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GLOSSARY OF MULTIMODAL TRANSPORT TERMS

3PL – A third-party, or contract, logistics – A flat bottomed inland cargo company. A firm to which logistics services vessel for canals and rivers with or without are outsourced. Third party logistics own propulsion for the purpose of providers typically specialize in integrated transporting goods. operation, warehousing and transportation services that can be scaled Berth – A location in a port where a vessel and customized to customers' needs based can be moored often indicated by a code on market conditions, such as the or name. demands and delivery service Break-Bulk cargo – Cargo in-between bulk requirements for their products and and containerized, which must be handled materials. piece-by-piece by terminal workers (stevedores). Often stored in bags or boxes Accompanied transport – Combined transport is said to be "accompanied" and stacked onto pallets. Smaller lift when the driver of a complete freight equipment (forklifts, small cranes) used than for containerized cargo, but more carrying road vehicle is accompanying that vehicle, while it is being transported using labour intensive. other mode of transport. Bulk cargo – Cargo that is stowed loose on Authorized Economic Operator – A party transportation vehicles, in a tank or hold without specific packaging, and handled by involved in the international movement of goods, in whatever function, that has been pump, scoop, conveyor, or shovel. approved by, or on behalf of, a national Examples: grain, coal, petroleum, Customs administration as complying with chemicals. WCO or equivalent supply chain security Bundling – When the compatible freight standards. flows of the shippers are consolidated in Backhaul – A freight movement in a space, as well as synchronized in time. direction (or lane) of secondary Bunker Adjustment Factor (BAF) – importance or light demand. Backhauls are Adjustment applied by liner conferences to preferable to deadheads by transportation offset the effect of fluctuations in the cost companies, since revenue is generated. In of bunkers. order to entice shippers to move goods in backhaul markets, carriers may offer lower Carrier – A firm that provides rates. transportation services, typically owning and operating transportation equipment.

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Co-modal – A term first used by the EU in top, flat, platform, ventilated, insulated, 2006 and refers to the intelligent use of refrigerated, or bulk. two or more modes of transport on their own and in combination to get the biggest Crane – A machine designed for moving and lifting weight by means of a movable benefit from each of them so that the overall journey is the most sustainable that projecting arm or a horizontal beam, which it can be. This optimising in the use of is able to travel over a certain distance. resources has economic, environmental Cross-dock – Transportation terminal in and societal benefits. which received items are transferred directly from inbound to the outbound CO2 – Carbon dioxide. shipping dock, with storage only occurring Cohesion Fund (CF) – Aimed at Member temporarily during unloading and loading. States who’s Gross National Income (GNI) No long-term storage is provided. Usually per inhabitant is less than 90 % of the EU used only for vehicle transfers. Often average, to reduce economic and social owned and operated by large shippers. disparities and to promote sustainable Deadhead – The return of an empty development. transportation container to its point of Commonwealth Independent States (CIS) origin (empty move). – A regional organisation, formed during the breakup of the Soviet Union, whose Deadweight – The number of long tons participating countries are former Soviet that a vessel can transport of cargo, supplies and fuel. It is the difference Republics. between the number of tons of water a Consignment – Act of giving over to vessel displaces “light” (empty) and the another party’s charge, custody or care number of tons it displaces when any material or goods, but retaining legal submerged to the “load line”. ownership until the material or goods are Distribution Center (DC) – The warehouse sold. facility which holds inventory from Consolidation – Bringing together many manufacturing pending distribution to the small shipments, often from different appropriate stores. shippers, into large shipment quantities, in order to take advantage of economies of Door-to-Door – Transportation service scale in transportation costs. In-vehicle arrangement in which freight is moved from origin (shipper) through to ultimate consolidation is when a vehicle makes destination for a given rate. Trucking pickups from many customers and consolidates freight inside the vehicle. companies typically offer door-to-door Out-of-vehicle consolidation occurs at a service. Railroads do not, unless the shipper and consignee both have rail terminal facility, usually to a single sidings. Brokers often package together customer/region. door-to-door service through contracts Container – A single, rigid, sealed, reusable with multiple carriers. metal box in which merchandise is shipped by vessel, truck, or rail. Container types Economies of scale – The cost advantages include standard, high cube, hardtop, open that enterprises obtain due to size, output,

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or scale of operation, with cost per unit of Freight rate – A freight rate is a price at output generally decreasing with which a certain cargo is delivered from one increasing scale as fixed costs are spread point to another. The price depends on the out over more units of output. form of the cargo, the mode of transport, the weight of the cargo, and the distance Electronic Chart Display and Information to the delivery destination. System (ECDIS) – A computer-based navigation information system that Freight size – Freight is most often complies with International Maritime measured by its weight, and Organization (IMO) regulations and can be transportation vehicles of varying sizes used as an alternative to paper nautical typically have weight capacities that charts. cannot be exceeded due to engineering or regulatory reasons. Freight may also be Estimated Time of Arrival (ETA) – A measured by cube, which generally refers measure of when a , vehicle or cargo is to the volume of the freight. A vehicle is expected to arrive at a certain place. said to cube-out if it does not exceed its Estimated Time of Departure (ETD) – A weight capacity, but its volume is measure of when a ship, vehicle or cargo is completely full. expected to depart a certain location. Full-truckloads (TL/FTL) – A truckload European Regional Development Funds shipment is when the shipper contracts an (ERDF) – Fund allocated by the European entire truck for direct point-to-point Union, aimed to strengthen economic and service. Truckload shipments are priced social cohesion by correcting imbalances per mile within designated lanes, between its regions. regardless of the size of the shipment provided it fits (weight, cube) within the (Short Sea Shipping) – A ship (a vehicle. Less expensive per unit weight merchant vessel) used to carry vehicles shipped than LTL. A truckload carrier is a and cargo, operating on regular, frequent, trucking company specializing in point-to- return services. point truckload shipments.

Freight Forwarder – An agency that Game theory – The study of strategic receives freight from a shipper and then decision making, specifically of models of arranges for transportation with one or conflict and cooperation between more carriers for transport to the intelligent rational decision-makers. consignee. Often used for international shipping. Will usually consolidate freight Greenhouse Gas (GHG) – A gas in an from many shippers to obtain low, large atmosphere that absorbs and emits volume transportation rates from carriers radiation within the thermal infrared (through a contract). Often owns some range. The primary greenhouse gases in pickup and delivery equipment; uses to Earth's atmosphere are water vapour, transport freight to/from consolidation carbon dioxide, methane, nitrous oxide, facilities. Also provide other shipping and ozone. services: packaging, temporary freight Haulage – The inland transport service storage, customs clearing. which is offered by the carrier under the

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terms and conditions of the tariff and of IMDG Code is intended to protect crew the relative transport document. members and to prevent marine pollution in the safe transportation of hazardous Hinterland – A German word meaning "the materials by vessel. land behind" (a city, a port, or similar). Specifically, the term is applied to the Just in Time (JIT) – Method of inventory inland region lying behind a port, claimed control that creates the movement of by the state that owns the coast. The area material into a specific location at the from which products are delivered to a required time, i.e. just before the material port for shipping elsewhere is that port's is needed in the manufacturing process. hinterland. The technique works when each operation is closely synchronized with the Horizontal collaboration – Approach subsequent ones to make that operation characterized by independent shippers possible. pro-actively working together in clusters or communities to combine their overlapping Less-than-truckload (LTL) – When a freight flows, sharing supply chain assets shipper contracts for the transportation of for mutual benefits. freight that will not require an entire truck. LTL shipments are priced according to the Information and Communication weight of the freight, its commodity class Technology (ICT) – Refers to all the (which generally determines its technology used to handle cube/weight ratio), and mileage within telecommunications, broadcast media, designated lanes. An LTL carrier specializes management information systems, in LTL shipments, and therefore typically audiovisual processing and transmission operates a complex hub-and-spoke systems. network with consolidation and Inland Waterway Transport (IWT) – The deconsolidation points; LTL carriers carry transport with via inland waterways multiple shipments for different (canals, rivers, lakes etc.) between inland customers in single trucks. ports or quays and wharfs. Lift on, lift off (Lo/Lo) – A method by which Intermodal Transportation – Transporting quay cranes are used to load and unload freight by using two or more containers or generalized cargo, onto and transportation modes, such as by truck and from an ocean vessel. rail or truck and oceangoing vessel, where Liner Service – International water carriers the load is transported from an origin to a that ply fixed routes on published destination in one and the same schedules. intermodal transportation unit (e.g. a TEU1 container) without handling of the Logistics Service Providers (LSPs) – A firm goods themselves when changing modes. that provides service to its customers of outsourced (or "Third Party") logistics International Maritime Dangerous Goods services for part, or all of their supply chain Code (IMDG Code) – International management functions. See also 3PL guideline to the safe transportation or shipment of dangerous goods or Marco Polo – An EC programme that co- hazardous materials by water on vessel. funded, from 2007 to 2013, projects aimed

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to ease road congestion and the pollution hauled by one or more locomotives, form it causes by promoting a switch to greener a . transport modes for European freight River Information Systems (RIS) – Modern traffic. traffic management systems enhancing a Milk run – A round trip that facilitates swift electronic data transfer between either distribution or collection. A water and shore through in-advance and sequential collection of goods from real-time exchange of information. multiple sources and the direct service to Roll on, roll off (Ro/Ro) – A method of the customers without intermediate handling features of the goods. A ocean cargo service using a vessel with prerequisite for the milk run approach is ramps which allows wheeled vehicles to be the spatial proximity between the supplier loaded and discharged without cranes. and the customer. Rolling Highway – In rail transportation, a rolling highway, or rolling road is a form of Motorways of the Sea (MOS) – A concept in the transport policy of the European combined transport involving the Union, stressing the importance of sea conveying of road trucks by rail. transport. The main aim is to improve port Ropax – A Ro/Ro vessel built for freight communications with peripheral regions vehicle transport along with passenger of the European. The concept came about accommodation. in the White paper European transport policy for 2010: time to decide of the Semi-trailer - A trailer without a front axle, European Commission. coupled with a tractor unit for transport.

Multimodal – Freight transportation Shapley value – A solution concept in under a single contract but where a cooperative game theory. A coalition of sequence of at least two different modes players cooperates, and obtains a certain of transport is used. overall gain from that cooperation. The Shapley value provides one possible Pallet – Flat transport structure that answer to the different contribution of supports goods. A pallet is the structural each player to the overall cooperation. foundation of a unit load which allows handling and storage efficiencies. Shipper (Consignor) – An individual or firm that sends freight. Physical Internet – In logistics, is an open global logistics system founded on Skipper – Person who has command of a physical, digital, and operational boat, vessel, barge. It is used more than interconnectivity, through encapsulation, “captain” for certain types of craft such as interfaces and protocols. .

Quay – Dock in a port. Stevedoring – To load or unload a ship.

Railroad car – A vehicle used for the Stowage – The method of placing cargo carrying of cargo or passengers on a rail into a single hold or compartment of a ship transport system (also known as railcar). to prevent damage and/or shifting. Such cars, when coupled together and

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Supply chain – System of organizations, gauge – Spacing of the rails on a people, activities, information, and railway track, measured between the inner resources involved in moving a product or faces of the load-bearing rails. service from supplier to customer. Train ferry – A ship (ferry) designed to Synchro-modal – Synchro-modal freight carry railway vehicles, typically used for transportation is positioned as the next transporting across a stretch of step after intermodal and co-modal water from one railway to another. transportation, and involves a structured, Truck – A motor vehicle designed to efficient and synchronized combination of two or more transportation modes. transport cargo (called a lorry in the United Through synchro-modal transportation, Kingdom, Ireland, and Indian Subcontinent). In the EU, vehicles with a the carriers or customers select gross combination mass of up to 3,500 independently at any time the best mode based on the operational circumstances kilograms are known as light commercial vehicles, and those over as large goods and/or customer requirements. vehicles. TEN-T – Trans-European Transport Vessel – A floating structure designed for Network. transport. TEU – Twenty-foot equivalent unit. Method of measuring vessel load or Vessel Manifest – A list of all cargoes on a capacity, in units of containers that are vessel. twenty feet long. A 40’ long container World Customs Organisation (WCO) – measures 2 TEUs. Provides leadership, guidance and support Towing – Coupling two or more objects to Customs administrations to secure and together so that they may be pulled by a facilitate legitimate trade, realize revenues, protect society and build designated power source. capacity. Trailer-on- (TOFC)/Piggyback – A term used in intermodal transportation in which truck trailers or container/chassis combinations are placed directly onto rail for the rail portion of the trip. TOFC trains are generally heavier and longer per References: unit ton shipped, but have the advantage that unloaded trailers can be moved out of http://www.universalcargo.com/logistics- the intermodal terminal without worrying glossary about finding a chassis; thus, the equipment management issues are http://www.inboundlogistics.com/cms/lo simpler. gistics-glossary

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