TERMS AND CONDITIONS
Success in logistics starts with speaking the same language. If you're in the field, these 20 terms are your bread and butter.
1. LTL (Less-than-Truckload)
Shipment that doesn't fill a full truck
2. FTL (Full Truckload)
Shipment that takes up the entire truck space
3. 3PL (Third-Party Logistics)
Outsourced logistics services provider
4. Freight Forwarder
Organizes shipment on behalf of shippers
5. Drayage
Short-distance transport, usually between ports and warehouses
6. Intermodal
Using multiple modes (e.g rall + truck) for one shipment
7. Bill of Lading (BOL)
Legal document with shipment details
8. Lead Time
Time from placing an order to delivery
9. Cross-Docking
11. Deadhead
Truck returning empty after a delivery
12. Demurrage
Fees charged for containers left at port bevond free time
13. Detention
Charges when a driver waits to long for loading/unloading
14. Tender
Offering freight to a carrier for fransport
15. Backhaul
Load hauled back after a delivery to reduce empty miles
16. Last Mile Delivery
Final leg of shipment to the customer
17. Lane
Route between origin and destination points
18. Tracking Number
Unique code to monitor shipment progress
19. Proof of Delivery (POD)
Confirmation the shipment
Mastering INCOTERMS: The Foundation of Global Trade Success
In the complex world of international shipping and logistics, INCOTERMS are more than technical jargon-they are the rules that define who does what, when, and where. From cost allocation to risk transfer, INCO-TERMS create clarity and consistency across global trade operations.
EXW (Ex Works)
Buver takes full responsibility from the seller's premises
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DDP (Delivered Duty Paid)
Seller handles everything, including custorns duties
FCA (Free Carrier)
Seller delivers to a named carrier
CPT (Carriage and Insurance Paid To)
Shipping + insurance covered by seller
DAP (Delivered at Place)
Delivered to the buyer, unloading on buyer
DPU (Delivered at Place Unloaded)
Delivered and unloaded by seller
FAS (Free Alongside Ship)
Delivered next to the vessel at port
FOB (Free On Board)
Seller loads goods, buyer takes over on board
CFR (Cost and Freight)
Seller pays transport to port, buyer takes risk at loading
CIF (Cost, Insurance & Freight)
Like CFR, but with seller-provided insurance
Choosing the right Incoterm impacts cost, risk, responsibility, and compliance, it protects your bottom line and ensures smooth cross-border transactions.