3PL (Third-Party Logistics Provider)
An organization that manages and executes a particular logistics function, using
its own assets and resources, on behalf of another company.
4PL (Fourth-Party Logistics Provider)
The term "4PL" was introduced into the supply chain to convey
that deep informational technology skills and deeper analytical
skills were required to achieve supply
chain leadership. But the true evolution of the 4PL term is better defined
in context of the global marketplace where outsourced logistics creates more
of a partnership critical to success than a supplier/customer relationship.
Companies in the global marketplace are finding that supply chain engineered
logistics is not a commodity, and understand it is a vital means to boost their
cost savings, enhancing their cash flow and improving servicing levels for
getting their products to market.
Acceptance by the carrier of a portion of a joint rate or charge which is less
than the amount which it would receive for the service in the absence of
such joint rate or charge.
Acceptance of Goods
The process of receiving a consignment from a consignor, usually against the
issue of a receipt. As from this moment and on this place the carrier's responsibility
for the consignment begins.
Acknowledgement of receipt
A notification relating to the receipt of e.g. goods, messages and documents.
Covers raw material, work in progress, finished products that will be used
or sold within a given period without extra cost or loss. This term does
not cover the so-called reserve inventory.
CustomersÃ¢â?¬â?¢ orders and often also the allocation of items,
ingredients and/or raw materials to production or distribution.
Actual Voyage Number
A code for identification purposes of the voyage and vessel which actually
transports the container/cargo.
The value attributed to products, and services as the result of a particular
process (e.g. production process, storage, transport).
An agreement between the shipper and the carrier, concerning contacts between
those parties prior to tendering the consignment
cash or cash equivalents expressed in
a monetary amount given to a driver to cover expenses during a trip.
A charge paid by a carrier to an agent or to another carrier, which the delivering
carrier then collects from the consignee. Such charges are usually for agents'
forwarding fees and incidental expenses paid out of pocket for account of
the shipment by an agent or other carrier (aircargo).
An interline carrier that picks up cargo from the shipper and delivers it to
another carrier for shipment to the consignee.
A written piece of information e.g. about the status of the goods.
Advisory Committee for Innovation and Technology Transfer
See Strategic Programme for Innovation and Technology Transfer
At, near or towards the stern or rear of a vessel or an aircraft.
Fee payable by a shipowner or ship operator to a port agent.
Intelligent software that can be used in an exchange or auction to monitor
prices and conditions on behalf of buyer and supplier, and in some cases
to automatically execute trades.
The inventory for any group of items or products, involving multiple stock-keeping
units. Synonym: Aggregate Stock.
See Automatic Identification Manufacturers.
The process of assigning activities, costs or facilities e.g. space to a certain
A share of the capacity of a means of transport assigned to a certain party,
e.g. a carrier or an agent, for the purpose of the booking of cargo for a
At or in the middle of a vessel.
A vessel's outfit, such as rigging, anchor and life boats. The term used in
distribution/transport of clothing for a single piece of clothing, a garment.
Application service provider
An online outsourcer or hosting service for applications, letting Net market
makers rent instead of buying applications and services such as auctions,
exchanges and catalog aggregation. Many application vendors are moving to
a hosting model, but ASPs are often application-agnostic, plugging a feature
of one application into a marketplace when appropriate and using another
feature from another vendor elsewhere.
Approved Continuous Examination Program
An agreement between the owners of the equipment and the responsible governmental
body to allow continuous examination of the equipment (e.g. containers).
A network of national information centres of information technologies.
A code for the area where a container is situated.
Area of Repair
Geographical area where a container is under repair.
Area Off Hire Lease
Geographical area where a leased container becomes off hire.
Area Off Hire Sublease
Geographical area where a subleased container becomes off hire.
Area On Hire Lease
Geographical area where a leased container becomes on hire.
Area On Hire Sublease
Geographical area where a subleased container becomes on hire.
A notice sent by a carrier to a nominated notify party advising of the arrival
of a certain shipment.
Articles Dangereux de Route
An European agreement concerning the international carriage of dangerous goods
The stage of production in which components are put together into an end product
appropriate to the process concerned.
The transfer of certain rights from one party to another.
Let multiple buyers bid competitively for products from individual suppliers.
Suitable for hard-to-move goods such as used capital equipment (forklifts)
and surplus or excess inventory. Prices only move up, but buyers can buy
below list prices while sellers sell for more than a liquidator pays. Auctions
are becoming a feature of many Net markets, but some use auctions as their
primary market mechanism.
A methodical examination and review of a situation or condition (as within
a business enterprise) concluding with a detailed report of findings.
Proof by means of a signature or otherwise that a certain document or certain
data is of undisputed origin and genuine.
The commission to a certain person or body to act on behalf of another person
or body. The person or body can be authorized e.g. to issue Bills of Lading
or to collect freight.
Container equipped for the transportation of vehicles.
A means of identifying an item e.g. a product, parcel or transport unit by
a machine (device) entering the data automatically into a computer.
The most widely used technology at present is bar code; others include radio
frequency, magnetic stripes and optical character recognition.
Automatic Identification Manufacturers
International organization of companies and/or associations involved or interested
in automatic identification.
In marine insurance: a loss or damage to or in respect of goods or equipment.
The numerical result obtained by dividing the sum of two or more quantities
by the number of quantities.
In general average affairs average adjusters are entrusted with the task of
apportioning the loss and expenditure over the parties interested in the
maritime venture and to determine which expenses are to be regarded as average
or general average.
A central high speed network that connects smaller, independent networks. the
NSFnet is an example.
Legacy enterprise systems that handle order processing, inventory, and receivables
management for both buyers and suppliers. To deploy a digital trading platform,
companies must often integrate new technologies with these older systems,
which can include mainframe or ERP applications.
The return movement of a means of transport which has provided a transport
service in one direction.
Back letters are drawn up in addition to a contract in order to lay down rights
and/or obligations between both contracting parties, which, for some reason
cannot be included in the original contract. This expression is sometimes
used for letters of indemnity which are drawn up if the condition of the
goods loaded gives rise to remarks and, nevertheless, the shipper insists
upon receiving clean Bills of Lading. Letters of indemnity are only allowed
in very exceptional circumstances.
A customerÃ¢â?¬â?¢s order or commitment that is unfilled due to insufficient stock.
A method of obtaining a production schedule by working backwards from the required
due date, in order to predict the latest start date in consistent with meeting
that due date.
The quantity of goods still to be delivered, received, produced, issued, etc.,
for which the planned or agreed date has expired. The total number of customer
orders which have been received but not yet been shipped. Synonym: Open Order.
See Bunker Adjustment Factor.
The balespace of a vessel is the capacity of cargo spaces under deck (including
hatchways but excluding void spaces behind cargo battens and beams) expressed
in cubic metres or cubic feet.
Materials, solely carried to improve the trim and the stability of the vessel.
In vessels usually water is carried as ballast in tanks, specially designed
for that purpose.
For marine purposes the practice of always keeping more than one piece of cargo
on the quay or in the vessel ready for loading or discharging in order to
avoid delays and to obtain optimal use of the loading gear.
A method of encoding data for fast and accurate electronic readability. Bar
codes are a series of alternating bars and spaces printed or stamped on products,
labels, or other media, representing encoded information which can be read
by electronic readers, used to facilitate timely and accurate input of data
to a computer system. Bar codes represent letters and/or numbers and special
characters like +, /, -, ., etc.
Bare Boat Charter
A charter whereby the charterer leases the bare ship and appoints the master
and crew himself.
Flat bottomed inland cargo vessel for canals and rivers with or without own
propulsion for the purpose of transporting goods.
Special devices mounted on container doors to provide a watertight locking.
Synonym: Door lock bars.
Home depot of container or trailer.
Items of an inventory intended for issue against demand during the resupply
A collection of products or data which is treated as one entity with respect
to certain operations e.g. processing and production.
A definite quantity of some product manufactured or produced under conditions
that are presumed uniform and for production control purposes passing as
a unit through the same series of operations.
The production process whereby products/components are produced in batches
and where each separate batch consists of a number of the same products/components.
Members protruding from the inside walls of a vessel's hold or a (thermal)
container to keep away the cargo from the walls to provide an air passage.
They may be integral with the walls, fastened to the walls or added during
A vertical division of a vessel from stem to stern, used as a part of the indication
of a stowage place for containers. The numbers run from stem to stern; odd
numbers indicate a 20 foot position, even numbers indicate a 40 foot position.
A stowage plan that shows the locations of all the containers on the vessel.
Safe working practice code for solid bulk cargo.
It is the result of vertical forces acting on a ship as a result of local differences
between weight and buoyancy.
The total of these forces should be zero, otherwise change of draft will occur.
At sea the bending moment will change as a result of wave impact which than
periodically changes the buoyancy distribution.
Note: The maximum allowed bending moment of a vessel is restricted by the class
bureau to certain limits which are different under port and sea conditions.
Berth A location in a port where a vessel can be moored, often indicated
by a code or name.
Bilateral Transport Agreement
Agreement between two nations concerning their transport relation.
Bill of Health
The Bill of Health is the certificate issued by local medical authorities indicating
the general health conditions in the port of departure or in the ports of
call. The Bill of Health must have visa before departure by the Consul of
the country of destination.
When a vessel has free pratique, this means that the vessel has a clean Bill
of Health certifying that there are no questions of contagious disease and
that all quarantine regulations have been complied with, so that people may
embark and disembark.
Bill of Lading
Abbreviation: B/L, plural Bs/L.
A document which evidences a contract of carriage by sea. The document has the following functions:
At the moment 3 different models are used:
- A receipt for goods, signed duly by a authorized person on behalf of the carriers.
- A document of title to the goods described therein.
- Evidence of the terms and conditions of carriage agreed upon between the two parties.
B/L R 302: A modern document for either Combined Transport or Port to
Port shipments depending whether the relevant spaces for place of receipt and/or
place of delivery are indicated on the face of the document.
Synonyms: Combined Transport Bill of Lading or Multimodal Transport document.
B/L R 300: A classic marine Bill of Lading in which the
carrier is also responsible for the part of the transport actually
performed by himself.
Sea Waybill: A non-negotiable document, which can only be made out to a named
consignee. No surrender of the document by the consignee is required.
See: also Service Bill
Bill of Lading Clause
A particular article, stipulation or single proviso in a Bill of Lading. A
clause can be standard and can be preprinted on the B/L.
Bill of Material
A list of all parts, sub-assemblies and raw materials that constitute a particular
assembly, showing the quantity of each required item.
Bill of materials function
Ability to present predefined lists of items routinely required by buyers for
a specific purpose. Can greatly reduce the planning process. In vertical
markets, the challenge is developing a complete list of items that need to
be purchased for specific products or projects. PartMiner (electronic components)
uses this function to create a complete view of buyer activity, both purchases
that go to contract suppliers and purchases made on itsanonymous spot market.
Enables a market to combine a channel enabler approach with an exchange.
A road semi-trailer with retractable running gear to allow mounting on a pair
of rail boogies. Synonym: Road-Rail trailer A trailer which is able to carry
different types of standardized unit loads, (e.g. a chassis which is appropriate
for the carriage of one FEU or two TEU's).
See Bill of Lading.
Person who attends to the mooring and unmooring of vessels.
Post, fixed to a quay or a vessel, for securing mooring ropes.
See Container Bolster.
In good faith; without dishonesty, fraud or deceit.
The storage of certain goods under charge of customs viz. customs seal until
the import duties are paid or until the goods are taken out of the country.
Bonded warehouse (place where goods can be placed under bond). Bonded store
(place on a vessel where goods are placed behind seal until the time that
the vessel leaves the port/country again). Bonded goods (dutiable goods upon
which duties have not been paid, i.e. goods in transit or warehoused pending
The offering by a shipper of cargo for transport and the acceptance of the
offering by the carrier or his agent.
Booking Reference Number
The number assigned to a certain booking by the carrier or his agent.
A stage in a process that limits performance.
Note: Generally this is interpreted as a facility, function, department etc.
that impedes performance, for example a warehouse or distribution centre where
goods arrive at a faster rate than they can be transported or stored, thus
causing stock-piling at improper moments or in unwanted areas.
Special conical shaped devices inserted between a container and the permanent
floor on the deck of a vessel in order to avoid shifting of the container
during the voyage of this vessel.
Handling of containers with equipment attached to the four bottom corner fittings
Pallet with at least three fixed, removable or collapsible vertical sides.
To commence discharge.
Break Bulk Cargo
General cargo conventionally stowed as opposed to unitized, containerized and
Roll On-Roll Off cargo.
Synonym: Conventional Cargo.
The cargo space which is unavoidably lost when stowing cargo. The percentage
of wasted space depends upon e.g. the kind of cargo, the packing and the
Person who acts as an agent or intermediary in negotiating contracts.
Brussels Tariff Nomenclature
The old Customs Cooperation Council Nomenclature for the classification of
goods. Now replaced by the Harmonized System.
British Standards Institution Specification for freight containers.
See Brussels Tariff Nomenclature.
Describes online transactions between one business, institution, or government
agency and another. Differentiated from b2c (business-to-consumer) plays
such as Amazon.com, eBay, and Yahoo.
A quantity of goods or articles kept in store to safeguard against unforeseen
shortages or demands.
A large polythene liner that can be fitted to a 20'GP as an alternative to
Unpacked homogeneous cargo poured loose in a certain space of a vessel or container
e.g. oil and grain.
Single deck vessel designed to carry homogeneous unpacked dry cargoes such
as grain, iron ore and coal.
Shipping container designed for the carriage of free-flowing dry cargoes, which
are loaded through hatchways in the roof of the container and discharged
through hatchways at one end of the container.
Rings for lashing the cargo in containers.
(Tank) spaces on board a vessel to store fuel.
Upright partition dividing compartments on board a vessel. The functions of
- To increase the safety of a vessel by dividing it into watertight compartments
- To separate the engine room from the cargo holds
- To increase the transverse strength of a vessel
- To reduce the risk of spreading fire to other compartments
- A vertically mounted board to provide front wall protection against shifting
cargo and commonly seen on platform trailers (road cargo)
Synonym: Header Board.
Bunker Adjustment Factor
Adjustment applied by shipping lines or liner conferences to offset the effect
of fluctuations in the cost of bunkers.
Quantity of fuel on board a vessel.
French classification society.
Logistics within a business system.
The coordinating function of material management and physical distribution,
which executes the integral control of the goods flow.
Business Process Re-engineering
The fundamental analysis and radical redesign of everything: business processes
and management systems, job definitions, organizational structures and beliefs
and behaviors to achieve dramatic performance improvements to meet contemporary
requirements. Information technology (IT) is a key enabler in this process.
A 'buyer's market' is considered to exist when goods can easily be secured
and when the economic forces of business tend to cause goods to be priced
at the purchaser's estimate of value. In other words, a state of trade favourable
to the buyer, with relatively large supply and low prices.