Freight and Shipping Terms Glossary
For your convenience, Logistics Worldwide offers a Freight Terms Glossary compiled by the Georgia Institute of Technology in association with the Georgia Tech Supply Chain & Logistics Institute. The glossary includes over 750 freight, shipping and supply chain & logistics terms for all modes of transportation for our visitors and customers. To use the glossary, simply click on the letters corresponding to the word or phrase you are searching for.
Using this glossary can help you determine the definitions of specific acronyms, slang, payment, credit, and other shipping terms. We believe you’ll find all your transportation industry definition of terms in this glossary but if you are unable to find what you are searching for or need clarification, please contact us and we will be more than happy to assist you.
Logistics Worldwide is pleased to provide a glossary of freight and shipping terms for all modes of transportation to our visitors and customers. To use the glossary, click on the letters below corresponding to the word or acronym you are searching for. If you are unable to find what you are searching for, please contact us and we will be happy to assist you.
Abbreviation for "Letter of Credit."
Loaded aboard a vessel.
Refers to the freight shipped; the contents of a shipment.
Movement of cargo by water from one country through the port of another country, thence, using rail or truck, to an inland point in that country or to a third country. As example, a through movement of Asian cargo to Europe across North America.
- Landed Cost
The total cost of a good to a buyer, including the cost of transportation.
- Landing Certificate
Certificate issued by consular officials of some importing countries at the point or place of export when the subject goods are exported under bond.
- Landing Gear
A support fixed on the front part of a chassis (which is retractable); used to support the front end of a chassis when the tractor has been removed.
A maritime industry abbreviation for "Lighter Aboard Ship." A specially constructed vessel equipped with an overhead crane for lifting specially designed barges and stowing them into cellular slots in an athwartship position.
Laydays/Cancelling (date): Range of dates within the hire contract must start.
Abbreviation for "Less than Container Load." The quantity of freight which is less than that required for the application of a container load rate. Loose Freight.
- Less Than Truckload
Also known as LTL or LCL.
- Letter of Credit (LC)
A document, issued by a bank per instructions by a buyer of goods, authorizing the seller to draw a specified sum of money under specified terms, usually the receipt by the bank of certain documents within a given time. Some of the specific descriptions are:
- Letter of Credit (LC) - Back-to-Back
A new letter of credit issued to another beneficiary on the strength of a primary credit. The second L/C uses the first L/C as collateral for the bank. Used in a three-party transaction.
- Letter of Credit (LC) - Clean
A letter of credit that requires the beneficiary to present only a draft or a receipt for specified funds before receiving payment.
- Letter of Credit (LC) - Confirmed
An L/C guaranteed by both the issuing and advising banks of payment so long as seller's documents are in order, and the L/C terms are met. Only applied to irrevocable L/C's. The confirming bank assumes the credit risk of the issuing bank.
- Letter of Credit (LC) - Deferred Payment
A letter of credit issued for the purchase and financing of merchandise, similar to acceptance-type letter of credit, except that it requires presentation of sight drafts payable on an installment basis.
- Letter of Credit (LC) - Irrevocable
An instrument that, once established, cannot be modified or cancelled without the agreement of all parties concerned.
- Letter of Credit (LC) - Non cumulative
A revolving letter of credit that prohibits the amount not used during the specific period from being available afterwards.
- Letter of Credit (LC) - Restricted
A condition within the letter of credit which restricts its negotiation to a named bank.
- Letter of Credit (LC) - Revocable
An instrument that can be modified or cancelled at any moment without notice to and agreement of the beneficiary, but customarily includes a clause in the credit to the effect that any draft negotiated by a bank prior to the receipt of a notice of revocation or amendment will be honored by the issuing bank. Rarely used since there is no protection for the seller.
- Letter of Credit (LC) - Revolving
An irrevocable letter issued for a specific amount; renews itself for the same amount over a given period.
- Letter of Credit (LC) - Straight
A letter of credit that contains a limited engagement clause which states that the issuing bank promises to pay the beneficiary upon presentation of the required documents at its counters or the counters of the named bank.
- Letter of Credit (LC) - Transferable
A letter of credit that allows the beneficiary to transfer in whole or in part to another beneficiary any amount which, in aggregate, of such transfers does not exceed the amount of the credit. Used by middlemen.
- Letter of Credit (LC) - Unconfirmed
A letter of credit forwarded to the beneficiary by the advising bank without engagement on the part of the advising bank.
- Letter of Indemnity
In order to obtain the clean bill of lading, the shipper signs a letter of indemnity to the carrier on the basis of which may be obtained the clean bill of lading, although the dock or mate's receipt showed that the shipment was damaged or in bad condition.
Some governments require certain commodities to be licensed prior to exportation or importation. Clauses attesting to compliance are often required on the B/L. Various types issued for export (general, validated) and import as mandated by government(s).
A legal claim upon goods for the satisfaction of some debt or duty.
A vessel discharges part of its cargo at anchor into a lighter to reduce the vessel's draft so it can then get alongside a pier.
An open or covered barge towed by a tugboat and used mainly in harbors and inland waterways to carry cargo to/from alongside a vessel.
Refers to carriage of goods by lighter and the charge assessed therefrom.
Transportation from one city to another as differentiated from local switching service.
A vessel sailing between specified ports on a regular basis.
- Liquidated Damages
The penalty a seller must pay if the construction project does not meet contractual standards or deadlines.
The amount in degrees that a vessel tilts from the vertical.
1.06 liquid U.S. quarts or 33.9 fluid ounces.
- Lloyds' Registry
An organization maintained for the surveying and classing of ships so that insurance underwriters and others may know the quality and condition of the vessels offered for insurance or employment.
- Load Ratio
The ratio of loaded miles to empty miles.
- Local Cargo
Cargo delivered to/from the carrier where origin/destination of the cargo is in the local area.
Logistics is that part of the supply chain process that plans, implements, and controls the
efficient, effective flow and storage of goods, services, and related information from the point
of origin to the point of consumption in order to meet customers' requirements.
- Long Ton
Individual employed in a port to load and unload ships.
A trailer or semi-trailer with no sides and with the floor of the unit close to the ground.