GLOSSARY
A
Abandonment
In the freight industry, abandonment refers to goods left unclaimed or uncollected, often due to issues such as incorrect paperwork, customs delays, or refusal of delivery by the recipient. It can result in additional costs, supply chain disruptions, and strained business relationships. Effective management requires accurate documentation and clear communication.
Additional Commercial Invoice
An additional commercial invoice provides extra shipment details when a standard invoice is inadequate due to factors like multiple suppliers or shipment changes. It enhances accuracy for customs, supports compliance, and mitigates delays, ensuring smooth international trade operations.
Advice of Shipment
The advice of shipment is a notification sent by the seller to inform the buyer that goods have been dispatched. It includes essential shipment details like the dispatch date, carrier, tracking number, and estimated delivery time, helping the buyer prepare for receipt and ensuring smooth logistics.
Aggregate Tender Rate
The aggregate tender rate is the average cost of shipping goods across multiple transportation modes. It helps businesses identify cost-effective freight strategies and negotiate with carriers. This metric is influenced by factors such as fuel prices, distance, freight volume, and carrier pricing.
Aggregated Shipments
Aggregated shipments combine multiple smaller shipments into one larger shipment to reduce costs and improve efficiency. This approach enables businesses to access lower bulk shipping rates, improve environmental sustainability, and streamline handling, although it requires careful planning and coordination.
Air Freight Forwarder
Air freight forwarders manage logistics of shipping goods by air, acting as intermediaries between shippers and consignees. They handle customs and regulatory requirements, ensure timely delivery, and leverage global networks to provide efficient, cost-effective solutions while addressing challenges such as cost and environmental impact.
Air Waybill
The Air Waybill (AWB) is a crucial air freight document that acts as a contract of carriage between the shipper and the airline. It includes carrier information, shipper and consignee details, shipment description, and terms and conditions, ensuring safe transport from origin to destination.
Alternative Rates
Alternative rates refer to flexible pricing in the freight industry, allowing companies to adjust costs based on variables such as volume, distance, and market conditions. This customised approach helps optimise expenses, improve budget predictability, and maintain competitiveness despite fluctuating market dynamics.
Apparent Good Order
Apparent good order refers to goods that appear to be in satisfactory condition when visually inspected upon receipt. This term is important in shipping and often appears in documents such as bills of lading. It does not account for hidden defects and is essential for assessing liability and insurance claims.
Arrival Notice
An arrival notice is a critical shipping document alerting recipients about an impending shipment arrival. It includes shipment details, consignee info, arrival dates, and required documentation for smooth delivery and customs clearance. It's vital for efficient resource allocation and avoiding delays.
ATA Carnet
ATA Carnet simplifies the temporary importation of goods into foreign countries without paying duties. Valid for up to a year and accepted in over 70 countries, it covers commercial samples, professional equipment, and exhibition items, enabling cost-effective and streamlined cross-border movement.
Automated System for Customs Data (ASYCUDA)
Automated System for Customs Data (ASYCUDA) is a system by UNCTAD that streamlines global customs by automating processes, reducing errors, and speeding up trade. It manages customs declarations, supports risk management, and adapts to country needs. ASYCUDA enhances trade flow, boosts revenue, and promotes transparency in international trade.
B
Backfreight
Backfreight refers to the return shipment of goods to their origin or another location, often due to damage, excess stock, or customer returns. It minimises costs by using vehicles on return trips, reducing empty journeys and improving logistics efficiency in a more sustainable way.
Beneficial Cargo Owner (BCO)
A beneficial cargo owner (BCO) is the person or company that owns the goods being shipped by sea. They directly engage with carriers, negotiate rates, and oversee logistics from production to delivery. BCOs influence supply chains, promote sustainable practices, and shape trade policies, impacting global shipping.
Bill of Exchange
A bill of exchange is a written document in which the drawer instructs the drawee to pay a specified amount to the payee, either on demand or at a future date. It involves the roles of drawer, drawee, and payee, and can be classified as a demand bill or term bill, supporting secure and flexible commercial transactions.
Bill of Health
A bill of health in shipping is a certificate confirming that a vessel is free from contagious diseases. It plays a vital role in ensuring the safe transport of goods and gaining entry into ports. Signed by a port health officer, it verifies that the crew and cargo meet global health regulations to prevent the spread of disease.
Bill of Lading (B/L)
A bill of lading (B/L) is a legal document issued by a carrier to a shipper, serving as a receipt for goods, a document of title, and a contract of carriage.
Bill-to Party
The bill-to party in freight is the entity responsible for paying transport charges, distinct from the shipper or receiver. This process streamlines payments, enhances transparency, and provides operational flexibility. Effective implementation requires clear roles, proper documentation, and regular review.
Binding Origin Information (BOI)
A binding origin information is an official certificate from customs authorities that verifies the origin of goods for tariff purposes. It supports consistent customs declarations, helps access preferential rates, and requires detailed documentation. It is vital for smooth trade but must be updated if production changes.
Break Bulk Cargo
Break bulk cargo involves transporting large or heavy items individually rather than in containers. This method suits oversized goods like machinery or vehicles, requiring special equipment for handling. Though it predates container shipping, it remains crucial for items not suited to standard containers.
Bulk Cargo
Bulk cargo involves large, unpacked quantities of goods like grains, coal, and oil. It is moved using vessels, trains, or trucks optimised for massive loads. Dry and liquid bulk categories include materials such as grain and oil. Challenges include spillage and environmental risks, addressed by technological advancements.
Bulk Freight Container
Bulk freight containers are specialised shipping units for transporting large quantities of goods. There are several types, such as dry, liquid, refrigerated, and open-top. Choosing the right type depends on the goods’ nature, volume, and destination. Challenges include regulatory compliance and infrastructure limitations.
Bulkhead
A bulkhead is a barrier or partition within a vehicle or container used in freight. Its purpose is to provide restraint and protection for cargo by preventing movement during transit. Types include fixed, removable, and collapsible bulkheads, with applications in maritime, road, and air transport.
C
Cargo Manifest
A cargo manifest is a detailed list of all items transported in a shipment, including descriptions, quantities, origin, destination, consignor, and consignee details. It's crucial for safety, customs clearance, and logistics, ensuring transparency and preventing delays or legal issues.
Carnet
A carnet is like a passport for goods, enabling tax-free temporary transport across countries, crucial for international trade. It reduces costs, simplifies customs, and allows flexible entry to multiple nations. Utilised by event organisers, media crews, and performers, it's recognised by over 80 countries.
Certificate of Insurance (COI)
A Certificate of Insurance (COI) is a document that confirms a business has an insurance policy in place to cover specific risks or liabilities. It is crucial in sectors like freight as it provides assurance and fosters trust by confirming coverage against unexpected incidents or damages during operations.
Certificate of Origin
A Certificate of Origin is a crucial document in international trade confirming the country from which the goods originated. It influences border handling, taxes, and trade agreement eligibility. Exporters and importers need it to avoid delays or fines. It comes in non-preferential or preferential forms, depending on trade terms.
Combined Transport
Combined transport is also known as intermodal transport. It refers to the movement of goods using multiple modes of transport such as trucks, trains and ships, without having to handle the goods during mode changes. This method enhances efficiency, lowers costs and reduces environmental impact, though it relies on well-coordinated logistics.
Combined Transport Bill of Lading
A combined transport bill of lading streamlines shipping across multiple transport modes under one contract, serving as both a receipt and a legal contract between shipper and carrier. It simplifies logistics, reduces paperwork, and outlines liabilities, providing protection and efficiency in cargo transit.
Consolidation Fee
A consolidation fee is a charge by shipping companies to combine smaller loads into a larger shipment to optimise space and reduce transportation costs. It covers tasks like sorting and repacking, leading to cost savings compared to separate shipments.
Consolidator
A consolidator combines multiple smaller shipments into a single larger consignment to maximise shipping space and lower transportation costs. Consolidators play a vital role for small to medium-sized enterprises by offering access to more economical freight rates. Common types include air, ocean, and land freight consolidators.
Consular Invoice
A consular invoice is an essential document in international trade, required by certain countries for importing goods. Issued and certified by the consulate of the destination country, it details the contents and value of the shipment. This certification helps customs in verifying the shipment, assessing duties, and preventing fraud or misunderstandings in international trade.
Container Freight Station
A container freight station (CFS) is vital in global logistics to consolidate or deconsolidate cargo for transport. It aids in customs clearance, offers temporary storage, and enhances supply chain efficiency. Located near ports, it supports smaller businesses in international trade.
Container Stuffing List
A container stuffing list is a detailed inventory document for shipping, listing each product's description, quantity, weight, and sometimes placement inside a container. This document ensures transparency, facilitates customs procedures and helps optimise both space and cost, contributing to a smoother and more efficient shipping process.
Container Terminal
Container terminals play a vital role in global trade by transferring cargo containers between ships, trucks, and trains. Their efficiency depends on well-organised operations and advanced technology. These terminals handle different types of cargo, manage challenges like congestion and environmental impact, and use smart technologies to improve performance.
Country of Origin Marking
Country of origin marking shows where a product was made or significantly transformed. It's vital for consumers' purchase decisions and businesses' compliance with trade regulations. Methods include physical and digital labelling, though global supply chains complicate accurate origin determination.
Customs Invoice
A customs invoice is essential for international shipping, detailing the shipment's contents, value, and terms. It includes shipper/receiver info and item descriptions, aiding customs in duty and tax assessment. Accurate preparation reduces delays, ensuring smooth customs clearance and compliance with regulations.
Cycle Time
Cycle time in freight is the total duration of moving goods from origin to destination, involving order processing, transit, and delivery. It's key to customer satisfaction and efficiency. Optimising it minimises costs and improves service, leveraging tech and strategic planning for improvement.
D
Declared Value Coverage
Declared value coverage allows shippers to set a value on a shipment, raising the carrier's liability. Unlike insurance, it enhances liability limits without covering all risks. It's vital for costly items to ensure compensation reflects the shipment's true worth, involving an added surcharge.
Deconsolidation
Deconsolidation is a logistics process where a bulk shipment is divided into smaller parcels at a central hub. This allows efficient distribution to the final destination, enhancing flexibility, reducing costs, and improving delivery speed. This process requires precise planning and strong coordination to avoid errors and prevent delays.
Delivery Order
A delivery order is an official document issued by a carrier authorising the release of cargo to a designated party. It contains details like consignee information, port of discharge, container and seal numbers, and goods description. It is vital for customs clearance and simplifying logistics operations.
Demurrage
Demurrage charges are fees for keeping a chartered ship at port beyond the agreed time to encourage efficient cargo handling and minimise port delays.
Detention
Detention in the freight industry refers to the fees carriers charge when a shipper or receiver holds a truck, container, or other freight equipment beyond the free time allowed for loading or unloading. These charges help compensate carriers for delays and encourage efficient operations.
Devanning
Devanning is unloading cargo from a container for distribution. It involves opening containers, handling goods, inventory checks, and sorting for storage or further transport. Efficient devanning saves time, reduces costs, and minimises damage risk, enhancing supply chain flow.
Disbursement Service Fee
The disbursement service fee is charged by shipping companies to cover expenses on behalf of importers or exporters, such as port charges or customs duties. This service helps streamline payment processes, ensures timely cargo handling, and supports better budget management. It can present challenges such as limited cost transparency and the risk of unexpected charges.
Dock Receipt
A dock receipt is a crucial document in shipping which acknowledges that export cargo has been received at the dock in good condition. It includes shipper and consignee details, goods descriptions, and vessel info. It serves as an interim receipt before goods are loaded and helps ensure smooth logistics operations.
Drayage
Drayage refers to the short-distance transport of goods, typically from a port to a nearby warehouse or distribution centre. It’s vital for relieving port congestion and ensuring efficient supply chain operations. Despite regulatory challenges and driver shortages, technology aids in optimising drayage processes.
Dry Dock
Dry docks are essential in the maritime industry for the repair and maintenance of ships. They allow vessels to be floated in, drained, and accessed for hull cleaning, painting, repairs, and inspections. This ensures safety, compliance with standards, and environmental conservation by reducing fuel use and invasive species.
E
E2 | Import Entry Acceptance Advice
The E2 (Import Entry Acceptance Advice) is a customs notice that confirms the receipt and processing of an import declaration. It does not indicate duty payment or clearance, but helps track the shipment's status. Accurate documentation is key to avoiding delays.
Electronic Shipping Instruction (ESI)
An electronic shipping instruction (ESI) is a digital document sent electronically by the shipper to the carrier, providing detailed cargo transportation instructions. By digitising the process, ESI enhances accuracy, speeds up shipping, reduces costs, and supports environmental sustainability.
Entry Form
An entry form is a document used to collect and organise information needed for specific activities. In logistics, it's essential for tracking goods, ensuring compliance with customs regulations, and aiding the smooth flow of international trade by documenting key product details.
Equipment Interchange Receipt
An equipment interchange receipt (EIR) is a legal document used in maritime shipping to record the transfer of responsibility for a container between parties. It documents the container's condition at the time of interchange, helping to prevent disputes and supporting logistical planning, communication, and tracking.
Exception Rate
An exception rate is a special freight charge that differs from standard rates, used when certain conditions make regular pricing unsuitable. It typically applies to shipments with unique cargo features or delivery requirements, offering flexible pricing to handle unusual shipping situations without affecting service quality.
Expected Receipt Date (ERD)
The expected receipt date (ERD) is the anticipated arrival day for goods at their destination. It is crucial for logistics planning, managing resources, and setting customer expectations. It varies by transportation method and is influenced by departure date, transit time, customs, and potential delays.
Expedited Freight
Expedited freight is a shipping service designed for speed, making it ideal for urgent deliveries. Bypassing standard procedures ensures faster transit times with fewer stops and the most efficient routes. This prioritisation comes at a premium cost, making it a crucial option for time-sensitive business logistics.
Export Control Classification Number (ECCN)
An Export Control Classification Number (ECCN) is a five-character code that categorises items under export control laws. It helps determine if an export licence is required, focusing on technical specs, use, and destination. It's crucial for compliance, mainly affecting dual-use items in sensitive sectors.
Export Declaration
An export declaration is a legal document required in international trade that provides detailed information about goods being shipped. It ensures compliance with trade laws, prevents fraud, and helps customs assess shipments. Accurate filing is crucial to avoid delays and ensure smooth processing.
Export License
An export license is a government-issued document that permits the export of specific goods to a certain country, ensuring compliance with the destination's regulations. It's essential for controlling the movement of high-value or dual-purpose items, supporting national security and international policies.
Exporter Identification Number (EIN)
An Exporter Identification Number (EIN) is a unique identifier assigned to businesses involved in exporting goods. It is essential for tracking international shipments, ensuring compliance with regulations, and streamlining customs processes. Obtaining an EIN typically involves registering with relevant authorities.
Express B/L
An Express Bill of Lading (Express B/L) is a maritime shipping document that primarily acts as a receipt of goods. It simplifies the shipping process by bypassing some traditional procedures, thereby enabling faster delivery to the consignee compared to standard bills of lading.
F
Feeder
A feeder is a smaller vessel used to transport containers between regional or smaller ports and major hub ports. Feeder services support hub-and-spoke shipping networks, improving connectivity and efficiency across global maritime supply chains.
Feeder Ports
Feeder ports are smaller or regional ports that connect to larger international hub ports through feeder services. They play a key role in extending shipping networks, consolidating cargo, and improving access to global trade routes.
Feeder Service
A feeder service is a maritime transport service that moves containers between smaller ports and major hub ports using feeder vessels. These services enhance network reach, optimise routing, and support efficient cargo distribution across global supply chains.
Fill Rate
Fill rate is a supply chain performance metric that measures the percentage of customer demand fulfilled from available inventory without delays or backorders. It is commonly used to assess fulfilment efficiency, inventory management, and service reliability.
Force Majeure
Force majeure refers to unforeseen events beyond the control of contracting parties that prevent the fulfilment of contractual obligations. In shipping and logistics, this may include natural disasters, extreme weather, port closures, strikes, or government actions, and is typically addressed through clauses in transport and service contracts.
Free In/Liner Out (FILO)
Free In / Liner Out (FILO) is a shipping term that defines the allocation of cargo handling costs. Under FILO terms, the shipper is responsible for loading costs at the port of origin, while the carrier covers unloading costs at the destination port, as agreed in the freight contract.
Freight Collect
Freight collect is a shipping term where transportation charges are paid by the consignee at the destination rather than by the shipper at origin. The payment responsibility is agreed in advance and stated in the freight contract or bill of lading.
Freight Forwarder
A freight forwarder is a logistics service provider that organises the movement of cargo on behalf of shippers. Freight forwarders coordinate transport across multiple modes, manage documentation and customs processes, and oversee the efficient delivery of goods across international supply chains.
Full Container Load (FCL)
Full Container Load (FCL) is a shipping method in which a container is used exclusively for one shipper’s cargo. The shipper has full use of the container, making FCL suitable for large or high-volume shipments.
Fumigation Certificate
A fumigation certificate is a document confirming that a shipment, or its packaging, has been treated to eliminate pests. It is commonly required for wood packaging materials and certain agricultural goods to meet destination country phytosanitary and import rules and to reduce the risk of border delays or rejection.
G
Garment on Hanger (GOH)
Garment on hanger (GOH) is a logistics method used in fashion supply chains where garments are transported and stored on hangers rather than folded. This helps reduce creasing, supports faster store replenishment, and can lower handling time in warehouses. It typically needs specialised equipment and more space than flat packed shipments.
Gate Out
Gate out is the point when a container or cargo unit physically exits a terminal or depot through the gate, marking the handover to the next inland move. It is often recorded as a milestone in tracking and can be used to calculate storage time, demurrage, detention, or service level performance.
Gating In
Gating in is the point when a container or cargo unit enters a terminal or depot through the gate and is recorded in the operating system. It is a key tracking milestone that confirms receipt at the facility and supports planning for storage, inspection, loading, or onward transport.
General Order (GO)
General order (GO) is a status applied to cargo that is not cleared and released within the required time at the port of discharge. It typically happens when customs clearance is delayed due to missing or incorrect documentation, unpaid charges, inspection holds, or consignee issues. Cargo moved into general order storage may incur additional storage and handling fees until it is cleared, claimed, or otherwise disposed of in line with local regulations.
H
Haulage
Haulage involves transporting goods via road or rail, which is essential for sectors like agriculture and retail. It facilitates efficient product movement from producers to consumers and helps businesses make informed logistics choices while addressing varied transportation needs through general, specialised, refrigerated, and heavy haulage.
Heavy Lift Surcharge
The heavy lift surcharge is an extra fee charged by shipping companies for transporting exceptionally heavy cargo. It covers the cost of specialised equipment, additional labour, increased risk, and extended handling time. The surcharge is calculated based on weight, distance, and destination.
High Cube Non-Functioning Reefer (HNOR)
A High Cube Non-Functioning Reefer (HNOR) is a refrigerated container that no longer operates for cooling. It resembles standard high cube containers but is distinguished by its former refrigeration capability.
House Airway Bill
A House Air Waybill (HAWB) is a document issued by a freight forwarder to a shipper when goods are being transported by air. It serves as a receipt of goods from the shipper, detailing the terms of carriage between the shipper and the freight forwarder.
House Bill of Lading
A House Bill of Lading (HBL) is a shipping document issued by a freight forwarder to a shipper. It states the shipment details, terms, and transport route, and acts as a receipt, title, and transport contract. It differs from a Master Bill of Lading, which is issued by the shipping line.
Hustler
A Hustler is a specialised vehicle in freight yards that efficiently moves trailers within tight spaces, enhancing container positioning and yard productivity.
I
Import Cargo Manifest (ICM)
The import cargo manifest is a detailed document listing goods entering a country, essential for customs clearance. It includes shipper and consignee details, bill of lading numbers, and descriptions of goods. Accuracy in the manifest ensures compliance, avoids delays, and maintains business reputation.
Importer Security Filing (ISF)
Importer Security Filing (ISF) is a federal requirement where importers must forward specific shipment details to Customs at least 24 hours before sea freight loading. This step strengthens freight security, supports faster screening, and helps prevent fines or shipping slowdowns.
Incoterms®
Published by the ICC, Incoterms® are globally recognised trade rules that define buyer and seller responsibilities for cost, risk, and logistics at each stage of goods delivery.
Inland Bill of Lading
An Inland Bill of Lading is a foundational freight form, serving as a contractual commitment and cargo confirmation between shipper and carrier for surface shipping. It specifies shipment specifics, ensures seamless scheduling, secure handover, and smooth coordination in cross-country carriage.
Inland Haulage Charges (IHC)
Inland Haulage Charges (IHC) are charges tied to transporting cargo from a port to an inland point or the other way around, typically via truck or train. Key factors include cargo type, transport mode, container size, and cost of fuel.
Insurance Certificate
An Insurance Certificate is proof of insurance coverage, detailing the type, limits, and duration of the coverage for an asset or party under a specific policy. It's a concise summary ensuring stakeholders that insurance is in place for operations, not the full insurance policy document.
Integrated Carriers
Integrated carriers offer end-to-end logistics solutions, managing the entire supply chain from collection to delivery. They encompass transportation, warehousing, and compliance, providing efficiency, cost savings, a single contact point, and advanced technology for streamlined operations.
Intermodal Transport
Intermodal transport merges various transportation modes like train, truck, and ship, within one container, enhancing efficiency and lowering costs. Containers standardise global handling, reducing emissions and securing goods.
Interruption of Transit Coverage
Interruption of Transit Coverage insures shipments against delays caused by unforeseen events like strikes, accidents, or natural disasters. It helps prevent financial losses and supports supply chain continuity during unexpected transit disruptions.
L
Landed Cost
Landed cost is the total price of a product delivered to the buyer, including purchase price, shipping, insurance, duties, taxes, handling and other fees. Understanding these expenses is crucial for accurate budgeting, setting competitive prices and optimising profit margins in international trade.
Last-Mile Delivery
Last-mile delivery is the final stage of the delivery process, where products are transported from a distribution hub to the customer, with a focus on rapid and efficient arrival.
Less-Than-Truckload (LTL)
In less-than-truckload (LTL) shipping, freight is combined with shipments from multiple customers. A carrier collects the goods and transports them to a terminal, where they are consolidated with other shipments moving to similar destinations. The truck then follows a multi stop route, unloading freight at various points until all deliveries are complete. Because transport costs are shared among several shippers, LTL shipping is often more economical than full truckload services.
Liftgate Fee
A liftgate fee is charged when a freight carrier uses a truck’s hydraulic lift to load or unload heavy cargo, particularly at locations without loading docks. This fee covers the cost of the specialised equipment and additional labour required to ensure safe and efficient handling, especially in residential areas or at small businesses without material handling facilities.
M
Main Line Operators (MLO)
Main line operators (MLOs) own and operate vessels for transporting goods on major trade routes. They provide essential shipping services, maintaining fleets and managing logistics to ensure efficient and economical movement of goods globally.
Manifest
A manifest is a key shipping document detailing all cargo on a vessel or vehicle and providing inventory transparency. It lists items, quantities, consignee and consignor information and journey details. Crucial for customs clearance, it ensures compliance and efficiency. Digital manifests enhance accuracy and efficiency.
Master B/L
A master bill of lading (B/L) is issued by an ocean carrier to a freight forwarder or NVOCC. It serves as a cargo receipt, a contract of carriage and a title document, establishing legal ownership and facilitating international trade.
N
Non-Negotiable Bill of Lading
A non-negotiable bill of lading serves as a receipt in shipping, acknowledging goods received for shipment without transferring ownership. Only the named consignee can take delivery, reduce fraud risks and ensuring secure, predetermined delivery. It is commonly used for fixed transactions.
Non-Reimbursement Statements
A non-reimbursement statement specifies expenses that will not be refunded, helping to clarify financial responsibilities. Common in freight and other industries, it promotes transparency and prevents disputes by outlining non-reimbursable costs.
Notify Party
A notify party is an entity notified when a shipment arrives at the destination port. While the consignee is the legal recipient of the goods, the notify party is informed for coordination purposes. This helps prevent delays and facilitates communication among stakeholders in the logistics chain.
O
Ocean Freight
Ocean freight is an economical method of transporting large volumes of goods by sea using containers. It is crucial for global trade, offers cost savings over air shipment and is more environmentally friendly. However, it involves longer transit times and potential weather related delays. Costs depend on distance, volume, weight and applicable surcharges.
Ocean Transport Intermediary (OTI)
An ocean transport intermediary (OTI) facilitates global trade by coordinating logistics between shippers and carriers. Comprising freight forwarders and non-vessel operating common carriers (NVOCCs), OTIs manage shipping operations, negotiate rates, ensure compliance with regulations and optimise supply chains.
Ocean Waybill
An ocean waybill is a non negotiable document used in shipping. It acts as a receipt and a contract without requiring an original document for cargo release.
Order Management System (OMS)
An order management system is software that manages customer orders from creation to fulfillment, streamlining processes to improve efficiency and customer satisfaction. Key functions include order processing, inventory management and customer communication, with scalability to support growing businesses.
Origin Charge Catalogue (OCC)
The origin charge catalogue outlines essential expenses in international shipping, including loading fees, terminal handling, documentation and customs clearance. It is important for cost estimation, transparency and negotiation in logistics, helping businesses manage and minimise origin charges effectively.
Origin Motor Terminal (OMT)
The origin motor terminal (OMT) is the starting point in road transport where goods are collected, consolidated and loaded for distribution. Efficient OMT operations ensure organised, timely and cost-effective road transportation of shipments from multiple suppliers.
Origin/Destination Booking Services (OBK/DBK)
Origin and destination booking services manage shipment bookings from the starting point to the final destination, ensuring smooth and organised transportation of goods in the logistics and freight industry.
Original Bill of Lading (OBL)
The original bill of lading is a key document in shipping, acting as a receipt, a carriage contract and proof of ownership. It lists critical details and is vital for claiming goods at the destination. Careful handling is essential to avoid delays or legal issues in international trade.
Out-of-Gauge Cargo
Out-of-gauge cargo refers to items too large for standard shipping containers, such as heavy machinery or large vehicles. These require special transport solutions such as flat racks or open top containers. Effective handling demands precise planning, proper securing techniques and consideration of transit regulations.
P
Pallet Charge
A pallet charge is a fee charged by logistics firms for the use, rental or handling of pallets during shipping. The cost is influenced by factors such as pallet type, size, ownership and location. Businesses pay pallet charges to ensure standardised pallet quality and handling, and these fees contribute to overall shipping expenses.
Port Declaration
A port declaration is a legal document required for goods entering or leaving a country's port. It includes the vessel details, a description of the goods, consignor and consignee information, route details and customs data. Its purpose is to ensure compliance with trade regulations and facilitate the smooth movement of cargo.
Port Filings
Port filings are essential documentation submitted by ships at ports, detailing vessel, cargo and crew information to comply with customs, security and environmental regulations. Accurate filings help ensure smooth trade, prevent delays and minimise legal risks, while digital tools make the process faster and more accurate.
Port of Loading
The port of loading is the location where cargo is loaded onto vessels for international shipments. It serves as the starting point for the shipment of goods and involves key operations such as processing, documentation checks and secure loading. Ports of loading play a vital role in global trade, influencing schedules and costs while managing challenges such as congestion.
Pre-Trip Inspections
Pre-trip inspections assess a vehicle's readiness before journeys in the freight industry, ensuring safety, cost efficiency and compliance with regulations. They involve checking brakes, lights, tyres, fluids and steering. Digital tools and proper training help improve the accuracy and effectiveness of these inspections.
Proforma Invoice
Proforma invoices are preliminary documents that outline goods, prices and terms before a sale is finalised. They are used to support buyer and seller agreements and assist with financing and import processes by providing advance details of items, costs and conditions.
Proof Of Delivery (POD)
Proof of delivery (POD) confirms that goods have been delivered to the intended recipient. It typically includes the recipient's signature, delivery date and time, item description and condition of goods. PODs may be paper based or electronic, with electronic versions providing instant updates and simplified record keeping.
Q
Quay
A quay is a platform built parallel to the shoreline, used for loading and unloading ships. Constructed from durable materials, quays support logistics by enabling quick cargo transfers between sea and land. Equipped with cranes, they facilitate efficient trade and connect transport routes for seamless distribution.
R
Railhead
A railhead is the endpoint of a railway line where trains stop to unload goods for further distribution. It serves as a transition point for transferring cargo from rail to other transport modes, such as trucks, and is crucial for efficient supply chain management and logistics operations.
Railway Waybill
A railway waybill is a crucial document in rail transport, outlining key details such as sender and receiver information, shipment specifics, route, and billing instructions. It facilitates efficient cargo tracking and delivery by serving as both a contract and a receipt. Primarily focused on logistics, the railway waybill ensures smooth transportation and accountability.
Rate Agreement
A rate agreement is a contract between a shipper and a carrier that defines transport terms and fixed rates for a specific period. It provides cost predictability, supports budgeting, and helps build long-term partnerships, even during market or economic fluctuations.
Received for Shipment Bill of Lading
A received for shipment bill of lading is a logistics document that confirms the carrier has received the goods but has not yet loaded them onto the vessel. It serves as a contract between the shipper and the carrier, detailing the cargo specifics. This document differs from a shipped-on board bill of lading, which confirms that the goods have been loaded.
Reefer
A reefer is a refrigerated container used in shipping to transport temperature-sensitive goods. It has a built-in refrigeration unit and insulation to maintain constant temperatures. Essential in the food industry, a reefer uses smart technology for monitoring and efficient systems for sustainable operation.
Roll-on/Roll-off (Ro-Ro)
Roll-on/Roll-off (Ro-Ro) is a shipping method used to transport wheeled cargo such as cars, trucks, trailers, heavy machinery, and military equipment. Specialised vessels are equipped with built-in ramps that allow vehicles to be driven on and off the ship, making loading and unloading faster, more efficient, and less labour-intensive. This method reduces handling, minimises the risk of damage, lowers costs, and provides a flexible, cost-effective solution for transporting large or mobile cargo across global supply chains.
Rolled Cargo
Rolled cargo refers to shipments that are not loaded onto the intended vessel but are instead rescheduled for a later departure, resulting in delays. Common causes include overbooking, documentation errors, customs issues, and operational disruptions. This can affect costs, delivery timelines, and overall supply chain continuity.
S
Said to Contain (STC)
The term said to contain (STC) appears in shipping documents such as bills of lading to indicate that the carrier has received a container based solely on the shipper's description of its contents, without verifying them. It limits the carrier's liability and supports faster, more efficient handling.
Shipper's Letter of Instruction (SLI)
The Shipper's Letter of Instruction (SLI) guides freight forwarders by detailing the shipper's requirements, ensuring goods move correctly across borders, meet expectations, and comply with international trade regulations.
Special Customs Invoice
A special customs invoice is a detailed document used in international trade. It includes item descriptions, values, origins, and delivery terms. Essential for customs clearance, it helps determine duties and taxes while ensuring compliance with regulations and differs from standard invoices.
Supply Chain Management
Supply chain management oversees the flow of goods and services, from the movement of raw materials to finished products. It involves planning, sourcing, manufacturing, delivery, and returns. Technology improves efficiency, while globalisation and challenges such as demand forecasting influence evolving strategies.
Switch Bill of Lading
A switch bill of lading is a second set of transport documents issued to amend details of a shipment's terms without retrieving the original bill. It enables confidentiality, alters the destination, and updates trade terms mid-transit, but requires strict verification to prevent fraud and ensure legal compliance.
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Telex Release
Telex release refers to an electronic confirmation that the original bill of lading has been surrendered, enabling cargo to be released at the destination without the need to present the physical document.
Terminal Handling Charge at Destination (DHC)
A destination terminal handling charge covers the cost of handling a container at the destination terminal after arrival, such as discharge and movement within the terminal for onward collection or transfer.
Terminal Handling Service at Origin (OHC)
A terminal handling service at origin covers the activities and costs at the origin terminal before loading, such as receiving, storage, inspection and loading. Charges vary by port, cargo type and equipment.
Terms of Carriage
Terms of carriage are the contractual conditions that define the rights, responsibilities and liabilities of the carrier and customer for a shipment. They usually cover areas such as cargo description, delivery terms, limits of liability and claims.
Through Rates
Through rates are charges quoted as one combined rate for moving goods from origin to destination across more than one transport stage. They simplify pricing by avoiding separate rates for each leg.
TIR Carnet
A TIR carnet is a customs transit document that allows goods to move across multiple borders with fewer inspections, as long as the load remains sealed and procedures are followed.
Total Cost of Distribution (TCD)
Total cost of distribution is the combined cost of storing and moving goods from the point of supply to the customer. It typically includes transport, warehousing, inventory holding and order processing.
Transmittal Letter
A transmittal letter is a short covering note sent with documents to explain what is enclosed and what action is needed. In shipping, it is often used to accompany document packs and clarify handling instructions.
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Ultra Large Container Ship (ULCS)
An ultra large container ship is a very large container vessel designed to carry high volumes of cargo, often exceeding 18,000 TEU. These ships support global trade by improving transport efficiency, but require deep water ports and specialised terminal infrastructure.
Ultra Large Crude Carrier (ULCC)
An ultra large crude carrier is a tanker vessel built to transport extremely large quantities of crude oil, typically exceeding 320,000 deadweight tonnes. These vessels are used on long-haul routes and require specialised terminals due to their size and draft.
Unclean Bill of Lading
An unclean bill of lading, also called a claused bill, includes notes about problems such as damaged goods or inadequate packaging. These remarks can affect payment, insurance, and dispute handling because they signal the cargo was not received in apparent good order.
Uniform Customs and Practice (UCP)
UCP is a set of International Chamber of Commerce rules used for documentary credits, including letters of credit. It standardises document requirements and handling, helping reduce disputes between banks and trading parties.
Utilisation Rate
Utilisation rate measures how effectively assets such as vehicles, vessels, or equipment are used over a defined period. It is expressed as a percentage and helps identify efficiency levels and potential capacity gaps.
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Valuation Charges
Valuation charges are fees imposed by carriers for the declared value of items being shipped, offering financial protection in case of loss or damage. They bridge the gap when a carrier’s liability doesn’t match the item's value. Calculated as a percentage of the declared value, they ensure proper compensation.
Vessel Manifest
A vessel manifest is a comprehensive document listing all cargo on a ship, detailing types of goods, quantities, and parties involved. It facilitates customs verification, compliance with international regulations, and aids in calculating duties, ensuring efficient and legal global shipping operations.
Volume charge
In international shipping, a volume charge is a fee based on the space cargo occupies. Understanding it is crucial for businesses and logistics managers to accurately assess freight costs and ensure efficient, cost-effective transportation of goods.
Volume Rate
Volume rate in shipping is a pricing model where costs are based on the space a shipment occupies, measured in cubic units, rather than its weight. It's economical for large, light, or oddly shaped items. This approach aids in budgeting and encourages efficient packaging to minimise volume.
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Weight Cargo
Weight cargo refers to goods where shipping considerations prioritise mass over volume. Essential for cost-efficient logistics, it impacts transport choices and costs. Proper weight management ensures legal compliance and safety, using actual and dimensional weight measurements for accurate calculations.
Weight Charge
Weight charge is the cost set by the cargo's weight rather than its size. In air freight, carriers calculate using actual or volumetric weight, choosing the higher. This ensures fair pricing for space used. Understanding this helps in managing shipping costs effectively.
Wharfage
Wharfage is a fee charged by port authorities for using their facilities to load or unload cargo. It varies based on cargo type, volume, weight, and port-specific rules. These fees support port infrastructure and influence shipping costs. Understanding this fee is key for logistics planning.
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Zone Rate
Zone Rate is a shipping pricing model using geographical zones for cost prediction, offering simplicity and scalability for businesses.