- 01 August 2023
Freight Basics - Freight Terminology
Freight shipping involves many different terms, learn what these mean to you here in our terminology glossaryAir & Ocean Terminology
Bonded Warehouse
A Customs approved facility that is used to store or manufacture goods on which payment of duties is deferred until the goods enter the Customs Territory. The goods are not subject to duties if re-shipped to foreign points
Buyer’s Consolidation
Carnet
Chargable Weight
Freight charges are charged out on the chargeable weight of the shipment. This can either be the actual gross weight or the volumetric weight – whichever is greater. Working out the chargeable weight of a shipment is easy.
Airfreight – Take the cubic measurement of you shipment and multiply by 167
EG – Your shipment is 0.45cbm/25kgs, 0.45cbm X 167 = 75.15
The actual weight is 25kgs, the volumetric weight is 75.15kgs making the volumetric weight the chargeable weight
Sea Freight - Ratio is 1CBM = 1 tonne
Commercial Invoice
A commercial invoice is a document used in foreign trade. It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
Consolidation
Collecting and packing a lot of smaller consignments from different suppliers to be moved as one shipment to one destination. Each consignment will have its own house-bill number which will then be listed under one Master House Bill. This will allow the receiver to have all shipments to be customs cleared
Cross Docking
Cross docking allows your products to arrive and then be distributed to the end user with minimal handling and storage time. We label and consolidate multiple international orders into a full container at origin, unload at a Mainfreight depot on arrival and deliver direct to your customers. This service reduces your inventory holding costs and improves delivery time and service to your customers.
Demurrage
Import – The time between when the container is unloaded from the vessel to the pick up off the wharf.
Export – The time between when the loaded container is delivered to the port to the container being loaded on the vessel
The shipping lines give you a set amount of time for this to be done. Once this allotted time is up charges will apply per day thereafter
Detention
Import – The time between when the full container is taken from the port to the time is it returned empty
Export – The time between when the empty container is taken to the customer to its return to the port full
The shipping lines give you a set amount of time for this to be done. Once this allotted time is up charges will apply per day thereafter
Domestic Terminology
Endorsement
Outturn
The process of unloading the freight at the destination depot ready to be allocated to a delivery truck
Warehousing Terminology
Inventory Record Accuracy (IRA)
The measure of how closely official inventory records match the physical inventory.
Our team break each customer’s products into groups. Each group IRA is completed once a week to ensure that the team can identify discrepancies before stock take.
Warehouse transfers
Pick Faces
PIFOT (Picked In Full On Time)
The measurement of product being picked in full (quantity, product, batch) on time. The KPI is met when complete order is delivered on the requested delivery date.
Warehouse Transfer
Customers may request certain product moved from our Melborne warehouse to our Brisbane warehouse.
This shortens lead time for their product when ordered by their customer.