Logistics Glossary
226+ terms covering freight forwarding, customs, shipping, and supply chain management.
A
Accessorial Fees
Additional fees charged by carriers for services beyond standard transportation.
Actual Gross Weight
The total weight of a shipment including the product itself packaging materials pallets and any other shipping aids.
Advanced Manifest System (AMS)
A U.S. Customs system that requires cargo data (such as shipper consignee and cargo details) to be electronically submitted prior to a vessel's arrival.
Air Cargo
Goods transported via air carriers typically for urgent shipments or high-value products.
Air Waybill (AWB)
A document issued by an airline that serves as a receipt of goods for shipment and provides details about the cargo shipper consignee and conditions of transportation.
All-Risk Insurance
A comprehensive insurance policy that offers full coverage for cargo loss or damage except for exclusions explicitly stated in the policy.
Arrival Notice
A document sent by a carrier or freight forwarder to notify the consignee or recipient of the impending arrival of their shipment.
Assembling
The process of grouping smaller shipments or individual items into one consolidated shipment to improve efficiency and reduce costs.
ATA Carnet
An international customs document that allows the temporary export and import of commercial samples professional equipment and goods for trade fairs without incurring duties or taxes.
Automated Commercial Environment (ACE)
A U.S. Customs and Border Protection (CBP) electronic system that facilitates trade and security for importers and exporters.
Automated Export System (AES)
An electronic filing system managed by the U.S. Census Bureau for submitting export shipment details.
Automated Manifest System (AMS)
A cargo tracking system mandated by U.S. Customs that requires carriers and forwarders to electronically transmit shipment details before goods arrive in the United States.
Average (General Average, Particular Average)
A maritime shipping term referring to shared financial responsibility for losses incurred during a sea voyage.
Axle Load
The weight that is supported by a specific axle of a truck or vehicle.
B
Backhaul
The return leg of a transportation route often involving a truck returning to its point of origin with a new shipment.
BAF (Bunker Adjustment Factor)
A surcharge applied by carriers to compensate for fluctuating fuel prices.
Barge
A flat-bottomed vessel used to transport cargo via inland waterways rivers or canals.
Batching
The process of grouping cargo or shipments based on similar characteristics (e.g. destination size or type) for streamlined processing.
Bill of Entry
A legal document submitted by importers or customs brokers to authorities declaring the nature quantity and value of imported goods.
Bill of Lading (BOL)
A crucial shipping document that serves as a contract between the shipper and carrier.
Blind Shipment
A shipment in which the identity of the shipper consignee or both is kept confidential.
Bonded Carrier
A transportation company authorized to move cargo under customs bond.
Bonded Goods
Imported cargo that is stored in a bonded warehouse under customs supervision until duties are paid or the goods are exported.
Bonded Warehouse
A storage facility authorized by customs authorities where imported goods can be stored without immediate payment of duties or taxes.
Breakbulk
Cargo that is loaded and transported individually rather than in containers or bulk form.
Bulk Cargo
Unpackaged cargo that is transported in large quantities such as coal grain cement or oil.
Bulk Container
A specialized container designed for transporting bulk materials such as grains powders or chemicals.
Bunker Fuel
A type of heavy fuel oil used by ships.
Buyer's Consolidation
A service offered by freight forwarders that consolidates multiple shipments from different suppliers into a single container for delivery to one buyer.
C
CAF (Currency Adjustment Factor)
A surcharge applied by carriers to account for currency fluctuations between the origin and destination countries.
Cargo Insurance
A form of protection that covers loss or damage to cargo during transit.
Cargo Manifest
A detailed list of all cargo loaded onto a ship aircraft or truck.
Carnet
A document that allows for the temporary importation of goods without the need to pay duties or taxes.
Carrier
A company or individual responsible for transporting goods from one location to another.
CBF (Cubic Feet)
A volumetric measurement used in freight to calculate the space occupied by cargo.
Certificate of Origin
An official document certifying the country in which goods were manufactured.
CFS (Container Freight Station)
A designated warehouse or facility where LCL (Less than Container Load) shipments are consolidated or deconsolidated before being moved to their final destination.
Charter Party
A contract between a shipowner and a charterer that outlines the terms for leasing a vessel for cargo transportation.
Chassis
A specialized trailer frame designed to carry shipping containers during road transport.
CIF (Cost, Insurance & Freight)
An Incoterm that places the responsibility for transportation costs insurance and shipment delivery to the destination port on the seller.
CMR (Convention on the Contract for the International Carriage of Goods by Road)
An international convention that standardizes legal responsibilities for road transport across participating countries.
COFC (Container on Flat Car)
A rail transport method in which shipping containers are directly placed on flat railcars without the use of a chassis.
Cold Chain
A temperature-controlled supply chain designed for the storage and transportation of perishable goods such as food pharmaceuticals and chemicals.
Commercial Invoice
A detailed document provided by the exporter that outlines the value quantity and description of the shipped goods.
Commodity Code
A numerical code used to classify goods for import and export purposes.
Consignee
The party designated to receive the cargo upon delivery.
Consignment
A shipment of goods sent by a seller (consignor) to a recipient (consignee) under an agreement where payment is made only after the goods are sold.
Consolidation
The process of combining multiple smaller shipments from various shippers into a single container or truckload.
Container Freight Station (CFS)
(See Term 37) A warehouse facility where cargo is consolidated or deconsolidated for import/export shipments.
Container Load Plan (CLP)
A detailed layout showing how cargo is arranged inside a shipping container to maximize space and ensure proper weight distribution.
Container Seal
A tamper-evident security device used to lock the container doors after they are packed.
Customs Bond
A financial guarantee provided to customs authorities ensuring that all duties taxes and fees will be paid for imported goods.
Customs Broker
A licensed professional or company that handles customs documentation tariff classification and compliance requirements on behalf of importers and exporters.
Customs Clearance
The process of submitting documentation paying duties and meeting regulatory requirements to gain approval for goods to enter or leave a country.
Customs Declaration
A formal statement provided to customs authorities that details the contents value and origin of imported or exported goods.
Customs Duty
A tax imposed on imported or exported goods by a country's customs authorities.
D
Dangerous Goods (DG)
Materials or substances that pose a risk to health safety property or the environment.
DDP (Delivered Duty Paid)
An Incoterm in which the seller assumes full responsibility for delivering the goods to the buyer's designated location including all costs duties and taxes.
DDU (Delivered Duty Unpaid)
An Incoterm that requires the seller to deliver goods to the buyer's designated location excluding import duties and taxes.
Deadweight Tonnage (DWT)
Deadweight Tonnage refers to the total carrying capacity of a vessel including cargo fuel water crew passengers and supplies.
Declared Value
The monetary value that the shipper assigns to a shipment which is used to determine liability limits in the event of loss damage or theft.
Demurrage
A fee imposed by carriers when cargo remains at the port or terminal beyond the agreed-upon free storage period.
Detention
A fee charged by carriers when a shipping container is kept outside the port or terminal beyond the allocated free time for loading unloading or storage.
Devanning
The process of unloading cargo from a shipping container.
Direct Consignment
A shipping method where cargo is sent directly from the origin to the consignee without being stored at intermediary warehouses or distribution centers.
Dispatch
The process of coordinating and releasing a shipment for transportation.
Distribution Center (DC)
A warehouse facility designed for receiving storing and distributing goods.
Dock Receipt
A document issued by a carrier or terminal upon receiving cargo for shipment.
Door-to-Door
A shipping service in which the freight forwarder manages the entire transportation process from the point of origin to the consignee's final address.
Duty Drawback
A refund or rebate provided by customs authorities to importers or exporters for duties paid on imported goods that are subsequently re-exported.
Dwell Time
The amount of time cargo spends at a port terminal or warehouse before continuing its journey.
Dynamic Routing
A flexible shipping strategy that adjusts delivery routes in real-time based on changing conditions such as traffic weather or delays.
E
EDI (Electronic Data Interchange)
A standardized electronic communication system that allows businesses to exchange documents like invoices purchase orders and shipping details directly between computer systems.
Electronic Export Information (EEI)
A mandatory electronic filing system for exporters shipping goods valued at $2500 or more from the United States.
Electronic Manifest System (EMS)
A digital platform that allows carriers to electronically submit cargo information to customs authorities before shipment arrival.
Endorsement
A written authorization on a document (e.g. Bill of Lading) that transfers ownership or legal rights for a shipment to another party.
Entry Summary
A formal customs document filed by importers to declare shipment details including cargo description value origin and tariff classification.
EORI Number (Economic Operators Registration and Identification)
A unique identification number required for businesses importing or exporting goods within the European Union (EU).
ETA (Estimated Time of Arrival)
The anticipated date and time that a shipment is expected to reach its destination.
ETD (Estimated Time of Departure)
The scheduled date and time a shipment is expected to depart from its point of origin.
Ex-Works (EXW)
An Incoterm that places maximum responsibility on the buyer.
Export Broker
An intermediary that facilitates transactions between buyers and sellers in international trade.
Export Declaration
A formal document submitted to customs authorities that provides detailed information about exported goods including product descriptions values and destination countries.
Export License
A government-issued permit that authorizes the export of specific goods or technologies to designated countries.
Export Packing List
A detailed document that outlines the contents dimensions and weight of exported cargo.
F
FAF (Fuel Adjustment Factor)
A surcharge applied by carriers to compensate for fluctuations in fuel prices.
FAK (Freight All Kinds)
A freight rate applied uniformly across multiple types of goods shipped in the same container.
FCA (Free Carrier)
An Incoterm in which the seller is responsible for delivering the goods to a designated carrier or location with all risks and costs transferring to the buyer at that point.
FCL (Full Container Load)
A shipping method where a single consignee books an entire container for their cargo.
Federal Maritime Commission (FMC)
The Federal Maritime Commission is an independent U.S. government agency responsible for regulating international ocean transportation for cargo moving in and out of the United States.
FEU (Forty-Foot Equivalent Unit)
A standard unit of measurement used in the shipping industry to describe the capacity of container ships and terminals.
Final Destination
The ultimate delivery point where the consignee receives the cargo.
Flat Rack Container
A specialized shipping container with collapsible side walls designed for transporting oversized or heavy cargo such as machinery vehicles or construction materials.
FMC (Federal Maritime Commission)
(See Term 91) The FMC regulates ocean carriers ensuring that they follow fair trade practices and maintain competitive rates.
FOB (Free on Board)
An Incoterm that indicates the seller is responsible for delivering the goods to the designated port where the buyer assumes responsibility for transportation insurance and import duties.
Force Majeure
A legal term referring to unforeseen and uncontrollable events that prevent a party from fulfilling their contractual obligations.
Forwarder's Cargo Receipt (FCR)
A non-negotiable document issued by a freight forwarder that confirms the receipt of goods from the shipper.
Free Trade Agreement (FTA)
A treaty between two or more countries that reduces or eliminates tariffs duties and trade barriers.
Free Zone
A designated area within a country where goods can be imported stored processed or re-exported without being subject to customs duties.
Freight Consolidation
The process of combining multiple smaller shipments into one larger shipment to maximize space utilization in a container or truck.
Freight Forwarder
A company or agent that arranges the transportation of goods on behalf of shippers.
G
Gateway
A major port airport or border crossing that serves as the primary entry or exit point for cargo moving between countries.
General Average
A maritime law principle that requires all cargo owners to proportionally share the costs of damages or losses incurred during a voyage when an intentional sacrifice was made to save the ship or other cargo.
General Cargo
Goods that are packaged and shipped as individual units rather than in bulk.
GRI (General Rate Increase)
A rate adjustment implemented by ocean carriers to compensate for rising operational costs fuel prices or increased demand.
Gross Tonnage (GT)
A measurement of a ship's total internal volume.
Ground Handling
The physical handling of cargo baggage and aircraft services at airports.
Groupage
A freight service in which multiple small shipments from different shippers are consolidated into a single container for international shipping.
H
Harbor Maintenance Fee (HMF)
A fee imposed by U.S. Customs on cargo imports arriving at U.S. coastal ports.
Haulage
The inland transportation of cargo between ports terminals or customer facilities.
HAWB (House Air Waybill)
A document issued by a freight forwarder that covers the transport of cargo under a master air waybill.
Hazardous Materials (HazMat)
Substances that pose a risk to health property or the environment during transportation.
Heavy Lift
Cargo that exceeds standard size or weight limits requiring specialized equipment for handling.
House Bill of Lading (HBL)
A document issued by a freight forwarder that functions as a contract of carriage for consolidated shipments.
HS Code (Harmonized System Code)
A standardized numerical code used to classify goods in international trade.
I
IATA (International Air Transport Association)
A global trade association for airlines that sets industry standards for air transportation.
IBC (Intermediate Bulk Container)
A durable reusable container designed to transport or store bulk liquids chemicals or powders.
Import Declaration
A document filed with customs authorities that provides detailed information about imported goods.
Import Duty
A tax imposed on goods imported into a country.
Importer Security Filing (ISF)
The Importer Security Filing (ISF) commonly referred to as \10+2\" is a mandatory filing required by U.S. Customs and Border Protection (CBP) for shipments entering the United States by ocean freight."
In-Bond Shipment
A type of shipment that moves under customs bond before the import duties and taxes are paid.
Incoterms (International Commercial Terms)
A standardized set of trade terms published by the International Chamber of Commerce (ICC) that define the responsibilities of buyers and sellers in international trade.
Inland Bill of Lading
A Bill of Lading specifically used for shipments that move by road rail or inland waterways within a country.
Inland Haulage
The transportation of cargo between an inland location (such as a warehouse or factory) and a seaport or airport.
Inspection Fee
A charge applied when authorities or customs agencies inspect a shipment to ensure compliance with trade regulations safety standards or security measures.
Integrated Logistics
A comprehensive logistics strategy that combines multiple services such as transportation warehousing inventory management and order fulfillment under one provider.
Intermodal Transport
A shipping method that involves the movement of cargo using multiple modes of transportation (e.g. truck rail and ship) without the need to unpack the goods during transitions.
Inventory Management
The process of tracking organizing and controlling inventory throughout the supply chain.
Invoice Value
The total value of goods as declared on the commercial invoice.
ISO Container
A standardized shipping container built according to specifications set by the International Organization for Standardization (ISO).
K
L
Landed Cost
The total cost of a product upon arrival at its final destination including purchase price transportation fees duties taxes insurance and any additional costs.
Last Mile Delivery
The final stage of the delivery process where goods are transported from a distribution center or warehouse to the consignee's address.
LCL (Less than Container Load)
A shipping method where multiple smaller shipments from different shippers are consolidated into a single container.
Letter of Credit (LC)
A financial document issued by a bank guaranteeing that the seller will receive payment once shipment conditions are met.
Liftgate
A hydraulic platform attached to the rear of a truck that enables cargo to be raised or lowered during loading and unloading.
Line Haul
The long-distance movement of freight between major hubs or terminals.
Loading Dock
A designated area in a warehouse or distribution center where cargo is loaded or unloaded from trucks.
Logistics Management
The comprehensive process of planning executing and controlling the efficient movement and storage of goods services and information from the point of origin to the final destination.
Manifest
A detailed document listing all the cargo loaded onto a vessel aircraft or truck.
M
Marine Cargo Insurance
Insurance coverage that protects goods transported via ocean or inland waterways against loss or damage.
Marine Surveyor
A professional inspector who evaluates ships cargo and port facilities to ensure they meet safety and regulatory standards.
Master Air Waybill (MAWB)
A document issued by the airline that functions as a contract of carriage for air shipments.
Measurement Ton
A unit of volume used to calculate shipping rates for light yet bulky cargo.
Merchant Haulage
A freight service where the shipper arranges and pays for inland transportation independently rather than using the carrier's inland services.
MPS (Merchandise Processing Fee)
A fee charged by U.S. Customs for processing imported goods.
Multimodal Transport
A logistics strategy that involves multiple modes of transportation (e.g. sea air road or rail) under a single contract.
N
NCBFAA (National Customs Brokers and Forwarders Association of America)
The NCBFAA is a prominent trade association in the United States representing customs brokers freight forwarders and other international trade professionals.
NCM Code (Nomenclatura Común del Mercosur)
A product classification system used in Mercosur countries (Argentina Brazil Paraguay and Uruguay) for international trade.
Net Tonnage (NT)
A measurement of a ship's usable internal volume excluding non-revenue-earning spaces such as crew quarters engine rooms and navigation areas.
Non-Vessel Operating Common Carrier (NVOCC)
An NVOCC is a company that provides ocean freight services without owning or operating its own vessels.
Notify Party
The individual or company listed on the Bill of Lading or Air Waybill that must be informed upon the arrival of a shipment.
O
Ocean Bill of Lading (OBL)
A contract of carriage issued by an ocean carrier that serves as both a receipt of goods and a title document.
Ocean Freight
A method of transporting goods via sea commonly used for international shipments.
Off-Dock Terminal
A storage and handling facility located away from the main port terminal.
On-Carriage
The final leg of a shipment's journey typically involving transportation from the port or terminal to the consignee's location.
Open Top Container
A type of shipping container designed with a removable tarpaulin roof instead of a solid ceiling.
Origin Charge
Fees applied at the shipment's point of origin to cover services such as documentation terminal handling and export customs clearance.
Out of Gauge (OOG)
Cargo that exceeds the standard dimensions of a shipping container and requires special handling equipment or permits.
Overweight Surcharge
A fee applied when a shipment exceeds the maximum allowable weight for a container or trailer.
P
Packing List
A detailed document that outlines the contents of a shipment including item descriptions quantities dimensions and weight.
Palletization
The process of stacking and securing goods onto pallets for easier handling transportation and storage.
Partial Shipment
A shipment that is divided into multiple deliveries rather than being shipped in one complete batch.
Peak Season Surcharge (PSS)
A temporary fee imposed by carriers during periods of high shipping demand such as holiday seasons or retail peak periods.
Perishable Goods
Items that have a limited shelf life and require temperature control or specialized handling to maintain their quality during transportation.
Pickup & Delivery
The process of collecting cargo from the shipper's premises and delivering it to the consignee's location.
Pier Pass Fee
A fee charged at specific U.S. West Coast ports to reduce traffic congestion and promote off-peak container movement.
Port Congestion
A situation where excessive cargo volumes cause delays at ports due to limited space equipment shortages or labor constraints.
Port of Discharge (POD)
The port where a shipment is unloaded from the vessel and transferred for further transportation or delivery.
Port of Entry
A designated location where international cargo is officially imported into a country and subject to customs inspection duty payments and regulatory compliance.
Port of Loading (POL)
The port where cargo is loaded onto a vessel for international shipment.
Post Entry
A correction or adjustment filed with customs authorities after an import shipment has been cleared.
Pre-Carriage
The transportation of goods from the shipper's premises to the port of departure.
Preferential Duty
A reduced import tariff applied to goods originating from countries with established trade agreements.
Q
R
Ramp
A designated area at rail terminals where containers are loaded onto or unloaded from trains.
Reefer Container
A temperature-controlled shipping container designed to transport perishable goods such as fruits vegetables dairy products seafood and pharmaceuticals.
Remanifest
The process of issuing a new cargo manifest to reflect updated shipment details.
Restricted Articles
Items that are subject to specific regulations due to safety security or environmental concerns.
RFID (Radio Frequency Identification)
A technology that uses electromagnetic fields to automatically identify and track objects.
Roll-On/Roll-Off (RoRo)
A type of shipping method designed for transporting wheeled cargo such as cars trucks trailers and heavy machinery.
Routing Order
A document issued by a buyer or consignee that instructs the supplier or shipper on the preferred transportation route carrier and delivery terms.
S
Schedule B Code
A 10-digit numerical code used by U.S. exporters to classify goods for export reporting purposes.
Seal Number
A unique identification number assigned to a Container Seal which is affixed to a shipping container to ensure its integrity during transit.
Shipment Tracking
The process of monitoring a shipment's progress throughout its journey from the point of origin to the final delivery.
Shipper's Export Declaration (SED)
A document required for shipments leaving the United States that provides key information about the exporter consignee cargo value and destination.
Shipper's Letter of Instruction (SLI)
A document provided by the exporter to the freight forwarder that outlines shipment details special handling instructions and required documentation.
Shipping Manifest
A comprehensive document that lists all the cargo loaded onto a specific vessel aircraft or truck.
Short Shipment
A situation where part of a shipment is missing from the consignment during delivery.
Slot Charter
A shipping arrangement where a carrier or NVOCC purchases a designated amount of container space (referred to as slots) on another carrier's vessel.
Special Cargo
Cargo that requires specialized handling packaging or transportation due to its size sensitivity or hazardous nature.
Split Shipment
A shipment that is divided and transported in multiple consignments rather than one complete delivery.
Stowage Plan
A detailed layout that shows how cargo is positioned within a vessel aircraft or container.
Supply Chain
The entire network involved in producing storing and delivering goods from the point of origin to the end consumer.
Surcharge
An additional fee charged by carriers to cover unexpected costs such as rising fuel prices currency fluctuations or port congestion.
Survey Report
A formal document prepared by a Marine Surveyor that details the condition of a vessel cargo or port facility.
T
Tariff
A tax imposed on imported or exported goods by a government to regulate trade and generate revenue.
TEU (Twenty-Foot Equivalent Unit)
A standardized unit of measurement used to describe a shipping container's capacity.
Third-Party Logistics (3PL)
A company that provides outsourced logistics services including transportation warehousing order fulfillment and inventory management.
Through Bill of Lading
A Bill of Lading that covers multiple stages of a shipment's journey across various modes of transportation (e.g. sea rail and truck).
TIR Carnet
A customs transit document that allows goods to move across international borders under customs seal without requiring repeated inspections at each country's checkpoint.
Tonnage
A measurement of a vessel's cargo-carrying capacity.
Tracking Number
A unique identifier assigned to a shipment that allows shippers and consignees to track cargo movement.
Transit Time
The total time required for a shipment to move from its origin to its final destination.
Trucking Rate
The cost of transporting goods via truck calculated based on factors such as distance cargo weight fuel costs and delivery urgency.
Turnaround Time
The time required to unload reload and dispatch a vessel aircraft or truck at a terminal or warehouse.
U
ULD (Unit Load Device)
A Unit Load Device (ULD) is a standardized container or pallet used to consolidate cargo for air transportation.
UN Number
A four-digit code assigned by the United Nations Committee of Experts on the Transport of Dangerous Goods to identify hazardous substances.
Uniform Customs and Practice (UCP)
A set of internationally recognized rules established by the International Chamber of Commerce (ICC) to govern letters of credit in international trade.
Unloading Charges
Fees applied by terminals warehouses or trucking companies for the labor and equipment required to unload cargo from a vessel truck or container.
V
Value-Added Tax (VAT)
A consumption tax imposed on goods and services at each stage of production and distribution.
Vanning
The process of loading cargo into a shipping container in preparation for transport.
Vessel Schedule
A published timetable that outlines the planned arrival and departure times of ships at designated ports.
Volume Weight (Volumetric Weight)
A calculated weight that reflects the space a shipment occupies rather than its actual weight.
W
Warehouse Receipt
A document issued by a warehouse operator confirming the storage of goods.
Warehousing
The process of storing goods in a designated facility until they are ready for distribution or sale.
Waybill
A non-negotiable shipping document that serves as a receipt of goods and outlines the terms of the transportation contract.
Weight Break
A threshold weight at which shipping rates change.
Weight Certificate
An official document that verifies the weight of a shipment.
Wharf
A structure built along a shoreline or riverbank where vessels can dock to load or unload cargo.
Wharfage
A fee charged for the use of a wharf pier or dock for loading or unloading cargo.
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