term of sale defining who is to incur transportation charges for the shipment,
who is to control the shipment movement, or where title to the goods passes to
the buyer; originally meant "free on board ship."
A profit level that enables a carrier to realize a rate of return on
investment or property value that the regulatory agencies deem acceptable for
that level of risk.
The value of the carrier's property; the calculation basis has included
original cost minus depreciation, replacement cost, and market
See Free Along
See Full Container
The federal agency that administers federal safety
regulations governing air transportation.
Regulatory agency responsible for rates and practices
of ocean carriers shipping to and from the United States.
Forty-foot equivalent unit, a standard size intermodal
A warehouse that stores goods on the goods' owner's property while the
goods are under a bona fide public warehouse manager's custody. The owner uses
the public warehouse receipts as collateral
for a loan.
The percentage of order items that the picking operation actually
last stopping point for a shipment.
An equipment-leasing arrangement that provides the lessee with a means of
financing for the leased equipment; a common method for leasing motor carrier
Motor carriers must have bodily injury and property damage
(not cargo) insurance of not less than $500,000 per incident per vehicle; higher
financial responsibility limits apply for motor carriers transporting oil or
Goods Inventory (FGI):
The products completely manufactured, packaged, stored, and
ready for distribution.
In a DRP or MRP
system, a planned order whose status has been updated to a fixed
Costs that do not fluctuate with the business volume in the short
Quantity Inventory Model:
A setup wherein a company orders the
same(fixed) quantity each time it places an order for an item.
A railcar without sides, used for hauling
Materials handling devices that include hand trucks and
identifier associated with the air equipment (plane). Typically a combination of
two letters, indicating the airline, and three or four digits indicating the
number of the voyage.
A storage method where product is presented to picking operations at one
end of a rack and replenished from the opposite end.
A carrier that provides transportation service to the public on a fee
A site sanctioned by the U.S. Customs
Service in which imported goods are exempted from duties until withdrawn for
domestic sale or use. Such zones are used by commercial warehouses or assembly
A machine-powered device used to raise and lower freight and to move
freight to different warehouse locations.
Forwarder's Bill of
The value the production process creates in a good by changing the item's
See Consolidator's Bill of Lading.
Free of Particular
Average. See Marine
Free Along Side
Free of Particular
The seller agrees to deliver the goods to the dock
alongside the overseas vessel that is to carry the shipment. The seller pays the
cost of getting the shipment to the dock; the buyer contracts the carrier,
obtains documentation, and assumes all responsibility from that point forward.
Free on Board (F.O.B.) (exchange
This expression follows an exchange point. The exchange
point indicates the transition of responsibility (risk) from the buyer to the
seller. See also Terms of Sale. For example: F.O.B. Origin The seller agrees to
deliver the goods to the point of origin.
The period of
time allowed for the removal or accumulation of cargo before charges become
See Foreign Trade
transported from one place to another.
Freight Alongside Ship:
The point of embarkment chosen by the buyer, from where a carrier transports
goods. Under this designation, a seller is obligated to pay the cost and assume
all risks for transporting goods from a place of business to the FAS point.
invoice for payment of transport services rendered.
established for transporting freight.
freight and charges to be paid by the consignee.
enterprise that provides services to facilitate the transport of shipments.
Services can include documentation preparation, space and equipment reservation,
warehousing, consolidation, delivery, clearance, banking and insurance services,
and agency services. The forwarder may facilitate transport by land, air, ocean,
or may specialize in one mode of transport. Also called Forwarder or Foreign
The freight forwarder industry association.
freight and charges to be paid by the consignor.
quotation from a carrier or forwarder covering the cost of transport between two
An approach to rate making whereby the ante is
based only upon the shipment weight and distance; widely used in TOFC
See Full Truck Load.
See Foreign Trade
Zone and Free Trade
Container Load (FCL):
A term used when goods occupy a whole
Same as Full Container Load, but in reference to
motor carriage instead of containers.
An equipment-leasing arrangement that includes a variety of services to
support the leased equipment; a common method for leasing motor carrier
communication link between two (or more) entities which is normally maintained
The variable cost associated with a particular output unit
plus a common cost allocation.