Frequently Asked Cargo & Logistics Questions

A quick reference guide to some commonly asked logistics and cargo shipping concerns

Q: What is advanced shipment notice?

A: This is a detailed document that provides information relating to shipment such as order information, its physical characteristics, carrier information, the type of packaging, order information, and even the estimated time of arrival. This notice is transmitted to a customer or consignee in prior to delivery.

Q: What is Cross-Docking and how does it work?

A: Fundamentally, it is the practice of unloading materials from an incoming transport and loading those materials in outbound vehicles, with very little or no storage in between. This tends to cut the costs of handling, its operating costs, and the storage of the materials.

Q: What is Distribution Requirements Planning (DRP)?

A: This is a system manages the flow of materials and inventory between firms, warehouses, and distribution centers.

Q: What is FOB (Free on Board) and FOB Destination?

A: This is a terms of agreement between a buyer and a seller which describe where transfer of ownership takes place. FOB destination is the responsibility of the goods sold to the seller until the shipment has been delivered to the buyer.

Q: What is a Foreign Trade Zone (FTZ)?

A: This is an area or zone set aside at or near an international hub, such as a port or airport, under the command of the U.S. Customs Service for holding duty free goods that are pending customs clearance.

Q: What sorts of waste constitutes as hazardous material?

A: Basically, hazardous material is any material or substance that is capable of posing a threat to the safety and health of people as well as property when stored on transported, as deemed by the Department of Transportation.

Q: What are Inventory Carrying Costs?

A: Inventory carrying costs is a monetary measurement that determines all the costs related with holding merchandise in storage. It is generally expressed as a percentage of the inventory value. These costs include warehousing, inventory-in-storage, obsolescence, deterioration or spoilage, taxes, insurance, depreciation, and handling costs.

Q: What is Inventory Deployment?

A: This is a technique for strategically placing inventory to meet certain levels of customer while reducing inventory and storage levels. Surplus inventory is replaced with information that is derived through examining supply, demand and inventory at rest and in motion.

Q: What does N.M.F.C. stand for and what does it do?

A: It stands for National Motor Freight Classification and it is a tariff that contains descriptions and classifications of merchandise and rules for domestic movement by motor carriers in the U.S.

Q: What are Less-Than-Truckload (LTL) Carriers?

A: They are trucking companies that combine and transport smaller shipments of cargo by making use of a network of terminals and relay points.

Q: What is Intermodal Transportation?

A: It is basically just transporting freight through the use of two or more modes of transportation.

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Frequently Asked Cargo, Freight, & Logistics Questions

Have other questions regarding the logistics process? With the numerous types of cargo and freight modes getting your goods or raw materials from start to finish is going to be a time consuming planning process. For all those extra questions you might need answered, visit our FAQ page to save yourself time dealing with the details of cargo, freight, and logistics.