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Glossary of Shipping Terms


RFP – Request for Proposal

RFQ – Request for quotation.

RVNX – Abbreviation for "Released Value Not Exceeding." Usually used to limit the value of goods transported. The limitation refers to carrier liability when paying a claim for lost or damaged goods.

Rag Top – A slang term for an open-top trailer or container with a tarpaulin cover.

Rail Division – The amount of money an ocean carrier pays to the railroad for overland carriage.

Rail Grounding – The time that the container was discharged (grounded) from the train.

Ramp-to-Door – A movement where the load initiates at an origin rail ramp and terminates at a consignee's door.

Ramp-to-Ramp – A movement of equipment from an origin rail ramp to a destination rail ramp only.

Ramp – Railroad terminal where containers are received or delivered and trains loaded or discharged. Originally, trailers moved onto the rearmost flatcar via a ramp and driven into position in a technique known as "circus loading." Most modern rail facilities use lifting equipment to position containers onto the flatcars.

Rate Basis – A formula of the specific factors or elements that control the making of a rate. A rate can be based on any number of factors (i.e., weight, measure, equipment type, package, box, etc.).

Reasonableness – Under ICC and common law, the requirement that a rate not be higher than is necessary to reimburse the carrier for the actual cost of transporting the traffic and allow a fair profit.

Rebate – An illegal form of discounting or refunding that has the net effect of lowering the tariff price. See also Malpractice.

Received for Shipment B/L: – - Validated at time cargo is received by ocean carrier to commence movement but before being validated as "Onboard".

Reconciled B/L: – - B/L set which has completed a prescribed number of edits between the shipper's instructions and the actual shipment received. This produces a very accurate B/L.

Reconsignment – Changing the consignee or destination on a bill of lading while shipment is still in transit. Diversion has substantially the same meaning.

Recourse – A right claim against the guarantors of a loan or draft or bill of exchange.

Red Label – A label required on shipments of flammable articles.

Reefer – Refrigerated container.

Related Points – A group of points to which rates are made the same as or in relation to rates to other points in group.

Relay – To transfer containers from one ship to another when both vessels are controlled by the same network (carrier) manager.

Remittance – Funds sent by one person to another as payment.

Restricted Articles – Articles handled only under certain conditions.

Restricted: – - A condition within the letter of credit which restricts its negotiation to a named bank.

Revenue Ton (RT) – A ton on which the shipment is freighted. If cargo is rated as weight or measure (W/M), whichever produces the highest revenue will be considered the revenue ton.Weights are based on metric tons and measures are based on cubic meters.RT=1 MT or 1 CBM.

Reverse IPI – An inland point provided by an all-water carrier's through bill of lading in the U.S. by first discharging the container in an East Coast port. "

Revocable: – - An instrument that can be modified or cancelled at any moment without notice to and agreement of the beneficiary, but customarily includes a clause in the credit to the effect that any draft negotiated by a bank prior to the receipt of a notice of revocation or amendment will be honored by the issuing bank. Rarely used since there is no protection for the seller.

Revolving: – - An irrevocable letter issued for a specific amount; renews itself for the same amount over a given period.

Ro/Ro" – A shortening of the term, "Roll On/Roll Off." A method of ocean cargo service using a vessel with ramps which allows wheeled vehicles to be loaded and discharged without cranes. Also refers to any specialized vessel designed to carry Ro/Ro cargo.

Roll-on/Roll-off vessels: – - Ships specially designed to carry wheeled containers or trailers using interior ramps.

Rolling – The side-to-side (athwartship) motion of a vessel.

Roll – To re-book cargo to a later vessel.

Route – The manner in which a shipment moves; i.e., the carriers handling it and the points at which the carriers interchange.

Running Gear – Complementary equipment for terminal and over-the-road handling containers.