In the era of integration and globalization, logistics has become an important link in the global supply chain. However, to operate effectively, businesses need to understand the basic logistics terms. The following article by Vietsun Logistics will help you understand these specialized concepts correctly, sufficiently and simply.
Multimodal transport and logistics are important links connecting the global supply chain.
What is logistics?
Similar to “Marketing”, the concept of logistics is difficult to translate literally because it includes many stages. Simply put, logistics is the process of managing and optimizing the flow of goods – from input materials until the finished product reaches the final consumer.
Logistics includes many activities such as: transportation, warehousing, customs procedures, distribution... This is an important factor to help save costs, optimize time and improve the competitiveness of businesses.
Why is it important to understand logistics terminology?
- Standardizing international communication: Logistics is a global industry, requiring a unified system of concepts for all parties to understand correctly when transacting.
- Increase business efficiency: Understanding logistics terminology correctly helps businesses avoid errors in contracts, transportation or customs procedures.
- Improve competitiveness: Providing logistics knowledge helps Vietnamese enterprises confidently participate deeply in the global value chain.
Master logistics terminology to improve operational efficiency and supply chain management.
Top 20 common logistics terms
Below is a list of those logistics terminology common, explained easily:
- ABC (Activity-based costing): Activity-based costing model.
- AMS (Automated Manifest System): Procedures for declaring imported goods into the US, required 48 hours before ship departure.
- BO (Booking Confirmation): Airline/shipping line booking confirmation.
- BAF (Bunker Adjustment Factor): Fuel surcharge due to fluctuations in gasoline prices.
- CRD (Cargo Ready Date): The date the goods are ready to be handed over to the carrier.
- CMA (Cargo Declaration Amendment Fee): Fee for amending cargo declaration.
- CFS (Container Freight Station Fee): Costs incurred when loading/unloading small items at CFS warehouse.
- CIC (Container Imbalance Charge): Container imbalance surcharge.
- CIF (Cost, Insurance, Freight): Delivery terms include cost + insurance + freight.
- COD (Change of Destination): Destination port change surcharge.
- CO (Certificate of Origin): Certificate of origin of goods.
- CQ (Certificate of Quality): Certificate of goods quality.
- D/O (Delivery Order fee): Delivery order fee.
- HBL (House Bill of Lading): Bill of lading issued by the freight forwarder.
- LCL (Less than Container Load): LCL – not enough to fill a container.
- FCL (Full Container Load): Full container load.
- FOB (Free on Board): Terms of delivery: the seller completes his responsibility when the goods are on board the ship.
- MSDS (Material Safety Data Sheet): Chemical safety data sheet.
- PL (Packing List): Packing list details.
- Quota: Import and export quotas are regulated by the State.
Conclude
Mastering logistics terminology not only helps businesses easily communicate with international partners, but also improves professionalism and efficiency in operations.
👉 If you are looking for comprehensive, professional and cost-optimized logistics services, please contact Vietsun Logistics immediately - a pioneer in transportation, warehousing, customs procedures and complete logistics solutions for domestic and foreign enterprises.
Hotline: 028 3826 9539
📧 Email: admin@vietsunlogistic.com
🌍 Website: www.vietsunlogistic.com
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