Warehousing3PL (Third-Party Logistics)An outside logistics company that runs operational services, such as warehousing, transport and fulfilment, for a business.
Warehousing4PL (Fourth-Party Logistics)A logistics integrator that manages the whole supply chain on a customer's behalf, coordinating several 3PLs, carriers and systems.
Warehousing5PL (Fifth-Party Logistics)A model that plans and manages networks for many supply chains together, using aggregated volume and technology to optimise them.
LandAbnormal load permitOfficial permission to move cargo exceeding legal size or weight limits on public roads, often with set routes, times and escort vehicles.
DocumentsArrival noticeA notice from the carrier or forwarder telling the consignee that cargo is due or has arrived, with charges payable and next steps.
WarehousingASN (Advance Shipping Notice)An electronic notice sent before goods arrive, listing what is coming, so the receiving warehouse can plan labour and space.
GeneralAsset-lightAn operating model where a logistics company manages transport and storage through a network of trusted carriers and facilities instead of tying capital in fleets and buildings.
CustomsATA CarnetAn international customs document for temporary import of goods such as exhibition displays, professional equipment and samples, without paying duties, as long as they are re-exported in time.
DocumentsAWB (Air Waybill)The air transport contract and receipt for goods. It is non-negotiable and travels with the cargo; each AWB has an 11-digit number used for tracking.
LandAxle loadThe weight carried by each axle of a vehicle. Road authorities set limits, so heavy cargo needs more axles or special permits.
DocumentsB/L (Bill of Lading)The key ocean shipping document: a receipt for the goods, evidence of the contract of carriage and, when negotiable, a document of title needed to collect the cargo.
OceanBAF (Bunker Adjustment Factor)A surcharge that lets shipping lines pass changes in fuel cost on to shippers. It is reviewed regularly, often monthly or quarterly, and is quoted per container or per revenue ton.
AirBelly cargoFreight carried in the lower deck of passenger aircraft. It offers wide route coverage but limited height, so tall pieces need a freighter.
OceanBlank sailingA scheduled voyage, or a port call within it, that a carrier cancels to manage capacity. Cargo booked on it has to be moved to another vessel.
CustomsBonded warehouseA customs-approved store where imported goods can be held without paying duty and VAT. Taxes fall due only when goods are released into the local market, and re-exports leave untaxed.
OceanBreakbulkCargo shipped as individual pieces, crates or bundles rather than in containers, often because it is too large or heavy. It is lifted directly into the hold or onto the deck of a general cargo vessel.
OceanCAF (Currency Adjustment Factor)A surcharge, usually a percentage of the freight, that protects carriers against exchange-rate movements between the currency of the rate and the currency of their costs.
TradeCargo insuranceCover against physical loss of or damage to goods in transit. Carrier liability is limited by convention, so separate insurance protects the full value.
OceanCarrier haulage and merchant haulageCarrier haulage means the shipping line arranges the inland truck move of the container; merchant haulage means the shipper or its forwarder arranges it. The choice affects cost, control and free time.
AirChargeable weightThe weight an air shipment is billed on: the greater of its actual gross weight and its volumetric weight. Light, bulky goods are charged on volume, dense goods on weight.
AirCharterHiring a whole aircraft, or a large part of one, for a single customer's cargo. Used for oversized pieces, very large volumes, remote destinations or tight deadlines.
DocumentsCMRThe consignment note for international road transport under the CMR Convention. It records sender, receiver, goods and carrier, and sets the carrier's liability terms.
DocumentsCommercial invoiceThe seller's invoice to the buyer showing goods, values, Incoterm and parties. It is the main document customs uses to assess duties and taxes.
AirConsolidationGrouping shipments from several shippers under one master air waybill to secure better rates and space. Each shipper still receives its own house air waybill.
GeneralControl towerA central team and system that monitors shipments end to end, spots exceptions early and coordinates the response.
DocumentsCOO (Certificate of Origin)A document, usually issued by a chamber of commerce, confirming the country where goods were produced. It is used for duty rates, trade agreements and import controls.
WarehousingCross-dockingMoving goods from inbound to outbound transport with little or no storage time, sorting them at the dock for onward delivery.
LandCurtainsiderA trailer with sliding fabric sides that open fully for side loading by forklift, while protecting cargo from weather and dust in transit.
CustomsCustoms brokerA licensed specialist who prepares and submits customs declarations and handles clearance on behalf of importers and exporters.
CustomsCustoms valuationThe method customs uses to set the value on which duty is charged, normally the transaction value plus freight and insurance to the border.
OceanCut-offThe latest time to deliver a container, submit documents or file the VGM for a sailing. Missing a cut-off usually means the cargo rolls to the next vessel.
WarehousingCycle countCounting part of the inventory on a rolling schedule instead of closing the warehouse for a full stocktake.
GeneralDangerous goodsMaterials that pose a risk to health, safety, property or the environment in transport, classified into nine UN hazard classes.
DocumentsDangerous goods declarationThe shipper's signed statement that hazardous cargo is correctly classified, packed, marked and labelled for transport.
LandDedicated fleetTrucks reserved for one customer on agreed routes, for a monthly, short-term or long-term period, giving reliable capacity when volumes are steady.
DocumentsDelivery orderAn instruction from the carrier or its agent authorising the release of cargo to the consignee or its haulier at destination.
OceanDemurrageA daily charge from the shipping line when a full container stays inside the port or terminal beyond the free time. It is the main reason fast clearance and early document checks matter.
OceanDetentionA daily charge for keeping the line's container outside the terminal beyond the agreed free days, for example while it is being unloaded at the consignee's site. The clock runs until the empty box is returned.
AirDGR (Dangerous Goods Regulations)The IATA rules for packing, labelling, documenting and carrying hazardous materials by air. Shipments must be classified and declared correctly before acceptance.
CustomsDuty drawbackA refund of import duty paid on goods that are later re-exported, or used to make products that are exported.
CustomsEOR (Exporter of Record)The party responsible for export compliance in the country of origin, including declarations and any export licences.
GeneralETD and ETAEstimated time of departure and estimated time of arrival, the planned milestones every shipment is tracked against.
CustomsFASAHSaudi Arabia's national single window for trade, where customs declarations, permits and port procedures are handled online.
OceanFCL (Full Container Load)A shipment that fills, or is booked as, a whole container for one shipper. The container is sealed at origin and travels unopened to the consignee, which keeps handling low.
OceanFeeder vesselA smaller ship that carries containers between hub ports and smaller ports that large mainline vessels do not call at.
WarehousingFEFO (First Expired, First Out)A rotation method where stock with the nearest expiry date is picked first, whatever its arrival date. Essential for food, pharmaceuticals and cosmetics.
OceanFEUForty-foot Equivalent Unit, equal to two TEU. Ocean rates on many trade lanes are quoted per FEU.
WarehousingFIFO (First In, First Out)A stock rotation method where the oldest stock is picked first. It suits most general goods and reduces the risk of ageing inventory.
LandFlatbedAn open trailer without sides or roof, loaded from the top or sides. Common for steel, pipes, machinery and building materials.
OceanFree timeThe number of days a line or terminal allows before demurrage, detention or storage charges start. Extra free time can often be negotiated at booking, which is far cheaper than paying penalties later.
CustomsFree zoneA designated area treated as outside the customs territory, where goods can be stored, processed or traded without duty until they enter the local market.
GeneralFreight forwarderA company that organises shipments for importers and exporters: booking transport, preparing documents, arranging clearance and managing the move from origin to destination.
AirFreighterAn aircraft configured for cargo only, with main-deck space for taller and heavier pieces than a passenger aircraft can take.
LandFTL (Full Truckload)A truck booked for one customer's cargo, moving directly from loading point to delivery point without stops for other shippers. It is quicker and involves less handling than LTL.
AirFuel and security surchargesAdditional per-kilo charges airlines add to the base air rate to cover fuel price movements and cargo screening costs.
TradeGeneral averageA maritime principle under which all parties with cargo on a voyage share the cost of a deliberate sacrifice made to save the vessel and its cargo, such as jettisoning goods.
OceanGRI (General Rate Increase)An across-the-board increase in base ocean rates announced by carriers for a trade lane, normally with notice. Whether it sticks depends on demand and space at the time.
DocumentsHBL (House Bill of Lading)The bill of lading issued by the forwarder to the actual shipper, covering that shipper's goods within a master shipment.
OceanHeavy liftA single piece so heavy that it needs vessel cranes, floating cranes or specialist shore cranes to load and discharge. It requires engineering, lifting plans and careful stowage.
CustomsHS codeThe Harmonized System number that classifies a product for customs worldwide. The first six digits are international; countries add more digits to set their own duty rates and controls.
CustomsImport VATValue added tax charged by customs when goods enter a country, calculated on the customs value plus duty. In Saudi Arabia the standard rate is 15 per cent.
TradeIncotermsStandard trade terms published by the International Chamber of Commerce that set out who arranges transport, who pays which costs and where risk passes from seller to buyer. The current edition is Incoterms 2020.
CustomsIOR (Importer of Record)The party named on the import declaration as legally responsible for the goods meeting local rules and for paying duties and taxes. An IOR service lets companies import where they have no local entity.
GeneralISPM 15The international standard for treating wooden packaging, such as pallets and crates, by heat or fumigation to stop pests spreading. Treated wood carries an official stamp.
WarehousingKittingAssembling separate items into a single ready-to-use kit or set, such as a spare-parts pack or promotional bundle, before dispatch.
GeneralLashing and securingFixing cargo to a container, trailer or vessel deck with chains, straps and blocking so it cannot shift in transit.
LandLast mileThe final leg of delivery from a hub or warehouse to the end recipient's door or site. It is often the most time-sensitive part of the chain.
OceanLCL (Less than Container Load)Cargo too small to fill a container, so it shares space with other shippers' goods. It is consolidated at an origin warehouse and split again at destination, and is charged by volume or weight.
TradeLetter of creditA bank's undertaking to pay the seller once documents that match the agreed terms are presented. Document details must match exactly or payment is delayed.
LandLow-bed trailerA trailer with a deck set very low to the ground so tall or heavy items, such as excavators and transformers, can travel within height limits.
LandLTL (Less than Truckload)Smaller cargo sharing a truck with other shippers' goods, priced on the space or weight it uses. It suits regular smaller flows at lower cost than a full truck.
DocumentsManifestThe list of all cargo on a vessel, aircraft or truck, filed with customs ahead of arrival.
DocumentsMAWB and HAWBThe master air waybill is issued by the airline to the forwarder for a consolidation; house air waybills are issued by the forwarder to each shipper within it.
DocumentsMBL (Master Bill of Lading)The bill of lading issued by the shipping line to the forwarder, covering the whole container or consolidation.
GeneralMethod statementA written step-by-step plan explaining how a lift, load or move will be done safely, including equipment, sequence, people and controls.
LandMilk runA planned, repeating route where one truck collects from, or delivers to, several points in sequence. It reduces empty kilometres and keeps regular supply flows steady.
GeneralMultimodal transportA movement using two or more modes, such as ocean and truck, under a single contract and coordinated plan.
TradeNamed placeThe location written after an Incoterm, such as FOB Jeddah. It fixes exactly where delivery happens, so it should be as precise as possible.
AirNFO (Next Flight Out)The fastest air option: cargo goes on the first available flight, often with a dedicated courier or handler, for urgent needs such as a stopped production line.
TradeNotify partyThe person or company the carrier contacts when cargo arrives, often the buyer, its bank or its customs agent.
OceanNVOCCNon-Vessel Operating Common Carrier: a company that issues its own bills of lading and sells ocean transport without operating ships, buying space from the lines.
GeneralOOG (Out of Gauge)Cargo that exceeds the internal dimensions of a standard container, so it travels on flat racks, open tops or as breakbulk.
DocumentsPacking listA detailed list of what is in each package: quantities, weights, dimensions and marks. Customs, warehouses and receivers use it to check the cargo.
CustomsPCoC (Product Certificate of Conformity)A SABER certificate showing that a product meets the Saudi technical regulation that applies to it. It is issued per product model and is needed before shipment certificates can be requested.
WarehousingPick and packSelecting ordered items from storage and packing them for shipment, with the right labels and documents.
DocumentsPOD (Proof of Delivery)A signed and dated record that goods were received at destination, often with notes on their condition. It closes the shipment and supports invoicing.
TradeProforma invoiceA preliminary invoice sent before shipment to confirm prices and terms, often used to open a letter of credit or obtain an import permit.
GeneralProject cargoLarge, heavy, high-value or complex cargo, often for industrial or infrastructure projects, moved under a tailored plan and schedule.
OceanPSS (Peak Season Surcharge)An extra charge carriers apply when demand on a trade lane outstrips space, typically ahead of major retail seasons. Booking early is the best protection.
WarehousingPutawayMoving received goods from the receiving dock to their storage location, recorded in the warehouse system.
OceanReeferA refrigerated container with its own cooling unit, plugged into power on the vessel, at the terminal and on the truck. Used for food, pharmaceuticals and other temperature-sensitive goods.
OceanRolled cargoCargo left behind and moved to a later sailing, usually because the vessel was overbooked or a cut-off was missed. Close follow-up with the line keeps rollovers in view early.
OceanRoRo (Roll-on Roll-off)A shipping method where wheeled or tracked cargo, such as cars, trucks and machinery, is driven on and off a specially designed vessel instead of being lifted.
GeneralRoute surveyAn inspection of the planned road route for a heavy or oversized move, checking bridges, bends, overhead lines and road strength before the move.
CustomsRules of originThe criteria that decide which country a product legally comes from. They determine whether goods qualify for reduced duty under trade agreements.
CustomsSABERSaudi Arabia's online conformity platform, run by SASO, where regulated products are registered and certified before import. Without the right SABER certificates, goods can be held at the port.
CustomsSASOThe Saudi Standards, Metrology and Quality Organization, which sets technical regulations and runs the SABER conformity platform.
CustomsSC (Shipment Certificate)A SABER certificate issued for each shipment, linking the consignment to valid product certificates. It is required for customs clearance of regulated goods in Saudi Arabia.
DocumentsSea waybillA non-negotiable ocean transport document. Cargo is released to the named consignee without presenting an original, which speeds up delivery.
AirSea-airA combined route where cargo travels by sea to a hub, then on by air to destination. It is faster than all-ocean and costs less than all-air.
CustomsSFDAThe Saudi Food and Drug Authority, which regulates food, medicines, medical devices, cosmetics and related products. Its approvals and labelling rules apply before such goods can be released.
TradeShipper and consigneeThe shipper sends the goods and the consignee receives them. Both are named on the transport documents.
WarehousingShrink wrappingWrapping palletised goods tightly in plastic film to hold them together and protect them from dust and moisture.
DocumentsSI (Shipping Instructions)The details the shipper sends to the carrier or forwarder to draft the bill of lading: parties, cargo description, weights, marks and container numbers.
WarehousingSKU (Stock Keeping Unit)A unique code for each distinct product variant, such as size or colour, used to track stock and orders.
LandSPMT (Self-Propelled Modular Transporter)A computer-controlled, multi-axle platform that can be linked into larger units to move extremely heavy loads, such as modules and vessels, with precise steering.
DocumentsTelex releaseAn instruction from the origin office to release cargo at destination without original bills of lading, once the originals have been surrendered at origin.
CustomsTemporary admissionA customs regime allowing goods into a country for a limited time and purpose, such as projects or events, with duties suspended against a deposit or security.
OceanTEUTwenty-foot Equivalent Unit, the standard measure of container capacity. A 20' container counts as one TEU and a 40' as two, so vessel sizes and port volumes are quoted in TEU.
OceanTHC (Terminal Handling Charge)The fee for moving containers within the port terminal, such as lifting them on or off the vessel and moving them to the stack. It is charged separately at origin and destination.
LandTIRAn international customs transit system that lets sealed road vehicles cross several borders with fewer inspections, under one internationally recognised security system.
CustomsTransit declarationA customs document that lets goods move through a country under bond to another border or bonded zone without paying local duties, as long as they leave as declared.
GeneralTransit timeThe time cargo spends moving from origin to destination, usually quoted port to port or door to door.
OceanTransshipmentMoving cargo from one vessel to another at an intermediate hub port before it reaches its final port. It widens the reach of a service but adds handling time and a point where connections can be missed.
AirULD (Unit Load Device)A pallet or container shaped to fit an aircraft's hold, used to group many pieces into one unit for faster, safer loading.
DocumentsVGM (Verified Gross Mass)The certified total weight of a packed container, including its tare, which must be declared before loading under the SOLAS convention. Containers without a VGM are not loaded.
AirVolumetric weightA notional weight calculated from a shipment's dimensions. For air it is length x width x height in cm divided by 6,000, which equals 167 kg per cubic metre.
OceanWar risk surchargeA surcharge applied when vessels call at or pass through areas judged high risk, covering higher insurance premiums and security costs. It can change at short notice as conditions shift.
WarehousingWMS (Warehouse Management System)Software that controls receiving, storage, picking, packing and dispatch, and keeps stock positions accurate in real time.
CustomsZATCAThe Zakat, Tax and Customs Authority, the Saudi body responsible for customs, VAT and zakat. It sets clearance procedures and collects duties and import VAT.
