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3PL: Third-Party Logistics. A 3PL is an outsourced logistics provider, which handles just the aspects of shipping on one's behalf, their services ranges from warehousing and fulfillment to freight bills and transportation. 3PL service is where a business outsources the management of it's transportation and logistics, but still has eyes over its whole supply chain. As part of 3PL, extra services are included where necessary, such as warehousing, terminal operations and customs brokerage.

4PL: Fourth-Party Logistics is one step up from 3PL. 4PL is an outsourced logistics provider, which handles both the organization and management of an entire supply chain for E-Commerce manufacturers and wholesalers. This includes logistics, packaging, warehousing, product delivery, project management, business planning and transportation management strategy.

Actual Time of Arrival (ATA): Actual Time of Arrival, or Airport-To-Airport. This is the confirmed arrival date at the destination shipping point. It's essential to be aware this usually is referring to the Port of Discharge rather than the final delivery point.

Actual Time of Departure (ATD): The confirmed departure date from the original shipping point. This information becomes available once receiving the Bill of Lading from the carrier.

Airfreight: The transportation of goods by air, which is often fast and efficient for long distances or time-sensitive shipments.

Air Waybill: An AWB is a bill of lading which covers both domestic and international flights transporting goods to a specified destination. Technically, it is a non-negotiable instrument of air transport which serves as a receipt for the shipper, indicating that the carrier has accepted the goods listed therein and obligates itself to carry the consignment to the airport of destination according to specified conditions. Normally AWB refers to the Air Waybill issued by carrying airlines and also called Master Air Waybill (MAWB) which comes with three digits of numeric airline identification codes issued by IATA to non-U.S. based airlines and Air Transport Association of America to U.S. based airlines. However, air freight forwarders also issue HAWB (House Air Waybill) to their customers for each of the shipments.

Aircraft Container: A unit load device (ULD) which links directly with the airplane cargo handling and restraint system.

Allotment: A term used to describe blocked space by airlines on behalf of forwarders/shippers.

All Risks Insurance: All Risks insurance is the most comprehensive form of insurance for the transportation of goods. While it does not cover every type of risk, it does apply to damage or loss of goods caused by accident.

Arrival Notice: Also referred to as a delivery notice. This is a message, usually automated, where the carrier notifies the appropriate party that the shipment has arrived.

ATA Carnet: The ATA Carnet is a document used for the duty and tax-free import of goods that stems from the International Convention. It acts as a passport for your goods, which is valid in countries that have signed the agreement (87 in total, including the US, UK, China and all EU countries).

Bill of Lading (B/L): A legal document issued by a carrier to acknowledge receipt of goods and specify the terms of the transportation contract.

Bonded Warehouse: The Customs Service authorizes bonded warehouses for storage or manufacture of goods on which payment of duties is deferred until the goods enter the Customs Territory. The goods are not subject to duties if re-shipped to foreign points.

Break Bulk (B/B): For consolidated air freight, it is moved under one MAWB and each consignment designated to a specific consignee or recipient is under one HAWB. When a freight forwarder receives the consolidated cargo from the carrier, they will break the consolidation apart per HAWB then proceed to customs clearance along with associated shipping and import documents. Such Break-Bulk is normally handled by airlines or their contracted ground handling agent.

Carnet: A customs document permitting the holder to carry or send merchandise temporarily into certain foreign countries for display, demonstration or other purposes without paying import duties or posting bonds.

Carriers: The carriers are the responsible parties for transporting the freight from one place to another. That is the shipping companies transporting the goods via land, air and water. Carriers are commonly known as freight carriers, and they transport items that exceed standard dimensions and weight.

Combi Aircraft: An aircraft configured to carry both passengers and cargo on the Main Deck.

Commercial Invoice: The Commercial Invoice contains the buyer and seller's details in addition to the type of goods, quantity, price of each product and terms of sale. The commercial invoice is used to declare the goods to customs, therefore, dictating the number of duties and taxes to be paid.

Consignee: This person or entity is the shipment receiver and generally the owner of the shipped goods. Unless there are other instructions, the consignee is the entity or person legally required to be present to accept the shipment.

Consignment: Delivery of merchandise from an exporter (the consignor) to an agent (the consignee) under agreement that the agent sells the merchandise for the account of the exporter. The consignor retains title to the goods until sold. The consignee sells the goods for commission and remits the net proceeds to the consignor.

Consignor: When transporting freight and goods, either by ocean, air, or land, there are two parties involved — one who is shipping the freight and the other who is receiving it. The sender or shipper is referred to as the consignor.

Consolidation: Consolidation is a process in which several small shipments that are to be sent to the same location are collated and packaged together, or consolidated on a single palette or truck, and then shipped together to their destination. Also, in order to handle a small lot of consignment efficiently and competitively, freight forwarders usually put many consignments into one lot then tender to the carrier for forwarding. In this case, each consignment will be shipped with one HAWB respectively and all of them will be under one master AWB.

Cross-Docking: A logistics practice where goods are transferred directly from inbound transportation to outbound transportation without being stored in a warehouse, often used to streamline the distribution process.

Customs: The government authorities, designated to collect duties levied by a country on imports and exports.

Customs Broker: An individual or company licensed by the government to enter and clear goods through Customs. Customs business is limited to those activities involving transactions with Customs concerning the entry and admissibility of merchandise; its classification and valuation; the payment of duties, taxes, or other charges assessed or collected by Customs upon merchandise by reason of its importation, or the refund, rebate, or drawback thereof.

Customs Clearance: The procedures involved in getting shipments or cargo released by Customs through designated formalities such as presenting import license/permit, payment of import duties and other required documentation by the nature of the cargo.

Customs Invoice: A document, required by some foreign countries' customs officials to verify the value, quantity, and nature of the shipment, describing the shipment of goods and showing information such as the consignor, consignee, and value of the shipment.

Dangerous Goods: These are commodities that are classified by IATA according to its nature and characteristics in terms of the effect of its danger to the carrier's flying safety.

DDP: DDP - Delivered Duty Paid is a delivery agreement whereby the seller assumes all responsibility for transporting the goods until they reach an agreed-upon destination.

DDU: DDU - Delivered Duty Unpaid simply means that it's the receiver's (customer's) responsibility to pay for any of the destination country's customs charges, duties, or taxes. These must all be paid in order for customs to release the shipment after it arrives.

Destination: Also known as place of destination, this refers to the agreed location to which a shipment is expected to arrive. When the shipment reaches its delivery point, then the carrier or transport company has fulfilled his delivery obligation. This is the transportation of goods to the required destination provided by the buyer or shipper.

Dimensional Weight: This is when the billable weight of a shipment is determined by the amount of space it occupies in relation to its actual weight. For each shipment, you are either charged based on the dimensional weight or actual weight of the package—whichever is higher. Also known as Volumetric Weight and calculated with the formula L x B x H in centimeters divided by 5000.

Direct Ship: Ship without consolidation and under one MAWB i.e. non-consolidation.

Distribution: The process of moving goods from a central location to multiple destinations, often involving multiple modes of transportation.

Drawback: Drawback is a rebate by a government, in whole or in part, of customs duties assessed on imported merchandise that is subsequently exported. Drawback regulations and procedures vary among countries.

Duty: A tax imposed on imports by the customs authority of a country. Duties are generally based on the value of the goods, some other factors such as weight or quantity (specific duties), or a combination of value and other factors (compound duties).

EDI: EDI, Electronic Data Interchange for Administration, Commerce, and Transportation, is an international syntax used in the interchange of electronic data. Customs uses EDI to interchange data with the importing trade community.

ETA: Estimated Time of Arrival is an indication of the time that a shipment is expected to reach its destination.

ETD: Estimated Time of Departure is the projection of time that is expected for a shipment to depart its point of origin/location.

Export: The shipment of goods or products from one country to another, often involving compliance with export regulations and documentation.

Freight Carriage … paid to: Like C & F, "Freight/Carriage paid to …" means that the seller pays the freight for the carriage of the goods to the named destination. However, the risk of loss of or damage to the goods, as well as of any cost increases, is transferred from the seller to the buyer when the goods have been delivered into the custody of the first carrier and not at the ship's rail. The term can be used for all modes of transport including multi-modal operations and container or "roll on-roll off" traffic by trailer and ferries. When the seller has to furnish a bill of lading, waybill or carrier's receipt, he duly fulfills this obligation by presenting such a document issued by the person with whom he has contracted for carriage to the named destination. (Also see incoterms)

Freight Carriage … and Insurance paid to: This term is the same as "Freight/Carriage Paid to …" but with the addition that the seller has to procure transport insurance against the risk of loss of damage to the goods during the carriage. The seller contracts with the insurer and pays the insurance premium.

Freight Forwarder: An intermediary that arranges and coordinates the transportation of goods on behalf of shippers, often providing services such as consolidation, documentation, and customs clearance.

Full Container Load (FCL): If you have enough goods to fill either a 20ft, 40ft or 40ftHC container, then your goods would be shipped as a Full Container Load.

Gateway: In the context of travel activities, gateway refers to a major airport or seaport. Internationally, gateway can also mean the port where customs clearance takes place.

Ground Transportation: The movement of goods by road or rail, which can be a cost-effective option for shorter distances or local deliveries.

Harmonized System Code: The Harmonized Commodity Description and Coding System (or Harmonized System, HS) is a system for classifying goods in international trade, developed under the auspices of the Customs Cooperation Council.

HAWB: House Air waybill issued by carrying airlines' agent, normally freight forwarder.

Hazardous Materials (Hazmat): Goods or substances that are classified as dangerous or potentially harmful, requiring special handling, documentation, and compliance with regulations.

IATA: International Air Transport Association (IATA), established in 1945, is a trade association serving airlines, passengers, shippers, travel agents, and governments. The association promotes safety, standardization in forms (baggage checks, tickets, weigh bills), and aids in establishing international airfares. IATA headquarters is in Geneva, Switzerland.

IATA Designator: Two-character Airline identification assigned by IATA in accordance with provisions of Resolution 762. It is for use in reservations, timetables, tickets, tariffs as well as air waybill.

Import: The process of bringing goods or products into a country from another country, often involving customs clearance, duties, and taxes.

Import Certificate: The import certificate is a means by which the government of the country of ultimate destination exercises legal control over the internal channeling of the commodities covered by the import certificate.

Import License: A document required and issued by some national governments authorizing the importation of goods. Also referred to as an import permit. With such documentation, customs clearance can be conducted.

Import Restrictions: Import restriction, applied by a country with an adverse trade balance (or for other reasons), reflect a desire to control the volume of goods coming into the country from other countries may include the imposition of tariffs or import quotas, restrictions on the amount of foreign currency available to cover imports, a requirement for import deposits, the imposition of import surcharges, or the prohibition of various categories of imports.

Incoterms: Maintained by the International Chamber of Commerce (ICC), this codification of terms is used in foreign trade contracts to define which parties incur the costs and at what specific point the costs are incurred.

Insurance Certificate: This certificate is used to assure the consignee that insurance is provided to cover loss of or damage to the cargo while in transit.

Intermediate Consignee: An intermediate consignee is the bank, forwarding agent, or other intermediary (if any) that acts in a foreign country as an agent for the exporter, the purchaser, or the ultimate consignee, for the purpose of effecting delivery of the export to the ultimate consignee.

Intermodal: Movement of goods by more than one mode of transport, i.e. airplane, truck, railroad and ship.

Just-in-Time (JIT): A logistics strategy where goods are delivered precisely when they are needed, reducing inventory costs and increasing efficiency.

Key Performance Indicators (KPIs): Metrics used to measure the performance and effectiveness of shipping and logistics operations, such as on-time delivery, cost per unit, and customer satisfaction.

Last Mile Delivery: The final leg of the transportation process, typically from a distribution center to the end customer's location, which can be a critical factor in customer satisfaction.

LD3: Lower deck type 3 container. This is the most commonly used container in passenger aircraft. The compartment below the Main Deck (also synonymous with lower hold and lower lobe).

Main Deck: The deck on which the major portion of payload is carried, normally known as the Upper Deck of an airplane. The full cargo freighter aircraft has its entire upper deck equipped for main deck type of containers/pallets while Combi aircraft uses its rear part of the upper deck for cargo loading. There is no upper deck or main deck type of container/pallet on passenger aircraft.

Mode of Transportation: The method used to transport goods, such as air, ocean, road, or rail, which can impact cost, speed, and efficiency.

Non-Vessel Operating Common Carrier (NVOCC): An intermediary that consolidates smaller shipments from multiple shippers into a larger shipment for transportation, often providing documentation and customs clearance services.

NVD: No Value Declared.

Ocean Freight: The transportation of goods by sea, which is often used for transporting large volumes of goods over long distances.

Origin: Also known as Place of origin, this refers to the initial destination to which a shipment is expected to be picked up. It can also be described as the location at which a carrier receives shipments from a shipper to be transported to an agreed place.

Packaging: The process of preparing goods for transportation, including selecting appropriate materials, securing and protecting the goods, and complying with packaging regulations.

Packing List: A shipping document issued by shipper to carrier, Customs and consignee serving the purposes of identifying detailed information of package count, products count, measurement of each package, weight of each package, etc.

Phytosanitary Certificate: A certificate that verifies agricultural products have been inspected and are pest and disease free ("phyto"meaning "plant" and "sanitary" meaning "clean" or free from pests and diseases) used to accompany food products in export for the purpose of export clearance.

POD: Proof Of Delivery, or a cargo/package receipt with the signature of the recipient. This term has been widely used in the courier and express industry and also gaining more attention and implementation in the air cargo industry.

Pro Forma Invoice: An invoice provided by a supplier prior to the shipment of merchandise, informing the buyer of the kinds and quantities of goods to be sent, their value, and important specifications (weight, size, and similar characteristics). When an importer applies for Letter of Credit as the means of payment, a Pro Forma Invoice from the beneficiary of such Letter of Credit, usually the exporter, is required by the L/C issuing bank.

Quality Control: The process of ensuring that goods meet the required quality standards before, during, and after transportation, often involving inspections, testing, and documentation.

Return Shipment: A purchase that you send back is a return shipment. Online shops offer that option if the contents of your parcel do not correspond with what you ordered or if the product does not fit or does not meet your expectations.

Reverse Logistics: The process of managing the return of goods from customers, including handling returns, repairs, replacements, and recycling or disposal.

Shipping Mark: The letters, numbers or other symbols placed on the outside of cargo to facilitate identification.

Shipping Weight: Shipping weight represents the gross weight in kilograms of shipments, including the weight of moisture content, wrappings, crates, boxes, and containers (other than cargo vans and similar substantial outer containers).

Supply Chain Management: The coordination and management of all activities involved in the production, transportation, and delivery of goods, from sourcing to distribution.

Tare Weight: The weight of a ULD and tie down materials without the weight of the goods it contains.

Transit Time: Time in transit is the time it takes for a shipment to be transported and delivered once it has been picked up from the point of departure. Basically, it is the amount of time spent shipping and delivering products from origin to destination.

Transportation Management System (TMS): Software or technology used to plan, optimize, and manage the transportation of goods, including carrier selection, shipment tracking, and performance monitoring.

Transshipment: Transshipment refers to the act of sending an exported product through an intermediate country before routing it to the country intended to be its final destination.

ULD: Unit Load Device, Any type of container, container with integral pallet, aircraft container or aircraft pallet used to transport goods in a standardized manner, typically used in air or ocean freight.

Ultimate Consignee: The ultimate consignee is the person located abroad who is the true party in interest, receiving the export for the designated end-use.

Value-added Services: Additional services provided by logistics providers, such as packaging, labeling, warehousing, and order fulfillment, to add value to the supply chain.

Value for Customs Purposes Only: This is the value submitted on the entry documentation by the importer which may or may not reflect information from the manufacturer but in no way reflects Customs appraisement of the merchandise.

VAT on Import: Also, Import VAT, is a tax paid on goods bought in one country and imported into another. In the case of European Union (EU), import VAT is the tax paid on goods bought from any country outside the EU and imported into the territory of the union.

Warehouse Management System (WMS): Software or technology used to manage the operations of a warehouse, including inventory management, order fulfillment, and shipment tracking.

Without Reserve: A term indicating that a shipper's agent or representative is empowered to make definitive decisions and adjustments abroad without approval of the group or individual represented.

Yard Management: The management of a facility or yard where goods are stored.

Zone: A shipping zone is a geographical region to which carriers deliver. It's defined by a grouping of zip codes and measured from where the package is shipped from (also called the point of origin) to its destination.

Zone Skipping: A logistics strategy where shipments are consolidated and transported directly from one geographical zone to another, skipping intermediate distribution points, in order to optimize transportation costs and reduce transit time. This is often used in international shipping to bypass unnecessary handling and storage in transit hubs, resulting in more efficient and cost-effective transportation.