Accessorial charges are additional fees for extra services beyond standard transportation. These may include fees for special handling, expedited delivery, or other services not included in the basic transportation agreement.
glossary
A
B
Backhaul
Backhaul refers to the return trip of a vehicle carrying cargo. Optimizing backhaul routes helps reduce empty miles and transportation costs, making the most efficient use of resources.
Bill of Lading (BOL)
A Bill of Lading is a crucial document in the cargo transportation process. It serves as a receipt for the goods being shipped, a document of title, and a contract between the shipper and the carrier. It includes details such as the type, quantity, and destination of the goods, and it plays a key role in international trade transactions.
Blockchain in Logistics
Blockchain technology is increasingly used in logistics for transparent and secure record-keeping, helping to enhance traceability, reduce fraud, and streamline processes.
C
Carrier
The carrier is the entity responsible for transporting goods from one point to another. This can include shipping companies, trucking companies, airlines, or other logistics providers. The carrier ensures that the goods reach their destination safely and in accordance with the terms of the transportation agreement.
Containerization
Containerization is a logistics strategy that involves packing goods in standardized containers for efficient transportation and handling. This method allows for easy transfer between different modes of transport, such as ships, trucks, and trains, streamlining the entire shipping process.
Cross-Docking
Cross-docking is a logistics strategy where goods are transferred directly from inbound trucks to outbound trucks with minimal or no storage time, reducing the need for warehousing.
Crowdsourced Delivery
Crowdsourced delivery utilizes a network of independent individuals or businesses to fulfill delivery services, often facilitated through a mobile app or online platform.
Customs Clearance
Customs clearance is the process of getting goods through customs to enter or leave a country. It involves documentation, inspection, and compliance with customs regulations to ensure the legal and smooth passage of goods across borders.
D
Dark Store
A dark store is a retail location or warehouse that is closed to the public and used exclusively for online order fulfillment, allowing for efficient e-commerce operations.
Delivery Point
The delivery point is the final destination where the cargo is intended to be delivered. It is a crucial aspect of the shipping process and is often specified in the shipping agreement or Bill of Lading.
Demurrage
Demurrage is a charge imposed for exceeding the agreed-upon time for loading or unloading cargo. It incentivizes prompt cargo handling to prevent delays and keep transportation operations on schedule.
Drayage
Drayage involves the short-distance transportation of goods, often referring to the movement of containers between ports, terminals, and nearby locations.
Drones for Delivery
Drones for delivery involve the use of unmanned aerial vehicles (drones) to transport goods from one location to another, especially in situations where traditional transportation may be challenging.
Dropshipping
Dropshipping is a retail fulfillment method where a store doesn't keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third party and has it shipped directly to the customer.
E
E-commerce Fulfillment
E-commerce fulfillment involves the process of receiving, processing, packing, and shipping online orders to customers, typically managed by e-commerce companies or third-party logistics providers.
ETA (Estimated Time of Arrival)
ETA refers to the anticipated time at which the cargo is expected to arrive at its destination. It provides shippers, consignees, and other stakeholders with valuable information for planning and coordinating various aspects of the logistics chain.
Expedited Shipping
Expedited shipping is a service that provides faster-than-normal delivery for time-sensitive cargo. This premium service is often chosen when rapid delivery is critical to meet customer expectations or project timelines.
F
Fleet Management
Fleet management involves the supervision of a company's vehicles for efficient and cost-effective transportation. This includes activities such as vehicle maintenance, fuel management, route optimization, and driver scheduling to ensure the smooth operation of the transportation fleet.
Freight
Freight encompasses all goods being transported, regardless of the mode of transportation. It can include raw materials, finished products, or any other items moved from one location to another.
Freight Audit and Payment
Freight audit and payment services involve the verification, validation, and processing of freight invoices to ensure accuracy and compliance with agreed-upon terms.
Freight Broker
A freight broker is an individual or company that acts as an intermediary between shippers and carriers, facilitating the arrangement of transportation services.
Freight Corridor
A freight corridor is a designated route or transportation pathway optimized for the efficient movement of goods, often involving infrastructure and logistical planning.
Freight Forwarder
A freight forwarder is a company or individual that organizes shipments for businesses or individuals, serving as an intermediary between the shipper and various transportation services.
G
Gate-In / Gateway
The gate-in or gateway is the designated entrance point to a transportation facility, such as a port or warehouse. It is where vehicles enter to deliver or pick up cargo, and proper gate management is essential for efficient logistics operations.
Goods in Transit
Goods in transit refer to cargo that is currently being transported but has not yet reached its final destination. This phase is critical, and the status of goods in transit is monitored closely for tracking and management purposes.
H
Haulier
A haulier is a company or individual engaged in transporting goods by road. Also known as a carrier or trucking company, hauliers play a crucial role in overland freight transportation, ensuring the timely and safe delivery of goods.
Hazardous Materials
Hazardous materials, also known as HAZMAT, are substances that, due to their nature, pose a risk to health, safety, or the environment during transportation. Proper handling, documentation, and labeling are essential when transporting hazardous materials.
I
Incoterms (International Commercial Terms)
Incoterms are standardized international trade terms that define the responsibilities and obligations of buyers and sellers in the transportation of goods. They specify who is responsible for costs, risks, and tasks at each stage of the shipping process.
Insurance
Insurance in the context of cargo transportation refers to coverage that protects against loss or damage to goods during transit. Shippers often purchase cargo insurance to mitigate financial risks associated with transportation.
J
Joint Venture
A joint venture is a business arrangement where two or more parties collaborate to undertake a specific project or achieve a particular objective. In the context of cargo transportation, joint ventures may involve partnerships between shipping companies, logistics providers, or other entities to enhance operational capabilities.
Just-In-Time (JIT) Inventory Management
Just-In-Time is an inventory strategy aimed at minimizing storage costs by receiving goods only when needed for production or distribution. JIT principles are often applied in cargo transportation to optimize supply chain efficiency.
K
Knot
A knot is a unit of speed used in maritime transportation, representing one nautical mile per hour. It is commonly used to measure the speed of vessels at sea.
KPI (Key Performance Indicator)
Key Performance Indicators are metrics used to measure the performance and efficiency of cargo transportation. They provide valuable insights into various aspects of the logistics process, such as delivery times, cost-effectiveness, and overall operational performance.
L
Lading
Lading refers to the loading of cargo onto a vehicle or vessel. It involves carefully placing and securing goods to ensure they are transported safely and efficiently.
Last Mile Delivery
Last mile delivery refers to the final leg of the delivery process, where goods are transported from a distribution center or transportation hub to the end consumer's location.
LTL (Less Than Truckload)
LTL refers to the shipping of goods that do not require a full truckload. Instead, multiple shipments from different shippers are consolidated into a single truck for cost efficiency. This is common when shipping smaller quantities of goods.
M
Manifest
A manifest is a detailed list of cargo items included in a shipment. It provides essential information about the contents of the shipment, aiding in inventory management, customs clearance, and overall logistics coordination.
Milestone
A milestone is a significant point in the transportation process. It could be a specific event, such as the departure of a vessel, the completion of loading, or the arrival of goods at a key location.
N
Negotiable Instrument
In the context of cargo transportation, a negotiable instrument is a document, such as a bill of lading or promissory note, that guarantees the payment or delivery of goods. These instruments can be transferred to others, making them a key aspect of trade and commerce.
Non-Disclosure Agreement (NDA)
In the business of cargo transportation, a Non-Disclosure Agreement (NDA) is a legal contract between parties that outlines the confidential information shared during their collaboration. This is particularly relevant when discussing sensitive details about shipping routes, schedules, or proprietary logistics processes.
O
Ocean Freight
Ocean freight refers to the transportation of cargo by sea. It is a cost-effective and commonly used mode of transportation for large quantities of goods over long distances.
Order Picking
Order picking is the process of selecting and gathering items from inventory to fulfill customer orders, a critical aspect of warehouse and distribution center operations.
Overland Freight
Overland freight refers to the transportation of cargo by road. It is a common mode of transport for short to medium-distance shipments and plays a vital role in regional and local distribution.
P
Packing List
A packing list is a document that specifies the contents of a shipment. It provides detailed information about each item, facilitating accurate tracking, customs clearance, and efficient unpacking at the destination.
Palletization
Palletization involves arranging goods on pallets for ease of handling and transportation. This method improves efficiency during loading, unloading, and storage, as palletized goods can be easily moved using forklifts or pallet jacks.
Parcel Locker
A parcel locker is a secure and automated storage unit that allows for the temporary storage of packages, enabling convenient self-service pick-up for recipients
Piggybacking
Piggybacking refers to the practice of transporting goods on the same vehicle that is already transporting other goods, often to optimize space and reduce costs.
Q
Quarantine
Quarantine in cargo transportation involves the temporary isolation of goods to prevent the spread of pests, diseases, or contaminants. Quarantine measures are essential for maintaining biosecurity and complying with international trade regulations.
Quotation
A quotation is the stated price for transporting a specific quantity of goods. It is an essential component of the negotiation process between shippers and carriers, providing clarity on the cost of transportation services.
R
Reefer Container
A reefer container is a refrigerated container used for transporting temperature-sensitive cargo, such as perishable goods. It ensures that the transported items remain at the required temperature throughout the journey.
Reverse Logistics
Reverse logistics involves the process of moving goods from their final destination back to the manufacturer or another destination for purposes such as returns, repairs, or recycling.
Routing
Routing involves determining the optimal path for transporting goods from the origin to the destination. Efficient routing helps minimize transportation costs, reduce delivery times, and optimize overall logistics operations.
S
Seal
A seal is a device used to secure cargo containers and indicate if they have been tampered with during transportation. Seals help maintain the integrity and security of the cargo.
Shipment
A shipment refers to the entire load of goods being transported as a single unit. It can include multiple packages, containers, or pallets destined for the same recipient or location.
Smart Packaging
Smart packaging incorporates technology, such as sensors or RFID tags, to provide real-time information about the condition, location, or status of the packaged goods.
T
Tare Weight
Tare weight is the weight of a container without its cargo. It is subtracted from the gross weight to determine the net weight of the transported goods.
Track and Trace
Track and trace is a system that enables the real-time monitoring and tracking of shipments, providing visibility into the location and status of goods during transit.
Transshipment
Transshipment is the transfer of goods from one vessel to another during transportation. This may occur at intermediate ports or hubs and is done to facilitate the movement of cargo to its final destination.
U
ULD (Unit Load Device)
ULDs are containers or pallets used to load cargo onto aircraft. These standardized units simplify the loading and unloading processes for air transportation.
Unloading
Unloading is the process of removing cargo from a vehicle or vessel upon arrival at the destination. Proper unloading procedures are essential to ensure the safe and efficient transfer of goods.
V
Vanning
Vanning is the process of loading cargo into a container. It involves strategically placing and securing items to optimize space and ensure safe transportation.
Volume Weight (Volumetric Weight)
Volume weight, also known as dimensional weight, is the calculated weight of cargo based on its volume rather than its actual physical weight. This is particularly relevant for lightweight, bulky items that may occupy significant space.
W
Warehouse
A warehouse is a facility for storing goods before or after transportation. Warehousing plays a crucial role in the logistics chain, providing a secure and organized space for inventory management.
Waybill
A waybill is a document accompanying goods in transit, detailing the shipment and its destination. It serves as a receipt and provides essential information for carriers, shippers, and consignees throughout the transportation process.
White Glove Service
White glove service refers to a premium level of service where extra care and attention are given to the handling and delivery of goods, often including services like inside delivery and assembly.
X
X-Dock
An X-dock is a designated area for unloading cargo at a transportation facility. It is strategically positioned to facilitate the efficient movement of goods from vehicles to warehouse storage or distribution points.
Y
Yard Management
Yard management involves the organization and management of cargo within a transportation yard. This includes the movement, staging, and tracking of trailers, containers, and other assets within the transportation facility.
Z
Zone Pricing
Zone pricing is a strategy where transportation costs are determined based on geographic zones. This approach considers the distance and logistics challenges associated with different regions, providing a more tailored pricing structure for cargo transportation services.
Zone Skipping
Zone skipping is a logistics strategy that involves bypassing intermediate distribution points to optimize transportation routes. This can lead to cost savings and expedited delivery times, especially in e-commerce and distribution scenarios.
