Logistics Glossary
Plain-English definitions of the logistics, freight, and trade-compliance terms that shape global supply chains, point A to point B.
Key Logistics & Trade Terms
Global trade has a language of its own. This glossary breaks down the most important logistics, freight, warehousing, and compliance terms into clear definitions, organized by category. Looking for trade terms like FOB or DDP? See our dedicated Incoterms 2020 page.
Trade & Customs Compliance
IOR — Importer of Record
The legal entity responsible for ensuring imported goods comply with the destination country's laws, paying duties and taxes, and filing the required customs documentation. A2B Link can act as your IOR in markets where you have no local entity.
EOR — Exporter of Record
The legal entity responsible for ensuring exported goods meet the origin country's export regulations and for completing all export declarations and filings.
Customs Clearance
The process of getting goods approved by customs authorities to enter or leave a country, including documentation, duty payment, and any required inspection.
Customs Broker
A licensed professional or firm that handles customs clearance on an importer's behalf, preparing entries, classifying goods, and ensuring regulatory compliance.
Customs Bond
A financial guarantee that ensures duties, taxes, and penalties owed to customs will be paid. Required for most commercial imports into the U.S.
HS Code — Harmonized System Code
A standardized international numbering system used to classify traded products for customs, duties, and trade statistics. Correct classification is essential for accurate duty assessment.
Country of Origin
The country where a product was manufactured, produced, or grown. It determines duty rates, trade-agreement eligibility, and labeling requirements.
Import Duty
A tax levied by a government on goods brought into the country, usually calculated as a percentage of the customs value.
Tariff
A schedule of duties or taxes imposed on imported or exported goods, often used to protect domestic industries or as a trade-policy tool.
Drawback
A refund of duties, taxes, or fees previously paid on imported goods that are later exported or destroyed, helping recover costs in re-export supply chains.
Shipping Documents
Bill of Lading — BOL
A legal document issued by a carrier acknowledging receipt of cargo. It serves as a receipt, a contract of carriage, and a document of title for ocean and ground freight.
Air Waybill — AWB
A non-negotiable transport document for air cargo that acts as a receipt and contract of carriage between the shipper and the airline.
Commercial Invoice
The primary customs document describing the goods, their value, and the terms of sale. Used to assess duties and verify the transaction.
Packing List
A document itemizing the contents, weights, and dimensions of each package in a shipment, used for handling, customs, and verification.
Certificate of Origin
A document certifying the country in which goods were produced, often required for customs clearance and to claim preferential duty rates under trade agreements.
Proof of Delivery — POD
Confirmation, often signed, that a shipment was received by the consignee, closing out the delivery and supporting billing or claims.
Ocean Freight
FCL — Full Container Load
An ocean shipment that fills, or is booked to fill, an entire container exclusively for one shipper. Cost-effective for larger volumes.
LCL — Less-than-Container Load
An ocean shipment too small to fill a container, consolidated with other shippers' cargo so each pays only for the space used.
TEU / FEU
Twenty-foot and Forty-foot Equivalent Units, the standard measures of container capacity used to quantify vessel and terminal volume.
Demurrage
Charges incurred when a container stays inside the port or terminal beyond the allowed free time before pickup.
Detention
Charges incurred when a container is held outside the terminal beyond the allowed free time before being returned.
Reefer Container
A refrigerated shipping container with temperature and humidity control, used for perishable, pharmaceutical, and other temperature-sensitive cargo.
Breakbulk
Cargo that is too large or heavy for standard containers and is loaded individually, common in energy, construction, and project freight.
RoRo — Roll-on/Roll-off
A vessel and shipping method where wheeled cargo, such as vehicles and machinery, is driven on and off the ship rather than lifted.
Air Freight
Chargeable Weight
The weight used to price an air shipment, calculated as the greater of actual weight or volumetric (dimensional) weight.
Volumetric Weight
A pricing figure derived from a shipment's dimensions rather than its actual weight, ensuring light but bulky cargo is charged fairly for the space it occupies.
ULD — Unit Load Device
A pallet or container used to load freight onto aircraft, allowing cargo to be handled as a single unit.
Dangerous Goods — DG
Items classified as hazardous for transport, such as batteries, chemicals, and flammables, requiring special packaging, labeling, and documentation.
AOG — Aircraft on Ground
An urgent-priority shipment of parts needed to return a grounded aircraft to service, handled with maximum speed.
Warehousing & Fulfillment
FTZ — Foreign-Trade Zone
A secure area treated as outside customs territory, letting companies store, handle, or assemble goods while deferring, reducing, or eliminating duties until the goods enter the market.
Bonded Warehouse
A customs-authorized facility where imported goods can be stored without paying duties until they are released for sale or re-export.
Cross-Docking
Transferring incoming goods directly from inbound to outbound transport with little or no storage time, speeding distribution and cutting costs.
Transloading
Moving cargo from one mode or container to another, such as ocean container to truck, often near a port to optimize inland distribution.
Consolidation
Combining multiple smaller shipments into one larger load to reduce per-unit shipping costs and simplify handling.
SKU — Stock Keeping Unit
A unique identifier assigned to each distinct product and variant, used to track inventory and orders.
Pick & Pack
The fulfillment process of selecting ordered items from inventory and packing them for shipment, often with labeling and kitting.
Kitting
Grouping individual items into a single ready-to-ship package or assembly, common for bundles, promotions, and subscription boxes.
WMS — Warehouse Management System
Software that tracks inventory, locations, and movement within a warehouse, giving real-time visibility and control over fulfillment.
FIFO / FEFO
Inventory rotation methods, First In First Out and First Expired First Out, that ensure older or sooner-to-expire stock ships first.
Transportation & Supply Chain
Freight Forwarder
A company that arranges and coordinates shipments on behalf of shippers, booking carriers, handling documentation, and managing the logistics chain.
3PL — Third-Party Logistics
A provider that manages outsourced logistics, warehousing, fulfillment, freight, and distribution, so businesses can scale without building their own network.
4PL — Fourth-Party Logistics
A provider that manages an entire supply chain and other 3PLs on a client's behalf, acting as a single strategic point of coordination.
FTL — Full Truckload
A shipping method where an entire trailer is dedicated to one shipment, ideal for large or time-sensitive freight.
LTL — Less-than-Truckload
A shipping method where multiple shippers share one trailer, with each paying only for the space used.
Power Only
A service where the A2B Link network supplies the truck and driver (the tractor, or 'power') to haul a trailer that the shipper already owns or has loaded. Ideal for drop-trailer programs, repositioning, and flexible capacity without committing your own drivers.
Intermodal
Freight transport using two or more modes, such as truck, rail, and ocean, within standardized containers without handling the cargo when switching modes.
Drayage
The short-distance transport of containerized cargo, typically between a port or rail terminal and a nearby warehouse, linking ocean freight to inland transport.
Last-Mile Delivery
The final leg of the shipping journey, moving goods from a local hub to the end customer's door, often the most complex and cost-sensitive stage.
Reverse Logistics
The movement of goods back through the supply chain for returns, repairs, refurbishment, recycling, or disposal.
Lead Time
The total time between placing an order and receiving it, a key measure for inventory planning and customer expectations.
ETA / ETD
Estimated Time of Arrival and Estimated Time of Departure, the projected times a shipment reaches or leaves a location.
Accessorial Charges
Additional fees for services beyond standard transport, such as liftgate, residential delivery, detention, or inside delivery.
Fuel Surcharge
A variable fee added to freight rates that adjusts with fuel prices, keeping carrier pricing aligned with market costs.
Freight Class — NMFC
A standardized classification that rates LTL freight by density, handling, stowability, and liability to determine pricing.
Cargo Insurance
Coverage protecting the value of goods against loss or damage during transport, separate from a carrier's limited liability.
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