cross docking, inventory management, packaging, and freight forwarding.

Third Party Logistics - Outsourcing all or much of a company's logistics operations to a specialized company.

Total Cost of Ownership (TCO) - Total cost of a computer asset throughout its life cycle, from acquisition to disposal. TCO is the combined hard and soft costs of owning networked information assets. 'Hard' costs include items such as the purchase price of the asset, implementation fees, upgrades, maintenance, contracts, support contracts, disposal costs, and license fees that may or may not be up—front or charged annually. These costs are considered 'hard costs' because they are tangible and easily accounted for.

Total Supply Chain Management Cost (five elements) - Total cost to manage order processing, acquire materials, manage inventory, and manage supply chain finance, planning, and IT costs as represented as a percent of revenue. Accurate assignment of IT—related cost is challenging. It can be done using activity—based costing methods, or more traditional—based approaches. Allocation based on user counts, transaction counts, or departmental headcounts are reasonable approaches. The emphasis should be on capturing all costs, whether incurred in the entity completing the survey or in a supporting organization on behalf of the entity. Reasonable estimates founded in data were accepted as means to assess overall performance. All estimates reflected fully—burdened actuals inclusive of salary, benefits, space and facilities, and general and administrative allocations.

Tracking and Tracing - Monitoring and recording shipment movements from origin to destination.

Tracking - A carrier's system of recording movement intervals of shipments from origin to destination.

Trading Limits - Maritime area usually specified by range of ports in which a vessel may operate

Transit Time - The total time that elapses between a shipment's pickup and delivery.

Transportation Planning - The process of defining an integrated supply chain transportation plan and maintaining the information which characterizes total supply chain transportation requirements, and the management of transporters, both inter — and intra — company.

Transshipment - The transfer of a shipment from one carrier to another in international trade, most frequently from one ship to another. In as much as the unloading and reloading of delicate merchandise is likely to cause damage, transshipments are avoided whenever possible.

Truckload - Truckload rates apply where the tariff shows a truckload minimum weight. Charges will be at the truckload minimum weight unless weight is higher.

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 |

go to top

UNCTAD - United Nations Conference on Trade & Development.

Unitisation - The packing of single or multiple consignments into ULDs or pallets.

UNECE - United Nations Economic Commission for Europe.

Unit Cost - The cost associated with a single unit of product. The total cost of producing a product or service divided by the total number of units. The cost associated with a single unit of measure underlying a resource, activity, product, or service. It's calculated by dividing the total cost by the measured volume. Unit cost measurement must be used with caution as it may not always be practical or relevant in all aspects of cost management.

United Nations Standard Product and Service Code (UN/SPSC) - Developed jointly between the United Nations and Dun & Bradstreet (D&B). It has a five—level coding structure (segment, family, class, commodity, business function) for nearly 9,000 products.

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 |

go to top

VAT (Value—Added Tax) - A sales or consumption tax which the end user pays. Typically, this is a 'hidden' tax, added to the list price of the goods in question.

VLCS - Very Large Container Ship — a container vessel able to carry 8000 and more TEU. By mid 2007 a number of VLCS ships had a reported capacity in excess of 13,000—TEU.

VSA - Vessel Sharing Agreement.

Valuation Charges - Transportation charges to shippers who declare a value of goods higher than the value of the carriers' limits of liability.

Value Chain - A series of activities, when combined, define a business process; the series of activities from manufacturers to the retail stores that define the industry supply chain.

Vendor-Managed Inventory (VMI) - The practice of retailers making suppliers responsible for determining order size and timing, usually based on receipt of retail POS and inventory data. Its goal is to increase retail inventory turns and reduce stock outs.

Visibility - The ability to access or view pertinent data or information as it relates to logistics and the supply chain, regardless of the point in the chain where the data exists.

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 |

go to top

W/M - Weight and/or measurement

W/R - Warehouse receipt

War Risk Insurance - Insurance issued by marine underwriters against war—like operations specifically described in the policy. In former times, war risk insurance was taken out only in times of war, but currently many exporter cover most of their shipments with war risk insurance as a protection against losses from derelict torpedoes and floating mines placed during former wars, and also as a safeguard against unforeseen warlike developments. In the United states, war risk insurance is written in a separate policy from the ordinary marine insurance; it is desirable to take out both policies with the same underwriter in order to avoid the ill effects of a possible dispute between underwriters as to the cause (marine peril or war peril) of a given loss.

War Risk - The possible aggressive actions against a ship and its cargo by a belligerent government. This risk can be insured by a marine policy with a risk clause

Warehouse Management System (WMS) - The systems used in effectively managing warehouse business processes and direct warehouse activities, including receiving, putaway, picking, shipping, and inventory cycle counts. Also includes support of radio frequency communications, allowing real—time data transfer between the system and warehouse personnel. they also maximize space and minimize material handling by automating putaway processes.

Warehouse Receipt - A receipt of commodities deposited in a warehouse, identifying the commodities deposited. It is non—negotiable if permitting delivery only to a specified person or firm, but it is negotiable if made out to the order of a person or firm or to a bearer. Endorsement (without endorsement if made out to bearer) and delivery of a negotiable warehouse receipt serves to transfer the property covered by the receipt serves to transfer the property covered by the receipt. Warehouse receipts are common documents in international banking.

Waybill - A non-negotiable document that acts as a receipt for the goods and evidence of the contract of carriage.

Waybill - Document containing description of goods that are part of common carrier freight shipment. Shows origin, destination, consignee/consignor, and amount charged. Copies travel with goods and are retained by originating/delivering agents. Used by carrier for internal record and control, especially during transit. Not a transportation contract.

Weight - (a) Gross - The weight of the goods including packing, wrappers, or containers, internal and external. The total weight as shipped (b) Net — The weight of the goods themselves without the inclusion of any wrapper (c) Tare — The weight of the packaging or container (d) Weight / Measurement Ton — In many cases, a rate is shown per weight/measurement ton, carrier's option. This means that the rate will be assessed on either a weight ton or measurement ton basis, whichever will yield the carrier the greater revenue. As example, the rate may be quoted on the basis of 2,240 pounds or 40 cubic feet or of 1 metric ton or 1 cubic meter (e) Weight Ton — There are three types of weight ton; the short ton, weighing 2,000 pounds; the long ton, weighing 2,240 pounds; and the metric ton weight 2,204.68 pounds. The last is frequently quoted for cargo being exported from Europe.

Weight Load Factor - Payload achieved as against available, expressed as a percentage. Cargo is frequently limited by volume rather than weight; load factors of 100% are rarely achieved.

World Trade Organization (WTO) - An organization established on January 1, 1995 replacing the previous General Agreement on Tariffs and Trade GATT that forms the cornerstone of the world trading system.

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 |

go to top