Glossary of Supply Chain Terms by Portcast

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Zone Skipping

Zone Skipping is a logistics strategy that involves bypassing intermediate distribution centers and shipping goods directly to regional or local destinations, reducing transit.

Voyage Charter

A Voyage Charter is a contractual agreement between a shipowner and a charterer to transport goods on a specific voyage.

Waybill

A Waybill is a document issued by a carrier, detailing the goods being transported and serving as a receipt for the shipment.

Vessel Manifest

A Vessel Manifest is a document listing all cargo, passengers, and crew on board a vessel, submitted to customs authorities for clearance upon arrival at a port.

Verified Gross Mass (VGM)

Verified Gross Mass (VGM) is the total weight of a packed container, including the weight of the cargo, packaging, and the container itself, verified and declared before shipment.

Ultimate Beneficial Owner (UBO)

The Ultimate Beneficial Owner (UBO) is the individual or entity that ultimately benefits from or controls a company, often relevant in customs and trade compliance.

Vessel Schedule

A Vessel Schedule is a timetable detailing a ship's planned arrivals and departures at various ports along its route, providing stakeholders with essential planning information.

Vessel Tracking

Vessel Tracking involves real-time monitoring of a ship's location, course, and status, providing stakeholders with up-to-date information on maritime activities.

UCR (Unique Consignment Reference)

UCR (Unique Consignment Reference) is a unique identifier assigned to a consignment or shipment, aiding in tracking and management throughout the transportation process.

Transport Management System (TMS)

A Transport Management System (TMS) is a software platform that assists in planning, optimizing, and managing transportation operations, enhancing efficiency and visibility.

Vessel Number

A Vessel Number is a unique identifier assigned to a specific ship, facilitating tracking and communication within the maritime industry.

Voyage Number

A Voyage Number is a unique identifier assigned to a specific voyage of a ship, enabling accurate tracking and communication within the maritime industry.

Unit Load

A Unit Load is a standardized quantity of goods or materials grouped together for handling and transportation, often on pallets or in containers.

Transit Port

A Transit Port is an intermediate port where goods may be transshipped or undergo other logistics activities before reaching the final destination.

Towage

Towage is the act of towing or pulling a vessel using another powered vessel, often provided by tugboats to assist ships in maneuvering within ports or along waterways.

Surcharge

A Surcharge is an additional fee imposed by carriers to cover extra costs or specific circumstances, such as fuel surcharges or peak season surcharges.

Transshipment

Transshipment is the transfer of goods from one vessel to another at an intermediate port, enabling cargo to reach its final destination when direct routes are unavailable.

Tonnage

Tonnage refers to the weight or capacity of a vessel, often measured in metric tons or gross register tons, influencing freight rates and operational considerations.

Transit Cargo

Transit Cargo refers to goods in the process of being transported from the point of origin to the final destination, encompassing various modes of transportation.

Transloading

Transloading involves transferring goods from one transportation mode to another, often from ship to truck or vice versa, to facilitate efficient cargo movement.

Shipping Delays

Shipping Delays refer to unanticipated disruptions in the transportation process that result in the late arrival of goods at their destination.

Slot Charter

A Slot Charter is an agreement between a shipping line and another party to lease container slots on a vessel for transporting goods.

Reefer Vessel

A Reefer Vessel is a cargo ship equipped with specialized refrigeration systems for transporting temperature-sensitive goods.

Shipping Containers

Shipping Containers are standardized, durable, and stackable metal boxes used for transporting goods by sea, land, or air.

Reefer Monitoring System

A Reefer Monitoring System is a technology that monitors and controls the temperature and conditions inside reefer containers, ensuring the safe transport of perishable cargo.

Shipper

A Shipper is the party or individual responsible for arranging the transportation of goods, often the seller or exporter.

Shipping Order

A Shipping Order is a document issued by a shipper or carrier that provides instructions for transporting goods and serves as a contract between the parties involved.

Stevedore

A Stevedore is a person or company responsible for loading and unloading cargo from ships, ensuring efficient and safe handling of goods at ports.

Reefer Container

A Reefer Container is a refrigerated shipping container that transports temperature-sensitive goods, such as perishable foods or pharmaceuticals.

Seaway Bill

A Seaway Bill is a non-negotiable document issued by the carrier, serving as a receipt for the goods and enabling the consignee to claim the cargo without presenting a paper document.

Route Optimization

Route Optimization involves using algorithms and technology to determine the most efficient and cost-effective paths for transporting goods between locations.

Ro-Ro (Roll-on/Roll-off) Shipping

Ro-Ro (Roll-on/Roll-off) Shipping involves vessels designed to transport wheeled cargo, such as cars or trucks, that can be driven onto and off the ship.

T&T (Track & Trace)

T&T, or Track & Trace, is a system that allows the monitoring and tracing of the movement and location of goods during transportation.

Port-to-Port Transit Time

Port-to-Port Transit Time is the duration it takes for a vessel to travel between the loading port and the discharge port, influencing supply chain planning.

Port of Loading (POL)

The Port of Loading (POL) is the initial port where goods are loaded onto a vessel for transportation.

Port Performance

Port Performance measures the efficiency and effectiveness of a port in handling cargo, vessels, and overall logistics operations.

Port Community System (PCS)

Port Community System (PCS) is a digital platform that facilitates communication and collaboration among various stakeholders within a port, streamlining logistics processes.

Predictive Estimated Time of Arrival (P-ETA)

Predictive Estimated Time of Arrival (P-ETA) is a forecasted arrival time for a vessel, providing stakeholders with advanced notice for better logistics planning.

Real-Time Transportation Visibility Platforms (RTTVP)

Real-Time Transportation Visibility Platforms (RTTVP) are digital platforms that provide real-time tracking and visibility into the movement of goods across various transportation modes.

Port of Entry

A Port of Entry is an official entry point into a country, where customs and immigration procedures are conducted for arriving goods and passengers.

Port of Call

A Port of Call is a designated port where a ship stops to load or unload cargo, take on supplies, or allow passengers to embark or disembark.

Port of Discharge

The Port of Discharge is the destination port where goods are unloaded from a vessel, completing the sea leg of the shipping journey.

Predictive Estimated Time of Departure (P-ETD)

Predictive Estimated Time of Departure (P-ETD) is a forecasted departure time for a vessel, enabling stakeholders to anticipate and plan for upcoming shipping activities.

Quay

A Quay is a structure along a shoreline or waterway where ships can dock to load or unload cargo, providing a platform for vessel access.

Port Service Charge

A Port Service Charge is a fee levied by a port for various services, such as cargo handling, security, and maintenance.

NVOCC (Non-Vessel Operating Common Carrier)

NVOCC (Non-Vessel Operating Common Carrier) is a company that provides shipping services without owning its own vessels, consolidating and managing shipments on behalf of customers.

Pier

A Pier is a structure extending from the shoreline into the water, providing a docking point for ships and facilitating the loading and unloading of cargo.

Panama Canal Act

The Panama Canal Act outlines regulations and procedures governing the use and management of the Panama Canal, a vital waterway connecting the Atlantic and Pacific Oceans.

On-Carriage

On-Carriage refers to the inland transportation of cargo from a port to its final destination, typically by truck or rail, following the arrival of goods by sea.

Peak Season Surcharge (PSS)

Peak Season Surcharge (PSS) is an additional fee imposed by carriers during peak shipping seasons to compensate for increased demand and operational challenges.

Port Authority

A Port Authority is a governmental or quasi-governmental organization responsible for managing and overseeing the operations of a port.

OTIF (On-Time In-Full) Supply Chains

OTIF (On-Time In-Full) Supply Chains focus on delivering products on time and in the correct quantities, optimizing supply chain performance and customer satisfaction.

Incoterms

Incoterms are internationally recognized trade terms that define the responsibilities of buyers and sellers in terms of shipping, delivery, and risk transfer during international transactions.

Ocean Freight

Ocean Freight refers to transporting goods by sea, involving cargo ships carrying goods between ports.

Laytime

Laytime is the agreed-upon period for loading or unloading cargo at a port, with demurrage or detention charges applicable if exceeded.

Lead Time

Lead Time is the total time required for a product to be shipped and delivered to its destination, influencing inventory management and order fulfilment.

JIT (Just-In-Time)

JIT (Just-In-Time) is a logistics strategy that aims to minimize inventory levels by delivering goods exactly when needed, reducing storage costs and improving overall efficiency.

Logistics Visibility

Logistics Visibility involves real-time monitoring and transparency of various logistics processes, allowing stakeholders to track and manage the movement of goods.

Letter of Credit (L/C)

A Letter of Credit is a financial document issued by a bank, often used in international trade, that provides payment guarantees to the seller upon presentation of specified documents.

Multimodal Transport

Multimodal Transport involves using multiple transportation modes, such as sea, land, and air, to move goods from the point of origin to the final destination.

LCL / FCL

LCL (Less than Container Load) and FCL (Full Container Load) refer to shipment modes where cargo is consolidated with other shipments in a shared container or occupies an entire container, respectively.

Inland Drayage

Inland Drayage is the movement of cargo within a country, often from a port to a final destination or distribution center, using trucks or other overland transportation.

Maritime Insurance

Maritime Insurance provides coverage for risks associated with transporting goods by sea, protecting against losses such as damage, theft, or accidents during shipping.

Lane Performance

Lane Performance assesses the efficiency and reliability of specific shipping routes or lanes, providing insights into the performance of carriers and transportation providers.

Inland Clearance Depot (ICD)

Inland Clearance Depot (ICD) is a facility located inland, typically near a port, where customs clearance and other logistics activities occur.

Haulage

Haulage is the transport of goods over land, often referring to cargo movement between a port and its final destination.

Haulier

A Haulier is a company or individual involved in transporting goods over land, responsible for moving cargo between different locations.

IMO (International Maritime Organization)

IMO (International Maritime Organization) is a specialized agency of the United Nations responsible for regulating shipping on a global scale and addressing safety, security, and environmental concerns.

Free Carrier (FCA)

Free Carrier (FCA) is an Incoterm indicating that the seller is responsible for delivering the goods to a specified location, typically a carrier or another party nominated by the buyer.

Importer of Record (IOR)

The Importer of Record (IOR) is an entity legally responsible for ensuring that imported goods comply with customs regulations and for paying applicable duties or taxes.

In Transit

In Transit refers to the period when goods are being transported from the point of origin to the final destination, encompassing the entire shipping process.

Freight on Board (FOB Shipping)

Freight on Board (FOB Shipping) is an Incoterm indicating that the seller is responsible for delivering the goods to the vessel, covering costs and risks until the goods are on board.

Global Navigation Satellite System (GNSS)

Global Navigation Satellite System (GNSS) refers to satellite-based navigation systems such as GPS, GLONASS, and others, used in maritime shipping for accurate vessel positioning and navigation.

Free Alongside Ship (FAS)

Free Alongside Ship (FAS) is an Incoterm indicating that the seller is responsible for delivering the goods to a specified port, making them available for loading onto the vessel by the buyer.

In-Transit Visibility

In-Transit Visibility involves real-time monitoring and tracking of cargo throughout its journey, providing stakeholders with timely information on the location and status of shipments.

Enhanced Due Diligence (EDD)

Enhanced Due Diligence (EDD) refers to an in-depth examination of the involved parties in a transaction, often conducted to mitigate risks in international trade and shipping.

Freight Rate

Freight Rate is the price a carrier charges for transporting goods from one location to another, often calculated based on factors such as distance, weight, and type of cargo.

Feeder Vessel

A Feeder Vessel is a smaller ship that transports cargo between a regional or local port and a larger hub, facilitating efficient distribution within a maritime network.

Freight Transport

Freight Transport is the movement of goods from one location to another, typically involving various modes of transportation, such as ships, trucks, trains, or planes.

Freight Forwarder

A Freight Forwarder is a company or individual that organizes and coordinates the transportation of goods on behalf of shippers, handling various logistics tasks.

Ex Works (EXW)

Ex Works (EXW) is an Incoterm indicating that the seller's responsibility ends when the goods are made available for pick-up at their premises, with the buyer responsible for all subsequent costs and risks.

ETA / ETD

ETA (Estimated Time of Arrival) and ETD (Estimated Time of Departure) are key schedule indicators for ships, providing stakeholders with crucial information on vessel movements.

EXIM (Export-Import)

EXIM refers to international trade activities involving the export and import of goods and services between countries.

Empty Repositioning

Empty Repositioning involves the movement of empty containers to locations where there is a demand, optimizing container availability for future shipments.

ESG

ESG stands for Environmental, Social, and Governance, representing a framework for assessing the sustainability and ethical practices of companies, including those in the shipping industry.

FAK (Freight All Kinds)

Freight All Kinds (FAK) is a shipping term indicating a mixed cargo containing various types of goods, often grouped together for simplified logistics and cost management.

CY (Container Yard)

A Container Yard (CY) is a designated area within a port or terminal where containers are stored, sorted, and handled before being loaded onto or after being unloaded from ships.

Delivery Duty Unpaid (DDU)

Delivery Duty Unpaid (DDU) is an Incoterm indicating that the seller is responsible for delivering the goods to the buyer's destination, excluding import duties and taxes.

Delivery Order (D/O)

A Delivery Order is a document issued by a carrier or shipping agent authorizing cargo release to the consignee upon arrival at the destination.

DAP Shipping (Delivered At Place)

DAP Shipping (Delivered At Place) is an Incoterm indicating that the seller is responsible for delivering the goods to a specified destination, covering all costs and risks until the goods arrive.

Customs Duty

Customs Duty is a tax imposed by a government on imported or exported goods, collected at customs checkpoints to regulate trade and generate revenue.

EIR (Equipment Interchange Receipt)

Equipment Interchange Receipt (EIR) is a document confirming the interchange of shipping equipment, such as containers or chassis, between different parties.

Delivered at Place Unloaded (DPU)

Delivered at Place Unloaded (DPU) is an Incoterm indicating that the seller is responsible for delivering the goods to a specified destination and unloading them at the buyer's premises.

Dwell Time

Dwell Time is the duration that cargo spends at a specific location, such as a port or terminal, impacting overall supply chain efficiency.

Cut-off Time

Cut-off Time is the deadline for submitting cargo for a specific shipment, affecting the timing of loading and departure.

DDP (Delivered Duty Paid)

DDP (Delivered Duty Paid) is an Incoterm indicating that the seller is responsible for delivering the goods to the buyer's premises, including all costs and duties.

Consolidated Cargo

Consolidated Cargo involves combining multiple smaller shipments into a single container for transportation, optimizing efficiency and reducing costs.

Containerization

Containerization is a shipping method where goods are packed into standardized containers for efficient handling, transportation, and intermodal transfers between different modes of transport.

Chassis Pool

A Chassis Pool is a shared fleet of chassis available for multiple shippers, optimizing container transport efficiency by reducing equipment shortages and idle time.

Carrier Performance

Carrier Performance assesses the efficiency, reliability, and service quality of a transportation provider, influencing decisions in cargo shipment selection.