Understanding logistics terms and glossaries is an important factor when dealing with logistics providers.

Why?

Because if you don’t know the terms, you can easily get confused or worse, make costly mistakes.

Let’s say you’re in a negotiation with a 3PL provider.

They casually mention "Reverse Logistics," "cross-docking capabilities," and "Demurrage."

You nod along, but inside, you're lost.

By the end of that meeting, your lack of logistics fluency just cost your company $47,000 annually in suboptimal shipping rates.

Sound familiar? You're not alone.

In the over $8 trillion global logistics industry, language is power

Each industry has its own set of terms specific to the industry.

The logistics industry is no exception.

There are hundreds of delivery terms out there, and understanding them facilitates coordination, collaboration, and timely decision-making among stakeholders.

In this blog post, we have highlighted 100 delivery terms you should know, so you don’t miss out when making deals with a logistics company or feel lost when some words are being mentioned.

100 Delivery Terms You Need to Know in 2025

Accessorial Charge: Amount billed for additional, supplemental, or special services provided, usually a flat fee.
Advanced Shipping Notice (ASN): A notification sent by a supplier to the recipient detailing the contents and shipment of a delivery before it arrives.
Air Freight: Transportation of products via air transportation methods.
Air Waybill (AWB): A document issued by an airline or freight forwarder when goods are shipped by air.
ATA: Actual time of arrival
ATD: Actual time of departure
Backhaul: The return trip of a vehicle after delivering cargo, often used to transport goods back to the point of origin or another destination.
Bill of Lading (BOL): A legal document between the shipper and carrier detailing the type, quantity, and destination of the goods being shipped.
Benchmark: In logistics, benchmarks refer to KPI thresholds set by an organization to measure supply chain performance.
Billing: A process commonly performed by the carrier that determines the total charges for a completed order.
Bulk Cargo: Unpackaged goods transported in large quantities, such as grains, coal, or petroleum, usually loaded directly into a vessel's hold.
Carrier: A company that transports freight shipments from one location to another, typically on owned assets, by ocean, air, or land.
Cash On Delivery (COD): This is a payment method where the recipient pays for the goods at the time of delivery, rather than in advance.
Consignee: The individual or company receiving a shipment.
Contract Freight: A long-term pricing agreement between a shipper and a carrier, where a carrier offers fixed pricing for a committed volume of freight.
Customs Broker: A third-party entity that assists vendors in dealing with import or export customs.
Custom Clearance: Customs clearance is the process by which goods are approved by customs authorities for import or export. This involves submitting required documentation and information, paying applicable duties and taxes, and ensuring compliance with regulations and laws.
Cross-Docking: A logistics practice where products from suppliers are directly distributed to customers or retail stores with minimal handling and storage time.
Deadhead: The movement of a transport vehicle, such as a truck or aircraft, without any cargo, often to position it for the next load.
Dead on Arrival: It is used to describe a product that is damaged upon delivery to its destination.
Declared Value for Carriage: The value of goods according to the shipper. This amount is declared on a BOL.
Dedicated Truck: Refers to a driver pulling freight for one specific customer only, where only that load is on the truck. No partial loads can be added.
Demurrage: Charges levied for the extended use of containers or vessels beyond the allowed free time.
Dimensional Weight: A pricing technique for shipping freight, considering the package's dimensions to calculate the cost, rather than just its weight.
Dispatch: The office in charge of allocating assets to haul shipments.
Distribution Center (DC): A location where goods and materials are stored until they are ready to be moved to their end destination.
Domestic Transportation: The transportation of goods within a country by land or air.
Drayage: Short-distance freight transport, typically as part of a longer overall journey.
Dunnage: Materials used to protect and secure cargo during transport.
EDI (Electronic Data Interchange): The electronic interchange of business information using a standardized format, enabling automated data exchange between trading partners.
Fleet Management: The management and coordination of a fleet, including maintenance, routing, and driver management.
Freight Bill: An invoice from the carrier to the shipper, detailing the charges for the transportation of goods.
Freight Forwarder: A company that arranges shipments and logistics on behalf of shippers, often consolidating smaller shipments into larger ones.
Free on Board (FOB): Used to decide who is liable for goods that are damaged during shipment.
Full Truckload (FTL): Refers to shipments that require a full container for transport. When shippers use FTL, the container is dedicated to their shipment only.
Gross Weight: The total weight of goods, including the container or vehicle.
Groupage: A shipping term used when small shipments from different customers are consolidated into one full container. It reduces shipping costs by sharing the container space.
Handling Costs: The cost of moving or transferring inventory.
Hazardous Materials (Hazmat): Substances that pose a risk to health, safety, or the environment and require special handling and transportation procedures.
In-Bond Shipment: A shipment that has not cleared customs but is allowed to move within or through a country under customs control.
Inbound Logistics: Refers to the transportation and storage of incoming goods into your supply chain
Informal Settlement: The unregulated and illicit use of land for residential purposes in logistics can hurt supply chain and distribution activities. These settlements often lack formal facilities, making transportation and delivery services difficult.
Intermodal Transportation: The use of multiple modes of transportation (e.g., truck, rail, ship) to move goods from the origin to the destination.
Inventory: A complete list of items, such as property, goods in stock. It refers to all the items, goods, merchandise, and materials held by a business for selling in the market to earn a profit.
Inventory Turnover Rate: A metric that measures how frequently inventory is sold and replaced during a specific period.
Just-in-Time (JIT) Inventory: An inventory management system where materials are produced or acquired only as demand requires, minimizing inventory costs.
Key Performance Indicator (KPI): In logistics, KPIs are critical metrics that highlight the performance of your supply chain.
Lane: A specific route between two locations regularly used for the transportation of goods.
Last Mile: When a truck transports cargo over a short distance to deliver it to the final destination, like from a storage warehouse to the consignee's facility.
Lead Time: The time between placing an order and receiving the goods.
Less Than Container Load (LCL): Cargo that doesn't fill an entire container and is often consolidated with other shipments.
Less than Truckload (LTL): A shipping service for relatively small freight loads that do not require a full truck's capacity, combining shipments from multiple customers.
Load Tender: The process by which a shipper offers a shipment to a carrier, often including details such as pickup and delivery times, location, and freight characteristics.
Mileage Rate: A rate that is determined by the number of miles an order is shipped.
Milk Run: A delivery route involving multiple pickups or drop-offs to maximize efficiency and reduce transportation costs.
Network Analysis: The careful analysis of a logistics network. They are designed to analyze warehousing, transportation, and other means of distribution.
Non-Vessel Operating Common Carrier (NVOCC): A company that acts as a carrier but does not operate the vessels that transport the cargo.
Order: A shipment of goods.
Order Cycle Time: The total time from when a customer places an order to when they receive it.
Outsource: The process of using a third party to complete functions that were previously performed in-house.
Order Fulfillment: The complete process from receiving, processing, packing, and delivering an order to the customer.
Packing: Warehousing that involves packaging goods or products ordered by the customer for immediate delivery.
Packing List: A document that specifies the quantity and location of each item in a package.
Pallet: A flat structure used to support and transport goods, making them easier to move with forklifts and other handling equipment.
Picking: A gathering process in the warehouse to fulfill the orders of the customers.
Port: A harbor where ships load and unload cargo.
Private Carrier: A transportation company that transports goods exclusively for a specific entity, not available for hire by the general public.
Pro Forma Invoice: A preliminary bill of sale sent to buyers in advance of a shipment or delivery of goods, detailing the goods, prices, and terms.
Procurement: The process of obtaining goods and services from external suppliers.
Putaway: Placing goods in specific locations in the warehouse.
Real-Time: In logistics, this term refers to a shipper’s ability to track an order from origin to destination.
Receiving: This is when the goods arrive at the warehouse.
Reorder Point: The inventory level at which a new order should be placed to replenish stock before it runs out.
Reporting: A report that contains information and an explanation about the warehouse management process.
Returns: The process of products being sent back from customers to manufacturers or distributors.
Reverse Logistics: The process of moving products from customers back to manufacturers or distributors for repair, recycling, or disposal.
Route Optimization: The process of determining the most efficient transportation routes to minimize time and cost.
Routing Guide: A document that outlines the preferred shipping methods, carriers, and routes to be used for transporting goods, ensuring consistency and efficiency.
Scalability: How quickly a supplier can increase productivity to meet rising demand
Scorecard: A tool used by retailers to grade their suppliers’ ability to deliver products on time and in full.
Shipper: The person or company that is sending goods or cargo to a receiver or consignee.
Shipping: Delivering goods to customers via expediting service or company-owned ships.
Short Shipment: An order that is incomplete or missing agreed-upon parts.
Stock Keeping Unit (SKU): A unique identifier for each distinct product or item in inventory.
Supply Chain: The system linking organizations, activities, information, and resources to obtain, manufacture, and transport goods from origin to destination.
Supply Chain Management (SCM): The management of the flow of goods, information, and finances throughout the supply chain from suppliers to customers.
Tare Weight: The weight of an empty vehicle or container, which is deducted from the gross weight to determine the net weight of the cargo.
Third-Party Logistics (3PL): Companies that provide outsourced logistics services to support various aspects of the supply chain, such as warehousing, transportation, and order fulfillment.
Third-Party Warehousing: Using external warehouses to store inventory, providing flexibility and saving costs.
Traceability: In shipping, this term refers to real-time or close to real-time location tracking.
Track and Trace: Following a shipment’s movement from origin to destination.
Truck Order Not Used (TONU): When a shipper orders a truck to pick up, but cancels after a truck has been dispatched.
Value-Added Partner: A strategic partner that creates value for a firm that goes beyond benefits received from a transaction.
Vendor Managed Inventory (VMI): A supply chain strategy where suppliers manage inventory levels and replenishment for their customers.
Visibility: Access to key data within the supply chain.
Warehouse: A place where goods or materials are stored, either as raw materials, semi-finished goods, or finished goods.
Warehouse Management System (WMS): Software that helps manage and optimize warehouse operations, including inventory tracking and order fulfillment.
Warehouse Network: Refers to a vendor’s chain of warehousing locations throughout a given geographic area.
Waybill: A document issued by a carrier providing details and instructions for the transportation of a shipment.
Zone Picking: An order picking method that divides the warehouse into multiple zones and assigns pickers to specific zones.

Conclusion

In logistics, knowing the right terms helps you make smarter decisions.

The more familiar you are with the terms, the more confidently you can navigate conversations, spot red flags, and seize better deals.

In an $8 trillion industry where every detail counts, fluency in logistics isn’t optional

So don’t just nod along. Learn the terms. Ask questions. Use the glossary.

Don't just stop at this list; go for further resources.

Remember, a good understanding of delivery terms improves communication, which leads to an efficient supply chain.

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Onyeka Ekwemozor

Logistics Glossary: 100 Delivery Terms to Know in 2025 (Updated)