ناصر جبرائیل اوغلی naser jebraeil oghli

حمل ونقل - بازرگانی - اقتصاد - بازاریابی - مطالب آزاد

Glossary of Logistics Terms - LGI INC.
نویسنده : ناصر - ساعت ۸:۱٧ ‎ق.ظ روز ۱۳۸٧/٥/۱٦
 

-A-

Accessorial charges A charge assessed by a carrier for services provided in addition to basic transportation ­ for example, loading, unloading, switching and stop off.

Accessory equipment Goods, such as portable tools and office equipment, that is less expensive and shorter-lived than major equipment.

Accrual accounts Those portions of income and expense accounts that are incurred during the current period, but will not be paid or received until the next accounting period.

Accruals Continually recurring short-term liabilities. Examples are accrued wages, accrued taxes and accrued interest.

Acid-test ratio A ratio to measure the liquidity of a business firm. It is calculated by dividing cash and near-cash items by current liabilities.

Adaptive selling Altering a sales presentation for each prospect in response to the specific sales situation.

Aging schedule A report showing how long accounts receivable have been outstanding. It gives the percent of receivables not past due and the percent past due by, for example, one month, two months or other periods.

All-you-can-afford approach Method offsetting a promotional budget that relies on determining how much the marketer can spend.

American Trucking Association, Inc. (ATA) A motor carrier industry association that is made up of sub conferences representing various sectors of the motor carrier industry.

Amortize To liquidate on an installment basis; an amortized loan is one in which the principal amount of the loan is repaid in installments during the life of the loan.

Assets Those properties (both tangible and intangible) of value that are owned by a business firm or other legal entity.

Assignment A relatively inexpensive way of liquidating a failing firm that does not involve going through the courts.

Auditing Determining the correct transportation charges due the carrier; auditing involves checking the accuracy of the freight bill for errors, correct rate and weight.

Average total cost (ATC) Total costs divided by output.

Average variable cost (AVC) Total variable costs divided by output.

-B-

Back haul The return movement of a vehicle from original destination to original origin.

Bait pricing Price tactic that tries to get consumers into a store through false or misleading price advertising and then uses high-pressure selling to persuade consumers to buy more expensive merchandise.

Balance sheet The primary financial statement of a business firm. The balance sheet shows the type and dollar value of all assets owned by a business at a given point of time and also the debts and owners' investment at that same instant.

Benchmarking Measuring a product/service against the best of the best companies.

Bill of lading A transportation document that is the contract of carriage between the shipper and carrier; it provides a receipt for the goods tendered to the carrier and in some cases, show certificate of title.

Billing A carrier terminal activity involving the determination of the proper rate and total charges for a shipment and the insurance of a freight bill.

Blanket purchasing contract Type of purchasing contract that requires the supplier to provide a certain amount of product at the same price each month during the course of a year.

Bookkeeping The aspect of accounting that involves recording financial transactions.

Bracing Securing a shipment inside a carrier's vehicle to prevent damage.

Break-bulk The separation of a consolidated, bulk load into individual smaller shipments for delivery to ultimate consignee. The freight may be moved intact inside the trailer or it may be interchanged and rehandled to the connecting carriers.

Break-even analysis An analytical technique for studying the relation between fixed cost, variable cost and profits. A break-even chart graphically depicts the nature of break-even analysis. The break-even point represents that volume of sales at which total costs equal total revenues (that is, profits equal zero).

Business logistics The physical movement of goods from supply points to final sale to customers and the associated transfer and holding of such goods at various intermediate storage points, accomplished in such a manner as to contribute to the explicit goals of the organization.

-C-

Carmack Act An amendment to the Interstate Commerce Act that prescribes the liability of the common carrier and the bill of lading forms and provisions.

Carrier liability A common carrier is liable for all loss, damage and delay with the exception of act of God, act of a public enemy, act of a public authority, act of the shipper and the inherent nature of the goods.

Cash budget A schedule showing cash flows (receipts, disbursements and net cash) for a firm over a specified period.

Cash cycle The length of time between the purchase of raw materials and the collection of accounts receivable generated in the sale of the final product.

Cash discount Price reduction offered to a consumer, industrial user or marketing intermediary in return for prompt payment of a bill.

CFR ­ Cost and Freight Title, risk and insurance cost passed to buyer when delivered on board the ship by seller who pays the transportation cost to the destination port. Used for sea or inland waterway transportation.

Channel of distribution The route that goods travel from producer, through middleman, to consumer.

CIF ­ Cost, Insurance and Freight ­ Title and risk passed to buyer when delivered on board the ship by seller who pays transportation and insurance cost to destination port. Used for sea or inland waterway transportation.

CIP ­ Carriage and Insurance Paid To ­ Title and risk passed to buyer when delivered to carrier by seller who pays transportation and insurance cost to destination. Used for any mode of transportation.

Claim A charge made against a carrier for loss, damage or overcharge.

Class rate A rate constructed from a classification and a uniform distance system. A class rate is available for any product between any two points.

Code of Federal Regulations (CFR) Annual publication of federal regulation.

Cold calling Form of lead generation in which the salesperson approaches potential buyers without any prior knowledge of the prospects' needs or financial status.

Commercial paper Unsecured, short-term promissory notes of large firms, usually issued in denominations of $1 million or more. The rate of interest on commercial paper is typically somewhat below the prime rate of interest.

Commercial zone The area surrounding a city or town to which rates quoted for the city or town also apply; the area is defined by the ICC (now the Surface Transportation Board).

Common carrier A for-hire carrier that holds itself out to serve the general public at reasonable rates and without discrimination.

Common carrier duties Common carriers are required to serve, deliver, charge reasonable rates and not discriminate.

Common cost A cost that cannot be directly assignable to particular segments of the business but that is incurred for the business as a whole.

Consignee The receiver of a freight shipment, usually the buyer.

Consignor The sender of a freight shipment, usually the seller.

Consolidation The collection of smaller shipments to form a larger quantity in order to realize lower transportation rates.

Contract logistics Use of an independent third party to buy and manage an entire subsystem of physical distribution, such as transportation or warehousing for a manufacturer or supplier.

Cost trade off The interrelationship among system variables indicates that a change in the variable has cost impact upon other variables. A cost reduction in one variable may be at the expense of increased cost for other variables and vice versa.

CPT ­ Carriage Paid To ­ Title, risk and insurance cost pass to buyer when delivered to carrier by seller who pays transportation cost to destination. Used for any mode of transportation.

-D-

DAF ­ Delivered at Frontier ­ Title, risk and responsibility for import clearance pass to buyer when delivered to named border point by seller. Used for any mode of transportation.

DDP ­ Delivered Duty Paid ­ Title and risk pass to buyer when seller delivers goods to named destination point cleared for import. Used for any mode of transportation.

DDU ­ Delivered Duty Unpaid ­ Seller fulfills his obligation when goods have been made available at the named place in the country of importation.

Degree of leverage The percentage increase in profits resulting from a given percentage increase in sales. The degree of leverage may be calculated for financial leverage, operating leverage or both combined.

Demand Quantity of a product that will be sold in the market at various prices for a specified period.

Demurrage The charge assessed by the railroad for the shipper/receiver holding a car beyond the free time allowed for loading (24 hours) and unloading (48 hours). Density A physical characteristic of a commodity measuring the mass per unit per volume or pounds per foot, an important factor in rate-making since density affects the utilization of a carrier's vehicle.

Density rate A rate based upon the density and shipment weight.

Depreciation The decline in value realized on all assets of a long life. This decline in value is the result of wear and tear and use. In accounting, depreciation is treated as a reduction to a fixed asset, the charge being made annually.

DEQ ­ Delivered Ex Quay (Duty Paid) ­ Title and risk pass to buyer when delivered on board the ship at the destination point by the seller who delivers goods on dock at destination point cleared for import. Used for sea or inland waterway transportation.

DDU ­ Delivered Duty Unpaid ­ Title, risk and responsibility of import clearance pass to buyer when seller delivers goods to named destination point. Used for any mode of transportation. Buyer is obligated for import clearance.

Derived demand Demand that results from demand for another product.

DES ­ Delivered Ex Ship ­ Title, risk and responsibility for vessel discharge and import clearance pass to buyer when seller delivers goods on board the ship to destination port. Used for sea or inland waterway transportation.

Detention The charge assessed by the motor carrier when the shipper/received holds a truck trailer beyond the free time allowed for loading and unloading.

Direct channel Distribution channel in which producers sell directly to the consumers.

Direct marketing Techniques used to get consumers to buy from their homes, including direct mail, catalogs, mail order, telemarketing and electronic retailing.

Discount rate The interest rate used in the discounting process; sometimes called capitalization rate.

Discounted cash flow techniques Methods of ranking investment proposals. Included are (1) internal rate of return method; (2) net present value method; and (3) profitability index or benefit/cost ratio.

Discounting The process of finding the present value of a series of future cash flows. Discounting is the reverse of compounding.

Dispatching The carrier activities involved with controlling equipment, involves arranging for fuel, drivers, crew, equipments and terminal space.

Distribution center Type of warehouse that specializes in making bulk or breaking bulk and strives for rapid inventory turnover.

Double bottoms A motor carrier operation involving two trailers being pulled by one tractor.

Double stack Two containers, one on top of the other, loaded on a railroad flatcar, an intermodal service.

Drayage A motor carrier that operates locally, providing pickup and delivery service.

Drop shipper Limited service merchant wholesaler that places orders for its customers with the manufacturer but does not physically handle the products it sells.

Dual distribution (multiple distribution) Use of two or more channels to distribute the same product to target markets.

-E-

Electronic data interchange (EDI) Computer technique that electronically transmits data about retain inventories to warehouses so orders can be filled more quickly and accurately.

Environmental management Implementation of strategies that attempt to shape the external environment within which a firm operates.

Environmental scanning Collection and interpretation of information about forces, events and relationships that may affect the future of an organization.

Ethics Moral Principles or values that generally govern the conduct of an individual or a group.

Exclusive use Carrier vehicles that are assigned to a specific shipper for its exclusive use.

Exempt carrier A for-hire carrier that is exempt from economic regulations.

Expediting Determining where a shipment is in transit and attempting to speed up its delivery.

EXW ­ Ex Works ­ Title and risk pass to buyer including payment of all transportation and insurance cost from the seller's door. Used for any mode of transportation.

-F-

Factoring A method of financing accounts receivable under which a firm sells their accounts receivable (generally without recourse) to a financial institution (the "factor").

FAS ­ Free Alongside Ship Title and risk pass to buyer including payment of all transportation and insurance cost once delivered alongside ship by the seller. Used for sea or inland waterway transportation. The export clearance obligation rests with the seller.

FCA ­ Free Carrier ­ Title and risk pass to buyer including transportation and insurance cost when the seller delivers goods cleared for export to the carrier. Seller is obligated to load the goods on the buyer's collecting vehicle; it is the buyer's obligation to receive the seller's arriving vehicle unloaded.

Finance That aspect of the study of business that is concerned with the efficient acquisition and use of capital within the firm.

Finance lease An equipment leasing arrangement that provides the lessee with a means of financing for the leased equipment, a common method for leasing motor carrier trailers.

Financial responsibility Motor carriers are required to have body injury and property damage (not cargo) insurance of not less than $750,000 per incident per vehicle, higher financial responsibility limits apply for motor carriers transporting oil or hazardous materials.

Fixed charges Costs that do not vary with the level of output, especially fixed financial costs such as interest, lease payments and sinking fund payments.

Float The amount of funds tied up in checks that have been written but are still in process and have not yet been collected.

FOB ­ Free On Board A term of sale that defines who is to incur transportation charges for the shipment, who is to control the movement of the shipment or where title to the goods passes to the buyer. Used for sea or inland waterway transportation.

FOB origin pricing Price tactic that requires the buyer to absorb the freight costs from the shipping point.

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

Freight bill The carrier's invoice for transportation charges applicable to a freight shipment.

Freight forwarder A carrier that collects small shipments from shippers consolidates the small shipments and uses a basic mode to transport these consolidated shipments to a destination where the freight forwarder delivers the shipment to the consignee.

Full service leasing An equipment leasing arrangement that includes a variety of services to support the leased equipment a common method for leasing motor carrier tractors.

-G-

Geographic segmentation Method of dividing markets based on region of the country or world, market size, market density or climate.

Global marketing Individuals and organizations using a global vision to effectively market goods and services across national boundaries.

Green marketing Marketing of products and packages that are less toxic than normal, are more durable, contain reusable materials or are made of recyclable materials.

Gross profit The profit realized on the sale of goods after accounting for the cost of the goods sold, but before considering all other expenses that may have been incurred.

-H-

Holding company A corporation operated for the purpose of owning the common stocks of other corporations.

Hundredweight (cwt) A transportation packing unit equals 100 pounds.

-I-

Incentive rate A rate designed to induce the shipper to ship heavier volumes per shipment.

Incremental cost of capital The average cost of the increment of capital raised during a given year.

Interchange Refers to the transfer of cargo and equipment from one carrier to another in a joint freight move.

Intercorporate hauling A private carrier handling the goods of a subsidiary and charging the subsidiary a fee; this is legal if the subsidiary is wholly owned (100 percent) or the private carrier has common carrier authority.

Interline Two or more motor carriers working together to haul the shipment to a destination. Carrier equipment may be interchanged from one carrier to the next, but usually the shipment is rehandled without the equipment.

Intermodal transportation Combination of two or more modes of moving freight.

Internal rate of return (IRR) The rate of return on an asset investment. The internal rate of return is calculated by fining the discount rate that equates the present value of future cash flows to the cost of the investment.

Interstate commerce The transportation of persons or property between states, in the course of the movement, the shipment crosses a state boundary line.

Intrastate commerce The transportation of persons or property between points within a state. A shipment between two points within a state may be interstate if the shipment had a prior or subsequent move outside of the state and the intent of the shipper was an interstate shipment at the time of shipment.

Inventory cost The cost of holding goods, usually expressed as a percentage of the value of the invention; includes the cost of capital, warehousing, taxes, insurance, depreciation and obsolescence.

Inventory turnover A ratio that measures efficiency within a business firm. This ratio shows how many times the average inventory balance of the firm is converted into sales in the course of one accounting period.

-J-

Joint rate A rate over a route that involves two or more carriers to transport the shipment.

Joint venture A short-term partnership agreement between two or more firms in which they agree to work jointly toward some common, specific objective.

Journal A book of entry or account in which all the financial transactions affected by the business are recorded. From the journal the various account balances are transferred to ledgers and finally used to construct the financial statements.

Just-in-time (JIT) inventory management Redesigning and simplifying manufacturing by reducing inventory levels and delivering parts just when they are needed on the production line.

-L-

Lead time Time it takes to get parts from a supplier after an order has been placed; time that the customer has to wait before an order is filled.

Lessee A person or firm to whom a lease is granted.

Lessor A person or firm that grants a lease.

Liabilities The debts incurred by a business firm or by an individual. Also, refers to one of the three major sections of a balance sheet.

Lien A lender's claim on assets that are pledged for a loan.

Limited liability One of the characteristics of ownership of a corporation or corporation stock. Such an owner's liability for losses is limited to the amounted invested in the stock and no more.

Limited partner A partner who assumes a relatively inactive role in the affairs of the partnership and who enjoys a limited legal liability for the activities of the partnership.

Line of credit An arrangement whereby a financial institution (bank or insurance company) commits itself to lend up to a specified maximum amount of funds during a specified period. Sometimes the interest rate on the load is specified; at other times, it is not. Sometimes a commitment fee is imposed for obtaining the line of credit.

Liquidity Refers to a firm's cash position and its ability to meet maturing obligations. The quickness and ease by which an asset can be converted into cash.

Local rate A rate published between two points serviced by one carrier.

Logbook A daily record of the hours an interstate driver spends driving, off duty, sleeping in the berth or on duty but not driving.

Lumping A term applied to a person who assists a motor carrier owner-operator in the loading and unloading of property; quite commonly used in the food industry.

-M-

Marginal cost The cost of an additional unit. The marginal cost of capital is the cost of an additional dollar of new funds.

Market penetration Marketing strategy that increases market share among existing customers.

Market sales potential Maximum amount of product that can be sold in a given industry with maximum marketing expenditures under existing marketing mixes within a specific external environment.

Market segment Subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs.

Market segment sales potential Maximum amount of a product that could be sold in a market segment during a specified period.

Market segment size Number of potential customers in a market segment.

Market segmentation Process of dividing a market into meaningful, relatively similar and identifiable segments or groups.

Market share Company's product sales as a percentage of total sales for that industry.

Marketing concept Idea that the social and economic justification for an organization's existence is the satisfaction of customer wants and needs while meeting organizational objectives.

Marketing mix Unique blend of product, distribution, promotion and pricing strategies designed to produce mutually satisfying exchanges with a target market.

Merger Any combination that forms one company from two or more previously existing companies.

Micro marketing Marketing tailored to prospective buyers who live in small geographic regions, such as neighborhoods or who have very specific lifestyle and demographic characteristics.

Mileage rate A rate based upon the number of miles the commodity is shipped.

Minimum weight The shipment weight specified by the carrier's tariff as the minimum weight required to use the TL or CL rate; the rate discount volume.

Mixed loads The movement of both regulated and exempt commodities in the same vehicle at the same time.

Monopoly Form of economic competition in which one firm controls the output and price of a product for which there are no close substitutes.

-N-

National Industrial Traffic League An association representing the interests of shippers and receivers in matters of transportation policy and regulation.

Net present value (NPV) method A method of ranking investment proposals. The NPV is equal to the present value of future returns, discounted at the appropriate cost of capital, minus the present value of the cost of the investment.

Net worth The capital and surplus of a firm ­ capital stock, capital surplus (paid-in capital), earned surplus (retained earnings), and occasionally certain reserves. For some purposes, preferred stock is included; generally, net worth refers only to the common stockholders' position.

-O-

Operating leverage The extent to which fixed costs is used in a firm's operation. Break-even analysis is used to measure the extent to which operating leverage is employed.

Operation ratio A measure of operating efficiency defined as: operating expenses/operating expenses x 100.

Order getter Someone who actively seeks buyers for a product.

Order handling Second step in order processing in which the order is transmitted to the office, usually on a standardized order form and then to the warehouse floor.

Order lead time Expected time between the date an order is placed and the date the goods are received and made ready for resale to customers.

Order processing cost Total of operating expenses for the ordering or purchasing department, costs of required follow-up, operating expenses for the receiving department, expenses incurred in paying invoices and the portion of data-processing costs related to purchasing and acquiring inventory.

Ordering cost Order processing cost divided by the number of orders placed per year, to arrive at an average cost per order.

OSHA The Occupational Safety and Health Act passed in 1970 and designed to provide safer working conditions for workers.

Over-the-road A motor carrier operation that reflects long distance, intercity moves and the opposite of local operations.

Owner-operator A trucking operation in which the owner of the truck is also the driver.

-P-

Payback period The length of time required for the net revenues of an investment to return the cost of the investment.

Per diem The rate of payment for use by one railroad of the cars of another.

Personal discrimination Charging different rates to shippers with smaller transportation characteristics or vice versa.

Physical distribution Ingredient in the marketing mix that describes how products are moved and stored.

Piggyback A rail-truck service. A highway trailer is loaded by a shipper and is driven to a rail terminal where it is loaded on a rail flat car; the trailer-on-flat car is moved to the destination terminal by the railroad where the trailer if off-loaded and delivered to the consignee.

Place utility A value created in a product by changing its location. Transportation creates place utility.

Pledging of accounts receivable Short-term borrowing from financial institutions where the loan is secured by accounts receivable. The lender may physically take the accounts receivable but typically has recourse to the borrower; also called discounting of accounts receivable.

Present value (PV) The value today of a future payment or stream of payments discounted at the appropriate discount rate.

Price/Earnings Ratio (P/E) The ration of price to earnings. Faster growing or less risky firms typically have higher P/E ratios than either slower growing or riskier firms.

Price fixing Agreement between two or more firms on the price they will charge for a product.

Primary Business Test A test used by the ICC to determine if a trucking operation is bona fide, private transportation; the private trucking operation must be incidental to and in the furtherance of the primary business of the firm.

Private carrier A carrier that provides transportation service to the firm which owns or leases the vehicles and does not charge a fee. Private motor carriers may haul at a fee for wholly owned subsidiaries.

Private warehouse Storage facility either leaded or owned by a company that needs to store a large amounts of its own merchandise.

Pro forma A projection. A pro forma financial statement is one that shows how the actual statement will look is certain specified assumptions are realized. Pro forma statements may be either future or past projections. An example of a backward pro forma statement occurs when two firms are planning to merge and show what their consolidated financial statements would have looked like if they had been merged in preceding years.

Promotional mix Combination of promotional tools ­ including advertising, personal selling, sales promotion and public relations ­ used to reach the target market and fulfill the organization's overall goals.

Promotional plan Carefully arranged sequence of promotions designed around a common theme and geared to specific objectives.

Promotional strategy Plan for the optimal use of the elements of promotion; advertising, personal selling, sales promotion and public relations.

Push strategy Marketing strategy that uses aggressive personal selling and trade advertising to convince a wholesaler or a retailer to carry and sell particular merchandise.

-R-

Reasonable rate A rate that is high enough to cover the carrier's cost but not too high to enable the carrier to realize monopolistic profits.

Relationship marketing Strategy of developing strong customer loyalty by creating satisfied customers who will buy additional services from the firm; strategy of forging long-term partnerships with customers.

Relay terminal A motor carrier terminal designed to facilitate the substitution of one driver for another who has driven the maximum hours permitted.

Released value rates Rates based upon the value of the shipment, the maximum carrier liability for damage is less than the full value and in return the carrier offers a lower rate.

Reminder objective Promotional objective used to cue the consumer that the product is available.

Reorganization When a financially troubled firm goes through reorganization, its assets are restated to reflect their current market value and its financial structure is restated to reflect any changes on the asset side of the statement. Under a reorganization the firm continues in existence; this is contrasted to bankruptcy, where the firm is liquidated and ceases to exist.

Reparation The ICC (now STB) could require railroads to repay users the difference between the rates charged and the maximum rate permitted when the ICC found the rate to be unreasonably too high.

Residual value The value of leased property at the end of the lease term.

Risk That level of uncertainty in which a decision maker knows the possible outcomes of an action and can assign subjective probabilities to them.

-S-

Safety stock Extra merchandise kept on hand to protect against running out of stock.

Sales force composite Sales forecasting technique that surveys the sales force.

Sales forecast Estimate of a firm's future sales or revenues for a specified period.

Sales orientation Philosophy that assumes buyers resist purchasing items that are not essential.

Sales presentation Face-to-face explanation of a product's benefits to a prospective buyer.

Sales promotion Marketing activities ­ other than personal selling, advertising and public relations ­ that stimulate consumer buying and dealer effectiveness; offer of a short-term incentive in order to induce the purchase of a particular good or service.

Surface Transportation Board (STB) An independent element of the Department of Transportation created after the sunset of the ICC in 1996. Many of the remaining duties of the ICC were transferred to this three-member board.

Salvage value The value of a capital asset at the end of a specified period. It is the current market price of an asset being considered for replacement in a capital budgeting problem.

Segmentation base (variable) Characteristic of individuals, groups or organizations used as a basis for dividing a market into segments.

Shipper's agent A firm that acts primarily to match up small shipments, especially single traffic piggyback loads to permit use of twin trailer piggyback rates.

Shipper's association A nonprofit, cooperative consolidator and distributor of shipments owned or shipped by member firms, acts in much the same way as for-profit freight forwarders.

Short-haul discrimination Charging more for a shorter haul than a longer haul over the same route, in the same direction and for the same commodity.

Single source leasing Leasing both the truck and driver from one source.

Sleeper team The use of two drivers to operate a truck equipped with a sleeper berth; while one driver sleeps in the berth to accumulate the mandatory off-duty time, the other driver drives.

Slip seat operation A term used to describe a motor carrier relay terminal operation where one driver is substituted for another who has accumulated the maximum driving time hours.

Statistical quality control (SQC) Method of analyzing deviations in manufactured materials, parts and products.

Supply Consumable item that does not become part of the final product; quantity of a product that will be offered to the market by a supplier or suppliers at various prices for a specified period.

-T-

Tariff A publication that contains a carrier's rates, accessorial charges and rules.

TL Truckload, a shipment weighing the minimum weight or more. A rate reduction is given a TL size shipment.

TOFC Trailer-on-flatcar; also, known as piggyback.

Total quality management (TQM) Coordination throughout the entire organization of efforts to provide high quality products, processes and services in order to ensure customer satisfaction.

Toto authority A private motor carrier receiving operating authority as a common carrier to haul freight for the public over the private carrier's back-haul; this type of authority was granted in the Toto Company in 1978.

Tracing Determining where a shipment is during the course of a move.

Traffic management The management of those activities associated with buying and controlling transportation services for a shipper or consignee or both.

Transportation Laws Congress passes and the President signs the bill making it law. Domestic surface transportation laws are found in 49 USC.

Transportation regulations Many laws passed and found in the USC allow regulatory agencies to fill in the gaps left by the laws. Agencies develop administrative regulations. Federal Regulations are found in the CFR.

Transit time The total time that elapses from pickup to delivery of a shipment.

Transit privilege A carrier service that permits the shipper to stop the shipment in transit to perform a function that changes the commodity's physical characteristics but to pay the through rate.

Tying contracts A contract that requires the recipient of goods to accept other goods as part of a packaged arrangement.

-U-

Unbundling Reducing the bundle of services that comes with the basic product.

United States Code (USC) A compilation of the federal laws that are passed by Congress and signed by the President. Domestic surface laws are found in Title 49 USC. The revised Interstate Commerce Act is also part of Title 49.

Uniform Commercial Code (UCC) A model law developed for individual states to adopt in order to bring about conformity to contract law. Articles 2-7 address issues concerning contracting and liability which could influence the shipper-carrier relationship.

-V-

Value of service pricing Pricing according to the value of the product being transported, third degree price discrimination; demand-oriented pricing; charging what the traffic will bear.

Variable cost A cost that fluctuates with the volume of business.

-V-

Working capital Refers to a firm's investment in short-term assets ­ cash, short-term securities, accounts receivable and inventories. Gross working capital is defined as a firm's total current assets. Net working capital is defined as current assets minus current liabilities. If the term "working capital" is used without further qualification, it generally refers to gross working capital.

-Y-

Yield The return on an investment; the internal rate of return.

-Z-

Zone pricing Modification of uniform delivered pricing that divides the United States (or the total market) into segments or zones and charges a flat freight rate to all customers in a given zone.