Logistics Glossary

A

Accessorial

An Accessorial Service is an additional service that must be performed in the context of a Primary Service. For example, Inside Delivery or Debris Removal are Accessorial Services for the Primary Service of Delivery (local cartage).

Advance Manifest

An additional service performed in the context of a primary service. Examples include Inside Delivery or Debris Removal as part of a primary Delivery service, or liftgate, residential delivery, or redelivery charges added to a base freight rate.

AES (Automated Export System)

A U.S. Census Bureau system used to file Electronic Export Information (EEI) for exports. It strengthens enforcement of U.S. export laws, collects harbor maintenance fees, and streamlines administrative processing into a single electronic system.

Agent

A strategically chosen forwarder in a country where the primary forwarder does not have its own office, acting on their behalf in that location.

Air Waybill (AWB)

A strategically chosen forwarder in a country where the primary forwarder does not have its own office, acting on their behalf in that location.

Aircraft On Ground (AOG)

A status of an aircraft in need of repair that triggers critical, time-sensitive logistics handling and expedited cargo movement.

B

Backhaul

The return trip of a vehicle or conveyance to its point of origin, often used to describe freight moving in the opposite direction of the primary flow.

Bill of Lading A legal document issued by a carrier that serves as a receipt of freight, a contract of carriage, and in some cases a document of title. It identifies the parties, freight, origin, destination, and terms. May be rated or unrated, and negotiable (original) or non-negotiable.

Blank Sailing The cancellation of a scheduled vessel voyage by an ocean carrier, typically due to low demand or capacity management decisions.

BAF (Bunker Adjustment Factor) A surcharge added to the basic ocean transportation rate by a carrier to compensate for fluctuations in fuel (bunker) costs.

Berth A portion or specific location alongside a wharf at which a vessel is moored for loading or unloading.

Bonded Shipment A shipment carried under customs control that may not be delivered to the consignee without customs authorization.

Bonded Warehouse A secure storage facility authorized by customs authorities where imported goods can be stored, manipulated, or manufactured before payment of import duties.

Breakbulk Cargo Cargo that is shipped as individual units or pieces, not containerized, such as machinery, steel, or lumber. All cargo which is not bulk; cargo that would be stowed loose rather than in containers.

Bulk Cargo Cargo shipped unpackaged and unmarked that assumes the shape of the vessel or conveyance, such as grain, coal, or liquids.

C

Capacity Agreement

An agreement between a forwarder and a carrier where the forwarder commits to providing a certain volume of freight on specific lanes in exchange for guaranteed space and preferred rates.

Cargo Insurance Insurance coverage that protects the financial interest of the cargo owner against loss or damage to goods during transit, per the terms of the agreement.

Cargo Manifest A document specifying the nature and quantity of all freight on a bill of lading, used for load planning, cargo compatibility checks, and staging.

CBM (Cubic Meter) A standard unit of measurement used to calculate the volume of cargo. Used to determine freight charges when volume weight exceeds actual weight.

Certificate of Origin (CO) An official document certifying the country in which goods were manufactured or produced, often required for customs clearance and preferential trade agreements.

CFS (Container Freight Station) A facility where LCL cargo is consolidated into containers for export or de-consolidated upon import. A slot booking may be required to drop off or pick up freight at a CFS.

CIF (Cost, Insurance, Freight) An Incoterm where the seller is responsible for the cost of goods, insurance, and freight charges to the named destination port. Risk transfers to the buyer once goods are loaded on the vessel.

Civil Reserve Air Fleet (CRAF) A U.S. Department of Defense program that contracts with commercial aircraft owners for use during national emergencies when expanded military airlift is required.

Commercial Invoice A documented, itemized bill from the seller to the buyer containing details about the parties, goods sold, charges, and payment terms. Used as the basis for customs valuation.

Consignee The party listed on the bill of lading responsible for ensuring freight is received from the carrier at the destination.

Consignment Security Declaration (CSD) An industry standard document providing regulators with an audit trail of how, when, and by whom freight has been secured along the supply chain.

Consolidation The process of combining multiple smaller shipments from different shippers into one container or shipment to reduce costs. Two or more customer shipments represented on a single carrier shipment.

Container A standardized, reusable steel box used to transport goods by sea, rail, or road. Standard sizes include 20-foot and 40-foot units.

Accordion Title i Accordion description i

Cross-Docking A logistics practice where incoming shipments are unloaded and directly transferred to outbound vehicles with minimal or no storage time.

Customs Bond A contract that ensures all duties and fees associated with importing or other customs activities will be paid, typically required by U.S. Customs for importers.

Customs Broker A licensed professional or firm that acts as an agent on behalf of importers and exporters to clear shipments through customs authorities and ensure compliance with import/export regulations.

Customs Clearance The process of satisfying all customs authority requirements, including declaration, duty payment, and inspection, to allow goods to enter or exit a country.

Customs Manifest A document specifying the nature, cost, and quantity of all goods on the bill of lading, submitted to the customs authority.

D

D/O (Delivery Order)

A document issued by a carrier, carrier agent, or break bulk agent authorizing the release of cargo to a named party at the destination.

DAP An Incoterm where the seller is responsible for delivering goods to a named destination, with the buyer responsible for import duties and taxes upon arrival.

DC Bypass A shipment moving directly from the point of production to the store or customer without being received and handled at a distribution center.

DDP (Delivery Duty Paid) An Incoterm where the seller bears all costs and risks of delivering goods to the buyer's named destination, including import duties and taxes.

Dead Freight A charge levied when a shipper fails to load the full quantity of cargo agreed upon in a booking or charter contract.

Demurrage Fees charged when a container is left in a port terminal past its designated free time period without being picked up.

Detention Charges incurred when a container has been removed from the port to a destination but is not returned to the carrier or empty depot within the agreed free time period.

Devanning (Unstuffing) The process of unloading cargo from a shipping container or truck at the destination, also referred to as stripping or unpacking.

Dimensional Weight (Volume Weight) The weight calculated based on the volume of a shipment using a dimensional factor, used when the volumetric weight exceeds the actual weight to determine freight charges.

Direct to Consumer (DTC) Delivery of a sales order directly to the end customer from the point of production, typically smaller packages associated with e-commerce.

Door-to-Door A freight service where the carrier or forwarder is responsible for the entire movement of goods from the shipper's premises to the consignee's premises.

Drayage The short-distance transport of shipping containers via ground freight, often as part of a longer overall move, such as from a port to a nearby warehouse.

Duty Drawback The refund of customs duties previously paid on imported merchandise when that merchandise is subsequently exported, either as-is or after being used in manufacturing another product.

E

EDI (Electronic Data Interchange)

The exchange of electronic business data over a computer network between two or more trading partners using a standardized format and communication protocols.

ETA (Estimated Time of Arrival) The projected date and time a vessel, aircraft, or truck is expected to arrive at a designated port or destination.

ETD (Estimated Time of Departure) The projected date and time a vessel, aircraft, or truck is expected to depart from a port or origin.

Exporter of Record The party on whose behalf an export declaration is made, responsible for obtaining export clearance and complying with all export regulations.

EXW (ExWorks) An Incoterm where the seller makes goods available at their premises, and the buyer assumes all costs and risks from that point forward, including loading, transport, and customs.

F

FCL (Full Container Load)

A shipment that fills or is booked as an entire shipping container, exclusively used by one shipper.

Feeder Service Recurring transportation between a major hub port and nearby smaller or secondary ports to consolidate freight for onward shipment.

FEU (Forty-Foot Equivalent Unit) A unit of measurement equivalent to one 40-foot shipping container, used to quantify container capacity on vessels or at terminals.

FIFO (First In, First Out) A warehousing and inventory method ensuring the oldest stock is picked or used first, standard practice in time-sensitive industries such as food, pharmaceuticals, and automotive parts.

FOB (Free on Board) An Incoterm where the seller is responsible for delivering goods on board the vessel at the named port of shipment. Risk and cost transfer to the buyer once goods are loaded.

Force Majeure Any major circumstance entirely beyond a party's control (such as natural disasters, war, or pandemics) that prevents them from fulfilling part or all of their contractual obligations.

Forwarder's Cargo Receipt (FCR) Documentation issued by a forwarder to the consignor confirming that the consignor has fulfilled their obligation in supplying goods for transport.

Free Time The period allowed by a carrier or port for a container to remain at a terminal, or for equipment to be returned, before demurrage or detention charges begin to accrue.

Free Trade Zone (FTZ) A geographic area where goods may be landed, stored, handled, manufactured, or reconfigured and re-exported under specific customs regulations, generally without being subject to customs duties.

Freight All Kinds (FAK) A freight rate that applies to all types of cargo regardless of commodity type, typically used in container shipping to simplify pricing across mixed-commodity loads.

Freight Receipt A signed, documented acknowledgement that freight has transferred custody to a receiving party, also known as a dock receipt or cargo receipt.

Frustrated Cargo Cargo in a carrier's custody that cannot be transported, transferred, or delivered due to misplacement, misrouting, loss of documents, or damage to packaging.

FTL (Full Truckload) A shipment that occupies the full capacity of a truck trailer, with one shipper's cargo exclusively using the vehicle.

Fuel Surcharge (FSC) An additional charge periodically applied by carriers to the base transportation rate to compensate for increases in fuel costs since the rate was established.

G

General Average

A maritime principle whereby all parties in a sea voyage (ship and cargo owners) share proportionally in losses resulting from a voluntary sacrifice made to save the ship and its cargo from a common peril.

GRI (General Rate Increase) A periodic rate adjustment made by carriers to increase base freight rates across specific trade lanes, typically announced in advance.

Gross Weight The total combined weight of goods plus all packaging materials and containers.

Groupage Freight consolidation or cargo pooling by forwarders combining smaller shipments from multiple customers to achieve a more economical full shipping unit.

H

Harmonized System (HS) Code

An internationally standardized numerical system used by customs authorities worldwide to classify traded products for duty assessment, trade statistics, and regulatory compliance.

Hazmat / Dangerous Goods Goods that pose a risk to health, safety, property, or the environment during transport, subject to strict regulations on handling, labeling, packaging, and documentation under IATA, IMDG, and DOT rules.

House Bill of Lading (HBL) A bill of lading issued by a freight forwarder to a shipper covering the movement of goods as part of a consolidated shipment, as opposed to the master bill issued by the ocean carrier.

HTS (Harmonized Tariff Schedule) Product classification codes of 8–10 digits used to determine tariff classification, duty rates, and trade statistics for goods imported into the United States.

I

Incoterms

Internationally recognized commercial terms published by the International Chamber of Commerce (ICC) defining the responsibilities of buyers and sellers regarding delivery, risk, costs, and documentation in international trade.

Inland Container Depot (ICD) A dry port or inland facility that provides customs clearance and container storage services, acting as an extension of a seaport for cargo moving to and from interior regions.

Integrators Companies that provide door-to-door domestic and international air freight services, owning and operating both aircraft and ground delivery fleets (e.g., FedEx, UPS, DHL).

Intermodal Transportation The movement of freight using two or more modes of transport (e.g., truck, rail, sea, air) within a single journey, often using the same container throughout.

ISF (Importer Security Filing) A U.S. Customs and Border Protection requirement mandating that importers submit specific cargo data electronically at least 24 hours before goods are loaded onto a vessel destined for the U.S. Also known as '10+2'.

ITAR (International Traffic in Arms Regulations) A set of U.S. government regulations controlling the import and export of defense-related products, services, and technical data.

L

Landed Cost The total cost an importer pays to have goods delivered to their premises, including the cost of goods, international transport, insurance, port charges, customs duties, and delivery charges.

LCL (Less than Container Load) A shipment that does not fill an entire container and is consolidated with cargo from other shippers in a shared container to reduce costs.

Letter of Credit (L/C) A financial instrument issued by a bank guaranteeing that a seller will receive payment once specific shipping and documentation conditions defined in the credit are met.

Letter of Indemnity A written promise provided to a third party, indemnifying them for stated costs or damages if the first or second party fails to meet a stated obligation, often used when releasing cargo without original bills of lading.

LTL (Less than Truckload) A freight shipment that does not fill an entire truck, combined with other shippers' cargo to make full use of truck capacity and reduce per-unit costs.

M

Master Bill of Lading (MBL) A bill of lading issued by the ocean carrier to the freight forwarder covering the entire consolidated shipment, as opposed to the house bills issued to individual shippers.

Milk Run A recurring transport route using a dedicated vehicle on a consistent round trip visiting a fixed number of pickup or delivery locations on a time-definite schedule, common in automotive supply chains.

Multimodal Transport The movement of goods under a single contract using at least two different modes of transportation, with one operator taking responsibility for the entire journey.

O

OBL (Original Bill of Lading) A negotiable bill of lading that must be physically presented to take possession of the cargo at the destination, serving as a document of title.

Ocean Freight The transportation of goods by sea in shipping containers or as breakbulk cargo, typically used for large-volume or heavy shipments on international trade lanes.

On-Carriage The transportation of goods from the port of discharge to an inland destination after the main ocean or air voyage is complete.

Over, Short, and Damaged (OSD) A category used to document and report discrepancies between freight as received versus what was expected, including overages, shortages, and damaged items.

P

Packing List A detailed document provided by the shipper listing the contents, quantities, weights, and dimensions of each package in a shipment, used for customs and receiving.

Palletization The process of arranging and securing cargo on a pallet to facilitate easier handling, loading, and transportation.

Peak Season Surcharge (PSS) An additional charge imposed by carriers during periods of high demand, typically prior to major retail holidays, to compensate for capacity constraints.

POD (Port of Discharge) The port where cargo is unloaded from the vessel at the end of the main ocean voyage.

Port Congestion Surcharge An additional fee charged by carriers when a port is experiencing significant delays due to high volumes or operational issues impacting vessel turnaround times.

Pre-Carriage The transportation of goods from the shipper's premises to the port of loading before the main ocean or air leg begins.

Proof of Delivery (POD) A document or electronic record signed by the consignee confirming that a shipment has been received, including the name of the signer, time , date, and condition of the delivery.

Purchase Order (PO) A documented request from a buyer to a seller specifying types, quantities, and agreed prices for products or services, serving as the basis for order management and shipment planning.

R

Rail Freight The transportation of goods by train, commonly used for long-distance overland shipments as a cost-effective alternative to trucking, often used in intermodal movements.

Reefer Container A refrigerated shipping container used to transport temperature-sensitive goods such as food, pharmaceuticals, and chemicals at controlled temperatures.

Reverse Logistics The process of collecting, handling, and transporting used, damaged, unwanted, or end-of-life goods and packaging for disposal, recycling, return to vendor, or recovery.

RFI (Request for Information) A request for written information about the capabilities, financial standing, reliability, experience, and standard practices of a logistics service provider, typically used as a pre-qualification step.

Roll On / Roll Off (RoRo) A type of ocean vessel designed to transport wheeled cargo, such as finished automobiles and heavy machinery, that is driven directly on and off the ship.

S

S/I (Shipping Instructions) Detailed instructions provided by the shipper to the freight forwarder specifying how the shipment should be handled, documented, routed, insured, and transported.

Sea Waybill A non-negotiable transport document used in ocean freight as evidence of a contract of carriage. Unlike a bill of lading, it does not serve as a document of title and does not need to be presented at the destination.

Seal A uniquely identifiable device attached to the door of a container to detect and deter tampering or theft during transit.

Shipper The party responsible for preparing the freight for transport and consigning it as stipulated in the bill of lading, also known as the consignor.

Shipper's Export Declaration (SED) A documented statement submitted at the port of export attesting to the correctness of description, quantity, value, commodity classification, and destination of goods being exported.

Shipper's Letter of Instruction (SLI) A document completed by the shipper authorizing the freight forwarder to prepare export documentation and arrange transportation, including routing, handling, insurance, document distribution, and consignee details.

SLA (Service Level Agreement) A contractual commitment between a logistics provider and a client defining expected service standards, response times, transit times, and performance metrics.

SOC (Shipper Owned Container) A shipping container owned by the shipper rather than the ocean carrier, used to transport their own cargo on carrier vessels.

Spot Rate A one-time freight rate offered for a specific shipment based on current market conditions and available capacity, outside of a long-term contract.

Stuffing The process of loading cargo into a shipping container, typically performed at the shipper's warehouse or a container freight station.

Surcharge An additional charge added to the base freight rate to cover specific costs such as fuel, security, terminal handling, peak season, or currency fluctuations.

T

TEU (Twenty-Foot Equivalent Unit) A standard unit of measurement equivalent to one 20-foot shipping container, used to measure and compare container capacity on vessels and at terminals.

TMS (Transportation Management System) Software used by shippers and logistics providers to plan, execute, optimize, and track the movement of goods across the supply chain.

Transload The process of transferring freight directly between different conveyances or containers, such as from an ocean container into domestic trailers at a port-area facility.

Transshipment The transfer of cargo from one vessel or conveyance to another at an intermediate port during its journey to the final destination.

Truck Broker A ground transportation intermediary that provides truck freight services using assets it typically does not own or operate, acting as a middleman between shippers and carriers.

V

Value-Added Services (VAS) Services performed on goods prior to final delivery, such as labeling, packaging, kitting, ticketing, inspection, or light assembly, adding value beyond basic transportation and storage.

VGM (Verified Gross Mass) The verified total weight of a packed shipping container, including cargo and all packaging, required under SOLAS regulations before a container can be loaded onto a vessel.

W

Warehouse Receipt A document issued by a warehouse operator confirming that specific goods have been received into storage, often used as a financial instrument.

Waybill A domestic contract of carriage typically used by motor and rail carriers, similar to a bill of lading but non-negotiable, meaning it does not serve as a document of title.

WMS (Warehouse Management System) Software that controls and manages warehouse operations, including inventory tracking, picking, packing, shipping, and receiving.

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