Global Logistics Key Terms

Understand how to ship your goods around the world by learning about global logistics

If you're in the manufacturing business and you're looking to expand into a global market, you'll benefit from learning global logistics key terms. Whether you'll be shipping by air, sea or land, you'll find global logistics has a language all its own. From what the term logistics means to documents you'll need to be familiar with in relation to global logistics, such as air waybill, commercial invoice and bill of lading, you'll find there are many global logistics key terms you'll likely use on a regular basis.

 

Logistics

Logistics refers to the entire process of the shipment of goods. It includes the transportation and storage methods of these goods and shipping services available.
Try: Logistics World provides several definitions of the word logistics as it relates to the shipping and receiving of goods.

Air waybill (AWB)

An air waybill, or AWB, is a tracking document used in the shipment of goods. In addition to tracking purposes, an air waybill also serves as an invoice in overseas shipments and as a receipt of shipment between the shipper and the carrier.
Try: IQ Global Logistics has an extensive explanation of an air waybill and how and why it is used.

Bill of lading

Much like an air waybill, a bill of lading is a document that lists what is being shipped. It acts as a proof of contract between a carrier and a shipper. A bill of lading is used for goods shipped by land or sea.
Try: BusinessDictionary.com offers a definition of bill of lading, including a list of information that is required on this document.

Commercial invoice

Whenever goods are shipped internationally, a commercial invoice is required. This is a document that accompanies a shipment and must contain certain information about the contents of the shipment, including description, quantity and declared value.
Try: DHL thoroughly explains what a commercial invoice is and even provides an example.

Bonded warehouse

If your shipped goods need a place to be stored while you're awaiting payment of customs duties or for payment for the shipment by the receiver, you'll need a bonded warehouse. A bonded warehouse is a place where shipments can be held until necessary payments are made.
Try: World Trade Distribution explains what a bonded warehouse is and how it operates.

Free Trade Zone (FTZ)

Many international shipments are subject to custom duties and tariffs. However, some areas are free of these restrictions. Goods may be shipped, stored and even manufactured in these areas and no customs charges are paid. These areas are known as a Free Trade Zone (FTZ).
Try: Find a detailed description of what a Free Trade Zone is, and even a list of those places around the globe which are FTZs, at EconomyWatch.

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