A Glossary of Logistics & Shipping Terms

Logistics is an essential part of any business that involves the management of the flow of goods, services, and information from the point of origin to the point of destination. It involves the planning, implementation, and control of the movement and storage of goods, services, and related information in a manner that satisfies customer requirements. Here are some key terms used in the logistics and shipping industry:

General:

• Supply Chain: The network of businesses, individuals, and organizations involved in the creation and delivery of a product or service to the end customer.
• Transportation: The movement of goods or people from one location to another.
• Warehousing: The storage of goods in a facility, often used as a distribution center for shipping and receiving.
• Inventory Management: The monitoring and administration of stock levels to ensure there is sufficient stock on hand to meet customer demand.
• Freight Forwarder: A company that arranges for the transportation of goods on behalf of another company.
• Carrier: A company that transports goods from one location to another, such as a trucking company, shipping line, or air carrier.
• Customs Broker: A licensed individual or company that assists with the import and export of goods by handling international Customs formalities.
• Incoterms: A set of standardized trade terms, used in international trade, that defines the responsibilities of buyers and sellers for the delivery of goods.
• Reverse Logistics: The process of managing the return of goods from the customer back to the manufacturer or distributor.
• Third-Party Logistics (3PL): A company that provides logistics services to other companies, including transportation, warehousing, and inventory management.
• Last-Mile Delivery: The movement of goods from a transportation hub to the final delivery destination, typically a residential address.
• Just-in-Time (JIT): An inventory management strategy that aims to have the right quantity of goods in the right place and at the right time, thereby reducing waste and improving efficiency.
• Cross-Docking: A logistics strategy where goods are transferred from one inbound vehicle to another outbound vehicle, with little, or no, storage in between.
• Project Cargo: The transportation of large, heavy-duty, high-value, or complex pieces of equipment.
• White Glove Services: A premium offering in the logistics industry, which provides a high level of care and attention to detail.

Trucking:

• Full Truckload (FTL): A shipment that requires the use of a full truck trailer.
• Less-than-Truckload (LTL): A shipment that does not require the use of a full truck trailer.
• Pallet: A portable platform used for the transportation of goods.
• Reefer: A refrigerated trailer used for the transportation of perishable goods and cold chain shipments.
• Road Train: A type of trucking in which several trailers are attached to a single truck.

Air Freight:

• Air Waybill (AWB): A document that serves as a contract between the shipper, the carrier, and the consignee for the transportation of goods by air.
• General Cargo: Goods that are not classified as hazardous or perishable, and can be transported by air.
• Charter Flight: A flight that is hired by a single party for the transportation of goods or passengers.
• IATA: The International Air Transport Association – a trade association that represents the global air transport industry.

Ocean Freight:

• Bill of Lading (B/L or BoL): A document that serves as a contract between the shipper, the carrier, and the consignee for the transportation of goods by sea.
• Container: A standardized metal box used for the transportation of goods by sea.
• Demurrage: The fee charged by the carrier for the use of the container beyond the agreed-upon period.
• Full Container Load (FCL): A shipment that requires the use of a full container.
• Less-than-Container Load (LCL): A shipment that does not require the use of a full container.
• Port of Entry: A designated port where goods enter a country for import.

Are you in need of logistics services? If so, you can get in contact with Aeronet Worldwide here. Aeronet provides the full complement of cargo transportation options by ground, air, or ocean. Aeronet also provides warehousing services.