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91 beneficial cargo owner (BCO). A BCO can be either the shipper/supplier/factory or the consignee/receiver/buyer, depending on the point in time and location at which product ownership and liability transfers between the two parties and according to the agreed on sales terms. Sales terms dictate, among other things, the party responsible for determining the routing and mode of transport. International Chamber of Com- merce (INCO) terms of sale are the most commonly used in international trade. Free on Board (FOB) and Free Alongside (FAS) are two common INCO terms. Class I railroad. The U.S. Surface Transportation Board has three classifications for railroads: Class I, Class II, and Class III. Class I railroads are those with operating revenues of at least $378.8 million (U.S. dollars) in 2009. Class I carriers typically operate in many different states and concentrate largely on long-haul, high-density intercity traffic lanes. There are seven Class I railroads: Burlington Northern Santa Fe, CSX, Canadian National, Canadian Pacific, Kansas City Southern, Norfolk Southern, and Union Pacific. third-party logistics service provider (3PL). A 3PL is a company that provides a vari- ety of transportation and logistics services to shippers, such as air freight forwarding, ocean freight forwarding, trucking, warehousing, and value-added services. 3PLs can be asset-based companies that own warehouses and trucks, or non-asset-based com- panies that lease facilities and equipment. transloading. Transloading is the process by which a 3PL transfers the contents of an import ocean container directly into a 53-foot domestic truck or rail container at a U.S. gateway port for onward movement to a store or distribution center. The 3PL typically arranges for the inland transportation with the motor carrier or intermodal marketing company (IMC) on behalf of the importer. Importers select transloading into domestic equipment to reduce the per unit cost of inland transportation from GLOSSARY
92 INTEGRATING FREIGHT CONSIDERATIONS INTO THE HIGHWAY PLANNING PROCESS the U.S. gateway port to the inland destination because the contents of three ocean containers can generally fit into two 53-foot domestic truck or rail containers. Trans- loading usually takes place at large gateway ports, including the ports of Los Angeles, Long Beach, New York and New Jersey, and Savannah where ocean carriers make first vessel calls on their vessel itineraries. value-added services (VAS). 3PLs perform VAS for BCOs, usually those with higher value cargo, to make the products floor-ready for sale. VAS activities include the following: ⢠Picking and packing specific cartons or units from cartons per the BCOâs alloca- tion and assembling the cartons or units into a customer order for onward move- ment by truck. ⢠Applying and/or scanning barcode labels. ⢠Applying price tickets to products. ⢠Performing product quality control. ⢠Reboxing and relabeling. ⢠Kitting individual components into an assembled product for retail sale (e.g., com- bining a cell phone, case, and charger).
