Transport and logistics is an area where a lot of jargon is used, it can be sometimes difficult to understand when a professional asks you if it is FL or LTL load, or if you need a side loader ect.
In this article, we will help you understand what it means, using short definitions but also with extra details if you need them.
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Index
ADR: European Agreement on the transport of dangerous goods by road. More information.
Advice: Message to confirm action is taken. eg. Advice of Arrival: Action to deliver is taken and arrival is scheduled.
AWB: Air Waybill
B/L: Bill of Lading, a legal document issued by a carrier to a shipper detailing types, quantity, and destination of the goods being carried.
BAF: Bunker Adjustment Factor, to calculate fluctuation in bunker/fuel prices regarding maritime transport.
Bonded warehouse: warehouse where uncleared goods can be stored. Such as alcohol import, and goods under specific customs status.
Breakbulk cargo: can also be called General cargo = Goods packed in unit load different than usual pallets (i.e bags, boxes, crates, drums, or barrels) to be combined with other goods.
Bulk cargo: terms to designate unpackaged goods (i.e petrol, oil, grain, coal, gravel or sand). Bulk cargo can be dry or wet. It is usually transported in a tank unit.
Bulk carrier: a ship that transports bulk cargo
C.A.F: Currency Adjustment Factor, to calculate fluctuations in currencies
C.O.D: Cash On Delivery, goods are realized upon receipt of payment
Cabotage: domestic transport in a foreign country
CAD: Cash Against Document, used to ensure an importer pays for goods before they are in receipt of those goods
Carrier: Party responsible to perform transport
Cartage: Distributions/pickup of cargo on land
CBM (cubic meter): ISO measure to determine the volume of a shipment
Certificate of Origin: document to verify the original country of production (customs purposes)
Chassis: trailer for carriage of containers on the road
Claim: written message to hold carrier responsible for damage, delay, etc.
CMR: International Waybill, consignment note, CMR-Convention regarding Contract for the International Carriage of Good by Road
Commercial invoice: Invoice document with the final price, it is required for customs and insurance purposes in international transport. It is also an important document for the freight forwarder or other parties that will transport the goods. NOTE! Different from pro-forma invoice, as commercial invoice is only issued after the sales has been done and shows the final price and conditions of the sale.
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CN: Combined Nomenclature: used in statistical declarations (Intrastat) for intra-EU trade as well as for exports. 8 digits.
Consignee: party to whom the shipment is sent
Consignor: party who is sending shipment
Consolidate: combine small shipments into one/container/trailer
Country of Origin: often determines duty on goods
CSC: Container Service Charge, terminal and handling charge for container
Customs: Governmental agency that controls/oversees the flow of goods
Custom value: Value used to determine custom duty and Vat amount
Damage: a sum of money claimed or awarded in compensation for a loss or harm to goods
Dangerous Goods: Dangerous goods can be described as goods that represent a risk to people and/or the environment. They are classified under the UN classification, using different classes that are represented using small pictograms, fe. Class 1: Explosive substances; Class 2: Gases; (find them all here). Dangerous goods transport is regulated to minimize these risks, this regulation is called ADR. Dangerous goods can be transported by road, train, sea, or air transport, following certain transport and handling regulations. More info
Delay: Late delivery
Delivery: Action of delivering parcels or goods
Demurrage: charge for the use of the container within the terminal beyond the free time period
Detention: charge for the use of the container outside the terminal or depot, beyond the free time period
Disbursement: all expenses of an agent paid in advance of transport; the agent put a service fee for that
Discharge: unloading of container from ship
Dispatch: process before goods are sent somewhere (packing, labeling, arranging documents, allocating resources -truck, driver ship… ; to send the parcels)
Domestic transport: part of the transport of goods within the same country. No borders passing.
Door to Door: from the consignor’s warehouse to the consignee’s warehouse
EDI: Electronic Data Interchange, software of different companies communicates f.e tracking data
EORI: Economic Operators Registration and Identification number – Businesses and people wishing to do trade must use this number in all customs procedures and information exchanges. This number permits faster identification and process within the European customs system.
ETA: Expected Time of Arrival
ETD: Expected Time of Departure
FAK: Freight All Kind; groupage of similar goods.
FCR: Forwarders Certificate of Receipt, to verify that forwarder possesses cargo
FCT: Forwarders Certificate of Transport, to verify that the forwarder transports cargo
Force majeure: Reason for hindrances beyond one’s control
Freight forwarder: a company that serves as an intermediary between transportation companies that import and export goods and the businesses that need them
Frontier: Border between countries, often where goods are cleared or reported.
FTL / LTL – FCL / LCL: FTL: Full Trailer Load FCL: Full container Load – LCL: Less than Truckload LCL: Less than Container Load. These are terms used to describe how much the shipment will take in a truck or container. LTL and LCL are also called groupage transport.
Groupage: Combine small shipments into one container/trailer
Gross weight : Full weight of a shipment, including the weight of the goods and packaging
Gross vehicle mass (GVM) : is the maximum weight of a vehicle in operation. This weight is announced by the constructor, and include chassis, vehicle body, fuels, engine, engine’s fluid, accessories, passengers, driver and the cargo load.
Haulage: transport of trailer by road
Hazardous cargo = Dangerous goods (see in D section): goods that need special attention when transported as they present risk for people and environment
Hucke-pack: transport of a trailer on combined roadway and railways
HS code: Harmonized System Code : they are identifications codes given to goods during international trade. It is administered by The World Customs Organization (WCO) and are internationally accepted for the use of customs authorities and companies to identify goods. NOTE! They are not used by European customs to issue customs clearance. See CN or Taric code.
IMDG: International Maritime Dangerous Goods Code (more information: https://www.imo.org/en)
Imports : Foreign goods bought by citizens, companies or authorities of another country for their use in their territory
Import license : Document issued by authorities of some country, authorizing certain individuals or companies to import goods in their country
Importer of Record : Generally the buyer or owner of the goods, or, when designated by owner, consignee or buyer, it can be a custom broker that will proceed to the import custom clarification of the goods.
Inbound (logistics/goods) : term used to represent all the flow of goods incoming from a vendor to a business or facility (eg. warehouse)
Incoterms : The Incoterms or International Commercial Terms are a series of pre-defined commercial terms published by the International Chamber of Commerce (ICC) relating to international commercial law. Incoterms define the responsibilities of exporters and importers in the arrangement of shipments and the transfer of liability involved at various stages of the transaction.
IAC : Indirect Air Carrier : Any operator without a air carrier certificate that take the responsibility to engage movements of goods by air using service of an air carrier. This term is mostly used in US to protect the security of air cargo.
IOT: Internet of Things, use of the ability of objects to connect to the internet to share their data in order to get live geolocalisation for example, or live consumption of a vehicle, preventive maintenance ect..
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Loading List: List of the goods contained in the transport, this document is used for customs purposes but also as a verification document for loading and unloading at the recipient of goods. Must include the exact number of goods, volume and weight of the loaded goods.
Lo-lo: Lift on – Lift off, ship that is loaded and offloaded by cranes
Manifest: a detailed list of consolidation, used in case of groupage transport
Maximum payload: Loading capacity of a unit
MSDS/SDS: Material Safety Data Sheet: Document used for transmitting product safety information
Net tare weight: weight of the empty container, trailer, or wagon
NVOCC: Non-vessel Operating Common Carrier, carrier operating without own transport equipment
OT: open Top; container with a tarpaulin roof, enables oversize cargo such as timber and scrap metal to be loaded from the top
Packing list: list to describe the content of shipment, plus packing methods, dimensions and weight of each packages, marks and numbers of the boxes.
Pallet: Plastic or wooden unit of transport where the goods are loaded and help the handling of the goods. Euro pallet size is 800 mm x 1,200 mm x 144 mm approx. weight. 25kg.
Part load : single shipment that fills the transport unit only partly
Payload: Capacity of loading of a unit
Place of discharge: i.e. port where the container is loaded off ship
Place of loading: place where goods are loaded in the transport unit, or where the container is loaded in the ship i.e
POD: Proof of Delivery ; document that prove carrier has satisfied its terms of a contract of carriage by confirmation of the recipient. It can under paper or electronic format (EPOD).
Preadvice: Notice given to consignee to inform of shipment and details of the transport
Pro-forma invoice: invoice with information about good, NOTE! not a commercial invoice. Moreinfo: the primary purpose of a pro-forma invoice is quotation for a potential buyer, tool to negotiate or obtains letter of credit , other payments or prepare to any import restrictions.
PSYM: NSAB General Conditions of the Nordic Association of Freight Forwarders. access here
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Rail wagon: transport unit used for transport by train/railway.
Reefer: transport unit where temperature can be controlled (i.e reefer container, reefer trailer)
Refrigerated goods: these are sensitive goods whose usability or value depends on certain temperatures during storage and transport (i.e food products, pharmaceutical products, pieces of art..)
Removals: transfer of household goods, moving.
Ro-Ro: Roll on Roll off, a ship that is loaded and unloaded by goods on wheels ( i.e ferry boats)
Routing order: (R/O) Consignment instruction from the consignee to consignor; a written statement that the payor of the freight has mandated a specific carrier. Prevent any unauthorized third party to claim and collect goods as the shipper has clear information of who is mandated.
SDR: Special Drawing Right: Currency unit of the IMF as a method to determine value of the goods and compensation on International transports. Based on a basketful of foreign currencies and fluctuates on a continual basis.
Shipping instruction: Instructions given by client to carrier
Side loader: container chassis with own lifter on the side
Stackable pallets: It is a pallet that can be stacked/piled with other freight on top of the. This is used to save floor space in the transport unit.
Stripping: Unloading of container load in smaller unit
Stuffing: Loading of loose goods, into a container for international transport. Similar to Groupage
Swap body: container for transport on truck and/or rail. stands on it’s own legs
T.E.U: Twenty feet equivalent unit (i.e. container) 1 TEU = 20’ container / 2 TEU = 2×20’ container or 1×40’ container
Tare: weight of empty transport unit (i.e container)
Taric code/nomenclature: Integrated Tariff of the European Union used for imports to the EU. Taric code is usually 10 digits.
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TIR: Customs Convention to facilitate the transport of sealed units across numerous frontiers
ULD: Unit Load Device: Transport unit for air transport
Vessel: Ship – Boat
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