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TLI Logistics Glossary

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TLI Logistics Glossary FOB (free-on-board) point TLI Point at which ownership of freight changes hands from shipper to Logistics Glossary consignee. FOB- origin indicates that consignee owns the goods in transit; Shipper/consignor FOB-destination indicates that shipper An individual or firm that sends freight. owns goods in transit. Owner of goods A freight originator. in transit is liable for loss and damage to freight, and thus should provide Consignee insurance. An individual or firm to whom freight is shipped. A freight receiver. Freight FOB terms-of-sale Indicates (1) Who arranges for Carrier transport and carrier, (2) Who pays for A firm that provides transportation transport, (3) Where/when does title services, typically owning and (ownership) of goods transfer from operating transportation equipment. seller to buyer (FOB point). Freight Examples include: trucking company, charges: collect, prepaid, prepaid and railroad, airline, steamship line, charged back. Collect: Buyer pays the parcel/express company. freight charges. Prepaid: seller pays. Prepaid and charged back: seller Freight bill-of-lading (freight bill) prepays, bills buyer for the charges. A document providing a binding contract between a shipper and a Loss and damage carrier for the transportation of freight, Loss or damage of freight shipments specifying the obligations of both while in transit or in a carrier-operated parties. Serves as a receipt of freight by warehouse. Terms for the handling of the carrier for the shipper. Usually claims are usually stipulated in the designates the consignee, and the FOB freight bill. Shippers/consignees point. usually take out insurance against L&D with premiums a function of the value of goods shipped, and the likelihood of L&D. Taylor Logistics: 9756 International Blvd. Cincinnati, OH 45246 Private carrier equipment; uses to transport freight Owned and operated by a shipper. to/from consolidation facilities. Also Usually refers to private trucking fleets. provide other shipping services: Components include: vehicle fleet, packaging, temporary freight storage, drivers, maintenance equipment. Often customs clearing. more expensive than contracting out, but not always. Can serve special Transportation broker needs: fast, high-ontime-reliability An agency that obtains negotiated delivery; special equipment; special large-volume transportation rates from handling; availability. carriers, and resells this capacity to shippers. Unlike freight forwarders, will Common carrier not handle freight and owns no A for-hire carrier providing pickup/delivery equipment or storage transportation services to the general facilities. public. Obligations: to serve, to deliver, to charge reasonable rates, to avoid NVOCC discrimination. Previously regulated in Nonvessel-operating common carrier. the United States; most are now Owns no vessels (ships), but provides deregulated. Examples: Parcel/express ocean shipping freight-forwarding carriers (United Parcel Service (UPS), services. Provides consolidated, FedEx), LTL trucking (Yellow, negotiated-rate services for ocean and Consolidated Freightways, Roadway), inland water carriers. Often will affliate TL trucking (Hunt, Schneider), Rail with freight forwarders to provide carrier (Norfolk Southern), Air carriers pickup/delivery, other services. (Delta, Flying Tigers), Ocean carrier (SeaLand, American President Lines Shippers association (APL) ). Not-for-profit association of shippers using collective bargaining and freight Freight forwarder consolidation to obtain lower, high- An agency that receives freight from a volume transportation rates; similar to shipper and then arranges for freight forwarding w/o profit motive. transportation with one or more Avoids premium charges paid to carriers for transport to the consignee. forwarders. Only non-competitive Often used for international shipping. shippers may associate, due to Will usually consolidate freight from monopoly restrictions. many shippers to obtain low, large- volume transportation rates from carriers (through a contract ). Often owns some pickup and delivery Taylor Logistics: 9756 International Blvd. Cincinnati, OH 45246 Integrators Consolidation Companies that provide door-to-door Bringing together many small domestic and international air freight shipments, often from different service. Own and operate aircraft, as shippers, into large shipment well as ground delivery fleets of trucks. quantities, in order to take advantage In contrast, freight-hauling airlines of economies of scale in transportation (e.g., Delta) typically do not provide costs. In-vehicle consolidation is when door-to-door service. a vehicle makes pickups from many customers and consolidates freight 3PL inside the vehicle. Out-of-vehicle A third-party, or contract, logistics consolidation occurs at a terminal company. A firm to which logistics facility; shipments to a single services are outsourced. Typically customer/region are consolidated handles many of the following tasks: before shipment. purchasing, inventory management/warehousing, Hub-and-spoke transportation management, order A transportation system design in management. which large hub terminals are used for freight consolidation. Medium-volume Interline shipment services serve the spoke-to-hub Shipment moving from origin to collection and hub-to-spoke destination via two or more carriers. distribution tasks. Large-volume Occurs frequently in rail transportation: services are operated in the hub-to- for example, each rail container hub markets. In most systems, all moving from Atlanta to Los Angeles is outbound/inbound freight for a spoke moved interline, using for example uses the same hub, and thus larger CSX and Union Pacific with an interline shipment sizes are realized. Many junction in New Orleans. transportation systems oriented in this way. Examples: Delta airlines, FedEx, LTL, and now ocean shipping. Not TL, however. Taylor Logistics: 9756 International Blvd. Cincinnati, OH 45246 Cross-dock LCL (less-than-container-load) Transportation terminal in which An ocean-shipping and intermodal received items transferred directly from industry term; LTL equivalent in inbound to the outbound shipping container shipping. Container freight dock, with storage only occurring stations at ports serve as consolidation temporarily during unloading and and deconsolidation terminals. loading. No long-term storage is Historically, LCL also stands for less- provided. Usually used only for vehicle than-carload. Before the prominence of transfers. Often owned and operated interstate trucking, railroads offered by large shippers. Examples: Home less-than-carload (LCL) service but this Depot, food service companies, hub business has largely disappeared. passenger airports. Freight size Dead-head Freight is most often measured by its A portion of a transportation trip in weight, and transportation vehicles of which no freight is conveyed; an empty varying sizes typically have weight move. Transportation equipment is capacities that cannot be exceeded often dead-headed because of due to engineering or regulatory imbalances in supply and demand. For reasons. Freight may also be measured example, many more containers are by cube, which generally refers to the shipped from Asia to North America volume of the freight. A vehicle is said than in reverse; empty containers are to cube-out if it does not exceed its therefore dead-headed back to Asia. weight capacity, but its volume is completely full. Reefer FCL (full container-load) A refrigerated container. For long An ocean-shipping and intermodal storage in transit (or in ports) must be industry term; a full container-load plugged into a ship’s power system (or shipment is when a shipper contracts port’s). Temporary power units can be for the transportation of an entire attached that last for 18-36 hours. container. The vast majority of intermodal and ocean freight is contracted in this manner. Historically, FCL also stands for full carload which is the primary business of all modern railroads, and is the railroad equivalent of TL trucking. Taylor Logistics: 9756 International Blvd. Cincinnati, OH 45246 Switching Break-bulk cargo Switching is a railroad term denoting Cargo in-between bulk and the local movement of freight rail cars. containerized, that must be handled Rail cars are switched from the private piece-by-piece by terminal workers siding of a shipper to the terminal, or (stevedores). Often stored in bags or switched from the terminal to the boxes and stacked onto pallets. private siding of the consignee. (Note: Smaller lift equipment (forklifts, small a siding is a section of rail line that runs cranes) used than for containerized from a railroad’s line into an industrial cargo, but more labor intensive. facility. If an industry using rail shipping does not have a siding, they will likely Dunnag use (1) intermodal containers, or (2) Wood and packaging materials used to use a cartage service to transfer goods keep cargo in place inside a container to/from a rail terminal.) or transportation vehicle. Postponement SKU A deliberate delay in committing Stock-keeping unit. A line-item of inventory to shipment by a shipper. inventory, that is a different type or size Usually, shippers utilize postponement of good. in order to consolidate freight into larger shipments that have a lower unit Hundredweight/CWT transportation cost. 100 pounds. A common shipping weight unit. Bulk cargo Cargo that is stowed loose on Freight weight measures transportation vehicles, in a tank or Short ton (American)
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