Logistics Jargon Guide
At QUUOTE.me, we understand that the shipping realm can be inundated with complex terminology. This motivated us to compile a shipping terms glossary. Whether you’re engaging with a courier regarding rates and services or conversing with customers about various delivery choices, you’ll have a reliable reference for freight terms and shipping abbreviations. So, venture into shipping confidently!
3PL
a business that offers logistical services, including transportation and storage.
4PL
For manufacturing firms, a fourth-party logistics (4PL) provider manages all aspects of logistics, including infrastructure, technology, and resources. They can also be responsible for external third-party logistics (3PL) monitoring. For medium-sized and large enterprises, they develop, construct, and offer supply chain solutions.
API
A collection of procedures, guidelines, and resources for creating software applications is known as an application programme interface, or API. In essence, an API defines the interface between software components.
Agent
A licenced agent handles the cargo ship's business in port operations, handling things like insurance and documents on behalf of the owner.
Arrival Notice
An Arrival Notice is a message sent by the shipping company to inform you that your package has reached its destination.
Base Rate
The cost of shipping a package before any possible additional charges or fees (such handling or residential) are levied is known as the base rate.
Bill Of Lading
a formal document that couriers provide to shippers, detailing the kind, value, and final destination of the cargo they are transporting.
Bonded Warehouse
A private corporation running a warehouse abroad is known as a bonded warehouse.
Bulk Cargo
Commodity cargo that is transported in bulk is unpackaged freight in big numbers.
Bulk Shipping
a significant amount of cargo transported between locations.
CIF
A seller's payment to cover the cost, insurance, and freight of a buyer's order during transit is known as "cost, insurance, and freight" (CIF).
Carrier
a business or individual with the legal right to convey commodities by air, sea, or land.
Carrier Liability
When a carrier is liable for delays, damages, or loss of a package
Certificate Of Origin
A significant international document identifying the nation from where a shipment was being transferred.
Claim
a formal demand filed against a carrier by a shipper or consignee for missing or damaged packages.
Consignee
an organisation that bears the financial burden of receiving a shipment.
Courier
a person or organisation in charge of arranging exchanges of goods between two or more parties.
Cross Border Shipping
when products are shipped across international borders.
Custom Clearance
The procedure through which countries conduct customs clearance to permit the import or export of goods into and out of their borders in accordance with certain legal requirements
Customs
an official government agency in charge of managing goods imports into a nation
Customs Broker
a licenced company in charge of facilitating the delivery and shipment of products across international borders.
Customs Duty
a levy placed on the import and export of products during cross-border transportation.
Customs Invoice
a paper that is sent overseas with packages that contains the necessary details about the contents.
crowdfunding
a strategy for using the internet to raise modest amounts of money from a big number of individuals for a project, product, or business.
DDP
Delivery Charge With paid shipping, the vendor assumes all costs and shipping risks associated with the product delivery. See DDP
DDU
Delivery Charge Unpaid deliveries require the buyer to cover all import duties, taxes, and customs clearance costs at the time of delivery. See DDU/DPU
Dimension Weight Charge
Couriers use a shipment pricing model where the size of the box is more expensive than its weight.
Dispatch
refers to the phase of shipping where a product is prepared for shipment via packing.
Distribution Center
a sizable hub for wholesalers and merchants where products are redirected to different clients or locations.
Door-To-Door
a kind of shipping container that will be delivered to the customer's designated location after being picked up from a warehouse.
Drayage
transporting products by ground freight over a short distance.
Dropshipping
a model for fulfilling online retail orders in which goods are bought straight from suppliers and sent straight to customers rather than being stocked in a store.
Duties And Taxes
Taxes that are gathered by the government from the import and export of products. See more info on Duties & Taxes
ETA (Estimated Time Of Arrival)
The estimated time or date on which a cargo is expected to reach the address a client enters.
Exempt Carrier
A business using cars to transport goods or provide services that are exempt from legal regulations.
Expedited Shipping
a kind of commodities shipping in which shipments and goods are delivered more quickly than with regular shipping.
Export
the movement of goods across international borders.
Last Mile
The last mile of the package delivery process, typically from the distribution warehouse to the address the customer supplied.
FOB
a kind of shipping in which the provider is still in charge of the products up until they are loaded "on board" a ship. See FOB
Free Trade Zone
a region that can be used for the landing, handling, storage, manufacturing, reconfiguration, and export of commodities.
Freight
the bulk products and commodities carried by truck, train, ship or aeroplane in a container.
Freight Shipping
the actual act of moving large items and commodities by truck, train, ship, or aeroplane.
Fuel Surcharge
An additional charge that trucking companies (or other third parties) impose in order to offset the variable cost of fuel
Fulfillment
the procedure for receiving, packing, and delivery of items.
Full Container Loaded (FCL)
Every item in the container is owned by the same party and is detailed on a single Bill of Lading.
Full Truck Loaded (FTL)
Full truck loaded, which indicates that the shipment will occupy the whole truck.
Goods and Services Tax (GST)
a type of value-added tax that governments impose on the majority of goods offered for sale to the general public.
Gross Weight
the total weight of the products, their packaging, and the shipping container.
Harmonized Systems
A globally uniform system of designations and codes for categorising commercial goods
Haulier
A company or individual that uses the road to convey products
Hazardous Material
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In-Transit
The parcel is being transported
Inbound Logistics
obtaining, holding, and distributing supplies or materials for utilisation.
Intermodal Transportation
goods transported by use of two or more different means.
Inventory Management
inventory control and effective stock replenishment to guarantee that products are always available for purchase
Invoice
an accounting record that companies use to keep track of the goods that are transported from a seller to a customer.
Just In Time
a kind of inventory management where products aren't allowed to be sold until they reach the warehouse at a certain time.
Kilogram
The International System of Units' fundamental mass unit (SI)
Kitting
the procedure of assembling disparate but related SKUs into a package to generate a new SKU.
LCL (Less than Container Load)
loads of cargo being shipped by sea that are not big enough to fit within a shipping container.
LTL (Less-than-truckload shipping)
a shipment or commodities delivery that doesn't need a full truckload.
Labels
a kind of package identification that includes a tracking barcode, addresses, names, and weight information to describe what's inside the package.
Landed Costs
The whole cost of a good or shipment that the client has received.
Landing Certificate
a document provided by customs in the country of destination attesting to the entry or clearance of a specific consignment via customs
Logistics
the complete procedure for obtaining, storing, and moving shipments to their destination.
Manifest
A transport document that provides a thorough overview of all air waybills or bills of lading that a carrier has provided
Minimum Charge
The least amount that can be charged to ship something.
Net Weight
the product's starting weight without the packaging
Origin
the place where a package is initially picked up and transported.
Outbound Logistics
a procedure for keeping, moving, and distributing merchandise and sending it to clients
Packing List
a record that lists every package's weight, dimensions, and contents.
Packing Slip
A packing slip is a document that goes with the goods in a package, listing and documenting the sold items.
Payment Terms
Legalese outlining the payment terms for a transaction.
Pickup
a freight pickup service at the shipper's location
Pod (Proof of delivery)
an important record demonstrating the completion of a delivery.
Quarantine
the act of holding onto things until suitable testing can confirm their safety over an extended period of time.
Quota
a monetary cap on the quantity of a good or product that can be imported in a given period of time.
Quotation
an offer to sell products with specific terms and for a specified price.
Rate Basis
the combination of particular elements that affect freight prices.
Residential Surcharge
a cost that shipping companies apply to their packages in order to deliver them to residential addresses rather than business addresses.
Return Address
The sender's address where a package should be returned in the event that it cannot be delivered
SKU (Stock Keeping Unit)
utilised by vendors to locate and monitor their stock.
SMEs
Small and medium-sized companies with fewer employees than a predetermined threshold
Shipper
The individual or company in charge of getting the shipment ready and co-signing the merchandise with the carrier
Shipping Documents
forms that were sent with a shipment, including information about the date, method, quantity, and specs of the products.
Shipping Order
a document that the carrier issues confirming the booking of a shipment aboard a vessel and outlining the items to be transferred
Software as service (SaaS)
Software in the cloud that is provided online and licenced on a subscription basis.
Supply Chain Management
a procedure for generating and meeting requests for products and services
Surcharges
an extra charge that the carrier adds to the shipping cost.
Surtaxes
a levy imposed on top of an existing tax
Tariff
duties or levies imposed on goods by the government upon entry.
Transit Time
The amount of time it takes to deliver a shipment after it is picked up at the point of departure
Unloading Charges
an expense associated with removing a shipment from a ship.
Value Added Service
Extra services that forwarders offer in addition to the standard offering, include door delivery, customs clearance, and repackaging
Variable Cost
an expense or cost that changes directly with the volume of production.
Warehousing
a physical site for cargo distribution, consolidation, and storage.
Waybill
document provided by the carrier that contains information about the package, including the tracking number, shipping method, and addresses of the origin and destination.
Xray Charges
a cost assessed by the goods forwarder for checking any air cargo for forbidden items.
Yard
a section of a warehouse used for product switching or storage.
Zone Rate
a freight charge determined by the quantity of geographical locations a cargo must travel through on its way to its destination.