| 3PL |
Third Party Logistics. A service provider that offers logistics services to its customers for part, or all of their supply chain management functions. These services may include transportation, warehousing, picking and packing, inventory forecasting, order fulfillment, packaging, and freight forwarding. Kerry Logistics is a Global 3PL Provider.
You might want to read: whats the difference between 3PL, 3PL, 5PL?
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| 4PL |
Fourth Party Logistics. A firm that assembles the resources, capabilities, and technology of its own organization and other organizations to design, build, and run comprehensive supply chain solutions. 4PL providers typically manage the logistics strategy and operations for their clients, including managing 3PLs, truckers, warehouses, customs agents, and freight forwarders.
You might want to read: whats the difference between 3PL, 3PL, 5PL?
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| Agent |
Independent entities or individuals acting on behalf of another party, typically in facilitating trade or logistics operations. |
| Air Way Bill (AWB) |
A document issued by an airline to acknowledge receipt of cargo and the contract of carriage. |
| Application Programming Interface (API) |
A set of protocols, routines, and tools for building software and applications that allow different software programs to communicate with each other. |
| Bill of Lading (BL) |
A legally binding document issued by a carrier to a shipper that details the type, quantity, and destination of the goods being carried. It serves as a shipment receipt when the goods are delivered. |
| Black Swan Events |
Unpredictable or unforeseen events that come as a surprise and have a major effect. In logistics, these events can significantly disrupt supply chains and operations.
You might want to read: Critical Brief on Red Sea Disruption
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| Blank Sailing |
When a scheduled shipping service is cancelled by the carrier, often due to operational reasons or to adjust capacity to match demand.
You might want to read: Blank Sailings: what they mean for your supply chain
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| Buyers Consolidation (BC) |
The process of consolidating multiple smaller shipments into one full container load to optimize shipping costs and efficiency. |
| Cargo Insurance |
Insurance policy that provides coverage against all risks of physical loss or damage to freight during the shipment from any external cause.
You might want to read: How Cargo Insurance can safeguard your business
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| Chargeable Weight |
The weight used to determine shipping charges, which may be based on the actual gross weight or the volumetric weight of the shipment, whichever is greater.
You might want to read: How Chargeable Weight Affects your Costs
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| Container |
A standardized shipping box used for the transport of goods by sea, rail, and road. Containers are designed to be easily transferred between different modes of transport without unloading and reloading their contents.
You might want to read: our Shipping Container Guide
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| Customs Broker |
A professional who is licensed to act as an agent for importers/exporters in handling the necessary customs clearance procedures for international shipments. Customs brokers ensure that all legal and regulatory requirements are met for the import or export of goods. |
| Cut-Off |
The final deadline by which cargo must be delivered to a port or terminal for loading onto a scheduled vessel or flight. |
| Demurrage |
A charge levied by the shipping line for delaying a container beyond the free time allowed for import/export procedures at the port or terminal. |
| Detention |
A fee charged to shippers or consignees for holding transportation equipment beyond the allotted free time provided by carriers for loading or unloading. |
| Electronic Data Interface (EDI) |
A system that allows the exchange of business documents and information between companies electronically, streamlining transactions and reducing paperwork. |
| FAK contract |
A freight agreement where different goods are charged at the same freight rate. FAK stands for "Freight All Kinds" and simplifies the complexity of shipping different items by consolidating them under one rate.
You might want to read: Understanding the different types of Ocean Contracts
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| Force Majeure |
A legal clause or term that frees both parties from liability or obligation when an extraordinary event or circumstance beyond their control, such as a natural disaster or war, prevents one or both parties from fulfilling their obligations under the contract.
You might want to read: Understanding the Law Of General Average
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| Free Time |
The period allowed by the carrier for the importer to pick up the cargo from the terminal without incurring additional storage charges. |
| Freight Forwarder |
A company that organizes shipments for individuals or corporations to get goods from the manufacturer or producer to a market, customer, or final point of distribution. Freight forwarders contract with a carrier or often multiple carriers to move the goods. |
| Incoterms |
International commercial terms published by the International Chamber of Commerce (ICC) that define the responsibilities of buyers and sellers for the delivery of goods under sales contracts.
You might want to read: Mastering Incoterms 2020
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| Pallet |
A portable platform used to package items for freight shipping. Pallets allow goods to be secured in a stable fashion for lifting by forklifts, pallet jacks, front loaders, or other jacking devices.
You might want to read: Our Guide to Packing Pallets
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| Peak Season |
The time of year when demand for freight transportation is highest, often leading to increased shipping rates and reduced availability of shipping space.
You might want to read: Freight Forwarder's guide to Peak and Slack Season
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