Top Logistics Terminology

 top logistics terminology


Every industry has its list of terms, and we can say that the logistics industry is no different. If you haven’t had a long history in the industry, you might still find a term that throws you even if you’ve been around for a while.

Here’s a list of top logistics terminology so that you never have to feel left out in the middle of things again.

Top Logistics Terminology


Backhaul refers to the return trip to home base once the drop-off has been completed and the cargo has officially been delivered. This is important because special safety precautions have to be taken during the backhaul drive to ensure the continued safety of drivers – and any LTL cargo.


Cartage refers to local shipments that are usually in the same state or area. The costs involved with cartage shipments are often less, and the risks and insurance can be considerably less.


While the word sounds pretty fancy, all a consignee really is, is the person you’ll be sending the shipment to. The person who signs the signature at the end destination, or the company who receives the shipment? That’s your consignee.

Landed Cost

The landed cost of a product refers to the final shelf cost when the product reaches the customer. This is used when companies calculate their costing, and it’s important for logistics companies to use in calculating their shipping rates.


Less-than-container loads refer to smaller shipments that can be shipped alongside other, larger shipments. Often the costs involved with shipping less-than-container shipments are increased, and suppliers might have to wait a little longer to receive their shipment depending on where they are in the chain.

Full-Container Load

Full-container-load shipments refer to larger shipments that often have their own container. For shipments like these, specialized insurance requirements incorporating the value of the shipment in case of any loss or damage is essential.


Incoterms facilitate international commerce by promoting common and precise understanding between a seller and buyer of their respective operational obligationscosts and passage of risk of cargo loss or damage under various specified delivery arrangements. Citing a particular Incoterm in a sales contract will also aid transportation intermediaries, banks, and service providers involved in shipping or financing the goods better performing their functions. Incoterms are also designed to reduce the likelihood of disputes between a seller and buyer over their respective responsibilities and costs.

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