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A.T.A.: Actualtimeofarrival A.T.D.: Actualtimeofdeparture ABCanalysis: Classificationofitemsinaninventoryaccordingtoimportancedefinedintermsofcriteriasuchassalesvolume andpurchasevolume. ABI: SeeAutomatedBrokerInterface accessibility: Acarrier'sabilitytoprovideservicebetweenanoriginandadestination.

accessorialcharges:

Acarrier'schargeforaccessorialservicessuchasloading,unloading,pickup,anddelivery. actionmessage: AnalertthatanMRPorDRPsystemgeneratestoinformthecontrollerofasituationrequiringhisorher attention. activestock: Goodsinactivepicklocationsandreadyfororderfilling. ActivityBasedCosting: Amethodofcostmanagementthatidentifiesbusinessactivitiesperformed,accumulatescostsassociatedwith theseactivities,andusesvariouscostdriverstotracecostsofactivitiestotheproducts. AdValoremDuty: SeeDuty advancedshipmentnotice(ASN): Alisttransmittedtoacustomerorconsignordesignatingitemsshipped.Mayalsoincludeexpectedtimeof arrival. agencytariff: Aratebureaupublicationthatcontainsratesformanycarriers. Agent: Anenterpriseauthorizedtotransactbusinessfor,orinthenameof,anotherenterprise. agglomeration: Anetadvantageacompanygainsbysharingacommonlocationwithothercompanies. aggregatetenderrate: Areducedrateofferedtoashipperwhotenderstwoormoreclassrelatedshipmentsatonetimeandoneplace. aircargo: Freightthatismovedbyairtransportation. 1

AirCarrier: Anenterprisethatofferstransportationserviceviaair. airtaxi: Anexemptforhireaircarrierthatwillflyanywhereondemand;airtaxisarerestrictedtoamaximumpayload andpassengercapacityperplane. AirTransportAssociationofAmerica: AU.S.airlineindustryassociation. AirWaybill(AWB): Abillofladingforairtransportthatservesasareceiptfortheshipper,indicatesthatthecarrierhasaccepted thegoodslisted,obligatesthecarriertocarrytheconsignmenttotheairportofdestinationaccordingtospecified conditions. AircargoAgent: Anagentappointedbyanairlinetosolicitandprocessinternationalairfreightshipments. AircargoContainers: Containersdesignedtoconformtotheinsideofanaircraft.Therearemanyshapesandsizesofcontainers. Aircargocontainersfallintothreecategories:1)aircargopallets2)lowerdeckcontainers3)boxtypecontainers. AirportandAirwayTrustFund: Afederalfundthatcollectspassengertickettaxesanddisbursesthosefundsforairportfacilities. AllWater: Termusedwhenthetransportationiscompletelybywater. allcargocarrier: Anaircarrierthattransportscargoonly. AmericanNationalStandardsInstitute(ANSI): ANSIwasfoundedin1918tocoordinatenationalstandardsintheU.S.ANSIisthecentralbodyresponsiblefor theidentificationofasingleconsistentsetofvoluntarystandardscalledAmericanNationalStandards.ANSI providesanopenforumfortheidentificationofstandardsrequirements,developmentofplanstomeetthose requirements,andagreementonstandards.ANSIitselfdoesnotdevelopstandards.In1979ANSIchartereda newcommittee,whichinnowknownasAccreditedStandardsCommittee(ASC)X12ElectronicData Interchange,todevelopuniformstandards forelectronicinterchangeofbusinesstransactions. AmericanSocietyofTransportation&Logistics: Aprofessionalorganizationinthefieldoflogistics. AmericanTruckingAssociation,Inc.: Amotorcarrierindustryassociationcomposedofsubconferencesrepresentingvariousmotorcarrierindustry sectors. AmericanWaterwayOperators: Adomesticwatercarrierindustryassociationrepresentingbargeoperatorsoninlandwaterways.

Amtrak: TheNationalRailroadPassengerCorporation,afederallycreatedcorporationthatoperatesmostoftheUnited States'intercitypassengerrailservice. ANSI: SeeAmericanNationalStandardsInstitute anyquantity(AQ)rate: Aratethatappliestoanysizeshipmenttenderedtoacarrier;nodiscountrateisavailableforlargeshipments. API: ApplicationProgrammingInterface ArrivalNotice: AnoticefromthedeliveringcarriertotheNotifyPartyindicatingtheshipment'sarrivaldateataspecificlocation (normallythedestination). artificialintelligence: Afieldofresearchseekingtounderstandandcomputerizethehumanthoughtprocess. ASN: AdvanceShipmentNotice Assignment: Thetransferofrights,duties,responsibilities,andbenefitsofanagreement,contract,orfinancialinstrumenttoa thirdparty. AssociationofAmericanRailroads: ArailroadindustryassociationthatrepresentsthelargerU.S.railroads. ATFI: AutomatedTariffFilingInformationSystem Audit: Inreferencetofreightbills,thetermauditisusedtodeterminetheaccuracyoffreightbills. auditing: Determiningthecorrecttransportationchargesduethecarrier;auditinginvolvescheckingthefreightbillfor errors,correctrate,andweight. AutomatedBrokerInterface(ABI): TheU.S.Customsprogramtoautomatetheflowofcustomsrelatedinformationamongcustomsbrokers, importers,andcarriers. automatedguidedvehiclesystem(AGVS): Acomputercontrolledmaterialshandlingsystemconsistingofsmallvehicles(carts)thatmovealonga guideway. automatedstorageandretrievalsystem(ASRS): Anautomated,mechanizedsystemformovingmerchandiseintostoragelocationsandretrievingitwhen needed. 3

Average: SeeMarineCargoInsurance averagecost: Totalcost,fixedplusvariable,dividedbytotaloutput. AWB: SeeAirWaybill BackHaul: Thereturnmovementofameansoftransportthathasprovidedatransportserviceinonedirection. backorder: Theprocessacompanyuseswhenacustomerordersanitemthatisnotininventory;thecompanyfillsthe orderwhentheitembecomesavailable. backhaul: Avehicle'sreturnmovementfromoriginaldestinationtooriginalorigin. backup: Makingaduplicatecopyofacomputerfileoraprogramonadiskorcassettesothatthematerialwillnotbelost iftheoriginalisdestroyed;asparecopy. BalanceofTrade: Thesurplusordeficitwhichresultsfromcomparingacountry'sexportsandimportsofmerchandiseonly. Bale: Alargecompressed,bound,andoftenwrappedbundleofacommodity,suchascottonorhay. barcode: Aseriesoflinesofvariouswidthsandspacingsthatcanbescannedelectronicallytoidentifyacartonor individualitem. barcodescanner: Adevicetoreadbarcodesandcommunicatedatatocomputersystems. BarCoding: Amethodofencodingdataforfastandaccuratereadability.Barcodesareaseriesofalternatingbarsand spacesprintedorstampedonproducts,labels,orothermedia,representingencodedinformationwhichcanbe readbyelectronicreaderscalledbar. barge: Thecargocarryingvehiclewhichmayormaynothaveitsownpropulsionmechanismforthepurposeof transportinggoods.PrimarilyusedbyInlandwatercarriers,basicbargeshaveopentops,buttherearecovered bargesforbothdryandliquidcargoes. Barter: Theexchangeofcommoditiesorservicesforothercommoditiesorservicesratherthanthepurchaseof commoditiesorserviceswithmoney. BaseCurrency: Thecurrencywhosevalueis"one"wheneveraquoteismadebetweentwocurrencies. 4

basingpointpricing: Apricingsystemthatincludesatransportationcostfromaparticularcityortowninazoneorregioneven thoughtheshipmentdoesnotoriginateatthebasingpoint. batchpicking: Thepickingofitemsfromstorageformorethanoneorderatatime. benchmarking: Amanagementtoolforcomparingperformanceagainstanorganizationthatiswidelyregardedasoutstanding inoneormoreareas,inordertoimproveperformance. benefitcostratio: Ananalyticaltoolusedinpublicplanning;aratiooftotalmeasurablebenefitsdividedbytheinitialcapitalcost. seeCostBenefitAnalysis. BillofLading(BOL): Adocumentissuedbyanentityprovidingtransportationservicesthatservesthreepurposes:1)servesas receiptforthegoodsdeliveredtothecarrierforshipment,2)definesthecontractofcarriageofthegoodsfrom thepointoforigintothepointofdestinationaccordingtotheresponsibilitiesoftheserviceproviderlistedonthe billoflading,3)undercertainconditions,providesevidenceoftitleforthegoods. BillofLadingNumber: Thenumberassignedbythecarriertoidentifythebilloflading. BillofLading,Through: Abillofladingtocovergoodsfrompointoforigintofinaldestinationwheninterchangeortransferfromone carriertoanotherisnecessarytocompletethejourney. billing: Acarrierterminalactivitythatdeterminestheproperrateandtotalchargesforashipmentandissuesafreight bill. binder: Astripofcardboard,thinwood,burlap,orsimilarmaterialplacedbetweenlayersofcontainerstoholdastack together. blanketrate: Aratethatdoesnotincreaseaccordingtothedistanceacommodityisshipped. BOL: SeeBillofLading Bond,In: GoodsareheldortransportedInBondundercustomscontroleitheruntilimportdutiesorotherchargesare paid,orinordertoavoidpayingthedutiesorchargesuntilalaterdate. Bonded: SeeBond,In. bondedwarehousing: Atypeofwarehousinginwhichcompaniesplacegoodsinstoragewithoutpayingtaxesortariffs.The 5

warehousemanagerbondshimselforherselftothetaxortariffcollectingagencytoensurepaymentofthe taxesbeforethewarehousereleasesthegoods. BookableLeg: SeeLeg. Booking: Theactofrequestingspaceandequipmentaboardavesselforcargowhichistobetransported. BookingNumber: Thenumberassignedtoacertainspacereservationbythecarrierorthecarrier'sagent. boxcar: Anenclosedrailcar,typicallyfortytofiftyfeetlong,usedforpackagedfreightandsomebulkcommodities. bracing: Tosecureashipmentinsideacarrier'svehicletopreventdamage. BreakBulkCargo: Cargothatisshippedasaunitorpackage(forexample:palletizedcargo,boxedcargo,largemachinery,trucks) butisnotcontainerized. BreakBulkVessel: Avesseldesignedtohandlebreakbulkcargo. breakbulk: Theseparationofaconsolidatedbulkloadintosmallerindividualshipmentsfordeliverytotheultimate consignee.Thefreightmaybemovedintactinsidethetrailer,oritmaybeinterchangedandrehandledto connectingcarriers. Broker: Thereare3definitionsfortheterm"broker":1)anenterprisethatowns&leasesequipment2)anenterprisethat arrangesthebuying&sellingoftransp.,goods,orservices3)ashipagentwhoactsfortheshipowneror chartererinarrangingcharters. BufferStock: Aquantityofgoodsorarticleskeptinstoragetosafeguardagainstunforeseenshortagesordemands. bulkarea: Astorageareaforlargeitemswhichataminimumaremostefficientlyhandledbythepalletload. BulkCargo: Goodsnotinpackagesorcontainers.Seealso,BreakBulkCargo. Bundling: Anoccurrencewheretwoormoreproductsarecombinedintoonetransactionforasingleprice. businesslogistics: Theprocessofplanning,implementing,andcontrollingtheefficient,effectiveflowandstorageofgoods, services,andrelatedinformationfromthepointoforigintothepointofconsumptionforthepurposeof conformingtocustomerrequirements. 6

Buyer: Anenterprisethatarrangesfortheacquisitionofgoodsorservicesandagreestopaymenttermsforsuchgoods orservices. C&F: SeeCostandFreight cabotage: AfederallawthatrequirescoastalandintercoastaltraffictobecarriedinU.S.builtandregisteredships. CAD: SeeCashAgainstDocuments. CAF: SeeCurrencyAdjustmentFactor. cage: (1)Asecureenclosedareaforstoringhighlyvaluableitems,(2)apalletsizedplatformwithsidesthatcanbe securedtothetinesofaforkliftandinwhichapersonmayridetoinventoryitemsstoredwellabovethe warehousefloor. capital: Theresources,ormoney,availableforinvestinginassetsthatproduceoutput. CAPSTAN: ComputerAidedPlannedStowageandNetworkingsystem. CARAT: CargoAgentsReservationAirWaybillIssuanceandTracking. Cargo: Merchandisecarriedbyameansoftransportation. CarmackAmendment: AnInterstateCommerceActamendmentthatdelineatestheliabilityofcommoncarriersandthebilloflading provisions. Carnet: Acustomsdocumentallowingspecialcategoriesofgoodstocrossinternationalborderswithoutpaymentof duties. carousel: Arotatingsystemoflayersofbinsand/ordrawersthatcanstoremanysmallitemsusingrelativelylittlefloor space. Carriage: SeeTransportation. Carrier: Anenterpriseengagedinthebusinessoftransportinggoods. 7

CarrierAssets: Itemsthatacarrierowns(technicallyoroutright)tofacilitatetheservicestheyprovide. CarrierCertificateandReleaseOrder: Usedtoadvisecustomsoftheshipment'sdetails.Bymeansofthisdocument,thecarriercertifiesthatthefirm orindividualnamedinthecertificateistheownerorconsigneeofthecargo. carrierliability: Acommoncarrierisliableforallshipmentloss,damage,anddelaywiththeexceptionofthatcausedbyactof God,actofapublicenemy,actofapublicauthority,actoftheshipper,andthegoods'inherentnature. Cartage: Therearetwodefinitionsforthisterm:1)chargeforpickupanddeliveryofgoods2)movementofgoodslocally (shortdistances). cartonflowrack: Astoragerackconsistingofmultiplelinesofgravityflowconveyors. CashAgainstDocuments(CAD): Amethodofpaymentforgoodsinwhichdocumentstransferringtitlearegiventothebuyeruponpaymentof cashtoanintermediaryactingfortheseller. CashInAdvance(CIA): Amethodofpaymentforgoodswherebythebuyerpaysthesellerinadvanceofshipmentofgoods. CashwithOrder(CWO): Amethodofpaymentforgoodswherecashispaidatthetimeoforder,andthetransactionbecomesbindingon bothbuyerandseller centralprocessingunit(CPU): Thephysicalpartofthecomputerthatdoestheactualcomputing. centralizedauthority: Therestrictionofauthoritytomakedecisionstofewmanagers. CertificateofInsurance: Anegotiabledocumentindicatingthatinsurancehasbeensecuredunderanopenpolicytocoverlossor damagetoashipmentwhileintransit. CertificateofOrigin: Adocumentcontaininganaffidavittoprovetheoriginofimportedgoods.Usedforcustomsandforeign exchangepurposes. certificateofpublicconvenienceandnecessity: Thegrantofoperatingauthoritythatcommoncarriersreceive.Acarriermustprovethatapublicneedexistsand thatthecarrierisfit,willing,andabletoprovidetheneededservice.Thecertificatemayspecifythecommodities thecarriermayhaul,andtheroutesitmayuse. certificatedcarrier: Aforhireaircarrierthatissubjecttoeconomicregulationandrequiresanoperatingcertificationtoprovide service. 8

CFS: SeeContainerFreightStation. CFS/CFS: SeeContainerFreightStationtoContainerFreightStation. ChannelofDistribution: Ameansbywhichamanufacturerdistributesproductsfromtheplanttotheultimateuser,including warehouses,brokers,wholesalers,retailers,etc. ChargeableWeight: Theshipmentweightusedindeterminingfreightcharges.Thechargeableweightmaybethedimensional weightor,forcontainershipments,thegrossweightoftheshipmentlessthetareweightofthecontainer. chargingarea: Awarehouseareawhereacompanymaintainsbatterychargersandextrabatteriestosupportafleetof electricallypoweredmaterialshandlingequipment.Thecompanymustmaintainthisareainaccordancewith governmentsafetyregulations. chock: Awedge,usuallymadeofhardrubberorsteel,thatisfirmlyplacedunderthewheelofatrailer,truck,orboxcar tostopitfromrolling. CIA: SeeCashInAdvance. CIF: SeeCost,InsuranceandFreight. citydriver: Amotorcarrierdriverwhodrivesalocalrouteasopposedtoalongdistance,intercityroute. CivilAeronauticsBoard: Afederalregulatoryagencythatimplementedeconomicregulatorycontrolsoveraircarriers. CL: Carloadrailservicerequiringshippertomeetminimumweight. claim: Achargemadeagainstacarrierforloss,damage,delay,orovercharge. ClassIcarrier: Aclassificationofregulatedcarriersbaseduponannualoperatingrevenuesmotorcarriersofproperty;$5 million;railroads;$50million;motorcarriersofpassengers;$3million. ClassIIcarrier: Aclassificationofregulatedcarriersbaseduponannualoperatingrevenuesmotorcarriersofproperty:$1$5 million;railroads:$10$50million;motorcarriersofpassengers:$3million.

ClassIIIcarrier: Aclassificationofregulatedcarriersbaseduponannualoperatingrevenuesmotorcarriersofproperty:$1 million;railroads$10million. ClassRates: Agroupingofgoodsorcommoditiesunderonegeneralheading.Alltheitemsinthegroupmakeupaclass.The freightratesthatapplytoallitemsintheclassarecalled"classrates." classification: Analphabeticallistingofcommodities,theclassorratingintowhichthecommodityisplaced,andtheminimum weightnecessaryfortheratediscount;usedintheclassratestructure. classificationyard: Arailroadterminalareawhererailcarsaregroupedtogethertoformtrainunits. Clearance: Adocumentstatingthatashipmentisfreetobeimportedintothecountryafteralllegalrequirementshavebeen met. coastalcarriers: WatercarriersthatprovideservicealongcoastsservingportsontheAtlanticorPacificOceansorontheGulfof Mexico. COFC: SeeContaineronFlatCar. CollectFreight: Freightpayabletothecarrierattheportofdischargeorultimatedestination.Theconsigneedoesnotpaythe freightchargeifthecargodoesnotarriveatthedestination. CollectivePaper: Alldocuments(commercialinvoices,billsoflading,etc.)submittedtoabuyerforthepurposeofreceiving paymentforashipment. CombiAircraft: Anaircraftspeciallydesignedtocarryunitizedcargoloadsontheupperdeckofthecraft,forwardofthe passengerarea. CommercialInvoice: Adocumentcreatedbytheseller.Itisanofficialdocumentwhichisusedtoindicate,amongotherthings,the nameandaddressofthebuyerandseller,theproduct(s)beingshipped,andtheirvalueforcustoms,insurance, orotherpurposes. commercialzone: Theareasurroundingacityortowntowhichratecarriersquoteforthecityortownalsoapply;theICCdefines thearea. CommitteeofAmericanSteamshipLines: AnindustryassociationrepresentingsubsidizedU.S.flagsteamshipfirms.

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Commodities: Anyarticleexchangedintrade,mostcommonlyusedtorefertorawmaterialsandagriculturalproducts. commoditiesclause: Aclausethatprohibitsrailroadsfromhaulingcommoditiesthattheyproduced,mined,owned,orhadaninterest in. CommodityCode: Acodedescribingacommodityoragroupofcommoditiespertainingtogoodsclassification.Thiscodecanbe carriertarifforregulatinginnature. commodityrate: Arateforaspecificcommodityanditsorigindestination. commoncarrier: Aforhirecarrierthatholdsitselfouttoservethegeneralpublicpassengerand/orcargotransportservicesat reasonableratesandwithoutdiscrimination.Tooperate,thecarriermustsecureacertificateofpublic convenienceandnecessity. commoncarrierduties: Commoncarriersmustserve,deliver,chargereasonablerates,andnotdiscriminate. commoncost: Acostthatacompanycannotdirectlyassigntoparticularsegmentsofthebusiness;acostthatthecompany incursforthebusinessasawhole. commuter: Anexemptforhireaircarrierthatpublishesatimescheduleonspecificroutes;aspecialtypeofairtaxi. comparativeadvantage: Aprinciplebasedontheassumptionthatanareawillspecializeinproducinggoodsforwhichithasthegreatest advantageortheleastcomparativedisadvantage. Conference: Agroupofvesseloperatorsjoinedforthepurposeofestablishingfreightrates. ConferenceCarrier: Anoceancarrierwhoisamemberofanassociationknownasa"conference."Thepurposeoftheconferenceis tostandardizeshippingpractices,eliminatefreightratecompetition,andprovideregularlyscheduledservice betweenspecificports. Conrail: TheConsolidatedRailCorporationestablishedbytheRegionalReorganizationActof1973tooperatethe bankruptPennCentralRailroadandotherbankruptrailroadsintheNortheast;the4RActof1976provided funding. Consignee: Thereceiverofgoods,i.e.afreightshipment,usuallythebuyer.

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Consignment: Goodsshippedtoanoverseasagentwhenanactualpurchasehasnotbeenmade,butwhentheconsignee agreestosellthegoods. Consignor: Theshipperofgoods,orshipperofatransportationmovement. consolidation: Collectingsmallershipmentstoformalargerquantityinordertorealizelowertransportationrates. ConsolidationPoint: Thelocationwhereconsolidationtakesplace. Consolidator: Anenterprisethatprovidesservicestogroupshipments,orders,and/orgoodstofacilitatemovement. Consolidator'sBillofLading:

Abillofladingissuedbyaconsolidatorasareceiptformerchandisethatwillbegroupedwithcargoobtained fromothershippers.SeealsoHouseAirWaybill. Consul: Agovernmentofficialresidinginaforeigncountry,chargedwithrepresentingtheinterestsofhisorhercountry anditsnationals. ConsularDeclaration: Aformalstatementmadetotheconsulofacountrydescribingmerchandisetobeshippedtothatconsul's country.Approvalmustbeobtainedpriortoshipment. ConsularDocuments: Specialformssignedbytheconsulofacountrytowhichcargoisdestined. ConsularInvoice: Adocument,requiredbysomeforeigncountries,describingashipmentofgoodsandshowinginformationsuch astheconsignor,consignee,andvalueoftheshipment.Certifiedbyaconsularofficialoftheforeigncountry,it isusedbythecountry'scustom Container: Thistermisassociatedwithmorethanonedefinition:1)anythinginwhichgoodsarepacked2)asinglerigid receptaclewithoutwheelsthatisusedforthetransportofgoods(atypeofcarrierequipmentintowhichfreightis loaded). ContainerChassis: Avehiclebuiltforthepurposeoftransportingacontainersothat,whenacontainerandchassisareassembled, theproducedunitservesasaroadtrailer. ContainerDepot: Thestorageareaforemptycontainers. ContainerFreightStation(CFS): Thelocationdesignatedbycarriersforreceiptofcargotobepackedintocontainers/equipmentbythecarrier.At destination,CFSisthelocationdesignatedbythecarrierforunpackingofcargofromequipment/containers. 12

ContainerFreightStationCharge: Thechargeassessedforservicesperformedattheloadingordischargelocation. ContainerFreightStationtoContainerFreightStation(CFS/CFS): Atypeofsteamshiplineserviceinwhichcargoistransportedbetweencontainerfreightstations,where containersmaybestuffed,stripped,orconsolidated.Usuallyusedforlessthancontainerloadshipments. ContainerI.D.: Anidentifierassignedtoacontainerbyacarrier.SeealsoEquipmentID. ContaineronFlatCar(COFC): Acarriageofintermodalcontainersdetachedfromtheirchassisonrailflatcars. ContainerTerminal: Anareadesignatedtobeusedforthestowageofcargoincontainersthatmaybeaccessedbytruck,rail,or oceantransportation. ContainerVessel: Avesselspecificallydesignedforthecarriageofcontainers. ContainerYard: Thelocationdesignatedbythecarrierforreceiving,assembling,holding,storing,anddeliveringcontainers,and wherecontainersmaybepickedupbyshippersorredeliveredbyconsignees. ContainerYardtoContainerYard(CY/CY): Atypeofsteamshiplineserviceinwhichfreightistransportedfromorigincontaineryardtodestinationcontainer yard. Containerization: Thetechniqueofusingaboxlikedeviceinwhichanumberofpackagesarestored,protected,andhandledasa singleunitintransit. contingencyplanning: Preparingtodealwithcalamities(e.g.,floods)andnoncalamitoussituations(e.g.,strikes)beforetheyoccur. continuousreplenishment(CRP): Asystemusedtoreducecustomerinventoriesandimproveserviceusuallytolargecustomers. continuousflow,fixedpathequipment: Materialshandlingdevicesthatincludeconveyorsanddraglines. contractcarrier: Aforhirecarrierthatdoesnotservethegeneralpublicbutservesshipperswithwhomthecarrierhasa continuingcontract.Thecontractcarriermustsecureapermittooperate. Conveyance: Theapplicationusedtodescribethefunctionofavehicleoftransfer. conveyor: Amaterialshandlingdevicethatmovesfreightfromonewarehouseareatoanother.Rollerconveyorsutilize gravity,whereasbeltconveyorsusemotors. 13

cooperativeassociations: Groupsoffirmsorindividualshavingcommoninterests;agriculturalcooperativeassociationsmayhaulupto25 percentoftheirtotalinterstatenonfarm,nonmembergoodstonnageinmovementsincidentalandnecessaryto theirprimarybusiness. coordinatedtransportation: Twoormorecarriersofdifferentmodestransportingashipment. CORBA: CommonObjectRequestBrokerArchitecture. CostandFreight(C&F): Thesellerquotesapricethatincludesthecostoftransportationtoaspecificpoint.Thebuyerassumes responsibilityforlossanddamageandpaysfortheinsuranceoftheshipment. costoflostsales: Theforgoneprofitcompaniesassociatewithastockout. costtradeoff: Theinterrelationshipamongsystemvariablesinwhichachangeinonevariableaffectsothervariables'costs.A costreductioninonevariablemayincreasecostsforothervariables,andviceversa. Cost,InsuranceandFreight(CIF): Thepricequotethatthesellerofferstothebuyer,whichincludescostofthegoods,insuranceofthegoods,and transportationcharges. CouncilofLogisticsManagement(CLM): Aprofessionalorganizationinthelogisticsfieldthatprovidesleadershipinunderstandingthelogisticsprocess, awarenessofcareeropportunitiesinlogistics,andresearchthatenhancescustomervalueandsupplychain performance. Countertrade: Areciprocaltradingagreementthatincludesavarietyoftransactionsinvolvingtwoormoreparties. CountervailingDuties: Specialdutiesimposedonimportstooffsetthebenefitsofsubsidiestoproducersorexportersoftheexporting country. CountryofDestination: Thecountrythatwillbetheultimateorfinaldestinationforgoods. CountryofOrigin: Thecountrywherethegoodsweremanufactured. courierservice: Afast,doortodoorserviceforhighvaluedgoodsanddocuments;firmsusuallylimitservicetoshipments weighingfiftypoundsorless. crane: Amaterialshandlingdevicethatliftsheavyitems.Therearetwotypes:bridgeandstacker. 14

CreditTerms: Theagreementbetweentwoormoreenterprisesconcerningtheamountandtimingofpaymentforgoodsor services. criticalvalueanalysis: AmodifiedABCanalysisinwhichacompanyassignsasubjectivecriticalvaluetoeachiteminaninventory. CrossDock: Anenterprisethatprovidesservicestotransfergoodsfromonepieceoftransportationequipmenttoanother. crossdocking: Themovementofgoodsdirectlyfromreceivingdocktoshippingdocktoeliminatestorageexpense. CSG: CommunicationsSupportGroup. CubeOut:

Thesituationwhenapieceofequipmenthasreacheditsvolumetriccapacitybeforereachingthepermitted weightlimit. CubicCapacity: Thecarryingcapacityofapieceofequipmentaccordingtomeasurementincubicfeet. CurrencyAdjustmentFactor(CAF): Asurchargeimposedbyacarrieronoceanfreightchargestooffsetforeigncurrencyfluctuations. Customer: Anenterprisethatusestheservicesasprovidedbyanotherenterprise. CustomerOrder: Theseller'sinternaltranslationoftheirbuyer'sPurchaseOrder.Thedocumentcontainsmuchofthesame informationasthepurchaseorderbutmayusedifferentProductIDsforsomeorallofthelineitems.Itwillalso determineinventoryavailability CustomerService: Theseriesofactivitiesinvolvedinprovidingthefullrangeofservicestocustomers: Customs: Theauthoritiesdesignatedtocollectdutiesleviedbyacountryonimportsandexports. CustomsBroker/CustomhouseBroker: Afirmthatrepresentsimporters/exportersindealingswithcustoms.Normallyresponsibleforobtainingand submittingalldocumentsforclearingmerchandisethroughcustoms,arranginginlandtransport,andpayingall chargesrelatedtothesefunctions. CustomsClearance: Theactofobtainingpermissiontoimportmerchandisefromanothercountryintotheimportingnation. CustomsInvoice: Adocumentthatcontainsadeclarationbytheseller,theshipper,ortheagentastothevalueoftheshipment.

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CustomsValue: Thevalueoftheimportedgoodsonwhichdutieswillbeassessed. CWO: SeeCashwithOrder. CWT: Theabbreviationforhundredweight,whichistheequivalentof100pounds. CY/CY: SeeContainerYardtoContainerYard. cycleinventory: Aninventorysystemwherecountsareperformedcontinuously,ofteneliminatingtheneedforanannualoverall inventory.ItisusuallysetupsothatAitemsarecountedregularly(i.e.,everymonth),Bitemsarecountedsemi regularly(everyquarterorsixmonths),andCItemsarecountedperhapsonlyonceayear. CycleTime: Theelapsedtimebetweencommencementandcompletionofaprocess. DangerousGoods: Articlesorsubstancescapableofposingasignificantrisktohealth,safety,orproperty,andthatordinarily requirespecialattentionwhentransported.SeealsoHazardousGoods. decentralizedauthority: Asituationinwhichacompanymanagementgivesdecisionmakingauthoritytomanagersatmany organizationallevels. CurrencyAdjustmentFactor(CAF): Asurchargeimposedbyacarrieronoceanfreightchargestooffsetforeigncurrencyfluctuations. DeclarationofDangerousGoods: TocomplywiththeU.S.regulations,exportersarerequiredtoprovidespecialnoticestoinlandandocean transportcompanieswhengoodsarehazardous. DeclaredValueforCarriage: Thevalueofthegoods,declaredbytheshipperonabilloflading,forthepurposeofdeterminingafreightrate orthelimitofthecarrier'sliability. Deconsolidator: Anenterprisethatprovidesservicestoungroupshipments,orders,goods,etc.,tofacilitatedistribution. Defectivegoodsinventory(DGI): Thoseitemsthathavebeenreturned,havebeendelivereddamagedandhaveafreightclaimoutstanding,or havebeendamagedinsomewayduringwarehousehandling. DeliveryAppointment: Thetimeagreeduponbetweentwoenterprisesforgoodsortransportationequipmenttoarriveataselected location.

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DeliveryInstructions: Adocumentissuedtoacarriertopickupgoodsatalocationanddeliverthemtoanotherlocation.Seealso DeliveryOrder. DeliveryOrder: Adocumentissuedbythecustomsbrokertotheoceancarrierasauthoritytoreleasethecargotothe appropriateparty. DeltaNuAlpha: Aprofessionalassociationoftransportationandtrafficpractitioners. Demurrage: Thepenaltyforexceedingfreetimeallowedforloading/unloadingunderthetermsoftheagreementwiththe carrier.Demurrageisthetermusedintherailandoceanindustry;detentionisusedinthemotorindustry. Density: Aphysicalcharacteristicmeasuringacommodity'smassperunitvolumeorpoundspercubicfoot;animportant factorinratemaking,sincedensityaffectstheutilizationofacarrier'svehicle. Densityrate: Aratebaseduponthedensityandshipmentweight. Deregulation: Revisionsorcompleteeliminationofeconomicregulationscontrollingtransportation.TheMotorCarrierActof 1980andtheStaggersActof1980revisedtheeconomiccontrolsovermotorcarriersandrailroads,andthe AirlineDeregulationActof1978eliminatedeconomiccontrolsoveraircarriers. Deriveddemand: Thedemandforaproduct'stransportationisderivedfromtheproduct'sdemandatsomelocation. Destination: Thelocationdesignatedasareceiptpointforgoods/shipment. Detention: Thepenaltyforexceedingfreetimeallowedforloading/unloadingunderthetermsoftheagreementwiththe carrier.Detentionisthetermusedinthemotorindustry;demurrageisusedintherailandoceanindustry. Devanning: Theunloadingofcargofromacontainerorotherpieceofequipment.SeeStripping. DFZ: SeeDutyFreeZone. Differential: Adiscountofferedbyacarrierthatfacesaservicetimedisadvantageoveraroute. Directproductprofitability(DPP): Calculationofthenetprofitcontributionattributabletoaspecificproductorproductline. Directstoredelivery(DSD): Alogisticsstrategytoimproveservicesandlowerwarehouseinventories. 17

DISA: DataInterchangeStandardsAssociation. DischargePort: Thenameoftheportwherethecargoisunloadedfromtheexportvessel.ThisistheportreportedtotheU.S. CensusontheShipper'sExportDeclaration,ScheduleK,whichisusedbyU.S.companieswhenexporting. Thiscanalsobeconsideredthefirstdischargeport. Dispatching: Thecarrieractivitiesinvolvedwithcontrollingequipment;involvesarrangingforfuel,drivers,crews,equipment, andterminalspace. Distribution: Thephysicalpathandlegaltitlethatgoodsandservicestakebetweenproductionandconsumption. DistributionChannel: Theroutebywhichacompanydistributesgoods. DistributionChannelManagement: Theorganizationalandpipelinestrategyforgettingproductstocustomers.Directchannelsinvolvecompany salesforces,facilities,and/ordirectshipmentstocustomers;indirectchannelsinvolvetheuseofwholesalers, distributors,and/orotherpartiestosupplytheproductstocustomers.Manycompaniesusebothstrategies, dependingonmarketsandeffectiveness. Distributionresourceplanning(DRP): AcomputersystemthatusesMRPtechniquestomanagetheentiredistributionnetworkandtolinkitwith manufacturingplanningandcontrol. Distributionwarehouse: Afinishedgoodswarehousefromwhichacompanyassemblescustomerorders. Distributor: Anenterprisethatoffersservicestobuyandsellgoodsontheirownaccount. Diversion: Theprocessofchangingthedestinationand/ortheconsigneewhiletheshipmentisenroute. DockReceipt: Adocumentusedtoacceptmaterialsorequipmentatanoceanpieroracceptedlocation.Providestheocean carrierwithverificationofreceiptandthedeliveringcarrierwithproofofdelivery. Documentation: Thepapersattachedorpertainingtogoodsrequiringtransportationand/ortransferofownership. Domestictrunklinecarrier: Aclassificationforaircarriersthatoperatebetweenmajorpopulationcenters.Thesecarriersarenowclassified asmajorcarriers. DoortoDoor: Thethroughtransportofgoodsfromconsignortoconsignee. 18

DoortoPort: Thethroughtransportservicefromconsignortoportofimportation. Doublebottoms: Amotorcarrieroperationthatinvolvesonetractorpullingtwotrailers. Doublepalletjack: Amechanizeddevicefortransportingtwostandardpalletssimultaneously. Download: Tomergetemporaryfilescontainingaday'sorweek'sworthofinformationwiththemaindatabaseinorderto updateit. Drawback: SeeDutyDrawback. Drayage:

Theserviceofferedbyamotorcarrierforpickupanddeliveryofoceancontainersorrailcontainers.Drayage agentsusuallyhandlefullloadcontainersforoceanandrailcarriers. Drivingtimeregulations: U.S.DepartmentofTransportationrulesthatlimitthemaximumtimeadrivermaydriveininterstatecommerce; therulesprescribebothdailyandweeklymaximums. Drop: Asituationinwhichanequipmentoperatordepositsatrailerorboxcaratafacilityatwhichitistobeloadedor unloaded. DropShipment: Arequestforthegoodstogototheretailerdirectlyfromthemanufacturerwhentheinvoicecomesfromanother partyinthetransaction,typicallythedistributorfromwhomtheretailerwouldnormallyreceivethegoods. DRP: SeeDistributionRequirementsPlanning DSS: SeeDecisionSupportSystem Dualoperation: Amotorcarrierthathasbothcommonandcontractcarrieroperatingauthority. Dualratesystem: Aninternationalwatercarrierpricingsysteminwhichashippersigninganexclusiveuseagreementwiththe conferencepaysarate10to15percentlowerthannonsigningshippersdoforanidenticalshipment. Dumping: Whenaproductissoldbelowcostinaforeignmarketand/orwhenaproductissoldatalowerpriceinthe foreignmarketthaninadomesticmarket,withtheintentionofdrivingoutcompetitionintheforeignmarket. DUNSNumber: Acoded,numericalrepresentationassignedtoaspecificcompany(USA). 19

Duty: Ataximposedbyagovernmentonmerchandiseimportedfromanothercountry. DutyDrawback: Arefundofdutypaidonimportedmerchandisewhenitisexportedlater,whetherinthesameoradifferentform. DutyFreeZone(DFZ): Anareawheregoodsorcargocanbestoredwithoutpayingimportcustomsdutieswhileawaitingmanufacturing orfuturetransport. E.T.A.: TheEstimatedTimeofArrival. E.T.D.: TheEstimatedTimeofDeparture. Economicorderquantity(EOQ):

Aninventorymodelthatdetermineshowmuchtoorderbydeterminingtheamountthatwillminimizetotal orderingandholdingcosts. EconomyofScale: Theloweringofcostswithaddedoutputduetoallocationoffixedcostsovermoreunits. EDI: SeeElectronicDataInterchange. EDIInterchange: Communicationbetweenpartnersintheformofastructuredsetofmessagesandservicesegmentsstarting withaninterchangecontrolheaderandendingwithaninterchangecontroltrailer.InthecontextofX.400EDI messaging,thecontentsoftheprimarybodyofanEDImessage. EDIFACT: EDIforAdministrationCommerceandTransport. Efficientconsumerresponse(ECR): Acustomerdrivensystemwheredistributorsandsuppliersworktogetherasbusinessalliestomaximize consumersatisfactionandminimizecost. Electronicdatainterchange(EDI): Computertocomputercommunicationbetweentwoormorecompaniesthatsuchcompaniescanuseto generatebillsoflading,purchaseorders,andinvoices.Italsoenablesfirmstoaccesstheinformationsystems ofsuppliers, Electronicdatainterchange(EDI): Customers,andcarriersandtodeterminetheuptotheminutestatusofinventory,orders,andshipments. Embargo: Aprohibitionuponexportsorimports,eitherwithspecificproductsorspecificcountries. EndUser: Thefinalbuyeroftheproductwhopurchasestheproductforimmediateuse. 20

Enroute: Atermusedforgoodsintransitoronthewaytoadestination. EnterpriseResourcePlanning(ERP): Acrossfunctional/regionalplanningprocesssupportingregionalforecasting,distributionplanning,operations centersplanning,andotherplanningactivities.ERPprovidesthemeanstoplan,analyze,andmonitortheflow ofdemand/supplyalignmentandtoallocatecriticalresourcestosupportthebusinessplan. EntryForm: ThedocumentthatmustbefiledwithCustomstoobtainthereleaseofimportedgoodsandtoallowcollectionof dutiesandstatistics.AlsocalledaCustomsEntryFormorEntry. Equipment: Therollingstockcarriersusetofacilitatethetransportationservicesthattheyprovide,includingcontainers, trucks,chassis,vessels,andairplanes,amongothers. EquipmentI.D.: Anidentifierassignedbythecarriertoapieceofequipment.SeealsoContainerID. EquipmentPositioning: Theprocessofplacingequipmentataselectedlocation. ERP: SeeEnterpriseResourcePlanning. ExWorks: Thepricethatthesellerquotesappliesonlyatthepointoforigin.Thebuyertakespossessionoftheshipmentat thepointoforiginandbearsallcostsandrisksassociatedwithtransportingthegoodstothedestination. ExceptionRate: Adeviationfromtheclassrate;changes(exceptions)madetotheclassification. ExclusivePatronageAgreements: Ashipperagreestouseonlyaconference'smemberlinerfirmsinreturnfora10to15percentratereduction. ExclusiveUse: Vehiclesthatacarrierassignstoaspecificshipperforitsexclusiveuse. ExemptCarrier: Aforhirecarrierthatisexemptfromeconomicregulations. Expediting: Determiningwhereanintransitshipmentisandattemptingtospeedupitsdelivery. ExpertSystem: Acomputerprogramthatmimicsahumanexpert. Export: Tosendgoodsandservicestoanothercountry.

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ExportBroker: Anenterprisethatbringstogetherbuyerandsellerforafee,theneventuallywithdrawsfromthetransaction. ExportDeclaration: AdocumentrequiredbytheU.S.Treasurydepartmentandcompletedbytheexportertoshowthevalue,weight, consignee,destination,etc.,pertinenttotheexportshipment.Thedocumentservestwopurposes:togather tradestatisticsandtoprovideacontroldocumentifthegoodsrequireavalidexportlicense. ExportLicense: Adocumentsecuredfromagovernmentauthorizinganexportertoexportaspecificquantityofacontrolled commoditytoacertaincountry.Anexportlicenseisoftenrequiredifagovernmenthasplacedembargoesor otherrestrictionsuponexports. ExportManagementCompany: Aprivatefirmthatservesastheexportdepartmentforseveralmanufacturers,solicitingandtransactingexport businessonbehalfofitsclientsinreturnforacommission,salary,oraretainerpluscommission. ExportSalesContract: Theinitialdocumentinanyinternationaltransaction;itdetailsthespecificsofthesalesagreementbetweenthe buyerandseller. ExportTradingCompany: Afirmthatbuysdomesticproductsforsaleoverseas.Atradingcompanytakestitletothegoods;anexport managementcompanyusuallydoesnot. ExporterIdentificationNumber(EIN): AnumberrequiredfortheexporterontheShipper'sExportDeclaration.AcorporationmayusetheirFederal EmployerIdentificationNumberasissuedbytheIRS;individualscanusetheirSocialSecurityNumbers. F.O.B.: Atermofsaledefiningwhoistoincurtransportationchargesfortheshipment,whoistocontroltheshipment movement,orwheretitletothegoodspassestothebuyer;originallymeant"freeonboardship." FairReturn: Aprofitlevelthatenablesacarriertorealizearateofreturnoninvestmentorpropertyvaluethattheregulatory agenciesdeemacceptableforthatlevelofrisk. FairValue: Thevalueofthecarrier'sproperty;thecalculationbasishasincludedoriginalcostminusdepreciation, replacementcost,andmarketvalue. FAS: SeeFreeAlongSide. FCL: SeeFullContainerLoad. FederalAviationAdministration: Thefederalagencythatadministersfederalsafetyregulationsgoverningairtransportation. 22

FederalMaritimeCommission: RegulatoryagencyresponsibleforratesandpracticesofoceancarriersshippingtoandfromtheUnitedStates. FEU: Fortyfootequivalentunit,astandardsizeintermodalcontainer. FieldWarehouse: Awarehousethatstoresgoodsonthegoods'owner'spropertywhilethegoodsareunderabonafidepublic warehousemanager'scustody.Theownerusesthepublicwarehousereceiptsascollateralforaloan. FillRate: Thepercentageoforderitemsthatthepickingoperationactuallyfound. FinalDestination: Thelaststoppingpointforashipment. FinanceLease:

Anequipmentleasingarrangementthatprovidesthelesseewithameansoffinancingfortheleasedequipment; acommonmethodforleasingmotorcarriertrailers. FinancialResponsibility: Motorcarriersmusthavebodilyinjuryandpropertydamage(notcargo)insuranceofnotlessthan$500,000per incidentpervehicle;higherfinancialresponsibilitylimitsapplyformotorcarrierstransportingoilorhazardous materials. FinishedGoodsInventory(FGI): Theproductscompletelymanufactured,packaged,stored,andreadyfordistribution. FIPS: FederalInformationProcessingStandards. FirmPlannedOrder: InaDRPorMRPsystem,aplannedorderwhosestatushasbeenupdatedtoafixedorder. FixedCosts: Coststhatdonotfluctuatewiththebusinessvolumeintheshortrun. FixedQuantityInventoryModel: Asetupwhereinacompanyordersthesame(fixed)quantityeachtimeitplacesanorderforanitem. Flatcar: Arailcarwithoutsides,usedforhaulingmachinery. FlexiblePathEquipment: Materialshandlingdevicesthatincludehandtrucksandforklifts. FlightNumber: Anidentifierassociatedwiththeairequipment(plane).Typicallyacombinationoftwoletters,indicatingthe airline,andthreeorfourdigitsindicatingthenumberofthevoyage.

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FlowRack: Astoragemethodwhereproductispresentedtopickingoperationsatoneendofarackandreplenishedfrom theoppositeend. ForHireCarrier: Acarrierthatprovidestransportationservicetothepubliconafeebasis. ForeignTradeZone(FTZ): AsitesanctionedbytheU.S.CustomsServiceinwhichimportedgoodsareexemptedfromdutiesuntil withdrawnfordomesticsaleoruse.Suchzonesareusedbycommercialwarehousesorassemblyplants. ForkliftTruck: Amachinepowereddeviceusedtoraiseandlowerfreightandtomovefreighttodifferentwarehouselocations. FormUtility: Thevaluetheproductionprocesscreatesinagoodbychangingtheitem'sform. Forwarder'sBillofLading: SeeConsolidator'sBillofLading. FPA: FreeofParticularAverage.SeeMarineCargoInsurance. FreeAlongSide(FAS): Theselleragreestodeliverthegoodstothedockalongsidetheoverseasvesselthatistocarrytheshipment. Thesellerpaysthecostofgettingtheshipmenttothedock;thebuyercontractsthecarrier,obtains documentation,andassumesallresponsibilityfromthatpointforward. FreeofParticularAverage: SeeMarineCargoInsurance. FreeonBoard(F.O.B.)(exchangepoint): Thisexpressionfollowsanexchangepoint.Theexchangepointindicatesthetransitionofresponsibility(risk) fromthebuyertotheseller.SeealsoTermsofSale.Forexample:F.O.B.OriginTheselleragreestodeliverthe goodstothepointoforigin. FreeTime: Theperiodoftimeallowedfortheremovaloraccumulationofcargobeforechargesbecomeapplicable. FreeTradeZone(FTZ): SeeForeignTradeZone. Freight: Goodsbeingtransportedfromoneplacetoanother. FreightAlongsideShip: Thepointofembarkmentchosenbythebuyer,fromwhereacarriertransportsgoods.Underthisdesignation,a sellerisobligatedtopaythecostandassumeallrisksfortransportinggoodsfromaplaceofbusinesstothe FASpoint.

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FreightBill: Thecarriersinvoiceforpaymentoftransportservicesrendered. FreightCharge: Therateestablishedfortransportingfreight. FreightCollect: Thefreightandchargestobepaidbytheconsignee. FreightForwarder: Anenterprisethatprovidesservicestofacilitatethetransportofshipments.Servicescanincludedocumentation preparation,spaceandequipmentreservation,warehousing,consolidation,delivery,clearance,bankingand insuranceservices,andagencyservices.Theforwardermayfacilitatetransportbyland,air,ocean,ormay specializeinonemodeoftransport.AlsocalledForwarderorForeignFreightForwarder. FreightForwardersInstitute: Thefreightforwarderindustryassociation. FreightPrepaid: Thefreightandchargestobepaidbytheconsignor. FreightQuotation: Aquotationfromacarrierorforwardercoveringthecostoftransportbetweentwospecifiedlocations. FreightAllKinds(FAK): Anapproachtoratemakingwherebytheanteisbasedonlyupontheshipmentweightanddistance;widely usedinTOFCservice. FTL: SeeFullTruckLoad. FTZ: SeeForeignTradeZoneandFreeTradeZone. FullContainerLoad(FCL): Atermusedwhengoodsoccupyawholecontainer. FullTruckLoad(FTL): SameasFullContainerLoad,butinreferencetomotorcarriageinsteadofcontainers. FullServiceLeasing: Anequipmentleasingarrangementthatincludesavarietyofservicestosupporttheleasedequipment;a commonmethodforleasingmotorcarriertractors. FulltimeConnection: Acommunicationlinkbetweentwo(ormore)entitieswhichisnormallymaintainedcontinuously. FullyAllocatedCost: Thevariablecostassociatedwithaparticularoutputunitplusacommoncostallocation.

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GatheringLines: Oilpipelinesthatbringoilfromtheoilwelltostorageareas. GATT: SeeGeneralAgreementonTariffsandTrade. GB/L: SeeGovernmentBillofLading. GeneralAgreementonTariffsandTrade(GATT): Amultilateraltradeagreementaimedatexpandinginternationaltradeasameansofraisingworldwelfare. GeneralAverage: SeeMarineCargoInsurance. GeneralOrder(GO): Acustomstermreferringtoawarehousewheremerchandisenotenteredwithinfiveworkingdaysafterthe carrier'sarrivalisstoredattheriskandexpenseoftheimporter. GeneralCommoditiesCarrier: Acommonmotorcarrierthathasoperatingauthoritytotransportgeneralcommodities,orallcommoditiesnot listedasspecialcommodities. GeneralMerchandiseWarehouse: Awarehouseusedtostoregoodsthatarereadilyhandled,arepackaged,anddonotrequireacontrolled environment. GO: SeeGeneralOrder. GoingConcernValue: Thevaluethatafirmhasasanentity,asopposedtothesumofthevaluesofeachofitspartstakenseparately; particularlyimportantindeterminingareasonablerailroadrate. Gondola: Arailcarwithaflatplatformandsidesthreetofivefeethigh,usedfortoploadinglong,heavyitems. Goods: Atermassociatedwithmorethanonedefinition:1)Commontermindicatingmovableproperty,merchandise,or wares.2)Allmaterialswhichareusedtosatisfydemands.3)Wholeorpartofthecargoreceivedfromthe shipper,includinganyequipmentsuppliedbytheshipper. GovernmentBillofLading(GB/L): ThebillofladingusedforshipmentsmadebyU.S.Governmentagencies. GrandfatherClause: AprovisionthatenabledmotorcarriersengagedinlawfultruckingoperationsbeforethepassageoftheMotor CarrierActof1935tosecurecommoncarrierauthorityw/oprovingpublicconvenienceandnecessity;asimilar provisionexistsforothermodes.

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GrangerLaws: Statelawspassedbefore1870inmidwesternstatestocontrolrailtransportation. GreatLakescarriers: WatercarriersthatoperateonthefiveGreatLakes. GridTechnique: Aquantitativetechniquetodeterminetheleastcostcenter,givenrawmaterialssourcesandmarkers,for locatingaplantorwarehouse. GrossNationalProduct(GNP): Ameasureofanation'soutput;thetotalvalueofallfinalgoodsandservicesanationproducesduringatime period. GrossWeight: Thetotalweightofthevehicleandthepayloadoffreightorpassengers. GTDI:EuropeanGuidelinesforTradeDataInterchange. GuaranteedLoans: Railroadloansthatthefederalgovernmentcosignsandguarantees. GUI: GraphicalUserInterface. Hardcopy: Computeroutputprintedonpaper. HarmonizedCommodityDescription&CodingSystem(HarmonizedCode): Aninternationalclassificationsystemthatassignsidentification#stospecificproducts.Thecodingsystem ensuresthatallpartiesinint'l.tradeuseaconsistentclassificationforthepurposesofdocumentation,statistical control,anddutyassessment. Haulage: Theinlandtransportservicewhichisofferedbythecarrierunderthetermsandconditionsofthetariffandofthe relativetransportdocument. HAWB: SeeHouseAirWaybill. HazardousGoods: Articlesorsubstancescapableofposingasignificantrisktohealth,safety,orproperty,andthatordinarily requirespecialattentionwhentransported.AlsocalledDangerousGoods. Hazardousmaterials: MaterialsthattheDepartmentofTransportationhasdeterminedtobearisktohealth,safety,andproperty; includesitemssuchasexplosives,flammableliquids,poisons,corrosiveliquids,andradioactivematerial.

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hilow: Usuallyreferstoaforklifttruckonwhichtheoperatormuststandratherthansit. HighwayTrustFund: Afundintowhichhighwayusers(carriersandautomobileoperators)pay;thefundpaysforfederalgovernment's highwayconstructionshare. highwayusetaxes: Taxesthatfederalandstategovernmentsassessagainsthighwayusers(thefueltaxisanexample).The governmentusestheusetaxmoneytopayfortheconstruction,maintenance,andpolicingofhighways. hoppercars: Railcarsthatpermittoploadingandbottomunloadingofbulkcommodities;somehoppercarshavepermanent topswithhatchestoprovideprotectionagainsttheelements. HouseAirWaybill(HAWB): Abillofladingissuedbyaforwardertoashipperasareceiptforgoodsthattheforwarderwillconsolidatewith cargofromothershippersfortransport. HousetoHouse: SeeDoortoDoor. HousetoPier: SeeDoortoPort. householdgoodswarehouse: Awarehousethatstoreshouseholdgoods. Hub: Acentrallocationtowhichtrafficfrommanycitiesisdirectedandfromwhichtrafficisfedtootherareas. hubairport: Anairportthatservesasthefocalpointfortheoriginandterminationoflongdistanceflights;flightsfrom outlyingareasmeetconnectingflightsatthehubairport. hundredweight(cwt): Thepricingunitusedintransportation;ahundredweightisequalto100pounds ICC: InterstateCommerceCommission(U.S.). igloos: Palletsandcontainersusedinairtransportation;theiglooshapefitstheinternalwallcontoursofanarrowbody airplane. IMB: SeeInternationalMaritimeBureau. IMO: SeeInternationalMaritimeOrganization.

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ImportLicense: Adocumentissuedbyacarrierandbysomenationalgovernmentsauthorizingtheimportationofgoodsinto theirindividualcountries. ImportationPoint: Thelocationwheregoodswillbeclearedforimportationintoacountry. InBond: GoodsareheldortransportedInBondundercustomscontroleitheruntilimportdutiesorotherchargesare paid,ortoavoidpayingthedutiesorchargesuntilalaterdate. incentiverate: Aratethatinducestheshippertoshipheaviervolumespershipment. Incoterms: InternationaltermsofsaledevelopedbytheInternationalChamberofCommerce. independentaction: Acarrierthatisaratebureaumembermaypublisharatethatdiffersfromtheratetheratebureaupublishes. Information: Thedata,plustheinterpretationnecessarytounderstandit. informationsystem(I/S): Managingtheflowofdatainanorganizationinasystematic,structuredwaytoassistinplanning,implementing, andcontrolling. inherentadvantage: Thecostandservicebenefitsofonemodecomparedwithothermodes. InlandBillofLading: Thecarriagecontractusedintransportfromashippingpointoverlandtotheexporter'sinternationalcarrier location. InlandCarrier: Anenterprisethatoffersoverlandservicetoorfromapointofexport. InspectionCertificate: Adocumentcertifyingthatmerchandise(suchasperishablegoods)wasingoodconditionimmediatelypriorto shipment. Insurance: Asystemofprotectionagainstlossunderwhichanumberofpartiesagreetopaycertainsums(premiums)fora guaranteethattheywillbecompensatedundercertainconditionsforspecifiedlossanddamage. InsuranceCertificate: Adocumentissuedtotheconsigneetocertifythatinsuranceisprovidedtocoverlossofordamagetothecargo whileintransit.

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IntegratedCarrier: Anairfreightcompanythatoffersablendoftransportationservicessuchasaircarriage,freightforwarding,and groundhandling. interchange: Thetransferofcargoandequipmentfromonecarriertoanotherinajointfreightmove. intercoastalcarriers: WatercarriersthattransportfreightbetweenEastandWestCoastports,usuallybywayofthePanamaCanal. intercorporatehauling: Aprivatecarrierhaulingasubsidiary'sgoodsandchargingthesubsidiaryafee;thisislegalifthesubsidiaryis whollyownedoriftheprivatecarrierhascommoncarrierauthority. interline: Twoormoremotorcarriersworkingtogethertohaulashipmenttoadestination.Carriersmayinterchange equipmentbutusuallytheyrehandletheshipmentwithouttransferringtheequipment. IntermediateDestination: Astoppingpointforashipmentpriortothefinaldestination. intermittentflow,fixedpathequipment: Materialshandlingdevicesthatincludebridgecranes,monorails,andstackercranes. IntermodalContainerTransferFacility: Afacilitywherecargoistransferredfromonemodeoftransportationtoanother,usuallyfromshiportrucktorail. intermodalmarketingcompany(IMC): Anintermediarythatsellsintermodalservicestoshippers. intermodaltransportation: Theuseoftwoormoretransportationmodestotransportfreight;forexample,railtoshiptotruck. internalwatercarriers: Watercarriersthatoperateoverinternal,navigableriverssuchastheMississippi,Ohio,andMissouri. InternationalAirTransportAssociation: Aninternationalaircarrierratebureauforpassengerandfreightmovements. InternationalCivilAeronauticsOrganization: Aninternationalagencyresponsibleforairsafetyandforstandardizingairtrafficcontrol,airportdesign,and safetyfeaturesworldwide. InternationalImportCertificate: Adocumentrequiredbytheimportingcountryindicatingthattheimportingcountryrecognizesthatacontrolled shipmentisenteringtheircountry.Theimportingcountrypledgestomonitortheshipmentandpreventitsre export,exceptinaccordancewithitsownexportcontrolregulations. InternationalMaritimeBureau(IMB): AspecialdivisionoftheInternationalChamberofCommerce.

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InternationalMaritimeOrganization(IMO): AUnitedNationsaffiliatedorganizationrepresentingallmaritimecountriesinmattersaffectingmaritime transportation,includingthemovementofdangerousgoods.Theorganizationalsoisinvolvedindeliberations onmarineenvironmentalpollution. interstatecommerce: Thetransportationofpersonsorpropertybetweenstates;inthecourseofthemovement,theshipmentcrosses astateboundary. InterstateCommerceCommission(ICC): Anindependentregulatoryagencythatimplementsfederaleconomicregulationscontrollingrailroads,motor carriers,pipelines,domesticwatercarriers,domesticsurfacefreightforwarders,andbrokers. InterstateSystem: TheNationalSystemofInterstateandDefenseHighways,42,000milesoffourlane,limitedaccessroads connectingmajorpopulationcenters. intrastatecommerce: Thetransportationofpersonsorpropertybetweenpointswithinastate.Ashipmentbetweentwopointswithina statemaybeinterstateiftheshipmenthadapriororsubsequentmoveoutsideofthestateandtheshipper intendedaninterstateshipmentat inventory: Thenumberofunitsand/orvalueofthestockofgoodsacompanyholds. inventorycost: Thecostofholdinggoods,usuallyexpressedasapercentageoftheinventoryvalue;includesthecostof capital,warehousing,taxes,insurance,depreciation,andobsolescence. inventoryintransit: Inventoryinacarrier'spossession,beingtransportedtothebuyer. inventorymanagement: Inventoryadministrationthroughplanning,stockpositioning,monitoringproductage,andensuringproduct availability. Invoice: Adetailedstatementshowinggoodssoldorshippedandamountsforeach.Theinvoiceispreparedbythe sellerandactsasthedocumentthatthebuyerwillusetomakepayment. irregularroutecarrier: Amotorcarrierthatmayprovideserviceutilizinganyroute. ISO: InternationalStandardsOrganization. IssuingCarrier: Thecarrierwhosenameisprintedonthebillofladingandwithwhomthecontractofcarriageexists. 31

jointcost: Acommoncostincaseswhereacompanyproducesproductsinfixedproportionsandthecostthecompany incurstoproduceoneproductentailsproducinganother;thebackhaulisanexample. jointrate: Arateoveraroutethatrequirestwoormorecarrierstotransporttheshipment. justintime(JIT)inventorysystem: Aninventorycontrolsystemthatattemptstoreduceinventorylevelsbycoordinatingdemandandsupplytothe pointwherethedesireditemarrivesjustintimeforuse. JustinTimeLogistics(orQuickResponse): Theprocessofminimizingthetimesrequiredtosource,handle,produce,transport,anddeliverproductsin ordertomeetcustomerrequirements. Kanbansystem: AjustintimeinventorysystemusedbyJapanesemanufacturers. kitting: Theprocessbywhichindividualitemsaregroupedorpackagedtogethertocreateaspecialsingleitem. lading: Thecargocarriedinatransportationvehicle. landbridge: ThemovementofcontainersbyshiprailshiponJapantoEuropemoves;shipsmovecontainerstotheU.S. PacificCoast,railsmovecontainerstoanEastCoastport,andshipsdelivercontainerstoEurope. landgrants: Grantsoflandgiventorailroadstobuildtracksduringtheirdevelopmentstage. landedcost: Thetotalcostofaproductdeliveredatagivenlocation;theproductioncostplusthetransportationcosttothe customer'slocation. lashbarges: Coveredbargesthatcarriersloadonboardoceangoingshipsformovementtoforeigndestinations. LASHVessel: Ashipmeasuringatleast820feetlongwithadeckcraneabletoloadandunloadbargesthroughastern sectionthatprojectsoverthewater.TheacronymLASHstandsforLighter(barge)AboardShip. LastUpdated: Adateandtimestampthatisrecordedwhenafieldorrecordwaslastmodifiedbytheuser. LCL: Lessthancarloadrailservice;lessthancontainerload. LCL: SeeLessthanContainerLoad. 32

leadtime: Thetotaltimethatelapsesbetweenanorder'splacementanditsreceipt.Itincludesthetimerequiredfororder transmittal,orderprocessing,orderpreparation,andtransit. Leg: Aleghasanorigin,destination,andcarrierandiscomposedofallconsecutivesegmentsofaroutebooked throughthesamecarrier.AlsocalledBookableLeg. LessthanContainerLoad(LCL): Atermusedwhengoodsdonotcompletelyoccupyanentirecontainer.Whenmanyshipper'sgoodsoccupya singlecontainer,eachshipper'sshipmentisconsideredtobeLCL. LessthanTruckLoad(LTL): ThesameasLessthanContainerLoad,butinreferencetotrucksinsteadofcontainers. lessee: Apersonorfirmtowhomalessorgrantsalease. lessor: Apersonorfirmthatgrantsalease. LetterofCredit(LOC): Aninstrumentofpayment,issuedbythebuyer'sbank,thatensurespaymenttotheseller. Lifton,Liftoff(LO/LO): Amethodbywhichcargoisloadedontoandunloadedfromanoceanvessel,whichinthiscaseiswithacrane. Lighter: Abargetypevesselusedtocarrycargobetweenshoreandcargoship.Whilethetermsbargeandlighterare usedinterchangeably,abargeusuallyreferstoavesselusedforalonghaul,whilealighterisusedforashort haul. Lighterage: Thecostofloadingorunloadingavesselbymeansofbarges. linefunctions: Thedecisionmakingareascompaniesassociatewithdailyoperations.Logisticslinefunctionsincludetraffic management,inventorycontrol,orderprocessing,warehousing,andpackaging. LineItem: Aspecificanduniqueidentifierassignedtoaproductbytheresponsibleenterprise. linehaulshipment: Ashipmentthatmovesbetweencitiesandoverdistancesmorethan100to150milesinlength. linerservice: Internationalwatercarriersthatplyfixedroutesonpublishedschedules. link: Thetransportationmethodacompanyusestoconnectnodes(plants,warehouses)inalogisticssystem.

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live: Asituationinwhichtheequipmentoperatorstayswiththetrailerorboxcarwhileitisbeingloadedorunloaded. LO/LO: SeeLifton,Liftoff. loadfactor: Ameasureofoperatingefficiencyusedbyaircarrierstodetermineaplane'sutilizedcapacitypercentageorthe numberofpassengersdividedbythetotalnumberofseats. LoadTender(pickuprequest): Anofferofcargofortransportbyashipper.Loadtenderterminologyisprimarilyusedinthemotorindustry. loadingallowance: Areducedratethatcarriersoffertoshippersand/orconsigneeswholoadand/orunloadLTLorAQshipments. LoadingPort:

Theportwherethecargoisloadedontotheexportingvessel.ThisportmustbereportedontheShipper's ExportDeclaration,ScheduleD.ScheduleDisusedbyU.S.companieswhenexportingtodeterminewhich tariffisusedtofreightratethecargoforcarrierswithmorethanonetariff. LOC: SeeLetterofCredit. localrate: Aratepublishedbetweentwopointsservedbyonecarrier. localservicecarriers: Aclassificationofaircarriersthatoperatebetweenlesspopulatedareasandmajorpopulationcenters.These carriersfeedpassengersintothemajorcitiestoconnectwithmajorcarriers.Localservicecarriersarenow classifiedasnationalcarriers. localizedrawmaterial: Arawmaterialfoundonlyincertainlocations. locationaldeterminant: Thefactorsthatdetermineafacility'slocation.Forindustrialfacilities,thedeterminantsincludelogistics. logbook: Adailyrecordofthehoursaninterstatedriverspendsdriving,offduty,sleepingintheberth,orondutybutnot driving. Logistics: Theprocessofplanning,implementing,andcontrollingproceduresfortheefficientandeffectivestorageof goods,services,andrelatedinformationfromthepointoforigintothepointofconsumptionforthepurposeof conformingtocustomerrequirements.Thisdefinitionincludesinbound,outbound,internal,andexternal movements. logisticschannel: Thenetworkofintermediariesengagedintransfer,storage,handling,andcommunicationsfunctionsthat contributetotheefficientflowofgoods. 34

LogisticsCosts: Thefactorsassociatedwiththeacquisition,storage,movement,anddispositionofgoods. logisticsdatainterchange(LDI): Acomputerizedsystemthatelectronicallytransmitslogisticsinformation. longton: 2,240pounds. lotsize: Thequantityofgoodsacompanypurchasesorproducesinanticipationofuseorsaleinthefuture. LTL: SeeLessthanTruckload. LTLshipment: Alessthantruckloadshipment,oneweighinglessthantheminimumweightacompanyneedstousethelower truckloadrate. lumping: Theactofassistingamotorcarrierowneroperatorintheloadingandunloadingofproperty;quitecommonly usedinthefoodindustry. mainframe: Anorganization'scentralcomputersystem. majorcarrier: Aforhirecertificatedaircarrierthathasannualoperatingrevenuesof$1billionormore;thecarrierusually operatesbetweenmajorpopulationcenters. ManagementofAllLogistics: Theeffectivemanagementofallcostsassociatedwithlogisticsfunctionsandactivitiessoastominimizetheir sumacrosstheproductsupplychain. Manifest: Alistofallcargoesthatpertaintoaspecificshipment,groupingofshipments,orpieceofequipment.Ocean carrierswillprepareamanifestwillprepareamanifestpercontainer,etc. ManufacturingResourcePlanning(MRPII): Theprocessofidentifying,performinganeedsanalysis,andcommittingtheresourcesneededtoproducea product. MarAd: SeeMaritimeAdministration. marginalcost: Thecosttoproduceoneadditionalunitofoutput;thechangeintotalvariablecostresultingfromaoneunit changeinoutput.

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MarineCargoInsuranceAverage: AverageAterminmarinecargoinsurancesignifyinglossordamagetomerchandise. MarineCargoInsuranceFPA: FPAFreeofParticularAverage.Aprovisioninamarinecargoinsurancepolicythatnoclaimshallbepaidfor damagetogoodsinthecourseofavoyageunlessalossissustainedthattotalsorexceedsacertain percentageofthevalueasspecifiedinthepolicy.Theobjectofsuchaprovisionistheavoidanceofpetty claims. MarineCargoInsuranceGeneralAverage: Alossarisingoutofavoluntarysacrificemadeofanypartofashipmentorcargotopreventlossofthewhole andforthebenefitofallpersonsconcerned. MarineCargoInsuranceOpenPolicy: Acontractb/taninsurancecompanyandtheexporterinwhichallshipmentsmadebytheinsuredare automaticallyprotectedfromthetimethemerchandiseleavestheinitialshippingpointuntildeliveryat destination. MaritimeAdministration(MarAd): AU.S.governmentagency,notactivelyinvolvedinvesseloperation,thatadministerslawsformaintenanceofa merchantmarineforthepurposesofdefenseandcommerce. marketdominance: Theabsenceofeffectivecompetitionforrailroadsfromothercarriersandmodesforthetraffictowhichtherail rateapplies.TheStaggersActstatedthatmarketdominancedoesnotexistiftherateisbelowtherevenueto variablecostratioof160percentin1981and170percentin1983. MarksandNumbers: Marksandnumbersplacedongoodsusedtoidentifyashipmentorpartsofashipment. MasterAirWaybill(MAWB): Thebillofladingissuedbyaircarrierstotheircustomers. materialindex: Theratioofthesumofthelocalizedrawmaterialweightstotheweightofthefinishedproduct. materialshandling: Shortdistancemovementofgoodswithinastoragearea. materialsmanagement: Themovementsandstoragefunctionsassociatedwithsupplyinggoodstoafirm. materialsplanning: Thematerialsmanagementfunctionthatattemptstocoordinatematerialssupplywithmaterialsdemand. MaterialsRequirementsPlanning(MRP): Theprocessusedtodeterminetheamountofmaterialtopurchaseandwhentopurchaseit. matrixorganization: Anorganizationalstructurethatemphasizesthehorizontalflowofauthority;thecompanytreatslogisticsasa project,withthelogisticsmanageroverseeinglogisticscostsbuttraditionaldepartmentscontrollingoperations. 36

MAWB: SeeMasterAirWaybill. measurementton: Fortycubicfeet;usedinwatertransportationratemaking. merger: Thecombinationoftwoormorecarriersintoonecompanythatwillown,manage,andoperatetheproperties thatpreviouslyoperatedseparately. microlandbridge: AnintermodalmovementinwhichtheshipmentismovedfromaforeigncountrytotheU.S.bywaterandthen movedacrosstheU.S.byrailroadtoaninterior,nonportcity,orviceversaforexportsfromanonportcity. mileageallowance: Anallowance,basedupondistance,thatrailroadsgivetoshippersusingprivaterailcars. mileagerate: Aratebaseduponthenumberofmilesthecommodityisshipped. minilandbridge: AnintermodalmovementinwhichtheshipmentismovedfromaforeigncountrytotheU.S.bywaterandthen movedacrosstheU.S.byrailroadtoadestinationthatisaportcity,orviceversaforexportsfromaU.S.port city. minimumweight: Theshipmentweightthecarrier'stariffspecifiesastheminimumweightrequiredtousetheTLorCLrate;the ratediscountvolume. mixedloads: Themovementofbothregulatedandexemptcommoditiesinthesamevehicleatthesametime. modalsplit: Therelativeusethatcompaniesmakeoftransportationmodes;thestatisticsincludetonmiles,passenger miles,andrevenue. MROitems: Maintenance,repair,andoperatingitemsofficesupplies,forexample. MotorCarrier: Anenterprisethatoffersserviceviamotorcarriage. MovementofGoods: Thetransferofgoodsfromonelocationtoanother. MRP: SeeMaterialsRequirementPlanning MRPII: SeeManufacturingResourcePlanning

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multinationalcompany: Acompanythatbothproducesandmarketsproductsindifferentcountries. multiplecarrate: Arailroadratethatislowerforshippingmorethanonecarloadatatime. nationalcarrier: Aforhirecertificatedaircarrierthathasannualoperatingrevenuesof$75millionto$1billion;thecarrierusually operatesbetweenmajorpopulationcentersandareasoflesserpopulation. NationalIndustrialTrafficLeague: Anassociationrepresentingshippers'andreceivers'interestsinmattersoftransportationpolicyandregulation. nationalization: Publicownership,financing,andoperationofabusinessentity. NationalMotorBusOperatorsOrganization: Anindustryassociationrepresentingcommonandcharterbusfirms;nowknownastheAmericanBus Association. NationalRailroadCorporation: AlsoknownasAmtrak,thecorporationestablishedbytheRailPassengerServiceActof1970tooperatemost oftheUnitedStates'railpassengerservice. NegotiableBOL: Providesforthedeliveryofgoodstoanamedenterpriseortotheirorder(anyonetheymaydesignate),butonly uponsurrenderofproperendorsementandthebillofladingtothecarrierorthecarrier'sagents.Alsoknownas anorderbilloflading. Negotiations: Asetofdiscussionsbetweentwoormoreenterprisestodeterminethebusinessrelationship. NetWeight: Theweightofthemerchandise,unpacked,exclusiveofanycontainers. nolocation(NoLoc): Areceiveditemforwhichthewarehousehasnopreviouslyestablishedstorageslot. node: Afixedpointinafirm'slogisticssystemwheregoodscometorest;includesplants,warehouses,supply sources,andmarkets. NonVesselOperatingCommonCarrier(NVOCC): Afirmthatoffersthesameservicesasanoceancarrier,butwhichdoesnotownoroperateavessel.NVOCCs usuallyactasconsolidators,acceptingsmallshipments(LCL)andconsolidatingthemintofullcontainerloads. Theythenactasashipper,tenderingthecontainerstooceancommoncarriers.Theyarerequiredtofiletariffs withtheFederalMaritimeCommissionandaresubjecttothesamelawsandstatutesthatapplytoprimary commoncarriers.

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NonNegotiableBOL: Providesforthedeliveryofgoodstoanamedenterpriseandtonooneelse.Alsoknownasastraightbillof lading. nonvesselowningcommoncarrier(NVOCC): Afirmthatconsolidatesanddispersesinternationalcontainersthatoriginateatorareboundforinlandports. noncertificatedcarrier: Aforhireaircarrierthatisexemptfromeconomicregulation. NOS/NES: SeeNototherwisespecified/Notelsewherespecified. NotifyParty: Theabbreviationofthenameofanorganizationthatshouldbenotifiedwhenashipmentreachesitsdestination. Nototherwisespecified/Notelsewherespecified(NOS/NES):

Thistermoftenappearsinoceanorairfreighttariffsrespectively.Ifnorateforthespecificcommodityshipped appearsinthetariff,thenageneralclassrate(forexample:printedmatterNES)willapply.Suchratesusually arehigherthanratesforspecificcommodities. NVOCC: SeeNonVesselOperatingCommonCarrier. OceanBillofLading: Thebillofladingissuedbytheoceancarriertoitscustomer. OceanCarrier: Anenterprisethatoffersserviceviaocean(water)transport. Offer: SeeTender. onlinereceiving: Asysteminwhichcomputerterminalsareavailableateachreceivingbayandoperatorsenteritemsintothe systemastheyareunloaded. OpenPolicy: SeeMarineCargoInsurance. OperatingDifferentialSubsidy(ODS): ApaymenttoanAmericanflagcarrierbytheU.S.governmenttooffsetthedifferenceinoperatingcosts betweenU.S.andforeignvessels. operatingratio: AmeasureofoperatingefficiencydefinedasOperatingexpensesdividedbytheOperatingrevenuesx100. Order: Atypeofrequestforgoodsorservices.

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ordercycletime: Thetimethatelapsesfromplacementoforderuntilreceiptoforder.Thisincludestimeforordertransmittal, processing,preparation,andshipping. OrderCycle: Thetimespentandtheactivitiesperformedfromthetimeanorderisreceivedtotheactualdeliveryoftheorder toacustomer. OrderFill: Ameasureofthenumberofordersprocessedwithoutstockouts,ortheneedtobackorder,expressedasa percentageofallordersprocessedinthedistributioncenterorwarehouse. orderpicking: Assemblingacustomer'sorderfromitemsinstorage. orderprocessing: Theactivitiesassociatedwithfillingcustomerorders. orderingcost: Thecostofplacinganinventoryorderwithasupplier. Origin: Theplacewhereashipmentbeginsitsmovement. OSD: Over,Short,andDamaged. outofpocketcost: Thecostdirectlyassignabletoaparticularunitoftrafficandwhichacompanywouldnothaveincurredifithad notperformedthemovement. outsourcing: Purchasingalogisticsservicefromanoutsidefirm,asopposedtoperformingitinhouse. overtheroad: Amotorcarrieroperationthatreflectslongdistance,intercitymoves;theoppositeoflocaloperations. owneroperator: Atruckingoperationinwhichthetruck'sownerisalsothedriver. P&D: Pickupanddelivery. PackingList: AdocumentcontaininginformationaboutthelocationofeachProductIDineachpackage.Itallowstherecipient toquicklyfindtheitemheorsheislookingforwithoutabroadsearchofallpackages.Italsoconfirmstheactual shipmentofgoodsonalineitembasis. pallet: Aplatformdevice(aboutfourfeetsquare)usedformovingandstoringgoods.Aforklifttruckisusedtoliftand movetheloadedpallet. 40

palletwrappingmachine: Amachinethatwrapsapallet'scontentsinstretchwraptoensuresafeshipment. ParticularAverage: SeeMarineCargoInsurance. passengermile: Ameasureofoutputforpassengertransportationthatreflectsthenumberofpassengerstransportedandthe distancetraveled;amultiplicationofpassengershauledanddistancetraveled. Payment: Thetransferofmoney,orotheragreeduponmedium,forprovisionofgoodsorservices. PaymentCollection: Obtainingmoney,orotheragreeduponmedium,forprovisionofgoodsorservices. peakdemand:

Thetimeperiodduringwhichcustomersdemandthegreatestquantity. pegging: AtechniqueinwhichaDRPsystemtracesdemandforaproductbydate,quantity,andwarehouselocation. perdiem: Apaymentrateonerailroadmakestouseanother'scars. permit: Agrantofauthoritytooperateasacontractcarrier. personalcomputer(PC): Anindividualunitanoperatorusesforcreatingandmaintainingprogramsandfiles;canoftenaccessthe mainframesimultaneously. personaldiscrimination: Chargingdifferentratestoshipperswithsimilartransportationcharacteristics,or,chargingsimilarratesto shipperswithdifferingtransportationcharacteristics. physicaldistribution: Themovementandstorageoffinishedgoodsfrommanufacturingplantstowarehousestocustomers;used synonymouslywithbusinesslogistics. physicalsupply: Themovementandstorageofrawmaterialsfromsupplysourcestothemanufacturingfacility. PickUpOrder: Adocumentindicatingtheauthoritytopickupcargoorequipmentfromaspecificlocation. pick/pack: Pickingandpackingimmediatelyintoshipmentcontainers.

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pickingbyaisle: Amethodbywhichpickerspickallneededitemsinanaisleregardlessoftheitems'ultimatedestination;the itemsmustbesortedlater. pickingbysource: Amethodinwhichpickerssuccessivelypickallitemsgoingtoaparticulardestinationregardlessoftheaislein whicheachitemislocated. piggyback: Arailtruckservice.Ashipperloadsahighwaytrailer,andacarrierdrivesittoarailterminalandloadsitona railflatcar;therailroadmovesthetraileronflatcarcombinationtothedestinationterminal,wherethecarrier offloadsthetrailera pinlock: Ahardpieceofiron,formedtofitonatrailer'spin,thatlocksinplacewithakeytopreventanunauthorized personfrommovingthetrailer. placeutility: Avaluethatlogisticscreatesinaproductbychangingtheproduct'slocation.Transportationcreatesplaceutility. plannedorder: InDRPandMRPsystems,afutureorderthesystemplansinresponsetoforecasteddemand. PO: SeePurchaseOrder. pointofsaleinformation(POS): Priceandquantitydatafromtheretaillocationassalestransactionsoccur. policepowers: TheUnitedStates'constitutionallygrantedrightforthestatestoestablishregulationstoprotecttheircitizens' healthandwelfare;truckweight;speed,length,andheightlawsareexamples. pooling: Anagreementamongcarrierstosharethefreighttobehauledortoshareprofits.TheInterstateCommerceAct outlawedpoolingagreements,buttheCivilAeronauticsBoardhasapprovedprofitpoolingagreementsforair carriersduringstrikes. Port: Aharborwhereshipswillanchor. portauthority: Astateorlocalgovernmentthatowns,operates,orotherwiseprovideswharf,dock,andotherterminal investmentsatports. POS: PointofShipment. possessionutility: Thevaluecreatedbymarketing'sefforttoincreasethedesiretopossessagoodorbenefitfromaservice. 42

PrepaidFreight: Freightpaidbytheshippertothecarrierwhenmerchandiseistenderedforshipmentthatisnotrefundableifthe merchandisedoesnotarriveattheintendeddestination. primarybusinesstest: AtesttheICCusestodetermineifatruckingoperationisbonafideprivatetransportation;theprivatetrucking operationmustbeincidentaltoandinthefutheranceofthefirm'sprimarybusiness. privatecarrier: Acarrierthatprovidestransportationservicetothefirmthatownsorleasesthevehiclesanddoesnotchargea fee.Privatemotorcarriersmayhaulatafeeforwhollyownedsubsidiaries. privatewarehousing: Thestorageofgoodsinawarehouseownedbythecompanythathastitletothegoods. ProFormaInvoice: Aninvoice,forwardedbythesellerofgoodspriortoshipment,thatadvisesthebuyeroftheparticularsand valueofthegoods.Usuallyrequiredbythebuyerinordertoobtainanimportpermitorletterofcredit. Proforma: Atypeofquotationorofferthatmaybeusedwhenfirstnegotiatingthesalesofgoodsorservices.Ifthepro formaisaccepted,thenthetermsandconditionsoftheproformamaybecometherequest. Procurement: Theactofacquiringgoods. Product: Somethingthathasbeenorisbeingproduced. ProductDescription: Theuser'sdescriptionoftheproduct. ProductID: Amethodofidentifyingaproductwithoutusingafulldescription.Thesecanbedifferentforeachdocumenttype andmust,therefore,becapturedandrelatedtothedocumentinwhichtheywereused.Theymustthenbe relatedtoeachotherincontext(alsoknownasSKU,ItemCodeorNumber,orothersuchname). productionplanning: Thedecisionmakingareathatdetermineswhenandwhereandinwhatquantityamanufactureristoproduce goods. productivity: Ameasureofresourceutilizationefficiencydefinedasthesumoftheoutputsdividedbythesumoftheinputs. profitratio: Thepercentageofprofittosalesthatis,profitdividedbysales. proportionalrate: Aratelowerthantheregularrateforshipmentsthathavepriororsubsequentmoves;usedtoovercome combinationrates'competitivedisadvantages. 43

publicwarehousereceipt: Thebasicdocumentapublicwarehousemanagerissuesasareceiptforthegoodsacompanygivestothe warehousemanager.Thereceiptcanbeeithernegotiableornonnegotiable. publicwarehousing: Thestorageofgoodsbyafirmthatoffersstorageserviceforafeetothepublic. pullorderingsystem: Asysteminwhicheachwarehousecontrolsitsownshippingrequirementsbyplacingindividualordersfor inventorywiththecentraldistributioncenter. PurchaseOrder: Adocumentcreatedbyabuyertoofficiallyrequestaproductorservicefromaseller.Itcontains,amongother things,thenameandaddressofthebuyer,theshiptoaddress,thequantity,productcode[andexpectedprice], requestedshiporreceiptdate,salesandshippingterms,andotherappropriateinformation. purchasepricediscount: Apricingstructureinwhichtheselleroffersalowerpriceifthebuyerpurchasesalargerquantity. purchasing: Thefunctionsassociatedwithbuyingthegoodsandservicesthefirmrequires. purerawmaterial: Arawmaterialthatdoesnotloseweightinprocessing. pushorderingsystem: Asituationinwhichafirmmakesinventorydeploymentdecisionsatthecentraldistributioncenterandshipsto itsindividualwarehousesaccordingly. RailCarrier: Anenterprisethatoffersserviceviarailcarriage. RailWaybill: Thebillofladingissuedbyrailcarrierstotheircustomers. randomaccessmemory(RAM): Temporarymemoryonmicrochips.UserscanstoredatainRAMortakeitoutathighspeeds.However,any informationstoredinRAMdisappearswhenthecomputerisshutoff. ratebasisnumber: Thedistancebetweentworatebasispoints. ratebasispoint: Themajorshippingpointinalocalarea;carriersconsiderallpointsinthelocalareatobetheratebasispoint. ratebureau: Acarriergroupthatassemblestoestablishjointrates,todividejointrevenuesandclaimliabilities,andto publishtariffs.Ratebureaushavepublishedsinglelinerates,whichwereprohibitedin1984.

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RatedBillofLading: SeeFreightBill. Rates: Establishedchargesforthetransportofgoods. reasonablerate: Aratethatishighenoughtocoverthecarrier'scostbutnothighenoughtoenablethecarriertorealize monopolisticprofits. RecaptureClause: Aprovisionofthe1920TransportationActthatprovidedforselfhelpfinancingforrailroads.Railroadsthat earnedmorethantheprescribedreturncontributedonehalfoftheexcesstothefundfromwhichtheICCmade loanstolessprofitablerailroads.TheRecaptureClausewasrepealedin1933. ReceiptLocation: Alocationthatwillreceivegoods. ReceiptPoint: Theplacewherecargoentersthecareandcustodyofthecarrier. Receiver: Anenterprisethatreceivesgoods/services. Reciprocity: Thepracticebywhichgovernmentsextendsimilarconcessionstoeachother. reconsignment: Acarrierservicethatpermitsashippertochangethedestinationand/orconsigneeaftertheshipmenthas reacheditsoriginallybilleddestinationandtostillpaythethroughratefromorigintofinaldestination. ReedBulwinkleAct: Legislationthatlegalizedcommoncarrierjointratemakingthroughratebureaus;extendedantitrustimmunityto carriersparticipatinginaratebureau. Reefer: Acontainerwithaselfcontainedrefrigerationunit,usedforthetransportationofperishablecargo. reengineering: Afundamentalrethinkingandradicaldesignofbusinessprocessestoachievedramaticimprovementsin performance. refrigeratedwarehouse: Awarehousethatisusedtostoreperishableitemsrequiringcontrolledtemperatures. regionalcarrier: Aforhireaircarrier,usuallycertificated,thathasannualoperatingrevenuesoflessthan$75million;thecarrier usuallyoperateswithinaparticularregionofthecountry. regularroutecarrier: Amotorcarrierthatisauthorizedtoprovideserviceoverdesignatedroutes. 45

relayterminal: Amotorcarrierterminalthatfacilitatesthesubstitutionofonedriverforanotherwhohasdriventhemaximum hourspermitted. ReleaseApproval: Adocumenttoadvisethatgoodsareavailableforfurthermovementoraction. releasedvaluerates: Ratesbasedupontheshipment'svalue.Themaximumcarrierliabilityfordamageislessthanthefullvalue,and inreturnthecarrieroffersalowerrate. reliability: Acarrierselectioncriterionthatconsidersthecarriertransittimevariation;theconsistencyofthetransittimethe carrierprovides. reorderpoint: Apredeterminedinventorylevelthattriggerstheneedtoplaceanorder.Thisminimumlevelprovidesinventory tomeetthedemandafirmanticipatesduringthetimeittakestoreceivetheorder. reparation: AsituationinwhichtheICCrequiresarailroadtorepayusersthedifferencebetweentheratetherailroad chargesandthemaximumratetheICCpermitswhentheICCfindsaratetobeunreasonableortoohigh. Request: Anappealforatransactionofgoods/servicesbetweentwoenterprises. RequestedArrivalDate: Thedatetheshipmentmustarriveatthedestination. RestrictedArticles: AnairlinetermreferringtoahazardousmaterialasdefinedbyTitle49,CodeofFederalRegulations(U.S.)and AirTransportRestrictedArticlesCircular6D.Restrictedarticlestransporteddomesticallymaybeclassifiedas dangerousgoodswhentransporteddomesticallymaybeclassifiedasdangerousgoodswhentransported internationallybyair. Retaliation: Anactiontakenbyacountrytorestrainitsimportsfromanothercountrythathasincreasedatarifforimposed othermeasuresthatadverselyaffectthefirstcountry'sexports. reverselogistics: Theprocessofcollecting,moving,andstoringused,damaged,oroutdatedproductsand/orpackagingfromend users. rightofeminentdomain: Aconceptthat,inacourtoflaw,permitsacarriertopurchaselanditneedsfortransportationrightofway;used byrailroadsandpipelines. RO/RO: SeeRollon/Rolloff.

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rollonrolloff(RORO): Atypeofshipdesignedtopermitcargotobedrivenonatoriginandoffatdestination;usedextensivelyforthe movementofautomobiles. Route: Acompletemovementofashipmentfromitsorigintoitsdestinationbyacarrier. RRM: RapidResponseManufacturing. ruleofeight: BeforetheMotorCarrierActof1980,theICCrestrictedcontractcarriersrequestingauthoritytoeightshippers undercontract.Thenumberofshippershasbeendeletedasaconsiderationforgrantingacontractcarrier permit. ruleofratemaking: Aregulatoryprovisiondirectingtheregulatoryagenciestoconsidertheearningsacarrierneedstoprovide adequatetransportation safetystock: Theinventoryacompanyholdsbeyondnormalneedsasabufferagainstdelaysinreceiptofordersorchanges incustomerbuyingpatterns. SalesOrder: SeeCustomerOrder. salvagematerial: Unusedmaterialthathasamarketvalueandcanbesold. ScheduleInformation: Dataconcerningtheserviceprovidedbyanenterprise. scrapmaterial: Unusablematerialthathasnomarketvalue. SealNumber: Theidentifierassignedtothetagusedtosecureormarkthelockingmechanismonclosedcontainers. Seller: Anenterprisethatarrangesforthesupplytransactionofgoods/serviceswithotherenterprises. separablecost: Acostthatacompanycandirectlyassigntoaparticularsegmentofthebusiness. Service: Thedefined,regularpatternofcallsmadebyacarrierinthepickupanddischargeofcargo. ServiceContract: Acontractbetweenashipperandanoceancarrierorconference,inwhichtheshippermakesacommitmentto provideaminimumquantityofcargooverafixedtimeperiod.Theoceancarrierorconferencealsocommitstoa

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rateorratescheduleaswellasadefinedservicelevel,suchasspace,transititem,portrotation,orother features. ServiceLevels: Asetstandardofoperatingproceduresandoutcomesasagreeduponbyoneormoreenterprisesinvolvedina transaction. ServiceProvider: Anenterprisethatoffersandsuppliesgoodsorservices. ServiceRequest: Adescriptionofaspecificserviceprovidedasaninterfacebetweenlayers(forexample:transferdata). ServiceResponse: Adescriptionoftheresponsetoaspecificservicerequestthatreportsthesuccessorfailureoftherequest. setupcosts: Thecostsamanufacturerincursinstagingtheproductionlinetoproduceadifferentitem. shipagent: Alinercompanyortrampshipoperatorrepresentativewhofacilitatesshiparrival,clearance,loadingand unloading,andfeepaymentwhileataspecificport. shipbroker: Afirmthatservesasagobetweenforthetrampshipownerandthecharteringconsignororconsignee. Shipment: Ashipmentisauserdefinedunitcontaininggoods(singleormultipleunits)andrequirestransportationfrom onelocationtoanother.Ashipmentbecomesashipmentwhenitleavestheconsignor'slocation.Ashipmentis completewhenitarrivesattheconsignee'sdestination. ShipmentAvailableDate: Thedatetheshipmentwillbeavailablefortransportation. ShipmentGrossWeightQualifier: AweightqualifierfortheestimatedgrossweightofLCLand/orFCLforabooking. ShipmentIdentification: Afreetextfieldthatservesasashipmentidentifiertouniquelyidentifyashipmenttotheuser.ThisshipmentID issuppliedbytheuserandallowsloadstobeconsolidatedintoshipments. ShipmentPoint: Aspecificlocationfromwheregoodswilldepartformovement. Shipper: Anenterprisethatfulfillstherequestforgoodsorservices. shipper'sagent: Afirmthatprimarilymatchesupsmallshipments,especiallysingletrafficpiggybackloads,topermitshippersto usetwintrailerpiggybackrates.

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shippersassociation: Anonprofit,cooperativeconsolidatoranddistributorofshipmentsthatmemberfirmsownorship;actsinmuch thesamewayasaforprofitfreightforwarder. ShippingInstructions: Adocumentdetailingthecargoandtherequirementsofitsphysicalmovement. ShippingPoint: SeeShipmentPoint. shortton: 2,000pounds. shorthauldiscrimination: Chargingmoreforashorterhaulthanforalongerhauloverthesameroute,inthesamedirection,andforthe samecommodity. simulation: Acomputermodelthatrepresentsareallifelogisticsoperationwithmathematicalsymbolsandrunsitfora simulatedlengthoftimetodeterminehowproposedchangeswillaffecttheoperation. SKU: SeeStockKeepingUnit. sleeperteam: Twodriverswhooperateatruckequippedwithasleeperberth;whileonedriversleepsintheberthto accumulatemandatoryoffdutytime,theotherdriveroperatesthevehicle. slipseatoperation: Amotorcarrierrelayterminaloperationinwhichacarriersubstitutesonedriverforanotherwhohas accumulatedthemaximumdrivingtimehours. slipsheet: Similartoapallet,theslipsheet,whichismadeofcardboardorplastic,isusedtofacilitatemovementof unitizedloads. slurry: Drycommoditiesthataremadeintoaliquidformbytheadditionofwaterorotherfluidstopermitmovementby pipeline. SocietyofLogisticsEngineers: Aprofessionalassociationengagedintheadvancementoflogisticstechnologyandmanagement. software: Acomputertermthatdescribesthesystemdesignandprogrammingthatthecomputer'seffectiveuserequires. Source: Aspecificlocationorenterprisefromwheregoodswillbeobtained.

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SpaceandEquipmentReservation: Abusinesstransactionbetweentwoenterprisestoarrangeforservicestofacilitatethemovementofgoodsviaa carrier. SpaceRequest(SpaceandEquipmentRequest): Abusinesstransactionbetweentwoenterprises.Anenterprisethathasgoodstobemovedwillcontactanentity thatprovidestransportservicestorequestspaceandequipmentforanupcomingshipment.Therequestserves asthefirstactiontolaunchasetofnegotiationsbetweenthetwoenterprises. SpecialCustomsInvoice: Inadditiontoacommercialinvoice,somecountriesrequireaspecialcustomsinvoicedesignedtofacilitatethe clearanceofgoodsandtheassessmentofcustomsdutiesinthatcountry. specialcommoditiescarrier: Acommoncarriertruckingcompanythathasauthoritytohaulaspecialcommodity;thesixteenspecial commoditiesincludehouseholdgoods,petroleumproducts,andhazardousmaterials. specialcommoditywarehouses: Awarehousethatisusedtostoreproductsrequiringuniquefacilities,suchasgrain(elevator),liquid(tank),and tobacco(barn). SpecificDuty: SeeDuty. spot: Tomoveatrailerorboxcarintoplaceforloadingorunloading. spurtrack: Arailroadtrackthatconnectsacompany'splantorwarehousewiththerailroad'strack;theuserbearsthecost ofthespurtrackanditsmaintenance. stafffunctions: Theplanningandanalysissupportactivitiesafirmprovidestoassistlinemanagerswithdailyoperations. Logisticsstafffunctionsincludelocationanalysis,systemdesign,costanalysis,andplanning. Stage: Theactoflocatinggoodsataspecificlocationtoprepareformovement. statisticalprocesscontrol(SPC): Amanagerialcontroltechniquethatexaminesaprocess'sinherentvariability. Status: Informationconcerningthestateorlocationofadefineditem. SteamshipConference: Avoluntary,collective,ratemakingbodyrepresentingmembersteamshiplines. SteamshipLine: Acompanythatownsand/oroperatesvesselsinmaritimetrade.

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STL: StandardTwoLetter(codedesignationforairlines). StockingKeepingUnit(SKU): Amethodofidentifyingaproductwithoutusingafulldescription. stocklesspurchasing: ApracticewherebythebuyernegotiatesapurchasepriceforannualrequirementsofMROitemsandtheseller holdsinventoryuntilthebuyerordersindividualitems. stockout: Asituationinwhichtheitemsacustomerordersarecurrentlyunavailable. stockoutcost: Theopportunitycostthatcompaniesassociatewithnothavingsupplysufficienttomeetdemand. stores:

Thefunctionassociatedwithstoringandissuingfrequentlyuseditems. strategicplanning: Lookingonetofiveyearsintothefutureanddesigningalogisticalsystem(orsystems)tomeettheneedsofthe variousbusinessesinwhichacompanyisinvolved. strategicvariables: Thevariablesthateffectchangeintheenvironmentandlogisticsstrategy.Themajorstrategicvariablesinclude theeconomy,population,energy,andgovernment. strategy: Aspecificactiontoachieveanobjective. stretchwrap: Anelastic,thinplasticmaterialthateffectivelyadherestoitself,therebycontainingproductonapalletwhen wrappedaroundtheitems. Stripping: Theunloadingofcargofromacontainerorotherpieceofequipment.SeeDevanning. Subsidy: Theeconomicbenefitgrantedbyagovernmenttoproducersofgoodsorservicesoftentostrengthentheir competitiveposition. substitutability: Abuyer'sabilitytosubstitutedifferentsellers'products. supplementalcarrier: Aforhireaircarrierhavingnotimescheduleordesignatedroute;thecarrierprovidesserviceunderacharteror contractperplanepertrip. SupplyChainManagement: Theintegrationofthesupplier,distributor,andcustomerlogisticsrequirementsintoonecohesiveprocessto

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includedemandplanning,forecasting,materialsrequisition,orderprocessing,inventoryallocation,order fulfillment,transportationservices,receiving,invoicing,andpayment. SupplyChain(s): Agroupofphysicalentitiessuchasmanufacturingplants,distributioncenters,conveyances,retailoutlets, peopleandinformationwhicharelinkedtogetherthroughprocesses(suchasprocurementorlogistics)inan integratedfashion,tosupplygoodsorservicesfromsourcethroughconsumption. supplywarehouse: Awarehousethatstoresrawmaterials;acompanymixesgoodsfromdifferentsuppliersatthewarehouseand assemblesplantorders. surcharge: Anaddonchargetotheapplicablecharges;motorcarriershaveafuelsurcharge,andrailroadscanapplya surchargetoanyjointratethatdoesnotyield110percentofvariablecost. switchengine: Arailroadenginethatisusedtomoverailcarsshortdistanceswithinaterminalandplant. switchingcompany: Arailroadthatmovesrailcarsshortdistances;switchingcompaniesconnecttwomainlinerailroadstofacilitate throughmovementofshipments. system: Asetofinteractingelements,variable,parts,orobjectsthatarefunctionallyrelatedtoeachotherandforma coherentgroup. systemsconcept: Adecisionmakingstrategythatemphasizesoverallsystemefficiencyratherthantheefficiencyofeachpart. tallysheet: Aprintedformonwhichcompaniesrecord,bymakinganappropriatemark,thenumberofitemstheyreceiveor ship.Inmanyoperations,tallysheetsbecomeapartofthepermanentinventoryrecords. tandem: Atruckthathastwodriveaxlesoratrailerthathastwoaxles. tankcars: Railcarsdesignedtohaulbulkliquidorgascommodities. taperingrate: Aratethatincreaseswithdistancebutnotindirectproportiontothedistancethecommodityisshipped. tareweight: Theweightofthevehiclewhenitisempty. Tariff: Adocumentissuedbyacarriersettingforthapplicablerules,rates,andchargesforthemovementofgoods. Thedocumentsetsupacontractofcarriagebetweentheshipper,consignee,andcarrier.Ininternationaltrade applications,thetermalsorefers 52

TariffService: Thetypeofservicerequired,suchasHousetoHouse,PiertoPier,PiertoHouse,etc. temporaryauthority: TemporaryoperatingauthorityasacommoncarriergrantedbytheICCforupto270days. Tender: Arequestforspaceandequipmentwithamotorcarrier. Terminal: Alocationorfacilityforthehandlingand/ortemporarystorageofcargoasitisloaded/unloadedortransferred betweenenterprises. terminaldeliveryallowance: Areducedratethatacarrieroffersinreturnfortheshipperorconsigneetenderingorpickingupthefreightat thecarrier'sterminal. TerminalOperator: Theenterpriseresponsiblefortheoperationoffacilitiesforoneormoremodesoftransportation. TerminalPass: Adocumentprovidedtothedeliveringcarrierbytheterminaloperatortoallowadmissionintotheoperator's facility. TerminalReceipt: Adocumentusedtoacceptmaterialsorequipmentataterminal.Thisprovidesthedeliveringcarrierwithproof ofdeliveryandtheterminalwithaverificationofreceipt. TermsofSale: Thedetailsorconditionsofatransactionincludingdetailsofthepaymentmethod,timing,legalobligations, freightterms,requireddocumentation,insurance,responsibilitiesofthebuyerandtheseller,andwhenthe buyerassumesriskfortheshipment. TermsofSaleCostandFreight(C&F): Thesellerquotesapricethatincludesthecostoftransportationtoaspecificpoint.Thebuyerassumes responsibilityforloss/damageandpurchasesinsurancefortheshipment. TermsofSaleCost,Insurance&Freight(CIF): Thepricequotethesellerofferstotransportationcharges. TermsofSaleExWorks: Thepricethatthesellerquotesappliesonlyatthepointoforigin.Thebuyertakespossessionoftheshipmentat thepointoforiginandbearsallthecostsandrisksassociatedwithtransportingthegoodstothedestination. TermsofSaleFreeAlongSide: Theselleragreestodeliverthegoodstothedockalongsidetheoverseasvesselthatwillcarrytheshipment. Thesellerpaysthecostofgettingtheshipmenttothedock.Thebuyerisresponsibleforcontractingthecarrier, obtaining

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TermsofSaleFreeonBoard(F.O.B.)(exchangepoint): Thisexpressionwillbefollowedbyanexchangepoint.Theexchangepointindicatesthepointatwhichthe responsibility(risk)movesfromthebuyertotheseller. TermsofSaleF.O.B.Origin: Theselleragreestodeliverthegoodstothepointoforigin.Thebuyerassumesallresponsibilityandriskfrom thepointoforigin. TermsofSaleF.O.B.Port: Theselleragreestodeliverthegoodstotheportasindicatedbytheexchangepoint.Thebuyerassumesall responsibility(risk)fromtheportasindicatedbytheexchangepoint. TermsofSaleF.O.B.Destination: Theselleragreestodeliverthegoodstothedestinationpoint.Thebuyerassumesallresponsibility(risk)atthe destinationpoint. TEU: Twentyfootequivalentunit,astandardsizeintermodalcontainer. thirdparty: Afirmthatsupplieslogisticsservicestoothercompanies. threelayerframework: Abasicstructureandoperationalactivityofacompany;thethreelayersincludeoperationalsystems,control andadministrativemanagement,andmasterplanning. ThroughBillofLading: Asinglebillofladingcoveringboththedomestic(inland)andinternationalcarriageofanexportshipment. throughput: Awarehousingoutputmeasurethatconsidersthevolume(weight,numberofunits)ofitemsstoredduringa giventimeperiod. timeutility: Avaluecreatedinaproductbyhavingtheproductavailableatthetimedesired.Transportationand warehousingcreatetimeutility. time/servicerate: Arailratethatisbasedupontransittime. timetables: Timeschedulesofdeparturesandarrivalsbyoriginanddestination;typicallyusedforpassengertransportation byair,bus,andrail. TL(truckload): Ashipmentweighingtheminimumweightormore.CarriersgivearatereductionforshippingaTLsize shipment. TOFC: SeeTrailerOnFlatCar. 54

TOFC(traileronflatcar): Alsoknownaspiggyback. tonmile: Afreighttransportationoutputmeasurethatreflectstheshipment'sweightandthedistancethecarrierhaulsit;a multiplicationoftonshauledanddistancetraveled. totalcostanalysis: Adecisionmakingapproachthatconsiderstotalsystemcostminimizationandrecognizestheinterrelationship amongsystemvariablessuchastransportation,warehousing,inventory,andcustomerservice. totalqualitymanagement(TQM): Amanagementapproachinwhichmanagersconstantlycommunicatewithorganizationalstakeholdersto emphasizetheimportanceofcontinuousqualityimprovement. Totoauthority: Aprivatemotorcarrierreceivingoperatingauthorityasacommoncarriertohaulfreightforthepublicoverthe privatecarrier'sbackhaul;theICCgrantedthistypeofauthoritytotheTotoCompanyin1978. tracing: Determiningashipment'slocationduringthecourseofamove. Tracking: Acarrier'ssystemofrecordingmovementintervalsofshipmentsfromoriginstodestinations. Trade: Atermusedtodefineageographicareaorspecificrouteservedbycarriers. TradeLane: Thecombinationoftheoriginanddestinationpoints. Trader: Anenterprisethatoperatesaforprofitbusinessarrangingforthepurchaseand/orsaleofgoods/services. TradingPartner: Anypartyeithercompanyorpersoninvolvedinthesupplychainorder,fulfillmentorshippingprocess. trafficmanagement: Thebuyingandcontrollingoftransportationservicesforashipperorconsignee,orboth. TrailerOnFlatCar(TOFC): Carriageofintermodalcontainerswhenthecontainerisstillattachedtothechassis,andbothchassisand containerareloadedonarailflatcar. tramp: Aninternationalwatercarrierthathasnofixedrouteorpublishedschedule;ashipperchartersatrampshipfora particularvoyageoragiventimeperiod. Transfer: Communicationfromonepartnertoanother.

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transitprivilege: Acarrierservicethatpermitstheshippertostoptheshipmentintransittoperformafunctionthatchangesthe commodity'sphysicalcharacteristics,buttostillpaythethroughrate. transittime: Thetotaltimethatelapsesbetweenashipment'sdeliveryanditspickup. TransmittalLetter: Aletterfromtheshippertoitsagentthatliststheparticularsofashipment,thedocumentsbeingtransmitted, andinstructionsforthedispositionofthosedocuments. Transport: SeeTransportation. Transportation(TransportorCarriage): Themovementofgoodsfromoneplacetoanother. TransportationAssociationofAmerica: AnassociationthatrepresentstheentireU.S.transportationsystemcarriers,users,andthepublic;now defunct. transportationmethod: Alinearprogrammingtechniquethatdeterminestheleastcostmeansofshippinggoodsfromplantsto warehousesorfromwarehousestocustomers. transportationrequirementsplanning(TRP): UtilizingcomputertechnologyandinformationalreadyavailableinMRPandDRPdatabasestoplan transportationneedsbasedonfielddemand. TransportationResearchBoard: AdivisionoftheNationalAcademyofScienceswhichpertainstotransportationresearch. TransportationResearchForum: A professional association that provides a forum for the discussion of transportation ideas and research techniques. TransportationServices: Servicesofferedbythetransportprovider. Transshipment: Theshipmentofmerchandisetothepointofdestinationinanothercountryonmorethanonevesselorvehicle. Theliabilitymaypassfromonecarriertothenext,oritmaybecoveredbyThroughBillsofLadingissuedbythe firstcarrier. transshipmentproblem: Avariationofthelinearprogrammingtransportationmethodthatconsidersconsolidatingshipmentstoone destinationandreshippingfromthatdestination. travelagent: Afirmthatprovidespassengertravelinformation;air,rail,andsteamshipticketing;andhotelreservations.The carrierandhotelpaythetravelagentacommission. 56

trunklines: Oilpipelinesusedforthelongdistancemovementsofcrudeoil,refinedoil,orotherliquidproducts. TSA: TransPacificStabilizationAgreement. TwentyfootEquivalentUnit(TEU): Usedtomeasureavessel'scapacitybasedonthenumberoftwentyfootcontainersthevesselcancarry. twobinsystem: Aninventoryorderingsysteminwhichthetimetoplaceanorderforanitemisindicatedwhenthefirstbinis empty.Thesecondbincontainssupplysufficienttolastuntilthecompanyreceivestheorder ubiquity: Arawmaterialthatisfoundatalllocations. ULD:

SeeUnitLoadDevice. umbrellarate: AnICCratemakingpracticethatheldratestoaparticularleveltoprotectanothermode'straffic. UNECE: UnitedNationsEconomicCommissionforEurope. UniformWarehouseReceiptsAct: Theactthatsetsforththeregulationsgoverningpublicwarehousing.Theregulationsdefineawarehouse manager'slegalresponsibilityanddefinethetypesofreceiptsheorsheissues. UnitLoadDevice(ULD): Referstoairfreightcontainersandpallets. unittrain: Anentire,uninterruptedlocomotive,car,andcaboosemovementbetweenanoriginanddestination. UnitedStatesRailwayAssociation: TheplanningandfundingagencyforConrail;createdbythe3RActof1973. unitize: Toconsolidateseveralpackagesintooneunit;carriersstrap,band,orotherwiseattachtheseveralpackages together. UrbanMassTransportationAdministration: AU.S.DepartmentofTransportationagencythatdevelopscomprehensivemasstransportsystemsforurban areasandforprovidingfinancialaidtotransitsystems. ValuationCharges: Transportationchargestoshipperswhodeclareavalueofgoodshigherthanthevalueofthecarriers'limitsof liability.

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valueofservicepricing: Pricingaccordingtothevalueoftheproductthecompanyistransporting;thirddegreepricediscrimination; demandorientedpricing;chargingwhatthetrafficwillbear. variablecost: Acostthatfluctuateswiththevolumeofbusiness. vendor: Afirmorindividualthatsuppliesgoodsorservices;theseller. vendormanagedinventories(VMI): Acustomerservicestrategyusedtomanageinventoryofcustomerstolowercostandimproveservice. Vessel: Afloatingstructuredesignedfortransport. VesselManifest:

Alistofallcargoesonavessel. vonThunen'sbelts: Aseriesofconcentricringsaroundacitytoidentifywhereagriculturalproductswouldbeproducedaccordingto vonThunen'stheory. Voyage: Thetripdesignation(traderouteandorigin/destination)identifier,usuallynumericallysequential. VSA: VesselSharingAgreement. Warehouse: Astoragelocationforgoods. warehousing: Thestorage(holding)ofgoods. waterwayusetax: Apergallontaxassessedbargecarriersforwaterway Waybill: Anonnegotiabledocumentpreparedbyoronbehalfofthecarrieratthepointofshipmentorigin.Thedocument showspointoforigin,destination,route,consignor,consignee,descriptionofshipment,andamountchargedfor thetransportservice. weightbreak: TheshipmentvolumeatwhichtheLTLchargesequaltheTLchargesattheminimumweight. WeightUnitQualifier: Theunitofmeasurethattheuserwantstoseeforweight.

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weightlosingrawmaterial: Arawmaterialthatlosesweightinprocessing. Wharfage: Thechargesassessedbypierpersonnelforthehandlingofincomingoroutgoingcargo. workinprocess(WIP): Partsandsubassembliesintheprocessofbecomingcompletedassemblycomponents.Theseitems,nolonger partoftherawmaterialsinventoryandnotyetpartofthefinishedgoodsinventory,mayconstitutealarge inventorybythemselvesandcreateextraexpenseforthefirm. WPA: Withparticularaverage.SeeMarineCargoInsurance zoneofrateflexibility: RailroadsmayraiseratesbyapercentageincreaseintherailroadcostindexthattheICCdetermines;the railroadscouldraiseratesby6percentperyearthrough1984and4percentthereafter. zoneofratefreedom: Motorcarriersmayraiseorlowerratesby10percentinoneyearwithoutICCinterference;iftheratechangeis withinthezoneoffreedom,therateispresumedtobereasonable. zoneofreasonableness: Azoneorlimitwithinwhichaircarriersmaychangerateswithoutregulatoryscrutiny;iftheratechangeiswithin thezone,thenewrateispresumedtobereasonable. Theconstantpriceofaproductatallgeographiclocationswithinazone.

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