Glossary

• 3PL (Third-Party Logistics)

A service that provides outsourced logistics solutions, including warehousing, transportation, and fulfillment, to streamline supply chain operations for clients.

• Air Freight

The transportation of goods by air, typically used for time-sensitive shipments where speed is prioritized over cost.

• Bill of Lading (BOL)

A legal document issued by a carrier to a shipper, detailing the type, quantity, and destination of goods being transported. It serves as a receipt and contract of carriage.

• Bonded Warehouse

A secure storage facility authorized by customs authorities, where imported goods can be stored without immediate payment of duties or taxes until they are moved for distribution or export.

• Cargo Insurance

Insurance coverage that protects shipments against potential losses or damages during transit, providing financial protection for shippers.

• Carrier

A company that transports goods, such as a trucking, shipping, airline, or rail company.

• Consignee

The person or organization to whom goods are shipped and delivered. The consignee is usually the buyer or recipient of the shipment.

• Customs Broker

A licensed expert who assists importers and exporters with customs clearance, ensuring compliance with regulations and managing required documentation.

• Customs Duty

A tax imposed on imports (and sometimes exports) by a country’s customs authority. Duties are calculated based on the goods’ value, origin, and classification.

• DDP (Delivered Duty Paid)

An Incoterm indicating that the seller is responsible for delivering goods to the buyer’s location, including all transportation costs and customs duties.

• Distribution Center (DC)

A facility used for receiving, storing, and shipping goods to end destinations, often designed to quickly process and fulfill orders.

• Duty Drawback

A refund of customs duties paid on imported goods that are subsequently exported or used in the production of exported goods.

• EXW (Ex Works)

An Incoterm where the seller makes goods available at their premises, and the buyer is responsible for all transportation, insurance, and customs costs from that point onward.

• FCL (Full Container Load)

A shipment where a single customer’s goods fill an entire shipping container, providing exclusive use and often more direct transit.

• Freight Forwarder

A logistics expert who arranges the transportation of goods on behalf of a shipper, coordinating multiple carriers and managing the paperwork involved in cross-border shipping.

• HS Code (Harmonized System Code)

A standardized numerical code used internationally to classify traded goods, aiding in customs clearance and determining applicable tariffs.

• Incoterms (International Commercial Terms)

A set of standardized terms published by the International Chamber of Commerce that define the responsibilities of buyers and sellers in international transactions, including shipping, insurance, and duties.

• Intermodal Transportation

The use of multiple modes of transportation (e.g., truck, rail, sea) in a single shipment, typically in a seamless transfer using standardized containers.

• Inventory Management

The process of overseeing and controlling stock levels to balance supply with demand, optimize costs, and ensure product availability.

• LCL (Less-than-Container Load)

A shipment that shares container space with other goods, making it a cost-effective option for smaller shipments that don’t require a full container.

• LTL (Less-than-Truckload)

A trucking option where multiple shipments from different customers share space on a single truck, reducing costs for smaller loads.

• Pick and Pack

A service where items are picked from inventory and packed for shipment, typically used for e-commerce and order fulfillment.

• Port of Entry

The location where goods enter a country and are subject to customs clearance, such as a seaport, airport, or border crossing.

• Supply Chain

The entire network involved in producing and delivering goods, from raw materials through manufacturing, logistics, distribution, and final delivery.

• Tariff

A tax imposed on imported or exported goods, often used as a tool of trade policy to protect domestic industries or regulate foreign trade.

• Tariff Engineering

Modifying a product’s characteristics to fit a different tariff classification, often to reduce import duties. Requires adherence to legal standards.

• Transloading

The process of transferring goods from one mode of transport to another (e.g., from ocean container to truck), often used to optimize distribution.

• Warehouse Management System (WMS)

Software that manages warehouse operations, including inventory tracking, order fulfillment, and shipping, to increase efficiency and accuracy.