Shipping terms and Chartering glossary

Term Meaning
ABC analysis Classification of items in an inventory according to importance defined in terms of criteria such as sales volume and purchase volume.
Accessibility A carrier's ability to provide service between an origin and a destination.
Accessorial charges A carrier's charge for accessorial services such as loading, unloading, pickup, and delivery.
Action message An alert that an MRP or DRP system generates to inform the controller of a situation requiring his or her attention.
Active stock Goods in active pick locations and ready for order filling.
Activity-Based Costing A method of cost management that identifies business activities performed, accumulates costs associated with these activities, and uses various cost drivers to trace costs of activities to the products.
Advanced shipment notice A list transmitted to a customer or consignor designating items shipped. May also include expected time of arrival.
Affreightment, Contract Of An agreement by an ocean carrier to provide cargo space on a vessel at a specified time and for a specified price to accommodate an exporter or importer.
Agency Fee A fee charged to the ship by the ship's agent, representing payment for services while the ship was in port. Sometimes called attendance fee.
Agency tariff A rate bureau publication that contains rates for many carriers.
Agent An enterprise authorized to transact business for, or in the name of, another enterprise.
Agglomeration A net advantage a company gains by sharing a common location with other companies.
Aggregate tender rate A reduced rate offered to a shipper who tenders two or more class-related shipments at one time and one place.
Air cargo Freight that is moved by air transportation.
Air Carrier An enterprise that offers transportation service via air.
Air taxi An exempt for-hire air carrier that will fly anywhere on demand; air taxis are restricted to a maximum payload and passenger capacity per plane.
Air Waybill A bill of lading for air transport that serves as a receipt for the shipper, indicates that the carrier has accepted the goods listed, obligates the carrier to carry the consignment to the airport of destination according to specified conditions.
Aircargo Agent An agent appointed by an airline to solicit and process international airfreight shipments.
Aircargo Containers Containers designed to conform to the inside of an aircraft. There are many shapes and sizes of containers. Aircargo containers fall into three categories: 1) aircargo pallets 2) lower deck containers 3) box type containers.
Airport and Airway Trust Fund A federal fund that collects passenger ticket taxes and disburses those funds for airport facilities.
All Water Term used when the transportation is completely by water.
All-cargo carrier An air carrier that transports cargo only
Any-quantity rate A rate that applies to any size shipment tendered to a carrier; no discount rate is available for large shipments.
Arrival Notice A notice from the delivering carrier to the Notify Party indicating the shipment's arrival date at a specific location (normally the destination).
Assignment The transfer of rights, duties, responsibilities, and benefits of an agreement, contract, or financial instrument to a third party.
Audit In reference to freight bills, the term audit is used to determine the accuracy of freight bills.
Auditing Determining the correct transportation charges due the carrier; auditing involves checking the freight bill for errors, correct rate, and weight.
Average cost Total cost, fixed plus variable, divided by total output.