![EFL Shipping Facility](images/glossary6a89.jpg?itok=ounf5pxG)
A
Agent
A person who transacts business on
behalf of another person or
company with full or limited
decision- making authority. In
shipping, an agent may supervise
customs procedures, documentation,
or insurance. This person may also
receive a portion of any monetary
gain from a transaction as
payment.
Air Freight
The transportation of goods by
aircraft.
American Trucking Associations
(ATA)
The largest national trade
association for the trucking
industry.
Application Programming
Interface (API)
Technology used to expose
functionality to an external
system.
Arrival Notice
A notification provided to the
consignee or notify party by the
carrier when a shipment has
arrived.
Sources: Shipping Solutions,
Partner Ship
Beneficial Cargo Owner (BCO)
An importer that takes
control of a shipment at the destination using their own logistics assets
instead of utilizing a third-party source.
Bill of Lading (BOL)
The bill of lading (BOL) is
the legally-binding contract between the shipper and the carrier, broker
or agent that defines all aspects of the freight shipping arrangement
including what is being shipped and to whom.
Bonded Goods
Imported shipments on which customs
charges are still owing.
Booking Confirmation
A receipt for the main
shipment leg (ex. air or ocean).
Brokerage License
A brokerage license is a legally
required document that a broker obtains in order to have the ability to
make land, sea and air freight shipping arrangements.
Bulk Freight
Freight that is not contained within
packages or containers is referred to as bulk freight. Sometimes, bulk
freight comes in the form of liquid or a granular form such as sand.
Bunker Adjustment Factor (BAF)
A floating part of
ocean freight charges which represents additions due to oil prices.
Sources: Shipping Solutions,
Partner Ship
Cargo
Any goods being transported by a carrier.
Cargo Insurance
Insurance to protect against
damages or theft in transit. Usually arranged through forwarders.
Carrier
A party that transports goods for another
person or company.
Claim
A demand made on a transportation company for
payment for goods allegedly lost or damaged while the shipment was in the
transportation provider's possession.
Collect on Delivery (COD)
A shipment for which the
transportation provider is responsible for collecting the sale price of
the goods shipped before delivery.
Consignee
The individual who is financially
responsible for the receipt of a freight shipment. This person is usually
the receiver of the shipment as well.
Consignor
An individual (usually the seller) who
sends goods to the consignee and is the legal owner until the consignee
pays them in full.
Consolidation
A consolidated shipment is when two
or more shipments are combined to save money on freight shipping costs.
This shipping method is used in less than truckload shipping with multiple
stops before reaching the final destination.
Container
A container looks like a truck trailer
with no wheels and is now among the most common freight shipping methods
in the United States and abroad. Containers are used for intermodal
shipping and come in standard sizes to ensure they fit on standard trucks,
rail cars and container ships.
Customs
The agency within a government that is
responsible for collecting duties and enforcing import and export
regulations.
Customs Broker
A person or company who acts on
behalf of freight importers and exporters with respect to the country’s
customs transactions.
Customs of the Port (COP)
A phrase referring to
local rules and practices which may impact a shipment.
Customs-Trade Partnership Against Terrorism
(C-TPAT)
A supply chain security program led by the U.S.
Customs and Border Protection focused on improving the security of private
companies’ supply chains with respect to terrorism.
Cut-Off Time
The latest time cargo may be delivered
to a terminal for loading.
Sources: Shipping Solutions,
Partner Ship
Dangerous Goods
A product may be considered
dangerous if it is one of the following: flammable, explosive, poisonous,
toxic, etc. This may require special shipping, packaging and warehousing.
U.S. Department of Transportation (DOT)
A U.S.
agency within the executive branch which oversees transportation in the
United States.
Distribution Center
A facility where cargo is kept
until it is ready to be moved. Also known as a warehouse.
Dock
A platform, generally the same height as the
trailer floor, where trucks are loaded and unloaded.
Duties
Taxes collected on importing and exporting
goods. Also known as tariffs.
Sources: Shipping Solutions,
Partner Ship
Electronic Data Interchange (EDI)
The electronic
transmission of routine business documents, such as purchase orders,
invoices and bills of lading, between computers in a standard format. The
data formats, or transaction sets, are usually sent between mainframe
computers.
Embargo
A government order restricting the
transport of freight to a certain destination.
Estimated Time of Arrival (ETA)
The date by which
cargo is estimated to arrive at its destination.
Estimated Time of Departure (ETD)
The date by which
cargo is estimated to depart from its origin.
Exceptions
When a problem such as shortage or
damage is noted at the time of delivery, an exception is noted on the bill
of lading before it is signed to designate there was a problem with the
shipment.
Expedited Shipping
Streamlined freight that ships
at a faster rate than would normally be customary.
Sources: Shipping Solutions,
Partner Ship
Freight Lane
The route on which a large amount of
freight flows back and forth. Frequently just called a “Lane.”
Free on board (FOB)
The seller agrees to deliver
merchandise, free of transportation expense, to the place specified by the
contract.
FOB destination
Under this arrangement, title and
risk remain with the seller until it has delivered the goods to the
location specified in the contract.
FOB origin
Title and risk pass to the buyer at the
moment the seller delivers the goods to the carrier.
Freight bill
A shipping document used to confirm
shipment delivery and indicate payment terms (prepaid or collect) and that
describes the shipment.
Freight Broker
A company that arranges for the
transportation of freight belonging to others, utilizing for-hire carriers
to provide the actual transportation. Brokers do not assume responsibility
for the cargo and usually do not take possession of the freight.
Freight forwarder
A freight forwarder combines
less-than-truckload (LTL) or less-than-container-load (LCL) shipments into
full container or truckload lots. Freight forwarders are designated as
common carriers and can issue bills of lading and accept responsibility
for goods.
FCL (Full Container-Load)
A full container-load
shipment is when a shipper contracts for the transportation of an entire
container. The vast majority of intermodal freight is contracted in this
manner.
Sources: Shipping Solutions,
Partner Ship
Garment on Hanger (GOH)
Garment on Hanger
containers are converted to be able to safely and conveniently carry
garments on hangers, the same way you see them hanging at major retail
stores.
Green Freight Asia
An industry-led network focused
on driving sustainable road freight in the Asia Pacific region to
ultimately improve fuel efficiency, reduce CO2e emissions and lower
logistics costs across the entire supply chain.
Green Shipping
Shipping technologies and practices
that mitigate the effects of freight on the environment, usually related
to carbon emissions.
Sources: Shipping Solutions,
Partner Ship
Hazardous Materials (HazMat)
A substance or
material may be designated as hazardous if the transportation of the
material in a particular amount and form poses an unreasonable risk to
health and safety or property.
Sources: Shipping Solutions,
Partner Ship
Inbound Freight
Shipments that come from a vendor
to a business or facility, like a warehouse.
INCO Terms
INCO terms are the universal trade terms
published by the International Chamber of Commerce (ICC). They consist of
three-letter codes that define these terms and are used globally.
Intermodal Transportation
When freight is shipped
using two or more modes of transportation. Intermodal transportation
typically refers to truck-rail-truck shipments but may also include truck
to air shipping or truck to ship in the event freight is being shipped
overseas.
International Air Transport Association (IATA)
A
trade association of the world’s airlines that sets technical standards
for airlines.
Sources: Shipping Solutions,
Partner Ship
Just in Time (JIT)
A method of inventory control
which minimizes warehousing and in which the container acts as a moveable
warehouse. Arriving on schedule is crucial.
Sources: Shipping Solutions,
Partner Ship
Kitting
Light assembly of components or parts into
defined units. Reduces the need to maintain an inventory of pre-build,
completed products.
Sources: Shipping Solutions,
Partner Ship
Lading
The cargo carried in a transportation
vehicle.
Less than Container Load (LCL)
Merchandise that
takes up less than the entire space of a full container, which typically
means grouping various shipments together in one container.
Less than Truckload (LTL)
Merchandise that takes up
less than the entire space of a full truck, which typically means grouping
various shipments together in a single truckload.
Sources: Shipping Solutions,
Partner Ship
Maritime
Relating to transportation by sea.
Multimodal Transportation
Shipment moves by more
than one mode of transportation (ground, air, or ocean).
Sources: Shipping Solutions,
Partner Ship
Non-Vessel Operating Common Carriers (NVOCC)
A type
of ocean freight forwarder. NVOCCs book space in large quantities for a
reduced rate, then sell space to shippers in lesser amounts. NVOCCs
consolidate smaller shipments into a container load that ships under one
bill of lading.
North American Free Trade Agreement (NAFTA)
A free
trade agreement, implemented in 1994, between Canada, the United States
and Mexico.
Sources: Shipping Solutions,
Partner Ship
Ocean Freight
The transportation of goods by sea
vessel.
Origin
The place where a shipment first enters
EFL’s freight system; the starting point for a shipment.
Outbound Freight
Shipments that leave warehouses or
other facilities.
Overage
When the number of units received is
greater than the quantity stated on the export documents.
Sources: Shipping Solutions,
Partner Ship
Packing List
A list that shows how the goods were
packed for inspection and shipping purposes.
Pallet
The platform on which cartons are stacked
for shipment or movement as a group.
Parcel
A small shipment.
Peak
The time period during which customers demand
the greatest quantity.
Pick and Pack
The process of picking items from
inventory and packing them directly into shipment containers.
Pier
A structure to which a ship is secured in
order to load or unload freight.
Port
A harbor with piers used to load or unload
freight.
Proof of Delivery (POD)
Information supplied by the
carrier containing shipment delivery-related information to confirm
delivery of goods.
Purchase Order (PO)
The purchaser’s authorization
used to formalize a purchase transaction with a supplier.
Sources: Shipping Solutions,
Partner Ship
Quality Control
The management function that
ensures that the goods or services meet the product or service
specifications.
Sources: Shipping Solutions,
Partner Ship
Request for Information (RFI)
A document which
provides information concerning needs and requirements for a manufacturer.
This is used to solicit proposals from suppliers.
Sources: Shipping Solutions,
Partner Ship
Sanction
An embargo enforced by a government
against another country.
Shipper
The party that tenders goods for
transportation.
Shortage
When the number of units received is less
than the quantity stated on the shipping documents.
Spot Demand
Demand with a short lead time, usually
provided at a premium price.
Statement of Work (SOW)
A description of products
to be supplied under a contract.
Sources: Shipping Solutions,
Partner Ship
Tariff
A tariff establishes the cost and contract
of a freight shipment for the shipper and the carrier.
Tender
The document which describes a business
transaction to be performed.
Terminal
EFL building and grounds where shipments
are prepared for local delivery or transportation to other terminals.
Third-Party Logistics (3PL)
Outsourcing all or much
of a company’s logistics operations to a specialized company.
Tonnage
The weight (in tons) of a shipment.
Transit Time
The total amount of time from freight
being picked up to freight being delivered.
Transshipment
The transfer of cargo from one
carrier to another during the freight’s journey.
Trucking
The transportation of goods by truck.
Twenty-Foot Equivalent Unit (TEU)
A shipping
container whose internal dimensions measure about 20 feet long, 8 feet
wide and 8 feet tall. This container can hold between 9 and 11 pallets.
Two TEUs have the capacity of a single forty-foot equivalent unit (FEU),
which can hold between 20 and 24 pallets.
Sources: Shipping Solutions,
Partner Ship
Value-Added Service
A logistical service which
forwarders provide beyond the most basic shipping services. These
additional activities can include services like customs clearance, door
delivery, repackaging or Garment on Hanger (GOH).
Vessel
A floating structure designed for transport.
Visibility
The ability to access or view
information related to your cargo or shipment as it relates to your supply
chain.
Sources: Shipping Solutions,
Partner Ship
Warehousing
The storage of goods in a facility for
a specified period. Freight shippers usually store their goods at
warehouses until they’re ready to ship.
Waybill
A non-negotiable document prepared by or on
behalf of the carrier at origin that specifies origin point, destination,
route, consignor, consignee, details of the shipment and amount charged
for the service.
Warehouse Management System (WMS)
A software
application designed to support and optimize warehouse functionality and
distribution center management.
World Trade Organization (WTO)
An organization
established in 1995 that forms the cornerstone of the world trading
system.
Sources: Shipping Solutions,
Partner Ship