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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