Mastering the Language of Logistics: Shipping Terms Unveiled


ABC Model in Logistics

A depiction of resource costs throughout a time period that is consumed through actions and tracked to products, services, and consumers, or to any other thing that produces a demand for the activity to be done, in cost management.

Air Waybill (AWB)

The document that governs air travel. It is provided as a non-negotiable document by the carrier, whether an airline or a freight forwarder, serving as a receipt to the consignor for the cargo and including the transit conditions in Logistics. It also includes the consignee’s contact information so that they may be notified when the items arrive.


The owners of a ship are entitled to freight reimbursement for goods returned due to the fault of either the consignees or the consignors. Backfreight is a payment that is made in addition to the standard freight in Logistics.


The cargo-carrying vehicle, which may or may not have its own driving system to convey products. Basic barges, which are mostly used by inland water carriers, have open tops, however covered barges are available for both dry and liquid cargoes. Barges can be linked together and pushed or pulled by tugs carrying 60,000 tonnes or more of cargo logistics. Lighters are small barges used to transport freight between ships and land.

Bonded Warehouse

The Customs Service authorises bonded warehouses for the storage or production of commodities, with duty payment postponed until the products reach the Customs Territory. If the items are re-shipped to a foreign location, they are not subject to tariffs.

Bonding Company

An organisation that is willing to enter into an arrangement to make good on a financial promise made on behalf of another. Vessel owners may get such a bond to satisfy a court and gain the vessel’s release.


Cargo was delivered in a loose and homogenous state. Unpackaged cargoes that are either dry, such as grain and ore, or liquid, such as petroleum logistics products. Bulk service is often not given on a regular timetable, but rather on an as-needed basis aboard specialised ships conveying a specific product.

Bullwhip Effect

A significant change in supply logistics position upstream in a supply chain caused by a minor change in demand downstream in the supply chain logistics. Inventory may swiftly go from backordered to surplus. The serial pattern of transmitting orders up the chain, along with the inherent transportation delays of transferring items down the chain, causes this. By synchronising the supply chain, the bullwhip effect may be removed.

Business Logistics

The process of planning, implementing, and managing the efficient, effective movement and storage of products, services, and associated information from the point of origin to the point of consumption in order to meet the needs of customers.

Chargeable Weight

The shipment weight used to calculate freight charges. The charged weight may be the dimensional weight or, in the case of container shipments, the gross weight of the cargo less the container’s tare weight.

Container Logistics

A cargo-laden truck trailer that can be removed and loaded into a vessel or railway. There are several types of containers available to meet various shipping requirements. A container, for example, may be vented, refrigerated, insulated, dehumidified, or outfitted with unique systems needed to secure specific sorts of goods.

Demurrage Logistics

Container lines charge demurrage when your imported containers are not picked up on schedule. The merchant or international shipper shall pay a charge corresponding only to the use of the equipment for the carrier’s equipment held beyond the free time granted by the carrier for the delivery of goods to the port, terminal, or warehouse. When an overseas shipper is discharged, the port (supplied by the container line) has a length of time in which to hold them.

You must pick up your containers before the free time expires. If not, the overseas shipper will be charged for the number of days containers are left in port. Container shippers may also be charged demurrage costs if the container line is unable to ship their containers due to customs complications, for example. They can then charge you for storing your containers in the port for the number of days you specify.

Deck Logistics

Under deck cargo refers to goods stored inside a vessel’s holds; on deck cargo refers to goods stored above the holds “on deck” on the vessel, primarily due to their hazardous nature; on deck cargo will be the first to be jettisoned in the event of an emergency; deck goods are always carried without any acceptance of responsibility by the carrier. 


Detention is a fee you must pay if foreign shippers pick up your imported containers but do not return them to the shipping line on time. Container shippers will then be required to pay to return the containers for the additional number of days it took you. Containership operators may also be assessed demurrage costs if you have containers that the container line is unable to ship due to your failure to return them on time. An overseas shipper will therefore be required to pay for the additional days in your possession of the containers.

EAM – Enterprise Asset Management

On a wide scale, technology allows us to trace the position, travel, and destination of a vast number of commodities. Enterprise resource management entails acquiring and manipulating data in order to track and plan assets across large organisations and networks.

ERP- Enterprise Resource Planning

ERP is the software- and technology-assisted integrated management of corporate processes. Resources and commitments are tracked in order to manage resources and satisfy responsibilities more efficiently. Adoption of logistics-specific ERP software is increasing as automation makes it simpler to track physical products across numerous locations in real time.

Feeder Service

Delivery or collection services to/from major ocean boats’ ports of call, organised on smaller local vessels, barges, rail, or road, from/to numerous points of origin/destination that the larger vessels could not serve.


What is an Air Waybill (AWB)?

An Air Waybill is a non-negotiable document provided by a carrier, serving as a receipt for air cargo and including transit conditions and consignee contact information.

What is a bonded warehouse?

A bonded warehouse is authorized by Customs for storing or producing goods with deferred duty payment until they enter the Customs Territory.

What is the bullwhip effect in supply chains?

The bullwhip effect is a significant supply chain disruption caused by minor demand changes, often due to order patterns and transportation delays.

What is business logistics?

Business logistics is the process of efficiently moving and storing products, services, and information from origin to consumption to meet customer needs.

What is chargeable weight in shipping?

Chargeable weight is the shipment weight used to calculate freight charges, which can be dimensional or the gross weight of cargo minus the container’s tare weight.

What is demurrage in container shipping?

Demurrage is a charge for exceeding the free time granted by the carrier for delivering imported containers to the port, terminal, or warehouse.

What is the difference between on-deck and under-deck cargo?

Under-deck cargo is stored inside a vessel’s holds, while on-deck cargo is stored above the holds; on-deck cargo may be jettisoned in emergencies.

What is detention in container shipping?

Detention is a fee for not returning imported containers to the shipping line on time; it’s separate from demurrage and can extend container shippers’ costs.

What is EAM (Enterprise Asset Management)?

EAM involves tracking assets across organizations and networks on a large scale using technology and data.

What is ERP (Enterprise Resource Planning)?

ERP is software and technology for integrated management of corporate processes, tracking resources and commitments for efficient resource management.

Shraddha Thuwal

Shraddha Thuwal

Shraddha Thuwal worked as a content writer at WareIQ. She actively contributes to the creation of blog posts centered on eCommerce operations, fulfillment, and shipping, in addition to providing insights on various strategies and techniques tailored for eCommerce sellers. With an impressive track record, Shraddha boasts over two years of content writing experience, spanning a spectrum of industries including logistics, supply chain, and media.

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