Industry Terms

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A

A-1: Term used to signify a first class ocean vessel.
A/P: Abbreviation for AUTHORITY TO PAY.
AACO: See Arab Air Carriers Organization.
AAD: See ADVANCE AGAINST DOCUMENTS.
AAR: See ASSOCIATION OF AMERICAN RAILROADS.
AB: The abbreviation for Aktiebolaget, a joint stock company in Sweden. Also AKTB.
ABANDONMENT: 1) Proceeding where a carrier seeks authorization to stop service over all or part of its route/line or to give up ownership/control of cargo or vessel. 2) Shipper or consignee relinquishes damaged freight to carrier or refuses to accept delivery. 3) In marine insurance, giving up title to partly destroyed property to the insurers. 4) The act of relinquishing title to damaged or lost property in order to claim a total loss.
ABS: See AMERICAN BUREAU OF SHIPPING.
ABI: See Automated Brokerage Interface.
ABC analysis: The classification of items in an inventory according to importance defined in terms of criteria such as sales volume and purchase volume.
ABSOLUTE LIABILITY: Condition in which carrier is responsible for all liability and is not protected by the normal exemptions found in the Bill of Lading or common law liability.
ABSORPTION: Acceptance by a carrier of a portion of a joint rate or change which is less in amount than that which it would receive for the service in the absence of such joint rate or charge.
ABSTRACT: Abridgement of evidence omitting non-essential items. Used especially in regulatory proceedings.
ACCEPTANCE: 1) Acknowledged receipt by consignee of a shipment terminating the common carrier’s contract. 2) A promise to pay usually evidenced by inscribing across the face of the bill “accepted“, followed by the date, the place payable and the acceptor’s signature. (Broadly speaking, any agreement to purchase goods under specified terms. An agreement to purchase goods at a state price and under stated terms.)
ACCESSORIAL CHARGES: Charges for supplementary services and privileges provided in connection with line-haul transportation of goods. These charges are not included in the freight charge and usually take the form of a flat fee. Some examples are pickup/delivery, in-transit privileges, demurrage, switching, loading/unloading, weighing, storage, inspection, grading, repackaging, billing, fabrication, etc.
ACCESSORIAL SERVICES: Services performed in addition to the normal transportation service. Common accessorial services include advancement of charges, pickup, delivery, COD Service, signature service, storage etc.
ACCOUNT NUMBER- An identifying number issued to identify a shipper and/or consignee. The number ensures accurate invoicing procedures and customer traffic activity.
ACH: See Automated Clearinghouse
ACI: See AIR CARGO, INC. or Airports Council International.
ACS –See Automated Commercial System
ACT OF GOD: Operation of an uncontrollable natural force. A natural event, not preventable by any human agency, such as flood, storms, or lightning. Forces of nature that a carrier has no control over, and therefore cannot be held accountable.
Activity-based costing: An accounting system based on the true cost of specific activities performed in an organization.
ACTUAL GROSS WEIGHT: The sum of the container weight, tractor pulling it and the payload contained in it.
ACTUAL PAYLOAD: Actual weight of commodity being transported (actual gross weight minus tare weight).
ACTUAL VALUATION: Actual value of goods shown on Bill of Lading by shipper when rate to be applied depends on value.
AD HOC: Latin phrase meaning “for this”. In business used to indicate a single end or purpose, a onetime application e.g., an “ad hoc” investigating committee.
Ad Hoc Charter: A one-off charter operated at the necessity of an airline or charterer.
AD VALOREM: Latin phrase meaning “according to value”. Freight rates set at a certain fixed percentage of the value of articles. E.g. The wholesale price of the articles, are known as “ad valorem” rates.
AD VALOREM DUTY: Tax imposed on imported merchandise assessed as a percentage of its value.
ADB: See Asian Development BANK
ADD-ON: A term equivalent to proportional, arbitrary or construction rate.
Admiralty Court: A court having jurisdiction over maritime questions pertaining to ocean transport, including contracts, charters, collisions, and cargo damages.
ADP: Abbreviation for “Automated Data Processing”.
ADVANCE AGAINST DOCUMENTS (AAD): A loan made on the security of the actual documents covering a shipment.
ADVANCE ARRANGEMENTS- The shipment of certain classes of commodities in air freight-examples: gold, precious gems, furs, live animals, human remains, and oversized shipments- require arrangements in advance with carriers: The shipper or it’s agent must contact the carrier prior to tendering the consignment.
ADVANCE FREIGHT: Partial payment of the Bill of Lading freight in advance. In other respects is the same as guaranteed freight.
ADVANCED CHARGE: Freight or charge on a shipment that is advanced by one transportation company or another, or to the shipper, to be collected from the consignee.
Advanced Technology Products: About 500 commodity classification codes used in reporting U.S. merchandise trade are classified as "Advanced Technology" which meet the following criteria: The technology is from a recognized high technology field, the products employ leading edge technology in that field; and such products constitute a significant part of all items covered in the commodity classification code.
ADVANCEMENT OF CHARGES: A service under which carriers, in some instances, pay incidental charges. Examples would include cartage and warehousing costs. These charges can be in advance for the convenience of either the shipper or their receiver. Generally abbreviated “PBA” (“Paid by Agent”) on Air Waybills.
ADVICE OF SHIPMENT: Notice to local or foreign party that shipment has occurred with details of packing, routing, etc. A copy of the invoice is usually enclosed and sometimes a copy of the Bill of Lading.
Advising Bank: A bank that receives a Letter of Credit from an issuing bank, verifies its authenticity and forwards the original Letter of Credit to the exporter without obligation to pay.
ADVISORY CAPACITY: A term used when the powers of a shipper’s agent or representative aboard are limited and he is not authorized to make definite decisions and adjustments without reference to his principals.
AERP: See Automated Export Reporting Program
AEV: See ARTICLES OF EXTRAORDINARY VALUE.
AFFIDAVIT: Written statement which must be witnessed and sworn to before a notary public or other officer who has authority to administer oaths or affirmations.
Affiliate: A company that controls, or is controlled by another company, or is one of two or more commonly controlled companies.
AFLOAT: Commodities underway in water transit, either actually aboard vessels at sea or in port but not yet unloaded.
AFTER DATE: When a DRAFT bears this phrase, the time begins to run its date. The date of maturity is therefore fixed and does not depend upon presentation or acceptance.
AFTER SIGHT: When a DRAFT bears this phrase, the time begins to run from its presentation or acceptance.
AG: The abbreviation for Aktien-Gesellschaft, a joint stock company in Germany.
AGAINST: In international trade, used as a synonym for “upon”.
Agency Agreement: The steamship line appoints the steamship agent and defines the specific duties and areas of responsibility of that agent.
AGENT: 1) A person or organization authorized to act and/or transact business for and in the name of another person or organization. 2) A broker.
Agent of Change: The professional who lobbies for new ways of doing business.
AGGREGATED SHIPMENTS: Several shipments from different shippers to a single consignee, consolidated and treated as single consignment.
AGIO: Premium paid for exchange of one currency for another.
AGVS: See automated guided vehicle system.
AIR CARGO: Any property (freight, mail, express) carried or to be carried in an aircraft. Does not include passenger baggage.
AIR CARGO, INC. (ACI): A ground service corporation established and jointly owned by the United States scheduled airlines. In addition to its airline owners, ACI also serves over 30 air freight forwarders and international air carriers. One of ACI’s major functions is to facilitate the surface movement of air freight by negotiating and supervising the performance of a nationwide series of contracts under which trucking companies provide both local pickup and delivery service at airport cities and over-the-road truck service to move air freight to and from points not directly served by the airlines. ACI publishes a directory of these trucking services, listing over 19,000 points served in the United States and the applicable pickup and delivery rates. Other services include claims inspection, terminal handling, telemarketing service, and group purchasing (equipment, supplies, insurance). ACI also makes available, in many cities, low cost, disposable containers for shippers' use. For further information: 1819 Bay Ridge Avenue, Annapolis, MD 21403
AIR CARGO GUIDE: A basic reference publication for shipping freight by air. It contains current domestic and international cargo flight schedules, including pure cargo, wide body and combination passenger-cargo flights. Each monthly issue also contains information on air carriers' special services, labeling, airline and aircraft decoding, air carrier and freight forwarders directory, cargo charter information, United States and Canadian city directory small package services, interline air freight agreements, aircraft loading charts and more. For information: 2000 Clearwater Drive, Oak Brook, IL 60521-9953.
AIR EXPRESS: A term often used to describe expedited handling of air freight service. See also PRIORITY AIR FREIGHT.
AIR FREIGHT: A service provided for the transport of goods in any volume. Air freight is by far, the predominant form of air cargo and accounts for over 80% of all air cargo movements. Each shipper's decision to move goods by air turns on one or more of these basic factors: The time factor, inventory control, superior condition of goods upon arrival or lower shipping costs. Increasingly, the decision to ship by air is a market oriented decision and hence, a consumer oriented decision.
AIR FREIGHT FORWARDER: Serves a dual role. The air freight forwarders are, to the shipper, an indirect carrier because they receive freight from shippers under their own tariff usually consolidating it into larger units which is tendered to the airlines. To the airlines, the air freight forwarder is a shipper. An air freight forwarder is ordinarily classed as an indirect air carrier. However, several air freight forwarders operate their own aircraft.
AIR PARCEL POST- Term commonly used for priority mail which consists of first class mail weighing more than 13 ounces. Priority mail is another economical and expedited service for the shipping of parcels by air.
air taxi: An exempt for-hire air carrier that will fly anywhere on demand. Air taxis are restricted to a maximum payload and passenger capacity per plane.
AIR TRANSPORT ASSOCIATION OF AMERICA (ATA): The trade and service organization for the U.S. Scheduled airlines. The ATA acts on behalf of the airlines to serve the Government and the public in activities ranging from improvement in air safety to planning for the airlines' role in national defense. The ATA plays a leading role in encouraging Government to cut red tape that hampers foreign trade. In the cargo field, the ATA works with the airlines, the Government and shippers in developing improved standards and techniques in all phases of air cargo. The ATA is an authoritative source of information on cargo matters ranging from air freight packaging practices, automation, freight lift capacity, data on air freight growth and statistical data on air cargo services. For information: 1709 New York Avenue NW, Washington, DC 20006-5206.
Air Transport Action Group (ATAG): An independent coalition of organizations from throughout the air transport industry which have united to press for economically beneficial aviation capacity improvements in an environmentally responsible manner.
Air Transport Association (ATA): Founded by a group of 14 airlines meeting in Chicago in 1936, it was the first, and today remains the only trade organization for the principal U.S. airlines.
AIR TRANSPORT COMMITTEE: A Canadian government agency responsible for the economic and general welfare of air transport within Canada. For information: 15 Eddy Street, Ottawa, Ontario, Canada KIA 0N9.
AIR WAYBILL (AIRBILL): Shipping document used by the airlines for air freight. It is a contract for carriage that includes carrier conditions of carriage including such items as limits of liability and claims procedures. The air waybill also contains shipping instructions to airline, a description of the commodity, and applicable transportation charges. Air waybills can be used by many truckers as through documents for coordinated air-truck service. Air waybills are not negotiable. The airline industry has adopted a standard formatted air waybill that accommodates both domestic and international traffic. The standard document was designed to enhance the application of modern computerized systems to air freight processing for both the carrier and the shipper. Normally, an Air Waybill refers to the Air Waybill issued by carrying airlines and also called Master Air Waybill (MAWB) which comes with three digits of numeric airline identification codes issued by IATA to non-U.S. based airlines and Air Transport Association of America to U.S. based airlines. However, air freight forwarders also issue HAWB (House Air Waybill) to their customers for each of the shipments.
AIRBILL: See AIR WAYBILL.
Aircraft Container: A unit load device (ULD) which links directly with the airplane cargo handling and restraint system.
AIRCRAFT PALLET: The use of a platform or pallet (in air freight usually from ¾ “ to 2” thick) upon which unitized shipment rests or on which goods are assembled and secured before being loaded as a unit onto the aircraft. Most carriers offer container discounts for palletized loads. Palletization results in more efficient use of space aboard freighter aircraft and better cargo handling, particularly when used as part of mechanized systems employing such other advances as pallet loaders and pallet transporters. See also PALLET.
Airline Group of the International Federation of Operational Research Societies: A society with the avowed purpose of forwarding the practice of Operational Research in airlines. The membership consists of Operational Research workers who are also employed by recognized civil airlines.
Airfreightment: An agreement by a steamship line to provide cargo space on a vessel at a specified time and for a specified price to accommodate an exporter or importer, who then becomes liable for payment even though he is later unable to make the shipment.
AIRLINE TARIFF PUBLISHING COMPANY (ATPCO): Publisher of airline industry tariffs setting forth rates and rules applicable to air freight as well as fares for passengers. Tariffs are available on a subscription basis. Subscriptions include an up-to-date copy of the tariffs for new subscribers. For information: 400 West Service Road, Chantilly, VA 22021.
AIRMAIL: The term "airmail," as a class of mail, is used only in international postal service. Within the United States, the U.S. Postal Service moves all first class mail, priority mail, and express mail by air where this will expedite delivery.
Airlines Reporting Corporation (ARC): Since 1964, ARC's Area Settlement Plan (ASP) provides ARC accredited travel agency locations in the USA with a ticketing, reporting, and settlement link to ARC's participation carriers. Incorporated in 1984 and currently operating under the theme of Building an Electronic System, ARC provides its services to approximately 46,000 agency locations (of which 33,000 are retail locations) and 136 air and rail carriers.
Airport and Airway Trust Fund: A federal fund that collects passenger ticket taxes and disperses those funds for airport facilities.
Airports Council International (ACI): The Airports Council International is the "Voice of the World's Airports" representing over 1,200 airports across 150 countries.
AIRPORT MAIL FACILITY (AMF): A U S Postal Service facility located on or adjacent to an airport that is primarily engaged in the dispatch, receipt and transfer of mail directly with air carriers
AIRWORTHINESS CERTIFICATION: Documentation to show that aircraft or components comply with all the airworthiness requirements related to its use as laid down by the regulatory authorities for the country in which the aircraft is registered.
AIS: See ALBION INTERNATIONAL SERVICES, INC. Also abbreviation for “Automated Information System”.
AIT: See American Institute in Taiwan
AKTB: See AB.
AKTS: See AS.
ALL-COMMODITY RATE: 1) Usually a carload/truckload rate applicable to multiple shipments which move at one time in one vehicle from the consignor to the consignee. 2) “freight-all-kinds” or FAK rate. 3) An all-commodity rate is established based on actual transportation cost rather than “Value of service”.
ALL-CARGO AIRCRAFT: An aircraft for the carriage of cargo only rather than the combination of passengers and cargo. The all-cargo aircraft will carry traffic in bulk or container in the main deck as well as in the lower deck of the aircraft. It may include a scheduled and non-scheduled service.
All-Risk Clause: An insurance provision that all loss or damage to goods is insured except that of inherent vice (self caused). See All-Risk Insurance.
All Risks Coverage: A type of marine insurance, is the broadest kind of standard coverage, but excludes damage caused by war, strikes, and riots. The broadest form of coverage available, providing protection against all risks of physical loss or damage from any external cause. Does not cover loss or damage due to delay, inherent vice, pre-shipment condition, inadequate packaging, or loss of market.
ALL-RISK INSURANCE: Names given to a policy which covers against loss caused by all perils except those which are specifically excluded in the terms of the policy. This is the broadest form of coverage available, providing protection against all risks of physical loss or damage from any external cause. Does not cover loss or damage due to delay, inherent vice, pre-shipment condition, inadequate packaging, or loss of market. Ordinary policies name the peril or perils specifically covered in the policy.
ALLONGE: A slip of paper attached to a BILL OF LADING, ACCEPTANCE or NOTE for the purposes of providing space for additional endorsements.
ALLOWANCE: Deduction from the weight or value of goods, allowed if a carrier fails to provide necessary equipment and that equipment is furnished by the shipper.
ALONGSIDE: Point of delivery beside a vessel. Statement designating where the title to goods passes from party to another. Normally, 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 aboard the ship. Also, goods delivered to the port of embarkation, but without loading fees.
AMTD: Abbreviation for “Automatic Magnetic Tape Distribution”
ALTERNATE ROUTING: Routing that is less desirable than the normal but results in identical terms.
AMERICAN BUREAU OF SHIPPING (ABS): Organization for classification of vessels, control of construction specifications and examination of seaworthiness.
American Institute in Taiwan: The AIT is a non-profit corporation that represents U.S. commercial, cultural, and other interests in Taiwan in lieu of an embassy. In 1979, the United States terminated formal diplomatic relations with Taiwan when it recognized the People's Republic of China as the sole legal government of China. AIT was authorized to continue commercial, cultural and other relations between the United States and Taiwan. AIT headquarters are located in Arlington, Virginia; constituent offices are in Taipei and Kaohsiung, Taiwan.
AMERICAN SOCIETY OF TRAFFIC & TRANSPORTATION (AST&T): Examining and certifying organization which aims for professionalism in the traffic and transportation field.
American Society of Transportation & Logistics: A professional organization in the field of logistics.
AMERICAN TRUCKING ASSOCIATION (ATA): National federation of the US trucking industry comprised of 51 state trucking associations (including Washington DC) and independent conferences, each representing a special class/type of trucking operation.
AMERICAN WAREHOUSEMEN’S ASSOCIATION (AWA): Voluntary organization of warehousemen established to assure high standards in the industry.
AMERICAN WATERWAY OPERATORS: A domestic water-carrier industry association representing barge operators on the inland waterways.
AMF: See AIRPORT MAIL FACILITY.
AMR: See ALBION MANAGEMENT RESOURCES, INC.
AMS: See Automated Manifest System
AMTRAK: The National Railroad Passenger Corporation. A federally created corporation that operates most of the US inter-city passenger rail service.
ANCILLARY EQUIPMENT: Equipment used to build up a palletized load or to convey an ULD outside an aircraft. See also AIRCRAFT PALLET.
ANIMAL CONTAINERS: The use of air freight as a means of transporting household pets led to the development of special containers designed to provide adequate protection and air circulation. Such containers may be purchased or rented from many carriers.
ANSI: Abbreviation for “American National Standards Institute”
Antidumping: Antidumping, as a reference to the system of laws to remedy dumping, is defined as a converse of dumping.
Antidumping Duty: A duty assessed on imported merchandise which is subject to an antidumping duty order. The antidumping duty is assessed on an entry-by-entry basis in an amount equal to the difference between the United States price of that entry and the foreign market value of such or similar merchandise at the time the merchandise was sold to the United States.
Antidumping Petition: A petition filed on behalf of an affected United States industry, alleging that foreign merchandise is being sold in the United States at "less than fair value" and that such sales are causing or threatening material injury to, or materially retarding the establishment of, a United States industry.
any-quantity rate: A rate that applies to any size shipment tendered to a carrier. No discount rate is available for large shipments.
APEC: See Asia Pacific Economic
APPARENT GOOD ORDER: Statement denoting that goods are free from damage and in good condition, as far as their external appearance is concerned.
AQMS: see Albion Quality Management Systems, Inc.
Arab Air Carriers Organization (AACO): The Arab Air Carriers Organization is the Regional Association of Arab Airlines. It is one of the oldest tools of Pan Arab cooperation established by the Arab League of States. Since its inception in 1965, AACO has thrived to progress in an environment of an air transport industry that is both challenging and demanding.
ARBITRARY: 1) Charge in addition to regular freight charge to compensate for unusual local conditions. 2) Fixed amount accepted by a carrier when dividing joint rates. Also referred to as a PROPORTIONAL, ADD-ON or construction rate.
ARBITRAGE: The buying of foreign exchange, securities or commodities in one market and the simultaneous selling in another market, in terms of a third market. By this manipulation, a profit is made due to the difference in rates of exchange or in the price of the securities or commodities involved.
Arbitration Clause: 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.
ARC: See Airlines Reporting Corporation.
ARINC: Based in Annapolis, MD, this organization provides communications services, systems development and integration, systems engineering, and management services to the world's aviation community, commercial customers, and government agencies such as the FAA, DOD, NASA, DOE, and DOT. ARINC provides sophisticated communications and information handling services capable of reaching aircraft anywhere in the world.
ARRIVAL NOTICE: On arrival of freight at destination, notice is promptly sent to the consignee showing number of packages, description of goods, route, rate, weight, car initial and number, amount of freight charges, location where delivery will be made and the time allowed for removal before demurrage/storage charges will accrue. Also the Notice that the carrier or the forwarders sends to the consignee when a shipment has arrived. It is issued by railroads, airlines, and maritime services.
ARTICLES OF EXTRAORDINARY VALUE (AEV): Commodities identified as high value items.
artificial intelligence: A field of research seeking to understand and computerize the human thought process.
AS: The abbreviation for Akieselskabet, a joint stock company in Denmark or Norway. Also AKTS.
AS CUSTOMARY: In a contract, this refers to the usual manner of performing a service without a time period specified.
AS/IS: Term indicating that goods offered are without warranty or guarantee. Buyer has no recourse on vendor for the quality of the merchandise.
ASEAN: See Association of Southeast Asian Nations
Asia Pacific Economic Cooperation: APEC, established in November 1989, is an informal grouping of Asia Pacific countries that provides a forum for Ministerial level discussion of a broad range of economic issues. APEC includes the six ASEAN countries (Brunei, Indonesia, Malaysia, Philippines, Singapore, and Thailand), plus: Australia, Canada, China, Hong Kong, Japan, New Zealand, South Korea, Taiwan, and the United States.
Asian Development Bank: The ADB helps finance economic development in developing countries in the Asian and Pacific area through the provision of loans on near-market terms, with its Ordinary Capital Resources (OCR), and on concessional terms, through the Asian Development Fund (ADF). The ADB was established in 1965 (began operating in December 1966); headquarters are in Manila, Philippines.
ASIAN DOLLARS: U.S. funds deposited in banks in Asia and the Pacific Basin.
ASRS: See automated storage and retrieval system.
Assessment: The imposition of Antidumping Duties on imported merchandise.
Association of Asia Pacific Airlines (formerly the Orient Airlines Association): This organization covers all aspects of commercial aviation in the Asia Pacific region.
ASSEMBLY SERVICE: A service under which a carrier assembles shipments from many shippers and transports them as one shipment to one receiver. See also DISTRIBUTION SERVICE.
Asset-based provider: A logistics company with ties to a motor carrier, air carrier, railroad, or warehouse management firm.
ASSIGNMENT: Legal transfer of the rights, duties, responsibilities and/or benefits of an agreement, contract, or financial instrument to third party.
Assignment of Proceeds: A stipulation within a Letter of Credit in which some or all of the proceeds are assigned from the original beneficiary to one or more additional beneficiaries.
ASSOCIATION OF AMERICAN RAILROADS (AAR): A railroad industry association that represents the larger U. S. Railroads.
Association of Southeast Asian Nations (ASEAN): Agreed in January 1992 to create a free trade area (ASEAN Free Trade Area, or AFTA) with use of a common effective preferential tariff. Under the agreement ASEAN members will cut tariff rates within 15 years of its start date of January 1994. Manufactured goods from 15 sectors designated as "fast track" are subject to tariff reduction to 0-5 percent within 10 years, and seven years if the starting rates were already below 20 percent. "Fast track" sectors include vegetable oils, cement, chemicals, pharmaceuticals, fertilizer, plastics, rubber products, leather products, pulp, textiles, ceramic and glass products, gems and jewelry, copper cathodes, electronics, and wooden and rattan furniture.
AST&T: See AMERICAN SOCIETY OF TRAFFIC & TRANSPORTATION.
AT: Abbreviation for “American Terms” used in Marine Insurance. A term used to differentiate between the conditions of American Policies from those of other nations, principally England.
ATA: Actual Time of Arrival, or Airport-To-Airport or see AIR TRANSPORT ASSOCIATION OF AMERICA or AMERICAN TRUCKING ASSOCIATION.
ATA CARNET: A customs document permitting the holder to carry or send merchandise temporarily into certain foreign countries (for display, demonstration or similar purposes) without completing normal customs formalities. With a carnet, the holder avoids paying duties or posting bonds. See also CARNET.
ATAG: See Air Transport Action Group.
ATD: Actual Time of Departure.
ATLAS: See Automated Trade Locator Assistance Network
ATPCO: See AIRLINE TARIFF PUBLISHING COMPANY.
ATHWARTSHIP: A direction across the beam of a vessel.
ATTENDANT ACCOMPANYING SHIPMENTS: Sometimes attendants accompany cargo shipments as when grooms or veterinarians accompany racehorses or other live animals. This service requires advance arrangements with an airline.
AUDIT TRAIL: 1) Path generated by a fully processed business transaction includes original entry, transaction listing, file posting and report. 2) Management controls that document acceptance, handling and movement of materials through a warehouse. 3) Verifying summary account balances by analysis/inspection of underlying source documents and transaction records.
Auditing: In transportation, determining the correct transportation charges due the carrier. Auditing involves checking the freight bill for errors, correct rate and weight.
Automated Brokerage Interface (ABI): 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 the prompt release of imported cargo. Part of Customs' Automated Commercial System, permits transmission of data pertaining to merchandise being imported into the United States. Qualified participants include brokers, importers, carriers, port authorities, and independent data processing companies referred to as service centers.
Automated Clearinghouse (ACH): The Automated Clearinghouse (ACH) is a feature of the Automated Broker Interface which is a part of Customs' Automated Commercial System. The ACH combines elements of bank lock box arrangements with electronic funds transfer services to replace cash or check for payment of estimated duties, taxes, and fees on imported merchandise.
Automated Commercial System: The electronic system of the US Customs Service, encompassing a variety of industry sectors, that permits on-line access to information in selected areas.
Automated Export Reporting Program: The AERP provides for electronic submission of most information required on the Shipper's Export Declaration. The program was initiated in 1969 with the intent of enabling large volume exporters to submit electronically and facilitate Census Bureau data entry and analysis. AERP was expanded in 1982 to allow freight forwarders, and again in 1985 to allow ocean carriers, to file electronically. At the beginning of fiscal year 1994, about 220 firms: - accounting for 350,000 to 400,000 records a month: - were participating in AERP. The program is administered by the Automated Data Reporting Branch, Foreign Trade Division, Bureau of the Census.
automated guided vehicle system: A computer-controlled materials handling system consisting of small vehicles (carts) that move along a guideway.
Automated Manifest System: 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.
automated storage and retrieval system: An automated, mechanized system for moving merchandise into storage locations and retrieving it when needed.
Automated Trade Locator Assistance Network: ATLAS is a Small Business Administration-sponsored, contractor-operated, automated system which provides market research information and statistics on world markets by SIC code (and possibly harmonized system). Indirect access is available for businesses, with arrangements through the local SBA district office. ATLAS, which became operational in Spring 1993, replaced SBA's export information system (XIS).
AUTOMATIC POD: Information automatically sent to payer containing name of person who signed for the package with date and time of delivery. See also POD.
AUTOMATIC PROOF OF DELIVERY: Same as AUTOMATIC POD.
AUTHORITY: Operating rights granted by a motor carrier by the ICC. See OPERATING AUTHORITY.
AUTHORITY TO PAY: A letter mainly used in the Far Eastern trade which is addresses by a bank to a seller of merchandise notifying him that it is authorized to purchase, with or without RECOURSE, drafts up to a stipulated amount drawn on a foreign buyer in cover of specialized shipments of merchandise.
AUTHORIZED CARRIER: Person/company authorized to engage in the transportation of property as a common carrier or contract carrier.
AVERAGE: Any loss or damage due to insured perils that is less than a total loss. Two types of average occur: Particular Average and General Average.
average cost: Total cost, fixed plus variable, divided by total output.
AWA: See AMERICAN WAREHOUSEMEN’S ASSOCIATION.
AXLE RATINGS: Rear axles on a truck generally carry three ratings; the carrying capacity rated at the ground (raw materials); the total weight the axle is capable of carrying/pulling in service, and the gross combined weight (GCW rating) which is the maximum horsepower limit the axle is capable of carrying in normal service (engine size rating).

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B

BAA: Abbreviation for the “British Airports Authority”
BACA: Abbreviation for the “Baltic Air Charter Association”.
back order: The process a company uses when a customer orders an item that is not in inventory, the company fills the order when the item becomes available.
BACK-TO-BACK CREDITS: A term commonly used to denote LETTERS OF CREDIT issued for account of different buyers to cover the same shipment, the terms of which credits are so similar that documents under one are subsequently applicable against one another.
BACKHAUL: 1) Return transportation movement, usually at less revenue than the original move (headhaul). 2) Movement in the direction of lighter traffic flow when traffic is generally heavier in the opposite direction. 3) To move a shipment back over part of a route already traveled.
BACKUP: Making a duplicate copy of a computer file or a program on a disk or cassette so that the material will not be lost if the original is destroyed. A spare copy.
BAI CERTIFICATE: Issued by the Bureau of Animal Industry of the USDA certifying veterinary inspection.
BAILEE RECEIPTS: See TRUST RECEIPT.
BALANCE OF TRADE: The difference between a country’s total imports and exports. If exports exceed imports, a favorable balance of trade exists; if not, a trade deficit is said to exist.
BALLAST: Heavy material which is placed in the ship’s hold for stability.
BANK ACCEPTANCE: A DRAFT of which a bank is drawee and acceptor.
BANK DRAFT: Bill of Exchange drawn by one bank to another. Normally used to provide a customer with funds payable at distant bank.
BANK RELEASE: Negotiable time draft drawn on and accepted by a bank which adds its credit to that of an importer of merchandise.
Banker's Acceptance: A banker's acceptance is a draft drawn on and accepted by a bank. Depending on the bank's creditworthiness, the acceptance becomes a financial instrument which can be discounted.
Banker's Draft: Draft payable on demand and drawn by or on behalf of the bank itself; it is regarded as cash and cannot be returned unpaid.
Banker's Guarantee: An assurance, obtained from a bank by a foreign purchaser; that the bank will pay an exporter up to a given amount for goods shipped if the foreign purchaser defaults.
bar code scanner: A device to read bar codes and communicate data to computer systems.
Bar codes: The most commonly used form of automatic-identification technology. Basically, a series of light and dark bars of different widths that are used to represent a number, letter or symbol. A bar-code reader, really an optical scanner, emits a beam of light and records the pulsated reflection that occurs when light bounces off the black-and-white bands. The scanner then converts the pulsated reflection of light into electronic data.
BARGE: The cargo carrying vehicle used primarily by inland water carriers. The basic barges have open tops, but there are covered barges for both dry and liquid cargoes.
BARREL: Container of cylindrical shape made of wood, aluminum or steel which is longer than it is wide and has ends with equal diameters.
Barter: The exchange of goods or services of equivalent value without the use of currency. Barter is the oldest form of trade. Widely used in trade with countries using currencies that are not readily convertible on the world exchange markets.
BASING POINT: Geographic point to which transportation rates are set to that rates to adjacent points can be constructed by adding or deducting from the Basing Point rate.
batch picking: The picking of items from storage for more than one order at a time.
BAUD RATE: Number of bits per second a computer is capable of sending/receiving. Varies from 300 (teletypewriter) and up.
BAY: Area in a warehouse outlined by markings on columns or posts or floor to show specific boundaries.
BEAM: Greatest width of a ship’s structure.
Belly Cargo: Freight accommodation below the main deck on an aircraft.
BENEFICIARY: The person in whose favor a DRAFT is drawn or a LETTER OF CREDIT opened. The beneficiary is usually the seller or exporter.
BELLY PITS OR HOLDS: Compartments located beneath the cabin of an aircraft and used for the carriage of cargo and passenger baggage.
Benchmarking: Using specific measurements to compare performance against another standard. A management tool for comparing performance against an organization that is widely regarded as outstanding in one or more areas, in order to improve performance.
BENEFIT-COST RATIO: An analytical tool used in public planning. A ratio of total measurable benefits divided by the initial capital cost.
Bermuda Agreement: An agreement concluded in 1946 between the U.K. and the U.S. designed to regulate future international air traffic. Most governments accept its principles and follow it inter-alia by limiting traffic rights on international routes to one or two carriers.
BERTH: Ship’s place at dock, pier, quay or wharf where a vessel can be loaded or discharged.
Berth Liner Service: Is a regular scheduled steamship line with regular published schedules (port of call ) from and to defined trade areas.
Berth or Liner Terms: An expression covering assessment of ocean freight rates generally implying that loading and discharging expenses will be for ship owner's account and usually apply from the end of ship's tackle in port of loading to the end of ship's tackle in port of discharge.
BERTH RATES: Rates charged by scheduled liner services.
Best practice: State-of-industry performance or application.
BIG EMERGING MARKETS: A group of fast growing economies identified by the Department of Commerce as having the most potential for U.S. exporters. They are currently: Argentina, Brazil, the China Economic Area (China, Hong Kong, Taiwan, India, Indonesia, Mexico, Poland, South Africa, South Korea and Turkey).
BILGE: 1) The lowest internal part of a ship’s hull, next to the keelson, where the bilge water collects. 2) Belly of a barrel or cask.
BILL OF EXCHANGE: Also referred to as a DRAFT. Instrument drawn by one person ordering second person to pay definite sum of money to third person on sight (SIGHT DRAFT) or at definite time in the future (TIME DRAFT).
BILL OF LADING: Principal transportation document by which a carrier acknowledges receipt of freight, describes the freight and sets forth a contract of carriage. It is a receipt for goods and contracts to move them. Terms and conditions, responsibilities and liabilities vary with manner and place of use. Bills of Lading may be negotiable or non-negotiable. Contents of the Bill of Lading were outlined in 1917. Every Bill of Lading must contain at least the following: 1) Date of issue. 2) Name of consignor. 3) Place of original consignment. 4) Place of delivery. 5) Statement of whether goods are to be delivered to a specific person. 6) Description of goods/packages containing them and 7) Signature of carrier. There are many kinds of Bills of Lading. An Ocean shipment requires two documents: an Inland Bill of Lading to cover the domestic movement of the cargo and an Ocean Bill of Lading to cover the international carriage. In air freight, the air waybill is a form of Bill of Lading and is the contract for carriage- both domestically and internationally. See also ORDER BILL OF LADING.
BILLING THIRD PARTY: The invoicing of transportation charges to other than shipper or consignee.
BINDER: 1) Temporary insurance coverage pending the issuance of an insurance policy or certificate. 2) A strip of cardboard, thin wood, burlap or similar material placed between layers of containers to hold a stack together.
BLANK ENDORSEMENT: Writing only one’s own name on the back of a document.
BLANKET RATE: A rate that does not increase according to the distance the commodity is shipped.
Bleeding edge: A maneuver so far ahead of its time that it may create a competitive disadvantage.
BLOCKED EXCHANGE: Exchange which cannot be freely converted into otter currencies.
Blue Lantern: Blue Lantern, a procedure pertaining to U.S. Munitions List items, is intended to verify that information stated on export license applications is valid and that the use of the commodity or service exported is consistent with the terms of the license. It includes pre-license and post-shipment checks of export applications conducted by designated officials at U.S. embassies. Blue Lantern was initiated in September 1990 by the State Department's Office of Defense Trade Controls
Bond System: The Bond System, a part of Customs' Automated Commercial System, provides information on bond coverage. A Customs bond is a contract between a principal, usually an importers, and a surety which is obtained to insure performance of an obligation imposed by law or regulation. The bond covers potential loss of duties, taxes, and penalties for specific types of transactions. Customs is the contract beneficiary.
BONDED TERMINAL: An airline terminal approved by the U.S. Treasury Department for storage of goods until Customs duties are paid or the goods are otherwise released.
BONDED WAREHOUSE: A warehouse authorized by Customs authorities for storage of goods on which payment of duties is deferred until the goods are removed. Also U.S. Customs Bonded Warehouse.
BOGIE: 1) An assembly of two or more axles. 2) Removable set of rear axles and wheels used to support a van container.
BOLSTER: A device so fitted on a chassis or railcar so as to hold and secure the container.
BONA FIDE: Latin phrase meaning “in good faith”. Also used to mean “real” or “true”.
BOND: 1) Obligation made binding by payment of a fee, which is lost if the contract is violated. 2) A binding agreement.
BONDED TERMINAL: An airline terminal approved by the U.S. Treasury Department for storage of goods until Customs duties are paid or the goods are otherwise released
BOTTOM SIDE-RAILS: Structural members located on the longitudinal sides of the base of the container.
BOX: 1) Slang term for trailer or container for ocean carriers. 2) A slang term used for truck transmission.
BOXCAR: An enclosed railcar typically 40 to 50 feet long; used for packaged freight and some bulk commodities.
BPR: See “Business Process Reengineering”
BRACING: Securing a shipment inside a carrier’s vehicle to prevent damage.
BRANCH LINE: Railroad line providing train service to one or more stations beyond a junction with the main line or another branch in the line.
BREAK BULK: 1) To unload, sort and reload some/all of a vehicle in transit. 2) To reduce a large shipment of a single commodity to many shipments that are then dispersed to various buyers. 3) Disassembling of consolidated shipment for delivery or re-consignment of a shipment. 4) Loose cargo, such as cartons, stowed directly in the ship's hold as opposed to containerized or bulk cargo. Note: For consolidated air freight, it is moved under one MAWB and each consignment designated to specific consignee or recipient is under one HAWB. When freight forwarder receives the consolidated cargo from carrier, they will break the consolidation apart per HAWB then proceed customs clearance along with associated shipping and import documents. Such Break-Bulk is normally handled by airlines or their contracted ground handling agent.
BREAK-EVEN WEIGHT: The weight at which it is cheaper to charge the lower rate for the next higher weight-break times the minimum weight indicated, than to charge the higher rate for the actual weight of the shipment.
Breaking out the box: Solving conventional problems with unconventional thinking.
BRIDGE FORMULA: Formula used to determine the maximum gross weight that can be carried on any given arrangement of consecutive axles.
BROKER: 1) Agent who arranges interstate movement of goods by other carriers. 2) Arranger of exempt loads for owner-operators and/or carriers. 3) One who arranges the buying/selling of goods for a commission. 4) Person who leases owned equipment to a carrier. 5) Solicitor of insurance who places orders for coverage with companies designated by the insured or with companies of his choosing. 6) Person or company licensed by the U.S. Treasury Department to transact business with Customs on behalf of importers. 7) Middleman between Buyer and Seller.
BROKER (CUSTOMS): A person or company licensed by the U.S. Treasury Department to transact business with Customs on behalf of importers. See also CUSTOM BROKERS and CUSTOMHOUSE BROKER.
BROKERAGE: Fee or commission that is paid to a BROKER for services performed.
Brussels Tariff Nomenclature Number: The customs tariff number used by most European nations. The US uses a similar system known as the Harmonized Tariff Schedule.
BULK: A mass of a product, unpackaged.
bulk area: A storage area for large items which at a minimum are most efficiently handled by the pallet load.
BULK CARRIER: Vessel engaged in carriage of bulk commodities like petroleum, grain or ore, which are not packaged, bundled, bottled or otherwise packed.
BULK SHIPMENTS: Shipments which are not packaged, but are loaded directly into the vessel's holds. Examples of commodities that can be shipped in bulk are ores, coal, scrap, iron, grain, rice, vegetable oil, tallow, fuel oil, fertilizers, and similar commodities.
BULKHEAD: 1) Upright wall in trailer or rail car that separates a load. 2) Cargo restraining partition in a vehicle or vessel.
BULL RINGS: Cargo securing devices mounted in the floor of containers which provide for the lashing and securing of cargo.
BUNKER: Ship’s coal bin or oil storage place.
BUSINESS LOGISTICS: The physical movement of goods from supply points to final sale to customers, and the associated transfer and holding of such goods at various intermediate storage points, accomplished in such a manner as to contribute to the explicit goals of an organization. The process of planning, implementing and controlling the efficient, effective flow and storage of goods, services and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements. Note that this definition includes inbound, outbound, internal and external movements.
Business process re-engineering: The fundamental thinking and radical redesign of business process to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service and speed.
BUYERS RIGHT TO ROUTE: When a seller does not pay for freight charges, the purchaser has the right to designate the route for shipment; seller is responsible for following the buyers instructions. Complete routing is permitted for rail shipments but only for the first carrier in motor shipments.

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C

C/L: See CARLOAD.
C&F: See Cost And Freight.
CAA: Abbreviation of the “Civil Aviation Authority”. Government body responsible for regulating U.K. airlines.
CABOTAGE: Applies to traffic originating at a point in one country and destined to another point within the territory of the same country. Coastwise and inter-coastal navigation and trading. In the US, a federal law that requires coastal and inter-coastal traffic to be carried in U.S.-built and U.S.-registered ships. Also, 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.
CAD: See CASH AGAINST DOCUMENTS.
CAD/CAM: Abbreviation for “Computer Aided Design” and “Computer Aided Manufacturing”.
CAF –See currency adjustment factor
Cage: (1) A secure enclosed area for storing highly valuable items. (2) A pallet-sized platform with sides that can be secured to the tines of a forklift and in which a person may ride to inventory items stored well above the warehouse floor. 3) The transporting of goods by truck to or from a vessel, aircraft, or bonded warehouse, all under customs custody.
Caged: Before import customs formality has been completed cleared and released, cargo is remained at bonded warehouse under customs custody.
CAPACITY PLATE: Plate affixed to a forklift truck indicating the maximum weight which can be raised or moved by that equipment.
Capital: The resources, or money, available for investing in assets that produce output.
CAPSTAN: Mechanical device for moving/raising heavy weights used at docks in mooring vessels at rail terminals to move dead engines.
CAPTAIN’S PROTEST: Declaration by master of ship on arrival in port to accidents/damage to ship/cargo during the voyage designated to relieve ship owner of liability.
CARGO: 1) Freight transported. 2) Goods, merchandise or commodities of every description which may be carried aboard a vessel, in consideration of the freight charged; does not include provisions and stores for use on board. 3) Equivalent to the term “goods” meaning anything carried or to be carried in an aircraft or vessel other than mail or property carried under the terms of an international postal convention or baggage (including personal effects accompanying a passenger) or the property of the carrier; providing that unaccompanied baggage moving under an air waybill or Bill of Lading is cargo.
CARGO AIRCRAFT: See ALL-CARGO AIRCRAFT.
CARGO AGENT: An agent appointed by a carrier to solicit and process international freight for shipments. In air freight, cargo agents are paid commissions by the airline.
Cargo Agents Settlement System: See CASS.
Cargo Network Services Corp. (CNS): A subsidiary of the International Air Transport Association, was founded to serve the needs of the Air cargo industry in the United States. CNS provides services to promote productivity, profitability, credibility, cooperation and quality of service among air carriers and cargo agents. For information: 300 Garden City Plaza, Suite 312, Garden City, NY 11530
CARGO PLAN: Stowage plan of a vessel.
Cargo Receipt: A receipt of cargo for shipment by a consolidator (used in ocean freight). See also DOCK RECEIPT.
Cargo Selectivity System: The Cargo Selectivity System, a part of Customs' Automated Commercial System, specifies the type of examination (intensive or general) to be conducted for imported merchandise. The type of examination is based on database selectivity criteria such as assessments of risk by filer, consignee, tariff number, country of origin, and manufacturer/shipper. A first time consignee is always selected for an intensive examination. An alert is also generated in cargo selectivity the first time a consignee files an entry in a port with a particular tariff number, country of origin, or manufacturer/shipper.
Caribbean Common Market: CARICOM includes 13 English-speaking Caribbean nations: Antigua and Barbuda, the Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Jamaica, Montserrat, St. Kitts-Nevis, St. Lucia, St. Vincent/Grenadines, and Trinidad and Tobago). CARICOM was established in 1973; headquarters are in Georgetown, Guyana.
CARLOAD (C/L or CL): 1) Quantity of freight required to fill a rail-car. 2) Specified quantity necessary to qualify a shipment for a carload rate.
Carmack Amendment: An Interstate Commerce Act amendment that delineates the liability of common carriers and the Bill of Lading provisions.
Carnet: Customs documents permitting the holder to carry or send sample merchandise temporarily into certain foreign countries without paying duties or posting bonds. Foreign customs regulations vary widely; in some countries, duties and extensive customs procedures on sample products may be avoided by obtaining an ATA Carnet. The ATA Carnet is a standardized international customs document used to obtain duty-free temporary admission of certain goods into the countries that are signatories to the ATA Convention. Under the ATA Convention, commercial and professional travelers may take commercial samples; tools of the trade; advertising material; and cinematographic, audiovisual, medical, scientific, or other professional equipment into member countries temporarily without paying customs duties and taxes or posting a bond at the border of each country visited. The carnets are generally valid for 12 months. See also TEMPORARY Importation UNDER BOND.
Carousel: A rotating system of layers of bins and/or drawers that can store many small items using relatively little floor space.
CARRIAGE: That part of transportation service that is represented by actual movement of goods to a point of destination after having been loaded but before being unloaded.
CARRIAGE OF GOODS BY SEA ACT: 1936 U.S. Statute that governs the acts that a carrier is responsible for and defines the terms used in shipping. The act provides that the shipowner's liability will be limited to $500 per shipping package, and it stipulates a one-year time limit for filing suit against the carrier. This act automatically applies to international ocean movements but not to domestic ocean transits unless the carrier agrees to be bound by it.
Carriage Paid To: Carriage paid to (CPT) and carriage and insurance paid to (CIP) a named place of destination. Used in place of CFR and CIF, respectively for shipment by modes other than water.
CARRIER: Individual, partnership or corporation engaging in the business of transporting goods or passengers, in most cases, for a fee. Usually means Steamship Company, but can also refer to trucking company, airline, or railroad as transporter of cargo.
Carriers(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’S LIABILITY: Liability begins when goods are delivered at the proper place and ends when goods have been delivered to the consignee or when the carrier’s duty has been discharged according to the terms of the freight contract. 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.
Carriage and Insurance Paid to (CPA) (...named place of destination): Seller pays freight and insurance for carriage of the goods to the named destination.
Carriage and Insurance Paid To (CIP) (...named place of destination): The seller has the same obligations as under CPT but with the addition that the seller has to procure cargo insurance against the buyer's risk of loss of or damage to the goods during the carriage. The seller contracts for insurance and pays the insurance premium. The buyer should note that under the CIP term the seller is only required to obtain insurance on minimum coverage.
CARTAGE: 1) Charge for pickup or delivery of goods. 2) Act of moving goods (usually short distances).
CARTAGE AGENT: Ground service operator who provides pickup and delivery in areas not served directly by air carrier.
CARTEL: Group of industrial companies that agree to regulate output, divide markets and set prices at which to sell products. An illegal practice in the U.S. since it violates anti-trust laws. carton flow rack: A storage rack consisting of multiple lines of gravity flow conveyors.
CASE MARKS: Information shown on the outside of shipping cartons, including destination and contents. See also MARKS.
CASH AGAINST DOCUMENTS (CAD): Payment for goods in which a commission house or other intermediary transfers title documents to the buyer upon payment in cash. A term denoting that payment is made when the bill of lading is presented.
CASH BEFORE DELIVERY (CBD): Seller assumes no risk and extends no credit because he is paid before shipment.
CASH IN ADVANCE (CIA): Payment for goods in which the full price is paid in full before the shipment is made. This type of payment is only made for small shipments or when goods are made to order.
Cash On Delivery: COD means payment to be made upon the delivery of goods.
CASH WITH ORDER (CWO): Payment for goods in which a buyer pays when ordering and in which the transaction is binding on both parties.
CASHIER’S CHECK: Check drawn by a bank.
CASS: Abbreviation for “Cargo Agents Settlement System”. Administered by CNS. Simplifies air cargo reporting, billing and remittance procedures through a centralized settlement system. During 1995, CNS instituted a credit improvement program which not only investigates potential problems but also assists the parties in achieving creative and acceptable solutions.
Category management: Managing products with similar requirements and characteristics (e.g., temperature-or humidity-controlled) as a single systems or category throughout the supply chain.
CAVEAT EMPTOR: Latin term meaning “let the buyer beware”. Common law imposes on the buyer the duty of examining the purchase. There is no recourse against seller because of the defects.
CBD: See CASH BEFORE DELIVERY.
CCEF: Abbreviation of “Customs Centralized Examination Facility”.
CD-ROM: Abbreviation for “Compact Disk-Read Only Memory”
CELLULAR VESSEL: Ship constructed for transportation of containers stacked on top of each other in vertical guide shafts, no general freight carried.
centralized authority: The restriction of authority to make decisions to few managers.
Central American Common Market: A first effort to establish a Central American Common Market, CACM (Spanish: Mercado Common Centroamericano, MCCA) was attempted in 1960 under the auspices of the Organization of Central American States (OCAS). A restructuring was started in 1973. Members include Honduras, Guatemala, El Salvador, Nicaragua and Costa Rica. The common market will cover all products traded within the region by the end of 1992. A second step toward regional integration will be the establishment of a common external tariff. CACM is associated with the Central American Bank for Economic Integration; headquarters are in Guatemala City, Guatemala.
Central Europe Free Trade Association: CEFTA is a trade agreement among the "Visegrad" countries: - Poland, the Czech Republic, Slovakia, and Hungary: - that is somewhat parallel to the European Free Trade Association.
central processing unit: The physical part of the computer that does the actual computing.
Certificate of Analysis: A certificate required by some countries as proof of the quality and composition of food products or pharmaceuticals. The required analysis may be made by a private or government health agency. The certificate must be legalized by a foreign consul of the country concerned, as is the case with such similar certificates as the phytosanitary certificate.
CERTIFICATE OF INSPECTION: A document often acquired in connection with shipments of perishable goods in which certification is made as to the good condition of the merchandise immediately prior to shipment. Pre-shipment inspection is a requirement for importation of goods into many developing countries.
CERTIFICATE OF INSURANCE: Issued (usually on Form E or Form H) by an officer of an insurance company, to state agency or other party, stating the fact that the party named has insurance coverage in amounts/type. Not a binding agreement.
CERTIFICATE OF MANUFACTURE: A statement sometimes notarized by a producer, usually also the seller, or merchandiser that indicates the goods have been manufactured and are at the disposal of the buyer.
CERTIFICATE OF MANUFACTURER: Document used with letters of credit when drafts are paid/negotiated on presentation of a certificate stating the fact that the goods have been completed and are being held for shipment.
CERTIFICATE OF ORIGIN: A document required by U.S. Customs and certain other countries for tariff purposes certifying as to the country of origin of specified goods. Sometimes requires the signature of the consul of the country to which it is destined. A certificate may be required even though the commercial invoice contains the information.
CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY: The grant of operating authority that is given to common carriers. A carrier must prove that a public need exists and that the carrier is fit, willing, and able to provide the needed service. The certificate may specify the commodities to be hauled, the area to be served, and the routes to be used.
CERTIFICATE OF REGISTRY: Document issued by maritime authorities indicating legal restriction of a ship.
CERTIFICATED CARRIER: A for-hire carrier that is subject to economic regulation and that requires an operating certification to provide services.
CES: Abbreviation of “Customs Examination Station”.
CFD: See Continuous flow distribution
CFR: See Cost And Freight.
CFS: 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/CFS: 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: 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.
CFS 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 Receiving Service: The term "CFS Receiving Services" means the service performed at loading port in receiving and packing cargo into containers from CFS to CY or shipside. "CFS Receiving Services" referred herein are restricted to the following: Moving empty containers from CY to CFS, Drayage of loaded containers from CFS to CY and/or ship's tackle, Tallying, Issuing dock receipt/shipping order, Physical movement of cargo into, out of and within CFS, Stuffing, sealing and marking containers, Storage, Ordinary sorting and stacking, Preparing carrier's internal container load plan
Chaebol: Chaebol are Korean conglomerates which are characterized by strong family control, authoritarian management, and centralized decision making. Chaebol dominate the Korean economy, growing out of the takeover of the Japanese monopoly of the Korean economy following World War II. Korean government tax breaks and financial incentives emphasizing industrial reconstruction and exports provided continuing support to the growth of Chaebols during the 1970s and 1980s. In 1988, the output of the 30 largest chaebol represented almost 95% of Korea's gross national product.
CHARGES FOR PACKING SHIPMENTS: Some carriers provide material and services for packing and unpacking special commodities that require special packaging and handling. A charge is made for this service.
CHARGEABLE WEIGHT: The weight of the shipment used in determining air freight charges. The chargeable weight may be the dimensional weight or on container shipments the gross weight of the shipment less the tare weight of the container.
Chargeable Kilo: Rate for goods where volume exceeds six cubic meters to the tonne.
CHARGES ADVANCED: See ADVANCEMENT or CHARGES.
CHARGES COLLECT: Transportation charges may include pickup and/or delivery and are entered on the air waybill to be collected from the consignee. Equivalent terms are freight collect or charges forward.
CHARGES FORWARD: A banking term used when foreign and domestic bank commission charges, interest (if any) and government taxes in connection with the collection of a draft are for the account of the drawee.
CHARGES FOR PACKING SHIPMENTS: Some carriers provide material and services for packing and unpacking special commodities that require special packaging and handling. A charge is made for this service.
charging area: A warehouse area where a company maintains battery chargers and extra batteries to support a fleet of electrically powered materials handling equipment. The company must maintain this area in accordance with government safety regulations.
Charter: Originally meant a flight where a shipper contracted hire of an aircraft from an airline. Has usually come to mean any non-scheduled commercial service.
CHARTER PARTY: A contract, expressed in writing on a special form, between the owner of a vessel and the one (the Charterer) desiring to employ the vessel, setting forth the terms of the arrangement such as freight rates and ports involved in the trip contemplated. Also, among other specifications, the contract usually stipulates the exact obligations of the ship-owner (loading the goods, carrying the goods to a certain point, returning to the charterer with other goods, etc.); or it provides for an outright leasing of the vessel to the charterer, who then is responsible for his own loading and delivery. In either case, the charter party sets forth the exact conditions and requirements agreed upon by both sides.
Charter Party Bill of Lading: A bill of lading issued under a charter party. It is not acceptable by banks under letters of credit unless so authorized in the credit.
CHARTER SERVICE: The temporary hiring of an aircraft usually on a trip basis, for the movement of cargo or passengers.
CHASSIS: A trailer-type device with wheels constructed to accommodate containers enabling the load to be moved over-the-road. Also, a wheel assemble including bogies constructed to accept mounting of containers.
CHECK DIGIT NUMBER: A single digit of the air waybill number used to insure that the air waybill number is correctly entered into a computer system.
CHEMTREC: Abbreviation for “Chemical Transportation Emergency Center”. Organization available on a 24-hour basis to provide emergency response information to anyone involved in hazardous chemical accidents.
Chinese Economic Area: The CEA is an informal reference to the economic integration of Southern China with Hong Kong and Taiwan which has proceeded without any "arrangement". Also referred as "Greater China".
CHOCK: 1) A piece of wood or other material placed at the side of cargo to prevent it from rolling about or moving sideways. 2) A wedge, usually made of hard rubber or steel, that is firmly placed under the wheel of a trailer, truck, or boxcar to stop it from rolling.
CIA: See CASH IN ADVANCE.
CIF: See Cost, Insurance and Freight.
CIRCA: “About”
CITES: Abbreviation “Committee on International Trade of Endangered Species”
city driver: A motor carrier driver who drives a local route as opposed to a long-distance, inter-city route.
CITY TERMINAL SERVICE: A service provided by some air lines to accept shipments at the terminals of their cartage agents or other designated in-town terminals or to deliver shipments to these terminals at lower rates than those charged for the door-to-door pickup and delivery service.
CIVIL AERONAUTICS BOARD (CAB): A Federal agency created by Congress in 1938 to promote the development of the U.S. air transport system, to award air routes and to regulate passenger fares and cargo rates. Legislation passed by the U.S. Congress in 1978 terminated the CAB, effective January 1, 1985. Many of the CAB functions such as certificates, air carrier fitness, consumer protection, international rates and services were transferred to the Department of Transportation.
CL: See CARLOAD.
CLAIM: 1) Demand on transportation company for payment, due to loss/damage of freight that occurred during transit. 2) Demand on transportation company for refund on overcharge. 3) Demand by individual or corporation to recover for loss under policy of insurance.
CLASS (or KIND) of MERCHANDISE: A term used in defining the scope of an antidumping investigation. Included in the "class or kind" of merchandise is merchandise sold in the home market which is "such or similar" to the petitioned product. "Such or similar" merchandise is that merchandise which is identical to or like the petitioned product in physical characteristics.
Class I carrier: A classification of regulated carriers based upon annual operating revenues--motor carriers of property of more than $5 million; railroads more than $50 million and motor carriers of passengers more than $3 million.
Class II carrier: A classification of regulated carriers based upon annual operating revenues--motor carriers of property of $1-$5 million; railroads of $10-$50 million and motor carriers of passengers less than $3 million.
Class III carrier: A classification of regulated carriers based upon annual operating revenues--motor carriers of property of less than $1 million and railroads less than $10 million.
"Class or Kind" of Merchandise: A term used in defining the scope of an antidumping investigation. Included in the "class or kind" of merchandize is merchandise sold in the home market which is "such or similar" to the petitioned product. "Such or similar" merchandise is that merchandise which is identical to or like the petitioned product in physical characteristics.
CLASS RATE: Rate for commodities grouped according to similar shipping characteristics. Applies to numbered/lettered groups/classes of articles contained in the territorial rating column in classification schedules. A class rate is available for any product between any two points.
Classification: 1) An alphabetical listing of commodities, the class or rating into which the commodity is placed, and the minimum weight necessary for the rate discount. Used in the class rate structure. 2) 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.
classification yard: A railroad terminal area where railcars are grouped together to form train units.
Claused Bill of Lading: A bill of lading which has exemptions to the receipt of merchandise in "apparent good order" noted.
CLAYTON ACT: An antitrust act of Congress making price discrimination unlawful. The Federal Trade Commission (FTC) is the enforcement agency.
Clean Bill of Lading: A bill of lading which covers goods received in "apparent good order and condition" and without qualification.
CLEAN DRAFT: A draft to which no documents are or have been attached.
CLEARANCE: 1) Customhouse certificate that ship is free to leave, all legal requirements having been met. 2) Space or measurements above an beside tracks/highways.
CLEAT: Strip of wood or metal used to add additional strength or to prevent warping or to keep goods in position.
CLM: See Council of Logistics Management
CM: Centimeters
COASTAL CARRIERS: Vessels that provide service along coasts serving ports on the Atlantic or Pacific oceans or on the Gulf of Mexico.
COCOM: See: Coordinating Committee for Export Controls
COD TERMS OF SALE: Abbreviation for “Cash On Delivery”. Buyer pays carrier the price of goods before they are delivered. Seller assumes risk of buyer refusing to accept goods.
COFC: Abbreviation for “Container on Flatcar”.
COGAS: See CARRIAGE OF GOODS BY SEA ACT.
COLLAPSIBLE CONTAINER: So fitted that the main parts are hinged or removable for the purpose of reducing its effective volume for transporting in a empty condition, thus making more efficient use of empty space.
COLLECT CHARGES: The transportation practice under which the receiver of the goods pays charges. See CHARGES COLLECT.
COLLECT ON DELIVERY (COD): A transportation service under which the purchase price of the goods is collected by the carrier from the receiver at the time of delivery, and subsequently, payment is transmitted by the carrier to the shipper. Carriers charge a nominal fee for this service. As the term COD implies payment is due upon delivery. There are no credit provisions in COD service.
COLLECT SHIPMENT: Shipment where collection freight charges/advances is made by delivering carrier from the consignee/receiver.
Collection Papers: All documents (invoices, bills of lading or air waybill, etc.) submitted to a buyer for the purpose of receiving payment for a shipment.
Collection System: The Collections System, a part of Customs' Automated Commercial System, controls and accounts for the billions of dollars in payments collected by Customs each year and the millions in refunds processed each year. Daily statements are prepared for the automated brokers who select this service. The Collections System permits electronic payments of the related duties and taxes through the Automated Clearinghouse capability. Automated collections also meet the needs of the importing community through acceptance of electronic funds transfers for deferred tax bills and receipt of electronic payments from lock-box operations for Customs bills and fees.
Collective Paper: All documents (commercial invoices, bills of lading, etc.) submitted to a buyer for the purpose of receiving payment for a shipment.
COMBI AIRCRAFT: Aircraft specially designed to carry unitized cargo loads on the upper deck of the aircraft forward of the passenger compartment.
COMBINATION AIRCRAFT: An aircraft capable of transporting both passengers and cargo on the same flight. Some came is carried on virtually all scheduled passenger flights in the belly pits below the passenger cabin.
Combination Vessels: Container/Break-bulk vessel: this type of ship accommodates both container and break-bulk cargo. It can be either self sustaining or non-self sustaining.
COMMERCE: Buying, selling, trading and transportation of goods and services.
COMMERCE CLAUSE OF THE U.S. CONSTITUTION: .... “Congress shall have the power.... to regulate commerce with foreign nations and among the several states...”. This clause that gives authority to regulate interstate commerce.
Commercial Code: A published code designed to reduce the total number of words required in a cablegram.
COMMERCIAL INVOICE: Itemized list issued by seller/exporter in foreign trade showing quantity, quality, description of goods; price, terms of sale, marks/numbers, weight full name/address of buyer and date. 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.
Commercial Risk: Risk carried by the exporter (unless insurance is secured) that the foreign buyer may not be able to pay for goods delivered on an open account basis. With respect to Eximbank guarantees, commercial risks cover nonpayment for reasons other than specified Political Risks. Examples are insolvency or protracted default.
COMMERCIAL SET: Set of four "negotiable" documents that represents and takes the place of the goods themselves in the financing of the cargo sales transaction.
Commercial Treaty: An agreement between two or more countries setting forth the conditions under which business between the countries may be transacted. May outline tariff privileges, terms on which property may be owned, the manner in which claims may be settled, etc.
commercial zone: The area surrounding a city or town to which rate carriers quote for the city or town also apply. The ICC defines the area.
COMMISSION: Fee charged by brokers as compensation for their services in purchasing or selling commodities/securities at the direction of a customer.
Committee for the Implementation of Textile Agreements: CITA is an interagency committee chaired by the Department of Commerce which exercises the rights of the United States under the Multi-Fiber Arrangement. CITA initiates "calls" for consultation when imports of a particular textile product from a particular country disrupt the U.S. domestic market for that product. Other member agencies include the Departments of Labor, State, and Treasury and the United States Trade Representative.
COMMITTEE OF AMERICAN STEAMSHIP LINES: An industry association representing subsidized U.S. flag steamship companies.
commodities clause: A clause that prohibits railroads from hauling commodities that they produced, mined, owned or had an interest in.
COMMODITY CODE: A system for identifying a given commodity by a number as a means of facilitating, for example, the application of computerization to freight transport. See HARMONIZED COMMODITY DESCRIPTION AND CODING SYSTEM.
COMMODITY RATE: A rate for a specific commodity and its origin or destination.
Commodity Specialist: An official authorized by the U.S. Treasury to determine proper tariff and value of imported goods.
COMMON CARRIER: Any carrier engaged in the interstate transportation of persons or property on a regular schedule at published rates and whose service are available to the general public on a for-hire basis. Common carriers are regulated by the ICC. To operate, the carrier must secure a certificate of public convenience and necessity.
COMMON CARRIER DUTIES: Common carriers are required to serve, deliver, charge reasonable rates and not discriminate.
COMMON COST: A cost that cannot be directly assignable to particular segments of the business that is incurred for the business as a whole.
Common Market: A common market (as opposed to a free trade area) has a common external tariff and may allow for labor mobility and common economic policies among the participating nations. The European Community is the most notable example of a common market.
Commuter: 1) An exempt for-hire air carrier that publishes a time schedule on specific routes. 2) A special type of air taxi.
comparative advantage: A principle based on the assumption that an area will specialize in producing goods for which it has the greatest advantage or the least comparative disadvantage.
Competitive line rate: A shipper/carrier negotiated rate or National Transportation Agency-imposed rate. With a Competitive Line Rate, Railway A (the "local carrier") may charge a shipper served exclusively by it and located more than 30 kilometers from an interchange, to move the shipper's traffic to the interchange and transfer it to Railway B (the "connecting carrier").
COMPUTERIZED TRAFFIC FLOW: The increased use of electronic data processing is one of the most significant advances in physical distribution of recent years. Computers are being given new assignments not only by carriers, but also by shippers, to achieve better control over the flow of raw materials and finished inventories. Also the U.S. Government and the United Nations gather more accurate data on the flow of commerce. Airlines have been in the forefront of computer application of cargo operations by using computers to prepare air waybills, expedited terminal handling, pickup and delivery, up-to-the-minute shipment status and billing.
CONCEALED DAMAGE: When product in an apparently undamaged container is damaged. Usually freight claims for concealed damage are difficult to settle because neither shipper nor carrier wants responsibility.
CONCURRENCE: Document signed by carrier and filed with the ICC that verifies carrier participates in rates published in a tariff by a given agent.
CONDITIONS OF CONTRACT: The terms and conditions established by the air carriers for the carriage of goods. These conditions are printed on the air waybill and include such items as limits of liability, claims limitations, indemnity and dimensional weight rules.
CONFERENCE: 1) Independent/autonomous organization within the American Trucking Association (ATA) that represents a certain class/type of motor carrier. 2) Association of shipowners servicing the same trade route who operate under collective conditions of carriage and tariff rates. Organization which fixes rates and sailings for the purpose of limiting competition between members and of “outsiders.
Conference on Security and Cooperation in Europe: CSCE was established in 1991 as a successor to the Eastern bloc's Council for Mutual Economic Assistance (CMEA or COMECON). CSCE administers residual tariffs and quotas and relations with other organizations.
Confidential contract: A binding written agreement for the rates and conditions of moving traffic, negotiated between a shipper and railway and kept confidential between them. Such contracts were not permitted before the 198 National Transportation Act.
Confirmed Letter of Credit: A letter of credit, issued by a foreign bank, with validity confirmed by a U.S. bank. An exporter who requires a confirmed letter of credit from the buyer is assured of payment by the U.S. bank even if the foreign buyer or the foreign bank defaults.
Confirming: Confirming is a financial service in which an independent company confirms an export order in the seller's country and makes payment for the goods in the currency of that country. Among the items eligible for confirmation are the goods; inland, air, and ocean transportation costs; forwarding fees; custom brokerage fees; and duties. Confirming permits the entire export transaction from plant to end user to be fully coordinated and paid for over time. It is mainly a European practice.
Confiscation: The taking and holding of private property by a government or an agency acting for a government. Compensation may or may not be given to the owner of the property.
Conrail: Abbreviation for the “Consolidated Rail Corporation” established by the Regional Reorganization Act of 1973 to operate the bankrupt Penn Central Railroad and other bankrupt railroads in the Northeast. The 4-R Act of 1976 provided funding.
CONSIGN: 1) Deliver formally to another. 2) Send goods to buyer, factor or agent to sell.
CONSIGNEE: Person who receives the goods shipped from one owner (consignor) or a person named as the receiver of a shipment: one to whom a shipment is consigned. Also, 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.
CONSIGNEE ACCOUNT NUMBER: See ACCOUNT NUMBER.
Consignee Marks: A symbol laced on packages for identification purposes; generally consisting of a triangle, square, circle, diamond, cross, with letters and/or numbers as well as port of discharge.
CONSIGNMENT: Shipment of one or more pieces of property, accepted by the