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Glossary

INDUSTRY TERMS

ATA Carnet: A customs document used for the temporary duty-free import of certain goods into a country in lieu of the usual customs documents.
Air Waybill: A shipping document used by airtimes for air freight.
Bill of Lading: A shipping document that defines the terms of contract for the transportation of goods.
Bill-To: The party responsible for the payment of freight charges.
Broker: See Customs Broker.
COB: Confirmed on Board, a tracking status indicating the shipment is loaded on an aircraft that has departed from the origin or connection airport.
COD: Cash on Delivery, the delivery agent collects the payment for goods being transported at the time of delivery (usually payable for shipper).
Carrier: A company that provides transportation of cargo under contract.
Certificate of Origin: A document attesting to the country of origin for imported goods.
Claim: A demand made against a carrier for payment due to loss or damage.
Commercial Invoice: A document used to identify the buyer and seller of goods being transported internationally. The document contains a detailed list of contents and itemized value for use by customs.
Consignee: The person or entity named in a freight contract to whom goods have been shipped or released to.
Container: (Air) also referred to as ULD’s (Unit Load Devices). Primarily use in all-cargo and larger passenger aircraft. Aircraft containers come in a wide range of shapes and sizes.
  (Ocean) A large metal box used for shipping materials by sea. Ocean containers can also be moved by rail and truck to and from sea ports.
Country of Origin: The country where a product is originally produced or manufactured.
Customs: A government authority designated to regulate the flow of goods to & from a country including the collection of duties levied on the import & export of goods
Customs Broker: An individual or firm licensed by a government authority to represent an importer/exporter in dealing with customs. Obtains and submits all documents necessary for clearance of goods. Frequently arranges of inland transportation to and from the port origin/destination.
Customs Clearance: Refers to the process of presenting goods and documentation to a government authority requesting approval to import/export.
Declared Value: Declaring value on a carrier’s pro or air waybill is requesting additional insurance for goods beyond what the carrier offers by default. Declaring value does incur additional charges.
Detention: Detention and Detention Charges result from a shipper or consignee holding a carriers driver beyond what is considered necessary for the loading or unloading of a vehicle. Detention time is usually assessed after a predetermined amount of free time has passed. Detention is also referred to as waiting time.
Dimensional Weight: Used to establish a minimum charge per cubic measure of volume. Dimensional weight for domestic shipments by air is calculated by measuring length x width x height / 194 (in inches). This establishes a minimum weight charge of 8.9 pounds per cubic foot of volume. Other formulas are used for ground, international air and ocean shipments.
Duty / Duties: A tax levied by a government on the import or export of goods. Most often applied to the import of goods to a country. Duties are generally based on the value of the goods but other factors may be considered.
Embargo: A government or United Nations ordered ban on the import/export of certain goods to and from a specific country.
Euro: As of April 2005, the euro is the official currency of Belgium, Germany, Greece, Spain, France, Ireland, Italy, Luxembourg, the Netherlands, Austria, Portugal and Finland.
Exclusive Use: A vehicle dedicated solely to the needs of a particular shipper for the time required to complete a specific transportation requirement. Most often used for time sensitive shipments of a critical nature.
Export: The shipping of goods outside of the country for sale to a foreign entity.
Export Broker: See Customs Broker.
Export Declaration: See Shippers Export Declaration (SED).
Export License: A government issued license to export certain goods or technologies. Requirements differ greatly by country.
FAA: Federal Aviation Administration, a government agency responsible for regulating and insuring the safety of air transportation in the United States.
FAK: Freight All Kinds, a freight classification used for consolidated shipments of mixed freight classes.
FCCOD: Freight Chares Collect on Delivery, the delivery agent collects a check for the freight charges incurred by transportation to the consignee (usually payable to the carrier).
FCL: Full Container Load, a full ocean container.
GBL: A Government Bill of Lading.
Gross Weight: The total weight of a shipment including all packaging.
HAWB: House Airway Bill, a carrier’s Internal Bill of Lading. This is also referred to as the airbill number and tracking number.
JIT: Just in Time is an economic strategy employed by manufacturing companies which can greatly reduce the need for maintaining large warehouses and inventories by carefully planning the arrival of inbound raw materials to the manufacturing site.
NAFTA: The North America Free Trade Agreement was established between the government of Canada, Mexico and the United States with the goal of increasing trade and investing.
Net Weight: The total weight of a shipment before it is packed.
Order Cycle: The total time between the original placement of an order and the arrival of that order to its final destination, including production and transportation of the goods.
OFD: Out For Delivery.
OSD / OS&D: Over, Short & Damaged. A system of isolating a shipment or pieces of a shipment for further investigation due to discrepancy between the paperwork and actual pieces and/or visible damage to the shipment.
Pallet: Also referred to as a skid, a small platform used for the transportation of goods by machine. The most often constructed from wood, plastic and metal pallets are also common.
Perishable: Any freight that is subject to natural decay. Commonly refers to foodstuffs that must be refrigerated during transportation to extend the usable life of the product.
POD: Proof of Delivery is a shipment status update indicating that delivery to the final consignee has been completed.
Power of Attorney: A legal document authorizing one person or agent to act on behalf of another person or entity in legal matters such as entering into contracts and purchasing goods or services.
Quarantine: The temporary isolation of a person, cargo, ship or aircraft to prevent the spread of a suspect infectious disease, destructive parasite or some form of contamination.
SED: Shippers Export Declaration, a customs required to export goods from some countries. In the US, the SED is required for most exports exceeding $2,500 USD in total value and any export of a commodity that requires a license from the U.S. Department of State to export.
Tariff: A written contract that specifies the terms, conditions and price for the transportation or exchange of goods and services.
TSA: The Transportation Safety Administration is a U.S. government agency responsible for protecting the nation’s transportation systems to insure the safe movement of people and commerce.