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Automated Manifest System (AMS)
What is AMS in Shipping? The Automated Manifest System (AMS) is a key component in the world of shipping, particularly for companies engaged in international trade. At its core, AMS is an electronic system designed to facilitate cargo clearance and enhance security measures. It's used by customs authorities, particularly in the United States, to pre-screen and evaluate cargo information before goods arrive at their destination. The system plays a crucial role in streamlining the shipping process, making it more efficient and secure. By using AMS, shipping companies can provide detailed information about their cargo, including the shipper, consignee, and details of the goods being transported. This advanced information helps customs authorities to assess potential risks and prepare for the arrival of the cargo.
Features of Automated Manifest Automated processing: AMS automates the process of manifest submission, reducing manual errors and speeding up the clearance process. Security enhancement: It improves security...
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Blank Sailing
What is a Blank Sailing? Blank sailing, a term frequently encountered in the shipping and logistics industry, refers to a situation where a cargo ship skips one or multiple scheduled port calls or the entire leg of its voyage. This decision is often taken by the carrier for various operational or economic reasons. Blank sailings can significantly impact supply chain dynamics and are a critical concept for shippers and freight forwarders to understand.
Why Do Blank Sailings Happen? There are several reasons why carriers opt for blank sailings. Common causes include: Seasonal Demand Fluctuations: Carriers may cancel sailings during periods of low demand to maintain freight rates and optimize vessel utilization. Port Congestions or Delays: Unexpected delays in ports can disrupt schedules, leading to skipped port calls. Equipment Repositioning: To balance container availability, carriers might implement blank sailings to reposition their equipment. Market Strategies: Sometimes, blank sailings are part of...
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Co-Loader
What is a co-loader? In the complex world of freight forwarding and logistics, co-loading stands as a pivotal practice, particularly for optimizing shipments and reducing costs. A co-loader is a logistics service provider that consolidates cargo from multiple shippers into a single container. This process is instrumental in the Less than Container Load (LCL) shipping strategy, where individual shipments are not large enough to fill an entire container on their own. The essence of co-loading lies in its ability to create efficiencies within the shipping process. By pooling together smaller shipments, co-loaders facilitate a cost-effective and environmentally friendly method of transport. This consolidation process not only maximizes the utilization of container space but also allows shippers to benefit from lower shipping rates compared to if they were shipping their goods independently.
Key Benefits of Co-Loading Cost Efficiency: Co-loading significantly reduces shipping costs for shippers with smaller cargo volumes by sharing...
Chassis Fee
What is a chassis fee? A chassis fee is a charge levied by transportation providers for the use of a chassis, which is a wheeled frame specifically designed to carry containers over the road. This fee is often encountered in container shipping and intermodal transport, where a container needs to be transported from a ship to a warehouse or final destination. The chassis fee is typically calculated based on the duration for which the chassis is used, and it covers the costs associated with the maintenance and management of these essential pieces of equipment. Understanding chassis charges is vital for anyone involved in freight transportation, as these fees can significantly impact the overall shipping costs.
What is a tri-axle chassis fee? A tri-axle chassis fee is a specific type of chassis charge that applies to the use of a tri-axle chassis. This kind of chassis is equipped with three axles,...
Cartage
What is Cartage? Cartage refers to the process of transporting goods over a short distance, typically within a single metropolitan area or region. This service is often used in the logistics and freight industry to move goods to and from transportation hubs, such as ports, rail stations, or warehouses. The term 'cartage' can be applied to a variety of transportation methods, including trucks and smaller vehicles, tailored to suit the specific needs of the shipment. Key Aspects of Cartage Local Delivery: Cartage is primarily focused on local deliveries within a specific geographical area. Flexibility: Offers flexible solutions for small and large shipments, adapting to customer needs. Integration with Larger Networks: Often serves as a critical link in a larger transportation chain, connecting local destinations with national or international networks.
Related Freight Glossary Terms Drayage LTL (Less than Truckload)
Chargeable Weight
What is Chargeable Weight? Chargeable weight is a critical concept in the freight and shipping industry, representing the weight used by a carrier to determine the shipping cost. It is often calculated based on the greater of the actual physical weight of the shipment or its volumetric weight. This measurement ensures that carriers are compensated fairly for their services, especially when transporting lighter but bulkier items.
How is Volumetric Weight Calculated? Volumetric weight, also known as dimensional weight, is calculated using an equation that factors in the length, width, and height of a package. The formula typically multiplies these dimensions and then divides the result by a standard "dimensional factor" or "volumetric divisor," which varies depending on the unit of measurement and the carrier's policy. This calculation reflects the space a package occupies in relation to its actual weight. How Can I Better Estimate My Shipment’s Chargeable Weight? Estimating the...
Chassis Split
What Is a Chassis Split? A chassis split is an important concept in the logistics and transportation industry, particularly in container shipping. It refers to a situation where the container and its chassis (the wheeled frame used for transporting containers) are located at different sites, necessitating separate handling and movement. This scenario typically arises due to various operational reasons and can impact the efficiency and cost of cargo movement.
When Does a Chassis Split Occur? Chassis splits occur due to several reasons, often related to logistics efficiency, availability of equipment, or specific requirements of shipping lines or ports. Common scenarios include: Limited Availability:
When there's a shortage of chassis at a given location, a container might have to be moved without its chassis to another site where a chassis is available. Operational Strategies: Sometimes, for operational efficiency, shipping companies may choose to separate containers and chassis to optimize their usage....
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Declared Value Coverage
What is declared value coverage? Declared value coverage is a critical term in the freight and logistics industry, offering protection and peace of mind to shippers and consignees alike. It refers to the financial protection a shipper can obtain by declaring the value of the goods being transported. This coverage is essential for mitigating financial risks associated with the loss, damage, or theft of cargo during transit.
When a shipper declares a value for their shipment, they essentially set a cap on the carrier's liability for any damage or loss that occurs. This declared value is not automatically equivalent to insurance but acts as a limit to what the carrier can be held accountable for. In many cases, declared value coverage requires an additional fee, which is proportional to the value declared by the shipper. Understanding the terms and conditions associated with declared value coverage is crucial. Carriers often have...
Dry Run
What is a Dry Run? A dry run in the freight industry refers to a specific scenario where transportation of goods is simulated without the actual cargo. This process is often used to test the efficiency and feasibility of a logistics plan. It's a crucial step in ensuring that all aspects of the transportation process, from routing to timing, are well-planned and feasible. Dry runs help in identifying potential issues before the actual shipment, ensuring a smoother operation when it comes time to transport real cargo.
Why Do Dry Runs Happen? Dry runs are conducted for several reasons in the freight and logistics industry: Testing New Routes:
When a new route is proposed, a dry run allows logistics managers to evaluate its efficiency and safety. Training Personnel: Dry runs serve as a practical training exercise for staff, especially drivers and logistics coordinators, to familiarize themselves with new processes or routes....
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Express Bill of Lading
What is an express bill of lading? An express bill of lading is a crucial document in the shipping and logistics industry, acting as a contract between the shipper and the carrier. Unlike traditional bills of lading, the express bill of lading facilitates the faster release of cargo to the consignee or buyer without the need for presenting a physical copy of the bill. This type of bill of lading is often issued in a digital format, making it an efficient solution for time-sensitive shipments. The express bill of lading, also known as a telex release, streamlines the shipping process, allowing for quicker cargo turnover and reduced waiting times at the destination. By eliminating the need for paper documentation, it not only speeds up the shipping process but also contributes to environmental sustainability by reducing paper use.
When is an express bill of lading used? The express bill of lading...
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Free Carrier (FCA)
What Is FCA? Free Carrier (FCA), one of the critical terms in international shipping, is an Incoterm used to define the responsibilities of parties involved in the shipping of goods. The term FCA Incoterm is essential in global trade, clarifying when the responsibility and liability for the goods transfer from the seller to the buyer. Under FCA shipping terms, the seller is responsible for delivering the goods, ready for export, to a predetermined location. This location can be the seller's premises, a specific port, or another agreed-upon place. Understanding FCA Incoterms is vital for businesses engaged in international shipping. It outlines the process and responsibilities in a clear, standardized format. The FCA Incoterm is often preferred due to its flexibility and clarity, making it a popular choice in international logistics.
Related Freight Glossary Terms CFS (Container Freight Station) Container Yard LCL (Less than Container Load) Schedule a demo
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Harbor Maintenance Fee (HMF)
What is the Harbor Maintenance Fee (HMF)? The Harbor Maintenance Fee (HMF) is a charge levied on the value of commercial cargo loaded or unloaded from vessels at U.S. ports. This fee is critical to ensure the maintenance and operation of U.S. harbors and ports, playing a significant role in the country's freight and shipping industry. The HMF helps fund the U.S. Army Corps of Engineers for harbor maintenance projects, ensuring efficient and safe navigation channels for commercial vessels.
How is the HMF Calculated? The calculation of the Harbor Maintenance Fee is based on a percentage of the value of the cargo. This percentage is subject to change, and shippers should stay updated on the current rate. The fee is usually collected by the U.S. Customs and Border Protection (CBP) and is typically a standard cost across all U.S. ports. Understanding how the HMF is calculated is crucial for businesses...
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International Air Transport Association (IATA)
What is IATA? The International Air Transport Association (IATA) is a trade association representing more than 290 airlines (82% of all air traffic) across 117+ countries. The association is also known to have been involved with helping create and set industry standards and policies on critical aviation issues like safety, carbon emissions, business practices, etc.
When shipping air cargo, it is necessary to comply with safety guidelines and standards set by IATA and submit all required shipment documentation. More about IATA In 1945, IATA was founded and succeeded its predecessor, the International Air Traffic Association, that was formed in 1919. Now headquartered in Montréal (Canada), IATA has spearheaded safety initiatives like the IATA Operational Safety Audit (IOSA) for airlines. For freight forwarders, the association has set safety standards for shipments containing lithium batteries, hazardous loads, and live animals. Track containers from multiple terminals? GoFreight is the platform for those who...
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Less than Container Load (LCL)
What is LCL? Less than Container Load (LCL) is a shipping term used in the freight industry to describe a type of transportation for goods that do not require the full space of a standard container. This option allows multiple shippers to share container space, making it a cost-effective solution for transporting smaller volumes of cargo. LCL shipments are consolidated at a Container Freight Station (CFS) before being loaded onto a vessel and then de-consolidated at the destination CFS for delivery. LCL is particularly beneficial for businesses that need to manage their inventory efficiently, avoiding the higher costs associated with booking a full container when their cargo volume doesn't justify it. By opting for LCL, shippers can still enjoy the advantages of sea freight, such as lower shipping rates compared to air freight, without the need for large, bulk shipments.
Key Benefits of LCL Shipping Cost Efficiency: Pay only for...
Live Unload
What is a Live Unload? Live unload, a critical process in the freight and logistics industry, involves the manual unloading of cargo from a transport vehicle, such as a truck or a shipping container, while the driver waits. This process is distinct from other unloading methods due to its direct and immediate nature. In live unload scenarios, goods are removed from the vehicle as soon as it arrives at the destination, requiring efficient coordination and timely execution. Live unloading is particularly relevant in situations where goods need to be dispatched quickly or when storage facilities are not available or practical. This method ensures that products are transferred directly from the vehicle to the receiving area, minimizing handling time and reducing the risk of damage or delay.
When should a live unload be arranged? Arranging a live unload is crucial in several scenarios: Time-Sensitive Deliveries: For shipments where time is of...
Liftgate
What is a Liftgate? A liftgate, often essential in freight and logistics operations, is a mechanical device attached to the back of a truck or trailer. Its primary function is to facilitate the loading and unloading of cargo, especially when a loading dock is not available. Liftgates are particularly useful for handling heavy or bulky items, as they can effortlessly raise and lower goods between the ground and the vehicle bed. In the context of freight transportation, liftgates play a pivotal role. They are widely used across various industries, including retail, construction, and manufacturing, for their efficiency and safety benefits.
When considering freight options, it's important to know if a liftgate service is necessary for your shipment, especially if the receiving location lacks a forklift or a loading dock. Calculating TEUs is straightforward. The basis of the calculation is the standard twenty-foot container. Here's a simple guide to understand how...
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Merchandise Processing Fee (MPF)
What is the Merchandise Processing Fee? The Merchandise Processing Fee (MPF) is a crucial term in the world of freight and shipping. It refers to a fee levied by customs on imported goods. This fee is often calculated as a percentage of the value of the merchandise being imported. Understanding the MPF is essential for businesses involved in international trade, as it affects the overall cost of importing goods.
How is the Merchandise Processing Fee charged? Calculating the Merchandise Processing Fee involves several factors. Primarily, it's based on the value of the imported merchandise. The fee structure can vary, and it's essential for shippers and importers to be aware of the specific rates applicable to their shipments. The MPF is charged per shipment and is a standard part of the customs clearance process.
Related Freight Glossary Terms Harbor Maintenance Fee (HMF) Commercial Invoice
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Original Bill of Lading (OBL)
What is an Original Bill of Lading? The Original Bill of Lading (OBL) is a critical document in the world of freight and shipping. It serves as a legally binding contract between the shipper and the carrier, outlining the terms and conditions of the cargo's transportation. The OBL is issued by the carrier and serves multiple purposes: it's a receipt for the goods shipped, a document of title to the goods, and evidence of the terms and conditions of carriage. The OBL is essential for the consignee to take possession of the goods upon arrival. It's a unique document that requires careful handling, as its originality is key to its function. The "obl meaning" in the freight industry is synonymous with trust, security, and authenticity in cargo shipment.
Related Freight Glossary Terms Express Bill of Lading Schedule a demo
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Per Diem Charge
What is a per diem charge? A per diem charge is a daily fee imposed by transportation carriers for the use of their containers or equipment beyond a predetermined free period. Typically, this charge is applied in the freight industry when cargo remains in a carrier's equipment, like a shipping container, beyond the agreed-upon free time. The term "per diem" translates to "per day," reflecting the daily nature of this charge.
Why is the per diem charge implemented? The implementation of a per diem charge serves multiple purposes. Primarily, it incentivizes shippers and consignees to unload and return the containers promptly, ensuring efficient container circulation. This practice helps avoid equipment shortages and maintains the smooth operation of shipping services. Additionally, per diem charges compensate carriers for the potential loss of income when their equipment is tied up and unavailable for other customers. What if I need to keep storing the...
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Shipping Order (SO)
What is a Shipping Order (SO)? A Shipping Order (SO) is a critical document in the world of freight and logistics. It serves as a formal request from a shipper or consignee to a transportation company for the shipment of goods. This document outlines the specifics of the cargo, including destination, quantity, and type of goods, and is essential for efficient and accurate handling of shipments. The Shipping Order is a key element in streamlining the freight process, ensuring that all parties involved in the transportation of goods have clear and concise information. It plays a vital role in international trade, where accuracy and detail are paramount. The SO is often accompanied by other vital documents like the Packing List and Commercial Invoice, which provide additional details about the shipment.
Related Freight Glossary Terms Packing List (PL) Commercial Invoice Schedule a demo
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Transloading
What is Transloading? Transloading is a critical process in the field of logistics and supply chain management, involving the transfer of goods from one mode of transportation to another. This practice is essential when a single mode of transport cannot complete the journey from origin to destination. For instance, goods might be shipped in a container by ocean freight and then transferred to a truck for the final leg of their journey. The versatility of transloading allows for a seamless transition between different transportation methods, such as rail, truck, and ship. This flexibility is particularly beneficial when shipping goods over long distances or across international borders. By optimizing the transportation process, transloading helps in reducing handling costs, minimizing storage requirements, and expediting delivery times.
Key Benefits of Transloading Flexibility in Transportation: Transloading offers the ability to switch between transport modes, catering to different geographic and logistical needs. Cost Efficiency: By...
TRKU Tracking
Are you shipping with Turkon Line and looking for TRKU container tracking? Founded in 1997, the Turkon Container Transport and Shipping Inc. was established to transport containers to the United States. Turkon container tracking can be done on the TRKU container tracking webpage.
When shipping with TRKU, an independent container freight company that actively provides shipping services in America, Europe, the Mediterranean and Black Sea, having access to Turkon container tracking and staying updated on the whereabouts of your containers is incredibly important. Fed up with all the different carrier websites you have to check just to find out where your shipments are? GoFreight is here to save the day! With our software system, all the data you need is combined into one dashboard, freeing you from manually searching up separate carrier websites to find container statuses. GoFreight not only centralizes container statuses from multiple carriers, ports, terminals, and rails,...
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Unit Load Device (ULD)
What is a ULD? A Unit Load Device (ULD) is an essential tool in the logistics and freight industry, particularly in air cargo transportation. ULDs are pallets or containers used to load luggage, freight, and mail on wide-body aircraft and specific narrow-body aircraft, streamlining the handling and transport of cargo. ULDs are designed to fit perfectly in the aircraft's cargo hold, maximizing the use of space and ensuring cargo security and safety during flight. The standardization of ULD dimensions and specifications allows for efficient cargo handling and interchange between different aircraft types, facilitating smoother logistics operations.
How is air cargo consolidated? Consolidation of air cargo is a critical process in the logistics industry, involving the grouping of smaller shipments into one larger shipment. This process is integral to optimizing cargo space and reducing transportation costs. ULDs play a vital role in this process, providing a secure and standardized way to...


