Logistics & Shipping Terms
Comprehensive dictionary of logistics, shipping, and supply chain terminology
FCL- Full Container Load
Definition:
A shipment that fills an entire container, typically 20ft or 40ft.
Usage:
Used when cargo volume is sufficient to fill a complete container.
Example:
FCL 40ft - Full 40-foot container shipment from Shanghai to Los Angeles.
LCL- Less than Container Load
Definition:
A shipment that does not fill an entire container and is consolidated with other cargo.
Usage:
Cost-effective for smaller shipments that don't require a full container.
Example:
LCL 5 CBM - 5 cubic meters of cargo consolidated with other shipments.
TEU- Twenty-foot Equivalent Unit
Definition:
A standard unit of measurement for container ship capacity based on a 20-foot container.
Usage:
Used to measure port throughput and vessel capacity.
Example:
Port capacity: 10 million TEU annually.
FEU- Forty-foot Equivalent Unit
Definition:
A measurement unit equivalent to a 40-foot container, equal to 2 TEU.
Usage:
Used for measuring larger container capacities.
Example:
Vessel capacity: 15,000 FEU or 30,000 TEU.
CBM- Cubic Meter
Definition:
A unit of volume measurement commonly used in shipping and logistics.
Usage:
Standard measurement for cargo volume in international shipping.
Example:
Cargo volume: 25 CBM requiring LCL consolidation.
CFT- Cubic Feet
Definition:
A unit of volume measurement, primarily used in the US market.
Usage:
Alternative volume measurement, 1 CBM = 35.31 CFT.
Example:
Warehouse space: 10,000 CFT available for storage.
DWT- Deadweight Tonnage
Definition:
The maximum weight a ship can safely carry, including cargo, fuel, and supplies.
Usage:
Indicates the cargo-carrying capacity of a vessel.
Example:
Bulk carrier: 75,000 DWT capacity for grain shipment.
GRT- Gross Register Tonnage
Definition:
A measure of the total internal volume of a ship.
Usage:
Used for port fees and regulatory purposes.
Example:
Container ship: 150,000 GRT requiring specialized port facilities.
ETA- Estimated Time of Arrival
Definition:
The expected time when a shipment or vessel will arrive at its destination.
Usage:
Critical for planning and coordination in supply chain management.
Example:
Vessel ETA: March 15, 2024, 14:00 local time.
ETD- Estimated Time of Departure
Definition:
The expected time when a shipment or vessel will depart from its origin.
Usage:
Used for scheduling and tracking shipment progress.
Example:
Flight ETD: 08:30 GMT from Frankfurt to Beijing.
CFS- Container Freight Station
Definition:
A facility where LCL cargo is consolidated into containers or deconsolidated.
Usage:
Essential for LCL shipments requiring consolidation services.
Example:
Cargo delivered to CFS for consolidation before ocean transport.
CY- Container Yard
Definition:
An area where full containers are stored, loaded, and unloaded.
Usage:
Used for FCL operations and container storage.
Example:
FCL pickup from CY terminal gate 5.
THC- Terminal Handling Charge
Definition:
A fee charged by terminals for handling containers at the port.
Usage:
Standard charge for container operations at terminals.
Example:
THC: $150 per 20ft container at Shanghai port.
BAF- Bunker Adjustment Factor
Definition:
A surcharge applied to freight rates to account for fuel price fluctuations.
Usage:
Adjusts shipping costs based on current fuel prices.
Example:
Current BAF: 15% surcharge on base freight rate.
CAF- Currency Adjustment Factor
Definition:
A surcharge to compensate for currency exchange rate fluctuations.
Usage:
Protects carriers from currency volatility in international trade.
Example:
CAF applied: 3% adjustment for USD/EUR exchange rate changes.
PSS- Peak Season Surcharge
Definition:
An additional charge during high-demand shipping periods.
Usage:
Applied during peak seasons like Chinese New Year or Christmas.
Example:
PSS: $500 per FEU during October-December peak season.
D&D- Demurrage and Detention
Definition:
Charges for exceeding free time allowances for container usage.
Usage:
Demurrage for port delays, detention for extended container use.
Example:
D&D charges: $75 per day after 7 free days.
SOC- Shipper Owned Container
Definition:
A container owned by the shipper rather than the shipping line.
Usage:
Provides more control and potentially lower costs for regular shippers.
Example:
SOC shipment: Using company-owned containers for regular routes.
COC- Carrier Owned Container
Definition:
A container owned by the shipping line or carrier.
Usage:
Standard arrangement where carrier provides containers.
Example:
COC booking: Using shipping line's containers for one-time shipment.
DC- Distribution Center
Definition:
A warehouse facility focused on order fulfillment and distribution.
Usage:
Central hub for receiving, storing, and shipping products.
Example:
Regional DC: Serving 5-state area with 2-day delivery.
WMS- Warehouse Management System
Definition:
Software system for managing warehouse operations and inventory.
Usage:
Optimizes storage, picking, and shipping processes.
Example:
WMS implementation: 30% improvement in picking efficiency.
TMS- Transportation Management System
Definition:
Software platform for planning, executing, and optimizing transportation.
Usage:
Manages carrier selection, route optimization, and freight audit.
Example:
TMS optimization: 15% reduction in transportation costs.
EDI- Electronic Data Interchange
Definition:
Electronic exchange of business documents between trading partners.
Usage:
Automates document exchange like purchase orders and invoices.
Example:
EDI integration: Automated ASN transmission to customers.
ASN- Advanced Shipping Notice
Definition:
Electronic notification sent to notify of pending deliveries.
Usage:
Allows receivers to prepare for incoming shipments.
Example:
ASN sent 24 hours before delivery with detailed contents.
POD- Proof of Delivery
Definition:
Documentation confirming successful delivery of goods.
Usage:
Required for payment processing and dispute resolution.
Example:
POD with signature required for high-value shipments.
LTL- Less Than Truckload
Definition:
Freight shipment that doesn't require a full truck trailer.
Usage:
Cost-effective for smaller shipments consolidated with others.
Example:
LTL shipment: 5 pallets from Chicago to Atlanta.
FTL- Full Truckload
Definition:
Freight shipment that fills an entire truck trailer.
Usage:
Direct transport for large shipments or time-sensitive cargo.
Example:
FTL dedicated: 26 pallets direct from factory to DC.
HAZMAT- Hazardous Materials
Definition:
Materials that pose risks to health, safety, or the environment during transport.
Usage:
Requires special handling, documentation, and certified carriers.
Example:
HAZMAT shipment: Chemical products requiring UN certification.
DG- Dangerous Goods
Definition:
International term for hazardous materials in transportation.
Usage:
Regulated by IATA for air and IMDG for sea transport.
Example:
DG declaration required for lithium battery shipments.
FIFO- First In, First Out
Definition:
Inventory rotation method where oldest stock is used first.
Usage:
Essential for perishable goods and expiration date management.
Example:
FIFO system: Ensuring food products maintain freshness.
Quick Reference Guide
Container Sizes
- • 20ft: 33 CBM capacity
- • 40ft: 67 CBM capacity
- • 40ft HC: 76 CBM capacity
- • 45ft: 86 CBM capacity
Weight Limits
- • 20ft: Max 28 tons
- • 40ft: Max 28 tons
- • Truck: Max 80,000 lbs (US)
- • Air: Varies by aircraft
Common Conversions
- • 1 CBM = 35.31 CFT
- • 1 kg = 2.205 lbs
- • 1 ton = 1,000 kg
- • 1 TEU = 20ft container
Industry Best Practices
Cost Optimization:
- • Choose FCL for shipments over 15 CBM
- • Plan shipments to avoid peak season surcharges
- • Consolidate LCL shipments when possible
- • Negotiate annual contracts for regular routes
Documentation:
- • Always verify container seal numbers
- • Keep detailed packing lists for customs
- • Obtain proper certificates for special cargo
- • Maintain digital copies of all documents