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3PL (Third-Party Logistics)

A 3PL, or third-party logistics provider, is an outside company that handles some or all of a business's logistics operations, typically warehousing, transportation, order fulfillment, and freight management, so the business doesn't have to build and run that infrastructure itself.

3PL vs 4PL

A 3PL executes specific logistics functions like warehousing, transportation, or fulfillment directly, while a 4PL manages and coordinates a company's entire logistics operation, often overseeing multiple 3PLs and carriers, without necessarily owning any warehouses or trucks itself.

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a

AIS Ship Tracking

AIS Ship Tracking involves monitoring and recording the movements of ships using the Automatic Identification System, providing real-time information on a vessel's location, course, and speed for navigation, safety, and logistical purposes.

Agile Supply Chains

Agile Supply Chains are flexible and responsive supply chain systems that quickly adapt to changes in demand, allowing for efficient adjustments in production, distribution, and logistics to meet customer needs.

Advanced Shipping Notice (ASN)

An ASN is a notification sent by a supplier to a recipient, providing detailed information about a shipment, including contents, quantity, and expected delivery, to facilitate efficient cargo handling and supply chain planning.

AIS Automatic Identification Systems

AIS is a maritime communication system that uses transponders on ships for real-time ship tracking, providing information such as vessel position, speed, and course to enhance navigation safety and avoid collisions.

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b

Berth

A Berth is a designated location at a port where a ship docks or anchors for loading, unloading, or other port activities.

Breakbulk

Breakbulk refers to the transportation of goods that are not containerized, typically loaded individually or on pallets, often requiring special handling and stowage.

Blank Sailing

Blank Sailing occurs when a scheduled voyage is cancelled by a shipping line, often due to low demand or operational reasons, leading to adjustments in the shipping schedule.

Booking Number

A Booking Number is a unique identifier assigned to a specific shipment reservation, enabling tracking and management of cargo from the time it is booked until it reaches its destination.

Bill of Lading (BOL)

A BOL is a legal document issued by the carrier to the shipper, acknowledging receipt of cargo for shipment, specifying the terms and conditions of transport, and serving as a title of ownership for the goods.

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c

Carrier

A Carrier is a company or individual responsible for transporting goods, passengers, or cargo by sea, air, land, or a combination of these modes.

Chassis

A Chassis is a wheeled frame or undercarriage used to support and transport shipping containers over land.

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.

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.

Cut-off Time

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

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d

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.

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.

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.

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.

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.

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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.

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.

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.

Empty Repositioning

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

EXIM (Export-Import)

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

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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 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.

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.

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.

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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.

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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.

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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.

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.

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.

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.

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.

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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.

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Laytime

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

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.

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.

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.

Logistics Visibility

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

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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.

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.

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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.

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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.

Ocean Freight

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

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.

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p

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.

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 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 Authority

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

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.

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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.

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Reefer Vessel

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

Reefer Container

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

Route Optimization

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

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.

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.

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Shipper

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

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.

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.

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.

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.

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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.

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 Port

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

Transloading

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

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.

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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.

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.

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.

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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.

Voyage Charter

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

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.

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.

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Waybill

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

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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.

Glossary of Maritime Terms

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3PL (Third-Party Logistics)

3PL vs 4PL

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a

AIS Ship Tracking

Agile Supply Chains

Advanced Shipping Notice (ASN)

AIS Automatic Identification Systems

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b

Berth

Breakbulk

Blank Sailing

Booking Number

Bill of Lading (BOL)

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c

Carrier

Chassis

Chassis Pool

Customs Duty

Cut-off Time

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d

Dwell Time

Delivery Order (D/O)

DDP (Delivered Duty Paid)

Delivery Duty Unpaid (DDU)

DAP Shipping (Delivered At Place)

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e

ESG

ETA / ETD

Ex Works (EXW)

Empty Repositioning

EXIM (Export-Import)

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f

Freight Rate

Feeder Vessel

Freight Forwarder

Freight Transport

Free Carrier (FCA)

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g

Global Navigation Satellite System (GNSS)

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h

Haulage

Haulier

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i

Incoterms

In Transit

Inland Drayage

In-Transit Visibility

Importer of Record (IOR)

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j

JIT (Just-In-Time)

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l

Laytime

LCL / FCL

Lead Time

Lane Performance

Logistics Visibility

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m

Maritime Insurance

Multimodal Transport

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n

NVOCC (Non-Vessel Operating Common Carrier)

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o