Logistics Terms Glossary

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GLOSSARY OF LOGISTICS TERMS O - Z
These explanations are only a helpful guideline -- not a legal or definitive resource.

O P Q R S T U V W X Y Z   A - D    E - N

O

Ocean Bill of Lading: The bill of lading issued by the ocean carrier to its customer.

Ocean Carrier:  An enterprise that offers service via ocean (water) transport.

Offer:  See Tender.

on-line receiving: A system in which computer terminals are available at each receiving bay and operators enter items into the system as they are unloaded.

Open Policy:  See Marine Cargo Insurance.

Operating Differential Subsidy (ODS): A payment to an American-flag carrier by the U.S. government to offset the difference in operating costs between U.S. and foreign vessels.

operating ratio: A measure of operating efficiency defined as Operating expenses divided by the Operating revenues x 100.

Order:  A type of request for goods or services.

order cycle time: The time that elapses from placement of order until receipt of order. This includes time for order transmittal, processing, preparation, and shipping.

Order Cycle: The time spent and the activities performed from the time an order is received to the actual delivery of the order to a customer.

Order Fill: A measure of the number of orders processed without stockouts, or the need to back order, expressed as a percentage of all orders processed in the distribution center or warehouse.

order picking: Assembling a customer's order from items in storage.

order processing: The activities associated with filling customer orders.

ordering cost: The cost of placing an inventory order with a supplier.

Origin:  The place where a shipment begins its movement.

OSD:  Over, Short, and Damaged.

out-of-pocket cost: The cost directly assignable to a particular unit of traffic and which a company would not have incurred if it had not performed the movement.

outsourcing: Purchasing a logistics service from an outside firm, as opposed to performing it in-house.

over-the-road: A motor carrier operation that reflects long-distance, intercity moves; the opposite of local operations.

owner-operator: A trucking operation in which the truck's owner is also the driver.

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P & D: Pickup and delivery.

Packing List: A document containing information about the location of each Product ID in each package. It allows the recipient to quickly find the item he or she is looking for without a broad search of all packages. It also confirms the actual shipment of goods on a line item basis.

pallet: A platform device (about four feet square) used for moving and storing goods. A forklift truck is used to lift and move the loaded pallet.

pallet wrapping machine: A machine that wraps a pallet's contents in stretch-wrap to ensure safe shipment.

Particular Average:  See Marine Cargo Insurance.

passenger-mile: A measure of output for passenger transportation that reflects the number of passengers transported and the distance traveled; a multiplication of passengers hauled and distancetraveled.

Payment:  The transfer of money, or other agreed upon medium, for provision of goods or services.

Payment Collection:  Obtaining money, or other agreed upon medium, for provision of goods or services.

peak demand: The time period during which customers demand the greatest quantity.

pegging: A technique in which a DRP system traces demand for a product by date, quantity, and warehouse location.

per diem: A payment rate one railroad makes to use another's cars.

permit: A grant of authority to operate as a contract carrier.

personal computer (PC): An individual unit an operator uses for creating and maintaining programs and files; can often access the mainframe simultaneously.

personal discrimination: Charging different rates to shippers with similar transportation characteristics, or, charging similar rates to shippers with differing transportation characteristics.

physical distribution: The movement and storage of finished goods from manufacturing plants to warehouses to customers; used synonymously with business logistics.

physical supply: The movement and storage of raw materials from supply sources to the manufacturing facility.

Pick-Up Order:  A document indicating the authority to pick up cargo or equipment from a specific location.

pick/pack: Picking and packing immediately into shipment containers.

picking by aisle: A method by which pickers pick all needed items in an aisle regardless of the items' ultimate destination; the items must be sorted later.

picking by source: A method in which pickers successively pick all items going to a particular destination regardless of the aisle in which each item is located.

piggyback: A rail-truck service. A shipper loads a highway trailer, and a carrier drives it to a rail terminal and loads it on a rail flatcar; the railroad moves the trailer-on-flatcar combination to the destination terminal, where the carrier offloads the trailer a

pin lock: A hard piece of iron, formed to fit on a trailer's pin, that locks in place with a key to prevent an unauthorized person from moving the trailer.

place utility: A value that logistics creates in a product by changing the product's location. Transportation creates place utility.

planned order: In DRP and MRP systems, a future order the system plans in response to forecasted demand.

PO:  See Purchase Order.

point of sale information (POS): Price and quantity data from the retail location as sales transactions occur.

police powers: The United States' constitutionally granted right for the states to establish regulations to protect their citizens' health and welfare; truck weight; speed, length, and height laws are examples.

pooling: An agreement among carriers to share the freight to be hauled or to share profits. The Interstate Commerce Act outlawed pooling agreements, but the Civil Aeronautics Board has approved profit pooling agreements for air carriers during strikes.

Port:  A harbor where ships will anchor.

port authority: A state or local government that owns, operates, or otherwise provides wharf, dock, and other terminal investments at ports.

POS:  Point of Shipment.

possession utility: The value created by marketing's effort to increase the desire to possess a good or benefit from a service.

Prepaid Freight:  Freight paid by the shipper to the carrier when merchandise is tendered for shipment that is not refundable if the merchandise does not arrive at the intended destination.

primary-business test: A test the ICC uses to determine if a trucking operation is bona fide private transportation; the private trucking operation must be incidental to and in the futherance of the firm's primary business.

private carrier: A carrier that provides transportation service to the firm that owns or leases the vehicles and does not charge a fee. Private motor carriers may haul at a fee for wholly owned subsidiaries.

private warehousing: The storage of goods in a warehouse owned by the company that has title to the goods.

Pro Forma Invoice:  An invoice, forwarded by the seller of goods prior to shipment, that advises the buyer of the particulars and value of the goods. Usually required by the buyer in order to obtain an import permit or letter of credit.

Pro-forma:  A type of quotation or offer that may be used when first negotiating the sales of goods or services. If the pro-forma is accepted, then the terms and conditions of the pro-forma may become the request.

Procurement:  The act of acquiring goods.

Product:  Something that has been or is being produced.

Product Description:  The user's description of the product.

Product ID:  A method of identifying a product without using a full description. These can be different for each document type and must, therefore, be captured and related to the document in which they were used. They must then be related to each other in context (also known as SKU, Item Code or Number, or other such name).

production planning: The decision-making area that determines when and where and in what quantity a manufacturer is to produce goods.

productivity: A measure of resource utilization efficiency defined as the sum of the outputs divided by the sum of the inputs.

profit ratio: The percentage of profit to sales--that is, profit divided by sales.

proportional rate: A rate lower than the regular rate for shipments that have prior or subsequent moves; used to overcome combination rates' competitive disadvantages.

public warehouse receipt: The basic document a public warehouse manager issues as a receipt for the goods a company gives to the warehouse manager. The receipt can be either negotiable or nonnegotiable.

public warehousing: The storage of goods by a firm that offers storage service for a fee to the public.

pull ordering system: A system in which each warehouse controls its own shipping requirements by placing individual orders for inventory with the central distribution center.

Purchase Order:  A document created by a buyer to officially request a product or service from a seller. It contains, among other things, the name and address of the buyer, the ship-to address, the quantity, product code [and expected price], requested ship or receipt date, sales and shipping terms, and other appropriate information.

purchase price discount: A pricing structure in which the seller offers a lower price if the buyer purchases a larger quantity.

purchasing: The functions associated with buying the goods and services the firm requires.

pure raw material: A raw material that does not lose weight in processing.

push ordering system: A situation in which a firm makes inventory deployment decisions at the central distribution center and ships to its individual warehouses accordingly.

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quality control: The management function that attempts to ensure that the goods or services in a firm manufacturers or purchases meet the product or service specifications.

quick response: A method of maximizing the efficiency of the supply chain by reducing inventory investment.

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Rail Carrier:  An enterprise that offers service via rail carriage.

Rail Waybill:  The bill of lading issued by rail carriers to their customers.

random access memory (RAM): Temporary memory on micro chips. Users can store data in RAM or take it out at high speeds.  However, any information stored in RAM disappears when the computer is shut off.

rate basis number: The distance between two rate basis points.

rate basis point: The major shipping point in a local area; carriers consider all points in the local area to be the rate basis point.

rate bureau: A carrier group that assembles to establish joint rates, to divide joint revenues and claim liabilities, and to publish tariffs. Rate bureaus have published single line rates, which were prohibited in 1984.

Rated Bill of Lading:  See Freight Bill.

Rates:  Established charges for the transport of goods.

reasonable rate: A rate that is high enough to cover the carrier's cost but not high enough to enable the carrier to realize monopolistic profits.

Recapture Clause: A provision of the 1920 Transportation Act that provided for self-help financing for railroads. Railroads that earned more than the prescribed return contributed one-half of the excess to the fund from which the ICC made loans to less profitable railroads. The Recapture Clause was repealed in 1933.

Receipt Location:  A location that will receive goods.

Receipt Point:  The place where cargo enters the care and custody of the carrier.

Receiver:  An enterprise that receives goods/services.

Reciprocity:  The practice by which governments extend similar concessions to each other.

reconsignment: A carrier service that permits a shipper to change the destination and/or consignee after the shipment has reached its originally billed destination and to still pay the through rate from origin to final destination.

Reed-Bulwinkle Act: Legislation that legalized common carrier joint ratemaking through rate bureaus; extended antitrust immunity to carriers participating in a rate bureau.

Reefer:  A container with a self-contained refrigeration unit, used for the transportation of perishable cargo.

reengineering: A fundamental rethinking and radical design of business processes to achieve dramatic improvements in performance.

refrigerated warehouse: A warehouse that is used to store perishable items requiring controlled temperatures.

regional carrier: A for-hire air carrier, usually certificated, that has annual operating revenues of less than $75 million; the carrier usually operates within a particular region of the country.

regular-route carrier: A motor carrier that is authorized to provide service over designated routes.

relay terminal: A motor carrier terminal that facilitates the substitution of one driver for another who has driven the maximum hours permitted.

Release Approval:  A document to advise that goods are available for further movement or action.

released-value rates: Rates based upon the shipment's value. The maximum carrier liability for damage is less than the full value, and in return the carrier offers a lower rate.

reliability: A carrier selection criterion that considers the carrier transit time variation; the consistency of the transit time the carrier provides.

reorder point: A predetermined inventory level that triggers the need to place an order. This minimum level provides inventory to meet the demand a firm anticipates during the time it takes to receive the order.

reparation: A situation in which the ICC requires a railroad to repay users the difference between the rate the railroad charges and the maximum rate the ICC permits when the ICC finds a rate to be unreasonable or too high.

Request:  An appeal for a transaction of goods/services between two enterprises.

Requested Arrival Date: The date the shipment must arrive at the destination.

Restricted Articles:  An airline term referring to a hazardous material as defined by Title 49, Code of Federal Regulations (U.S.) and Air Transport Restricted Articles Circular 6-D. Restricted articles transported domestically may be classified as dangerous goods when transported domestically may be classified as dangerous goods when transported internationally by air.

Retaliation:  An action taken by a country to restrain its imports from another country that has increased a tariff or imposed other measures that adversely affect the first country's exports.

reverse logistics: The process of collecting, moving, and storing used, damaged, or outdated products and/or packaging from end users.

right of eminent domain: A concept that, in a court of law, permits a carrier to purchase land it needs for transportation right-of-way; used by railroads and pipelines.

RO/RO:  See Roll-on/Roll-off.

roll-on-roll-off (RO-RO): A type of ship designed to permit cargo to be driven on at origin and off at destination; used extensively for the movement of automobiles.

Route:  A complete movement of a shipment from its origin to its destination by a carrier.

RRM:  Rapid Response Manufacturing.

rule of eight: Before the Motor Carrier Act of 1980, the ICC restricted contract carriers requesting authority to eight shippers under contract. The number of shippers has been deleted as a consideration for granting a contract carrier permit.

rule of ratemaking: A regulatory provision directing the regulatory agencies to consider the earnings a carrier needs to provide adequate transportation.

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safety stock: The inventory a company holds beyond normal needs as a buffer against delays in receipt of orders or changes in customer buying patterns.

Sales Order: See Customer Order.

salvage material: Unused material that has a market value and can be sold.

Schedule Information:  Data concerning the service provided by an enterprise.

scrap material: Unusable material that has no market value.

Seal Number:  The identifier assigned to the tag used to secure or mark the locking mechanism on closed containers.

Seller:  An enterprise that arranges for the supply transaction of goods/services with other enterprises.

separable cost: A cost that a company can directly assign to a particular segment of the business.

Service:  The defined, regular pattern of calls made by a carrier in the pick up and discharge of cargo.

Service Contract:  A contract between a shipper and an ocean carrier or conference, in which the shipper makes a commitment to provide a minimum quantity of cargo over a fixed time period. The ocean carrier or conference also commits to a rate or rate schedule as well as a defined service level, such as space, transit item, port rotation, or other features.

Service Levels:  A set standard of operating procedures and outcomes as agreed upon by one or more enterprises involved in a transaction.

Service Provider:  An enterprise that offers and supplies goods or services.

Service Request:  A description of a specific service provided as an interface between layers (for example: transfer data).

Service Response:  A description of the response to a specific service request that reports the success or failure of the request.

setup costs: The costs a manufacturer incurs in staging the production line to produce a different item.

ship agent: A liner company or tramp ship operator representative who facilitates ship arrival, clearance, loading and unloading, and fee payment while at a specific port.

ship broker: A firm that serves as a go-between for the tramp ship owner and the chartering consignor or consignee.

Shipment:  A shipment is a user-defined unit containing goods (single or multiple units) and requires transportation from one location to another. A shipment becomes a shipment when it leaves the consignor's location. A shipment is complete when it arrives at the consignee's destination.

Shipment Available Date:  The date the shipment will be available for transportation.

Shipment Gross Weight Qualifier: A weight qualifier for the estimated gross weight of LCL and/or FCL for a booking.

Shipment Identification: A free-text field that serves as a shipment identifier to uniquely identify a shipment to the user. This shipment ID is supplied by the user and allows loads to be consolidated into shipments.

Shipment Point:  A specific location from where goods will depart for movement.

Shipper:  An enterprise that fulfills the request for goods or services.

shipper's agent: A firm that primarily matches up small shipments, especially single-traffic piggyback loads, to permit shippers to use twin-trailer piggyback rates.

shippers association: A nonprofit, cooperative consolidator and distributor of shipments that member firms own or ship; acts in much the same way as a for-profit freight forwarder.

Shipping Instructions:  A document detailing the cargo and the requirements of its physical movement.

Shipping Point:  See Shipment Point.

short ton: 2,000 pounds.

short-haul discrimination: Charging more for a shorter haul than for a longer haul over the same route, in the same direction, and for the same commodity.

simulation: A computer model that represents a real-life logistics operation with mathematical symbols and runs it for a simulated length of time to determine how proposed changes will affect the operation.

SKU:  See Stock Keeping Unit.

sleeper team: Two drivers who operate a truck equipped with a sleeper berth; while one driver sleeps in the berth to accumulate mandatory off-duty time, the other driver operates the vehicle.

slip seat operation: A motor carrier relay terminal operation in which a carrier substitutes one driver for another who has accumulated the maximum driving time hours.

slip sheet: Similar to a pallet, the slip sheet, which is made of cardboard or plastic, is used to facilitate movement of unitized loads.

slurry: Dry commodities that are made into a liquid form by the addition of water or other fluids to permit movement by pipeline.

Society of Logistics Engineers: A professional association engaged in the advancement of logistics technology and management.

software: A computer term that describes the system design and programming that the computer's effective use requires.

Source:  A specific location or enterprise from where goods will be obtained.

Space and Equipment Reservation: A business transaction between two enterprises to arrange for services to facilitate the movement of goods via a carrier.

Space Request (Space and Equipment Request):  A business transaction between two enterprises. An enterprise that has goods to be moved will contact an entity that provides transport services to request space and equipment for an upcoming shipment. The request serves as the first action to launch a set of negotiations between the two enterprises.

Special Customs Invoice: In addition to a commercial invoice, some countries require a special customs invoice designed to facilitate the clearance of goods and the assessment of customs duties in that country.

special-commodities carrier: A common carrier trucking company that has authority to haul a special commodity; the sixteen special commodities include household goods, petroleum products, and hazardous materials.

special-commodity warehouses: A warehouse that is used to store products requiring unique facilities, such as grain (elevator), liquid (tank), and tobacco (barn).

Specific Duty:  See Duty.

spot: To move a trailer or boxcar into place for loading or unloading.

spur track: A railroad track that connects a company's plant or warehouse with the railroad's track; the user bears the cost of the spur track and its maintenance.

staff functions: The planning and analysis support activities a firm provides to assist line managers with daily operations. Logistics staff functions include location analysis, system design, cost analysis, and planning.

Stage:  The act of locating goods at a specific location to prepare for movement.

statistical process control (SPC): A managerial control technique that examines a process's inherent variability.

Status:  Information concerning the state or location of a defined item.

Steamship Conference:  A voluntary, collective, rate-making body representing member steamship lines.

Steamship Line:  A company that owns and/or operates vessels in maritime trade.

STL: Standard Two Letter (code designation for airlines).

Stocking Keeping Unit (SKU):  A method of identifying a product without using a full description.

stockless purchasing: A practice whereby the buyer negotiates a purchase price for annual requirements of MRO items and the seller holds inventory until the buyer orders individual items.

stockout: A situation in which the items a customer orders are currently unavailable.

stockout cost: The opportunity cost that companies associate with not having supply sufficient to meet demand.

stores: The function associated with storing and issuing frequently used items.

strategic planning: Looking one to five years into the future and designing a logistical system (or systems) to meet the needs of the various businesses in which a company is involved.

strategic variables: The variables that effect change in the environment and logistics strategy. The major strategic variables include the economy, population, energy, and government.

strategy: A specific action to achieve an objective.

stretch-wrap: An elastic, thin plastic material that effectively adheres to itself, thereby containing product on a pallet when wrapped around the items.

Stripping:  The unloading of cargo from a container or other piece of equipment. See Devanning.

Subsidy:  The economic benefit granted by a government to producers of goods or services often to strengthen their competitive position.

substitutability: A buyer's ability to substitute different sellers' products.

supplemental carrier: A for-hire air carrier having no time schedule or designated route; the carrier provides service under a charter or contract per plane per trip.

Supply Chain Management: The integration of the supplier, distributor, and customer logistics requirements into one cohesive process to include demand planning, forecasting, materials requisition, order processing, inventory allocation, order fulfillment, transportation services, receiving, invoicing, and payment.

Supply Chain(s):  A group of physical entities such as manufacturing plants, distribution centers, conveyances, retail outlets, people and information which are linked together through processes (such as procurement or logistics) in an integrated fashion, to supply goods or services from source through consumption.

supply warehouse: A warehouse that stores raw materials; a company mixes goods from different suppliers at the warehouse and assembles plant orders.

surcharge: An add-on charge to the applicable charges; motor carriers have a fuel surcharge, and railroads can apply a surcharge to any joint rate that does not yield 110 percent of variable cost.

switch engine: A railroad engine that is used to move railcars short distances within a terminal and plant.

switching company: A railroad that moves railcars short distances; switching companies connect two mainline railroads to facilitate through movement of shipments.

system: A set of interacting elements, variable, parts, or objects that are functionally related to each other and form a coherent group.

systems concept: A decision-making strategy that emphasizes overall system efficiency rather than the efficiency of each part.

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tally sheet: A printed form on which companies record, by making an appropriate mark, the number of items they receive or ship. In many operations, tally sheets become a part of the permanent inventory records.

tandem: A truck that has two drive axles or a trailer that has two axles.

tank cars: Railcars designed to haul bulk liquid or gas commodities.

tapering rate: A rate that increases with distance but not in direct proportion to the distance the commodity is shipped.

tare weight: The weight of the vehicle when it is empty.

Tariff:  A document issued by a carrier setting forth applicable rules, rates, and charges for the movement of goods. The document sets up a contract of carriage between the shipper, consignee, and carrier. In international trade applications, the term also refers

Tariff Service:  The type of service required, such as House to House, Pier to Pier, Pier to House, etc.

temporary authority: Temporary operating authority as a common carrier granted by the ICC for up to 270 days.

Tender:  A request for space and equipment with a motor carrier.

Terminal:  A location or facility for the handling and/or temporary storage of cargo as it is loaded/unloaded or transferred between enterprises.

terminal delivery allowance: A reduced rate that a carrier offers in return for the shipper or consignee tendering or picking up the freight at the carrier's terminal.

Terminal Operator:  The enterprise responsible for the operation of facilities for one or more modes of transportation.

Terminal Pass:  A document provided to the delivering carrier by the terminal operator to allow admission into the operator's facility.

Terminal Receipt:  A document used to accept materials or equipment at a terminal. This provides the delivering carrier with proof of delivery and the terminal with a verification of receipt.

Terms of Sale:  The details or conditions of a transaction including details of the payment method, timing, legal obligations, freight terms, required documentation, insurance, responsibilities of the buyer and the seller, and when the buyer assumes risk for the shipment.

Terms of Sale - Cost and Freight (C&F):  The seller quotes a price that includes the cost of transportation to a specific point. The buyer assumes responsibility for loss/damage and purchases insurance for the shipment.

Terms of Sale - Cost, Insurance & Freight (CIF):  The price quote the seller offers to transportation charges.

Terms of Sale - Ex Works:  The price that the seller quotes applies only at the point of origin. The buyer takes possession of the shipment at the point of origin and bears all the costs and risks associated with transporting the goods to the destination.

Terms of Sale - Free Along Side: The seller agrees to deliver the goods to the dock alongside the overseas vessel that will carry the shipment. The seller pays the cost of getting the shipment to the dock. The buyer is responsible for contracting the carrier, obtaining

Terms of Sale - Free on Board (F.O.B.) (exchange point):  This expression will be followed by an exchange point. The exchange point indicates the point at which the responsibility (risk) moves from the buyer to the seller.

Terms of Sale - F.O.B. Origin:  The seller agrees to deliver the goods to the point of origin. The buyer assumes all responsibility and risk from the point of origin.

Terms of Sale - F.O.B. Port:  The seller agrees to deliver the goods to the port as indicated by the exchange point. The buyer assumes all responsibility (risk) from the port as indicated by the exchange point.

Terms of Sale - F.O.B. Destination:  The seller agrees to deliver the goods to the destination point. The buyer assumes all responsibility (risk) at the destination point.

TEU: Twenty-foot equivalent unit, a standard size intermodal container.

third party: A firm that supplies logistics services to other companies.

three-layer framework: A basic structure and operational activity of a company; the three layers include operational systems, control and administrative management, and master planning.

Through Bill of Lading: A single bill of lading covering both the domestic (inland) and international carriage of an export shipment.

throughput: A warehousing output measure that considers the volume (weight, number of units) of items stored during a given time period.

time utility: A value created in a product by having the product available at the time desired. Transportation and warehousing create time utility.

time/service rate: A rail rate that is based upon transit time.

timetables: Time schedules of departures and arrivals by origin and destination; typically used for passenger transportation by air, bus, and rail.

TL (truckload): A shipment weighing the minimum weight or more. Carriers give a rate reduction for shipping a TL-size shipment.

TOFC:  See Trailer On Flat Car.

TOFC (trailer-on-flatcar): Also known as piggyback.

ton-mile: A freight transportation output measure that reflects the shipment's weight and the distance the carrier hauls it; a multiplication of tons hauled and distance traveled.

total cost analysis: A decision-making approach that considers total system cost minimization and recognizes the interrelationship among system variables such as transportation, warehousing, inventory, and customer service.

total quality management (TQM): A management approach in which managers constantly communicate with organizational stakeholders to emphasize the importance of continuous quality improvement.

Toto authority: A private motor carrier receiving operating authority as a common carrier to haul freight for the public over the private carrier's backhaul; the ICC granted this type of authority to the Toto Company in 1978.

tracing: Determining a shipment's location during the course of a move.

Tracking:  A carrier's system of recording movement intervals of shipments from origins to destinations.

Trade:  A term used to define a geographic area or specific route served by carriers.

Trade Lane: The combination of the origin and destination points.

Trader:  An enterprise that operates a for-profit business arranging for the purchase and/or sale of goods/services.

Trading Partner: Any party either company or person involved in the supply chain order, fulfillment or shipping process.

traffic management: The buying and controlling of transportation services for a shipper or consignee, or both.

Trailer On Flat Car (TOFC):  Carriage of intermodal containers when the container is still attached to the chassis, and both chassis and container are loaded on a rail flat car.

tramp: An international water carrier that has no fixed route or published schedule; a shipper charters a tramp ship for a particular voyage or a given time period.

Transfer:  Communication from one partner to another.

transit privilege: A carrier service that permits the shipper to stop the shipment in transit to perform a function that changes the commodity's physical characteristics, but to still pay the through rate.

transit time: The total time that elapses between a shipment's delivery and its pickup.

Transmittal Letter:  A letter from the shipper to its agent that lists the particulars of a shipment, the documents being transmitted, and instructions for the disposition of those documents.

Transport:  See Transportation.

Transportation (Transport or Carriage): The movement of goods from one place to another.

Transportation Association of America: An association that represents the entire U.S. transportation system--carriers, users, and the public; now defunct.

transportation method: A linear programming technique that determines the least-cost means of shipping goods from plants to warehouses or from warehouses to customers.

transportation requirements planning (TRP): Utilizing computer technology and information already available in MRP and DRP databases to plan transportation needs based on field demand.

Transportation Research Board: A division of the National Academy of Sciences which pertains to transportation research.

Transportation Research Forum: A professional association that provides a forum for the discussion of transportation ideas and research techniques.

Transportation Services: Services offered by the transport provider.

Transshipment:  The shipment of merchandise to the point of destination in another country on more than one vessel or vehicle. The liability may pass from one carrier to the next, or it may be covered by Through Bills of Lading issued by the first carrier.

transshipment problem: A variation of the linear programming transportation method that considers consolidating shipments to one destination and reshipping from that destination.

travel agent: A firm that provides passenger travel information; air, rail, and steamship ticketing; and hotel reservations. The carrier and hotel pay the travel agent a commission.

trunk lines: Oil pipelines used for the long-distance movements of crude oil, refined oil, or other liquid products.

TSA:  Trans-Pacific Stabilization Agreement.

Twenty-foot Equivalent Unit (TEU): Used to measure a vessel's capacity based on the number of twenty-foot containers the vessel can carry.

two-bin system: An inventory ordering system in which the time to place an order for an item is indicated when the first bin is empty. The second bin contains supply sufficient to last until the company receives the order.

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ubiquity:  A raw material that is found at all locations.

ULD:  See Unit Load Device.

umbrella rate: An ICC ratemaking practice that held rates to a particular level to protect another mode's traffic.

UNECE:  United Nations Economic Commission for Europe.

Uniform Warehouse Receipts Act: The act that sets forth the regulations governing public warehousing. The regulations define a warehouse manager's legal responsibility and define the types of receipts he or she issues.

Unit Load Device (ULD):  Refers to airfreight containers and pallets.

unit train: An entire, uninterrupted locomotive, car, and caboose movement between an origin and destination.

United States Railway Association: The planning and funding agency for Conrail; created by the 3-R Act of 1973.

unitize: To consolidate several packages into one unit; carriers strap, band, or otherwise attach the several packages together.

Urban Mass Transportation Administration: A U.S. Department of Transportation agency that develops comprehensive mass transport systems for urban areas and for providing financial aid to transit systems.

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Valuation Charges:  Transportation charges to shippers who declare a value of goods higher than the value of the carriers' limits of liability.

value-of-service pricing: Pricing according to the value of the product the company is transporting; third-degree price discrimination; demand-oriented pricing; charging what the traffic will bear.

variable cost: A cost that fluctuates with the volume of business.

vendor: A firm or individual that supplies goods or services; the seller.

vendor managed inventories (VMI): A customer service strategy used to manage inventory of customers to lower cost and improve service.

Vessel:  A floating structure designed for transport.

Vessel Manifest:  A list of all cargoes on a vessel.

von Thunen's belts:  A series of concentric rings around a city to identify where agricultural products would be produced according to von Thunen's theory.

Voyage:  The trip designation (trade route and origin/destination) identifier, usually numerically sequential.

VSA:  Vessel Sharing Agreement.

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Warehouse:  A storage location for goods.

warehousing: The storage (holding) of goods.

waterway use tax: A per-gallon tax assessed barge carriers for waterway

Waybill:  A non-negotiable document prepared by or on behalf of the carrier at the point of shipment origin. The document shows point of origin, destination, route, consignor, consignee, description of shipment, and amount charged for the transport service.

weight break: The shipment volume at which the LTL charges equal the TL charges at the minimum weight.

Weight Unit Qualifier:  The unit of measure that the user wants to see for weight.

weight-losing raw material: A raw material that loses weight in processing.

Wharfage:  The charges assessed by pier personnel for the handling of incoming or outgoing cargo.

work in process (WIP): Parts and subassemblies in the process of becoming completed assembly components. These items, no longer part of the raw materials inventory and not yet part of the finished goods inventory, may constitute a large inventory by themselves and create extra expense for the firm.

WPA:  With particular average. See Marine Cargo Insurance.

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zone of rate flexibility:  Railroads may raise rates by a percentage increase in the railroad cost index that the ICC determines; the railroads could raise rates by 6 percent per year through 1984 and 4 percent thereafter.

zone of rate freedom: Motor carriers may raise or lower rates by 10 percent in one year without ICC interference; if the rate change is within the zone of freedom, the rate is presumed to be reasonable.

zone of reasonableness: A zone or limit within which air carriers may change rates without regulatory scrutiny; if the rate change is within the zone, the new rate is presumed to be reasonable.

zone price: The constant price of a product at all geographic locations within a zone.

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