O

Obsolete Stock
The products or materials that cannot be or is unlikely to be used in future processes and which is to be sold or disposed of through the usual outlets.

Offshore
Contracting work carried out at sea (e.g. drilling for oil).

Oil Bulk Ore Vessel
Abbreviation: OBO-Vessel
A vessel, designed for the carriage of either dry or liquid bulk cargo.

On-Board Computer
Cab-mounted device which electronically or mechanically records data such as truck speed, engine rpm, idle time and other information useful to trucking management.

Oncarriage
The carriage of goods (containers) by any mode of transport to the place of delivery after discharge from the ocean vessel (main means of transport) at the port (place) of discharge.

Ontology
A Yahoo-like hierarchy of relationships and a glossary used as a standardization device to describe goods and services and to facilitate commerce in a Net market. (See normalize.)

One Way Pallet
See disposable pallet.
Note: The addition 'One Way' has nothing to do with the number of pallet sides in which the forks of e.g. a fork lift can enter, as opposed to the two and four way pallets.

Open Order
See Backlog.

Open Sided Container
Shipping container with frames with wire-mesh at the sides covered by means of a tarpaulin which can be dropped down to give unrestricted access to the sides of the container for loading or discharging.

Open Top Container
A freight container similar in all respects to a general purpose container except that it has no rigid roof but may have a flexible and movable or removable cover, for example one made of canvas or plastic or reinforced plastic material normally supported on movable or removable roof bows.

Operating Efficiency
A ratio of the actual output of a piece of equipment, department, or plant as compared to the planned or standard output.

Operations Research
The development and application of quantitative techniques to the solution of problems. More specifically, theory and methodology in mathematics, statistics, and computing are adapted and applied to the identification, formulation, solution, validation, implementation, and control of decision making problems.

Operator
The party responsible for the day to day operational management of certain premises such as ware-houses, terminals and vessels.

Optimal Trim
The best calculated TRIM related to speed engine capacity, fuel consumption for a specific sailing condition.

Optimization
Achieving the best possible solution to a problem in terms of a specified objective function.

Option
One of a limited range of choices or features that is offered to a customer when purchasing an otherwise basic standard product and that has to be an integral part of the product (used in commercial trading).

Optional Cargo
Cargo of which the final destination is not known at the moment of booking but will be indicated during the transport.

Optional Port
A port of which it is not known whether or not it will be called by a vessel during a voyage.

Order
A request to deliver specified quantities of goods or to render specific services. Order line
Each line on a customer's purchase order. An order line always contains one Stock Keeping Unit (SKU) only, but the number may vary.
 

Organization
An identifiable social unit with a particular responsibility which endeavour to achieve multiple goals by coordinated activities and relationships between members and objects.

Out of Gauge Cargo
Cargo which dimensions are exceeding the normal dimensions of a 20 or 40 feet container, e.g. overlength, overwidth, overheight, or combinations thereof.

Outsider
A carrier, which operates on a route served by a liner conference but which is not a member of that conference.

Outward Handling
The operations to be performed on outgoing goods from a production unit, both administrative and physical, starting at the moment forwarding orders can be executed to the moment of actual departure of the goods.

Overcarrier
A carrier within a consortium who carries cargo beyond the allotment distributed to him.

Overhaul
To extensively inspect and repair a system or component.

Overheight Cargo
Cargo, exceeding the standard height.

Overlength Cargo
Cargo, exceeding the standard length.

Overpack
A unit used by a single shipper to contain one or more packages and to form one handling unit for convenience of handling and stowage. Dangerous goods packages contained in the overpack must be properly packed, marked, labelled and in proper condition as required by the Regulations regarding dangerous goods (aircargo).

Overtime
Work beyond normal established working hours that usually requires a premium to be paid to the employees concerned.

Overwidth Cargo
Cargo, exceeding the standard width.

Owner
The legal owner of cargo, equipment or means of transport.

Owner's container Code
See Container Prefix.

Owner-Operator
Trucker who owns and operates his own truck(s).

P

Package
Any physical piece of cargo in relation to transport consisting of the contents and its packing for the purpose of ease of handling by manual or mechanical means.
The final product of the packing operation consisting of the packing and its contents to facilitate manual or mechanical handling.
Synonym: Parcel.

Packaging
Materials used for the containment, protection, handling, delivery and presentation of goods and the activities of placing and securing goods in those materials.

Packing
Any container or other covering in which goods are packed.
Packing Instruction
Document issued within an enterprise giving instructions on how goods are to be packed.

Packing List
Document specifying the contents of each individual package.

Packing Unit
A type of package where a standard quantity of products of a specific product type can be packed and that requires no additional packaging for storage and shipment.

Pallet
A platform on which goods can be stacked in order to facilitate the movement by a fork lift or sling.

Pallet Convertor
Superstructure which can be applied to a pallet to convert it into either a box or post pallet.

Pallet Rack
A skeleton framework, of fixed or adjustable design, to support a number of individual pallet loads.

Pallet Truck
Pedestrian- or rider-controlled non-stacking lift truck fitted with forks.

Panamax Size
The maximum measurements and dimensions of a vessel capable to pass the Panama Canal.

Parcel
See Package.
 

Particular Average
A fortuitous partial loss to the subject matter insured, proximately caused by an insured peril but which is not a general average loss. Particular average only relates to damage and/or expenses which are exclusively borne by the owners of a vessel which has sustained damage as a result of e.g. heavy weather or by the owners of the cargo, which has been damaged in transit.

Partition
See Divider.

Payee
A party to whom a payment is made or owed.

Payer
A party who pays or is to pay.

Payload
The revenue-producing load carried by a means of transport.

Payment
That which discharges a debt.

Payment Against Documents
Instructions given by a seller to a bank to the effect that the buyer may collect the documents necessary to obtain delivery of the goods only upon actual payment of the invoice.

Performance Indicator
A variable indicating the effectiveness and/or efficiency of a process.

Performance Measurement
The comparison of the results of business processes with each other or with standards in order to know the effectiveness of these processes and/or the supportive actions.

Physical Distribution
Those activities related to the flow of goods from the end of conversion to the customer.

Physical Distribution Management
The planning execution and control of those activities which are related to the flow of goods from the end of conversion to the customer.

Pick and Pack
Taking goods out of a stock and packing them according to customer conditions.

Pick Order
An order to pick certain quantities of goods out of a stock.

Pick Up and Delivery
A service concerning the collection of cargo from the premises of the consignor and the delivery to the premises of the consignee.

Picking
Taking products or components out of a stock.

Picking List
A list used to collect items from stores needed to fulfil an order.
Synonym: Material issue list, Kitting list.

Pier
See quay.

Piggyback
The carriage of road vehicles and trailers on railway wagons.
Synonym: Huckepack Carriage.

Pilferage
Petty stealing of goods from a ship's hold, cargo shed or warehouse.

Pipeline
A line of pipes for conveying liquids and gasses.
The physical goods flow from a supplying organization to a receiving organization.

Pipeline Inventory
The amount of goods in a pipeline: the sum of loading stock, goods in transit and receiving stock.
Synonym: Floating Stock.

Place of Acceptance
See place of receipt.

Place of Delivery
The location where a consignment (shipment) is delivered to the consignee viz. the place where the carrier's liability ends for the transport venture.

Place of Receipt
The location where a consignment (shipment) is received by the carrier from the shipper viz. the place where the carrier's liability for transport venture commences.
Synonym: Place of Acceptance.

Placement
The activity of positioning an object or goods in a chosen location or position.

Planning
The setting of goals over a certain time and the determination of how to achieve these goals and with what resource.

Planning Horizon
The period of time to which a certain particular plan relates.

Platform
The bare floor of a container, suitable for the carriage of uncontainerable cargo, as several platforms can be placed together to provide a larger base. Plated for the carriage of heavy goods. 20' and 40'.

Platform
The area on an airport where aircrafts are parked for embarkation and/or loading and discharging purposes (aircargo).
Synonym: Apron, Ramp.

Platform Body
A truck or trailer without ends, sides or top but with only a floor.

Plimsoll Mark
A mark, welded on both sides of the vessel, which gives the limit to which a vessel may be loaded, depending on the specific gravity of the water in which the vessel is situated.

Pontoon
A vessel with flat deck and a shallow draft.

Pool
The shared use of e.g. equipment by a number of companies, which make together the investments in the equipment mentioned.

Point Value
The point value can be seen as the relative value of an empty container of a certain size type in a depot location.
The system serves to quantify the imbalance costs resulting from a full container move and are the result of empty optimization calculations.
Point values are created on forecasted container flows between depot locations.
They are calculated taking into account a.o. the forecasted imbalances plus repositioning, storage and container costs for empty moves and expressed in USD.
Note: In the various computer systems point values are used to calculate the imbalance charge or credit for a particular container flow. This charge or credit is the difference in point values between start and end depot location.

Poop
Aft part of a vessel where the steering engine is located.

Port
Harbour having facilities for vessels to moor and load or discharge.
Left side of a vessel when facing towards the front or forward end.

Port of Call
Place where a vessel actually drops anchor or moors during a certain voyage.

Port of Discharge
The port where the cargo is actually discharged (unloaded) from the sea (ocean) going vessel.

Port of Loading
The port where the cargo is actually loaded on board the sea (ocean) going vessel.

Portal Crane
A type of gantry crane with vertical legs of sufficient height and width to permit vehicles or railroad equipment to pass between the legs.

Portlog
A statement concerning a vessel containing the actual arrival and departure time used tugs, draft, deadweight, quantity of discharged and loaded goods/containers and any other important particulars.

Positioning
The transport of empty equipment from a depot to shipper's premises or from consignee's premises back to a depot as the empty leg of a carrier haulage transport

Postal Code
A national code maintained by the Postal Authorities designed to indicate areas and accumulated addresses to facilitate sorting and the delivery of mail and other goods.
Note: The coding system is different in the various countries throughout the world. In the Netherlands the code consists of 4 figures and 2 characters.

Practice
That what has become customary as a result of repeated acts.

Precarriage
The carriage of goods (containers) by any mode of transport from the place of receipt to the port (place) of loading into the ocean vessel (main means of transport).

Precarrier
The carrier by which the goods are moved prior to the main transport.

Preshipment Inspection
Abbreviation: PSI
The checking of goods before shipment for the purpose of determining the quantity and/or quality of said goods by an independent surveyor (inspection company) for phytosanitary, sanitary and veterinary controls.
Presently there is a tendency by developing countries to use the inspection also for the purpose of determining whether the price charged for certain goods is correct.

Pre-slinging
The act of placing goods in slings which are left in position and used for loading into and discharging from a conventional vessel.

Pre-trip Inspection
Abbreviation: PTI
A technical inspection of Reefer containers prior to positioning for stuffing.

Price transparency
When both buyer and seller know pricing. Net markets can eliminate arbitrage situations when only a broker knows the price. Net markets can result in sellers making more money and buyers paying a lower price, since broker margins are reduced.

Principal
Person for whom another acts as agent.

Principal Carrier
See Responsible Carrier.

Principal Corporate Body
The company that owns the various subsidiary companies or branches acting as customers on their own and is registered as the corporate customer for statistical purposes.

Priority Order
An order which is identified as taking precedence over other orders to ensure its completion in the minimum time.
Synonym: Urgent order, Rush order.

Private Carrier
Business which operates trucks primarily for the purpose of transporting its own products and raw materials. The principle business activity of a private carrier is not transportation.

Private Warehouse
A warehouse operated by the owner of the goods stored there.

Pro Forma Invoice
Draft invoice sent to an importer by the exporter prior to order confirmation and shipment to assist in matters relating to obtaining import licences or foreign exchange allocations, or simply to advise the value of a consignment so that letters of credit can be opened.

Procurement
The activities which ensure the availability of the material and or services in the desired quantity, quality, place and time from the supplier.

Procurement hub
An MRO procurement marketplace for routine purchases such as office supplies, travel services, or computers needed to run a business but not central to the business's output. A type of horizontal or functional market. Examples: Ariba, Commerce One. (Related terms: MRO, horizontal market)

Procurement Logistics
Control of the flow of materials up to the manufacturing process.

Product
A result, end item or output from a certain process.

Product Chain
All phases in the transformation- or production process of one product.

Product Life Cycle
The period of time between the introduction date and end date of a product in the market.
Note: Phases are introduction, growth, maturity, saturation, decline & end.

Production
The conversion of materials and or assembly of components to manufacture goods, products or services.
The total quantity of goods manufactured or to be manufactured in a particular period of time expressed in quantitative or financial terms. (The term manufacturing is often used specifically for physical operations resulting in a product).

Productivity
Relative measure of output of labour hour or machine hour.

Profit Centre
An organizational unit which will be held responsible for its own profits and losses.

Project Cargo
Quantity of goods connected to the same project and often carried on different moments and from various places.

Proof of Delivery
The receipt signed by the consignee upon delivery.

Proper Shipping Name
A name to be used to describe particular goods on all shipping documents and notifications and, if appropriate, on the goods.

Propriety Standard
A standard which has been endorsed by industry or government as the accepted international standard, but not officially approved by an accredited standards body such as ISO.

Protection and Indemnity Club
Abbreviation: P & I club.
A mutual association of shipowners who provide protection against liabilities by means of contributions.

Protocol
A statement drawn up to attest certain events.

Public Authorities
The agencies or officials in a state responsible for the application and enforcement of the laws and regulations of that state. Source: IMO.

Public Warehouse
A warehouse which is available to all companies and persons who wish to make use of the services offered.

Pull Distribution System
A system to provide warehouses with new stock on request of the warehouse management.

Purchase Order
A definite order for one or more deliveries by the supplier to the customer of a specific quantity of goods, materials, services or products under agreed terms of delivery and prices.
 

Purchasing hub
Buyer-centric mediators that aggregate demand from small buyers to negotiate better terms with large sellers. Can be horizontal (operating supplies) or vertical manufacturing. Used for spot purchasing (using exchange or auction) or systematic purchasing (catalog mechanism). The horizontal purchasing hubs use horizontal logistics (UPS, for example), while the vertical purchasing hubs generally need vertical logistics (for hazardous chemicals, for example) work with existing distributors.

Push Distribution System
A system to provide warehouses with new stock upon decision of the supplier of the goods.