- Glossary
Boost Your Supply
Chain Terminology
A
Air freight is the transportation of goods by aircraft and is commonly used for fast and time-sensitive shipments.
Affreightment is a shipping agreement where a carrier agrees to transport goods for a shipper under fixed terms.
Amazon Carrier Central is a platform that allows carriers to manage and schedule freight deliveries for Amazon.
Anti-dumping duties are additional taxes imposed on imported goods sold below fair market value.
Amazon peak season refers to high-demand periods when order volume and shipping activity increase.
An Amazon claim is a request filed to recover losses caused by damaged, missing, or incorrect orders.
This refers to inventory that is lost while stored or handled in Amazon fulfillment centers.
An Amazon warranty claim is submitted when a product fails within its warranty period.
An air waybill is a legal document that provides shipment details for air cargo transportation.
All-risk coverage is an insurance policy that protects goods against most types of damage or loss.
All-time order shows the total number of orders placed over the lifetime of a business.
AES is an electronic system used to submit export shipment data to customs authorities.
Amazon Address Book stores customer shipping addresses for faster order processing.
Amazon reimbursement is compensation paid to sellers for lost or damaged inventory.
This occurs when Amazon withdraws a previously issued reimbursement after review.
An inventory tracker helps sellers monitor stock levels across Amazon warehouses.
An airline terminal fee is charged for handling cargo at airport facilities.
Amazon Tracking ID is a unique number used to track shipments sent through Amazon.
AMS is a system that sends cargo information to customs before arrival.
AEO is a certification given to trusted businesses by customs authorities.
An Amazon FBA refund is issued when returned products meet refund requirements.
SAFE-T claims allow sellers to dispute refunds issued for damaged or incorrect returns.
B
A bill of lading is a legal shipping document that acts as a receipt and contract of carriage.
Backflushing is an inventory method where materials are recorded after production is completed.
A barge is a flat-bottom vessel used to transport cargo on rivers and inland waterways.
BAF is a surcharge applied by carriers to cover fuel price fluctuations.
Blank sailing occurs when a shipping line cancels a scheduled vessel voyage.
A bonded warehouse stores imported goods without immediate payment of customs duties.
Backhaul refers to the return trip of a transport vehicle carrying goods back to origin.
Bulk cargo includes unpackaged goods such as grain, coal, or oil shipped in large quantities.
A blind shipment hides shipper or receiver details to protect business confidentiality.
The bullwhip effect explains how small demand changes create larger supply chain disruptions.
BTI provides official customs classification for goods to determine duty rates.
BACAT is a transport system where barges are carried on catamaran vessels.
Berthing is the process of docking a ship at a port terminal.
A bobtail fee is charged when a truck moves without an attached trailer.
BOI officially defines the country of origin of imported goods.
C
CAIN is a cargo identification number used to track and manage shipments.
A container freight station is a facility used to consolidate or deconsolidate cargo.
Cartage refers to the local transportation of goods over short distances.
CETA is a trade agreement that reduces tariffs between Canada and the European Union.
A commercial invoice is a document that details the value and description of shipped goods.
A container is a large standardized box used to transport goods by sea, land, or rail.
Chargeable weight is the weight used to calculate shipping cost based on size or actual weight.
A customs broker assists importers and exporters with customs clearance procedures.
CIF is an Incoterm where the seller covers cost, insurance, and freight to destination port.
The Commerce Control List identifies items subject to export restrictions.
Composite delivery combines multiple shipments into a single delivery process.
CDS is a system used to submit customs declarations electronically.
Cross-docking is a logistics method where goods are transferred directly without storage.
Capital logistics refers to managing resources and transportation efficiently.
CBM is a unit used to measure the volume of cargo.
CRD is the date when cargo is ready for pickup or shipment.
A certificate of conformity confirms that goods meet regulatory standards.
A chassis is a frame used to transport shipping containers by truck.
The consignee is the person or company receiving the shipment.
A contract of carriage defines the responsibilities of the shipper and carrier.
Country of origin indicates where goods were manufactured or produced.
Customs clearance is the process of getting goods approved by customs authorities.
A customs bond guarantees payment of duties and compliance with regulations.
CFR contains rules issued by US federal agencies.
CYRC is a fee charged for receiving containers at a terminal.
Carrier liability refers to the carrier’s responsibility for cargo loss or damage.
CBP is a US agency responsible for border security and trade enforcement.
A carrier is a company that transports goods by land, sea, or air.
CPT is an Incoterm where the seller pays transport costs to a named destination.
CES is a facility where cargo is inspected by customs authorities.
A chassis fee is charged for the use of a container chassis.
Consolidation combines multiple shipments into one larger shipment.
The consignor is the party sending the goods.
Cargo insurance protects shipments against loss or damage.
This coverage defines the risks and losses included in cargo insurance.
Cradle-to-grave describes tracking a product through its entire lifecycle.
Contraband refers to goods that are illegal to import or export.
D
Data Access Point is a system that allows authorities to access shipment and trade data electronically.
Deconsolidation is the process of separating a consolidated shipment into individual shipments.
A deferment fee is charged when payment of customs duties or taxes is delayed.
A deferment fee is charged when payment of customs duties or taxes is delayed.
Detention refers to charges applied when containers or equipment are held beyond free time.
A drop fee is charged when a carrier drops a trailer at a location for later pickup.
Duty drawback is a refund of customs duties paid on imported goods that are later exported.
A delivery order authorizes the release of cargo to the consignee.
Drayage is the short-distance transportation of cargo, usually between ports and warehouses.
Devanning is the unloading of cargo from a shipping container.
Drop and pick is a process where a driver drops a trailer and picks up another one.
Duty is a tax imposed on imported or exported goods by customs authorities.
Drop off refers to delivering cargo at a designated location.
Demurrage is a fee charged when containers remain at the port beyond allowed free time.
Declared value coverage provides insurance based on the value declared for the shipment.
DDP is an Incoterm where the seller is responsible for all costs including duties and taxes.
DPU is an Incoterm where the seller delivers goods unloaded at a named destination.
Drop refers to leaving a trailer or shipment at a specific location.
Dropshipping is a fulfillment method where products are shipped directly from supplier to customer.
E
EBS is an additional charge applied to cover sudden increases in fuel costs.
An export declaration is a document that provides shipment details to customs authorities.
EDI is the electronic exchange of business documents between companies.
ECCN is a code used to classify items for export control purposes.
EIN is a unique number issued by the IRS to identify businesses for tax purposes.
Express shipping is a fast delivery service for urgent shipments.
Expedited freight is cargo transported with priority handling and reduced transit time.
EX-A refers to goods that are available at a seller’s premises before shipment.
EOI is the optimal time interval between inventory orders to reduce costs.
EXW is an Incoterm where the buyer takes responsibility once goods leave the seller’s premises.
EORI is a registration number required for businesses trading goods internationally.
Export subsidies are government incentives provided to support exporters.
F
FBA is a service where Amazon stores, packs, and ships products on behalf of sellers.
FBA returns are products sent back to Amazon fulfillment centers by customers.
FBA returns reports provide data on returned products and reasons for returns.
FCL refers to a shipment that fills an entire container for one customer.
FAK is a freight rate that applies to multiple types of cargo.
FTA is an agreement between countries to reduce or eliminate trade barriers.
5PL manages and optimizes entire supply chains using advanced technology.
A forklift is a vehicle used to lift and move heavy cargo in warehouses.
FSC is an additional charge added to cover changes in fuel prices.
FBA ID is a unique identifier assigned to Amazon fulfillment shipments.
FDA is a US agency that regulates food, drugs, and medical products.
FTL refers to a shipment that occupies an entire truck.
FIATA is an international organization representing freight forwarders.
A freight broker connects shippers with carriers to arrange transportation.
Freight class categorizes cargo based on weight, density, and handling needs.
Fumigation is a treatment process used to eliminate pests in cargo.
FTZ is a designated area where goods can be stored without paying duties immediately.
FCA is an Incoterm where the seller delivers goods to a carrier chosen by the buyer.
FOB is an Incoterm where the seller’s responsibility ends once goods are loaded on a vessel.
FMC is a US agency that regulates ocean transportation.
A flexibag is a flexible container used to transport bulk liquids.
A freight forwarder arranges shipping and logistics services for exporters and importers.
Freight insurance protects shipments against loss, damage, or theft.
First sale valuation allows customs value to be based on the first sale in a supply chain.
4PL manages logistics providers and oversees the entire supply chain strategy.
G
FBA returns are products sent back to Amazon fulfillment centers by customers.
GRI is an increase in shipping rates announced by carriers, usually on specific trade routes.
General order refers to cargo that is held by customs when it is not cleared on time.
Gross weight is the total weight of cargo including packaging and containers.
Golden Week is a major holiday period in China that causes factory and shipping delays.
H
HMF is a fee charged on imported cargo to support port maintenance in the US.
HS and HTS codes are standardized classification numbers used to identify traded goods.
A high cube container is taller than standard containers and offers extra cargo space.
K
A known shipper is a verified sender approved by authorities for secure cargo transportation.
L
LCL is a shipment that does not fill a full container and is combined with other cargo.
A letter of indemnity is a legal document that protects a party against potential losses.
Live unload refers to unloading cargo immediately upon truck arrival without waiting.
Lumpsum freight is a fixed shipping charge regardless of cargo weight or volume.
LTL is a shipment that shares truck space with other shipments.
Lean manufacturing is a production method focused on reducing waste and improving efficiency.
A liftgate is a hydraulic platform used to load or unload cargo from trucks.
Last free day is the final day cargo can stay at a port without incurring storage charges.
A letter of credit is a bank-issued document guaranteeing payment to the seller.
A liftgate fee is charged when special liftgate equipment is required for delivery.
M
MSDS is a document that provides information about handling, storage, and hazards of chemical products.
MPF is a fee charged by US Customs for processing imported goods.
MMSI is a unique identification number assigned to ships for maritime communication and tracking.
N
An NVOCC is a logistics company that arranges ocean shipments without owning vessels.
Nesting is the practice of stacking similar products together to save space during shipping.
A notify party is a person or company informed when a shipment arrives at its destination.
NOR is a formal notice that a vessel has arrived and is ready for loading or unloading.
NRA is a freight rate agreed upon between a shipper and carrier outside standard tariffs.
O
Ocean freight is the transportation of goods by sea using cargo ships.
Outbound logistics covers the storage, handling, and delivery of goods to customers.
Origin charge includes costs incurred at the shipment’s starting port or warehouse.
OBL is the original legal shipping document required to release cargo.
P
Payload is the maximum weight a vehicle or container can safely carry.
POA is a legal document that allows a customs broker to act on behalf of an importer.
A pallet is a flat structure used to stack and transport goods easily.
PMS allows importers to pay customs duties once a month instead of per shipment.
Prior disclosure is when an importer voluntarily reports errors to customs to avoid penalties.
PSS is an extra charge applied during high shipping demand periods.
A pallet exchange fee is charged when pallets are not returned or swapped.
Perishable goods are items that can spoil quickly and require special handling.
Port filings are required documents submitted to authorities before cargo arrival.
P&I clubs provide insurance coverage for ship owners against third-party liabilities.
A packing list details how goods are packed and helps with customs clearance.
Pallet wide containers are designed to fit pallets more efficiently.
Pier Pass fee is charged for using port terminals during peak hours.
Pre-pull is moving a container from port to storage before delivery.
A pro forma invoice is a preliminary bill used for customs and buyer reference.
Q
Quality control ensures products meet required standards before shipment.
A quotation is a formal price offer for logistics or shipping services.
R
Related parties are businesses connected through ownership or control.
Rules of origin determine where a product is considered manufactured.
Repositioning charges apply when containers are moved to different locations.
This fee is charged for delivering shipments to residential addresses.
Reverse logistics manages product returns from customers to sellers.
Rolled cargo is shipment delayed to a later vessel due to space issues.
A quotation is a formal price offer for logistics or shipping services.
s
Seller Central is Amazon’s platform for managing seller accounts and orders.
2PL providers offer transportation services like shipping lines or carriers.
This is the location from where Amazon orders are shipped.
A split shipment is divided into multiple deliveries instead of one.
A spreader is equipment used to lift containers safely.
A surcharge is an additional fee added to base shipping costs.
A sea waybill is a non-negotiable document used for faster cargo release.
Storage charges apply when cargo stays at port or warehouse beyond free time.
A shipping address is the final delivery location of goods.
SOF records vessel activity times during port operations.
SKU is a unique code used to track inventory.
A shipping order authorizes the movement of cargo.
A shipping agent handles vessel and cargo operations at ports.
A stop-off fee is charged for additional delivery stops.
Ship delays occur when vessels arrive later than scheduled.
T
A tariff code classifies goods for customs duty calculation.
TEU is a standard unit for measuring container capacity.
Tail gate exam is a partial customs inspection of cargo.
Transloading moves cargo from one transport mode to another.
TMF is a fee charged to reduce port congestion.
Tariff engineering optimizes product design to reduce duties.
A transtainer is a crane used to move containers in ports.
Trade compliance ensures adherence to international trade laws.
Trade remedies protect domestic industries from unfair imports.
Tariff quotas limit the quantity of goods allowed at reduced duty rates.
3PL providers manage warehousing, transport, and fulfillment.
Track and trace allows real-time shipment monitoring.
This fee applies when trucks wait longer than allowed time.
U
ULD is a container used to load cargo onto aircraft.
This tool estimates import duties and taxes.
The ultimate consignee is the final receiver of goods.
UPS fees include shipping and service-related charges.
V
A VAT number is used to track tax payments on goods.
A valuation challenge disputes the declared value of goods.
W
Wharfage is a fee charged for using port docks.
X
X-ray exam is a non-intrusive customs inspection method.
Y
Yard storage refers to keeping containers in port yards.
Z
Zone rate is shipping pricing based on distance zones.