LEGAL
Transformers Network, Inc. (“T.NETWORK”) dba T.NETWORK dba Phoenix International Freight Services, Inc., is a transportation intermediary which undertakes to arrange, as the agent on behalf of Customers, the transportation, handling, warehousing, entry and export of shipments through third-party carriers, warehouses and other service providers (“Services”). All Services provided by T.NETWORK to any Customer are governed by T.NETWORK’s Terms and Conditions of Service, which are available on our Terms & Conditions page.
Supply Chain
Glossary
Unlock the language of logistics with our Glossary – your key to understanding industry-related terms and acronyms in the freight and shipping world.
- 3PL (Third-Party Logistics): Entities specializing in outsourced services that span warehousing, transporting goods, and fulfilling orders fall under this category.
- 4PL (Fourth-Party Logistics): Organizations that manage a range of 3PLs, as well as optimizing technologies and resources to improve the logistics chain.
- ABC Analysis: A technique that categorizes inventory items based on their significance. ‘A’ items are the most important in terms of value, while ‘C’ items are the least.
- Access Control: In logistics, this refers to the protocols in place to regulate entry into facilities and access to specific data.
- Accessorial Charges or Fees: These are fees that come on top of the basic freight charges, commonly for services like specialized packaging or additional insurance.
- Ad Valorem Tax: This is a tax calculated on the estimated value of goods or property, as opposed to a fixed sum or quantity-based rate.
- Advance Payment: Money paid ahead of the delivery of services or goods, often to confirm a transaction.
- Advanced Manifest Rule: Guidelines necessitating that information about incoming shipments be submitted electronically prior to the goods’ arrival at a port.
- Advanced Shipping Notice (ASN): An electronic document giving detailed data about an incoming shipment, typically transmitted ahead of time.
- Air Freight: Goods shipped through air carriers, which can cover either international or domestic routes, belong to this category.
- Air Waybill (AWB): This is a paper that accompanies air-transported goods and specifies the conditions of carriage and shipment details.
- AIS (Automatic Identification System): A navigational assistance tool that furnishes data about ships for tracking and averting collisions.
- All Risk Insurance: A type of insurance coverage that safeguards against all possible types of risks, except those explicitly listed as exceptions in the policy.
- Anti-Dumping Duty: A tax applied to goods imported at prices significantly below their fair market value, often to safeguard domestic enterprises.
- Anti-Idling Technology: Systems or devices designed to cut down or remove the need for extended vehicle idling, thereby lessening fuel consumption and emissions.
- API (Application Programming Interface): It is a framework of rules and guidelines that facilitate interaction between different software systems.
- Application Programming Interface (API): Duplicate of API definition above.
- Arbitration: The process where a neutral third party decides on a dispute, and the decision is considered binding on all parties involved.
- Artificial Intelligence for Routing: Utilization of AI-driven algorithms to determine the most effective routes for goods transportation.
- Asset Turnover Ratio: This financial indicator assesses the efficiency with which a company converts its assets into sales revenue.
- Audit Trail: A time-stamped series of transactions, often maintained for the purposes of regulatory compliance or audits.
- Augmented Reality (AR) in Logistics: Using digital overlays on real-world settings to assist in logistical operations like navigating warehouses.
- Auto Rack: Rail cars engineered to accommodate and transport automobiles make up this category.
- Automated Coupling: Systems that facilitate the automatic joining of vehicles or railroad cars.
- Automated Export System (AES): A U.S. digital platform for recording Shipper’s Export Declarations, ensuring regulatory compliance and trade data accuracy.
- Automated Manifest System (AMS): a digital platform that streamlines customs clearance by electronically capturing and storing cargo data.
- Automated Sorting System: Equipment or software that classifies items according to certain criteria, like dimensions or final destination.
- Autonomous Vehicles: These are vehicles capable of navigating without human intervention, often using sensors and complex AI algorithms.
- B/L, BoL, or BOL: Alternate acronyms for the Bill of Lading, serving the same legal function for freight documentation.
- Backhaul: This refers to the return trip of a vehicle, typically a truck, that has completed its primary delivery and is now transporting goods on its way back to the point of origin.
- Balance of Trade: An economic metric capturing the difference between a country’s exports and imports, usually expressed in monetary terms.
- Barcoding: The technology where information about items is encoded in the form of a visual pattern (usually bars) that can be read by an optical scanner.
- Belly Cargo: Freight transported in the underbelly compartment of a passenger airline, as opposed to a dedicated cargo plane.
- Berth: A designated spot, usually at a dock or terminal, where ships can be anchored for loading and unloading activities.
- Big Data in Rail Logistics: Applying extensive data analytics to improve and optimize the rail shipping processes and operations.
- Big Data: Massive data sets that require specialized tools for analysis, often used in supply chain management for insights into efficiency.
- Bill of Lading: A legally binding document detailing the type, quantity, and agreed-upon conditions for the transport of goods.
- Bill of Materials (BOM): A detailed list that details all the raw materials, components, and assemblies that are required in the process of manufacturing a product.
- Binding Arbitration: A conflict resolution method where the decision from a neutral arbitrator is legally enforceable for all parties involved.
- Binding Tariff: A customs duty rate that cannot be changed without prior notification, providing a level of certainty for traders.
- Biodegradable Packaging: Packaging materials designed to naturally decompose over time, reducing environmental impact.
- Biometric Systems: Authentication methods using unique biological traits like fingerprints or iris scans, often for securing access.
- Blockchain in Logistics: Using blockchain technology to enhance supply chain transparency, tracking, and security.
- Blockchain: A digital ledger where transactions are grouped in blocks and cryptographically secure, providing tamper-proof records.
- Bonded Warehouse: A secured storage facility where goods can be kept under customs control until duties are paid or goods are exported.
- Bottleneck: A point in the supply chain where limitations cause delays or reduced throughput.
- Boxcar: A fully enclosed railcar generally used for shipping non-perishable goods.
- Break Bulk Terminal: A port facility specializing in the handling of break bulk cargo, including the loading and unloading processes.
- Break Bulk: Individual goods that are loaded and unloaded one piece at a time, as opposed to in containers or bulk.
- Breakbulk Carrier: A type of shipping company focusing on the transportation of break bulk cargo.
- Bulk Cargo: Unpackaged goods shipped in large quantities, like grain or coal, typically poured or dropped into a ship’s hold.
- Bulk Freight: The movement of unpackaged, large-quantity goods using specialized shipping methods.
- Bulk Storage: Storing goods in large quantities, typically in a loose or unpackaged form, within a designated facility.
- Bunker Adjustment Factor (BAF): A surcharge levied to offset fuel price fluctuations in maritime shipping.
- C-TPAT (Customs-Trade Partnership Against Terrorism): A voluntary program where businesses agree to implement specific security measures in return for expedited customs processing.
- Cabotage: The transport of goods or passengers between two points within the same country by a foreign carrier.
- Carbon Footprinting: The measurement and analysis of the total greenhouse gas emissions generated by an organization, product, or service.
- Carbon Offsetting: The act of investing in environmental projects to balance out the emissions generated by one’s own activities.
- Cargo Inspection: Official scrutiny of goods, often by customs authorities, to ensure they meet regulatory requirements.
- Cargo Manifest: A comprehensive list of the cargo on a ship, including quantity and type of goods.
- Cargo Screening: The process of inspecting cargo to ensure it meets security and safety regulations.
- Carrier Procurement: A series of steps to select and contract with a shipping service, usually involving evaluations based on price, reliability, and capability.
- Cash Against Documents (CAD): A transaction where the buyer pays for goods upon receipt of shipping documents, often through a bank.
- CCTV (Closed-Circuit Television): Surveillance technology employing cameras to transmit footage to a specific set of monitors.
- CDL (Commercial Driver’s License): A specialized license allowing the holder to operate large commercial vehicles.
- Center of Gravity: The point where the weight of a load is evenly distributed, crucial for stable transport.
- Centralized Traffic Control (CTC): A management system governing the movement and routing of trains from a central location.
- Certificate of Origin (COO): An official document confirming the source country of goods for customs or trade purposes.
- CFR (Cost and Freight – Incoterms 2020): Here, the seller arranges and covers the cost of shipping and transport to the destination port specified by the buyer. Nevertheless, the buyer assumes the risk once the goods are loaded onto the ship.
- Chain of Custody: A record of all parties that have possessed or controlled an item, essential for security and legal integrity.
- Chargeable Weight: Weight or volume metric that is a key factor in shipping charges.
- CIF (Cost, Insurance, and Freight – Incoterms 2020): Similar to CFR, except that the seller also arranges and pays for insurance coverage of the goods during transit. Risk shifts to the buyer as the goods are loaded onto the vessel.
- CIP (Carriage and Insurance Paid To – Incoterms 2020): This is an extension of CPT, where the seller also provides and pays for insurance. Despite this, the risk is transferred to the buyer when the goods are given to the initial transporter.
- Circular Economy: An economic model aiming for waste minimization and resource optimization by reusing and recycling products.
- Circular Supply Chain: A supply chain designed to incorporate recycling and reusing products and materials.
- Clean Bill of Lading: A shipping document stating that the goods have been received in an acceptable condition.
- Click-and-Collect: A retail model where consumers acquire products online, picking them up later at a physical location.
- Cold Chain Logistics: Specialized logistics for items that need to be kept at a specific temperature.
- Cold Chain Packaging: Packaging solutions designed to maintain temperature-sensitive goods during transit.
- Cold Storage: Facilities capable of storing perishable items at low temperatures.
- Collect Freight: Freight costs to be paid by the receiver or consignee upon delivery.
- Commercial Invoice: An itemized bill for goods shipped, typically required for customs clearance.
- Compliance Auditing: A formal review ensuring an organization’s adherence to regulatory guidelines.
- Compound Tariff: A customs duty comprising both a fixed and a variable component.
- Consequential Loss: Secondary damages arising indirectly from a primary loss, often not covered by standard insurance.
- Consignee: The individual or entity designated to receive shipped goods.
- Consignment Note: A document accompanying a shipment outlining terms and conditions as well as goods details.
- Consignor: The person or entity responsible for shipping goods.
- Consolidation: Merging smaller shipments into larger ones for cost-effective transport.
- Container Crane: Specialized machinery designed to load and unload shipping containers from vessels.
- Container Freight Station: A facility where goods are loaded into or unloaded from containers.
- Container Seal: A security device used to deter and detect unauthorized access to shipping containers.
- Contingency Planning: Preparing for unforeseen events that might disrupt operations, especially in logistics.
- Contribution Margin: The per-unit revenue remaining after subtracting variable costs, generally used for internal profitability assessment.
- Control Towers: Centralized hubs providing real-time data and analytics to manage complex supply chains.
- Core Carrier: A preferred shipping company with which a business has a long-term relationship.
- Countervailing Duties: Taxes on imported goods designed to offset subsidies provided by the exporter’s country.
- CPT (Carriage Paid To – Incoterms 2020): In this term, the seller covers the expense of transporting the goods to a pre-determined destination. However, the buyer takes on the risk once the goods are handed over to the first carrier.
- Crisis Communication: Processes for conveying critical information during emergencies or disruptions.
- Cross-Docking: The direct transfer of goods from an incoming vehicle to an outgoing one, minimizing storage time.
- Crowdsourced Delivery: Utilizing a network of independent couriers for shipping, often coordinated through a digital platform.
- Cubiscan: Technology that automatically measures and weighs items for shipping calculations.
- Currency Risk: The financial risk arising from fluctuating currency exchange rates.
- Customer Relationship Management (CRM): A platform or software for managing interactions and relations with customers.
- Customs Audit: Formal examination of a company’s customs documentation and procedures for compliance.
- Customs Broker: A professional trained in customs regulations, aiding companies with import and export procedures.
- Customs Clearance: The process of passing goods through a country or territory’s customs for import or export, following all legal requirements.
- Customs Declaration: An official document that outlines the nature, quantity, and value of goods being imported or exported.
- Customs Union: An agreement between countries allowing free trade among themselves and a unified external tariff.
- Customs Valuation: Determining the monetary value of imported goods for assessing duties and taxes.
- Dangerous Goods Declaration: Document detailing the nature and quantity of hazardous materials being transported.
- Dangerous Goods: Items classified as hazardous and subject to special handling regulations.
- DAP (Delivered At Place – Incoterms 2020): The seller takes on the obligation of delivering the goods to a specified place, prepared for unloading at the destination. While the seller bears all costs and risks until arrival, they are not responsible for unloading.
- Data Lake: A large repository of raw data, often used for big data analytics.
- Data Warehousing: Storing data in a structured manner, often to facilitate business intelligence activities.
- Day-Definite: A shipping option that guarantees delivery on a specified day but not at a specific time.
- DDP (Delivered Duty Paid – Incoterms 2020): In this arrangement, the seller undertakes to deliver the goods to the buyer at a designated place, taking care of all duties, costs, and risks. The goods are provided cleared for import, and the seller assumes all obligations until delivery is complete.
- Deadhead: The operation of a commercial vehicle with no cargo or passengers, typically on a return trip.
- Deadweight Loss: Economic inefficiency resulting in loss of potential welfare or value.
- Deadweight Tonnage (DWT): The maximum weight a ship can safely carry, including cargo, fuel, and crew.
- Deck Load: Cargo transported on the open deck of a ship, as opposed to inside containers.
- Deferment Account: An account where import duties and taxes can be temporarily deferred.
- Delivery Note: A document confirming the successful delivery of a shipment.
- Delivery Window: The timeframe within which delivery of goods is expected.
- Demurrage Invoice: A bill specifying charges incurred for demurrage.
- Demurrage: Fees levied for extended use of transportation equipment or facilities.
- Derailment Detection Systems: Technologies for identifying train derailments, often for safety measures.
- Detention & Demurrage Fairness Act: Legislation aimed at standardizing fees and practices related to detention and demurrage.
- Detention Fee: A charge imposed for retaining a shipping container past the allowed time.
- Detention: Fees for holding shipping containers beyond the agreed-upon time.
- Digital Rail Ecosystem: Digital technologies integrated into rail infrastructure for enhanced efficiency and safety.
- Digital Twins: Virtual replicas of physical systems used for simulation and analysis.
- Dimensional Weight: A pricing method based on an item’s volume rather than actual weight.
- Dispatch Window: The designated period within which goods are scheduled to be dispatched.
- Dispatch: The act of sending goods or vehicles to a specific location.
- Dispatcher: An individual coordinating the movement of vehicles and goods in logistics operations.
- Dispute Resolution: Mechanisms for resolving disagreements, often through negotiation or legal means.
- Distributed Power System: A system where locomotive units are dispersed throughout a train, improving operational efficiency.
- Distribution Center: A specialized facility where goods are processed and then shipped to retailers or end-users.
- Dock Receipt: A document confirming the reception of cargo at a shipping dock.
- Documentary Credit: Financial instruments guaranteeing payment to a seller, usually through a banking institution.
- Door-to-door: A service delivering goods from the sender’s premises directly to the recipient’s location.
- Double-Stack: Arranging two containers on a rail or sea freight one atop the other to maximize space.
- DPU (Delivered At Place Unloaded – Incoterms 2020): Previously recognized as DAT, under this term, the seller not only delivers the goods to a specific place but also unloads them. All the risks and costs up to this point are borne by the seller.
- Draft: A written order instructing a bank to pay a certain sum of money to a named person.
- Drayage Fee: Charges for short-distance hauling of cargo, often within a port or terminal.
- Drayage: Short-haul transportation of goods, typically from a port to a warehouse.
- Drone Delivery: Autonomous or remotely piloted aerial vehicles used to transport smaller packages.
- Drop-Shipping or Dropshipping: A method where retailers don’t keep products in stock but instead transfer orders and shipment details to manufacturers or wholesalers, who then ship the products directly to the customers.
- Dry Port Demurrage: Fees charged for the extended stay of containers at an inland terminal or dry port.
- Dry Van: A sealed trailer that safeguards goods from elements but isn’t temperature-controlled.
- Dunnage: Materials such as wood or air pillows used to secure cargo during transit.
- Duty Drawback: A refund of import duties when goods are later exported or meet specific conditions.
- Dwell Time: The time goods spend in a terminal waiting for next-phase transport.
- Dynamic Pricing in Rail Freight: Real-time adjustment of rail freight costs based on fluctuating market conditions.
- Dynamic Pricing: Variable pricing models that adjust according to supply and demand factors.
- Dynamic Routing: Real-time adjustment of delivery routes due to variables like traffic and weather.
- E-freight: A paper-free freight system that relies on digital documents.
- EOQ (Economic Order Quantity): A formula-based approach that determines the optimal order quantity to minimize both ordering and holding costs.
- Economies of Scale: Cost benefits achieved by increasing production or service volume.
- EDI: Electronic transfer of structured data between organizations, often for business transactions.
- ELD (Electronic Logging Device): Digital tools that record driving hours for commercial drivers.
- Electronic Data Interchange (EDI): Digital exchange of business documents between trading partners.
- Electronic Proof of Delivery (ePOD): Digital confirmation of goods receipt, often captured on a mobile device.
- Emission Standards: Government-set limits on pollutant levels released from vehicles.
- Emission-Free Locomotives: Train engines that operate without emitting greenhouse gases.
- End-to-End Solution: A comprehensive service covering all aspects of a logistics operation, from origin to destination.
- Enterprise Resource Planning (ERP): Software for managing various business processes in an integrated manner.
- Environmental Tariffs: Taxes levied on imports or exports based on their environmental impact.
- ERP (Enterprise Resource Planning): Integrated software solutions to manage a business’s operations and resources.
- Escalation Process: Procedures to resolve issues that couldn’t be solved at the initial stages.
- Escalation Tariff: A progressive pricing system that increases rates over time or based on conditions.
- Expedite Fee: Additional charges for fast-tracking a shipment.
- Expedited Services: Quick or priority shipping services, often at a premium cost.
- Export Control: Government regulations restricting the export of specific goods or technology.
- Export Entry Costs: Costs associated with exporting goods, including documentation and regulatory compliance.
- Export License: A legal permit to export designated goods or services.
- EXW (Ex Works – Incoterms 2020): Under this term, the seller’s responsibility is limited to making the goods accessible for pick-up at their premises or another designated location. The buyer then takes full responsibility for any risks, costs, or logistical considerations from that moment forward.
- Fallback Clause: A provision in contracts for alternative arrangements if initial conditions aren’t met.
- FAS (Free Alongside Ship – Incoterms 2020): In this term, the seller places the goods adjacent to the vessel at a specific port that both parties have agreed upon. Upon completion of this task, the buyer assumes full control over costs and risks.
- FCA (Free Carrier – Incoterms 2020): The seller delivers the goods at a location that has been pre-agreed upon, and these goods are cleared for export. From that point, the carrier selected by the buyer takes custody of the goods, and the buyer assumes all subsequent responsibilities.
- FCL: Stands for Full Container Load, indicating that one shipper owns all items in a container.
- Feeder Service: Secondary shipping services that move goods to a larger transport hub.
- FEU (Forty-foot Equivalent Unit): A unit of measurement in container shipping, referring to a standard 40-foot container.
- FIFO (First In, First Out): A storage and inventory practice where the first items in are the first to be used or sold.
- First Mile: The initial phase of a supply chain, often from the manufacturer to the first storage facility.
- Fiscal Representation: A situation in which an entity represents another for tax purposes in a foreign country.
- Fixed Assets: Long-term, tangible assets used in the operation of a business.
- Flammable Goods: Items prone to catching fire under certain conditions.
- Flat Rack Container: Containers with open sides and ends, often used for oversized or awkward cargo.
- Flatbed: A type of open truck or trailer with a level bed and no sides or roof.
- FMC (Federal Maritime Commission): The U.S. government agency overseeing ocean-borne international transportation.
- FOB (Free On Board – Incoterms 2020): With FOB, the seller’s task is to ensure that the goods are safely loaded onto the vessel at the departure port. Risk and responsibility transfer to the buyer the moment the goods are onboard.
- Force Majeure: Legal term for unforeseen circumstances preventing contract fulfillment.
- Fourth Party Logistics (4PL): Outsourced logistics services that not only manage the supply chain but also other aspects of the business.
- FPA (Free of Particular Average): A type of marine insurance offering limited coverage, usually only for large losses.
- FRA (Federal Railroad Administration): U.S. agency responsible for enforcing rail safety regulations.
- Free Time: The period during which demurrage fees are not charged on stored goods.
- Free Trade Zone (FTZ): Specific areas where goods can be imported, stored, and re-exported without customs duties.
- Freeboard: Vertical distance that separates the waterline from the deck level of a ship, affecting its load-carrying capacity.
- Freight Agent: A person or company that arranges freight shipments but does not take ownership of the goods.
- Freight All Kinds (FAK): A pricing strategy that groups diverse items under a single freight classification.
- Freight Audit: A thorough examination of freight bills to ensure accuracy and completeness.
- Freight Broker: Intermediary between shipper and carrier that facilitates transportation arrangements.
- Freight Claim: A legal claim filed to recover losses due to damaged or lost freight.
- Freight Class: A system of standardized classification for commodities being shipped, affecting the freight rate.
- Freight Collect: A shipping arrangement where the recipient pays the shipping costs upon delivery.
- Freight Forwarder: A firm that arranges the transport of goods across various carriers and modes.
- Freight Matching: The process of aligning cargo with an appropriate transport medium, ensuring efficient and cost-effective movement.
- Freight Prepaid: Shipping costs are paid by the shipper before the goods are transported.
- Freight Rate Volatility: Fluctuations in the cost of transporting goods due to various market factors.
- FTA (Free Trade Agreement): An international or inter-territorial treaty that eliminates or reduces trade barriers, such as tariffs, between countries.
- Fuel Surcharge: Additional fees added to shipping costs to cover fluctuating fuel prices.
- Full Truckload (FTL): A shipment that fills an entire truck, often more cost-effective for large quantities.
- GATT (General Agreement on Tariffs and Trade): A treaty aimed at reducing trade barriers and tariffs. Replaced by WTO in 1995.
- General Average: A maritime principle where all parties share the loss equally if cargo is jettisoned to save the vessel.
- General Cargo: Items shipped in various forms but not in bulk, often requiring individual handling.
- Geo-Fencing in Rail Yards: Utilizing geo-fencing technology to monitor and manage rail equipment within a yard.
- Geo-fencing: Use of GPS to define geographical boundaries and trigger specific actions when crossed.
- Global Trade Management: Coordinated oversight of international trade operations, including compliance with import/export regulations and documentation.
- Goods in Transit: Items actively being moved from the origin to the destination point.
- Green Logistics: Sustainable practices within logistics aimed at reducing environmental impact.
- Harmonized System (HS) Code: A standardized coding system for classifying traded products.
- Harmonized Tariff Code: Codes used internationally for calculating import duties.
- HAZMAT: An abbreviation for hazardous materials, substances that pose risks to health, safety, or property.
- High Cube: Containers taller than standard ones, offering more space for cargo.
- High-Bay Storage: Storage systems that maximize vertical space by stacking items high above ground.
- High-Value Cargo: Goods that are costly and often require additional security measures during transport.
- Hopper Car: A railcar with a bottom discharge commonly used for bulk commodities like coal or grain.
- Hotshot: Expedited freight services using smaller vehicles for quicker delivery.
- Hours of Service (HOS): Regulations governing the working hours of commercial drivers.
- HS Code: Also known as Harmonized System Code, it’s used for classifying traded goods.
- Hub-and-Spoke: A distribution model where goods are funneled through a central hub before final delivery.
- IATA (International Air Transport Association): Organization providing guidelines and regulations for the airline industry.
- Import Duty: A tax imposed on imported goods, calculated based on the item’s value or other criteria.
- Import Entry Costs: All expenses related to bringing goods into a country, such as duties and administrative fees.
- Import License: A permit required for bringing certain goods into a country.
- Import Quota: A limit on the quantity of a specific product that can be imported into a territory within a given period.
- Incoterms: A set of international rules defining the responsibilities of both parties (buyers and sellers) in international trade. Its most recent version is Incoterms 2020.
- Indemnity Clause: A contract provision where one party agrees to compensate the other for specific potential losses.
- Inland Terminal: A facility where goods are received for further transport, located away from coastal ports.
- Insulated Container: A temperature-controlled container used for perishable or temperature-sensitive goods.
- Integrated Carrier: A logistics provider offering multiple services, often under a single tracking and billing system.
- Intermodal Container: Containers designed for use across various modes of transport without unloading.
- Intermodal Freight: Goods transported using more than one mode of transportation.
- Intermodal Services: Logistical services facilitating the transport of intermodal containers.
- Intermodal: Using multiple forms of transport to move goods from origin to destination.
- Inventory Management System (IMS): Software that tracks and manages goods, often in real-time.
- Inventory Shrinkage: The discrepancy between recorded and actual stock, often due to loss, theft, or error.
- Inventory Turnover: A metric quantifying how often a company’s stock is sold and replenished over a given timeframe.
- Inventory Turnover Ratio: A measure used to quantify a firm’s effectiveness in managing its stock. It indicates the number of times inventory is sold or consumed in a specified period.
- IoT (Internet of Things): Network of physical objects equipped with sensors, connected to the internet.
- IoT in Logistics: Utilizing IoT technology to optimize various logistics processes.
- ISPM 15: International standards for treating wood packaging to prevent the spread of pests.
- Just In Time (JIT): An inventory management approach aiming for timely order fulfillment without excess stock.
- Key Performance Indicator (KPI): Metrics employed for assessing the effectiveness of processes or actions in business operations.
- Know Your Customer (KYC): Verification processes to identify customers, required for compliance reasons, often in financial sectors.
- Landed Cost: The total financial sum incurred to bring goods to a customer, including shipping, duties, and handling fees.
- Lane Analysis: Evaluation of shipping routes to optimize cost, time, and reliability.
- LIFO (Last In, First Out): A method of inventory valuation where the most recently acquired items are consumed or sold first, leaving the older stock at hand.
- Last-Mile Delivery: The last phase of a delivery process, where goods are moved from a local distribution center to the end user.
- Laytime: Specified time for loading or unloading cargo at a port without additional charges.
- LCL (Less than Container Load): A shipment that doesn’t fill an entire container, typically combined with other consignments.
- Lead Time: The duration from when an order is placed until it’s received by the customer.
- Lean Logistics: A management approach focusing on waste reduction and streamlined operations in the logistics chain.
- Less-than-Truckload (LTL): Shipments that are too small to fill a truck but too big for parcel carriers.
- Letter of Credit (LC): A bank document assuring payment from the buyer to the seller.
- Letter of Indemnity: A guarantee to protect against potential losses or damages in transactions.
- Litigation: Legal process undertaken to resolve disputes involving the breach of laws or contracts.
- Livestock Shipping: The transportation of live animals adhering to specific safety and humane regulations.
- Load Monitoring Systems: Systems that keep track of cargo conditions such as temperature or weight during transit.
- Load Optimization: Techniques for maximally utilizing cargo space and weight capacities in vehicles.
- Locker Pickup: A service where packages are delivered to secure lockers for customer retrieval.
- Logistics Coordinator: A professional responsible for overseeing and managing logistics operations.
- Logistics Hub: A centralized location where goods are received, processed, and redistributed.
- Logistics Network Design: The structuring and optimization of a supply chain, including transportation routes and storage locations.
- Logistics Service Provider (LSP): An organization specializing in the orchestration of various supply chain operations, such as warehousing, shipping, and transportation.
- Machine Learning: A form of artificial intelligence that allows systems to learn patterns and make decisions.
- Manifest Train: A type of freight train that carries a mix of different cargo types rather than focusing on one kind.
- Maritime Lien: Legal claim against a ship or its cargo to ensure payment or performance.
- Market Share: Proportion of total sales in a market that belongs to a particular company.
- Master Carton: A large box containing several smaller boxes or units of a product for shipping.
- Mediation: A conflict resolution method involving a neutral third party.
- MFN (Most Favored Nation): A status or level of treatment accorded by one state to another in trade matters.
- Milestone Updates: Regular updates on critical stages or events during a shipment’s lifecycle.
- Milk Run: A single transport run that stops at multiple locations for pickups and/or deliveries.
- MSDS (Material Safety Data Sheet): A document detailing the safety information for the handling of materials.
- Multimodal Bill of Lading: Documentation for goods transported through various means like sea, air, or land.
- Multimodal Logistics Platform: A system enabling the management of cargo across different modes of transport.
- Multimodal Transport: The use of multiple modes of transport for delivering a single shipment.
- Net Terms: The conditions under which a net payment is due for a vendor.
- Non-Binding Tariff: A rate estimate given without commitment, subject to change.
- Nuisance Tariff: A relatively low tariff meant to deter specific behaviors rather than generate revenue.
- NVOCC (Non-Vessel Operating Common Carrier): A firm that arranges ocean freight shipping but doesn’t own vessels.
- Ocean Freight: The act of shipping goods by sea via shipping containers.
- Off-Peak Hours: Times when demand for services is at its lowest, often accompanied by lower prices.
- Off-Peak Season: Periods when demand for shipping or transport services is low.
- Omnichannel Logistics: A logistics model that integrates various shopping methods available to consumers.
- On-Board Courier: A person responsible for hand-carrying sensitive or critical items on a flight.
- On-Time Performance (OTP): The frequency with which services are provided as scheduled.
- Open Account: A kind of trade arrangement in which goods are shipped before payment is due.
- Open-Top Container: A container with an open top to accommodate tall or irregularly shaped cargo.
- Order Tracking: Monitoring the progress of a shipment from origin to destination.
- Out-of-Gauge Cargo: Cargo that doesn’t fit within the standard dimensions of a container.
- Over, Short, and Damaged (OS&D): Term for discrepancies between shipped and received goods.
- Packing List: A detailed document listing all items in a shipment.
- Pallet Jack: Manual or powered device for lifting and moving pallets.
- Pallet: A wooden or plastic platform on which goods are stacked for shipping.
- Palletizing: The action of loading goods onto pallets for shipping.
- Partial Load: A shipment that occupies part of a truck or container but is billed at a less-than-truckload or less-than-container rate.
- Partial Truckload: A freight shipping term for a shipment that takes up part of a truck but less than a full truckload.
- Peak Season: Periods when the demand for a service is at its highest, often accompanied by higher prices.
- Per Diem Charges: Daily charges imposed for extended use of shipping equipment.
- Periodic Inventory System: A method where inventory is physically counted at specific intervals, usually at the end of a financial period, to determine the quantity on hand.
- Perishable Cargo: Items such as food and medicine that must be transported under specific conditions.
- Perpetual Inventory System: A method where inventory quantities are updated in real-time after every transaction, providing a continuous record of inventory levels.
- Physical Distribution: The tangible process of storing and moving goods along the supply chain.
- Pick and Pack: The process of picking items from inventory and packing them for shipment.
- Political Risk: The risk of financial loss in international business due to political instability.
- Port Demurrage: Fees incurred for keeping containers at a port beyond the free time.
- Port of Departure: The port from which goods are exported or shipped out.
- Port of Entry: The location where imported goods enter a country and undergo customs inspection.
- Positive Train Control (PTC): A set of specific criteria designed for tracking and directing the motion of railway vehicles.
- Pre-clearance: The act of fulfilling all customs requirements before arriving at a destination country.
- Predictive Analytics: Use of historical data for predicting future events, often enabled by machine learning.
- Predictive Maintenance: Maintenance based on predicting when machinery or equipment is likely to fail.
- Preferential Tariff: Reduced tariff rates applied to goods from certain countries.
- Preferred Supplier: A supplier given priority status due to reliability, quality, or other factors.
- Prepaid Freight: A shipment for which the sender has paid the freight charges in advance.
- Private Warehouse: Storage premises exclusively owned and operated by a single organization for its own needs.
- Project Cargo: Specialized freight shipping of oversized or high-value pieces of equipment.
- Project Freight: Logistics activities specifically designed for the movement of project cargo.
- Proof of Concept (POC): Preliminary validation of a business idea or model, usually conducted through a pilot or test project.
- Proof of Delivery (ePOD): Electronic confirmation that a shipment has been received.
- Proof of Delivery (POD): Documented confirmation of cargo receipt.
- Protectionist Tariff: A tariff designed to protect local industries from foreign competition.
- Public Warehouse: A shared storage facility where various clients can rent space on a short-term basis.
- Quality Assurance (QA): Systematic activities for ensuring the quality of products or services.
- Quality Control Checkpoints: Specific stages where quality is checked during production or service.
- Quality Control Points (QCP): Points in the logistics chain where the quality of goods is verified.
- Quarantine: Isolation or restriction on the movement of goods or people for health reasons.
- Quay: A landing or platform for loading and unloading ships.
- Rail Demurrage: Charges for detaining railcars beyond a specified period.
- Rail Freight Forwarder: A third-party logistics provider for shipping goods via railway.
- Rail Freight Optimization: Streamlining operations and costs in rail freight transport.
- Rail Gauge: The spacing between the inner faces of two parallel rails on a railway track.
- Rail Siding: A short track connected to a railway for loading, unloading, or storing railcars.
- Rail Tariff: The schedule of charges and regulations for rail services.
- Rail Yard: An area with tracks for storing, loading, and unloading railcars.
- REACH Compliance: Adherence to regulations on chemicals in the European Union.
- Real-Time Analytics: Instantaneous data analysis and reporting for making immediate decisions.
- Real-Time Tracking: The immediate tracking of goods or equipment as they move.
- Real-Time Visibility: Instantaneous tracking and data availability concerning a shipment’s status.
- Redelivery Fee: A charge applied for resending a shipment that couldn’t be delivered initially.
- Reefer Freight: The shipping of goods requiring refrigeration.
- Reefer: A refrigerated container or truck for shipping perishables.
- Refrigerated Truck: A vehicle equipped with cooling systems for transporting perishables.
- Regenerative Braking: A braking system that converts the vehicle’s kinetic energy back into stored energy.
- Request for Proposal (RFP): Formal document soliciting submissions from potential service providers for a project.
- Request for Quote (RFQ): A standard document asking suppliers to provide pricing details for specific goods or services.
- Retaliatory Tariff: A tariff imposed in response to another country’s trade actions.
- Returns Management: The logistics processes dealing with returned goods from customers.
- Revenue Tariff: A tariff primarily intended to generate income for the government.
- Reverse Logistics: The movement of goods from their final destination back to the manufacturer for return or repair.
- Reverse Osmosis: A water purification method commonly used in shipping for desalination.
- RFID (Radio-Frequency Identification): The use of radio waves to identify, track, and manage assets, inventories, or people.
- RFID Technology: The tech systems and protocols involved in RFID-based tracking and identification.
- Risk Assessment: The identification and evaluation of risks in logistical operations.
- Robotic Loading/Unloading: The use of automated systems for loading and unloading goods.
- Robotic Process Automation (RPA): Software robots or ‘bots’ designed to automate highly routine and mundane tasks in a workflow.
- Roll-On/Roll-Off (RoRo): Ships designed for carrying vehicles driven on and off the ship.
- Rolling Stock: Vehicles such as trains, trucks, or wagons used in the transport network.
- Route Optimization: Data-driven planning to identify the most efficient and economical path for goods transport.
- Rules of Origin: Criteria used to define where a product was made, important for international trade.
- SaaS (Software as a Service): A digital service model that lets users access software through the internet instead of installing it on local devices.
- Safeguard Tariff: An emergency tariff imposed to shield domestic industries from surges in foreign imports.
- Safety Stock: The additional quantity of an item held in inventory as a safeguard against shortages due to unexpected demand or supply disruptions.
- Salvage Value: The estimated value of an asset after its useful life has ended.
- Sanitary and Phytosanitary Measures (SPS): Rules that have the goal of protecting humans, animals, and plants from diseases, pests, and contaminants in the trade of food and agricultural products.
- Scale Economies: Cost advantages achieved when production increases, often due to more efficient resource utilization.
- Seasonal Tariff: Import or export taxes that fluctuate based on the season or time of year.
- Shipment Status Codes: Alphanumeric or numerical identifiers indicating the current state of a shipped package.
- Shipper: An entity or individual that arranges and sends goods from one location to another. They manage shipment documentation and may liaise with logistics providers or carriers for transportation.
- Shipper’s Letter of Instruction (SLI): Document providing details about an export shipment.
- Short Sea Shipping: Coastal or nearby maritime freight transportation, typically not requiring open sea travel.
- Shrink Wrapping: Wrapping products in plastic film and then applying heat so that it shrinks tightly over whatever it is covering.
- Six Sigma: A data-driven methodology aimed at reducing errors to improve business processes.
- SKU (Stock Keeping Unit): Unique alphanumeric code used to identify and manage inventory items.
- SKU Proliferation: Expansion of distinct SKU numbers, often leading to increased complexity in inventory management.
- SLA (Service Level Agreement): Contract outlining service expectations and performance metrics between a service provider and client.
- Slot Charter Agreement: Contract where a portion of a vessel’s capacity is leased to another party.
- Slotting: The practice of arranging products within a warehouse to optimize space and retrieval efficiency.
- Smart Containers: Shipping containers equipped with sensors to monitor location, condition, and other variables.
- Smart Railroads: Railway systems integrated with advanced technologies for improved efficiency and safety.
- Smuggling: Illicit transport of goods or persons across borders, avoiding legal duties or detection.
- Solar-Powered Railcars: Railcars using solar energy, captured by photovoltaic panels, as a power source.
- SOLAS (Safety of Life at Sea): A maritime treaty aimed at ensuring the safety of ships and their crews.
- Specific Tariff: A fixed fee levied on goods based on their physical characteristics (e.g., weight or volume.)
- Spot Rate: The immediate, current rate charged for a service, contrasting with a contracted or future rate.
- Stevedoring: The practice of loading and unloading cargo from ships.
- Stock Keeping Unit (SKU): Unique identifier for inventory tracking, usually an alphanumeric code.
- Storage Charges: Fees incurred for keeping goods in a warehouse beyond a pre-defined period.
- Strategic Sourcing: Procurement methods focusing on long-term partnerships and value creation.
- Sunset Tariff: A tariff that decreases over time, eventually phasing out completely.
- Supply Chain Visibility: A holistic view of all activities within a supply chain, often facilitated by tracking technology.
- Tail Gate Exam: Detailed inspection of a shipment at its point of entry or exit.
- Talent Development: Strategies for nurturing and enhancing the skills of employees.
- Tamper-Evident Seal: A seal that shows visible signs of interference if tampering occurs.
- Tank Container: A large container designed for transporting liquids or gases.
- Tanker: A ship or truck designed for transporting large volumes of liquid.
- TARIC: Database detailing all applicable EU tariffs.
- Tariff Code: A numerical identifier used in classifying imported and exported goods.
- Tariff Engineering: Modifying products to benefit from specific tariff classifications.
- Tariff Exemption: A scenario where specific goods are excluded from tariffs.
- Tariff Quota: A tax rate applied to a quota of imported goods, often lower than the normal rate.
- Tariff Rate Quota (TRQ): A two-tiered tariff, with a lower rate for quantities within the quota and a higher rate for quantities exceeding it.
- Tarping: Covering cargo with tarpaulins for protection against weather conditions.
- Telematics: Technology used for monitoring a vehicle, vessel, or person, combining telecommunications with informatics.
- Temperature Logging: The process of recording temperature data over time, especially in the context of perishable goods.
- Terminal Handling Charges (THC): Fees for services performed in a terminal during the import or export of goods.
- Terminal Operating System (TOS): Software for overseeing and optimizing terminal operations, such as cargo handling and storage.
- Terms of Trade: The conditions under which trade takes place, including prices, payment methods, and delivery conditions.
- TEU (Twenty-foot Equivalent Unit): Standard measurement for shipping containers, based on a 20-foot-long container’s capacity.
- Third-Country Export: Shipping goods from one country to another via a third nation.
- Third-Party Logistics (3PL): A service where a third-party firm handles various logistics services for another company.
- Throughput Charge: A fee for the volume of goods that move through a particular facility within a specific timeframe.
- Time-Definite Freight: Shipments guaranteed to arrive by a specified time.
- Time-Definite Service: A shipping service that guarantees delivery within a specific time frame.
- TMS (Transportation Management System): Software for planning, executing, and optimizing the movement of goods.
- Total Cost of Ownership (TCO): The complete cost incurred throughout the life of a product or service, from acquisition to maintenance and disposal.
- Total Insured Value: Comprehensive insurance coverage amount for a shipment.
- Track and Trace: Technologies for monitoring the movement and condition of shipments in real time.
- Trade Association: An organization founded to support businesses in a specific industry.
- Trade Diversion: When trade shifts from a low-cost country to a high-cost country due to tariffs or other trade barriers.
- Trade Remedy: Actions taken to rectify trade disadvantages from unfair practices.
- Transit Hub: A central location where different transportation modes converge for the transfer of goods or passengers.
- Transit Insurance: Insurance that covers goods while they are in transit from their origin to their destination.
- Transit Time: The total time taken for goods to move from the point of origin to their destination.
- Transloading: The process of moving goods from one mode of transport to another during their journey.
- Transportation Spend: Total expenses incurred for moving goods, including freight charges and ancillary costs.
- Transporter Cargo Receipt (TCR): Documentation confirming that a carrier has received goods and intends to ship them as agreed.
- Transshipment: The rerouting of cargo during its journey, often involving changing the mode of transport.
- Transtainer: Mobile crane for shifting containers between modes of transport.
- Trucking Wait Fee: Fee charged for truck waiting time during operations.
- Truckload Brokerage: A service that facilitates full-truckload shipping by connecting shippers with trucking companies.
- TTW: Dutch permit allowing movement of goods under customs oversight
- Turnaround Time: The total time taken to complete a process or transaction.
- Twistlock: A mechanism used to secure containers in place on a container ship.
- Two-Bin System: An inventory control system where two bins or containers of inventory are used. When the first bin is emptied, reordering is initiated, and items are used from the second bin until the first is refilled.
- ULD (Unit Load Device): A container used to hold and transport cargo on aircraft.
- Underwriting: The process of evaluating the risks involved in insuring a particular entity or asset.
- Unit Train: A freight train with cars carrying a single type of commodity, going from the point of origin to the point of destination without being split up.
- Utilization Rate: The ratio of current output to maximum potential output, used to measure efficiency.
- Value-Added Services: Additional offerings that augment the core shipping or logistics service, such as packaging, labeling, or assembly.
- Variable Costs: Costs that fluctuate depending on the volume of goods produced or services rendered.
- Vendor Assessment: The evaluation of a supplier’s performance, reliability, and suitability.
- Vendor Rating: A system for scoring a vendor’s performance based on various criteria.
- Vendor-Managed Inventory (VMI): Inventory management where the supplier controls and replenishes inventory at the customer’s location.
- Volume Rate: Pricing model where costs are determined by the bulk or amount of cargo.
- Vulnerability Assessment: The process of identifying potential weaknesses in logistics or security protocols.
- Warehousing: The act of storing goods in a facility (warehouse), usually for an extended period.
- Warranty Recovery: The process of claiming reimbursement from manufacturers for faulty products under warranty.
- Waybill (WB): A legal document detailing information about a shipment.
- Waypoint: A predefined coordinate or location on a shipping route that aids in navigation and planning.
- Weighted Average Cost: An aggregated average of all costs, weighted by the frequency or volume of each component.
- Wharfage: Fees charged for the use of a wharf for loading or unloading ships.
- White Glove Service: Specialized shipping services offering extra care, such as setup or installation.
- White Glove Services: Premium logistical services, often including unpacking, installation, and inspection.
- Wire Transfer: An electronic funds transfer from one party to another.
- World Trade Organization (WTO): International organization aiming to regulate international trade.
- WTO Tariff Schedules: Lists of tariffs agreed upon by World Trade Organization member countries.
- Yard Management: Overseeing activities in a shipping yard to optimize space and efficiency.
- Yard Storage: Area where containers are stored before loading or after unloading.
- Yield Management: Strategies to optimize pricing or capacity to maximize revenue or efficiency.
- Zero Tariff: A trade condition where goods can be imported or exported without any tax.
- Zero-Emission Terminal: A shipping terminal operating solely on renewable energy, emitting no pollutants.
- Zero-Emission Vehicle (ZEV): A vehicle that does not emit exhaust gases or pollutants during operation.
- Zone Rate: Cost of shipping to specific geographic areas.
- Zone Skipping: The practice of consolidating shipments and skipping intermediate stops to decrease transit times and costs.
