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Knowledge Centre
3PL (Third Party Logistics Provider)
Third party logistics providers (3PLs) are service providers who perform or manage logistics services for client enterprises. 3PLs can be either asset or non-asset based and include providers of transportation management, freight forwarding, customs brokerage, warehousing, kitting/light manufacturing and distribution services. Clients, carriers and agents in the supply chain pass information to the 3PL for processing using the 3PL's systems. 3PLs typically procure and manage services on behalf of a client or 4PL.
A fourth party logistics provider (4PL) is a supply chain integrator that assembles and manages the resources, capabilities, and technology of its own organization along with those of complementary service providers (3PL's, technology service providers, etc.) to deliver a comprehensive supply chain solution.
Proceeding where a carrier seeks authorization to stop service over all or part of its route/line, or to give up ownership/control of cargo or vessel. Must be approved by the ICC in the case of motor or rail proceedings.
Shipper or consignee relinquishes damaged freight carrier or refuses to accept delivery.
The act or relinquishing title to damaged or lost property to claim a total loss.
Condition in which a carrier is responsible for all liability and is not protected by normal exemptions found in a bill of lading or common law liability.
Acknowledged receipt by consignee of a shipment, terminating the common carrier contract.
A promise to pay, usually evidenced by inscribing across the face of the bill "accepted," followed by the date, place payable, and acceptor’s signature.
Charges for supplementary services and privileges (ACCESSORIAL SERVICES) provided in connection with line-haul transportation of goods. These charges are not included in the freight charge and usually take the form of a flat fee. Some examples are: pickup/delivery, in-transit privileges, demurrage, switching, loading/unloading.
A service rendered by a carrier in addition to regular transportation service.
A Latin phrase meaning "according to value." Freight rates set at a certain fixed percentage of the value of articles are known as ad valorem rates.
Freight or charge on a shipment that is advanced by one transportation company to another, or to the shipper, to be collected from the consignee.
Notice to local or foreign buyer that shipment has occurred, with packing and routing details. A copy of invoice usually is enclosed, and sometimes a copy of the bill of lading.
Usually a carload/truckload rate that applies to multiple shipments that move at one time in one vehicle from the consignor to one consignee. An all-commodity rate is established based on actual transportation cost rather than "value of service."
Deduction from the weight or value of goods. Allowed if a carrier fails to provide necessary equipment and that equipment is furnished by the shipper.
Point of delivery beside a vessel; statement designating where the title to goods passes from one party to another.
Routing that is less desirable than the normal, but results in identical terms.
Charge in addition to regular freight charge to compensate for unusual local conditions.
Fixed amount accepted by a carrier when dividing joint rates.
A notice, furnished to consignee, of the arrival of freight.
Freight that has been separated from its freight bill.
Operating rights granted a motor carrier by the ICC.
A person or company authorized by the ICC to transport goods as a common or contract carrier.
Return transportation movement, usually at less revenue than the original move.
Movement in the direction of lighter traffic flow when traffic generally is heavier in the opposite direction.
To move a shipment back over part of a route already traveled.
A dolly-like hand truck designed specifically to move drums or barrels.
Geographic point to which transportation rates are set so that rates to adjacent points can be constructed by adding to/deducting from the basing point rate.
The principal transportation document by which a carrier acknowledges receipt of freight, describes the freight, and sets forth a contract of carriage. Terms and conditions, responsibilities, and liabilities vary with manner and place of use. Bills of lading may be negotiable or non-negotiable.
The weight shown on a freight bill.
Moving highway freight by air.
Right side of truck and trailer.
Wood or metal supports to keep shipments in place in trailers.
Tractor operating without a trailer.
A two-axle assembly at the rear of some trailers or tractors. Also called a tandem axle.
A warehouse approved by the Treasury Department and under bond/guarantee for observance of revenue laws.
Used for storing goods until duty is paid or goods are released in some other proper manner.
Heavy freight that must be loaded on the trailer floor and not on top of other merchandise.
Slang term for a trailer or container for ocean carriers. Slang term for a truck transmission.
See BLOCKING.
To unload, sort and reload some/all contents of a vehicle in transit.
To reduce a large shipment of a single commodity to many small shipments, which are then dispersed to various buyers.
A type of penalty pay which is incurred when equipment breaks down.
An agent who arranges interstate movement of goods by other carriers.
An arranger of exempt loads for owner-operators and/or carriers.
One who arranges the buying/selling of goods for a commission.
A person who leases owned equipment to a carrier.
Vessel that carries bulk commodities such as petroleum, grain, or ore, which are not packaged, bundled, bottled, or otherwise packed.
Freight not in packages or containers such as wheat, petroleum, etc.
An upright wall in a trailer or railcar that separates and stabilizes a load.
A cargo restraining partition in a vehicle or vessel.
When a seller does not pay freight charges, the purchaser has a right to designate the route for shipment. Seller is responsible for following the buyer’s instructions. Complete routing is permitted for rail shipments, but only for the first carrier in motor shipments.
Driver’s compartment of a truck or tractor.
Truck or tractor with a substantial part of the driving cab located over the engine.
A heavy steel cable used to secure closed trailer doors. It can only be removed with heavy duty cable cutters.
A trailer loaded to the legal weight limit.
A trailer loaded so that no additional piece of freight, equal to the size of the largest piece tendered, will fit into the trailer
Quantity of freight required to fill a railcar.
Specified quantity necessary to qualify a shipment for a carload rate.
An individual, partnership or company in the business of transporting goods or passengers, in most cases for a fee.
A four wheeled platform used to move several pieces of freight across the dock at one time.
The charge for pickup/delivery of goods.
The act of moving goods (usually short distances).
Information shown on the outside of a shipping carton, including destination and contents.
Seller assumes no risk and extends no credit because payment is received before shipment.
Buyer pays carrier the price of goods before they are delivered; seller assumes risk of purchaser refusing to accept goods.
Document used with letters of credit when drafts are paid/negotiated on presentation of a certificate stating that goods have been completed and are being held for shipment.
A wooden, metal, or rubber wedge used to block the wheels of a trailer at the dock. Also used in trailers to keep floor freight from shifting.
Demand on transportation company for payment due to loss/damage of freight during transit.
Demand on transportation company for refund on overcharge.
Demand by an individual/company to recover for loss under insurance policy.
The rate charged for commodities grouped according to similar shipping characteristics. Class Rate applies to numbered/lettered groups/classes of articles contained in the territorial rating column in classification schedules.
Two shipments from different terminals combined to ship as one load.
Shipment where collection of freight charges/advances is made by delivering carrier from the consignee/receiver.
Truck or tractor coupled to one or more trailers (including semi-trailers).
Itemized list issued by seller/exporter in foreign trade showing quantity, quality, description of goods, price, terms of sale, marks/numbers, weight, full name/address of purchaser, and date.
Any article of commerce. Goods, merchandise.
One that may be transported in interstate commerce without operating authority or published rates.
A special (usually lower) rate for specific types of goods (usually exempt commodities).
A rate lower than class rates, established to cover the movement of a specific customer’s freight or for a specific group of customers.
Any carrier engaged in the interstate transportation of persons/property on a regular schedule at published rates, and whose services are available to the general public on a for-hire basis. Regulated by the ICC.
When goods in an apparently undamaged container are damaged.
Document signed by carrier and filed with the ICC. Verifies carrier participates in rates published in a tariff by a given agent.
A carrier that originates or completes transportation of a shipment, but does not haul it the entire distance from origin to destination.
Send goods to a purchaser or an agent to sell.
Any person who receives goods shipped from an owner.
Any person or company that ships articles to customers.
Combining less-than-carload or less-than-truckload shipments to make carload/truckload movements.
Using box-like device to store, protect, and handle a number of packages as a unit of transit.
Shipping system based on large cargo-carrying containers that can be interchanged between trucks, trains, and ships without re-handling contents.
Any carrier engaged in interstate transportation of persons/property by motor vehicle on a for-hire basis, but under continuing contract with one or a limited number of customers to meet specific needs of each customer. Contract Carriers must receive an authorization permit from the ICC.
Rates which are part of a total contract negotiated between shipper and a carrier.
Tractor with the engine in front of the cab.
The basis for quotation by seller that indicates seller will pay insurance and freight charges to destination only.
Transfer of freight from one trailer to another at a terminal.
A rate based on trailer space instead of weight. Used for light, bulky loads.
A specialist in customs procedures who acts on behalf of importers for a fee. Licensed by the Treasury Department.
A schedule of charges assessed by the government on imports/exports.
Non-powered rear axle on tandem truck or tractor (also called "tag axle").
Estimated number of tons of cargo a vessel can carry when loaded to maximum depth.
A trailer moving empty.
A shipment moving without charges.
A ride-along driver.
Assumed value of shipment unless shipper declares higher value.
Stating lower value on a shipment to get a lower rate.
Carrier returns a portion of freight charges to shipper. In exchange, shipper gives all/most shipments to carrier over specified period, usually six months. Rebate payment is deferred for similar period.
Penalty for exceeding free time, usually 48 hours, allowed for loading/unloading under terms of railroad/ocean and motor carrier traffics.
The weight of an article per cubic foot.
A charge made for a vehicle held by, or for, consignor or consignee for loading, unloading or for forwarding directions.
Amount added to/deducted from base rate to make rate to/from some other point or via another route.
Difference in rates not justified by costs.
A change made in consignee, destination, or shipment route while in transit.
The floor or platform where trucks load and unload.
Metal plate used to bridge the space between a trailer and a dock platform.
A single-axle piece of trailing equipment used to hook two trailers together.
A non-motorized, two-wheeled hand truck for moving freight around the dock.
The various federal agencies that regulate the operation of motor vehicles and motor vehicle equipment.
Refund of customs duties paid on material imported and later exported.
Transporting freight by truck, primarily in local cartage.
The axle(s) which are connected to the engine by a drive shaft and power the vehicle. Also called "power axle."
Refers to a shipment for which the driver must collect freight charges at the time of delivery.
A 28-foot trailer designed to be pulled two or three at a time by one tractor. Also referred to as a "pup" or "doubles."
Term used for cardboard, empty pallets, plywood, foam rubber, air bags, or other items used to cushion or protect freight while in transit.
A local terminal which handles the pick-up and delivery of the customer’s freight (as opposed to a consolidation center). Also referred to as a "satellite" or "group" terminal.
A shortage, overage, or damage to a shipment.
A notation of such conditions on a freight bill, bill of lading or unloading checksheet.
For-hire motor carrier exempt from ICC economic regulation.
Moving shipments through regular channels at an accelerated rate.
When importer has arranged with bank for letter-of-credit financing of purchases, he applies for issuance of individual letters of credit to cover purchase contracts as made.
Warehouse term meaning first items stored are the first used.
Government publication that prints rules/regulations of federal agencies daily.
In intermodal moves, a pickup/delivery vehicle or ship.
Transporting motor carrier trailers and containers by ship.
Freight costs paid to the destination point, title transfers at destination.
Title to goods and transportation responsibility transfers from seller to factory.
Title/transportation costs transfer after goods are delivered on vessel. All export taxes/costs involved in overseas shipments are assessed to the buyer.
Condition in contract that relieves either party from obligations where major unforeseen events prevent compliance with provisions of agreement.
Goods subject to duty may be brought into such zones duty-free for transshipment/storage/minor manipulation/sorting. Duty must be paid when/if goods are brought from a zone into any part of the U.S.
Mechanical vehicle used to move freight on the dock. Also known as lift-truck, towmotor, or hi-lo.
A firm specializing in shipping goods abroad. Payments made for insurance and other expenses are charged to the foreign buyer.
A shipment that is mis-routed or unloaded at the wrong terminal and is billed and forwarded to the correct terminal free of charge.
Selling term in international trade. Selling party quotes price including delivery of goods alongside overseas vessel at exporting port.
Loaded aboard carrier’s vehicle at point where responsibility for risk/expense passes from seller to buyer.
The period freight will be held before storage charges are applied. The period allowed for the owner to accept delivery before storage charges begin to accrue.
1) An individual/company that accepts less-than truckload (LTL) shipments and consolidates them into truckload lots on a for-hire basis.
2) An agent who helps expedite shipments by preparing the necessary documents/making other arrangements for moving freight.
The point at which freight is interchanged/interlined between carriers or at which a carrier joins two operating authorities provision of through service.
Storage of goods in custody of government/bonded warehouse or carrier from whom goods can be taken only upon payment of taxes/duties to appropriate government agency.
Passing freight from one carrier to another between lines.
Freight moving from origin to destination over two or more transportation lines.
Using more than one mode to deliver shipments. For example, rail or ocean vessel carriage of tractor-trailer containers.
Exchanging goods between buyers and sellers in two or more states.
The federal body charged with enforcing acts of Congress affecting common carriers in interstate commerce. Directly responsible to Congress.
When all business between buyers/sellers is carried on within state.
Agreed upon by two or more carriers, published in a single tariff, and applying between point on line of one and point on line of another. May include one or more intermediate carriers in route.
An in-bound manufacturing strategy that smoothes material flow into assembly and manufacturing plants. JIT minimizes inventory investment by providing timely, sequential deliveries of product exactly where and when it is needed, from a multitude of suppliers. Traditionally an automotive strategy, it is being introduced into many other industries.
Total expense of receiving goods at place of retail sale, including retail purchase price and transportation charges.
Accounting method of valuing inventory that assumes latest goods purchased are first goods used during accounting period.
A load weighing less than the amount necessary to apply the carload rate charged by railroads.
Less than the quantity of freight required to apply the truckload rate charged by motor carriers.
Party or company with legal possession/control of vehicle (with/without driver), or other equipment owned by another under terms of lease agreement.
Party or company granting legal use of vehicle (with/without driver), or other equipment to another party under terms of lease agreement.
A method of paying for goods, where the buyer establishes credit with a local bank, clearly describing the goods to be purchased. Upon receipt of documentation, the bank is either paid by the buyer or takes title to goods and transfers funds to the seller.
Mechanical vehicle used to move freight on the dock. Also known as a fork-lift, towmotor, or hi-lo.
Movement of freight between cities that are usually more than 1,000 miles apart, not including pickup and delivery service.
The weight in pounds loaded onto a trailer.
A term used loosely to describe the "compactness" or over "good usage" of trailer space.
A tariff provision which provides an allowance, usually a fixed sum per hundredweight, to a shipper for loading a carrier’s trailer.
Equivalent to 2,240 pounds or 20 long hundredweights. Also called gross ton.
A control document used to list the contents (individual shipments) during loading and from which the contents are checked during unloading.
System of manufacturing controls using computers. Affects purchasing, materials management, inventory control, and production management.
Refers to the combination of light, medium and heavy density freight.
Act of Congress bringing motor common and contract carriers under ICC jurisdiction.
Act of Congress that deregulated for-hire-trucking.
See INTERMODAL TRANSPORTATION.
A publication for motor carriers containing rules, commodity descriptions, and classifications for nearly all shippable commodities.
Weight of article without packing and container.
Weight of entire contents of vehicle.
A cargo consolidator of small shipments in ocean trade, generally soliciting business and arranging for/performing containerization functions at the port.
On arrival of freight at destination, notice is sent promptly to the consignee showing number of packages, description of articles, route, rate, weight, etc.
Points located off regular route highways of line-haul carriers, generally served only on irregular schedules.
Routes, points, and types of traffic that may be served by carrier. Authority is granted by state or federal regulatory agencies.
Comparison of carrier’s operating expenses with gross receipts; income divided by expenses.
A report issued at the warehouse when goods are damaged. Used to file a claim with the carrier.
Freight in excess over quantity believed to have been shipped, or more than quantity shown on shipping document.
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