Supply Chain Glossary

Straightening out the language of supply chains

An agile supply chain is a flexible and responsive approach to supply chain management that enables organizations to quickly adapt to changing market conditions, customer demands, and disruptions. It focuses on enhancing speed, efficiency, and adaptability throughout the entire supply chain process, from sourcing raw materials to delivering finished products to customers.

Air waybill (AWB)

An air waybill (AWB) is a vital logistics document used in air freight transportation. It serves as a contract of carriage between the shipper (consignor) and the airline (carrier), detailing the terms and conditions of air transportation for the shipment. The air waybill contains essential information such as the origin and destination of the cargo, the description of goods, the weight, and the freight charges.

Arrival notice

An arrival notice is a notification sent by a carrier or freight forwarder to inform consignees or recipients that a shipment has arrived at its destination port or facility. This notice serves as an important communication tool in the supply chain, providing recipients with essential information about the arrival of their goods and detailing the next steps for delivery or pickup.

Bayplan

The bayplan is the complete overview of containers stowed on the vessel. This includes slots for each container. It is provided by the terminal to the vessel operator, who will distribute it further, if needed. The associated EDI-message, BAPLIE, is often used instead of the term bayplan.

Beneficial Cargo Owner (BCO)

A Beneficial Cargo Owner (BCO) is the entity with ownership or a beneficial interest in transported goods. While not always the shipper, the BCO reaps the benefits of the cargo's arrival.

Bill of Lading (B/L)

A bill of lading (B/L) is a legal document issued by a carrier or its agent to acknowledge receipt of goods for shipment. It serves as a contract between the shipper (seller) and the carrier (transport provider), detailing the terms and conditions of transportation, including the type, quantity, and destination of the goods.

Booking request

A request for reservation of space and equipment for a particular vessel/voyage and possibly inland transport.

Bullwhip effect

The bullwhip effect, also known as demand amplification or whiplash effect, is a phenomenon that occurs in supply chains where small fluctuations in demand at the consumer level lead to exaggerated fluctuations in demand further upstream in the supply chain. This amplification of demand variability causes inefficiencies, such as excess inventory, stockouts, and increased costs, as supply chain partners overreact to perceived demand changes.

Cargo release

The action of allowing cargo to leave the container yard typically authorized by the carrier. This is often confused with gate-out, but cargo release is the authorization necessary before shipments can be allowed to gate-out.

Cargo survey

The act of documenting details on the cargo on behalf of the carrier, customer or authorities. This could be the measurement of an out of gauge shipment, packing of dangerous goods or any element which requires specific documentation of the physical condition of the cargo.

Carrier

The party who is tasked with transporting the cargo is known as the carrier. For example, the shipping line with whom the freight moves would be the carrier for an ocean movement.

Carrier haulage

Carrier haulage refers to a transportation arrangement where the carrier, typically the ocean shipping line or its designated transport provider, is responsible for arranging and paying for the inland transportation of containers. In this scenario, the carrier takes charge of moving the container from the port of discharge to the final destination or vice versa, using their own transportation assets or subcontracted carriers.

Certificate of origin

A certificate of origin is a document issued by an authorized body or organization that certifies the country in which the goods being shipped were manufactured, produced, or processed. It serves as a declaration by the exporter to the customs authorities of the importing country, providing information about the origin of the goods and facilitating trade by ensuring compliance with trade agreements, tariffs, and regulations.

Commercial invoice

A commercial invoice is a crucial document used in international trade transactions to provide details of the goods being shipped and their corresponding value. It serves as a formal request for payment from the buyer to the seller and is essential for customs clearance and regulatory compliance.

Commodity

Description of the cargo loaded into a container. Often described using the Harmonized System-classification system.

Confirmed bookings

All bookings intended for a specific vessel. This also includes transshipments and roll-overs from previous vessels. For all confirmed bookings a booking confirmation have been issued.

Consignee

In the realm of supply chain and logistics, the term "Consignee" refers to the individual, company, or entity to whom a shipment of goods is delivered. The consignee is the designated recipient or receiver of the goods, typically identified by name and address on shipping documents such as the bill of lading or delivery order.

Container grade

The classification system used by carriers internally to define the general appearance and condition of a piece of equipment.

Container packing certificate

A container packing certificate is a document that verifies the proper packing and loading of goods into a shipping container. It attests that the contents have been securely packed, arranged, and secured according to industry standards and regulatory requirements. Obtaining a container packing certificate is crucial for compliance with international shipping regulations and contractual obligations. It provides assurance that the goods have been properly prepared for transport, minimizing the risk of delays, damages, or disputes during the shipment process.

Cross docking

Cross docking is a logistics strategy where incoming goods from suppliers are unloaded from incoming trucks or containers and directly loaded onto outbound trucks or trailers, with minimal or no storage time in between. Essentially, it involves transferring goods directly from the inbound dock to the outbound dock, bypassing the need for traditional warehousing storage.

Customer

The entity who purchases goods or services from the carrier.

Customs and transit documentation

Official paperwork used for customs clearance in relation to the end-to-end transportation.

Customs manifest

Document that lists in detail all the bills of lading issued by a carrier, its agent or master for a specific voyage and port call. It is a detailed summary of the total cargo of a vessel and is used principally for customs purposes.

Cut-off

The latest point in time where a container has to be delivered to a terminal to be loaded on a vessel, or where certain documentation has to be provided by the Shipper.Example: CY cut-off, FCL cut-off, VGM cut-off, DG cut-off.

Dangerous goods declaration

A dangerous goods declaration (DGD) is a legal document required for the transportation of hazardous materials or dangerous goods by air, sea, road, or rail. It provides detailed information about the nature, classification, packaging, and handling requirements of the dangerous goods being transported. The DGD helps ensure compliance with international regulations and facilitates the safe handling and transport of hazardous materials throughout the supply chain.

Demurrage

Demurrage refers to the additional charges imposed on the owner or operator of a vessel, freight car, or truck for delaying the use of equipment or facilities beyond the agreed-upon time. In the context of maritime shipping, demurrage applies to the time that cargo remains at the port or terminal beyond the allotted free time for loading or unloading.

Depot

A designated area where empty equipment is stored. This is also where empty equipment can be picked up and/or dropped off.

Detention charges

Detention charges are fees incurred when a carrier's equipment, such as containers or trailers, is held beyond the agreed-upon free time at a facility, such as a port, terminal, or warehouse. These charges compensate the carrier for the additional time their equipment is detained and unavailable for other use.

Digital twin

A supply chain digital twin replicates the entire supply chain network, including assets, facilities, products, and processes, in a digital environment. It enables real-time monitoring, analysis, and simulation of supply chain operations to improve efficiency, optimize decision-making, and mitigate risks.

Discharge / Discharging of container

The unloading of a container from a vessel.

Discharge instructions

The list of containers that should be unloaded during a port call. This list is provided by a carrier to a terminal. The terminal is consolidating the Discharge Instructions from all container operators that have slots on the vessel.

Dock receipt

A dock receipt is a logistics document issued by a carrier or its agent to acknowledge the receipt of goods at a shipping dock or terminal for transportation. It serves as a temporary receipt until the goods are loaded onto a vessel or other mode of transportation for shipment to their destination. The dock receipt contains essential information about the cargo, such as the quantity, description, condition, and destination, along with details about the carrier, shipper, and consignee.

EDI booking

A booking received via electronic data interchange, meaning that the booking data flows automatically into the carrier’s booking system.

Empties

Container or equipment currently not stuffed.

Equipment

Used for storing cargo in/on during transport. The equipment "size/type" is defined by the ISO 6346 code. The most common equipment size/type is 20'/40'/45' Dry Freight Container, but a number of different versions exist.

Equipment discharge / load report

Confirmation & receipt of the equipment loaded/discharged on a vessel during a port call. This information is recorded by the terminal operator and sent to the carrier. This is often done using the EDI message - COARRI. The COARRI message reports that the equipment specified have been discharged from a seagoing vessel (discharged as ordered, over landed or short landed), or have been loaded into a seagoing vessel.

Event

An occurrence in the process, which is a lower ranking contributor to a milestone.

Exception

A series of activities not included in the general process flow as they illustrate the handling of situations that does not follow the rules for the general flow. These are handled in the exception flow.

Feeder operator

An entity operating a feeder service - ref. Feeder vessel.

Feeder vessel

A container feeder vessel, also known as a feeder ship, is a relatively small cargo vessel that is specifically designed for transporting containers between smaller ports or terminals to larger hub ports where mainline vessels operate. These vessels serve as a crucial link in the global shipping network by facilitating the distribution of cargo to and from regional ports that may not be accessible to larger ships due to navigational constraints or limited infrastructure.

Financial clearance status

Financial check performed by the carrier to ensure outstanding balance has been paid.

Fourth Party Logistics (4PL)

4PL, or Fourth Party Logistics, refers to a logistics model where a single organization, known as the fourth-party logistics provider, takes on the responsibility of managing and coordinating the entire supply chain on behalf of the client. Unlike traditional third-party logistics (3PL) providers, who primarily handle specific logistics functions, 4PL providers offer comprehensive end-to-end supply chain management services. 4PL providers act as strategic partners, overseeing multiple 3PLs and other service providers to optimize supply chain operations, enhance efficiency, and achieve cost savings for their clients.

Freight forwarding

A freight forwarder is a vital link in the supply chain, specializing in the coordination and management of international shipments. Acting as an intermediary between shippers and carriers, freight forwarders handle various logistics tasks such as booking cargo space, arranging transportation, preparing documentation, and managing customs clearance.

Freight visibility

Freight visibility (also called shipment visibility) refers to the ability of supply chain professionals to track and monitor the movement of freight shipments throughout the supply chain. It involves gaining real-time insights into the location and status of goods as they move through various transportation modes and stages of the logistics process.

Full truckload (FTL) freight

Full truckload (FTL) freight refers to shipments that occupy the entire capacity of a truck trailer. Unlike less than truckload (LTL) shipments, FTL shipments do not share space with other cargo, allowing for direct transportation from the point of origin to the destination without intermediate stops.

GLEC framework

The GLEC (Global Logistics Emissions Council) framework is a globally recognized standard developed to measure and report greenhouse gas (GHG) emissions from logistics activities. It provides guidelines and best practices for calculating emissions across various modes of transport, including road, rail, sea, and air.

Gate-out

The action of moving a container from a container yard, a terminal or another restricted/controlled area.

German Supply Chain Act

The German Supply Chain Act, also known as Lieferkettengesetz, is a landmark legislation enacted to promote corporate social responsibility and ensure ethical practices throughout global supply chains. Introduced in 2021, the law applies to German companies with over 3,000 employees, requiring them to monitor and address human rights abuses, environmental violations, and labor standards in their supply chains.

Haulage equipment

Gear used to do inland transportation of a container. This can include tools and apparatus used to load/discharge the container onto the intermodal type.

Haulage requirements

Specifications for a haulier set by a carrier in regards to a specific work order, e.g. timeline, capabilities.

Haulage type

The joint term for merchant and carrier haulage. It should be noted that a shipment can have several types of haulage throughout the transport from origin to destination.

Haulier

The haulier is the party responsible for moving goods by truck.

House Bill of Lading (HBL)

A House Bill of Lading (HBL) is a transportation document issued by a freight forwarder or Non-Vessel Operating Common Carrier (NVOCC) to acknowledge receipt of goods for shipment. It serves as a contract of carriage between the shipper and the carrier and includes details such as the type, quantity, and destination of the goods being transported.

INCOTERMS

INCOTERMS, short for International Commercial Terms, are a set of standardized trade terms published by the International Chamber of Commerce (ICC) that define the responsibilities and obligations of buyers and sellers in international trade transactions. They specify who is responsible for the costs, risks, and logistics involved in transporting goods from the seller to the buyer.

ISO 14083

ISO 14083:2023 is an internationally recognized standard focusing on greenhouse gas (GHG) emissions measurement and reporting in freight transport. This standard guides organizations in assessing and managing the environmental impact of their transportation activities.

In gauge cargo

Cargo, which has been loaded into special equipment, but does not exceed the dimensions of a standard 20', 40', or high cube container.

Inland transport request

Internal work document/file facilitating the collection of necessary data prior to issuing the carrier haulage work order.

Last mile delivery

Last mile delivery refers to the final leg of the logistics journey, where goods are transported from a distribution center or fulfillment center to the end destination, typically a residential address or retail store. It is considered the most critical and challenging part of the supply chain due to its complexity and impact on customer satisfaction.

Late submission

When a shipper submits documentation after a defined deadline set by the carrier.

Laytime

Laytime is the period of time granted to a vessel for loading and unloading cargo at a port. It represents the duration, typically in a number of days, for which the ship is allowed to remain at the port facility to complete these operations. Laytime is typically agreed upon in charter party contracts between the shipowner or operator and the charterer, who may be the cargo owner or a freight forwarder.

Leg

A leg can be defined as two things: 1. A sea passage in the rotation of ports in a voyage. 2. A specific section of a complete transport of a shipment.

Less-than-truckload (LTL) freight

Less than truckload (LTL) freight refers to shipments that do not fill an entire truck trailer but instead occupy only a portion of the available space. LTL shipments are typically smaller in size and weight, making them more cost-effective for businesses that do not require full truckload capacity.

Load / discharge confirmation

This is the confirmation sent to the customer, shipper or consignee, that the equipment has been loaded/discharged. This message is based on the "equipment discharge/load report".

Load / loading of container

The action of lifting any cargo or container on board of the vessel for transportation.

Load board

A load board serves as an online platform or marketplace where shippers and carriers can connect to facilitate the transportation of freight. Also known as freight boards or truck load boards, these platforms provide a centralized space for posting and searching available loads and trucks, enabling efficient matching of transportation needs.

Load list

List of containers sent by the carrier or its agent to the terminal to instruct which containers must be loaded on a specific vessel/voyage. Each vessel can have several load lists in case of vessel sharing agreements.

Logistics 4.0

Logistics 4.0, also known as the fourth industrial revolution in logistics, refers to the integration of advanced digital technologies and data-driven solutions to revolutionize traditional supply chain and logistics operations. It builds upon the concepts of Industry 4.0, applying automation, artificial intelligence (AI), Internet of Things (IoT), and big data analytics to optimize efficiency, visibility, and agility across the supply chain.

Logistics document management

Logistics document management refers to the process of handling, organizing, and storing various documents involved in supply chain and logistics operations. It encompasses the management of paperwork, electronic records, and other documentation essential for the efficient flow of goods from point of origin to final destination.

Logistics visibility

Logistics visibility refers to the ability of supply chain professionals to track and monitor the movement of goods and assets throughout the supply chain in real-time. It involves gaining insights into the location, status, and condition of shipments, inventory, and transportation assets as they move through various stages of the supply chain.

Manifest corrector

The manifest corrector is used to make changes to a manifest after the manifest in question has been submitted to the relevant authorities.

Master Bill of Lading (MBL)

A Master Bill of Lading (MBL) is a transportation document issued by the ocean carrier or its agent to acknowledge receipt of goods for shipment. It serves as a contract of carriage between the shipper and the ocean carrier, detailing the terms and conditions of transportation, including the type, quantity, and destination of the goods being shipped. The MBL also acts as a receipt for the cargo and serves as a title document, allowing the consignee to claim ownership of the goods upon arrival at the destination port.

Merchant haulage

Merchant haulage refers to a scenario in transportation logistics where the party responsible for arranging and paying for the inland transportation of goods (e.g. port to warehouse) is the cargo owner or another party distinct from the ocean carrier.

Message

The transfer of information from one stakeholder to another and/or between software systems. In the Industry Blueprint the focus is on information flow to parties outside of the carrier organization (e.g. carrier to customers).

Milestone

A significant occurrence or change of status affecting the process flow of physical or immaterial equipment or documents.

Network / vessel capacity

The operational capacity of a vessel on a specific voyage. This capacity takes into account all limiting factors such as the physical capacity on-board, but it also allows for constraints in the terminals to load / discharge the vessel for the specific voyage.

Off dock storage

Off dock storage refers to the practice of storing cargo containers or goods at a location separate from the port terminal or container yard where they were initially unloaded from a vessel. This storage facility, often located nearby but off-terminal, provides additional space for holding containers temporarily before they are moved to their final destination.

On-time in-full (OTIF)

OTIF stands for On-Time In-Full, a key performance indicator (KPI) used in supply chain management to measure the percentage of orders delivered to customers both on time and in full. It assesses the effectiveness and efficiency of logistics operations in meeting customer expectations regarding delivery timeliness and order completeness.

Out-of-gauge cargo

Out of gauge cargo, often abbreviated as OOG cargo, refers to shipments that exceed the standard dimensions or weight limitations for transportation containers or transport vehicles. This type of cargo typically includes oversized, bulky, or irregularly shaped goods that cannot fit within the standard confines of a shipping container or vehicle.

Packing list

A packing list is a document that itemizes the contents of a shipment. It provides detailed information about the goods being transported, including descriptions, quantities, and any special instructions for handling. This document serves as a crucial tool in supply chain and logistics operations, aiding in the verification of goods received, inventory management, and customs clearance processes.

Partner

Every entity delivering transportation services within an agreement, e.g. VSA, 3PL.

Port

A facility with piers or docks. Ports are accessed by vessels and represent the destinations of a voyage. Ports can contain one or more terminals.

Port call

A port call is defined as a unique intermediate stop of a vessel in the rotation of ports on the voyage. A vessel may have several terminal calls during a single port call.

Port congestion

Port congestion occurs when there is a significant backlog of vessels waiting to enter or leave a port, or when there are delays in cargo loading and unloading processes within the port. It results in extended wait times for ships, increased dwell times for cargo, and overall disruptions to supply chain operations.

Re-export

Re-export refers to the process of exporting goods that were previously imported into a country without undergoing significant alteration or manufacturing processes within that country. Essentially, re-exports involve sending imported goods back out of the country to a different destination.

Re-stows

Re-stowed container means that, at some point along the route, it will be moved from a previous stowage location on board the vessel to another stowage location on board the same vessel. This can be done in one crane move (ship to ship shifting), but more frequently done via shore/the pier (ship to pier shifting).

Re-use

When an import customer wants to reuse the import container for a new export.

Real-time transportation visibility (RTTV)

Real time transportation visibility refers to the ability of supply chain professionals to monitor and track the movement of goods and shipments in real time throughout the transportation process. It involves gaining insights into the location and status of shipments as they move through various modes of transportation, such as road, rail, air, or sea.

Reefer container

A reefer container, also known as a refrigerated shipping container, is a specialized shipping container used to transport temperature-sensitive cargo such as fruits, vegetables, pharmaceuticals, and other perishable goods. These containers are equipped with refrigeration units to maintain specific temperature conditions throughout the journey, ensuring the freshness and quality of the cargo.

Release reference number

Reference number contained in the Cargo Release. It is provided by the carrier to the terminal and to the cargo receiver, and it must be presented upon pick up at the terminal.

Roll over

When an ocean freight cargo is said to have been ‘rolled’, it means it has not been loaded onto the vessel it was meant to be shipped on but rolled to a subsequent vessel.

Roll-on/Roll-off (RORO) shipping

Roll-on/roll-off (RORO) shipping is a method of transporting vehicles and other wheeled cargo by allowing them to be driven onto and off of specialized vessels, eliminating the need for cranes or other loading equipment. RORO vessels are equipped with ramps or platforms that facilitate the easy movement of cargo.

Route plan

Plan for the end-to-end shipment of a shipment. This includes specification of all transport legs, timings, schedules and interdependencies between transport legs.

SCAC Code

SCAC stands for Standard Carrier Alpha Code. It's a unique two-to-four letter code assigned to transportation companies for easy identification in the supply chain. These codes are primarily used in the United States, Canada, and Mexico.

Safety stock

Safety stock, also known as buffer stock or reserve inventory, refers to the extra inventory held by a company above its average demand level. The purpose of safety stock is to provide a buffer against unexpected fluctuations in demand, supply disruptions, or lead time variability.

Scope 3 emissions

Scope 3 emissions refer to indirect greenhouse gas emissions generated by activities associated with an organization's value chain, including its upstream and downstream activities such as procurement, transportation, product use, and disposal. These emissions occur outside of an organization's direct control but are a result of its business activities.

Sea Waybill

A sea waybill, also known as a non-negotiable sea waybill or direct ocean carrier bill of lading, is a document issued by the carrier to acknowledge receipt of goods and confirm the contract of carriage. Unlike a traditional bill of lading, a sea waybill is not a negotiable instrument and does not require endorsement for the transfer of ownership. It serves as a receipt of shipment and a contract of carriage between the shipper and the carrier.

Seal

A single-use instrument used for securing container or freight car or truck doors.Seals have unique numbers for record purposes.

Shipment

A Shipment is the realisation of a customer booking for which all containers have a common routing and details of scheduling.

Shipment visibility

Shipment visibility refers to the ability of supply chain and logistics professionals to track and monitor the movement of goods throughout the entire logistics process, from the point of origin to the final destination. It involves real-time access to information about the status and location of goods as they travel through various stages of transportation and distribution.

Shipper

The shipper is the entity or party who is responsible for the shipment. This can be dependent on the INCOTERMS under which the cargo moves. If there are any queries around this, please contact your Beacon Account Manager.

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