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Glossary
Supply Chain and Logistics Glossary
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A
A.I.R
"Air Inspection Report"(A.I.R) refers to a document or report that outlines the findings and results of an inspection conducted on air transportation or aviation-related activities. This report may cover various aspects …
B
BAF
"BAF" stands for "Bunker Adjustment Factor." It is a surcharge applied to sea freight charges to account for fluctuations in fuel costs. BAF is a cost adjustment factor that reflects changes in the price of bunker fuel u…
Bonded warehouse
A bonded warehouse is a government-approved storage facility where goods can be temporarily held without the immediate payment of customs duties or taxes. This allows businesses engaged in international trade to store im…
Broken stowage
"Broken stowage" refers to the unutilized or wasted space in a shipping container or cargo hold due to irregular shapes, gaps, or empty spaces between packages or cargo items. It is a term commonly used in logistics and …
BSC
"Bulk Shipping Container" (BSC) refers to a type of container specifically designed for the transport of bulk cargo. These containers are constructed to facilitate the efficient and safe shipment of loose, unpackaged goo…
Bumped Cargo
"Bumped Cargo" refers to goods or merchandise that have been removed or excluded from their originally scheduled transportation due to factors like limited space, scheduling changes, or other operational reasons. This ca…
C
Chargeable Weight
"Chargeable weight" refers to the weight used by carriers to calculate shipping charges for airfreight or courier services. It is determined by taking the greater of the actual weight of the shipment and the volumetric w…
CO
"Certificate of Origin" (CO) is a document that certifies the origin of goods, indicating the country or region where the goods were produced. Typically provided by the manufacturer or exporter, the Certificate of Origin…
D
Dangerous Goods Certificate
This document serves as proof that the shipped goods are classified as dangerous or hazardous materials, providing detailed information about these substances. The Dangerous Goods Certificate is usually issued by the car…
Demurrage
Demurrage refers to the charges imposed for the excessive use of container or equipment beyond the agreed-upon or standard free time allowed for their use during the import or export process. It is a fee levied by the sh…
Detention
"Detention" refers to the additional time that containers or equipment are held beyond the agreed-upon or standard free time allowed for their use. It involves a charge imposed by the shipping line or equipment provider …
Duty Drawback
"Duty Drawback" refers to a customs and trade practice where a government refunds or exempts the customs duties or taxes that were originally collected on imported goods when those goods are subsequently exported or used…
E
ETA & ETD & ATD & ATA
"ETA" (Estimated Time of Arrival) refers to the anticipated time when a shipment or vessel is expected to reach its destination. It provides an estimate based on various factors such as distance, speed, and prevailing co…
EU VAT Deferral
"EU VAT Deferral" refers to a policy or practice within the European Union where businesses are allowed to temporarily defer the payment of Value Added Tax (VAT) when importing goods. This policy is designed to provide b…
F
FBA
Fulfillment by Amazon (FBA) is a service offered by Amazon to third-party sellers, enabling them to store their products in Amazon's warehouses. When a customer places an order, Amazon takes care of the entire fulfillmen…
FCL
FCL stands for "Full Container Load." It is a term used in international shipping and logistics to indicate that a shipment or cargo occupies an entire shipping container. In FCL shipping, the entire container is reserve…
Free drop
The term 'free drop' refers to a service that allows unloading or dropping off goods at their destination without incurring extra fees. This service often involves the direct unloading of goods from the transport vehicle…
I
Incoterms
Incoterms (International Commercial Terms) are a set of international trade terms established by the International Chamber of Commerce (ICC). These terms are designed to standardize the responsibilities and obligations o…
L
LCL
LCL stands for "Less than Container Load." It is a shipping and logistics term that refers to a shipment that does not fill an entire shipping container. In LCL shipping, multiple shipments from different shippers are co…
M
MAWB & HAWB
Master Air Waybill (MAWB): The Master Air Waybill is a transportation document issued by the main air carrier or their agent. It covers the entire shipment of goods and serves as a contract for carriage between the shipp…
MBL & HBL
Master Bill of Lading (MBL): The Master Bill of Lading is a shipping document issued by the main carrier or their agent. It covers the entire cargo loaded on board the vessel and serves as a receipt for the goods as well…
MIR
"Marine Inspection Report"(MIR) refers to a document or report that details the findings and results of an inspection conducted on a marine vessel. This inspection may cover various aspects of the ship's condition, safet…
MSDS
MSDS stands for "Material Safety Data Sheet." It is a document that provides detailed information about the properties of a chemical product, as well as guidelines on its safe use, handling, storage, and emergency proced…
Multimodal Transport
Multimodal Transport refers to the transportation of goods using multiple modes or methods of transportation under a single, integrated contract. It involves the coordinated movement of cargo across different modes such …
P
PI965 & PI966 & PI967
PI965, PI966, and PI967 are packaging instructions that provide guidelines for the safe transport of lithium ion batteries and lithium metal batteries. They cover packaging materials, labeling, and documentation requirem…
POL & POD
"POD" has two common meanings in logistics. First, it stands for "Proof of Delivery," a document or system confirming the successful delivery of a shipment, typically containing recipient details and, sometimes, a signat…
Port Congestion
Port Congestion refers to the situation in which a port experiences excessive traffic, leading to delays, inefficiencies, and disruptions in the normal flow of vessels, cargo, and related activities. This congestion can …
Port Skipping
Port Skipping refers to the practice of bypassing a planned port in a transportation route and proceeding directly to the next port of destination. This may occur due to various reasons, such as changes in shipping sched…
S
SO
"Shipping order" (SO) refers to a document or instruction that authorizes the shipment of goods. It typically includes essential details such as the type and quantity of goods, shipping instructions, the destination, and…
T
Telex Release & Original Bill of Lading
Telex Release:Telex release is a term used to describe the electronic release of a shipment without the need for a physical, paper-based bill of lading. It is commonly used in international trade to expedite the release …
U
UN3480 & UN3481
UN3480 is the United Nations number assigned to lithium ion batteries. This classification is used to identify and regulate the transportation of lithium ion batteries as hazardous materials due to their potential risks,…
UN38.3 Report
UN38.3 Report refers to the United Nations standard for the testing and certification of lithium batteries and lithium battery products during transportation. UN38.3 is a set of testing procedures adopted by the United N…
UNDG
International transport of dangerous goods is classified according to the United Nations' system, which is known as the UN Dangerous Goods Classification(UNDG). The classification is based on the type of hazard presented…
V
Volumetric weight
Volumetric weight, also known as dimensional weight, is a measure used in logistics to calculate the freight charges for a package based on its volume rather than its actual weight. It is determined by multiplying the pa…