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Knowledge & Reference

Logistics Glossary

Over 50 technical terms from freight forwarding, freight and transport – clearly explained.

A

Consignor

Person or company that submits a shipment and places the transport order. The consignor is the contracting party of the freight forwarder and is liable for correct details regarding weight, dimensions and contents.

ADR Accord Dangereux Routier

European agreement on the international carriage of dangerous goods by road. Mandatory for all hazardous goods transports in Europe – regulates packaging, labelling, vehicle equipment and driver training.

Book hazardous goods transport

Advice Note

Pre-notification of an upcoming delivery, often by email or EDI (Electronic Data Interchange). Enables the recipient to prepare for goods receipt and plan warehouse and personnel capacities.

AWB Air Waybill

Air freight bill; central document in air freight that combines transport contract and receipt of goods. Issued by the carrier or freight forwarder, not transferable and not a title document (unlike a bill of lading).

B

B2B Logistics

Logistics services between businesses. Unlike B2C shipments, often larger quantities, pallets or part loads with fixed delivery windows, dock handling and waybill documentation.

Co-loading

Adding small freight quantities to a not fully loaded vehicle. More cost-effective than a direct transport – ideal for shipments without strict time windows that can be combined with other goods on the same route.

Shipping Documents

All documents accompanying a shipment during transport: delivery note, waybill (CMR), customs declaration, hazardous goods documentation or commercial invoice. Errors or missing documents can cause delays or customs holds.

C

CMR Convention relative au contrat de transport international de marchandises par route

International road consignment note for cross-border goods transport in Europe. Governs liability, claims deadlines and rights of all parties – mandatory for international road transport in over 50 contracting states.

Cross-Docking

Handling method where goods are transferred directly from incoming to outgoing transports without storage. Minimises warehousing costs and throughput times – particularly efficient in groupage and distribution traffic.

D

DAP Delivered at Place

Incoterm: The seller bears all costs and risks to the agreed place of delivery, without assuming clearance. The buyer is responsible for import, customs duties and taxes in the country of destination.

DDP Delivered Duty Paid

Incoterm with the highest seller obligation: including customs clearance and all import charges at the place of destination. The seller bears full risk until handover – maximum service for the buyer.

Direct Transport

Transport without an intermediate stop or transshipment directly from the collection point to the recipient. Fastest option for time-critical goods, sensitive products or shipments with a fixed delivery date (just-in-time).

Request direct transport

Disposition

Planning, control and coordination of journeys, vehicles and transport capacities. The dispatcher optimises routes, assigns orders to drivers and responds to short-notice changes such as disruptions or additional orders.

E

ETA Estimated Time of Arrival

Expected arrival time of a shipment at the destination. Calculated based on route, traffic and current vehicle position – updated in real time in modern TMS systems.

ETD Estimated Time of Departure

Expected departure time of a shipment. Relevant for scheduling at the recipient, especially for time-bound delivery windows or just-in-time deliveries.

EXW Ex Works

Incoterm: The buyer takes over the goods directly at the seller's premises and bears all costs and risks from that point – including loading costs, freight, insurance, customs clearance and import charges.

Express Shipping

Rush delivery with a guaranteed delivery time, typically within 24 hours. For time-critical shipments such as spare parts, production components or urgent documents.

Book express transport

F

FCA Free Carrier

Incoterm: Seller delivers the cleared goods to a carrier nominated by the buyer at the agreed place. From handover, the buyer bears costs and risk – more flexible than EXW, suitable for all modes of transport.

FCL Full Container Load

Booking of an entire sea freight container for a single shipment. More economical than LCL from approx. 15 cubic metres – no co-loading, direct transport, lower risk of damage.

Waybill

Legal document evidencing the transport contract between consignor and freight forwarder. In road transport: CMR (international) or national consignment note. Contains details of goods, addresses, weight and liability conditions.

Freight Space

Available transport or loading capacity of a vehicle or means of transport. Stated in loading metres (LDM), cubic metres or tonnes – depending on mode of transport and form of transport.

FTL Full Truck Load

Complete utilisation of a truck by a single shipment. Economical for large quantities, faster than LTL via direct route – no transshipment, no risk of co-loading delays.

Book full truck load

G

Hazardous Goods

Substances and articles that require special safety regulations due to their properties (e.g. ADR, IATA, IMDG). Divided into nine classes – from explosives (Class 1) to miscellaneous dangerous substances (Class 9).

Hazardous goods transport

Commercial Road Haulage

Commercial carriage of goods by motor vehicles. Subject to licensing requirements (EU Community licence or national goods haulage permit) as well as cabotage regulations for foreign carriers.

H

Hub

Central transshipment point in a logistics network where shipments from various sources are sorted and forwarded. Enables efficient bundling of freight flows and high network density.

Hub-and-Spoke

Logistics concept with a central hub and radial connections (spokes) to regional distribution points. Standard model of parcel services and line freight forwarders – maximum network efficiency through bundling at the hub.

I

Incoterms International Commercial Terms

Standardised delivery conditions of the ICC (International Chamber of Commerce) for international trade. Govern the transfer of risk and costs between buyer and seller – currently valid: Incoterms 2020 with eleven clauses (EXW, FCA, CPT, CIP, DAP, DPU, DDP, FAS, FOB, CFR, CIF).

J

JIT Just-in-Time

Delivery concept: goods arrive exactly at the time of need, without prior stock. Minimises warehousing costs and tied-up capital – requires high transport reliability and precise time windows. Widely used in the automotive industry.

Book time-critical shipment

K

CEP Services

Courier, express and parcel services for shipments up to approx. 31.5 kg. CEP services offer standardised, trackable B2C and B2B delivery with fixed transit times – providers include DHL, DPD, UPS, FedEx.

Bill of Lading B/L

Sea freight document with a triple function: transport contract, receipt of goods and title document (negotiable instrument). The original bill of lading is required to receive the goods – loss can block the entire delivery.

Consolidation

Combining multiple part loads from different consignors into a more economical overall shipment (LTL/LCL). Lower freight rates through bundling, but longer transit times due to groupage transshipment.

Request part load

Fuel Surcharge

Price component covering fluctuating fuel costs. Calculated variably – usually as a percentage surcharge on the net freight, adjusted to current diesel price indices. Shown separately on freight quotes.

L

Loading Metre LDM

Unit of measurement for loading space in road freight transport. 1 LDM = 1 running metre of loading space at 2.4 m width and up to 2.7 m height. Basis for freight prices in groupage traffic – calculated from width × length ÷ 2.4.

Last-Mile Delivery

Final transport leg from the transshipment point or distribution centre to the end recipient. Most cost-intensive phase of the supply chain – approx. 28–53% of total freight costs – due to small shipments, many stops and access obstacles.

LCL Less than Container Load

Groupage booking in sea freight; multiple customers share a container. Economical for shipments under approx. 15 cubic metres – longer transit times due to consolidation and deconsolidation at the ports.

Delivery Note

Document evidencing recipient, contents and quantity of a delivery, signed by the recipient. Serves as proof of receipt – complaints about damage or shortages must be noted on the delivery note upon acceptance.

LTL Less than Truck Load

Part load shipping; multiple shipments from different clients are bundled in one truck. Cheaper than FTL for small quantities – but longer in transit than a direct transport due to transshipment and consolidation.

Book part load

M

Toll Costs

Road usage fees for trucks on motorways and federal roads. In Germany calculated by distance, number of axles and emission class (Euro standard). Since 2023 also a CO₂ surcharge – toll is passed on to freight rates.

Multimodal Transport

Goods transport using at least two different modes of transport (e.g. truck + ship, truck + rail) under a single transport contract. Combines cost advantages of different modes – lower CO₂ than pure road transport.

N

Cash on Delivery COD

Payment method where the recipient pays for the shipment upon delivery. The driver collects the agreed amount, which is then forwarded to the consignor. Declining use due to digital payment methods.

Network Freight Forwarder

Freight forwarder with its own nationwide branch network for national groupage traffic. Shipments are bundled and distributed via depots and hubs – high network coverage with standardised transit times.

P

Pallet Shipping

Transport of goods on standardised Euro pallets (120×80 cm) or industrial pallets (120×100 cm). Efficient through stackability and mechanical handling – particularly economical from one pallet upwards.

Book pallet shipping

Pallet Exchange EPAL

System for exchanging Euro pallets between consignor and recipient. EPAL pallets are standardised, tested exchange pallets (EUR quality) – upon delivery the same number of empty pallets are returned or a pallet receipt issued.

Pick & Pack

Warehouse service: picking selected items and subsequent packing for dispatch. Core process in e-commerce fulfilment centres and distribution warehouses.

POD Proof of Delivery

Electronic or paper-based delivery confirmation; confirms successful handover of goods to the recipient with date, time and signature. Important for invoicing and damage proof.

R

Route Card

Accompanying document for shipments in groupage traffic, documenting recipient, route and handover at the transshipment point. Contains all shipments of a vehicle for a specific delivery tour – basis for driver scheduling.

S

Groupage

Combining multiple small shipments from different consignors into a more economical transport. Lower freight rates than individual shipments through shared use of loading space and hub infrastructure.

Book groupage freight

Shipment Tracking Tracking

Real-time monitoring of shipment status from collection to delivery via tracking number. Modern systems provide GPS positions, status events and estimated arrival times (ETA) in real time.

Track shipment

Freight Forwarding

Commercial company that organises, coordinates and processes goods transport – in its own name but at the client's expense. Freight forwarders can transport themselves or commission carriers (§ 453 HGB).

Freight Forwarder

Merchant who professionally arranges the dispatch of goods in their own name on behalf of another (§ 453 HGB). They organise the transport and are liable for the selection and supervision of the carriers used.

Oversized Freight

Shipments that require special transport conditions due to size, shape or weight. Examples: long pipes, machinery, bulky furniture. Requires special vehicles or separate calculation.

Request oversized freight transport

General Cargo

Individual, distinct freight units (parcels, boxes, crates, pallets) – the opposite of bulk goods or liquid cargo. In general cargo traffic, multiple shipments from different customers are loaded onto one vehicle.

Book general cargo transport

T

TIR Transports Internationaux Routiers

International customs procedure for cross-border road goods transport; simplifies customs formalities in transit countries. Transports under TIR Carnet pass borders without full customs inspection – surety is assumed by the national TIR association.

TMS Transport Management System

Software for planning, controlling, processing and monitoring transports. Integrates order management, route optimisation, carrier communication, tracking and freight cost accounting in one platform.

Tracking Number

Unique alphanumeric identifier for the identification and tracking of a shipment. Issued upon booking completion and enables seamless shipment tracking from collection to delivery.

Transit Time

Pure transport duration between collection at the consignor and delivery to the recipient – excluding lead times such as booking or packaging. Decisive for planning and contract negotiations.

U

Transshipment

Loading, sorting and forwarding of goods at logistics transshipment points (terminals, depots, hubs) without prolonged storage. Fast transshipment is a prerequisite for short network transit times in groupage traffic.

V

Packaging Guidelines

Standards and specifications for safe, compliant packaging of shipments to protect against transport damage. Decisive for insurance claims – inadequate packaging can lead to rejection of damage claims.

View packaging tips

Volumetric Weight Dimensional Weight

Calculated weight based on shipment volume: (L×W×H in cm) ÷ 6000 (air freight) or ÷ 5000 (road transport). The higher of actual and volumetric weight is always charged – relevant for light, bulky shipments.

W

Swap Body Interchangeable Body

Interchangeable vehicle superstructure for trucks that enables fast transshipment without reloading of goods. Swap bodies can be set down on support legs and picked up by another tractor unit – ideal for night and rail traffic.

Z

Customs Declaration

Formal declaration to the customs authority for import, export or transit of goods across customs borders. In the EU electronically via the ATLAS system (Automated Tariff and Local Customs Processing System).

Customs Clearance

Totality of administrative and logistical processes for import or export of dutiable goods. Comprises customs declaration, classification, duty calculation, inspection and release by the customs authority.

Delivery Confirmation

See POD (Proof of Delivery) – electronic or paper-based proof of successful handover of goods to the recipient with signature, date and time.

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Logistics Technical Terms: Essential Knowledge for Freight Forwarders and Shippers

NexCargo's logistics glossary gives you a structured overview of the most important freight forwarding technical terms – from classic transport documents such as CMR and AWB to modern concepts like cross-docking and TMS. Whether you are an experienced logistics professional looking up a term or a shipper entering the transport terminology: this dictionary explains in practical terms what lies behind the abbreviations.

Anyone who regularly ships goods quickly encounters terms like Incoterms, loading metres or volumetric weight. A sound understanding of these freight terms helps to compare quotes, understand contracts and avoid misunderstandings in day-to-day business. Incoterms in particular – the international delivery conditions of the ICC – precisely define who bears costs and risks at what point: from EXW (ex works) to DDP (delivered duty paid), completely different obligations arise for buyers and sellers.

In groupage traffic, terms such as LTL (Less than Truck Load), loading metres and consolidation are central to cost calculation. Anyone who correctly states their shipment as LDM and knows the volumetric weight avoids surcharges and surprises on the invoice. In international transport, documents such as the bill of lading, the CMR and the customs declaration are added – all explained in this logistics glossary.

As a digital B2B freight forwarding platform, NexCargo connects shippers with vetted freight forwarders for pallet transport, direct transport, hazardous goods transport and oversized freight – nationally and internationally. With the knowledge from this freight terminology dictionary, you can communicate your requirements precisely and efficiently select the right transport offer.