Logistics glossary
Plain-language definitions of freight, customs and shipping terms — from Incoterms to demurrage.
- A.TR certificate — The A.TR movement certificate is a status document that proves goods are in free circulation under the Customs Union between Türkiye and the European Union.
- Bill of lading — A bill of lading (B/L) is the document in which the carrier acknowledges that it has received the goods or loaded them on board.
- Bonded warehouse — A bonded warehouse (customs warehouse) is a place where goods that have not been released for free circulation are kept under customs supervision, without being subject to import duties or trade policy measures.
- CMR consignment note — The CMR is the consignment note issued in international road carriage; it evidences the contract of carriage and that the cargo was handed to the carrier in the stated condition.
- Customs clearance — Customs clearance is the process of placing goods under a customs procedure: registering the declaration, assessing duties and taxes, and completing any inspection.
- Delivery order (D/O) — A delivery order (D/O, called "ordino" in Turkish) is the document with which the carrier's agent tells the terminal or the warehouse that the goods may be delivered to the consignee once freight and arrival charges have been paid and the delivery condition in the bill of lading has been met.
- Demurrage and detention — Demurrage is the charge paid to the carrier when a container stays in the port or terminal yard beyond the free time the carrier allows.
- EUR.1 certificate — The EUR.1 movement certificate is a proof of origin that shows which country goods are considered to originate in under the preferential origin rules, so that a reduced or zero customs duty can be applied in the countries concerned.
- FCL and LCL — FCL is the shipping method in which a whole container is dedicated to a single shipper; LCL is the part-load method in which lots belonging to different shippers are consolidated in the same container.
- Freight — Freight is the amount paid to the carrier for moving cargo from a given point of departure to a given point of arrival.
- FTL and LTL — FTL (full truck load) means that the whole vehicle is assigned to the load of a single shipper; LTL (less than truck load), also called part load, means that the cargo of different shippers is consolidated on the same vehicle.
- HS code — An HS code is the numeric code that identifies goods in the Harmonized System, the international nomenclature run by the World Customs Organization; its first six digits are the same in every country that applies the system.
- Incoterms 2020 — Incoterms 2020 are the 11 delivery rules published by the International Chamber of Commerce (ICC) that define at which point cost, risk and customs obligations pass between buyer and seller.
- Letter of credit — A letter of credit (L/C) is a payment method in which the buyer's bank undertakes to pay if the seller presents documents that comply with the terms of the credit within the time allowed.
- Proforma invoice — A proforma invoice is a document in the nature of an offer that the seller gives the buyer before the sale is final, showing the description of the goods, the quantity, the unit price and the terms of delivery and payment.
- Revenue ton (R/T) — The revenue ton (R/T) is the charging unit on which freight is calculated in sea part-load (LCL) transport.
- Ro-Ro — Ro-Ro (roll-on/roll-off) is the form of sea transport in which wheeled cargo is driven onto the ship over a ramp, without being lifted by a crane, and driven off again at arrival.
- THC (terminal handling charge) — THC (terminal handling charge) is the handling fee charged for taking a container off the ship at the port terminal, moving it within the yard, stacking it and loading it on the ship.
- TIR carnet — The TIR carnet is a guaranteed international transit document for sealed road vehicles or containers under the TIR Convention.
- VGM (verified gross mass) — VGM (verified gross mass) is the total weight of a loaded container, including the cargo, packaging, pallets, dunnage and securing material and the tare of the container, verified by one of the two methods defined in SOLAS.
- Volumetric weight — Volumetric weight is the volume that a shipment occupies, converted into kilograms with the divisor of the transport mode.