Glossary of Terms

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Glossary of Terms on Logistics

Understand frequently used logistics terminology with our comprehensive glossary.

  • Freight: Transportation fee or load carried.
  • Cargo: Commercial load, goods.
  • Consignment: Shipment, shipment.
  • Shipment: Transportation process.
  • Carrier: Carrier company (land, air, sea, rail).
  • Freight Forwarder: Logistics company that organizes the transportation.
  • 3PL (Third-Party Logistics): Outsourced logistics service provider.
  • 4PL (Fourth-Party Logistics): Logistics service provider that manages all supply chain processes.
  • Reverse Logistics: Management of returns and recycling processes.
  • Supply Chain Management (SCM): Supply chain management.
  • Lead Time: The time from order to delivery.

Container Transportation

  • FCL (Full Container Load): Full container loading.
  • LCL (Less than Container Load): Partial (a portion of the container is rented).
  • OOG (Out of Gauge): Load exceeding standard dimensions.
  • Flat Rack Container: Open container for large and heavy loads.
  • Open Top Container: Open-top container, loading is done by crane.
  • Reefer Container: Refrigerated container.

Delivery and Documents

  • B/L (Bill of Lading): Bill of lading, contract of carriage and delivery document.
  • SWB (Sea Waybill): Delivery document ensures direct delivery of the goods to the recipient.
  • Demurrage: Penalty imposed for the container remaining in the port too long.
  • Detention: Penalty imposed for the container remaining in the field too long.

Ship and Cargo Types

  • Breakbulk Cargo: Non-containerized partial cargo transportation.
  • Ro-Ro (Roll-on/Roll-off): Type of ship in which wheeled loads are transported.
  • Vessel: Ship.
  • Deadweight (DWT): Maximum carrying capacity of the vessel.
  • TEU (Twenty-foot Equivalent Unit): 20-foot container unit.
  • FEU (Forty-foot Equivalent Unit): 40-foot container unit.

Those Suitable for Ocean and Multiple Shipments:

  • EXW (Ex Works): Seller delivers the goods at its own facility. All carriage, insurance and risk are the responsibility of the buyer.
  • FCA (Free Carrier): Seller delivers the goods to the carrier at the designated place. Risk passes to the buyer at this point.
  • CPT (Carriage Paid To): Seller pays the carriage, but risk passes to the buyer when the goods are handed over to the carrier.
  • CIP (Carriage and Insurance Paid To): In addition to CPT, seller obtains insurance. Risk passes to the buyer upon delivery to the carrier.
  • DAP (Delivered at Place): The goods are delivered to the buyer at the destination. Customs duties and import procedures are the responsibility of the buyer.
  • DPU (Delivered at Place Unloaded): The seller delivers the goods by unloading them at the specified place. Customs procedures are the responsibility of the buyer.
  • DDP (Delivered Duty Paid): The seller delivers the goods, paying all transportation and customs costs. The buyer only receives the product.
  • FAS (Free Alongside Ship): The seller brings the goods to the ship’s berth. The risk passes to the buyer there.
  • FOB (Free On Board): The seller loads the goods onto the ship. The risk passes to the buyer from this point on.
  • CFR (Cost and Freight): The seller pays the freight, but the risk passes to the buyer when the goods are loaded onto the ship.
  • CIF (Cost, Insurance and Freight): In addition to CFR, the seller also takes out insurance. The risk is again transferred to the buyer at loading onto the ship.
  • AWB (Air Waybill): Air waybill.
  • ULD (Unit Load Device): Standard containers and pallets used in cargo loading.
  • OBC (On-Board Courier): Express transportation with hand carrier.
  • DGR (Dangerous Goods Regulation): Dangerous goods transportation rules.
  • Fuel Surcharge (FSC): Additional fee charged due to fuel difference.
  • Security Surcharge (SSC): Additional fee charged for security.
  • Transit Time: Duration of the transportation.
  • FTL (Full Truck Load): Full truck loading.
  • LTL (Less than Truck Load): Partial load transportation.
  • Groupage: Combined transportation of loads belonging to different customers.
  • CMR Document: International road transport bill of lading.
  • POD (Proof of Delivery): Proof of delivery document.
  • Minivan Express: Fast delivery with small vehicles.
  • ADR Cargo: Loads suitable for hazardous material transportation.
  • CIM (International Rail Consignment Note): Railroad bill of lading.
  • Intermodal Transport: Transporting cargo by more than one mode of transport (without changing containers).
  • Multimodal Transport: Transport using different modes of transport (single contract).
  • Incoterms: International trade delivery terms.
  • HS Code: International customs code for goods classification.
  • Customs Clearance: Customs procedures.
  • Bonded Warehouse: Bonded warehouse.
  • Duty: Customs tax.
  • Tariff: Tax rate or customs tariff.
  • MSDS (Material Safety Data Sheet): Safety data sheet for hazardous materials.
  • Back-to-Back Storage: Maximum capacity by placing shelves back to back.
  • Mezzanine Storage: Multi-storey shelving systems that increase storage space.
  • Cross-Docking: Products are directly transferred and sent without being taken to the warehouse.
  • Flow-Through Operations: Rapid shipment of products entering the warehouse, progress of processes without staying in the warehouse for a long time.
  • VMI (Vendor Managed Inventory): Model where the supplier manages stock and order processes.
  • FIFO / LIFO / FEFO:
  • FIFO: First In First Out (First in, first out).
  • LIFO: Last In First Out (Last in, first out).
  • FEFO: First Expired First Out (First out is the product approaching its expiration date).
  • SKT, LOT, Serial Number Tracking: Tracking of products with expiration date, lot and serial number.
  • VAS (Value Added Services): Additional services such as labeling, packaging, quality control.
  • Quick Product Backup: Fast supply of spare products.
  • ADR Storage: Special storage area for hazardous material products.
  • ETA (Estimated Time of Arrival): Estimated time for arrival.
  • ETD (Estimated Time of Departure): Estimated time for departure.
  • ATA / ATD:
  • ATA: Actual Time of Arrival.
  • ATD: Actual Time of Departure.
  • Tracking and Visibility: Tracking of cargo and shipment.
  • KPI (Key Performance Indicator): Performance indicators.
  • SLA (Service Level Agreement): Service Level Agreement.
  • Freight Collect: Freight paid by the buyer.
  • Freight Prepaid: Freight paid by the seller.