Shared Flashcard Set

Details

Cook Exam 3
Final Exam
258
Marketing
Undergraduate 4
12/11/2012

Additional Marketing Flashcards

 


 

Cards

Term
North American Free Trade Agreement (NAFTA)
Definition
Treaty signed by the United States, Mexico and Canada, easing import duties and encouraging trade among the three countries. Signed in 1993 and ratified by congress in 1994. The treaty states that objectives of the three countries is based on the principles of an unimpeded flow of goods, most-favored-nation (MFN) status, and a commitment to enhance the cross-border movement of goods and services.
Term
Maquiladora
Definition
A United States manufacturing or assembly operation located along the US-Mexico border or other locations specified by the Mexican Government. US raw materials and components are sent to Maquiladora where the semi-finished or finished product is manufactured or assembled.
Term
Liners
Definition
Ships that ply fixed routes on published schedules. Typically are either container or break-bulk types.
Term
Break Bulk
Definition
Ocean cargo that is not containerized but must be handled manually into and out of a ship. Saves on labor.
Term
Container
Definition
A specific type of 'box' into which freight is loaded before the shipment is given to the carrier. The container can be rectangular such as those used for rail and ocean shipments or can be shaped to fit the transport vehicle, such as an aircraft. The container avoids the need for the carrier to handle individual parts of the shipment.
Term
Lighter-Abroad Ship
Definition
A liner that carries barges that were loaded at an inland river point and moved to the ocean port via water tow. High in capital cost and decreases high stowage density.
Term
Rail On/Rail Off
Definition
A type of vessel that has ramps upon which vehicles cn be driven directly into the hold of the ship. This type of vessel is often sed to transport buses, trucks, construction machinery on wheels and other wheeled shipments.
Term
Tramp Ship
Definition
An international water carrierthat has no fixed route or published schedule; a shipper charters a ramp ship for a particular voyage or a given time period.
Term
Private Ships
Definition
Owned or leased on a long-term basis by the firm moving the goods. Mainly oil, automotive and lumber vessels.
Term
Flags of Convinience
Definition
Flying a flag that is not of your country to derive certain benefits of taxes, manning and some safety requirements by being registered in that country.
Term
Air Parcel Post
Definition
Provided by the postal service of a country and is designed to handle small packages.
Term
Express or Expedited Service
Definition
Small shipments weighing less than 70 lbs. Ex: UPS or FedEx
Term
Passenger Carriers
Definition
Movement of passengers, not freight. Ex: Delta, United, Southwest
Term
All-Cargo Carriers
Definition
Specialized in the movement of freight, not passengers Ex: UPS AIR
Term
Non-Vessel Operating Carriers
Definition
Assemble and disperse less-than-container shipments and move them as full container shipments.
Term
Consolidate
Definition
Taking small containers and combining to make one large shipment/container
Term
Land Bridge
Definition
Containers moving between Japan and Europe by rail and ship.
Term
Mini-Bridge
Definition
Used for movements from Japan to the United States.
Term
Micro-Bridge
Definition
Used for movements but it applies to interior nonport cities such as St. Louis or Wichita
Term
Incoterms
Definition
International terms of sale developed by the International Chamber of Commerce to define seller's and buyer's responsabilities. 
Term
E-Terms
Definition
Departure contract that gives the buyer total responsability for the shipment. 
Term
F-Terms
Definition
Obligate the seller to incur the cost of delivering the shipment cleared for export to the carrier designated by the buyer. The buyer selects and incurs the cost of main transportation, insurance, and customs clearance. 
Term
Free Carrier (FCA)
Definition
Can be used with any mode of transportation. Risk of damage is transfered to the buyer when the seller delivers the goods to the carrier named by the buyer. 
Term
Free Alongside Ship (FAS)
Definition
Water transportation only. Risk of damage is transfered to the buyer when the goods are delivered alongside the ship. The buyer must pay the cost of "lifting" the cargo or container on board the vessel.
Term
Free on Board (FOB)
Definition
Only used for water shipments. The risk of damage is transferred to the buyer when the shipment crosses that ships rail (when they are loaded onto the vessel). The seller pays the lifting charge. 
Term
C-Terms
Definition
Four terms that are shipment contracts that obligate the seller to obtain and pay for the main carriage and/or cargo insurance. 
Term
Cost and Freight (CFR)
Definition
Only used for water transportation. Obligate the seller to select and pay for the main carriage. The seller incurs all costs to the port of destination. 
Term
Carriage Paid To (CPT)
Definition
Obligate the seller to sellect and pay for the main carriage. Used in all modes of transportation to foreign countries. The seller incurs all costs to the port of destination. 
Term
Cost, Insurance, Freight (CIF)
Definition
Require the seller to pay for both main carriage and cargo insurance. 
Term
Carriage and insurance Paid To (CIP)
Definition
Require the seller to pay for both main carriage and cargo insurance. 
Term
D-Terms
Definition

Obligate the seller to incur all costs related to delivery of the shipment to the foreign destination. There are 5 D terms and all require the seller to incur all costs and the risk of damage up to the destination port. 

Term
Delivered at Frontier (DAF)
Definition

The seller is responsible for transportation and incurs the risk of damage to the named point at the place of delivery at the frontier of the destination country. DAF, Laredo, Texas indicates the seller is responsible for making the goods in Laredo, Texas and the buyer is responsible for customs duties and clearance into Mexico. DAF is used in ALL MODES. 

Term
Delivered Ex Ship (DES)
Definition

Used in Water transportation. Both terms require the seller to pay for the main carriage. The risk of damage is transferred when the goods are made available to the buyer on board the ship un-cleared for import at the port of destination. The buyer is responsible for customs clearance. 

Term
Delivered Ex Quay (DEQ)
Definition

Used in Water transportation. Both terms require the seller to pay for the main carriage. The risk of damage is transferred to the buyer when the goods cleared for import are unloaded onto the quay at the named port of destination. 

Term
Delivered Duty Unpaid (DDU)
Definition

Available for ALL MODES. Requires the seller to incur all cost, except import duties, the named place in the country of importation. Risk of damages passes to the buyer when the goods are made available, duties unpaid, at the named place. Similar to DES.

Term
Delivered Duty Paid (DDP)
Definition

Available for ALL MODES. Requires the seller to incur all cost, except import duties, the named place in the country of importation. Risk of damages passes to the buyer when the goods are made available, duties unpaid, at the named place. This also includes additional responsibility of clearing the goods for import and paying the customs duties. Similar to DEQ.

Term
E-Terms 
Definition
Seller pays nothing.
Term
F-Terms
Definition
Seller pays to own port.
Term
C-Terms
Definition
Seller pays to buyer port
Term
D-Terms
Definition
Seller pays it all
Term
Documentation
Definition
Global shipment movement is controlled by paper; without the proper documentation, the shipment does not move. 
Term
Export License 
Definition

Required for commodities and destinations deemed important to national security, foreign policy, and items in short supply. SALES DOCUMENT

Term
Pro-Forma Invoice
Definition

A document issued by the seller to acquaint the importer/buyer and the importing country’s government authorities with the details of the shipment. SALES DOCUMENT

Term
Consular Invoice
Definition
A specifically prepared invoice that is prescribed by the importing country for the merchandise contained in a shipment. The invoice will be written in the language of the importing country and may be required to be signed by an employee of the government of the nation to which the shipment is destined. SALES DOCUMENT
Term
Letter of Credit
Definition
A document issued by the buyer’s bank that guarantees payment to the seller if certain terms and conditions are not met. FINANCIAL DOCUMENT
Term
Draft
Definition
A type of bank transaction that insures payment for goods. FINANCIAL DOCUMENT
Term
Shipper’s Export Declaration
Definition
A document filed by the shipper/exporter or its agent with the government of the country in which the shipper/exporter resides. This form supplies the government with information about the shipment for statistical and control purposes. CUSTOMS DOCUMENT
Term
Certificate of Origin
Definition
A legal document that verifies the country where a particular product originated. This certificate must often accompany the shipment so the importing country can determine if it complies with that country’s laws. CUSTOMS DOCUMENT
Term
Bill of Lading
Definition
A transportation document that is the contract of carriage between the shipper and the carrier; provides a receipt for the goods tendered to the carrier, the “terms and conditions of sale” between the carrier and shipper, and the evidence of who has title to the goods while in transit. TRANSPORTATION DOCUMENT
Term

FORMS OF PAYMENT AND LEVEL OF RISK TO SELLER

 


Cash in Advance

Definition
Zero
Term

FORMS OF PAYMENT AND LEVEL OF RISK TO SELLER



Letter of Credit

Definition
Very Low 
Term

FORMS OF PAYMENT AND LEVEL OF RISK TO SELLER



TradeCard

Definition
Very Low
Term

FORMS OF PAYMENT AND LEVEL OF RISK TO SELLER  



Documentary Collect 

Definition
Low
Term
FORMS OF PAYMENT AND LEVEL OF RISK TO SELLER  
Definition
Term
FORMS OF PAYMENT AND LEVEL OF RISK TO SELLER  
Definition
Term

FORMS OF PAYMENT AND LEVEL OF RISK TO SELLER  



Credit Card

Definition
Low/Medium
Term

FORMS OF PAYMENT AND LEVEL OF RISK TO SELLER  



Open Account (Credit)

Definition
High
Term

CURRENCY RISKS AND WHO IS AT RISK
Use Exporter’s Currency

Definition

IMPORTER AT RISK

Term

CURRENCY RISKS AND WHO IS AT RISK



Use Importer’s Currency

Definition

EXPORTER AT RISK

Term

CURRENCY RISKS AND WHO IS AT RISK



3rd Country Currency

Definition

BOTH PARTIES AT RISK

Term

CURRENCY RISKS AND WHO IS AT RISK



SDR (Artificial Currency) 

Definition
BOTH PARTIES
Term

Characteristics of International Payment Issues



Credit Information

Definition
Generally much less information available on the creditworthiness of a creditor in a foreign market than there is for a domestic customer
Term

Characteristics of International Payment Issues



Lack of Personal Contact

Definition
International Transactions tend to be conducted in a more impersonal fashion (through fax or computers), than are domestic transactions, which tend to be conducted at least initially with some sort of personal contact (in person or over the phone). Language Barriers
Term

Characteristics of International Payment Issues



Collections are difficult and expensive

Definition
If a foreign customer reneges on a payment, the collection can be difficult due to the lack of firms with the capability of offering international collection services.
Term

Characteristics of International Payment Issues



No Easy Legal Resource

Definition
No court with jurisdiction over international disputes and there is little commercial code (of laws).
Term

Characteristics of International Payment Issues



Higher Litigation Costs 

Definition
High arbitration, litigation and mediation costs due to the long distances/language barrier. 
Term

Characteristics of International Payment Issues

   

 

Mistrust

Definition
Importing company is aware that the exporter is unlikely to aggressively pursue an unpaid or uncollected foreign receivable. 
Term

Commercial Risk

Definition

The probability of not getting paid by a certain creditor, because this creditor does not have the funds to pay the debt or because the creditor refuses to pay the debt.

Term

Country Risk or Political Risk

Definition

The probability of not getting paid by a certain creditor, because the creditor’s country does not have the funds to pay the debt (insufficient foreign exchange reserves) or because the creditor is not legally allowed to pay the debt (political embargo). 

Term

Exposure

Definition

The relative consequence of a particular risk for an exporter; the risk of a $50,000 loss would represent a greater exposure for a small exporter than for a large exporter. 

Term

Cash in Advance

Definition

The exporter requests that the customer provide payment in advance, before the shipment of the goods can take place. 

Term

Open Account

Definition

The exporter conducts international business in a manner similar to the way it conducts domestically. The exporter sends an invoice to the importer along with the shipment and trusts the customer to pay within a reasonable amount of time, typically 30-90 days. 

Term

Credit Insurance

Definition

An insurance policy under which commercial risk is covered; in exchange for a premium paid by the exporter, the insurance company will bear the risk of nonpayment by the importer, deducting a slight percentage of the receivable. 

Term
International Factoring
Definition
A means of financing international receivable accounts, by which a firm can ask a factoring company to advance funds on a receivable account. 
Term

Letter of Credit

Definition

A document in which the importer’s bank essentially promises to pay the exporter if the importer does not pay. 

Term

Issuing Bank

Definition

The bank providing the Letter of Credit. Should the importer be unable to pay, and should the exporter provide all the necessary documents, has the contractual obligation to pay the beneficiary. 

Term

Beneficiary

Definition

The firm named in a letter of credit as the firm to whom the bank is insuring payment if the importer does not pay. Usually this is the exporter. 

Term

Applicant

Definition

The firm asking the Issuing Bank for a Letter of Credit. Typically, this is the importer.

Term

Term of Trade

Definition

An element in a contract of sale that specifies the responsibilities of the exporter and the responsibilities of the importer. 

Term

Term of Sale

Definition

An element in a contract of sale that specifies the method of payment to which an importer have agreed. 

Term

Currency

Definition

The monetary unit used in a particular country for economic transactions. 

Term

Hard Currency

Definition

A currency that can easily be converted in another currency. 

Term

Convertible Currency

Definition

A currency that can be converted into another currency.

Term

Soft Currency

Definition

A currency that cannot be easily converted into another currency. 

Term

Inconvertible Currency

Definition

A currency that cannot be converted into another currency. 

Term

Special Drawing Right (SDR)

Definition

An artificial currency of the International Monetary Fund. Its value is determined by the value of a basket of four currencies: euro, yen, U.S. Dollar, and British Pound. 

Term

Euro

Definition

The common currency of twelve of the twenty-five countries of the European Union, developed in the late 1990s and placed in circulation on January 1, 2002.

Term

Direct Quote

Definition

The value of a foreign currency expressed in units of the domestic currency. Direct Quote for the U.S. Dollar and the euro would be $1.28/1 Euro

Term

Indirect Quote

Definition

The value of the domestic currency expressed in units of the foreign currency. Yen to U.S Dollar is 113.47 Yen/ 1 U.S. Dollar

Term

Spot Exchange Rate

Definition

The exchange rate of a foreign currency for immediate delivery (within 48 Hours). 

Term

Forward Exchange Rate

Definition

The exchange rate of a foreign currency for delivery in 30, 90, or 180 days from the date of the quote. 

Term

Outright Rate

Definition

The exchange rate of a foreign currency for delivery in 30, 90, or 180 days from the date of the quote. The outright rate is the rate at which a commercial customer would purchase the currency. 

Term

Swap Rate

Definition

The exchange rate of a foreign currency for delivery in 30, 90, or 180 days from the date of the quote. The swap rate is the difference between the current spot rate and the rate at which a commercial customer would purchase the currency. It is express in points that must be subtracted or added to the spot rate. 

Term

Points

Definition

In a forward exchange rate, the difference between the outright rate and the swap rate. Points are not fixed units; their value depends on the way a currency is expressed, but is the smallest decimal value in which that currency is traded. 

Term

Commercial Invoice

Definition

The invoice sent by the seller to the buyer, detailing the goods purchased and the amount due. In International trade, commercial invoices should be detailed and have all relevant information. 

Term

Pro-Forma Invoice

Definition

A quote provided by the exporter to the importer for the purpose of the importer obtaining a Letter of Credit. Very common in International Trade. 

Term

Consular Invoice

Definition

A commercial invoice that is printed on stationery provided by the Consulate of the country in which the goods will be imported. 

Term

Visa

Definition

A process by which the Consulate of the country in which the goods will be imported reviews and approves the Consular invoice for a fee. A visa shows on the Consular invoice as a rubber stamp or a seal.

Term
Shipper’s Export Declaration
Definition
A document collected by U.S. Customs designed to keep track of the goods exported from the United States, as well as their destination and their value. 
Term

Commodity Control List

Definition

A List, maintained by the Bureau of Industry and Security, which details which products cannot be exported from the United States without the express authorization of the U.S. Government.

Term
Individual Validated Export License
Definition
The express authorization, granted by the government of the exporting country, to export a particular product, or to export to a particular country or individual. 
Term

Destination Control Statement

Definition

A formal statement, which an exporter has to print on its invoice and on the Shipper’s Declaration if the goods shipped are subject to a validated export license. 

Term

Certificate of End-Use

Definition

A document required by some export governments in the case of sensitive exports, such as ammunition, to ensure that the product is used for acceptable purposes. 

Term

Export Quota

Definition

A limit, set by the exporting country’s government, on the quantity of a specific commodity that can be exported in a given year. 

Term
Certificate of Origin
Definition
A document provided by the exporter’s Chamber of Commerce that attests that the goods originated from the country in which the exporter is located. 
Term

Certificate of Manufacture

Definition

A document provided by the exporter’s Chamber of Commerce that attests that the goods manufactured from the country in which the exporter is located.

Term
Certificate of Inspection
Definition
A document provided by an independent inspection company that attests that the goods conform to the description contained in the invoice provided by the exporter. 
Term
Pre-Shipment Inspection (PSI)
Definition
An inspection conducted by an independent inspection company before the goods are shipped internationally. 
Term

Duty

Definition

The amount of tax paid on an imported good; the duty is calculated using the tariff rate and the value of the goods. 

Term

Classification

Definition

The process of determining what the correct Harmonized System Number is for an import. 

Term

Valuation

Definition
The process of determining the value of an import, or the amount upon which the duty will be calculated. 
Term
Rules of Origin
Definition

The rules used to determine the country of origin of a particular product. 

Term

Tariff

Definition

The rate at which an import is taxed; the tariff rate is dependent on the classification of the goods, as well as their country of origin. Also known as duty rate. Generally a percentage of the import value , but it can also be calculated with some other method, based on the number of units shipped or weight. 

Term

Tariffs are paid depending on: 

Definition

Goods Classification


1. Value of Goods

   2. Country of Origin

Term
Binding Rule
Definition
A determination, made by the United States Customs, and only applicable to the United States, which classifies a specific product and assigns it a tariff rate before the goods are imported.
Term

Assist

Definition

An item provided by the importer (customer) to the exporter (seller) so that the exporter can manufacture goods. 

Term

Value-Added Tax (VAT)

Definition

A tax perceived by many countries that is very similar to a sales tax, but that is collected whenever the product’s value is increased. The Value-Added Tax on imports is collected at the point of entry in the country. 

Term
Quota
Definition

A limit, set by the importing country’s government, on the quantity of a specific commodity that can be imported in a given year. 

Term

Entry

Definition

The process by which an importer notifies Customs that is has imported a particular product.

Term

Cleared

Definition

The term used to signify that goods were imported in a country and that the imported paid the duty that was due on those goods: The goods were released by the Customs authorities. 

Term

Liquidated Entry

Definition

An entry that has been successfully reviewed by Customs authorities and for which duty has been paid. 

Term

Protest

Definition

In a Customs transaction in the United States, the formal request by an importer to have Customs reconsider its classification, its valuation, or its determination of a country or origin. 

Term

Informed Compliance

Definition

A standard of behavior, set and enforced by the United States Customs Office, that is expected of importers if they want their Customs entries to be cleared quickly and if they want to keep Customs inspections at a minimum. 

Term

Reasonable Care

Definition

A standard of behavior, set and enforced by the United States Customs Office, that is expected of importers if they want their Customs entries to be cleared quickly and if they want to keep Customs inspections to a minimum. 

Term

For-Hire Carrier

Definition

A carrier that provides transportation service to the public on a fee basis.  

Term

TL

Definition

A shipment weighing the minimum weight or more. Carriers give a rate reduction for shipping a TL-size shipment. 

Term

LTL

Definition

A less-than-truckload shipment, one weighing less than the minimum weight a company needs to use the lower truckload rate.    

Term

Pickup and Delivery (PUD)

Definition

The act of collecting freight from shippers or delivering freight to consignees.

Term

Line-Haul Shipment

Definition

A shipment that moves between cities and over distances more than 100 to 150 miles in length. 

Term

Peddle Run

Definition

A truck operation where many pickups or deliveries are made while the vehicle travels over a preset route

Term

Stem Time

Definition

The time consumed by a truck to reach its first delivery after leaving the terminal and the time consumed by the truck to return to the terminal after making its last pickup.

Term

Relay Terminals

Definition

A motor carrier terminal that facilitates the substitution of one driver for another who has driven the maximum number of hours permitted

Term

Slip Seat

Definition

A motor carrier relay terminal operation in which a carrier substitutes one driver for another who has accumulated the maximum driving time hours. 

Term

Driving Time Regulations

Definition

U.S. Department of Transportation rules that limit the maximum time a driver may drive in interstate commerce; the rules prescribe both daily and weekly maximums. 

Term
Operating Ratio
Definition
A measure of operating efficiency defined as: Operating Expenses/Operating Revenues X 100.
Term

Major Carriers

Definition

Annual Revenues of more than $1 Billion. Major populated areas such as LA, Chicago, and New York. These are Delta, United, and Spirit.

Term

National Carriers

Definition

Annual Revenues of $100 Million to $1 Billion. Large, regional areas. I.E: JetBlue, Frontier

Term

Regional Carriers

Definition

Annual Revenues of less than $100 Million. Very Regional, such as New England area or the Plains. PSA and Air Midwest are examples.

Term

All-Cargo Carrier

Definition

Cargo only air carrier. Examples: USPS and FedEx Air

Term

Commuter

Definition

An exempt for-hire air carrier that publishes a time schedule on specific routes; a special air taxi.

Term

Private Air

Definition

A carrier that provides transportation service to the firm that owns or leases the airplane and does not charge a fee. 

Term

Excess Capacity

Definition

When carriers lower prices to fill seats. I.E RedEye Flights

Term

Frequency and Timing

Definition

Airlines attempt to schedule flights when consumer’s prefer to fly. 07:00-22:00.

Term

No-Frills Service

Definition

Charging fares that are lower than full-service air carriers but the passengers receive limited snacks and drinks. 

Term

Commodities

Definition

Mail, Clothing, Equipment, Automobiles, etc.

Term

High-Density Routes

Definition

New York to Chicago. Routes that are very popular amongst passengers.    

Term

Charter Airplane

Definition

An aircraft that is leased for a single voyage under a wet lease. 

Term

Passenger Airplane

Definition

A type of airplane that is designed to carry passengers on the main deck of the plane; it can also carry cargo below the main deck, it its “belly”, but the size and type of cargo are restricted. 

Term

On-Board Courier (OBC)

Definition

A passenger on a regularly scheduled flight who relinquishes his or her baggage allocation, allowing companies to ship extremely urgent cargo. 

Term

Combo Airplane

Definition

A type of airplane that is designed to carry both passengers and cargo on the main deck of the plane. 

Term

Roller Deck

Definition

The configuration of the deck of an aircraft when it is designed to accept cargo shipments; the deck is equipped with rollers and bearings that allow cargo to be moved in any direction without much friction. 

Term

Coal

Definition

Railroads are the primary haulers of coal, accounting for 43.8% of the total tonnage transported in 2001. 

Term

Farm Products

Definition

Second largest commodity group hauled by Railroads. 2.7 millions carloads. 

Term

Chemicals

Definition

Third largest commodity group hauled by Railroads. Safest way to move chemicals.

Term

Transportation Equipment

Definition

Fourth largest commodity group hauled by Railroads. Low-Value, High-Volume bulk. 

Term

Boxcar (Plain)

Definition

Standardized roofed freight car with sliding doors on the side used for general commodities. 

Term

Boxcar (equipped) 

Definition

Specially modified boxcar used for specialized merchandise, such as automobile parts. 

Term

Hopper Car

Definition

A freight car with the floor sloping to one or more hinged doors used for discharging bulk materials. 

Term

Covered Hopper

Definition

A hopper car with a roof designed to transport bulk commodities that need protection from the elements. 

Term

Flat

Definition

A freight car with no top or sides used primarily for TOFC service machinery and building materials. 

Term

Refrigerator Car

Definition

A freight car to which refrigeration equipment has been added for controlled temperature. 

Term

Gondola

Definition

A freight car with no top, a flat bottom, and fixed sides used primarily for hauling bulk commodities. 

Term

Tank Cars

Definition

Specialized car used for the transport of liquids and gasses. 

Term

3R Act of 1973

Definition

A law passed by Congress in response to the bankruptcies of the Penn Central and other railroads. Conrail was created from this law to operate the lines of 6 Northwestern U.S. Railroads.

Term

4R Act of 1976

Definition

Help the railroads obtain funds for capital investment and to allow the railroads more freedom concerning decisions on mergers, abandonments, and rate making.

Term

Staggers Rail Act

Definition

Helped the railroads financially and avoided deterioration of the industry by giving more regulations and control

Term

ICC Termination Act of 1995

Definition

Eliminated the ICC and transferred economic rail regulation to the Surface Transportation Board (STB).

Term

Regulated Water Carriers

Definition

Common or contract carriers. Economic regulation is administered by the STB. 

Term

Internal Water Carriers

Definition

Carriers that operate over the inland navigable waterways. 

Term

Coastal Carriers

Definition

Operate along the coasts serving ports on the Atlantic or Pacific Oceans or the Gulf of Mexico. 

Term

Barge

Definition

A water vessel that is powerless and is towed by a tugboat. Very low rates and flexible. Commonly seen by internal waterway carriers. 

Term

Liner

Definition

A ship that operates on a regular schedule, traveling from a group of ports to another group of ports. 

Term

Tramp

Definition

A ship that does not operate on a regular schedule and is available to be chartered from any voyage, from any port to any port. 

Term

Dead-Weight Tonnage

Definition

The maximum weight that a ship can carry.

Term

Bunker

Definition

The amount of fuel that a ship carries on board that it needs for travel. 

Term

Stores

Definition

All the supplies that a ship carriers and that it needs to function. 

Term

Bale

Definition

The end result of a packaging technique that consists of taking a commodity and unitizing it by compressing it and placing it into a bad or encircling it with string, metal, or plastic bands. 

Term

Gross Tonnage

Definition

The total volume of a ship’s carrying capacity, measured as the space available below deck, and expressed in hundreds of cubic feet. 

Term

Net Tonnage

Definition

Obtained by subtracting the volume by the engine room and the spaces necessary for the operation of the ship from the gross tonnage. 

Term

Displacement Tonnage

Definition

The total weight of the ship, when fully loaded, measured by using the weight of the water being displaced. 

Term

Light Tonnage

Definition

The total weight of the ship, when empty, measured by using the weight of the water being displaced. 

Term

Panamax

Definition

A ship of the maximum size that can enter the locks of the Panama Canal.

Term

Post-Panamax

Definition

A ship whose size it too large to enter the locks of the Panama Canal. 

Term

Wet-Bulk Cargo

Definition

Liquid cargo that is loaded directly into the hold of a ship, without any form of unitization. 

Term

Dry-Bulk Cargo

Definition

Dry cargo that is loaded directly in the hold a ship, without any form unitization.

Term

24- Hour Rule

Definition

A rule first instituted by the U.S. Customs and Border Protection Agency, which requires that carriers send Customs the manifest of all cargo destined for the United States 24 hours prior to the cargo being loaded in the port of departure. 

Term

Custom-Trade Partnership Against Terrorism (C-PAT)

Definition

A program instituted by the U.S. Customs and Border Protection Agency, through which customs gives preferential treatment to companies that have implemented a number of security measures in their supply chains.

Term

Container Security Initiative

Definition

A program instituted by the U.S. Customs and Border Protection Agency, through which Customs agents are sent to the port of departure to inspect containers bound for the United States. 

Term

Foreign Port Program

Definition

A program instituted by the U.S. Customs and Border Protection Agency, under which ports abroad purchase container-scanning equipment and agree to inspect cargo that the CBP considers suspicious. 

Term

Liquid-Bulk Container

Definition

A tank designed to hold liquids is placed inside a frame that has the same outside dimensions as a twenty-foot unit. 

Term

Dry-Bulk Container

Definition

Designed to hold dry-bulk products, such as grain or pellets. Allows for fewer handlings when the cargo is strictly bulk or is packaged in drums or bags. 

Term

Open-Top Container

Definition

Designed to hold cargo that is too large to fit through the door of a regular container and must be loaded from the top.

Term

Extended-Length Container

Definition

Designed to hold cargo that does not fit in a standard 40-foot container.

Term

Flat Rack

Definition

Designed to hold cargo that is less than eight feet wide, but would not fit in a standard container, which has inside dimensions of 92.5 Inches. 

Term

Refrigerated Container

Definition

Designed to hold cargo at a constant temperature during the voyage. 

Term

Refrigerated Container

Definition

Designed to hold cargo at a constant temperature during the voyage. 

Term

High Cube Containers

Definition

Designed to hold cargo that is 9.5 Feet tall. Can hold excess Cargo than the average. 

Term

Hanger Container

Definition

Designed to hold garments “on hanger”. Steel bars on which clothes or items can be hung. 

Term

Land Bridge

Definition

A term coined to describe the practice of shipping goods from Asia to Europe through the United States by using railroads. 

Term
Pipelines
Definition
Are common carriers.
Term

Commodities Hauled

Definition

Oil and Oil Products, Natural Gas, Coal, and Chemicals.

Term

Competition

Definition

 Sparse, due to less than 100 carriers


Rates: Very Low

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