A

Air Waybill (AWB)

A non-negotiable contract between the shipper and the airline for air cargo.

Airline Terminal Fee

Charge for handling cargo at an airline terminal.

Anti-dumping Duties (AD)

Tariffs imposed on imports sold below fair value.

ABC Classification Method

Classifying stock items by importance such as circulation and value.

Acceptance Credit

Deferred payment method using a time draft accepted by the buyer or bank.

Access Space

Passage to access racks in a warehouse.

Active Block

Stack of loads actively worked on.

Ad valorem: 

(Latin for “according to value”). A tax or duty based on the assessed value of an item (e.g., property, goods, or services), typically levied as a percentage of that value. This contrasts with a fixed tax per physical unit. Common examples include property tax, sales tax, and import duties on certain goods

Addressing: 

Assigning goods to a warehouse location and recording it in the system.

ADR

European rules for road transport of dangerous goods, classified in 9 classes.

Agent

Party providing services on behalf of a logistics company.

Agreement

Contract setting service conditions.

Aisle

Passageway in a warehouse.

Allocated Stock

Stock reserved for a specific order.

ATA
Temporary import document allowing duty free entry for tools, equipment, or exhibition goods.

AMS Filing (Automated Manifest System)
US customs filing required before cargo arrives at a US port.

Arrival Notice
Notification from the carrier that cargo has arrived and is ready for clearance or collection.

Approved Exporter Status
Authorised status allowing exporters to issue simplified origin declarations under trade agreements.

All Risks Insurance
Insurance provides the widest cover for loss or damage to cargo during transport.

ATA Carnet

International customs document for temporary duty-free import.

ATR Movement Certificate

Used under the Turkey–EU Customs Union for goods in free circulation.

AS/RS

Automated Storage and Retrieval System.

Available to Promise

Stock that can be promised to future orders.

Average Inventory

Average stock held in a period.

Anti-Slip Mats

Mats that prevent cargo from slipping.

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B

Back-to-Back Rack System

Common pallet rack where backs of racks face each other.

Barcode

Machine-readable code for product identification.

Bill of Lading

Contract of carriage and receipt for goods by sea or air.

Bonded Warehouse

Customs-controlled warehouse for dutiable goods.

Border Checkpoint

Location at a country’s border where goods and vehicles pass.

Box / Box Label / Box Trailer

Package, its label, and an enclosed semi-trailer.

Break Bulk Cargo
Cargo carried loose or in pieces rather than in standard containers.

Blind Shipment
Shipment where shipper or receiver details are hidden at request.

Bunkering
The process of supplying fuel to a vessel.

Booking Confirmation
Official confirmation that a carrier has accepted a booking and reserved space.

Bill of Entry
Customs document required for importing goods into South Africa.

Border Management Authority (BMA)
South African authority controlling and regulating the movement of goods at border points.

Buffer Stock

Extra stock kept to stabilise supply.

Bulk Cargo

Cargo loaded unpackaged (e.g. grain, coal).

BAF (Bunker Adjustment Factor)

Surcharge for marine fuel fluctuations.

Buyer

Party purchasing goods.

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C

Cabotage

Domestic transport rights reserved for national carriers.

Cantilever Rack

Rack with arms for long goods like pipes and timber.

Capacity

Maximum achievable output.

Cargo

Goods in transit.

CIP / CPT

Incoterms where seller pays carriage; CIP includes insurance.

Cash Against Documents (CAD)

Importer receives documents only after payment.

Cash Against Goods

Importer pays after taking goods.

Cash in Advance

Importer pays before goods ship.

CED

Common Health Entry Document used in EU border checks.

Certificate of Origin

Proves country of manufacture.

CMR Road Waybill

Road transport document under CMR Convention.

CEMT Permit

European international transport permit.

Combined Transportation

Using multiple modes in one shipment.

Commodity

A traded good.

Concealed Damage

Damage found after delivery despite packaging intact.

Consignation

Goods sent abroad to be sold later by an agent.

Consolidation

Combining smaller shipments into one larger load.

Container

Standard steel box for intermodal transport.

Contract Logistics

Outsourced logistics based on a service contract.

CFR / CIF

Sea freight Incoterms; CIF includes insurance.

Countertrade

Direct exchange of goods without money transfer.

Cross Docking

Sorting and shipping goods without storage.

CAF (Currency Adjustment Factor)

Freight surcharge to cover currency fluctuations.

CRM

Customer Relationship Management system.

Customs Clearance
Process of submitting documents and paying duties and VAT to release imported goods.

Container Yard (CY)
Designated terminal area where containers are stored before loading or after discharge.

Cut Off Time
Latest time cargo must be delivered to meet a vessel or flight departure.

Container Freight Station (CFS)
Warehouse where LCL cargo is packed or unpacked for consolidation.

Carrier Haulage
Inland transport arranged and managed by the shipping line.

Congestion Surcharge
Extra fee charged by carriers when a port is heavily congested.

Cargo Survey
Independent inspection of cargo to confirm condition and quantity.

Customs Declaration

Document stating goods and value for customs clearance.

Customs Union

Agreement removing duties and harmonising tariffs between countries.

Cycle Counting

Planned periodic stock checks.

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D

Damage

Loss in value from breakage, wetting, or similar incidents.

Dangerous Goods

Goods requiring special handling due to risks.

Declared Value

Value declared by sender for transport and customs.

DAP / DAT / DDP

Incoterms where seller delivers to named place/terminal/duty paid.

Delivery Note / Delivery Order

Documents proving delivery or authorising release.

Demand Forecasting

Projecting future demand using past data.

Demurrage

Charges for exceeding free time at port or container use.

Direct Shipment

Sending goods straight to customer without storage.

Distribution Centre

Facility for storage, packaging, and onward shipping.

Dock Leveller

Bridge equipment aligning dock and vehicle bed.

Duty
Tax charged by customs on imported goods based on tariff codes and values.

Dead Freight
Charge applied when booked cargo space is not fully used by the shipper.

Delivery SLA
Agreed time standard for delivering goods to a customer or location.

Draft Bill of Entry
Preliminary version of a customs declaration used for verification before final submission.

Deferment Account
Facility allowing approved importers to pay duties and VAT monthly instead of per shipment.

Dwell Time

Time goods sit idle without movement.

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E

Echelon Inventory

Stock held at a certain stage in the supply chain to meet customer needs.

Electric Pallet Jack

Battery-powered tool for moving pallets horizontally in warehouses.

Electric Stacker

Compact equipment used to lift pallets vertically; walk-behind operation.

E-commerce

Buying and selling goods and services online.

Electronic Product Code (EPC)

Unique identifier enabling global product tracking in the supply chain.

Emergency Stock

Stock kept for unexpected disruptions or surges in demand.

ETA (Estimated Time of Arrival)

The projected date and time cargo is expected to arrive.

Euro-pallet (EUR-pallet)

European standard pallet size of 80 × 120 cm, regulated by UIC 435-2V.

ECMT Permit

International transport permit issued under the European Conference of Ministers of Transport.

Ex Declaration

Export declaration required by customs.

Ex Works (EXW)

Incoterm where seller makes goods available at origin; buyer covers all costs and risks thereafter.

Export

Selling and shipping goods from one country to another.

Export Clearance
Customs process confirming that goods may legally leave the country.

Entry for Consumption
Customs declaration releasing goods for the local market.

Export Permit
Permission required to export controlled or restricted goods.

Export Refund
Rebate or refund available under certain export incentive schemes.

Extranet

Private network giving suppliers, customers, or authorities controlled access to a company’s system.

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F

Feeder Service

Movement of cargo between hub ports and regional ports using smaller vessels.

Fictive Warehouse

A bonded warehouse used only by its owner to store duty-paid goods.

Finished Goods Inventory

Stock of products completed and ready for sale.

FIFO (First In First Out)

Inventory method where the oldest stock is sold or used first.

Fixed Costs

Expenses that do not vary with production volume in the short term.

Fleet Management

Coordinated management of vehicles, drivers, and routes in a logistics business.

Flow Rack

Racking system where pallets or cartons move forward on rollers for picking (FIFO principle).

Force Majeure

Contract clause excusing parties from obligations due to events beyond control (e.g. war, disaster).

Forklift

Powered truck with forks for lifting, stacking, and moving loads.

Fourth Party Logistics (4PL)

Provider managing the entire supply chain by coordinating multiple 3PLs.

Free Time
Period of free storage or container use before demurrage or detention charges apply.

Freight Collect
Freight charges payable by the receiver.

Freight Prepaid
Freight charges paid by the shipper before the cargo moves.

Fuel Surcharge
Additional fee carriers charge to cover rising fuel costs.

Final Mile Delivery
The last stage of delivery where goods are delivered to the end customer.

FAS (Free Alongside Ship)

Incoterm where seller delivers goods alongside the vessel at port; buyer pays loading and transport.

FCA (Free Carrier)

Incoterm where seller delivers goods cleared for export to a carrier nominated by the buyer.

FOB (Free On Board)

Incoterm where seller loads goods on the buyer’s ship at the named port; buyer assumes risk thereafter.

Free Trade Zone

Designated area where goods can be stored, handled, or re-exported free of customs duties.

Freight

The charge payable for the carriage of goods.

FTL (Full Truck Load)

A shipment that fills an entire truck or trailer.

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G

Goods Received Note (GRN)

Document confirming goods were received in correct condition and quantity.

GPRS

Mobile data transmission system used for communication in logistics devices.

Gross Weight
Total weight of the cargo including packaging and pallets.

Gate In / Gate Out
Movements recorded when a container enters or leaves a terminal or depot.

General Rate Increase (GRI)
Periodic increase in freight rates applied by carriers.

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H

Handling

All warehouse activities: moving, packing, labelling, and reworking cargo.

Hardtop Container

Container with a removable roof, used for oversized or top-loaded cargo.

Hazardous Materials

Substances that may pose risks to health, safety, or the environment in storage and transport.

Heat Treatment

ISPM 15 process: heating wooden packaging to 56 °C for 30 minutes to eliminate pests. 

HS Tariff Book

Official customs book listing tariff codes, duties, and VAT rates.

High Cube Container
Container one foot taller than a standard container to allow more volume.

House Air Waybill (HAWB)

Air freight document issued by a freight forwarder to cover a shipment within a master AWB.

Hub

Regional centre where cargo is consolidated, sorted, and transferred.

HS Code

Harmonised System code used worldwide for classifying goods in customs.

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I

Idle Stock

Stock that has not moved or been used for a long time.

IMCO Charge

Extra charge shipping lines apply for carrying dangerous goods.

IMO Document

Mandatory declaration for shipping hazardous cargo by sea.

Import

Bringing goods into a country from abroad for sale or use.

Incoterms

Standard trade terms from the International Chamber of Commerce defining buyer/seller responsibilities.

Inspection

Checking cargo for compliance and quality, sometimes under third-party supervision.

Import Permit
Official approval required to import controlled goods into the country.

In Bond Movement
Movement of goods under customs control before duties and VAT are paid.

Invoice Verification
Customs review of invoice details to confirm accuracy and declared values.

ICD (Inland Container Depot)
Facility inland where containers are stored and handled under customs control.

Import VAT
Value Added Tax charged on imported goods during customs clearance.

Insurance

Policy covering risks of loss or damage to goods in transit.

Intermodal Transportation

Using multiple transport modes (road, rail, sea, air) without handling the cargo itself.

IATA

International Air Transport Association, governing airline practices worldwide.

Inventory

Record of goods and materials held by a business.

ISPM 15 Standard

International regulation requiring treatment of wooden packaging to prevent pest spread.

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J

Jettison

Deliberate disposal of cargo overboard to protect a ship in emergency.

Jet Fuel Surcharge

Additional fee airlines charge due to changes in fuel prices.

Joint Rate

Single agreed freight rate covering movement across two or more carriers or modes.

Just In Time (JIT)

System of delivering goods exactly when needed to reduce stockholding.

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K

K1 Document

Permit required in South Africa for companies doing intercity goods transport with their own vehicles.

Kanban

Signal-based system controlling material flow in lean manufacturing and logistics.

Kingpin

Large steel pin connecting a semi-trailer to the tractor unit.

Knocked Down (KD)

Cargo shipped disassembled for cost efficiency and reassembly later.

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L

Landed Cost
Total cost of a product including purchase price, freight, duties, VAT, and local charges.

Letter of Credit (LC)
Payment method where a bank guarantees payment once conditions are met.

Logistics Service Provider (LSP)
Company offering logistics services like transport, warehousing, or distribution.

L2 Document

Permit required by international logistics operators under South African road transport law.

LIFO (Last In First Out)

Stock method where the most recent goods received are used first.

LayCan (Laydays and Cancelling Clause)

Window of time a vessel must be ready for loading or discharge.

Lead Time

Time from placing an order until goods are delivered.

LCL (Less than Container Load)

Shipment that does not fill a full container; consolidated with other cargo.

Loading

Placing cargo safely onto a vehicle, vessel, or aircraft.

LDM (Loading Meter)

Unit of space measure in a truck; used for calculating freight for non-stackable cargo.

Logistics Management

Planning, execution, and control of the movement and storage of goods to meet customer needs.

Logistics

Coordinated movement of goods and information through a supply chain.

Low-bed Trailer

Semi-trailer with low deck height used for oversized or heavy cargo.

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M

Main Route

The primary route most often used between two points.

Manifest

Summary document listing cargo details on a vessel, aircraft, or truck.

Master Air Waybill (MAWB)

Air freight document issued by an airline covering a consolidated shipment.

Material Requisition

Request form for goods from a warehouse or procurement department.

Materials Management

Planning, sourcing, and control of all materials used in a business.

Maut

Highway toll in Germany for trucks over 12 tonnes.

Mezzanine Rack System

Racking with walkable platforms to expand vertical storage space.

Mixed Mode Transportation

Using two or more transport modes in a single shipment.

Mobile Rack

Racks that move on tracks to save aisle space in warehouses.

Mode of Payment

Agreed method of paying for goods, e.g. Letter of Credit, Cash in Advance, CAD.

Moving Rack 

Mechanised rack system that slides sideways to allow high-density storage.

Multimodal Bill of Lading
Transport document covering a shipment moved by more than one mode.

Marine Insurance
Insurance covering loss or damage to goods during sea or combined transport.

Minimum Order Quantity (MOQ)
Smallest quantity a supplier will accept for an order.

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N

NVOCC
Company issuing its own bills of lading without operating vessels.

Non Tariff Barriers
Trade restrictions other than duties such as permits or technical standards.

Net Weight
Weight of cargo excluding packaging.

Narrow Aisle Storage Equipment

Specialised forklifts or stackers used in narrow aisle warehouse systems.

Narrow Aisle Storage System

Warehouse racking with reduced aisle widths to maximise vertical space.

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O

Occupiable Spaces

Designated warehouse or yard areas available for operations like storage or loading.

Opening (Küşat)

Right of cargo owners to inspect goods, weigh, or take samples before declaration.

Optimisation

Improving operations by maximising resource use while minimising delays, costs, or waste.

Order Management

Process of receiving, tracking, and fulfilling customer orders.

Order Picker

Material handling equipment that raises an operator to pick goods from racking.

Order Picking 

Activity of selecting and preparing goods for shipment from warehouse stock. 

Overstay
Charge for storage when a container remains at a depot longer than allowed free time.

Overweight Surcharge
Fee applied when cargo exceeds weight limits set by carriers or authorities.

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P

Package

Container such as carton, box, or case that holds goods for storage or transport.

Packaging

Materials and processes used to protect goods during handling and shipping.

Packing List

Document detailing the contents of packages in a shipment.

Pallet Jack

Manual or electric tool used to lift and move pallets over short distances.

Palletising

Stacking goods onto pallets for easier handling and storage.

Partial Shipment

Transporting only part of an order or combining goods with others in one load.

Permit

Transit authorisation allowing trucks to cross between countries.

Phytosanitary Certificate

Document certifying plants or plant products meet health standards.

Pick-to-Light

Electronic picking system guiding warehouse staff with lights and displays.

Planning

Scheduling transport and warehouse resources to meet customer needs.

Policy

Formal insurance or service agreement stating conditions and obligations.

POD (Proof of Delivery)
Document signed by the receiver confirming delivery.

Pre-Carriage
Transport of cargo from the supplier to the port or terminal at origin.

Post-Carriage
Transport from the port or terminal at destination to the final customer.

Port Health
Authority that checks food, plant, and health related cargo at ports.

Port Congestion Surcharge
Fee added when port delays increase carrier costs.

Pro Forma Invoice

Preliminary invoice sent before final billing, outlining deal details.

Production

Conversion of raw materials into finished goods.

Purchasing

Process of sourcing and buying goods or services.

Put Away

Warehouse process of moving received goods into storage locations.

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Q

Quality Control

Process of ensuring products or services meet set quality standards.

Quarantine Stock

Goods isolated from saleable inventory due to quality or documentation issues.

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R

R2 Document

Permit required for international logistics operators under road transport law.

Rack

Metal or wooden structure for storing goods in warehouses.

Rack-Supported Warehouse

Warehouse structure built around heavy-duty racking systems.

Ratchet Straps

Adjustable straps used to secure cargo during transport.

Rail Consignment Note

Receipt confirming goods accepted for transport by rail.

Ramp

Raised area or slope connecting a loading dock and a truck bed.

Raw Material

Unprocessed materials used to manufacture finished goods.

Reach Truck

Forklift designed to work in narrow aisles, reaching high racking.

Receiving

Process of unloading and checking goods into a warehouse.

Refrigerated Transport

Vehicles equipped to carry temperature-sensitive goods.

Replenishment

Restocking pick locations from reserve inventory within a warehouse.

Return Management

Handling goods returned by customers, including inspection, recycling, or disposal.

RFID

Radio-frequency identification system for tracking goods with tags and scanners.

Road Transport

Moving goods using trucks or other vehicles on roads.

Route

The path goods or vehicles take between origin and destination.

Release Order
Document authorising the collection of a container after customs clearance.

Routing Order
Instruction from the buyer deciding which shipping line or routing to use.

Reefer Container
Refrigerated container used for temperature controlled cargo.

Routing

Planning the sequence and path of deliveries or shipments.

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S

Safety Stock

Extra stock kept to prevent shortages during unexpected demand or delays.

Salvage

Residual value assigned to damaged goods by an insurer or surveyor.

Seal Number
Unique identifier on a container seal for security and tracking.

Shipper’s Letter of Instruction (SLI)
Document giving the forwarder full instructions for shipping.

Short Shipment
Part of an order that did not ship as planned.

Supply Chain Visibility
The ability to see and track shipments and inventory through the supply chain.

Seal

Locking device placed on a container or vehicle after customs clearance to show it has not been opened illegally.

Seasonal Stock

Inventory built up before a high-demand season.

Shipment

Goods prepared and dispatched for delivery along with documentation.

Shipper

The party arranging goods to be transported.

Spot Vehicle

A truck or trailer hired for a one-time transport job.

Stacking

Placing cargo or materials on top of each other to use space efficiently.

Standard Pallet Rack

Classic racking system designed for Euro/ISO pallet sizes.

Stock Control

Monitoring and managing inventory to avoid shortages or surpluses.

Storage

The act of keeping products in a facility until needed.

Subcontractor

External party contracted to carry out part of a logistics operation.

Supply Chain

The entire network involved in producing and delivering goods to the end user.

Sustainable Warehouse

Facility designed to operate with reduced environmental impact.

Swap Body

Lightweight container-like unit with legs, transferable between vehicles.

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T

Temporary Importation

Bringing goods into a country for processing or display and then re-exporting them duty-free.

Terminal Handling Charges (THC)

Fees for handling containers at a port terminal.

Third Party Logistics (3PL)

Specialised provider handling parts of a company’s logistics, such as warehousing or transport.

TIR Carnet

Customs transit document allowing sealed vehicles to move across borders without repeated inspections.

Tonnage

Weight capacity of a ship or truck, measured in tonnes.

Transit Time
Time taken for goods to move from origin to destination.

Transshipment
Transfer of cargo from one vessel to another during the journey.

Tariff Code
Customs code used to classify goods for duty and VAT.

Triangular Shipment
Shipment involving three countries where buyer and seller are not the physical sender or receiver.

Trailer

Load-carrying vehicle towed by a tractor unit.

Transportation

The movement of goods or people from one place to another.

Tugboat

Small vessel used to guide or tow larger ships in port areas.

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U

Uniform Product Code (UPC)

Barcode system identifying manufacturer and product.

Unstuffing
Process of unpacking cargo from a container.

Unit Load Device (ULD)
Container or pallet used for loading cargo on aircraft.

Unit Train

Train dedicated to carrying one commodity or one customer’s goods.

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V

Value Added Operations

Additional services like labelling, packaging, or assembly done in warehouses.

Value Added

Extra worth created in production or logistics beyond the raw input cost.

VAT Number

Unique identifier for businesses registered for Value-Added Tax.

Verified Gross Mass (VGM)
Declared weight of the container and cargo required before loading.Volumetric Weight

Chargeable weight based on cargo dimensions rather than actual mass.

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W

Warehouse Management System (WMS)

Software controlling and tracking all warehouse activities.

Warehouse

Facility used to store goods securely until required.

Waybill
Transport document showing cargo details for road or air transport.

Wharfage
Port fee charged for using wharf or quay facilities.

Written Report

Official document (e.g. receiving or count report) signed by authorised staff.

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X

X-Ray Inspection
Security screening method using X-ray equipment for customs or airline checks.

Y

Yard Management

Control and monitoring of vehicles, equipment, and personnel inside a logistics yard.

Yield Management

Optimising revenue through strategic pricing and capacity allocation.

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