Common Terminology of the Logistics Industry
Logistics companies’ in India is a long one and a large number of similar survives are currently operating all over the world. Due to the elaborate nature of their operations, they comprise a number of different functions and operations.
As it is true for any industry, the logistics industry too has a number of words and phrases that are common logistics lingo. Anyone who is closely associated with 3PL logistics providers or supply chain and logistics management must be aware of some important terms used in by logistics professionals. Given below is a collection of 15 such words and phrases that are commonly used in the logistics industry:
- Air Freight Forwarder: These forwarders offer pickup and delivery services to and from shippers’ docks. Forwarders do not usually operate their own aircraft.
- All-Risk Insurance: This is the broadest type of coverage available for protection against physical damages from external costs. However, it doesn’t include causes such as an act of war, delay, improper packaging.
- Bill of Lading: This is the document issued by the carrier to the shipper. It contains written evidence about the receipt of freight, transport conditions, the delivery date and the port of destination.
- Bulk Freight: This term is used to refer to freight that is not to be contained within containers or packages.
- Carrier: The carrier is the company, person, or service that transports freight in return for a fee. There are several different types of carriers depending on the mode and goods to be transported.
- Certificate of Origin: As the name suggests, this document proves and confirms the origin of imported goods. It is often required for customs processes.
- Clearance: Clearance or customs clearance is the green signal that has to be received for the export or import of any shipment. The clearance document contains all the details about the shipment.
- Customs Broker: The broker is a service or person with the appropriate registration which negotiates and assists customs clearance for shipping freight.
- Nested: This is a term commonly used in LTL (less than truckload) freight shipping. Nested freight is stacked in such a way that the space taken is reduced, thus making the shipping efficient.
- POD: POD or proof of delivery is a document or receipt that shows that the shipment was delivered. It contains the date as well as information related to any damages noticed at the time of delivery. It has to be signed by the recipient.
- Port of Entry: As the name suggests, the port of entry is the port at which the shipment is admitted into the receiving state or country. In the case of international shipping, the customs clearance has to be produced for smooth entry.
- Warehousing: Warehousing functions are often performed by a logistics service. It refers to the storage of goods for a specific period of time before they are shipped or sent out for delivery.
Therefore, these are some of the most common terms used in the logistics industry. All of them are extremely important and must be properly understood, especially if you are closely involved with the customs clearance process or regular shipment of freight. Some of these terms might also come useful if you are filing a claim.