Shipping & Logistics Terminology
3PL
Third Party Logistics – companies that provide outsourced logistics services, including warehousing, transportation, and fulfilment.
ABC Analysis
Inventory categorisation method where items are divided into three categories (A, B, and C) based on their importance.
AEO
Authorised Economic Operator – a certification indicating that a company’s customs controls and procedures are efficient and compliant, allowing for faster customs clearance.
Air Freight
The process of transporting goods via aircraft.
API
Application Programming Interface – a set of rules that allows different software applications to communicate with each other.
ASN
Advanced Shipping Notice – a notification of a pending delivery, typically sent electronically.
ATA
Actual Time of Arrival – the actual time when a shipment arrives at its destination.
ATD
Actual Time of Departure – the actual time when a shipment leaves its point of origin.
ATP
Agreement on the International Carriage of Perishable Foodstuffs – an international treaty ensuring the safe and efficient transport of perishable foodstuffs.
AWB
Air Waybill – a document that accompanies goods shipped by an international air courier to provide detailed information about the shipment.
B/L or BoL
Bill of Lading – a legal document between the shipper and carrier detailing the type, quantity, and destination of the goods being shipped.
B2B
Business-to-Business – transactions between businesses.
B2C
Business-to-Consumer – transactions between businesses and individual consumers.
BAF
Bunker Adjustment Factor – a surcharge applied by carriers to account for fluctuations in fuel prices.
Bunker
The fuel used to power ocean vessels.
CBM
Cubic Metre – a unit of volume measurement.
CCP
Critical Control Point – a step in the process where control can be applied to prevent or eliminate a food safety hazard.
CDS
Customs Declaration Service – the UK’s electronic system for managing customs declarations, replacing the older CHIEF (Customs Handling of Import and Export Freight) system.
Certificate of Origin
A document certifying the country of origin of the goods, often required for customs clearance.
CFR
Cost and Freight – the seller pays for the cost and freight to bring the goods to the port of destination. The risk transfers to the buyer once the goods are on board the vessel.
CFS
Container Freight Station – a facility where LCL (Less Than Container Load) shipments are consolidated or deconsolidated.
CIF
Cost, Insurance and Freight – the seller covers the cost, insurance, and freight to bring the goods to the port of destination.
CIP
Cleaning In Place – a method of cleaning the interior surfaces of pipes, vessels, equipment, and associated fittings without disassembly.
CMR
Convention on the Contract for the International Carriage of Goods by Road – an international agreement that standardises the conditions governing the contract for the international carriage of goods by road.
COC
Carrier-Owned Container – a container owned by the carrier.
COD
Cash On Delivery – a payment method where the recipient pays for goods at the time of delivery.
CPT
Carriage Paid To – the seller pays for the carriage of goods to the named destination. The risk transfers to the buyer once the goods are handed over to the carrier.
CRT
Controlled Room Temperature – a specific temperature range maintained to ensure the stability and quality of temperature-sensitive products.
Cycle Count
A periodic inventory auditing procedure where a subset of inventory is counted on a specific day.
DAP
Delivered At Place – the seller delivers the goods to a specified place, and the buyer is responsible for import duties and taxes.
DC
Distribution Centre – a facility used to receive, store, and distribute goods.
DDP
Delivered Duty Paid – the seller is responsible for all costs and risks, including import duties and taxes, until the goods are delivered to the buyer.
DDU
Delivered Duty Unpaid – the seller is responsible for transporting goods to the destination, but the buyer is responsible for import duties and taxes.
DEM
Demurrage – a charge for delaying the return of a container beyond the agreed time.
DET
Detention – a charge for using a container beyond the free time allowed.
DG
Dangerous Goods – items or substances that pose risks to health, safety, property, or the environment.
Dimensional Weight
A pricing technique for shipping that considers the package dimensions rather than just its weight.
DOT
Department Of Transportation – a government agency responsible for regulating transportation.
DPU
Delivered at Place Unloaded – the seller delivers the goods, unloaded, at the named place of destination. The seller bears all risks and costs until the goods are unloaded at the destination.
DTC
Direct-To-Consumer – a business model where companies sell directly to consumers, bypassing traditional retail channels.
EDI
Electronic Data Interchange – the electronic exchange of business information using a standardised format.
EIR
Equipment Interchange Receipt – a document used in intermodal transport to record the transfer of equipment between parties.
EOQ
Economic Order Quantity – the optimal order quantity that minimises total inventory costs.
ETA
Estimated Time of Arrival – the projected time when a shipment is expected to arrive at its destination.
ETD
Estimated Time of Departure – the projected time when a shipment is expected to leave its point of origin.
EXW
Ex Works – the seller makes the goods available at their premises, and the buyer is responsible for all transportation costs and risks.
FAS
Free Alongside Ship – the seller delivers the goods alongside the vessel at the named port of shipment. The buyer assumes responsibility once the goods are alongside the ship.
FCA
Free Carrier – the seller delivers the goods to a carrier or another person nominated by the buyer at the seller’s premises or another named place. The buyer assumes responsibility once the goods are delivered.
FCL
Full Container Load – a shipment that fills a standard cargo container.
FEU
Forty-foot Equivalent Unit – a standard unit of measure for cargo capacity, based on the volume of a 40-foot-long container.
FIFO
First In, First Out – an inventory management method where the oldest stock is used or sold first.
FMCSA
Federal Motor Carrier Safety Administration – a U.S. government agency that regulates the trucking industry.
FOB
Free On Board – indicates that the seller delivers goods on board a vessel designated by the buyer, and the buyer assumes responsibility once the goods are on board.
Freight Forwarder
A company that arranges the transportation of goods on behalf of shippers.
FSD
Freight Service Document – a document used in rail transport to record the details of a shipment.
FTL
Full Truckload – a shipment that occupies the entire space of a truck.
GDP
Good Distribution Practices – guidelines ensuring that products are consistently stored, transported, and handled under suitable conditions to maintain quality and integrity.
GMP
Good Manufacturing Practices – regulations requiring manufacturers to ensure their products are consistently produced and controlled according to quality standards.
GPS
Global Positioning System – a satellite-based navigation system used to track the location of shipments.
GVW
Gross Vehicle Weight – the total weight of a vehicle and its cargo.
HACCP
Hazard Analysis Critical Control Point – a systematic preventive approach to food safety.
HAWB
House Air Waybill – an Air Waybill issued by a freight forwarder.
HBL
House Bill of Lading – a Bill of Lading issued by a freight forwarder.
HOS
Hours Of Service – regulations governing the working hours of commercial vehicle drivers.
HS Code
Harmonised System Code – a standardised numerical method of classifying traded products.
IATA
International Air Transport Association – a trade association for the world’s airlines, representing about 82% of total air traffic.
ICAO
International Civil Aviation Organisation – a specialised agency of the United Nations that sets standards and regulations for aviation safety, security, efficiency, and environmental protection.
IMO
International Maritime Organisation – a specialised agency of the United Nations responsible for regulating shipping.
IMO Number
International Maritime Organisation Number – a unique identifier for ships and registered owners.
Incoterms
International commercial terms published by the International Chamber of Commerce that define the responsibilities of buyers and sellers in international transactions.
IRP
International Registration Plan – a registration reciprocity agreement among the 48 contiguous US states, the District of Columbia, and 10 Canadian provinces providing for payment of license fees based on the total distance operated in all jurisdictions.
JIT
Just-In-Time – inventory management strategy where materials are only ordered and received as they are needed in the production process.
Last-Mile Delivery
The final step of the delivery process where goods are transported from a transportation hub to the final delivery destination.
LCL
Less than Container Load – a shipment that does not fill a standard cargo container and is combined with other shipments.
LIFO
Last In, First Out – an inventory management method where the most recently received stock is used or sold first.
LNG
Liquefied Natural Gas – natural gas that has been cooled to a liquid state for transportation.
LOLO
Lift-on/Lift-off – a method of loading and unloading ships using cranes.
LSF
Low Sulphur Fuel – fuel with a lower sulphur content, used to reduce emissions.
LSP
Logistics Service Provider – a company that offers a range of logistics services, such as transportation, warehousing, and distribution.
LTL
Less Than Truckload – a shipment that does not require the full space of a truck and is combined with other shipments.
MAWB
Master Air Waybill – an Air Waybill issued by the carrier.
MBL
Master Bill of Lading – a Bill of Lading issued by the carrier.
Net Weight
The weight of the goods excluding packaging.
NVOCC
Non-Vessel Operating Common Carrier – a company that organises shipments for individuals or businesses without operating the vessels.
OMS
Order Management System – software that manages and tracks orders from inception to fulfilment.
OOG
Out Of Gauge – cargo that exceeds the dimensions of standard shipping containers.
OTR
Over The Road – long-distance transportation of goods by truck.
Packing List
A document that lists the contents of a shipment.
POD
Proof Of Delivery – a document signed by the recipient to confirm delivery of goods.
PTL
Partial Truckload – a shipment that does not require the full space of a truck and is combined with other shipments.
RAILCAR
A vehicle used for the transport of goods on a railway.
RFID
Radio Frequency Identification – a technology used to automatically identify, and track tags attached to objects.
RMA
Return Merchandise Authorisation – a process for returning products to the supplier for repair, replacement, or refund.
RORO
Roll-on/Roll-off – a method of shipping vehicles and wheeled cargo that can be driven on and off the vessel.
RTS
Return To Sender – a shipment that is returned to the sender due to delivery issues.
Shipping Carrier
A company that transports goods from one location to another.
Shipping Zones
Geographic areas used by carriers to determine shipping rates.
SKU
Stock Keeping Unit – a unique identifier for each product in inventory.
SLA
Service Level Agreement – a contract between a service provider and a customer that specifies the level of service expected.
SOC
Shipper-Owned Container – a container owned by the shipper.
TAT
Turnaround Time – the time taken to complete a process or fulfil an order.
TCM
Temperature-Controlled Management – the process of managing and monitoring the temperature of products throughout the supply chain to ensure they remain within specified temperature ranges.
Telex Release
An electronic release of the Bill of Lading, allowing the consignee to take delivery of goods without the original paper document.
TEU
Twenty-foot Equivalent Unit – a standard unit of measure for cargo capacity, based on the volume of a 20-foot-long container.
TMS
Transportation Management System – software that manages and optimises transportation operations.
TSA
Transportation Security Administration – an agency of the U.S. Department of Homeland Security that oversees the security of the travelling public in the United States.
UIC
International Union of Railways – an international organisation that promotes rail transport and cooperation among railway companies.
ULD
Unit Load Device – a container used to load luggage, freight, and mail on wide-body aircraft.
UX
User Experience – the overall experience of a person using a product, especially in terms of how easy or pleasing it is to use.
VGM
Verified Gross Mass – the total weight of a shipping container, including its contents.
VMI
Vendor-Managed Inventory – a supply chain practice where the supplier manages inventory levels for the buyer.
White Glove Delivery
Premium delivery service that includes special handling and setup of goods.
WISMO
Where Is My Order – a common customer enquiry regarding the status of their order.
WMS
Warehouse Management System – software that manages and optimises warehouse operations.