Glossary of logistics and transport terms
3PL (Third Party Logistics) means a company outsources services like warehousing, distribution, or transport to an external provider to improve supply chain efficiency.
4PL (Fourth Party Logistics) refers to a partner managing the entire supply chain, including planning, transport, and storage, on behalf of a company.
ADR refers to international rules for safely transporting dangerous goods by road, protecting people and the environment.
AS/RS (Automated Storage and Retrieval System) is a system for automatically storing and retrieving goods in warehouses.
ATA (Actual Time of Arrival) is the real time when a shipment or vehicle reaches its destination.
An ATA Carnet is a customs document that allows temporary import and export of goods without paying duties or taxes.
ATD (Actual Time of Departure) is the actual time when a shipment leaves its origin.
BAF (Bunker Adjustment Factor) is a fuel surcharge added to sea freight due to fuel price changes.
Bulk cargo refers to unpackaged goods transported in large quantities, like grain, coal, oil, or gravel.
CAF (Currency Adjustment Factor) is a surcharge applied in international transport to offset currency fluctuations.
CBM (Cubic Meter) measures the volume of cargo in logistics – the equivalent of a cube with 1-meter sides.
A Certificate of Origin confirms where goods were manufactured and is required for customs clearance.
CFR (Cost and Freight) is an Incoterm where the seller pays for transport to the destination port, while the buyer assumes risk once goods are loaded.
CIF (Cost, Insurance, and Freight) is an Incoterm where the seller covers transport and insurance to the port, while the buyer assumes risk once goods are loaded.
CIP (Carriage and Insurance Paid To) is an Incoterm where the seller pays transport and insurance to a named destination; risk transfers at the first carrier.
A CMR is a legally binding international consignment note used for road transport.
COC (Carrier-Owned Container) is a container owned by the carrier and rented to customers for shipping.
A consignor is the sender of goods responsible for dispatching the shipment.
Cross-docking is a logistics practice where incoming goods are immediately transferred to outgoing transport with minimal storage.
DAP (Delivered at Place) is when the seller delivers goods ready for unloading at a destination, and the buyer pays import costs.
DAT (Delivered at Terminal) is when the seller unloads goods at a terminal, and the buyer handles import duties.
DDP (Delivered Duty Paid) is when the seller delivers goods to the destination, covering all costs including duties and taxes.
ETA (Estimated Time of Arrival) is the expected arrival time of a shipment.
ETD (Estimated Time of Departure) is the expected departure time of a shipment.
EUR-1 certificates are needed to customs-clear goods within the EU, offering reduced or zero duties.
EXW (Ex Works) means the seller makes goods available, and the buyer pays for transport and risk.
FAS (Free Alongside Ship) is when the seller delivers goods alongside a vessel for loading.
FCA (Free Carrier) is when the seller delivers goods to the carrier or terminal, and the buyer assumes risk.
FOB (Free On Board) is when the seller is responsible until goods are loaded onto a vessel.
FSC (Fuel Surcharge) is an additional cost based on fuel prices.
FTL (Full Truck Load) is when a truck is fully loaded with goods for one consignee.
LTL freight is a shipping method used for smaller loads that share truck space with other shipments, making it a cost-effective option.
HAZMAT refers to hazardous materials that are dangerous, flammable, or explosive.
SOC (Shipper-Owned Container) is a container owned by the shipper for transporting goods.
SSC (Security Surcharge) is an extra charge based on safety risks during transport.
A stevedore is a company that loads and unloads vessels and containers in a port.
THC (Terminal Handling Charge) is the cost of handling goods at a port or terminal.
Ton-kilometers measure cargo movement: weight × distance transported.
W-M (Weight/Measurement) is used to determine freight charges based on weight or volume.