Making sense of the language of transport and logistics – decoding the terminology, one word at a time. The transport and logistics sector can seem like it speaks a different language, with over 5,000 words, phrases, acronyms, and technical terms, not to mention their official legal definitions. To make sense of it all, we have compiled a comprehensive glossary of commonly used logistics and shipping terms and another list of frequently used acronyms and terms related to Neele-Vat.
”Project logistics is a complex and challenging work area. Steder provides customized logistic solutions for any project, worldwide.”
Termonology in Logistics
3PL: Third-Party Logistics, the use of external organizations to handle elements of distribution and warehousing for a company in the logistics and supply chain management field. DSV is primarily considered a 3PL provider.
4PL: Fourth-Party Logistics, also known as Lead Logistics, where the provider has a broader role within the supply chain compared to 3PL providers. DSV primarily operates as a 3PL provider but also offers 4PL services.
AEO: Authorized Economic Operator, a company or organization approved by a national Customs administration for involvement in international trade of goods.
Autonomous Car: A self-driving car, also referred to as a robot car or driverless car.
B/L: Bill of Lading, a comprehensive list of a ship’s cargo.
Bonded Warehousing: A type of warehousing where goods are stored without paying taxes or tariffs until they are ready for distribution.
Cold Chain: A refrigerated, temperature-controlled supply chain used primarily for pharmaceuticals or foodstuffs. An uninterrupted series of refrigerated production, storage, and distribution facilities maintain a specified low-temperature range to maintain an unbroken cold chain.
Compliance: The adherence to relevant requirements for products, services, processes, and/or documents.
Dangerous Goods: Substances or articles that pose a risk to people, property, or the environment due to their chemical or physical properties.
Digitalization: The increased adoption or utilization of digital technology.
Digitization: The conversion of analog data into digital form.
Driverless Car: A self-driving car, also referred to as a robot car or autonomous car.
FTL, FTL Freight: Full Truckload, when a shipment requires exclusive use of a truck, either because it fills the whole truck or for faster collection and delivery at a higher cost than Less Than Truckload (LTL).
GDP: This term has two different meanings: Good Distribution Practice, guidelines for proper distribution of human use medicinal products, and Gross Domestic Product, a monetary measure of the market value of all final goods and services produced in a country or region.
Haulier: A term used primarily in the UK for a trucking company.
Hazardous Cargo: Substances classified based on health effects, immediate or long-term, while dangerous goods relate to physical or chemical effects, including fire, explosion, corrosion, and poisoning.
Healthcare Vertical: A sector that provides services to several areas including biotechnology and pharmaceuticals, medical devices and diagnostics, medical products and personal care, and hospitals and care homes.
Incoterms: International trading terms and conditions issued by the International Chamber of Commerce to assist traders, lawyers, transporters, and insurers during the buying, selling, and transporting of goods. The 11 Incoterms rules outline obligations for trading partners and the point in the journey where risk transfers from the seller to the buyer.
Lead Logistics: 4PL providers that have a broader role in the supply chain compared to 3PL providers. DSV primarily operates as a 3PL provider but also offers Lead Logistics services.
Load Meter: A unit of measure for calculating the cost of freight, equivalent to one linear meter of loading space in a truck or trailer. Used when goods cannot be stacked. One europallet equals 0.4 load meters.
LTL, LTL Freight: Less Than Truckload, when a shipment does not require a whole truck and is shipped with other customers’ goods for a lower cost solution.
Robot Car: A self-driving car