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Freight Glossary |
| Average
Annual Daily Truck Traffic (AADTT) - The total volume of
truck traffic on a highway segment for one year, divided by the
number of days in the year. |
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| Backhaul
- The process of a transportation vehicle (typically a truck) returning
from the original destination point to the point of origin. A backhaul
can be with a full or partially loaded trailer. |
| Barge
- The cargo-carrying vehicle that inland water carriers primarily
use. Basic barges have open tops, but there are covered barges for
both dry and liquid cargoes. |
| Belly
Cargo - Air freight carried in the belly of passenger aircraft. |
| Bill
of Lading - A transportation document that is the contract
of carriage containing the terms and condition between shipper and
carrier. |
| Bottleneck
- A section of a highway or rail network that experiences operational
problems such as congestion. Bottlenecks may result from factors
such as reduced roadway width or steep freeway grades that can slow
trucks. |
| Boxcar
- An enclosed railcar, typically 40 or more feet long, used for
packaged freight and some bulk commodities. |
| Breakbulk
Cargo - Cargo of non-uniform sizes, often transported on
pallets, sacks, drums, or bags. These cargoes require labor-intensive
loading and unloading processes. Examples of breakbulk cargo include
coffee beans, logs, or pulp. |
| Broker
- A person whose business it is to prepare shipping and customs
documents for international shipments. Brokers often have offices
at major freight gateways, including border crossings, seaports,
and airports. |
| Bulk
Cargo - Cargo that is unbound as loaded; it is without
count in a loose unpackaged form. Examples of bulk cargo include
coal, grain, and petroleum products. |
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| Cabotage
- A national law that requires costal and intercostal traffic to
be carried in its own nationally registered, and sometimes built
and crewed ships. |
| Capacity
- The physical facilities, personnel and process available to meet
the product of service needs of the customers. Capacity generally
refers to the maximum output or producing ability of a machine,
a person, a process, a factory, a product, or a service. |
| Cargo
Ramp - A dedicated load/unload facility for cargo aircraft.
|
| Carload
- Quantity of freight (in tons) required to fill a railcar; amount
normally required to qualify for a carload rate. |
| Carrier
- A firm which transports goods or people via land, sea or air. |
| Centralized
Dispatching - The organization of the dispatching function
into one central location. This structure often involves the use
of data collection devices for communication between the centralized
dispatching function, which usually reports to the production control
department and the shop manufacturing departments. |
| Chassis
- A trailer-type device with wheels constructed to accommodate containers,
which are lifted on and off. |
| Claim
- Charges made against a carrier for loss, damage, delay, or overcharge. |
| Class
I Carrier - A classification of regulated carriers based
upon annual operating revenues-motor carrier of property greater
than or equal to $5 million; railroads: greater than or equal to
$50 million: motor carriers of passengers; greater than or equal
to $3 million. |
| Class
II Carrier - A classification of regulated carriers based
upon annual operating revenues-motor carrier of property $1- $5
million; railroads: $10-$50 million: motor carriers of passengers;
less than or equal to $3 million. |
| Class III Carrier - A classification of regulated carriers based
upon annual operating revenues-motor carrier of property less than
or equal to $1 million; railroads: greater than or equal to $10
million. |
| Classification
Yard - A railroad terminal area where railcars are grouped
together to form train units. |
| Coastal
Shipping - Also known as short-sea or coastwise shipping,
describes marine shipping operations between ports along a single
coast or involving a short sea crossing. |
| Contract
Carrier - A carrier that does not serve the general public,
but provides transportation for hire for one or a limited number
of shippers under a specific contract. |
| Commodity
- An Item that is traded in commerce. The term usually implies an
undifferentiated product competing primarily on price and availability. |
| Common
Carrier - Any carrier engaged in the interstate transportation
of persons/property on a regular schedule at published rates, whose
services are for hire to the general public. |
| Consignee
- The receiver of a freight shipment, usually the buyer. |
| Consignor
- The sender of a freight shipment, usually the seller. |
| Container
- A "box"' typically ten to forty feet long, which is
used primarily for ocean freight shipment. For travel to and from
ports, containers are loaded onto truck chassis' or on railroad
flatcars. |
| Container
on Flatcar (COFC) - Containers resting on railway flatcars
without a chassis underneath. |
| Containerization
- A shipment method in which commodities are placed in containers,
and after initial loading, the commodities per se are not re-handled
in shipment until they are unloaded at destination. |
| Containerized
Cargo - Cargo that is transported in containers that can
be transferred easily from one transportation mode to another. |
| Contract
Carrier - Carrier engaged in interstate transportation
of persons/property by motor vehicle on a for-hire basis, but under
continuing contract with one or a limited number of customers to
meet specific needs. |
| Cubage
- Cubic volume of space being used or available for shipping or
storage. |
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| Deadhead
- The return of an empty transportation container back to a transportation
facility. Commonly-used description of an empty backhaul. |
| Detention
Fee - The carrier charges and fees applied when rail freight
cars, ship and carriers are retained beyond a specified loading
or unloading time. |
| Demurrage
- The carrier charges and fees applied when rail freight cars and
ships are retained beyond a specific loading or unloading time. |
| Direct
to store - Process of shipping direct from a manufacturer’s
plant or distribution center to the customer’s retail store,
thus bypassing the customer’s distribution center. |
| Dispatcher
- An individual tasked to assign available transportation loads
to available carriers. |
| Distribution
Center (DC) - The warehouse facility which holds inventory
from manufacturing pending distribution to the appropriate stores. |
| Dock
- A space used or receiving merchandise at a freight terminal. |
| Double-stack
- Railcar movement of containers stacked two high. |
| Drayage
- Transporting of rail or ocean freight by truck to an intermediate
or final destination; typically a charge for pickup/delivery of
goods moving short distances (e.g., from marine terminal to warehouse). |
| Drop
- A situation in which an equipment operator deposits a trailer
or boxcar at a facility at which it is to be loaded or unloaded. |
| Durable
Goods - Generally, any goods whose continuous serviceability
is likely to exceed three years. |
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| Exempt
Carrier - A for-hire carrier that is free from economic
regulation. Trucks hauling certain commodities are exempt from Interstate
Commerce Commission economic regulation. By far the largest portion
of exempt carrier transports agricultural commodities or seafood. |
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| Flatbed
- A trailer without sides used for hauling machinery or other bulky
items. |
| For-hire
Carrier - Carrier that provides transportation service
to the public on a fee basis. |
| Freight
All Kinds (FAK) - Goods classified FAK are usually charged
higher rates than those marked with a specific classification and
are frequently in a container that includes various classes of cargo. |
| Freight
Forwarder - A person whose business is to act as an agent
on behalf of a shipper. A freight forwarder frequently consolidates
shipments from several shippers and coordinates booking reservations. |
| Free
Trade Zone (FTZ) - An area or zone set aside at or near
a port or airport, under the control of the U.S. Customs Service,
for holding goods duty-free pending customs clearance. |
| Fuel-Taxed
Waterway System - Eleven thousand miles of the U.S. waterway
system designated by the Water Resources Development Act of 1986.
Commercial users of this system pay a per gallon fuel tax which
is deposited in the Inland Waterways Trust Fund and used to fund
inland navigation projects each year. |
| Four
P's - Set of marketing tools to direct the business offering
to the customer. The four P's are product, price, place and promotion. |
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| Gross
Vehicle Weight (GVW) - The combined total weight of a vehicle
and its freight. |
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| Hazardous
Material - A substance or material which the Department
of Transportation has determined to be capable of posing a risk
to health, safety, and property when stored or transported in commerce. |
| Hours
of Service - Ruling that stipulates the amount of time
a driver is allotted to work. |
| Hub
- A common connection point for devices in a network. Referenced
for a transportation network as in "hub and spoke" which
is common in the airline and trucking industry. |
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| In-bond
Shipment - A shipment status in which goods are permitted
to enter a country and temporarily stored for transport to a final
destination where the duty will be paid. |
| Inbound
Logistics - The movement of materials from shippers and
vendors into production processes or storage facilities. |
| Interline
Freight - Freight moving from point of origin to destination
over the lines of two or more transportation lines. |
| Intermodal
terminal - A location where links between different transportation
modes and networks connect. Using more than one mode of transportation
in moving persons and goods. For example, a shipment moved over
1000 miles could travel by truck for one portion of the trip, and
then transfer to rail at a designated terminal. |
| Inventory
- The number of units and/or value of the stock of good a company
holds. |
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| Just-in-Time
(JIT) - Cargo or components that must be at a destination
at the exact time needed. The container or vehicle is the movable
warehouse. |
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| Lead-time
- The total time that elapses between an order's placement and it
receipt. It includes the time required for order transmittal, order
processing, order preparation, and transit. |
| Less-Than-Containerload/Less-Than-Truckload
(LCL/LTL) - A container or trailer loaded with cargo from
more than one shipper; loads that do not by themselves meet the
container load or truckload requirements. |
| Level
of Service (LOS) - A qualitative assessment of a road's
operating conditions. For local government comprehensive planning
purposes, level of service means an indicator of the extent or degree
of service provided by, or proposed to be provided by, a facility
based on and related to the operational characteristics of the facility.
Level of service indicates the capacity per unit of demand for each
public facility. |
| Lift-on/Lift-off
(lo/lo) Cargo - Containerized cargo that must be lifted
on and off vessels and other vehicles using handling equipment. |
| Line
Haul - The movement of freight over the road/rail from
origin terminal to destination terminal, usually over long distances. |
| Liquid
Bulk Cargo - A type of bulk cargo that consists of liquid
items, such as petroleum, water, or liquid natural gas. |
| Live
Load - As situation in which the equipment operation stays
with the trailer or boxcar while being loaded or unloaded. |
| Lock
- A channel where the water rises and falls to allow boats to travel
a dammed river. |
| Logbook
- A daily record of the hours an interstate driver spends
driving, off duty, sleeping in the berth, or on duty not driving. |
| Logistics
- All activities involved in the management of product movement;
delivering the right product from the right origin to the right
destination, with the right quality and quantity, at the right schedule
and price. |
| Lumpers
- Individuals that assist a motor carrier owner operator in the
unloading of property; quite commonly used in the food industry. |
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| Neo-bulk
Cargo - Shipments consisting entirely of units of a single
commodity, such as cars, lumber, or scrap metal. |
| Node
- A fixed point in a firm's logistics system where goods come to
rest; includes plants, warehouses, supply sources, and markets. |
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| OS&D
- Over, short and damaged. Report is issued at warehouse when goods
are damaged; claim is usually filed with the carrier. |
| On-dock
Rail - Direct shipside rail service. Includes the ability
to load and unload containers/breakbulk directly from rail car to
vessel. |
| Outbound
Logistics - The process related to the movement and storage
of products from the end of the production line to the end user. |
| Operating
Ratio - A measure of operation efficiency defined as: (Operating
Expenses/Operation Revenues) x 100. |
| Owner-operator
- Trucking operation in which the owner of the truck is also the
driver. |
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| Placard
- A label that identifies a hazardous material shipment and the
hazards present. |
| Piggyback
- A rail/truck service. A shipper loads a highway trailer, and a
carrier drives it to a rail terminal and loads it on a flatcar;
the railroad moves the trailer-on-flatcar combination to the destination
terminal, where the carrier offloads the trailer and delivers it
to the consignee. |
| Pool/Drop
Trailers - Trailer that are staged at a facilities for
preloading purposes. |
| Point
of Sale (POS) - The time and place at which a sale occurs,
such as a cash register in a retail operation, or the order confirmation
screen in an on-line session. Supply chain partners are interested
in capturing data at the POS because it is a true record of the
sale rather than being derived from other information such as inventory
movement. |
| Port
Authority - State or local government that owns, operates,
or otherwise provides wharf, dock, and other terminal investments
at ports. |
| Private
Carrier - A carrier that provides transportation service
to the firm that owns or leases the vehicles and does not charge
a fee. |
| Private
Warehouse - A company owned warehouse. |
| Prepaid
- A freight term, which indicates that charges are to be paid by
the shipper. Prepaid shipping charges may be added to the customer
invoice, or the cost may be bundled into the pricing of the product. |
| Proof
of Delivery - Information supplied by the carrier containing
the name of the person who signed for the shipment, the time and
date of delivery, and other shipment delivery related information. |
| Pull
Logistics System - "Just in time" logistics system
driven by customer demand and enabled by telecommunications and
information systems rather than by manufacturing process and inventory
stockpiling. |
| Purchase
Order (PO) - The purchaser's authorization used to formalize
a purchase transaction with a supplier. The physical form or electronic
transaction a buyer uses when placing an order for merchandise. |
| Push
Logistics System - Inventory-based logistics system characterized
by regularly scheduled flows of products and high inventory levels. |
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| Rail
Siding - A very short branch off a main railway line with
only one point leading onto it. Sidings are used to allow faster
trains to pass slower ones or to conduct maintenance. |
| Reefer
Trailer - A refrigerated trailer that is commonly used
for perishable goods. |
| Regional
Railroad - Railroad defined as line-haul railroad operating
at least 350 miles of track and/or earns revenue between $40 million
and $266.7 million. |
| Reliability
- Refers to the degree of certainty and predictability in travel
times on the transportation system. Reliable transportation systems
offer some assurance of attaining a given destination within a reasonable
range of an expected time. An unreliable transportation system is
subject to unexpected delays, increasing costs for system users. |
| Reverse
Logistics - A specialized segment of logistics focusing
on the movement and management of products and resources after the
sale and after delivery to the customer. Includes product returns
and repair for credit. |
| Receiving
- The function encompassing the physical receipt of material, the
inspection of the shipment for conformance with the purchase order
(quantity and damage), the identification and delivery to destination,
and the preparation of receiving reports. |
| Return
to Vendor (RTV) - Material that has been rejected by the
customer or buyer's inspection department and is awaiting shipment
back to supplier for repair or replacement. |
| Radio
Frequency (RFID) - A form of wireless communication that
lets users relay information via electronic energy waves from a
terminal to a base station, which is linked in turn to a host computer.
The terminals can be placed at a fixed station, mounted on a forklift
truck, or carried in the worker's hand. The base station contains
a transmitter and receiver for communication with the terminals.
When combined with a bar-code system for identifying inventory items,
a radio-frequency system can relay data instantly, thus updating
inventory records in so-called "real time". |
| Roll-on/Roll-off
(ro/ro) Cargo - Wheeled cargo, such as automobiles, or
cargo carried on chassis that can be rolled on or off vehicles without
using cargo handling equipment. |
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| Seasonality
- Repetitive pattern of demand from year to year (or other repeating
time interval) with some periods considerably higher than others.
Seasonality explains the fluctuation in demand for various recreational
products, which are used during different seasons. |
| Shipper
- Party that tenders goods for transportation. |
| Shipping
Manifest - A document that lists the pieces in a shipment. |
| Short
Line Railroad - Freight railroads which are not Class I
or Regional Railroads, that operate less than 350 miles of track
and earn less than $40 million. |
| Short-sea
Shipping - Also known as coastal or coastwise shipping,
describes marine shipping operations between ports along a single
coast or involving a short sea crossing. |
| Sleeper
Team - Two drivers who operated a truck equipped with a
sleeper berth; while one driver sleeps in the berth to accumulate
mandatory off-duty time, the other driver operates the vehicle. |
| Stock
Keeping Unit (SKU) - A category of unit with unique combination
of form, fit and function. |
| Stock
Outs - Merchandise that is requested by a customer but
is temporarily unavailable. Also referred to as (OOS). |
| Stop
Off Charge - Charge associated with a load that has more
than one drop off point. Typically, the first stop of a multistop
load is free, and then the charge applies to the subsequent stops. |
| Strategic
Highway Network (STRAHNET) - A network of highways which
are important to the United States' strategic defense policy and
which provide defense access, continuity, and emergency capabilities
for defense purposes. |
| Strategic
Rail Corridor Network (STRACNET) - An interconnected and
continuous rail line network consisting of over 38,000 miles of
track serving over 170 defense installations. |
| Switching
and Terminal Railroad - Railroad that provides pick-up
and delivery services to line-haul carriers. |
| Supply
Chain - Starting with unprocessed raw materials and ending
with final customer using the finished goods. |
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| TEU
- Twenty-foot equivalent unit, a standard size intermodal container |
| Third-party
Logistics (3PL) Provider - A specialist in logistics who
may provide a variety of transportation, warehousing, and logistics-related
services to buyers or sellers. These tasks were previously performed
in-house by the customer. |
| Throughput
- Total amount of freight imported or exported through a seaport
measured in tons or TEUs. |
| Ton-mile
- A measure of output for freight transportation; reflects weight
of shipment and the distance it is hauled; a multiplication of tons
hauled by the distance traveled. |
| Trailer
on Flatcar (TOFC) - Transport of trailers with their loads
on specially designed rail cars. |
| Transit
time - The total time that elapses between a shipment's
delivery and pickup. |
| Transloading
- Transferring bulk shipments from the vehicle/container of one
mode to that of another at a terminal interchange point. |
| Truckload
(TL) - Quantity of freight required to fill a truck, or
at a minimum, the amount required to qualify for a truckload rate. |
| Twenty-foot
Equivalent Unit (TEU) - The 8-foot by 8-foot by 20-foot
intermodal container is used as a basic measure in many statistics
and is the standard measure used for containerized cargo. |
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| Unit
Train - A train of a specified number of railcars handling
a single commodity type which remain as a unit for a designated
destination or until a change in routing is made. |
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| Vehicle
Miles of Travel (VMT) - A unit to measure vehicle travel
made by a private vehicle, such as an automobile, van, pickup truck,
or motorcycle. |
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| Warehouse
- Storage place for products. Principal warehouse activities include
receipt of product, storage, shipment and order picking. |
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