Logistics Glossary Page 1

Know your Logistics Industry better

List of Key Terminology

Goods Received Note (GRN): A document that authenticates that the relative party has taken over the responsibility of the goods with a signature or stamp upon delivering or receiving them to/from the company, supplier or customer, which offers warehousing, transportation and/or value-added services.


Handling: A general description that is used for all logistics facility operations such as moving products around, breaking up the packaging form and redoing it, changing and checking case sizes, labelling, and stretching.


Hardtop Container: A container that does not fit a standard container or that cannot be loaded through the door with a forklift or similar equipment.


House Airway Bill (HAWB): HAWB means House airway bill issued by a freight forwarder on receipt of goods from shipper agreeing to deliver goods at destination.


Hub: Regional centres where incoming cargo is unloaded and outgoing cargo is loaded, daily temporary storage for cargo is provided, and cargo is transferred between vehicles.


In-Bond: A customs program for inland ports that provides for cargo arriving at a seaport to be shipped under a customs bond to a more conveniently located inland port where the entry documents have been filed. Customs clears the shipment there and the cargo is trucked to its destination, which normally is close to the inland port.


Indirect Air Carrier (IAC): An organization or entity, within the United States, not in possession of an FAA air carrier operating certificate that initiates to engage indirectly in air transportation of property and uses for any part of such transportation of services to a passenger air carrier.


Inland Port: Sites located away from traditional borders where international trade is processed and value-added services are available.


Interline Shipping: The movement of a single shipment via two or more carriers.


IMCO Charge: Additional fee that the ship owner may request for transportation of dangerous goods.


IMO Document: A document used for transportation of flammable, explosive or chemical materials.


Import: Commerce that occurs when the goods are shipped from a country into the present country.


IATA: International Air Transport Association – an Association that establishes international rules and standards for participating air carriers.


ICD: An ICD also provides similar services to CFS, the only difference is that it is located in the hinterland (cargo generating and distributing areas) far away from the ports.


Intermodal Transportation: Delivering the transported goods to the eventual destination by using multiple transportation models (ro-ro, or road, maritime or rail transportation) without conducting any physical processes on the goods or opening the container/trailer.


International Transportation: Al types of direct or transit road, sea, railway and/or airway transportation from one country to the other.


K1: Authorization document that natural and legal persons are required to obtain from the Ministry of Transportation, Maritime and Communication to perform intercity goods road transportation with one or more self-owned vehicles.


Knocked Down (KD): Dismantling the load to be reassembled for the purpose of an economical loading.


L2 Document: A type of authorization document that international logistics operators must possess pursuant to the Law on Road Transportation. They remain valid for five years, provided the provisions of the Law have not been violated.


Laydays and Cancelling Clause (LayCan): The gap that is made up of the days on which ships can stay at the docks for loading or unloading.


Less than Container Load: Allocation of a transportation vehicle or case to more than one receiver.


Less Than Truckload (LTL): Freight from several shippers loaded onto an individual trailer. The shipment is based upon a separate rate than truckload rate. LTL is in contrast to TL, which is only one shipment from one shipper that is loaded on a tractor-trailer.


Loading Area: Areas such as pallets, platforms, etc on which to place the loads.


Loading: Safe loading of items onto a vehicle such as a train, truck, and so on for shipment.


Logistics Management: A supply chain process stage that involves effective and efficient planning, implementation and control of forward and backward flow, and warehousing of goods, services and relevant information between manufacturing and consumption points so as to meet customer needs.


Logistics: Physical flow that consists of transportation, warehousing, packaging and handling, and service flow that includes customs clearance, insurance, supervision, and stock and order management.


Low-bed Trailer: A semi-trailer that allows shipment of loads, which are non-standard according to the international and domestic road transportation directive such as heavy duty vehicles or special task loads, and which have a different length, height, width and tonnage from those of regular trucks and tractor trailers.


Master Air Waybill (MAWB): MAWB is Master airway bill issued by main carrier of goods on receipt of goods from a freight forwarder to deliver at destination as per agreed terms.


Mode of Payment:

  • Payment Under Letter of Credit – L/C: A conditional undertaking by the bank, it stipulates that upon buyer’s request, it will make payments to the specified seller upon submission of documents relevant to a product or service, of which the details are stated by the buyer.
  • Acceptance Credit: A payment method that undertakes the payment of the cost of goods at a certain maturity, and in which a policy is the instrument of this payment. In other words, it is a payment method in which the seller is paid an acceptance credit based on the maturity date stated in the policy. This credit is used when the importer or its bank accepts the policy, which is submitted with the document. In payments with acceptance credit, banks act as intermediaries for the parties and charge a fee for this service. If the policy drawn up by the seller is accepted only by the buyer, then a “trade acceptance” has occurred. When it is foreseeable that the bank will accept the policy, the bank either accepts it or signs a surety for importer’s acceptance, which is called “banker’s acceptance.” In this payment method, when the importer wishes to make a deferred purchase, the exporter secures itself with acceptance or signing of surety for the policy by the bank.
  • Countertrade – Barter: Direct and simultaneous exchange of two groups of goods, which are considered to be of same value, with a single contract without a financial payment or fund transfer. Barter contracts usually consist of one-time deals, not long-term or regular transactions with the same customer.
  • Consignation:A type of export that involves sending goods to foreign buyers, brokers, or exporter’s representatives abroad in order to complete the final sales in the future. The persons or organizations that take delivery of the goods sell them at market value, deduct commissions and similar expenses from the sales revenue, and send the exporter the remaining amount in foreign currency via the authorized bank.
  • Cash Against Goods: Payment method that involves payment of the cost of exported goods after the importer takes delivery of them.
  • Cash in Advance:Payment method in which the importer pays the cost of goods to the exporter before the actual export.
  • Cash Against Documents (CAD):Payment method stipulating delivery of documents to the importer upon payment of the export amount by the importer’s bank into the exporter’s bank. Afterwards, the importer has the right to clear the goods from customs with the payment documents it has received. This payment method is called cash against documents.


Non-vessel Operating Common Carrier (NVOCC): A carrier who issues bills of lading for carriage of goods on vessels that are not owned or operated by them.


Package: A case that is made of metal, plastic, carton, or similar material to facilitate marketing, shipping, warehousing and distribution by protecting the products against external factors and keeping them together.


Packing List: A document prepared by the shipper that lists the kinds and quantities of merchandise in a particular shipment. A copy is generally sent to the consignee to aid in checking the shipment when received.