An Advice Note is a document issued by a supplier of goods informing the customer that the goods have been dispatched. This document is generally received before the goods themselves.
An affreightment is a contract with a carrier for the transportation of goods. It outlines the terms and conditions under which the cargo will be transported.
Air freight refers to the use of air transportation for sending cargo. It offers the advantages of speed and reliability, making it ideal for shipping urgent, high-value, or perishable goods.
A back haul refers to the shipper's movement when returning over a route previously used, often optimizing logistical efficiency by having cargo for both legs of the journey.
A Bill of Lading is a legal document issued by a carrier to a shipper, detailing the type, quantity, and destination of the goods being carried. It serves as a shipment receipt and is a key part of international trade.
Goods brought into a country that are placed in a bonded warehouse until all duties are paid.
Cargo refers to freight or merchandise transported on a transportation vehicle, such as a ship, airplane, truck, or train, excluding passengers. It covers a broad range of goods, from raw materials to finished products, playing a crucial role in global trade and logistics.
Cargo insurance is a specialized insurance policy designed to provide financial protection for goods while they are being transported, typically by sea but also by other modes of transport. It covers a single shipment or all shipments under a continual agreement, protecting against most risks associated with the journey.
Carload Rate refers to a discounted transportation charge applicable when a shipment meets a certain volume or quantity of freight that is sufficient to fill a freight car. This rate is especially relevant for large-volume shipments.
An entity engaged in the business of providing transportation services for passengers or cargo. Carriers can operate across various modes of transportation including air, sea, road, and rail.
A Carrier's Lien is a legal right bestowed upon providers of transportation services (carriers) to retain possession of the cargo they transport as security for the payment of services rendered.
Cartage refers to the charge or service for moving goods by truck, wagon, or other vehicle. It plays a crucial role in logistics and supply chain management.
A transaction requiring that goods be paid for in full by cash or certified check at the point of delivery. Also known as Collect on Delivery with the same abbreviation.
COD or 'Collect on Delivery' is a financial transaction where payment for goods is collected at the time of delivery rather than at the time of purchase. This term is often used interchangeably with 'Cash on Delivery'.
A common carrier is an entity or individual that provides transportation services for people or goods and is classified as a public utility.
A consignee refers to an individual or organization authorized to receive goods sent from a consignor. The consignee acts as the recipient of goods, typically in a shipping context, and may also serve as an agent to sell the goods on behalf of the consignor.
An entity that combines less-than-carload shipments into full carloads to take advantage of lower shipping rates for full carloads.
A contract carrier is a transportation service that accepts people or goods from one or more shippers under an agreement for compensation, typically providing specialized services and equipment tailored to meet the unique needs of its customers.
Cost and Freight (C&F) denotes a shipping agreement wherein the seller is responsible for covering the cost and freight to transport goods to a specified destination. However, the buyer assumes the responsibility for insurance once the goods are loaded onto the shipping vessel.
In the context of transportation, 'deadhead' refers to the act of moving a piece of transportation equipment, such as a bus, train, or truck, when it is not carrying a paying load (either people or freight). It also extends to describe a nonpaid trip or someone who uses a service without paying.
The interval between the placement of an order for replenishing stock and the receipt of that ordered item. It is a key metric in supply chain and inventory management, influencing operational efficiency.
Demurrage is a charge levied on shipping vehicles when they are held by the consignor or consignee for an excessive amount of time beyond agreed laytime.
A warehouse facility specializing in the collection and shipment of merchandise, ensuring efficient movement and storage of goods within a supply chain.
A distribution centre is a specialized warehouse typically operated by manufacturers to handle the bulk receipt and dispatch of goods to retailers.
A distribution strategy is management's plan for moving products to intermediaries and ultimately to final customers. It involves decision-making regarding the channels of distribution, the logistics and transportation of goods, and the mechanisms for inventory management.
Express Mail is a next-day delivery service offered by the U.S. Postal Service (USPS) that guarantees next-day delivery for shipments between major U.S. cities. This service is applicable for letters or packages weighing up to 70 pounds. Postage costs vary based on weight, distance, and the specific type of Express Mail service used.
FedEx, officially known as Federal Express Corporation, is a global courier delivery services company recognized for its overnight shipping services and an innovative tracking system.
FedEx Corporation, originally known as Federal Express, is a multinational delivery services company known for revolutionizing logistics and overnight shipping.
A Foreign Trade Zone (FTZ) is a designated, enclosed area near a port where goods can be stored, inspected, packaged, or undergo other processes without the assessment of duties or customs fees.
In the context of shipping, 'forward' refers to the act of sending a package or goods from one location to another. This often involves redirecting items to a new address when the original address is not suitable for delivery.
A forwarding company, also known as a freight forwarder, is a business entity that arranges the shipment of goods on behalf of individuals or companies. They handle the logistics of transporting goods, including documentation and customs clearance.
Free In and Out (FIO) denotes a selling price that includes all costs associated with loading goods into a container, road vehicle, ship, etc., and unloading them out of the transport.
Free on Board (FOB) is a term used in international commerce to distinguish the point at which the seller relinquishes all ownership, responsibility, and risk for the shipped goods.
A freight forwarder, also known as a forwarding company, acts as an intermediary between a shipper and various transportation services, facilitating the global movement of goods while managing logistics and documentation.
Gross weight refers to the total weight of goods within a shipping container, including the weight of the container itself. This measurement is crucial in logistics and transportation for managing load limits and calculating shipping costs.
House to house transportation refers to the seamless logistics service that facilitates the movement of goods directly from the shipper's location to the receiver's location without intermediate handling.
International Commercial Terms, or Incoterms, first published in 1936 by the International Chamber of Commerce to promote standardized terminology for international trade.
Inherent vice refers to a defect or innate characteristic of an item that results in its damage or destruction without external intervention, often excluded from cargo insurance policies.
In transportation, an inland carrier is a company responsible for moving goods from a port of entry to an inland point within the continent. These carriers play a crucial role in the supply chain by ensuring that goods reach their final destinations efficiently.
In transportation, a published fare or shipping rate that includes the cost of two or more carriers (such as airlines or railroads) required to reach the destination sought.
Just-In-Time (JIT) inventory control is a methodology designed to improve efficiency by reducing in-process inventory and its associated costs. It involves close coordination with suppliers to align production schedules with sales levels and often integrates computerized systems for optimal inventory management.
Lading refers to the cargo that is shipped and transported from one place to another via various modes of transportation such as ships, trucks, trains, or planes. The term also extends to the document known as the Bill of Lading, which acts as a detailed receipt of the shipment, outlines the condition of the cargo, and serves as a contract between the shipper and the carrier.
A transport system where fully laden barges (lighters) are loaded aboard a larger mothership for sea transport. The mothership is designed with features to easily facilitate loading and unloading at the waterline, utilizing onboard cranes.
An amount of freight that is insufficient to command the lower shipping rates that apply to full carloads.
The comprehensive plan for scheduling the delivery of required supplies and materials at destinations as needed.
A detailed statement of the contents loaded on a ship or other vehicle, used for cargo identification and safety purposes.
Materials handling involves the moving, packaging, and storing of raw materials, in-progress inventory, and finished goods within a business, including shipping, receiving, and processing operations.
Materials Management is the administration of all activities concerned with the ordering, storage, and movement of materials, with a focus on optimizing the storage of raw materials, parts, and the manning of production operation centers.
A Materials Returns Note (MRN) is a document used in the inventory and supply chain management process to record the return of materials from production or other departments to the warehouse or storage location.
Motor freight refers to the use of trucks, as opposed to railroad trains, to ship freight. This mode of transport is frequently faster on a door-to-door basis compared to rail freight.
On order refers to goods or services that have been requested through a purchase order but have not yet been received or paid for.
An order bill of lading (often abbreviated as B/L or BoL) is a negotiable document that serves as a receipt for shipped goods and provides proof of shipment. More importantly, it can be transferred to another party, granting the holder rights to the goods.
Order processing encompasses all the activities required to prepare, confirm, and fulfill a customer order. It includes steps such as order receipt, sorting, lining, picking, packing, and shipping, aiming to ensure timely and accurate delivery.
A packing list is a detailed statement of the contents of a container, typically included within the container, used for counting and matching quantities of merchandise by the person who opens the container.
Payload refers to the cargo or freight that produces revenue or income, typically measured by weight. It encompasses merchandise transported by carriers for profit, including returned merchandise that does not result in additional trips.
Perishable items are goods that have a limited shelf life and can spoil, decay, or become unsuitable for consumption if not handled, stored, and processed properly.
Physical distribution involves the process of moving finished products from the producer to the consumer, including all activities concerned with the efficient movement and storage of goods.
A 'Piece' refers to an individual unit of a product that is part of a batch, typically used in shipping and logistics to describe the smallest standard unit being handled.
Pier to house shipping refers to the transportation of goods from the storage location at the shipping port directly to the consignee's specified location, typically their home or business.
A private carrier is a transportation system owned and operated by a company for its own shipping requirements, specifically transporting goods or passengers exclusively for that company's business purposes.
A public carrier, often referred to as a common carrier, is an individual or business that advertises to the public for the transportation of goods or passengers for a fee.
A receiving clerk plays a crucial role in a firm's logistics by inspecting, verifying, and recording all incoming goods to ensure accurate inventory management and quality control.
Reconsign refers to the process of changing the destination or consignee of freight while it is in transit. This often occurs to accommodate changes in supply chains or to correct delivery errors.
A specially designed cargo ship that allows any cargo with wheels to be rolled on at the port of departure and then rolled off at the destination. This transportation method facilitates rapid turnaround, reduces labor requirements, and enhances ship utilization.
U.S. Postal Service designation for packages containing goods that may be harmed in shipping, such as live chickens or perishable produce.
A standing order is an instruction to make repeated shipments of goods without requiring individual reorder confirmations. These orders are continuous, adhering to predefined quantity and time specifications.
The main post office in a state responsible for receiving and distributing all mail within the state.
A stevedore is a company or individual responsible for unloading and loading cargo from ships, ensuring smooth and efficient movement of goods at ports. The terms 'longshoreman' and 'docker' are often used interchangeably with stevedore.
A stock-out occurs when the inventory of a particular item is depleted, leading to a situation where no stock remains in store available for sale or use.
A Stockkeeping Unit (SKU) is a unique identifier for each distinct product and service that can be purchased. It helps in tracking inventory and simplifying sales processes.
A stockroom is an area or room where stock of goods, materials, and other supplies are maintained, often used in commercial and industrial settings for inventory management, storage, and organization.
A store card is a specific type of card used within a particular store or organization to record and control inventory movements and levels.
A store requisition is a document generated by user departments or individuals in an organization to request raw materials or supplies from the store or warehouse. It facilitates the internal movement and management of inventory within a company.
A Stores Issue Note (SIN) is a document used in inventory management to authorize the release or issue of inventory items from the warehouse to the production department or other requesting departments.
Stowage refers to the methodical arrangement of freight in a ship's storage area to minimize risk to both the vessel and its cargo, optimizing space usage and ensuring the safety of transported goods.
A non-negotiable bill of lading that specifies the carrier is to deliver the goods to a designated person at a specific location.
Tare weight refers to the weight of an empty container, such as an empty truck or packing material, and is used in logistics to measure the net weight of goods.
Through Rate refers to the total cost of shipping goods when two or more carriers are utilized. It is determined by either a joint rate agreement between the carriers or the sum of the rates charged by each individual carrier.
Tracking refers to the process of monitoring and recording the progress or performance of various activities, objects, or data points over time. This can be applied in numerous fields such as logistics, financial performance, project management, marketing campaigns, and online user behavior.
A tramp ship or boat is a maritime vessel that does not follow a regular schedule or itinerary; instead, it travels wherever freight shipments take it.
A truckload (TL) refers to a quantity of cargo that fills a truck to its maximum capacity, typically utilized in logistics and transportation for the efficient and cost-effective movement of goods.
United Parcel Service (UPS) is a freight company that specializes in the transportation of letters, packages, and freight. It is one of the leading providers in the logistics and transportation industry globally.
Visibility refers to the immediate insights that managers gain into a business operation through effective supply chain management. It involves tracking and managing all aspects of the supply chain process, from procurement of raw materials to delivery of the final product.
The period during which the operators of a machine or the machinery itself are idle or waiting for work, materials, or repairs. This is a key concept in manufacturing, logistics, and service industries.
A warehouse is a structure designed for the storage of commercial inventory, used primarily by manufacturers, importers, exporters, wholesalers, and transport businesses.
A waybill is a document prepared by a common carrier at the start of a shipment that details the route the goods will follow to their final destination and states the transportation cost. The waybill typically accompanies the shipment to its destination.
A ZIP Code is a five-digit numerical code defined by the U.S. Postal Service (USPS) to simplify and expedite mail distribution. The United States is divided into 10 large geographical areas, with the first ZIP code digit 0 in the northeast and 9 in the west. The second and third digits are used to divide states, while the fourth and fifth digits represent local delivery areas.
