Freight, shipping and chartering glossary

A profit level that enables a carrier to realize a rate of return on investment or property value that the regulatory agencies deem acceptable for that level of risk.

The value of the carrier's property; the calculation basis has included original cost minus depreciation, replacement cost, and market value.

The meaning of it is that the delivery is completed for the supplier when the product is on the quay for loading on a vessel hired by the recipient. FAS is intended only for transporting goods by sea or inland waterway.

Supplier produced, packed, and prepared the cargo to be shipped. Goods are received by the buyer’s carrier, which picks up the load from the seller’s place. You can call FCA conditions “buyer’s pick-up."

An ocean shipping mode, in which the entire container is intended for one supplier and occupies a full container (regardless of size).

A grain container or reservoir constructed around the hatchway between two decks of a ship which when filled with grain automatically feeds or fills in the vacant areas in the lower holds.

Cargo to/from regional ports are transferred to/from a central hub port for a long-haul ocean voyage.

A short-sea vessel which transfers cargo between a central hub port and smaller "spoke" ports.

A warehouse that stores goods on the goods' owner's property while the goods are under a bona fide public warehouse manager's custody. The owner uses the public warehouse receipts as collateral for a loan.

The percentage of order items that the picking operation actually found.

Costs that do not fluctuate with the business volume in the short run.

A setup wherein a company orders the same(fixed) quantity each time it places an order for an item.

Materials handling devices that include hand trucks and forklifts.

A storage method where a product is presented to picking operations at one end of a rack and replenished from the opposite end.

A supplier has organized land delivery, completed port formalities, and performed loading on ship’s board.

The US Department of Health and Human Services Agency, one of the federal executive departments.

A carrier that provides transportation service to the public on a fee basis.

A machine-powered device used to raise and lower freight and to move freight to different warehouse locations.

Conventional unit for measuring the capacity of freight vehicles. Also referred to as 2 TEU.

A document issued by a freight forwarder to the shipper that serves as certification of the receipt of cargo.

The period of time allowed for the removal or accumulation of cargo before charges become applicable.

A port designated by the government of a country for duty-free entry of any non-prohibited goods. Merchandise may be stored, displayed, used for manufacturing, etc., within the zone and re-exported without duties.

Goods being transported from one place to another.

The carriers invoice for payment of transport services rendered.

The freight companies that physically transport “carry” the freight on behalf of shippers.

The rate established for transporting freight.

A type of cargo has been given certain characteristics that dictate how much it costs to transport them.

The freight and charges to be paid by the consignee.

An enterprise that provides services to facilitate the transport of shipments. Services can include documentation preparation, space and equipment reservation, warehousing, consolidation, delivery, clearance, banking and insurance services, and agency services. The forwarder may facilitate transport by land, air, ocean, or may specialize in one mode of transport. Also called Forwarder or Foreign Freight Forwarder.

The freight and charges to be paid by the consignor.

A quotation from a carrier or forwarder covering the cost of transport between two specified locations.

Transportation of cargo that completely fills the truck.

Drayage fuel.

If consolidated into a container, the surcharge applied to the disinfection of the container.

A document that serves as confirmation that any wooden packing materials (ie, pallets) used in a cargo shipment have been fumigated.