Logistics Terminology
A – Air Freights, Air Waybill, All-Risk Insurance, …
A service that provides for the air transportation of goods.
This mode of transportation allows to reduce shipping time, low damage ratios and for certain commodities, lower shipping costs.
Air Freight Forwarder
An Air Freight forwarder provides pickup and delivery service to and from shipper’s dock. Responsibilities also include consolidating shipments from various shippers into larger units, preparing shipping documentation and tendering freight to the airlines.
Forwarders do not generally operate their own aircraft but rend a space from the airlines.
Air Waybill
A document issued by a carrier to a shipper that supplies written evidence regarding the receipt of goods, the mode of transportation and the arrangement to deliver goods at the requested destination to the lawful holder of the bill of lading. A standard air waybill accommodates both domestic and international traffic.
All-Cargo Aircraft
An aircraft used for the sole purpose of transporting cargo only, rather than the combination of passengers and cargo.
Freight is loaded in the bulk or container on the main or lower deck of the aircraft.
All-Risk Insurance
The broadest form of coverage available, providing protection against all risk of physical loss or damage from any external cause, such as fire collision, pilferage, etc. Does not cover loss or damage due to delay, acts of war, labor strikes, per-shipment conditions, inadequate packaging, or loss of market. All risk insurance of air shipments generally excludes loss due to cold or changes in atmospheric pressure.
Aviation and Transportation Security Act (ATSA)
A bill passed November 2001, to improve aviation security in all modes of transportation.
B – Bill of Lading, Billed Weight, Bulk Cargo, …
Bill of Lading
A document issued by a carrier to a shipper, signed by the captain, agent, or owner of a vessel, furnishing written evidence regarding receipt of freight, the conditions on which transportation is made and the date to deliver goods at the prescribed port of destination to the lawful holder of the bill of lading.
Billed Weight
The designated weight shown on an invoice and/or waybill used to calculate freight charges.
Breakbulk
Unpacking or disassembling a portion or all contents of a consolidated shipment for reconsignment or delivery.
Broker
An individual or firm that acts as an agent for others, often between a buyer and a seller, in return for a fee or commission.
Bulk Cargo
Cargo stowed loosely in the hold of a ship and is not enclosed in a shipper container or box. Examples include oil, ore, grain or coal.
Cargo
The goods or merchandise transported by airplane, ship or vehicle.
Cargo Manifest
A list of cargo being transported or warehoused, without listing the applicable charges.
Carrier
Any individual or firm who, through a contract of carriage, undertakes to perform or procure the performance of carriage by rail, road, sea, air, inland waterway, or by a combination of modes.
Cartage Agent
A ground transportation service that provides pickup and delivery of freight in locations not served directly by an air or ocean carrier.
Certificate of Origin
A document containing an affidavit to prove the origin of imported goods. It is often required by the custom as part of the entry process. Certificates of origin are commonly certified by an official organization in the country of origin such as a consular office or a chamber of commerce.
Chargeable Weight
The weight or volume of a shipment used in determining air, vehicle or ocean charges. The chargeable weight could be the dimensional weight or on container shipments, the gross weight of the shipment minus the containers tare weight.
Charter Service
Arrangement of a temporary transportation service on an as needed occasion for the movement of cargo or passengers.
Clearance
The completion of customs entry requirements resulting in the release of goods from customs authority to the importer.
Commercial Invoice
A required document identifying the transaction between a seller and buyer. The form should have the invoice number, date, shipping date, the mode of transport, delivery and payment terms, description of goods and the quantity. The government uses the commercial invoice to determine the true value of goods for assessing custom duties and prepare documentation.
Consignee
The person or company named on the freight contract to whom goods have been consigned or turned over.
Consolidation
A number of separate shipments that are assembled into one shipment for movement on one waybill from one location to another. Consolidation of cargo can result in reduced shipping rates.
Cubic Foot
The unit of volume measurement that is equaled to 1,728 cubic inches.
Demurrage, Density, Dimensional Weight, …
Demurrage
A penalty for exceeding free time allowed for loading or unloading at a pier or freight terminal.
Density
The weight per cubic foot that is determined by multiplying the length, width and height of a container and dividing the total by 1728.
Dimensional Weight
A calculated weight based on a minimum density requirement. Density is the weight per cubic foot of a shipment of cargo. It is computed by dividing the shipment volume by the minimum density requirement. The dimensional weight rule was developed to insure fair compensation to low density shipments under which the transportation charges are based on a cubic dimensional weight rather than upon actual weight.
Distribution channels are responsible for distribution of suppliers products on wholesale and retail sectors of the market.
Durable Goods
Product that is not consumed through use, such as automobiles, furniture, computers and machinery.
Freight Forwarder
An independent business that dispatches shipments for exporters for a fee.
Transportation can include shipping by land, air, or sea, or other resources. Usually it handles all services connected with an export shipment, including full preparation of documents arranging for shipping, warehousing, delivery and export clearance.
FCL, FTL, LCL, LTL
Full Container Load (FCL)
A delivery of cargo that fills a given container either by bulk or maximum weight.
Full Truck Load (FTL)
A shipment of cargo that fills a given tractor trailer either by bulk or maximum weight.
Less Than Container Load (LCL)
Freight is combined with other freight from other shippers. A container can be loaded with LCL cargo at a container freight station for LCL delivery.
Less Than Truckload (LTL)
Freight from several shippers loaded onto an individual trailer. The shipment is based upon a separate rate than truckload rate. LTL is in contrast to TL, which is only one shipment from one shipper that is loaded on a tractor-trailer.
Packing List, POD, Ro/Ro
Packing List
A document prepared by the shipper that lists the kinds and quantities of merchandise in a particular shipment. A copy is generally sent to the consignee to aid in checking the shipment when received.
Pallet
A portable platform for storing or transporting freight.
Proof Of Delivery (POD)
A receipt with the signature of the recipient.
Roll-on/Roll-Off (Ro/Ro)
A ship that is specifically designed to carry wheeled and tracked vehicles as all or most of its cargo. Some vessels can accommodate containers and cargo that is wheeled, tracked, self-propelled or towed vehicles and equipment. A series of external and internal ramps facilitate the loading and discharge of RO/RO cargo.
Shipment, Shipper, Storage
Shipment
Except as otherwise provided, the transportation of goods from one location to another, by one shipper, on one bill of lading, from one delivery location, for one consignee to one delivery.
Shipper
The company or person who tenders goods to a carrier for transportation.
Shipper’s Letter of Instruction
A form used by the shipper authorizing a carrier to issue an air waybill or (BOL) bill of lading on the shipper’s behalf. It contains all details of the shipment and authorizes the carrier to transport the cargo on behalf of the shipper specific instructions.
Storage
Holding a shipment in a carrier’s warehouse, pending further transportation. Additional charges may be applicable.
Tare Weight, Tariff, THC, Transit
Tare Weight
The weight of packing and containers without the goods to be shipped.
Tariff
A general term for any listing of rates or charges for the movement of goods.
Terminal Handling Charge (THC)
Fees charged by ocean containers to move containers between terminals and ships, inspecting at terminal facilities, paid by shippers (importers or exporters).
Transit
A journey from one location to another.
Ultimate Consignee, ULD, VAT
Ultimate Consignee
The individual who is the one receiving goods for the designated end use. A customs broker cannot be listed as the ultimate consignee unless they own the merchandise or there is not U.S. buyer and the document shows the brokers premises as the location to which the merchandise is to be delivered.
Unit Load Device (ULD)
Any type of container or pallets used to consolidate packages of freight for mechanical handling.
Value-Added Tax (VAT)
A fee levied on all goods and services as goods and services go through the production chain, from the raw material to final consumption. The amount taxed is the amount of value a particular step in the production chain added to the value of the goods or service. Volume Rate – A freight rate assessed with a specific volume of freight based upon the presumption it will increase over a period of time.