Logistics Glossary Of Terms

Welcome to our logistics glossary of terms! From Air Freight to zip codes, and everything in between, read on to find out more!

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Air Cargo Charter – An aircraft cargo charter refers to the dedicated use of an aircraft for the transportation of goods and freight. It involves chartering an entire aircraft solely for the purpose of moving cargo, allowing for efficient and customised logistics solutions.

Air Freight – Air Freight is a mode of transporting goods and cargo via an air carrier. Goods are packed and then flown all around the world on commercial or charter flights.

BIFA – BIFA stands for the British International Freight Association, and is an association for UK companies that move freight by air, road, rail and sea.

Bill of Lading – A bill of lading is a legal document, issued by a carrier and passed to the shipping company, that details the type, quantity, and destination of the goods being carried. It accompanies the goods and needs to be signed by an authorised representative of the logistics company, shipper, and owner of the goods in transit.

Cargo – Cargo is another word for goods that are shipped or transported all around the world.

CDS – CDS stands for the Customs Declaration Service. The CDS supports making import and export declarations when moving goods into, and out of, the UK.

Commercial Invoice – A commercial invoice is a document that contains the date and invoice number, the shipper’s and buyer’s details, name and description of the goods, quantity, price, delivery method and banking details.

Container – A container is the name given to the metal box or object that is used for transporting some goods. Goods are physically contained within the box, hence the name!

Courier – A courier typically transports small commercial goods and packages on behalf of a customer.

Customs – Customs is a government department that regulates the imports and exports for that specific country. The customs department also collects duties levied on imported goods.

Customs Clearance – Customs Clearance is the process of taking goods through a country’s customs authority, either to import or export the goods in a legal manner.

Exports – Exports are defined as the sending of goods or services to a country not of their origin.

Express Courier Service – Also known as an Express Delivery Service, an Express Courier Service is the fastest form of shipping goods and cargo.

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FIATA – FIATA stands for the International Federation of Freight Forwarders Associations, and it is a membership-based organisation that represents freight forwarders in over 150 countries.

FCL – FCL, or full container load, is where an entire container is taken up by a single consignment.

FTL – FTL, or full truck load, is where an entire truck is taken up by a single consignment.

Freight – Like cargo, freight is defined as goods that are shipped or transported all around the world.

Freight Forwarding – Freight forwarding is a service moving goods around the world on behalf of importers and exporters. Specialising in moving goods, freight forwarders also arrange customs clearance of goods, maintain all documentation, and oversee cargo packing.

Goods – Goods is another work for cargo that is shipped or transported all around the world.

Haulage – Haulage primarily refers to the transportation of goods or cargo from one place to another. This is usually done by railway or by road, on a large vehicle like a truck or a lorry.

HMRC – HMRC is the UK’s tax, payments and customs authority, responsible for collecting the money that pays for the UK’s public services, such as the NHS.

IATA – IATA stands for the International Air Transport Association, and it is a trade association that represents 300 airlines. Member shipments equate to over 80% of total air traffic.

Imports – Imports are defined as the bringing of goods or services into a country not of their origin.

Incoterms – First published in 1936, Incoterms comprise of 11 rules that sets out who is responsible for each element of a journey your goods take, such as the transport and customs clearance.

Insurance – Insurance is an arrangement between 2 (or more) parties the guarantees compensation is paid upon the loss or damage of specifically insured goods.

JIT – Just-In-Time delivery, commonly known as JIT, is a logistics strategy aimed at minimising storage costs and improving efficiency. For the model to work, goods are delivered exactly when they are needed, 

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Logistics – Logistics is the planning and controlling of the flow of goods and cargo moving from the point of origin to its final destination. Logistics encompasses various elements including inventory management, warehousing, order processing, packaging, transportation planning and distribution.

LCL – LCL, or less than container loads are where a container contains multiple shipments. The shipments are separated upon arrived at their destination.

LTL – LTL, or less than truck load, is where a truck contains multiple shipments. The shipments are separated upon arrival at one, or multiple destinations.

Manifest – A manifest is a document that contains the contents of a container for the purpose of shipping goods by land, road, sea or rail.

Marine insurance – Marine insurance specifically covers the loss of damage of goods and cargo being shipped by sea or ocean freight.

Ocean Freight – Ocean Freight is a method of transporting goods and cargo via cargo ships. Goods are packed into containers and then shipped all around the world.

Out Of Gauge – OOG, or out of gauge refers to goods that are larger than a typical shipping container. These type of shipments are often described as an abnormal loads.

P-T

Pallet – A pallet is typically a wooden base for packing goods on, ready for shipping. Pallets come in a variety of sizes, and can be made of plastic, or even cardboard.

Phytosanitary Products – Phytosanitary products include milk, flowers, seeds and any product with an animal origin, including vehicles and machinery that has been used for agricultural or forestry purposes.

POD – A POD, or a proof of delivery, is a document that acknowledges a delivery has been completed. This document is typically signed, either physically or digitally, and is kept by the retailer or manufacturer to prove the delivery was made.

Port – A port is the location where ships load and unload goods that have been transported by sea freight. Ports are typically located in towns and cities, with good road or rail networks, ready for the onward transport of the goods.

Postcode – A Postcode is a mix of letters and number used in the delivery process to establish a delivery area.

Rail Freight – Rail Freight is the process of transporting goods and cargo by train.

RHA – RHA stands for the Road Haulage Association, and it is a member-led association that supports businesses and people working in road transport.

Road Freight – Road Freight is the process of transporting goods and cargo by road using vehicles. This could be by transporting cargo in a Heavy Goods Vehicle (HGV), like a lorry, all the way down to a small van.

Reefer – A Reefer container is one of sixteen types of shipping containers used in freight forwarding. A reefer shipping container is an abbreviated term for a refrigerated container and they are equipped with refrigeration units that are connected to the power supply on board the ship being used to transport them.

Refrigerated Transport – Refrigerated Transport is a mode of transporting goods that need to remain chilled, frozen or remain at a controlled temperature during transit

Ro-Ro – Ro-Ro, or roro, are cargo ships designed to transport wheeled cargo, such as trailers.

Sea Freight – Sea Freight is a method of transporting goods and cargo via cargo ships. Goods are packed into containers and then shipped all around the world.

Shipping lanes – A shipping lane is a route the is regularly used by commercial ships in the transport of goods from one country to another.

Shipment – A shipment is defined as the moving of goods from one location to another. The term applies to all modes of transport.

T1 Shipping Form – A T1 shipping document is a transit document that allows goods from outside the European Union to move freely within the EU. It means that no taxes or customs duties are payable on the cargo as it moves between countries within the European Union.

T2 Shipping Form – Similar to a T1 form, a T2 shipping form is a transit document that allows community goods that have been manufactured in the EU or EFTA states to pass through duty unpaid (usually through an area outside the Customs Union).

T2L Shipping Form – A T2L shipping form is used to verify that goods being exported from a non-EU country have acquired Union status. Union status means that the goods comply with EU customs regulations and are eligible for free movement within the EU market.

T2FL shipping Form – A T2FL shipping form is a document used for goods transported by air or sea. The form accompanies the goods during transit from a non-EU country to an EU member state, providing evidence of the goods’ customs status.

Trailer – A trailer is another term for a vehicle that is used to transport goods and cargo.

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Vessel – A vessel is another word for a ship or a boat used for transporting goods and cargo.

Warehouse – A warehouse is a building where materials are stored. This could be raw materials or goods that have been manufactured ready for sale.

Wagon – A wagon is another term for a vehicle that is used to transport goods and cargo.

Zip Code – A numerical code used by the United States Postal Service to establish a delivery area.

Here at AGI, we’re experts in Road Freight, Sea Freight, Air Freight, and distribution and logistics so you know your delivery is in safe hands. Contact our expert team today to arrange your next shipment. And for all of the latest AGI news, don’t forget to follow us on LinkedIn and Facebook!

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