37 terms
Logistics Glossary
THC, demurrage, volumetric weight, HS code, POL/POD… everything that appears on a quote and nobody explains.
What does it mean when a quote says “THC not included”, why is volumetric weight different from actual weight, are a bonded warehouse and an ordinary warehouse the same thing? We gathered here the terms the industry assumes everyone knows and nobody explains.
Documents and declarations
- CMRConvention Marchandises Routiers
- The international road transport contract and consignment note. It evidences that the cargo was handed to the carrier and that the carrier is liable.
- B/LBill of Lading
- The sea consignment note. It is also a document of title; without the original the cargo cannot be collected.
- AWBAir Waybill
- The air consignment note. Unlike a bill of lading it is not a negotiable instrument and does not transfer title.
- CIMRail consignment note
- The rail consignment note — the CMR of international rail transport.
- T1 / T2Transit declaration
- The transit declaration in the EU customs territory. T1 is for non-Union goods, T2 for Union-status goods.
- A.TRA.TR movement certificate
- The free-circulation certificate under the Türkiye–EU customs union; it grants exemption from customs duty.
- EUR.1Movement certificate
- Proof of origin used to claim preferential tariffs in free-trade-agreement countries.
- HS codeCustoms tariff statistical code
- The 12-digit customs code of the goods. It determines the duty rate, restrictions and the paperwork required.
- ATA carnetTemporary admission carnet
- For taking exhibition goods, samples and professional equipment abroad temporarily without paying duty.
- TIR carnetTransport International Routier
- The guarantee document under the TIR convention that lets a sealed vehicle transit intermediate customs unopened.
Authorisations and certificates
- K certificateDomestic transport authorisation
- K1 is for commercial domestic freight, K2 for own-account transport, K3 for household removals.
- C2International freight transport authorisation
- The authorisation for companies carrying international freight in their own name and account.
- L2 / R1 / R2Logistics and freight-forwarding authorisations
- L2 covers international logistics operation, R1/R2 freight forwarding.
- ADRAgreement on the international carriage of dangerous goods by road
- The rules for carrying dangerous goods. The vehicle approval certificate, the driver training certificate and the orange plate are mandatory.
- ATPAgreement on the carriage of perishable foodstuffs
- The certificate attesting the insulation and refrigeration performance of reefer vehicles and trailers.
- SRCDriver certificate of professional competence
- The professional competence certificate for commercial drivers — its type depends on the kind of transport.
- AEO (YYS)Authorised economic operator status
- Trusted-trader status at customs; it brings priority handling, fewer checks and simplified procedures.
Freight and cost
- THCTerminal Handling Charge
- The terminal charge for handling the container at the port. The quote must state whether it is included in the freight.
- BAFBunker Adjustment Factor
- A surcharge that passes fuel price swings on to the freight.
- CAFCurrency Adjustment Factor
- A surcharge applied for currency fluctuation.
- DemurrageDemurrage
- The daily charge for a container staying in the port beyond its free time.
- DetentionContainer detention
- The daily charge for returning the container to the line late after it has left the port.
- Delivery orderDelivery order
- The document issued by the agent once freight and charges are paid, allowing the cargo to be collected from the port.
- Volumetric weightVolumetric weight
- The chargeable weight for light but bulky cargo. By road it is (width×length×height cm) ÷ 3000, by air ÷ 6000.
- Part load (LCL)Groupage / LTL
- Carrying loads that do not fill a truck by consolidating them with others. At sea the equivalent is LCL.
- FCL / LCLFull / Less than Container Load
- FCL is a full container belonging to one shipper; LCL is consolidated part-load cargo.
- FTL / LTLFull / Less than Truckload
- FTL is a full truckload; LTL is part-load road cargo.
Operations and routing
- POL / PODPort of Loading / Discharge
- The port of loading and the port of discharge. A sea quote always states both.
- ETA / ETDEstimated Time of Arrival / Departure
- Estimated time of arrival and departure.
- TranshipmentTranshipment
- Transferring the cargo to another vessel at an intermediate port. It lengthens transit and raises damage risk — a direct sailing is preferred when available.
- RoRoRoll-on / Roll-off
- Carrying wheeled vehicles by driving them onto the ship on their own wheels.
- IntermodalMultimodal transport
- Carrying the same cargo by combining road, sea, air and rail legs — the loading unit stays the same, the vehicle changes.
- Cross-dockingCross-docking
- Moving cargo straight from the inbound vehicle to the outbound one without entering the warehouse. It removes stock cost.
- Bonded warehouseBonded warehouse
- A place where goods are stored without duty being paid. Release for free circulation happens when the goods leave the warehouse.
- Release for free circulationRelease for free circulation
- Goods becoming freely tradable domestically once customs duties are paid.
- GaugeRoad clearance limit
- The height/width limit a vehicle with its load must not exceed. In Türkiye the road height limit is generally 4.00 m.
- TareTare
- The weight of the empty vehicle or container. Payload is the maximum gross weight minus the tare.
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