Stepping into the logistics industry is definitely an overwhelming task, for besides the fact that one could drown with the documents, planning and procedural work; having all the technical terms is another level of difficulty only one with years of experience could deal with. So let’s check this task off the list and introduce you to a couple of important freight forwarding and logistics glossaries you need to familiarize yourself with.
Glossaries
Arrival Notice
A document that is usually sent by the ocean freight carrier or forwarder to notify the other party with the shipment’s arrival date.
Air waybill/Consignment Note
A contract with barcodes to electronically track shipments and provide highlighted information for the shipper usually provided by the carrier.
Bill of Lading (BOL)
A legally binding document containing important details as per the quantity, type and destination of the goods that are being transported.
This document could also apply details of the shopper, transport and receiver and is initially done to claim that the goods were delivered to the transporter in good conditions.
Carrier
The party that is legally entitled to transport cargo and goods by water, land and air from one place to another.
Commercial Invoice
Legal document used for evidencing a sale transaction between a seller and buyer.
Consignee
The receiver of the goods
Consignor
The owner or sender of the goods
Cut-Off
The final due date that a container could be returned into the port to make a requested scheduled shipment.
Demurrage
The extra fee imposed by the carrier in case of delaying of operations when they are unloading or loading the items.
Export Declaration
A form that includes the number, type and value of cargo about to be shipped at the export port and is filled by the exporter.
Full Container Load (FCL)
Unlike LCL, FCL is when the cargo is transported in a full sealed container.
Less than container-load (LCL)
When the goods of a consignor are not enough to fill a complete container. It is essential since the container would then either be split by orders or shippers.
Gross weight
The total weight of the goods including the goods’ net weight and all other packaging.
Net weight
The pure weight of the product excluding the package and container’s weight.
Packing list
A list that indicates a detailed measurement, weight and naming of the items of each package usually attached to every package’s exterior.
Port of Discharge POD
The receiver port where goods are discharged from the vessel.
Port of Loading (POL)
The mother port where the goods have been first loaded to be transported.
Customs Invoice
A document that allows the export and import of cargo.
Shipping quote
A document that indicates the rates and surcharges for transportation.
BB (Break bulk)
The process of transporting goods in bulks separately instead of transporting them in one container is usually done to goods that cannot be found in one standard-size cargo bin or container.
Buyers consolidation
Best used for customers who transport from multiple suppliers or manufacturers as Buyers’ consolidation groups the shipment to a single invoice therefore reducing significant costs.
Carrier Certificate and Release Order (Carrier Certificate)
This document evidences the rights of the owner to make entry by certifying that heir goods have been transported by the transporter.
Cubic Meter (CBM)
The universal unit of measurement for shipments.
Certificate of Origin (C/O)
This document regards where the goods carried were manufactured, the country of export and their destination.
Claim
Usually happens when a shipment is damaged or lost whereby the consignee legally demands financial reimbursement for the issues from the carrier.
Free time
The duration whereby port items could be stored free of charge,
Manifest
Document with data of the transportation means, characteristics and routes of the goods being transported
Shipper letter of instruction
A document that indicates to the freight forwarder the exact movement of the products to make sure they would track all goods properly and precisely.
Bank guarantee (B/G)
A document issued by the bank bearing joint liability given to carriers by importers to pick goods in case of cargo arrival before what’s indicated on the shipping documents.
CIF (Cost, insurance and freight)
This agreement is used in waterway and sea carrying stating that the insurance, freight and insurance of goods are all the responsibility of the sellers.
Cross trade Consolidator
The intermediary between the consignee and consignor in international shipments
CY (Container Yard)
Is also known as the container location of dry port where goods are stored before a ship offloads or loads them.
Free on Board (FOB)
A shipping term that designates a sale as complete under the sellers record once the shipment leaves the respective warehouse.
General Order (GO)
A status issued when the goods imported miss specific documents or face an issue with the custom clearance.
Insurance certificate
This document basically covers the possible damage or loss to the cargo as they are transported.
Letter of credit (L/C)
A guarantee from the bank that the buyer’s payment will be provided to the seller on time and with an ethically correct amount.
Tare weight
Used to calculate the net weight of the cargo whereby it represents the known weight of an empty container and therefore is deducted from total weight to indicate the weight of the goods.
THC (Terminal Handling charge)
The charges for storing and positioning of cargo before they are transported.
On a final note..
If you're interested in learning more about how a freight forwarder can help your business with its international trade needs, we encourage you to request a quote. A reputable freight forwarder can provide you with a customized solution that meets your specific requirements and helps you navigate the complexities of global trade. Contact us today to find out how we can help streamline your international logistics and transportation needs.