4PL Glossary

Advance Commercial Information — a pre-arrival cargo declaration required by Canadian customs. Exporters or their agents must submit shipment details electronically before goods arrive at a Canadian port of entry.

A duty or freight charge calculated as a percentage of the declared value of the goods, rather than by weight or volume.

European Agreement concerning the International Carriage of Dangerous Goods by Inland Waterways. It sets classification, packaging, and labelling rules for hazardous cargo on rivers and canals across Europe.

European Agreement concerning the International Carriage of Dangerous Goods by Road. Governs how hazardous materials must be classified, packaged, labelled, and documented for road transport across Europe.

A customs status granted to businesses that meet security and compliance standards, giving them streamlined customs procedures, fewer inspections, and priority processing at borders.

A requirement to submit cargo data to customs authorities before a vessel arrives, used by countries including Japan. Similar in purpose to ACI and ENS.

A document sent by the shipping line or freight forwarder to the consignee advising that a shipment has arrived or is due to arrive, typically including charges due and collection instructions.

The air freight equivalent of a bill of lading — a non-negotiable receipt for goods and contract of carriage issued by the airline or its agent. Unlike a bill of lading, it is not a document of title.

A surcharge applied by carriers to cover fluctuations in fuel (bunker) costs. It rises and falls with global oil prices.

Weight (usually seawater) carried by a vessel when it is sailing without cargo, used to maintain stability and safe trim. A ship "in ballast" is travelling empty.

A chartering arrangement where the shipowner provides only the vessel. The charterer supplies the crew, fuel, insurance, and all operating costs — effectively running the ship as if it were their own.

The principal document in sea freight. It serves three roles: a receipt confirming the carrier has received the goods, a contract of carriage, and — when issued as an original — a document of title that can transfer ownership of the goods.

A train made up of wagons all travelling to the same destination, run as a single dedicated unit rather than being split up and re-marshalled at yards along the route.

A customs-approved storage facility where imported goods can be held without payment of duty or VAT until they are released for sale, re-exported, or further processed.

A confirmed reservation for space on a vessel, aircraft, or vehicle for the transport of specified goods on a given date and route.

Cargo that is shipped as individual pieces (crates, drums, bags, pallets) rather than inside a container. Typically used for oversized, heavy, or project cargo that doesn't fit standard containers.

An intermediary who arranges the purchase or sale of transport services, insurance, or customs clearance on behalf of a client, without taking title to the goods.

A facility authorised by HM Revenue & Customs to receive and store goods that are under customs control, pending clearance, examination, or onward transit.

A US Customs and Border Protection programme where importers, carriers, and logistics providers commit to supply chain security measures in exchange for expedited processing.

The transport of goods or passengers between two points within the same country by a carrier registered in a different country. Most nations restrict or regulate cabotage to protect domestic transport operators.

A surcharge applied by carriers to offset exchange-rate fluctuations between the currency of the freight rate and the carrier's base currency.

A comprehensive list of all goods carried on a vessel, aircraft, or vehicle for a particular voyage, including consignee details, marks, and quantities. Required by customs at ports of loading and discharge.

The standard unit of volume measurement in freight. Calculated as length x width x height in metres. Used to determine volumetric weight and freight charges.

A document certifying the country in which goods were manufactured or produced. Required by customs authorities to determine tariff rates and eligibility for preferential trade agreements.

A facility where LCL (less than container load) shipments are consolidated into, or deconsolidated from, full containers.

The weight used to calculate air freight charges — whichever is higher between the actual gross weight and the volumetric (dimensional) weight of the shipment.

An Incoterm where the seller pays the costs, insurance, and freight to bring goods to the named port of destination. Risk transfers to the buyer once the goods are loaded on board at the port of origin.

Convention on the Contract for the International Carriage of Goods by Road. Also refers to the CMR consignment note — the standard transport document for international road freight in Europe.

The transport of shipping containers directly on flatbed rail wagons — the standard method for moving containers by intermodal rail.

The party named in the transport documents as the receiver of the goods at the destination.

The party who sends or ships the goods — also referred to as the shipper.

Combining multiple smaller shipments from different shippers into a single container or unit for transport, reducing per-unit shipping costs. The reverse process is deconsolidation.

A standardised, reusable steel box used to transport goods by sea, road, and rail. Standard sizes are 20ft (TEU) and 40ft (FEU), with variants including high-cube, open-top, flat-rack, and refrigerated (reefer).

A logistics practice where incoming goods are unloaded from inbound vehicles and loaded directly onto outbound vehicles with minimal or no storage time, reducing warehousing costs and transit times.

The process of completing all documentation and paying all duties and taxes required by customs authorities to allow goods to enter or leave a country.

The area at a port or terminal where full containers are stored while awaiting loading, collection, or onward transport.

A formal document completed by the shipper declaring that hazardous cargo has been correctly classified, packaged, marked, and labelled in accordance with IATA (air) or IMDG (sea) regulations.

An Incoterm where the seller delivers goods, ready for unloading, at the named destination. The seller bears all risks and costs of the journey up to that point; the buyer handles import clearance and unloading.

An Incoterm placing maximum responsibility on the seller, who delivers goods to the named destination with import duties and taxes already paid, ready for the buyer to unload.

A charge imposed by a carrier when a shipper books container or vessel space but fails to use it. Compensates the carrier for revenue lost on the unused capacity.

A charge levied when a container remains at the port or terminal beyond the free days allowed after discharge. Encourages timely collection and keeps terminal capacity flowing.

A charge applied when a container is held by the shipper or consignee outside the port (at their premises or a depot) beyond the free period, delaying its return to the carrier.

A transport service covering the entire journey from the shipper's premises to the consignee's premises, including all intermediate handling, customs clearance, and last-mile delivery.

The short-distance transport of containers, typically between a port terminal and a nearby warehouse, rail yard, or distribution centre.

A service where the carrier leaves a trailer at the shipper's or receiver's premises for loading or unloading at their convenience, then returns to collect it. Reduces waiting time and costs.

An inland intermodal terminal connected to a seaport by road or rail, where containers can be handled, stored, and customs-cleared as if they were at the coastal port.

Items that have both civilian and military applications (e.g. certain chemicals, electronics, software). Their export is controlled under EU and UK regulations, requiring licences for certain destinations.

A mandatory cargo tracking document required by several West and Central African countries before goods can be discharged at the destination port.

The computer-to-computer exchange of standard business documents (purchase orders, invoices, shipping notices) between trading partners, replacing paper-based communication.

A pre-arrival security filing required by EU customs for all goods entering the EU customs territory by sea. Must be submitted before loading at the port of origin.

A unique identification number required for any business or person importing to or exporting from the UK or EU. Essential for customs declarations post-Brexit.

The projected date and time a vessel, aircraft, or vehicle is expected to reach its destination.

The projected date and time a vessel, aircraft, or vehicle is expected to leave its origin.

An Incoterm where the seller makes goods available at their premises. The buyer bears all costs and risks of transport from that point onward, including export clearance.

A shipment that fills (or is charged as) one complete container, booked exclusively for a single shipper's goods.

A smaller vessel that transports containers between a regional port and a main hub port, where cargo is transferred to or from larger ocean-going vessels.

A unit of measurement based on a standard 40ft container. One FEU equals two TEUs.

The global body representing freight forwarding and logistics firms. Issues standardised documents including the FIATA Bill of Lading (FBL).

A shipping term indicating that the cargo owner (not the carrier) is responsible for the costs of loading and discharging the goods at port.

A container with no sides or roof, consisting of a floor and two foldable end walls. Used for oversized or heavy cargo such as machinery, vehicles, and construction equipment.

An Incoterm where the seller delivers goods on board the vessel at the named port of shipment. Risk transfers from seller to buyer once the goods are loaded.

A company that organises the shipment of goods on behalf of importers and exporters — arranging carriers, documentation, customs clearance, insurance, and warehousing. A 3PL orchestrates execution; a 4PL like KTL manages the entire supply chain strategy.

A road freight shipment that occupies an entire truck or trailer, dedicated to a single consignment.

The treatment of cargo, containers, or packaging with chemical gases to eliminate pests, insects, or fungi. Often required by importing countries' biosecurity regulations, particularly for wood packaging (ISPM 15).

A large overhead crane used in ports and rail terminals to lift containers on and off vessels, trucks, and rail wagons. Ship-to-shore gantry cranes (STS) are the primary equipment for loading and discharging container ships.

The process of a container entering (gate in) or leaving (gate out) a port or terminal, recorded for tracking, billing, and security purposes.

A principle of maritime law where all parties in a sea voyage proportionally share losses resulting from voluntary sacrifice of cargo or expenditure made to save the vessel and remaining cargo from peril.

The total weight of goods including all packaging, pallets, and the container itself. Distinguished from net weight (goods only) and tare weight (container only).

The consolidation of several compatible LCL shipments from different shippers into a single container for shared transport, splitting cost proportionally. Common in European road freight as well as sea freight.

An international convention (1924) establishing minimum liabilities for sea carriers in respect of loss or damage to cargo. Largely superseded by the Hague-Visby Rules, which increased carrier liability limits.

An update to the Hague Rules (1968) that governs carrier liability for cargo carried under a bill of lading on international voyages. Widely adopted, including in UK law via the Carriage of Goods by Sea Act 1971.

Charges levied by a port authority on vessels and/or cargo for the use of harbour facilities, including berths, navigation aids, and pilotage areas.

An internationally standardised system of names and numbers to classify traded products. Used by customs authorities worldwide to determine tariff rates and compile trade statistics. The first six digits are universal; additional digits vary by country.

The inland transport of goods by road, typically referring to the movement of containers between ports, depots, and customer premises.

A container that is one foot taller than the standard height (9'6" instead of 8'6"), providing approximately 13% more volume. Available in 40ft and 45ft sizes.

Issued by a freight forwarder to an individual shipper, covering their specific portion of a consolidated air shipment. The forwarder holds the airline's Master Air Waybill for the consolidation as a whole.

A bill of lading issued by a freight forwarder (rather than the ocean carrier) to the shipper. It covers the forwarder's responsibility for the goods, while the forwarder holds the carrier's Master Bill of Lading.

The trade body for the world's airlines, which sets standards for air cargo documentation, dangerous goods handling, and agent accreditation.

The international standard for the safe transport of dangerous goods by sea, covering classification, packaging, marking, labelling, documentation, and stowage.

The United Nations agency responsible for the safety and security of shipping and the prevention of marine and atmospheric pollution by ships.

A regulation from the International Maritime Organization that caps the sulphur content of fuel used by ships at 0.50% (down from 3.50%), effective from 1 January 2020. It drives the use of low-sulphur fuel, scrubbers, or LNG propulsion.

An additional freight charge applied by carriers to recover the increased costs of complying with IMO environmental regulations, particularly IMO 2020 low-sulphur fuel requirements.

A set of 11 standardised trade terms published by the International Chamber of Commerce (ICC) that define the responsibilities of buyers and sellers in international trade, covering costs, risks, and insurance. Current edition: Incoterms 2020.

The movement of goods using two or more modes of transport (sea, road, rail, air) under a single contract, with the cargo remaining in the same container or unit throughout.

A regulation requiring wood packaging materials used in international trade to be heat-treated or fumigated and stamped to prevent the spread of pests.

A status granted to a business allowing it to submit air cargo without additional security screening at the point of tender, based on demonstrated supply chain security measures.

The methods used to restrain and stabilise cargo inside a container, on a flat rack, or on a vessel's deck to prevent movement or damage during transport. Includes straps, chains, dunnage, and blocking.

The final leg of the supply chain, from a distribution hub or depot to the end customer's door. Often the most expensive and complex part of the delivery process.

The agreed period allowed in a charter party for loading or discharging cargo at port. If exceeded, the charterer pays demurrage; if completed early, the shipowner may pay despatch.

A shipment that does not fill an entire container. LCL cargo is consolidated with other shippers' goods at a CFS and charged by volume (CBM) or weight.

A fourth-party logistics provider that manages and integrates a client's entire supply chain, coordinating multiple 3PLs, carriers, and technology platforms on the client's behalf. This is KTL's core model.

A financial instrument issued by a bank guaranteeing that a seller will receive payment provided they present the correct shipping documents within a specified timeframe. Widely used in international trade.

A shipping service that operates on a fixed schedule along a set route, calling at predetermined ports. Contrasted with tramp shipping, which sails wherever cargo is available.

A low-loading, heavy-duty roll trailer used in ro-ro (roll-on/roll-off) shipping for transporting oversized or extremely heavy cargo such as transformers, generators, and large machinery.

A detailed list of all cargo carried on a specific vessel, aircraft, or vehicle for a particular voyage. Used by customs authorities and carriers for control, clearance, and statistical purposes.

Issued by the airline to the freight forwarder, covering a consolidated air shipment as a whole. The forwarder in turn issues individual House Air Waybills to each shipper within the consolidation.

A bill of lading issued by the ocean carrier to the freight forwarder (as opposed to the House Bill of Lading issued by the forwarder to the shipper). Represents the actual contract of carriage with the shipping line.

Similar to intermodal, the carriage of goods by at least two different modes of transport under a single contract. The multimodal transport operator accepts responsibility for the entire journey.

The EU and UK electronic system for managing and tracking the movement of goods under customs transit procedures, replacing paper-based T-forms.

A refrigerated container shipped with the cooling unit switched off, used simply as a standard dry container. Sometimes called a "non-working reefer" or used when reefer capacity exceeds demand.

A company that provides ocean transport services and issues its own bills of lading but does not own or operate vessels. It buys space from shipping lines and consolidates cargo.

The transport of goods from the port of discharge or arrival airport to the final destination, following the main ocean or air leg of the journey.

A container without a solid roof, covered instead by a tarpaulin or removable panels. Used for tall or heavy cargo that must be loaded from above by crane.

Cargo that exceeds the standard dimensions of a shipping container in height, width, or length. OOG cargo requires special containers (flat racks, open tops) or breakbulk stowage.

A report prepared at the destination documenting the condition, quantity, and any discrepancies in cargo upon discharge or delivery. Used to support insurance claims for shortage or damage.

A detailed document prepared by the shipper listing the contents, weight, and dimensions of each package in a consignment. Used by customs, carriers, and the consignee for verification.

A container or trailer designed with internal dimensions wide enough to accommodate two standard Euro pallets (800mm x 1200mm) side by side, maximising load efficiency for European freight.

In marine insurance, a partial loss or damage to cargo or vessel that is borne by the owner of the affected property alone, as opposed to General Average where all parties share the loss.

A daily charge for the use of a carrier's container or equipment. Typically applied when a container is not returned within the agreed free period.

Proof of Delivery: documentation confirming that goods have been delivered to the consignee, typically including the recipient's signature, date, and time of delivery. Also used as an abbreviation for Port of Discharge.

The port where goods are loaded onto a vessel for shipment.

The inland transport of goods from the shipper's premises to the port of loading or airport, before the main ocean or air leg of the journey.

The enforced isolation or inspection of goods, animals, or plants at a port of entry to prevent the spread of pests, diseases, or contaminants. Common in trade with Australia, New Zealand, and other countries with strict biosecurity laws.

A charge levied for cargo or containers occupying space on the quay (wharf) beyond the free storage period allowed by the port. Incentivises timely collection.

A length of track separate from the through line, used for loading, unloading, or storing wagons without blocking the main line.

The movement of goods by rail, often used for long-distance overland routes or intermodal connections between ports and inland distribution hubs. Increasingly important for UK-Europe and Asia-Europe corridors.

A mobile container-handling vehicle used in ports and depots to lift and stack containers. More flexible and less expensive than gantry cranes, commonly used in smaller terminals.

A temperature-controlled container used to transport perishable goods (food, pharmaceuticals, chemicals) at a specific temperature. Powered by an integral refrigeration unit and connected to a power supply on the vessel or at the terminal.

A business — often a freight forwarder — authorised by the relevant aviation authority to apply security controls to air cargo on behalf of airlines.

A type of vessel designed to carry wheeled cargo (trucks, trailers, cars, rail wagons) that is driven on and off the ship via built-in ramps.

A clause on a bill of lading indicating that the carrier has not verified the contents, quantity, or condition of the cargo and is relying on the shipper's declaration.

Similar to STB — a bill of lading notation meaning the carrier accepts the shipper's description of the container's contents without independent verification.

The security process of examining air cargo — by X-ray, physical search, or other approved means — to detect prohibited items before it is loaded onto an aircraft.

A tamper-evident device applied to a container door to ensure it has not been opened during transit. High-security seals comply with ISO 17712 standards.

The party who sends the goods — also called the consignor. The shipper is typically named on the bill of lading as the party from whom the carrier receives the cargo.

A situation where fewer goods are delivered than stated on the bill of lading or packing list. Typically results in a discrepancy report and may lead to an insurance claim.

A contract between a service provider and client that defines measurable performance standards for delivery times, accuracy, availability, and other key metrics.

The process of loading goods into a container. The reverse — unloading — is called stripping or destuffing.

The ability to track goods, components, and information across the entire supply chain from origin to destination in real time. A core capability in 4PL management.

An additional fee applied on top of the base freight rate to cover specific costs such as fuel (BAF), currency fluctuations (CAF), congestion, peak season demand, or regulatory compliance.

A customs transit document used in Europe allowing goods to move between EU member states (or between the EU and EFTA countries) without payment of duties or taxes at each border, under customs supervision.

A transit document for goods that already have EU customs status (i.e. EU-origin or duty-paid goods) moving between EU member states. Distinguished from T1, which covers non-EU goods.

The weight of an empty container, vehicle, or packaging material. Subtracted from the gross weight to determine the net weight of the goods.

A schedule of rates, rules, and regulations applied by a carrier, port, or government. In customs, it refers to the duty rate applied to imported goods based on their HS code classification.

The standard unit for measuring container capacity, based on a 20ft container. A 40ft container equals 2 TEU. Port throughput and vessel capacity are measured in TEU.

A provider that handles logistics operations (warehousing, transport, fulfilment) on behalf of a client. Distinguished from 4PL, which manages the entire supply chain including multiple 3PLs.

A single bill of lading covering the entire journey of goods from origin to final destination, even when multiple carriers or transport modes are involved.

Software that plans, executes, and optimises the movement of goods, including carrier selection, route planning, rate management, and shipment tracking.

The transfer of cargo from one vessel or vehicle to another at an intermediate point during its journey to the final destination.

The total time taken for goods to travel from the point of origin to the point of destination, including any intermediate stops or transhipments.

One of the largest classes of oil tanker, with a capacity exceeding 320,000 DWT (deadweight tonnage). Primarily used for long-haul crude oil transport.

A container or pallet used to load cargo into an aircraft's hold, sized and shaped to fit the specific aircraft type efficiently.

A four-digit identification number assigned by the United Nations to hazardous substances and articles for transport purposes. Used to identify dangerous goods regardless of language.

An individual or company that assesses risk and determines the terms and premiums for insurance coverage of goods in transit.

Cargo that has been grouped into a single unit — on a pallet, in a container, or in a ULD (unit load device for air freight) — for efficient handling and transport.

Services beyond basic transport and warehousing that add value to the supply chain — including labelling, kitting, assembly, quality inspection, returns management, and packaging customisation.

A clause indicating that information (such as a tariff rate or surcharge) was accurate at the time the goods were shipped and may be subject to change.

The SOLAS regulation requiring the shipper to provide a certified weight of a packed container before it can be loaded onto a vessel. Can be obtained by weighing the packed container or by calculating the sum of all contents plus the container tare weight.

A rail freight shipment that doesn't fill an entire train, combined with other wagonload traffic and reclassified at marshalling yards en route to its destination.

Charges incurred when a vehicle, vessel, or crew is kept waiting beyond the agreed time for loading or unloading. Also called waiting time charges or standage.

The voluntary relinquishment of a charge, requirement, or right — for example, a carrier waiving demurrage charges as a goodwill gesture, or customs waiving certain documentation requirements.

Software that controls and tracks the receipt, storage, picking, packing, and dispatch of goods within a warehouse. Integrates with TMS and ERP systems for end-to-end visibility.

A transport document that serves as a receipt for goods and evidence of the contract of carriage, but — unlike a bill of lading — is not a document of title and cannot transfer ownership.

Non-intrusive scanning of containers, cargo, and vehicles using X-ray or gamma-ray technology to detect contraband, weapons, or undeclared goods without physically opening the shipment.