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Glossary of Terms
A list of common terms used in the industry.


M - Z
Major Carrier A for-hire certificated air carrier that has annual operating revenues of $1 billion or more, the carrier usually operates between major population centers.
Manifest A list of all cargos on a vessel. The specifications of a cargo made out and signed by the master of a ship.
Manufaturer's Particulars A plates describing the name and address of the container manufacturer and particulars of the containers. (Data Plate)
Marine Insurance Insurance to protect against cargo loss and damage when shipping by water transportation.
Maritime Administration A federal agency that promotes the merchant marine, determines ocean ship routes and services equipment, and awards maritime subsidies.
Material Handling Equipment Forklift trucks, platform tracks, warehousing industrial cranes, stradle carrier trucks, pallet trucks, platform trucks, warehousing trailers, conveyer systems and others, used in storage and handling operations.
Materials Handling Short-distance movement of goods within a storage area.
Materials Management Movement and storage functions associated with supply goods to the firm.
Materials Requirements Planning (MRP) A decision-making technique used to determine how much material to purchase and when to purchase it.
Maximum Cube A level of cube utilization that closely approximates the stated cubic capacity of a container.
Maximum Gross Weight Weight of a container and its payload.
Maximum Payload Maximum cargo that can be loaded into a container either by weight or volume.
Measurement Cargo Cargo of which one long ton (2240 lbs.) occupies 40 cubic feet or more.
Mechanically Ventilated Container A container fitted with a means of forced air ventilation.
Measurement Ton Equals 40 cubic feet; used in water transportation rate-making.
Merger The combination of two or more carriers into one company for the ownership, management, and operation of the properties previously operated on a seperate basis.
Methyl Bromide An odorless and dangerous poison used occasionally as a fumigant to kill or rid a container of infestation. Used primarily as a requirement for Australian and New Zealand dunnage.
Microbridge A joint water, rail or truck container movement on one Bill of Lading to or from a foreign port, to or from an inland U.S. city.
Mileage Allowance An allowance based upon distance and given by railroads to shippers using private railcars.
Mileage Rate A rate based upon the number of miles the commodity is shipped.
Minibridge A joint water, rail or truck container move on a single Bill of Lading for a through route from a foreign port to a U.S. port detination through an intermediate U.S. port or the reverse.
Minimum Weight The shipment weight specified by the carrier's tariff as the minimum weight required to use the TL or CL rate; the rate discount volume.
Mixed Loads The movement of both regulated and exempt commodities in the same vehicle at the same time.
Motor Carrier A term used to indicate a company that moves trailers via highway.
Modal Split The relative use made of the modes of transportation; the statistics used include ton-miles, passenger-miles, and revenue.
Multiple Car Rate A railroad rate that is lower for shipping more than one carload rather than just one carload at a time.
Multiple Consignee Container A container loaded with cargo for two or more consignees. Cargo may be assigned to a breakbulk point for distribution to the final consignee or it may be delivered to each consignee via the stop-off service provided by carriers.
Multi-Tank Container A container frame fitted to accommodate two or more separate tanks for liquids.
National Carrier A for-hire cerificated air carrier that has annual operating revnues of $75 million to $1 billion; the carrier usually operates between major population centers and areas of lesser populaion.
National Railroad Corporation Also known as Amtrak, the corporations established by the Tail Passenger Service Act of 1970 to operate most of the nation's rail passenger.
Nationalization Public ownership, financing, and operation of a business entity.
NEC Not Elsewhere Classified.
Neobulk Shipment of bulk and other forms of homgeneous types of cargo in one vehicle.
Nesting Fitting one article of cargo inside the other to economize space.
Net Short Ton 2,000 pounds.
Net Tare Weights The weight of an empty container plus any fixtures permanently attached.
Net Weight (Payload) The difference between the gross weight and the tare weight of a container.
Node A fixed point in a firm's logistics system where goods come to rest; plants, warehouses, supply sources, markets.
Noncertificated Carrier A for-hire carrier that is exempt from economic regulation.
Non-Vessel-Owning Common Carrier (NVOCC) A firm that consolidates and disperses intrnational containers that originate at or are bound for inland ports.
Nose Front of the container.
One-Way-Lease Lease that covers the outbound voyage only, after which the container is returned to the lessor at or near destination.
Open-Top Container A container fitted with a solid removeable roof or with a tarpaulin roof that can be loaded or unloaded from the top.
Optimum Cube The highest level of cube utilization that can be achieved when loading cargo into an ocean-freight container.
Out-of-pocket Cost The cost directly assignable to a particular unit of traffic and which would not have been incurred if the movement had not been performed.
Overall External Dimensions Maximum external overall dimensions of a container.
Overheight Cargo Cargo stowed in an open-top container that projects above the uppermost level of the roof struts.
Over-the-road A motor carrier operation that reflects long distance, intercity moves; the opposite of local operations.
Owner-Operator A trucking operation in which the owner of the truck is also the driver.
Pallet A platform on which cargo is loaded, can be stacked and can be handled by forklift or sling, usually constructed of wood.
Payload Cargo weight/measurement on which freight is paid. Also carrying capacity of a container.
Peak Demand The time period during which the quantity demanded is greater than during any other comparable time period.
Per Diem A rental charge fixed on a per-day basis.
Perishable Cargo Freight subject to decay or deterioration.
Permit A grant of authority to operate as a contract carrier.
Personal Discrimination Charging different rates to shippers with similar transportation characteristics, or vice versa.
Physical Distribution The coordination of the total movement of materials into the manufacturing plant until final delivery of the finished product to the local or foreign distribution terminal and ultimate consumer.
Pier The structure to which a vessel is secured for the purpose of loading and unloading cargo.
Pier-to-House A shipment that is loaded into a conatiner at the pier or terminal then exported directly to the consignee's designated area for unloading.
Pier-to-Pier Containers loaded at port of loading and discharged at port of destination.
Piggyback A rail-truck service. A highway trailer is loaded by a shipper and is driven to a rail terminal where it is loaded on a rail flatcar; the trailer-on-flatcar is moved to the destination terminal by the railroad where the trailer is off-loaded and delivered to the consignee.
Pilferage When cargo is broached and part or all of the content is stolen.
Place Utility A value created in a product by changing its location. Transportation creates a place utility.
Pool A continuous supply of containers at a specific location to facilitate continuous volume loading.
Pooling An agreement among carriers to share the freight to be hauled or to share the profits. Pooling agreements were outlawed in the Interstate Commerce Act, but the Civil Aeronautics Board approved profit pooling agreements for air carriers during strikes.
Port A harbor or haven where ships may anchor, or that side of the vessel on the left hand or a person who stands on board facing the bow.
Port Authority A state or local government that owns, operates, or wotherwise provides wharf, dock, and other terminal investments at ports.
Primary Business Test A test used by the Interstate Commerce Commission to determine if a trucking operation is bonafide, private transportation; the private trucking operation must be incidental to and in the furtherance of the primary business of the firm.
Primary Highways Highways that connect lesser populated cities and major cities.
Private Carrier A carrier that provides transportation service to the firm that owns or leases the vehicles and does not charge a fee. Private motor carriers may haul at a fee for wholly owned subsidiaries.
Private Warehousing The storage of goods in a warehouse that is owned by the company that has title to the goods.
Productivity A measre of efficiency of resource utilization; defined as the sum of the owutputs divided by the sum of the inputs.
Profit Ratio The percentage of profit to sales - that is, profit divided by sales.
Public Warehousing The storage of goods by a firm that offers storage service for a fee to the public.
Purchasing The functions associated with buying the goods and services required by the firm.
Quality Control The management function that attemptes to ensure that the goods or services manufactured or purchased meet the product or service specifications.
Quoin A wedge-shaped piece of timber used to secure barrels against movement.
Rate Bureau A group of carriers that get together to establish joint rates, to divide joint revenues and claim liabilities, and to publish tariffs.
Reasonable Rate A rate that is high enough to cover the carrier's cost but not too high to enable the carrier to realize monopolistic profits.
Reconsignment The act of changing the Bill of Lading as to consignee or destination while the shipment is in transit.
Reefer (Refrigeration Container) A controlled temperature container.
Refrigerated Warehouse A warehouse that is used to store perishable items requiring controlled temperatures.
Regional Carrier A for-hire air carrier, usually certificated, that has annual operating revenues of less than $75 million; the carrier usually operates within a particular region of the country.
Regular Route Carrier A motor carrier that is authorized to provide service over designated routes.
Relative Humidity A ratio indicated as a percentage of the amount of moisture in air relative to that and saturated air at the same temperature.
Relay Terminal A motor carrier terminal designed to facilitate the substitution of one driver for another who has driven the maximum hours permitted.
Reliability A carrier selection criterion that considers the variation in carrier transit time; the consistency of the transit time provided.
Reperation The Interstate Commerce Commission could require railroads to reqay users the difference between the rate charged and the maximum rate permitted when the Interstate Commerce Commission found the rate to be unreasonable or too high.
Retardation A force causing container and cargo to move fore, aft, and upward.
Right of Eminent Domain Permits the purchase of land needed for transportation right-of-way in a court of law; used by railroads and pipelines.
Roll-On/Roll-Off (Ro/Ro) A feature designed in a specially constructed vessel in both the loading and discharging ports.
Rolling The side-to-aide (athwatship) motion of a vessel.
Route The manner in which a shipment moves, ie., the carriers handling it and the terminal points through which it is handled.
Running Gear Complimentary equipment for terminal and over-the-road handling of containers.
Sea-Bee Vessels Ocean vessels that are constructed with heavy-duty submersible hydraulic lift or elevator systems located at the stern of the vessel. The Sea-Bee system facilitates the barges to be tranferred forward and placed in position. Sea-Bee barges are larger than LASH barges.
Seal Used to seal the locking mechanism on closed containers for security and customs purposes. Each seal is individually numbered and may be of different colors.
Seavan Synonymous for general-purpose dry-freight container.
Secondary Highways Highways that serve primarily rural areas.
Seperable Cost A cost that can be directly assignable to a particular segment of the business.
Sheathing (Export Boxing) Construction materials that make up the outside of roof, sides, ends, and doors and that serve as restraints to prevent the main frame from racking.
Ship Agent A liner company or tramp ship operator representative who facilitates ship arrival, clearance, loading/unloading, and fee payment while at a specific port.
Ship Broker A firm that serves as a go-between for the tramp shipowner and the chartering consignor or consignee.
Shipper's Agent A firm that acts primarily to match up small shipments, especially single traffic piggyback loads to permit use of twin trailer piggyback rates.
Shipper's Association A nonprofit, cooperative consolidator and distributor of shipments owned or shipped by member firms; acts in much the same way as for-profit freight forwarders.
Shipper's Load and Count A term denoting that the contents of a container were loaded and counted by the shipper and not checked or verified by the transportation line.
Shore

A prop or supprt placed against or beneath anything to prevent sinking or sagging.

Short Ton Equals 2,000 pounds.
Short-haul Discrimination Charging more for a shorter haul than a longer haul over the same route, in the same direction, and for the same commodity.
Shrink Wrapping Polyethylene or a similiar substance heat treated and shrunk into an envelope around several units thereby securing them as a single whole unit either as small presentation packs or, more commonly, to secure packages on a pallet.
Side-Door Container A container fitted with a rear door and a minimum of one side door.
Side Loader A lift truck fitted with lifting attachments operating to one side for handling containers.
Skeletal Trailer (Chassis) A trailer specially constructed for the safe carriage of ISO containers.
Skids Battens or a series of parallel runners fitted beneath boxes or packages to raise them clear of the floor to permit easy access of forklift blades or other handling equipment.
Sliding Tandem An assembly rigged on a chassis that may be shifted to correct axle weights.
Slurry Dry commodities that are made into a liquid form by the addition of water or other fluids to permit movement by pipeline.
Software A computer term used to describe the system design and programming required for the effective use of the computer.
Special Commodities Carrier A warehouse that is used to store products that require unique types of facilities, such as grain (elevator), liquid (tank), and tobacco (barn).
Spreader A piece of equipment designed to lift containers by their corner castings.
Staff Functions The support activities of planning and analysis provided to assist line managers with daily operations. Logistics staff functions include location analysis, system design, cost analysis, and planning.
Starboard Right side of vessel facing the bow or front of vessel.
Steamship Conferences Collective rate-making bodies for liner water carriers.
Straddle Carrier Mobile truck equipment with the capacity for lifting a container within its own framework.
Strategic Planning Looking 1 to 5 years into the future and designing a logistical system (or systems) to meet the needs of the various businesses in which a company is involved.
Strategy A specific action to achieve an objective.
Super-Imposed Loading The static and dynamic load forces imposed externally and vertically downward on the structure of a container.
Supplemental Carrier A for-hire air carrier subject to economic regulations; the carrier has no time schedule nor designated route; service is provided under a charter or contract per plane per trip.
Surcharge An add-on charge to the applicable charges; motor carriers have a fuel surcharge and railroads can apply a surcharge to any joint rate that does not yield 110 percent of variable cost.
Switch Engine A railroad engine that is used to move railcars short distances within a terminal and plant.
System A set of interacting elements, variables, parts, or objects that are functionally related to eachother and form a coherent group.
Systems Concept A decision-making strategy that emphasizes overall system efficiency rather than the efficiency of the individual part of the system.
Tandem A truck that has two drive axels or a trailer that has two axels.
Tank Container A specially constructed container for transporting liquids and gases in bulk.
Tankcars Railcars that are designed to haul bulk liquids or gas commodities.
Tapering Rate A rate that increases with distance but not in direct proportion to the distance the commodity is shipped.
Tare Weight The actual weight of a container without cargo or other temporary appendages.
Tariff The charges, rates, and rules of transportation companies usually set forth in an industry publication.
Terminal An assigned area in which containers are prepared to be loaded into a vessel or are stacked immediately after discharge from the vessel.
Through Bill of Lading Bill of Lading covering receipt of cargo at the premises of the owner of the cargo for delivery to the ultimate consignee.
Through Movement Pertains to a container inspected and sealed by Customs at factory site and then transported without the need of further inspection until arrival at destination.
Through Rate A rate applicable from point of origin to destination. A Through Rate may be either a joint rate or a combination of two or more rates.
Throughput A measure of output in warehousing that considers the volume (weight, number of units) of items stored during a given period of time.
Time/Service Rate A rail rate that is based on transit time.
Timetables A time schedule of departures and arrivals by origin and destination; typically used for passenger transportation by air, bus, and rail.
Time Utility A value created in a product by having the product available at the time desired. Transportation and warehousing create time utility.
TL Truckload. A shipment weighing the minimum rate or more. A rate reduction is given for shipping a TL size shipment.
TOFC (Trailer-on-Flatcar) Transportation of containers on the chassis on railroad flatcars.
Ton-Mile A measure of output for freight transportation; it reflects the weight of the shipment and the distance it is hauled; a multiplication of tons hauled and distance traveled.
Total Cost Analysis A decision-making approach that considers the minimization of total system cost and recognizes the inter-relationship among system variables of transportation, warehousing, inventory, customer service, and so on.
Tracing Determining where a shipment is during the course of a move.
Traffic Management The management of those activities associated with buying and controlling transportation services for a shipper or consignee or both.
Trailer Interchange Receipt TIR Synonomous with Equipment Interchange.
Tramp An international water carrier that has no fixed route or published schedule; a tramp ship is chartered for a particular voyage of a given time period.
Transit Privelage A carrier service that permits the shipper to stop the shipment in transit to perform a function that changes the commodity's physical characteristics but to pay the through rate.
Transit Time The total time that elapses from pickup to delivery of a shipment.
Transportation Association of America An association that represents the entire U.S. transportation system, carriers, users, and the public.
Transportation Research Forum A professional association that provides a forum for the discussion of transportation ideas and research techniques.
Transship To transfer foods from one transportation line to another or to transfer goods from one vessel to another.
Trunk Lines Oil pipelines that are used for the long distance movement of crude oil, refined oil, or other liquid products.
Twist Locks A set of four twistable bayonet type shear keys used a part of a spreader to pick up a container or as part of a chassis to secure the containers.
Two-Way Pallet A pallet so designed that the forks of a forklift truck can be inserted from two sides only.
Unit Load A quantity of individual packages palletized or strapped together to create a single unit for more efficient handling by mechanical equipment.
Unit Train An entire, uniterrupted locomotive car and caboose movement between an origin and destination.
United States Railway Association The planning/funding agency for Conrail; created by the 3-R Act of 1973.
Unitization The consolidation of a quantity of individual items into one large shipping unit for easier handling. It is also loading one or more large items of cargo onto a single piece of equipment, such as a pallet.
Unloading Removal of a shipment from a container to a platform or warehouse.
Unobstructed Capacity Determination of the volume of a container by means of multiplying the internal unobstructed dimensions.
Value-of-Service Pricing Pricing according to the value of the product being transported; third degree discrimination; demand-oriented pricing; charging what the traffic will bear.
Vanning A term sometimes used for stowing cargo in a container.
Variable Cost A cost fluctuates with the volume of business.
Vendor A firm or individual that supplies goods or services; the seller.
Ventilated Container A container designed with openings in the side and/or end walls to permit the ingress of outside air when the doors are closed.
Warehousing The storing (or holding) of goods.
Waste Cube Where the cargo does not completely fill or fit the capacity or where the weight load limit of a container is reached in advance of the volumetric limit, this leaving empty space in the container.
Waybill A document prepared by a transportation line at the point of origin of a shipment, showing the point of origin, destination, route, consignor, consignee, description of shipment, and amount charged for the transportation service, and forwarded with the shipment, or directly by mail, to the agent at the transfer point or waybill destination.
Weight Break The shipment volume at which the LTL charges equal the TL charges at the minimum weight.
Wharfage The charge or toll assessed against all cargo passing or conveyed over, onto or under any wharf.
Zone or Rate Flexibility Railroads are permitted to raise rates by a percentage increase in the railroad cost index determined by the ICC; rates may be raised by 4 percent.
Zone of Reasonableness A zone or limit within which air carriers are permitted to change rates without regulatory scrutiny; if the rate change is within the zone, the new rate is presumed to be reasonable.
 
 
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