Logistics glossary

Units & measures

CBM (Cubic Meter)

The standard volume unit in freight: length × width × height in meters. LCL ocean rates and many road quotes are priced per CBM.

Units & measures

Volumetric weight

A billing weight derived from package volume (L × W × H ÷ divisor). Carriers charge the higher of actual and volumetric weight.

Units & measures

Chargeable weight

The weight a carrier actually bills: the greater of actual weight and volumetric weight.

Units & measures

Gross weight

The total weight of a shipment including the product, packaging, pallet and protective material - the figure customs and carriers use for limits and pricing.

Units & measures

Net weight

The weight of the goods alone, excluding packaging and pallets. Declared on invoices and customs documents alongside gross weight.

Units & measures

Tare weight

The empty weight of a container or vehicle. Gross weight minus tare weight gives the cargo (payload) weight.

Units & measures

TEU

Twenty-foot Equivalent Unit - the standard measure of container capacity. A 40-foot container equals 2 TEU.

Units & measures

LDM (Loading Meter)

One meter of truck floor length across the full width. Road groupage is often priced per LDM; 1 LDM is commonly treated as ~1,750 kg.

Units & measures

Freight ton (Revenue ton)

The chargeable unit in ocean LCL: the higher of 1 tonne or 1 CBM. A 12 m³ / 4 t shipment is billed as 12 freight tons.

Units & measures

ETA / ETD

Estimated Time of Arrival / Departure - the forecast schedule of a shipment or vehicle.

Units & measures

Transit time

The time from cargo pickup or vessel departure to arrival at destination. Direct services have shorter, more reliable transit times than routed ones.

Ocean freight

FCL (Full Container Load)

Ocean freight where one shipper uses a full container. Faster and more secure than sharing, priced per container.

Ocean freight

LCL (Less than Container Load)

Ocean freight where cargo from several shippers is consolidated into one container and priced by volume (CBM).

Ocean freight

Reefer

A temperature-controlled (refrigerated) container or trailer used for perishable cargo.

Ocean freight

Open top / Flat rack

Special containers for oversized cargo: open top has a removable roof for top loading; a flat rack has no sides for over-width loads.

Ocean freight

OOG (Out of Gauge)

Cargo that exceeds standard container dimensions in height, width or length. Requires special equipment and pricing.

Ocean freight

SOC / COC container

Shipper-Owned vs Carrier-Owned Container. SOC avoids detention charges on long dwell times because the box belongs to the shipper.

Ocean freight

Transshipment

Transferring cargo from one vessel to another at an intermediate port. Cheaper than direct service but adds time and handling risk.

Ocean freight

Feeder vessel

A smaller ship that carries containers between regional ports and the hub ports served by large mainline vessels.

Ocean freight

Cargo manifest

The carrier’s official list of all cargo on board a vessel, aircraft or vehicle, submitted to customs before arrival.

Road freight

FTL (Full Truckload)

A shipment that fills an entire truck. The shipper pays for the whole vehicle, which travels directly from pickup to delivery without sharing space.

Road freight

LTL (Less Than Truckload)

A shipment that occupies only part of a truck. Multiple shippers share the vehicle and split the cost; transit usually includes consolidation stops.

Road freight

Groupage (consolidation)

Combining shipments from multiple senders into one vehicle or container. The road/ocean equivalent of ride-sharing - lower cost, slightly longer transit.

Road freight

Drayage

Short-distance road transport of containers, typically between a port or rail terminal and a nearby warehouse.

Road freight

Backhaul (return load)

Freight carried on the return leg of a trip that would otherwise run empty - key to reducing empty kilometers and cost.

Road freight

Dead mileage (empty running)

Distance a vehicle travels without cargo. Marketplaces reduce it by matching return loads to empty legs.

Road freight

TIR Carnet

An international customs transit document that lets sealed road vehicles cross borders without inspection at each frontier, under the TIR Convention.

Air freight

AWB (Air Waybill)

The air cargo transport document. Unlike a bill of lading, it is not a document of title.

Air freight

IATA volumetric divisor

The divisor used to convert volume to chargeable weight in air cargo - 6,000 for standard air freight (cm³/kg), often 5,000 for express couriers.

Air freight

Air consolidator

A forwarder that buys bulk air capacity and resells it, combining many small shipments under one master air waybill.

Customs & trade

HS code

Harmonized System code - the international product classification used by customs to determine duties and rules. National codes extend it to 8-12 digits.

Customs & trade

GTİP

Türkiye’s 12-digit national extension of the HS code (Gümrük Tarife İstatistik Pozisyonu). The first 6 digits match the international HS code.

Customs & trade

EORI number

Economic Operators Registration and Identification number - required to import or export goods through EU customs.

Customs & trade

Customs broker

A licensed agent who prepares and files customs declarations, calculates duties and clears goods through import/export formalities.

Customs & trade

Customs declaration

The official statement to customs describing goods, their value, origin and HS code, on which duties and permissions are assessed.

Customs & trade

ETGB

Türkiye’s Electronic Trade Customs Declaration - a simplified declaration filed by authorized express carriers for micro-export shipments up to 600 kg / €30,000, with no separate customs broker needed.

Customs & trade

Micro-export

Türkiye’s simplified export regime for shipments up to 600 kg gross and €30,000 (excl. VAT), moved by authorized express carriers under an ETGB declaration.

Customs & trade

Bonded warehouse

A customs-controlled warehouse where imported goods can be stored with duties suspended until they are released or re-exported.

Customs & trade

Free trade zone

A designated area treated as outside the customs territory, where goods can be stored, processed or re-exported without normal duties.

Customs & trade

T1 / T2 transit document

EU customs transit declarations: T1 moves non-EU goods through EU territory with duties suspended; T2 covers EU-status goods.

Customs & trade

ATA Carnet

An international customs document allowing temporary duty-free import of goods such as samples, exhibition material and professional equipment.

Customs & trade

Dangerous goods (UN number, packing group)

Cargo classified as hazardous. The UN number identifies the substance; the packing group (I-III) indicates its danger level.

Documents

Bill of Lading (B/L)

The ocean transport contract, cargo receipt and document of title in one. Whoever legitimately holds the original B/L controls the goods.

Documents

CMR

The standard international road consignment note under the CMR Convention - evidence of the transport contract and cargo condition.

Documents

Commercial invoice

The seller’s invoice for the goods, used by customs to assess value and duties. Must match the packing list and transport documents.

Documents

Proforma invoice

A preliminary invoice issued before shipment, used for quotations, import permits and letter-of-credit openings - not a demand for payment.

Documents

Packing list

The document detailing how goods are packed: pieces, weights and dimensions per package. Customs and carriers use it to verify cargo.

Documents

Certificate of origin

An official document stating where goods were produced - the basis for preferential duty rates under trade agreements.

Documents

A.TR certificate

A movement certificate for industrial goods traded between Türkiye and the EU under the customs union, granting duty-free circulation.

Documents

EUR.1 certificate

A preferential origin certificate that lets goods claim reduced or zero duty under free trade agreements.

Documents

MSDS / SDS

Material Safety Data Sheet - the document describing a substance’s hazards, handling and emergency measures. Required for dangerous goods shipments.

Documents

Letter of Credit (L/C)

A bank’s guarantee that the seller will be paid once the documents specified in the credit are presented correctly - the standard payment security in international trade.

Charges & fees

Demurrage

A charge when a container stays at the port/terminal beyond the free time - billed per day until it is picked up.

Charges & fees

Detention

A charge when equipment (usually a container) is kept outside the terminal longer than the allowed free time before being returned.

Charges & fees

Free time

The number of days a container may stay at the terminal (demurrage-free) or with the consignee (detention-free) before daily charges start. Negotiable at quotation.

Charges & fees

THC (Terminal Handling Charge)

The fee terminals charge for loading/unloading containers at origin (OTHC) or destination (DTHC).

Charges & fees

BAF (Bunker Adjustment Factor)

The fuel surcharge on ocean freight that moves with bunker prices, charged on top of the base rate.

Charges & fees

CAF (Currency Adjustment Factor)

A surcharge compensating carriers for exchange-rate movements between the tariff currency and their cost currencies.

Charges & fees

LSS (Low Sulphur Surcharge)

A surcharge covering the extra cost of low-sulphur marine fuel required by IMO 2020 emission rules.

Charges & fees

ISPS fee

A security surcharge funding port and vessel security measures under the International Ship and Port Facility Security Code.

Charges & fees

Storage (ardiye)

The port or terminal’s own warehousing fee for cargo kept in its area - separate from, and often charged alongside, carrier demurrage.

Charges & fees

Freight prepaid / collect

Who pays the freight: prepaid means the shipper pays at origin; collect means the consignee pays at destination.

Insurance

Cargo insurance (ICC A/B/C)

Marine cargo cover under Institute Cargo Clauses: ICC (A) is all-risks, (B) covers named major perils, (C) is the narrowest basic cover.

Insurance

War-risk surcharge

Extra insurance/freight cost applied on lanes passing through conflict or high-risk areas (e.g. certain straits and seas).

Insurance

Sum insured (CIF +10%)

The value cargo is insured for. Standard practice is the CIF value plus 10% to cover expected profit and incidental costs.

Insurance

General average

A maritime principle: when cargo is sacrificed to save a voyage (e.g. jettisoned or fire-damaged), ALL cargo owners share the loss proportionally - a key reason to insure.

Operations

Incoterms

Standard trade terms published by the ICC (EXW, FOB, CIF, DAP, DDP…) that define where cost, risk and responsibility pass from seller to buyer.

Operations

FOB (Free On Board)

An Incoterm: the seller delivers goods on board the vessel; risk and cost transfer to the buyer once loaded at the origin port.

Operations

CIF (Cost, Insurance & Freight)

An Incoterm: the seller pays freight and minimum insurance to the destination port; risk passes to the buyer at loading.

Operations

DAP (Delivered At Place)

An Incoterm: the seller delivers to the named destination ready for unloading; the buyer handles import clearance and duties.

Operations

DDP (Delivered Duty Paid)

An Incoterm: the seller bears all costs and risks to the destination, including import duties and taxes.

Operations

EXW (Ex Works)

An Incoterm: the buyer collects the goods at the seller’s premises and carries all cost and risk from that point - minimum obligation for the seller.

Operations

Freight forwarder

A company that organizes transport on behalf of shippers - booking carriers, handling documents and often consolidating cargo. Forwarders can bid on LogiFindex like carriers.

Operations

Milk run

A planned multi-stop route where one vehicle picks up or delivers at several points in a loop - cutting cost versus separate direct trips.

Operations

Cross-docking

A flow where inbound goods are transferred at a hub directly to outbound vehicles with little or no storage in between.

Operations

Spot freight

One-time shipments priced at current market conditions, as opposed to contracted volume at pre-agreed rates.

Operations

Tender

A structured request for freight quotes - shippers publish requirements and providers submit competing bids.

Operations

Multimodal / intermodal transport

Moving one shipment with two or more transport modes (e.g. truck + rail + vessel) under a single contract and operator.

Operations

Last mile delivery

The final leg of delivery from the local hub to the end receiver - typically the most expensive kilometre of the journey.