Shipping and freight
forwarding glossary

Term	Definition
ABC Analysis	ABC analysis is an inventory management method used to categorize inventory based on its importance. The ABC classification goes from A to C, with A being the most important and C being the least important.
Account Payable	Accounts payable is a company’s financial obligation to pay money to another company or individual.
Account Receivable	The money owed to a business for products or services supplied to or utilized by a client but not yet paid for is known as accounts receivable. Account receivable, in essence, is any sum of money that consumers owe for goods they purchased on credit.
Actual Time of Arrival	The Actual Time of Arrival (ATA) is when a shipment arrives at its destination.
Actual Time of Departure	The Actual time of departure is when a shipment leaves its point of origin.
Advance Filing Rule	When calling or transiting through the ports of China and Japan, all carriers are required by the Advance Filing Rule to electronically file a complete description of the cargo on board their ship. Twenty-four hours before the ship’s departure from the port of origin or the port of loading, a detailed explanation must be submitted. Without the express consent of the customs officials, the ship cannot be unloaded in any other situation.
Advice Note	An advice note from a supplier is a document that informs a customer that the goods ordered have been dispatched. This document’s purpose is to update the client on the status of his order.
Air Cargo	Air cargo is a term used to describe the process of shipping goods by plane. Air cargo is a fast and convenient way to transport goods, but it can be expensive.
Air Freight	Air freight is a term used to describe the transportation of goods by airplane. Airfreight is used by businesses and individuals to transport goods worldwide.
Airline Terminal Fee	An airline terminal fee is a fee paid for all air shipments for handling the cargo.
Air Waybill	An air waybill serves as a receipt for goods shipped by air. The air waybill includes the name and address of the sender and receiver, description of the goods being transported, weight and dimensions of the cargo, name of the airline, flight number and date, and airport of departure and arrival.
All-Cargo Aircraft	An all-cargo aircraft is a plane used to transport only cargo, as opposed to a passenger plane carrying baggage and people.
Allocated Stock	An allocated stock is a stock assigned to a specific customer or purpose.
AMS Filing	AMS stands for Automated Manifest System. AMS Filing is the process of submitting data to the AMS system to comply with U.S. Customs and Border Protection regulations. The data that must be submitted includes information about the shipment, the shipper, the consignee, and the commodity being shipped.
Animal Transport	An animal transport vehicle is designed to move live animals from one location to another. Transports may be land-based, such as trucks and trailers, or air-based, such as airplanes and helicopters. Some transports are specially designed to carry specific types of animals, while others can carry a variety of animals.
Application Service Provider	Application service provider (ASP) is a company that provides computer-based services to customers over a network. Services provided can include e-commerce, Web site hosting, and database management.
Articulated Lorry	An articulated lorry is a vehicle that is made up of two separate parts that are joined together by a hinge. This allows the lorry to make tight turns and maneuver in small spaces. Buses, trams, and trains are examples of articulated lorries.
ASP	ASP stands for Application Service Provider. An ASP is a company that provides access to software and related services over the Internet. The security provided and the wide range of services are the critical ASP benefits.
Assemble to Order	Assemble to order is a manufacturing process in which a product is only assembled after receiving a customer order. This is, in contrast, to make-to-stock manufacturing, in which products are manufactured in advance and stored in inventory until a customer order is received.
ATA Carnet	The ATA Carnet is an international customs document that allows businesses to import temporarily and export goods for trade shows, conventions, and other commercial events without paying import duties or export taxes.
Authorized Economic Operator	An Authorized Economic Operator (AEO) is a business that has been certified by the customs authority as being compliant with international standards for security and safety and which therefore enjoys certain benefits in terms of customs procedures.
Automatic Identification System	The Automatic Identification System (AIS) is a shipboard Automatic Tracking System (ATS) mandated by the International Maritime Organization (IMO) for commercial vessels over 300 gross tons and all passenger vessels, regardless of size.
Automatic Small Parts Warehouse	An automatic small parts warehouse is a storage facility that holds small parts and components. These warehouses are typically used by manufacturing and assembly plants to store parts used in production.
Average Storage Period	The average storage period is the average time that inventories and capital are tied up in the warehouse. The average storage period shows how many consumption periods an average stock covers.