Glossary

The words of freight, explained

203 terms our desk uses every day, defined plainly, with how each one works in India.

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2

20 ft container truck · 20 ft closed bodyRoad

A truck with a fully enclosed, roughly 20 ft long box body, used for light to medium loads that need weather protection. Payload depends on the chassis and its registered gross vehicle weight.

In India: Common for intra-city and regional FMCG, e-commerce and parcel movement where volume, not weight, is the limit. It is not the same as a 20 ft ISO shipping container, although the names are often confused.

2 to 8 °C · cold chain range, refrigeratedCold chain

The +2 °C to +8 °C band required by most vaccines, insulin, many biologics and some diagnostics. Product must neither warm above 8 °C nor freeze, because freezing can permanently damage many of these products.

In India: Most vaccines in India’s immunisation programme are stored and moved at +2 to +8 °C. Pharma shippers generally expect validated packaging or reefers, continuous data logging and documented excursion handling in line with CDSCO’s distribution guidance.

3

32 ft container truck · 32 ft closed body, 32 ft SXL, 32 ft MXLRoad

A truck with an enclosed 32 ft cargo box, the standard long-haul vehicle for volumetric cargo such as FMCG, electronics, apparel and e-commerce. It comes in single-axle (SXL) and multi-axle (MXL) versions with very different payloads.

In India: The workhorse of Indian full-truckload lanes between metros and hubs. Buyers should always state SXL or MXL in a quote request, since the legal payload and the rate differ substantially.

3PL (third-party logistics) · 3PL, contract logisticsWarehousing

An outsourced provider that runs physical logistics functions for a shipper, such as transport, warehousing, inventory handling or in-plant material movement, usually under a multi-year contract with agreed service levels.

In India: Indian 3PL contracts commonly cover plant inbound and outbound movement, finished-goods warehouses and C&F operations, priced per unit handled, per square foot or as a fixed-plus-variable fee.

4

4PL (fourth-party logistics) · 4PL, lead logistics providerOperations & tech

A provider that manages a shipper’s whole logistics network, including other carriers and 3PLs, on the shipper’s behalf. The value is in planning, visibility, performance measurement and vendor management rather than owning trucks or warehouses.

In India: In India 4PL work usually combines a control tower, transporter management, freight audit and KPI reporting across many regional carriers. It suits shippers with fragmented transporter bases and high placement or detention losses.

A

Air waybill (AWB) · AWB, MAWB, HAWBAir, sea & rail

The transport document for air cargo, serving as the contract of carriage and receipt. Unlike an ocean bill of lading it is non-negotiable and is not a document of title. A master AWB (MAWB) is issued by the airline to the forwarder; a house AWB (HAWB) is issued by the forwarder to each shipper in a consolidation.

In India: AWB numbers are 11 digits, starting with the airline’s three-digit prefix. Indian exporters and importers track air cargo against the AWB, and customs filings at air cargo complexes reference the MAWB and HAWB.

Authorised Economic Operator (AEO) · AEOEXIM & customs

A customs trusted-trader accreditation based on the World Customs Organization SAFE Framework. Accredited entities with a strong compliance and security record receive faster, lighter customs treatment.

In India: India’s AEO programme is administered by CBIC, with tiers for importers and exporters (AEO-T1, T2, T3) and separate accreditation for logistics operators (AEO-LO). Benefits include fewer examinations, direct port delivery eligibility and, at higher tiers, deferred duty payment.

Axle load · permissible axle weightRoad

The maximum weight a single axle or axle group may legally carry on the road. Together with the number and type of axles, it sets a truck’s legal gross vehicle weight and therefore its payload.

In India: Limits are set under the Motor Vehicles Act and CMVR. A Ministry of Road Transport and Highways notification of July 2018 raised the permissible axle weights for goods vehicles, increasing legal payloads of many existing trucks. Loads beyond the limit need special permission as overweight cargo.

B

Backhaul · return load, wapsi loadRoad

A load carried on a vehicle’s return journey after it has delivered its outbound cargo. A backhaul reduces empty running and lets the carrier price both legs more competitively.

In India: Indian lanes are strongly imbalanced (for example, more cargo leaves industrial western and southern states than returns), so return-load rates on the weak direction are often much lower than forward rates. Shippers offering predictable return loads can negotiate better round-trip pricing.

Belly cargoAir, sea & rail

Freight carried in the lower-deck holds of passenger aircraft, alongside passenger baggage. Capacity and dimensions are limited by the hold size and door openings.

In India: A large share of India’s domestic air cargo moves in the bellies of scheduled passenger flights, which gives wide network coverage but restricts piece size and some dangerous goods.

Bill of entry · BE, BoEEXIM & customs

The import declaration filed with customs, stating the description, classification, value and origin of goods so that duty can be assessed. Types include bills for home consumption, for warehousing (into-bond) and ex-bond clearance.

In India: Filed electronically under Section 46 of the Customs Act, 1962 through ICEGATE, usually by a licensed customs broker. Advance or prior filing before the vessel or aircraft arrives is encouraged to cut dwell time.

Bill of lading (B/L) · B/L, BL, OBLEXIM & customs

The document issued by an ocean carrier or its agent that acts as a receipt for goods, evidence of the contract of carriage and, when negotiable, a document of title. Whoever holds the original negotiable B/L can take delivery at destination.

In India: Letters of credit in Indian trade typically require a clean on-board negotiable B/L. Where title transfer is not needed, a sea waybill avoids the delays of couriering originals.

Blast freezerCold chain

Equipment that freezes product rapidly using very cold, high-velocity air until the core reaches the target frozen temperature. Fast freezing limits ice-crystal damage and is different from a holding freezer, which only maintains temperature.

In India: Used by meat, seafood, frozen snacks and ice-cream processors before product enters frozen storage or reefer transport. Reefer trucks are not designed to freeze warm product; loads should be at target temperature before dispatch.

Related: Frozen · Cold storage · Pre-cooling · Reefer truck

Bonded warehouseWarehousing

A warehouse where imported goods are stored without payment of customs duty until they are cleared for domestic use or re-exported. The duty liability is secured by a bond rather than paid upfront.

In India: Bonded warehouses are licensed under the Customs Act, 1962. Goods enter on a warehousing bill of entry and leave on an ex-bond bill of entry; the Manufacture and Other Operations in Warehouse Regulations, 2019 also allow manufacturing inside bond.

Bulk liquid transportRoad

Movement of liquids such as edible oils, chemicals, fuels, milk or solvents in tankers, ISO tanks or flexitanks rather than in drums or packages. Tank material, cleaning, compatibility with the previous load and hazard class all govern what can be carried.

In India: Petroleum and many chemicals need PESO-licensed tankers and trained drivers, while food liquids need food-grade, clean tanks. Shippers should ask for the last three cargoes carried and a wash certificate.

Related: Tanker · ISO tank · Flexitank · PESO · Go deeper →

C

C&F agent / CFA · CFA, C&F, carrying and forwarding agentWarehousing

An agent appointed by a manufacturer to receive stock at a regional depot, store it and dispatch it to distributors or customers against the manufacturer’s invoices. The CFA does not own the stock and is paid a commission or fee.

In India: A long-established channel in Indian FMCG and pharma. Because stock moving from the factory to a CFA in another state is a stock transfer between the company’s own GST registrations, it moves on the company’s tax invoice and e-way bill.

Cargo charter flight · air charterAir, sea & rail

Hiring an entire aircraft for one shipper or one consignment instead of buying space on scheduled flights. Used for urgent, outsized or high-value cargo, or to reach airports without suitable scheduled capacity.

In India: Non-scheduled flights in India are operated by holders of a DGCA Non-Scheduled Operator Permit (NSOP) or by scheduled carriers under charter arrangements; foreign charters need separate permissions.

Carriage by Road Act, 2007Contracts & pricing

The Indian law that governs common carriers of goods by road. It requires registration of common carriers, sets the documents to be used at booking and defines when and how far the carrier is liable for loss, damage or delay.

In India: The Act replaced the Carriers Act, 1865 and operates with the Carriage by Road Rules, 2011. A common carrier must register with the state transport authority, the consignor executes a goods forwarding note, and the carrier’s liability depends on whether a value was declared. Claims must be notified to the carrier in writing within the period the Act prescribes.

CBM (cubic metre) · cubic metre, m³Operations & tech

The standard metric unit of cargo volume: length × width × height in metres. One CBM is about 35.3 cubic feet.

In India: Used for sea freight (especially LCL, typically charged per CBM or per tonne, whichever is higher) and for warehouse and container planning. Indian road PTL quotes more often use CFT.

Central Motor Vehicles Rules, 1989 (CMVR) · CMVRRoad

The central rules under the Motor Vehicles Act, 1988 that govern vehicle construction, dimensions, weights, safety equipment, fitness, registration and the carriage of dangerous goods.

In India: Rule 93 sets vehicle dimension limits, and Rules 129 to 137 cover the transport of dangerous or hazardous goods, including class labels, the emergency information panel and the responsibilities of the consignor, transporter and driver.

Central Public Procurement Portal (CPPP) · CPPP, eprocureContracts & pricing

The Government of India portal where central ministries, departments and many public sector undertakings publish tenders and run e-procurement.

In India: Logistics and transport tenders from central bodies and PSUs are published on CPPP (eprocure.gov.in) or on the organisation’s own e-procurement system, while many standard services are bought through GeM.

CFR (Cost and Freight) · CFR, C&F, CNFEXIM & customs

Incoterm for sea and inland waterway: the seller clears the goods for export, loads them on board and pays freight to the named destination port, but risk passes to the buyer once the goods are on board at origin.

In India: Common in Indian export pricing. The buyer bears transit risk from loading, so the buyer arranges its own marine insurance.

CFT (cubic foot) · cubic feet, kg per cftOperations & tech

A unit of volume equal to one foot × one foot × one foot, about 0.0283 CBM. In freight it is used to convert bulky, light cargo into a chargeable weight at an agreed kilograms-per-CFT factor.

In India: Indian PTL carriers commonly quote a kg-per-CFT conversion in the contract; the factor varies by carrier and cargo type, so compare it across quotes along with the per-kg rate.

Chargeable weightOperations & tech

The weight on which freight is billed: the higher of the actual gross weight and the volumetric weight. It stops light, bulky cargo from occupying space at the price of dense cargo.

In India: Applied across Indian air freight, courier and PTL road freight. Minimum chargeable weights per consignment are also common in PTL.

ChilledCold chain

A temperature range above freezing, typically around 0 °C to +8 °C depending on the product, used to slow spoilage without freezing. The exact set point comes from the product specification.

In India: Covers milk and dairy, fresh meat, many fruits and vegetables and ready-to-eat foods. Some produce, such as bananas, is damaged by temperatures that are too low, so one chilled truck cannot carry every chilled product.

CIF (Cost, Insurance and Freight) · CIFEXIM & customs

Incoterm for sea and inland waterway: as CFR, plus the seller buys marine insurance for the buyer. Under Incoterms 2020 the minimum cover is Institute Cargo Clauses (C), unless agreed otherwise. Risk passes on board at origin.

In India: Frequently used for Indian exports of bulk and commodity cargo. On the import side, Indian customs assesses duty on a CIF-based assessable value whatever term the contract uses.

CIP (Carriage and Insurance Paid To) · CIPEXIM & customs

Incoterm for any mode: the seller pays carriage to the named destination and buys insurance, with risk passing when goods are handed to the first carrier. Incoterms 2020 raised the minimum cover to Institute Cargo Clauses (A).

In India: Suits Indian exporters shipping containers or air cargo who want to offer a delivered price with insurance while handing over risk at their own inland point or ICD.

Cold chainCold chain

An unbroken series of temperature-controlled storage, handling and transport steps that keeps a product within its specified range from production to consumption. A single break can spoil the product even if every other step was correct.

In India: India’s cold chain spans pack houses, cold stores, reefer trucks and last-mile insulated boxes. The weakest points are usually loading docks, cross-docks and door openings during multi-drop delivery rather than the linehaul itself.

Cold storage · cold storeCold chain

A warehouse with insulated, refrigerated chambers held at chilled or frozen temperatures. Facilities may be single-commodity or multi-commodity, with separate chambers for different ranges.

In India: A large share of Indian cold storage capacity is used for potatoes and other produce, and capacity is concentrated in a few states. Pharma and frozen-food shippers usually need facilities with temperature mapping, alarms and backup power.

Common carrierRoad

A person or business that transports goods by road for hire for anyone, as opposed to a private carrier moving only its own goods. The law places specific registration and liability duties on common carriers.

In India: Under the Carriage by Road Act, 2007 a common carrier must be registered and is liable for loss or damage to goods in its custody, subject to the conditions and limits in the Act and Rules.

ConsigneeDocuments & tax

The party to whom goods are sent and who is entitled to take delivery, as named on the consignment note, bill of lading or air waybill.

In India: On an Indian LR the consignee’s name, address and GSTIN must match the tax invoice and e-way bill; mismatches cause delivery disputes and problems during roadside checks.

ConsignorDocuments & tax

The party that hands goods to a carrier for transport, usually the seller or shipper, as named on the transport document.

In India: The consignor normally generates the e-way bill (Part A) and signs the goods forwarding note or booking instruction. For To-Pay bookings the consignor ships but the consignee pays the freight.

Related: Consignee · Lorry receipt (LR) · E-way bill · To-Pay

Consolidation · groupageOperations & tech

Combining several small shipments from one or many shippers into a single larger load or container so that each pays only for its share of a full-load cost.

In India: The basis of Indian PTL networks, LCL sea freight and air consolidations run by forwarders. The trade-off is extra handling and some added transit time at hubs.

Container freight station (CFS) · CFSEXIM & customs

A customs-notified facility near a port or ICD where containers are stuffed and destuffed, LCL cargo is aggregated or split, and goods are examined and cleared.

In India: Most imported containers at major Indian ports historically moved to a CFS for clearance. Direct port delivery and direct port entry let eligible traders bypass the CFS to save time and charges.

Container stuffing and destuffing · stuffing, destuffing, de-stuffingEXIM & customs

Stuffing is loading cargo into a container; destuffing is unloading it. How cargo is stowed, braced and sealed determines both damage risk and customs treatment.

In India: Export containers are either factory-stuffed at the exporter’s premises under self-sealing with an RFID e-seal, or stuffed at a CFS or ICD under customs supervision. Import containers are destuffed at a CFS or at the importer’s premises under direct port delivery.

Control tower · logistics control towerOperations & tech

A central team and system that monitors shipments, vehicles and exceptions across a logistics network in near real time, and acts on them. It joins data from GPS, transporters, warehouses and ERPs into one view with alerts and KPIs.

In India: Indian control towers typically track vehicle placement against indents, loading and unloading dwell, detention, route deviation, temperature for cold chain and POD collection across many transporters.

Controlled room temperature (CRT) · CRT, ambient controlledCold chain

A controlled ambient range for products that must not overheat or freeze, commonly 15 °C to 25 °C in pharmaceutical practice, with the exact limits taken from the product label.

In India: Many medicines in India are labelled "store below 25 °C" or "store below 30 °C". In Indian summers an ordinary closed truck can exceed these limits, so CRT pharma often moves in temperature-controlled vehicles.

CPT (Carriage Paid To) · CPTEXIM & customs

Incoterm for any mode: the seller pays carriage to the named destination, but risk passes to the buyer when the goods are handed to the first carrier.

In India: The container and air equivalent of CFR. Useful for Indian exporters handing containers to a carrier at an ICD rather than at the ship’s rail.

Credit period · payment termsContracts & pricing

The number of days after invoice (or after POD submission) within which the customer must pay the freight bill.

In India: Freight credit periods in India vary widely by customer. For suppliers registered as micro or small enterprises, the MSMED Act, 2006 caps agreed payment terms at 45 days, and delayed payments carry statutory interest.

Cross-dockingWarehousing

Transferring inbound cargo directly to outbound vehicles at a dock with little or no storage in between. Goods are sorted by destination and reloaded, usually within hours.

In India: Used by Indian PTL hubs, e-commerce sort centres and retail distribution centres. It cuts inventory holding but needs tight inbound scheduling and good dock discipline.

Related: Hub-and-spoke · Consolidation · Dwell time · Milk run

Customs broker · CHA, custom house agentEXIM & customs

A licensed agent who prepares and files customs declarations and represents importers and exporters before customs authorities.

In India: Licensed under the Customs Brokers Licensing Regulations, 2018 after an examination; the older term "CHA" is still widely used. The broker files bills of entry and shipping bills on ICEGATE and is accountable for due diligence on clients.

D

Dangerous goods (DG) · DG, hazardous cargo, hazmat, DGROperations & tech

Substances or articles that can harm people, property or the environment in transport, grouped into nine UN hazard classes (explosives, gases, flammable liquids and so on). Each mode has its own code: the IMDG Code for sea, IATA Dangerous Goods Regulations for air.

In India: On Indian roads, CMVR Rules 129 to 137 govern hazardous goods: class labels, the emergency information panel, the TREM card, and duties of the consignor, transporter and driver. Petroleum and explosives also fall under PESO.

DAP (Delivered at Place) · DAPEXIM & customs

Incoterm for any mode: the seller delivers the goods on the arriving vehicle, ready for unloading, at the named destination and bears the risk until then. The buyer unloads and handles import clearance and duties.

In India: Used for cross-border road shipments and door deliveries abroad. For imports into India, the Indian buyer remains the importer and pays duty.

DDP (Delivered Duty Paid) · DDPEXIM & customs

Incoterm for any mode: the seller delivers to the named destination cleared for import, bearing all costs and risks including import duties and taxes. It places the maximum obligation on the seller.

In India: Import clearance in India needs an importer with an IEC, so DDP delivery to an Indian buyer needs a structure in which the seller or its agent can lawfully act as importer. Indian exporters should confirm they can register and pay duties in the destination country before quoting DDP.

DeadheadRoad

A vehicle movement with no revenue load, typically to reach the next pickup point. It is one form of empty running.

In India: Positioning a truck from its last unloading point to a new factory is a common deadhead in Indian FTL; carriers build this cost into quotes for lanes where they cannot find a nearby load.

Debit noteDocuments & tax

A document issued by a supplier to increase the value billed on an earlier invoice, for example for extra charges discovered after invoicing.

In India: Under Section 34 of the CGST Act, 2017 a supplier issues a debit note when the taxable value or tax on an invoice was lower than it should have been. In freight, debit notes commonly cover detention, extra delivery points or diesel escalation.

Declared valueContracts & pricing

The value of goods that the consignor states to the carrier at booking. It sets the basis of the carrier’s liability and of any valuation charge.

In India: Under the Carriage by Road Act regime, a carrier’s liability for undeclared goods is limited by the Rules, whereas a declared value (sometimes with a surcharge) raises it. Declared value is separate from the invoice value on the e-way bill and from insurance cover.

Dedicated fleetContracts & pricing

Trucks and drivers assigned exclusively to one shipper for an agreed period, usually on a fixed monthly charge plus a variable per-km or per-trip element.

In India: Common in Indian FMCG, dairy, ice-cream and auto-component supply chains where daily volume is steady. The shipper gains guaranteed availability and branding; the key terms are minimum kilometres, utilisation, driver cost and diesel linkage.

Dedicated Freight Corridor (DFC) · DFC, EDFC, WDFCAir, sea & rail

Railway lines built for freight trains only, allowing heavier, longer and faster goods trains than mixed-traffic lines.

In India: Built by DFCCIL: the Eastern DFC runs from Punjab (near Ludhiana) to Sonnagar in Bihar, and the Western DFC from Dadri in Uttar Pradesh towards JNPT, designed for double-stack container trains.

Delivery challan · DC, challanDocuments & tax

A document that accompanies goods moved without a sale, for example to a job worker, on approval, or for other movements that are not a supply.

In India: Rule 55 of the CGST Rules, 2017 lists when a delivery challan may be used instead of a tax invoice. An e-way bill may still be required for the movement.

DemurrageContracts & pricing

A charge for holding carrier-owned or terminal space beyond the free time allowed. In shipping it usually applies to containers left inside a port terminal or CFS; on railways, to wagons held beyond the free loading or unloading time.

In India: Indian trucking often uses "demurrage" loosely for truck detention. In container trade, shipping lines charge detention for containers kept outside the terminal and terminals charge ground rent or demurrage inside it, so read each tariff separately.

Related: Detention · Detention charges · Dwell time · Rail rake

DepotWarehousing

A regional stocking point from which a company serves distributors or customers in its area, fed by primary transport from plants.

In India: Indian manufacturers often run one depot per state or region, either company-operated or through a C&F agent, partly to hold stock close to demand and partly for GST registration in that state.

DetentionOperations & tech

Time a vehicle is held at a loading or unloading point, or elsewhere at the shipper’s instance, beyond the free time agreed in the contract.

In India: Detention at factories and consignee warehouses is one of the largest hidden costs in Indian road freight. It is measured from reporting time, needs trustworthy in and out timestamps (gate records or GPS geofences) and is billed as detention charges.

Detention charges · halting chargesContracts & pricing

The amount a shipper pays the carrier for each day or hour a vehicle is held beyond the agreed free time.

In India: Usually expressed per day per vehicle after a free period stated in the contract. Disputes are common, so contracts should define the start and end events, the evidence accepted and the billing cycle.

Direct port delivery (DPD) · DPDEXIM & customs

An import facility that allows an eligible importer to take its container straight from the port terminal to its own premises after clearance, without routing through a container freight station.

In India: Introduced at major Indian container ports to cut dwell time and CFS charges. Eligibility is linked to the importer’s compliance profile, and AEO holders are typically eligible.

Direct port entry (DPE) · DPEEXIM & customs

An export facility that allows factory-stuffed, self-sealed containers to move directly into the port terminal for loading, without being routed through a container freight station.

In India: Used by exporters with self-sealing permission; containers carry an RFID e-seal that customs reads at the gate. It saves CFS charges and a day or more of handling.

Distributor · stockistWarehousing

An independent business that buys goods from a manufacturer or super stockist, holds stock and resells to retailers in a defined territory.

In India: Distributors are the backbone of Indian FMCG and pharma reach, receiving primary or depot supply and running their own secondary delivery vehicles to retail outlets.

DPU (Delivered at Place Unloaded) · DPU, DATEXIM & customs

Incoterm for any mode: the seller delivers and unloads the goods at the named destination and bears risk until unloading. It replaced DAT in Incoterms 2020 and is the only term requiring the seller to unload at destination.

In India: Relevant for project cargo and deliveries to sites or terminals where the seller controls unloading equipment.

Dwell timeOperations & tech

The time cargo, a container or a vehicle spends waiting at a facility, from arrival to departure, rather than moving.

In India: For Indian trucks, dwell at plants and consignee docks drives detention cost and lower utilisation. For containers, port and CFS dwell time is tracked as a trade-facilitation measure.

E

E-auction (reverse auction) · reverse auction, RA, e-RAContracts & pricing

An online bidding event in which pre-qualified carriers bid prices down for defined lanes or packages within a time window, and the lowest compliant bid usually wins.

In India: Widely used by Indian manufacturers and PSUs for annual freight contracts after an RFQ. Well-run auctions fix vehicle type, service levels, payment terms and diesel linkage beforehand, so bidders compete on price for the same scope.

E-challanRoad

A digitally issued traffic or transport penalty notice linked to a vehicle registration or driving licence.

In India: Issued through the Parivahan e-challan system, drawing on VAHAN and SARATHI. Overloading is penalised under Section 194 of the Motor Vehicles Act, and pending challans can block services such as permit or fitness renewal.

Related: VAHAN · SARATHI · Axle load · Weighbridge

E-invoice · IRN, e-invoicingDocuments & tax

A GST system in which business-to-business invoices are reported to a government Invoice Registration Portal (IRP), which validates them and returns an Invoice Reference Number (IRN) and a signed QR code.

In India: Mandatory for registered persons above the notified aggregate turnover threshold (₹5 crore since 1 August 2023, under CBIC notification). An invoice that needs an IRN is not valid without one, and the e-way bill Part A can be generated from the IRN.

E-way bill · EWB, eway billDocuments & tax

An electronic document generated on the GST portal before goods move, carrying invoice, consignor, consignee and HSN details (Part A) and vehicle details (Part B). The movement is not compliant without a valid e-way bill where one is required.

In India: Rule 138 of the CGST Rules, 2017 requires it when consignment value exceeds ₹50,000, subject to exemptions and state thresholds for intra-state moves. Validity is one day per 200 km (or part) for normal cargo and one day per 20 km for over-dimensional cargo; it can be extended near expiry, and Part B must be updated when the vehicle changes.

Earnest money deposit (EMD) · EMD, bid securityContracts & pricing

A deposit submitted with a bid to show the bidder is serious; it is forfeited if the bidder withdraws or refuses the award, and refunded to unsuccessful bidders.

In India: Standard in Indian government and PSU tenders. Under the General Financial Rules, 2017 buyers may accept a bid security declaration instead, and registered micro and small enterprises are often exempt from EMD.

Empty running · empty km, khali gaadiRoad

Kilometres a truck travels without cargo, whether returning from delivery or positioning to its next load. Empty kilometres cost almost as much as loaded ones and earn nothing.

In India: High empty running on imbalanced Indian lanes is a major reason one-way FTL rates are priced close to round-trip cost. Backhaul matching and dedicated circuits are the usual remedies.

Related: Backhaul · Deadhead · Dedicated fleet · Rate per km

ePOD (electronic proof of delivery) · ePOD, digital PODOperations & tech

A proof of delivery captured digitally at the consignee, typically a photo of the signed LR or a signature, OTP or stamp on a mobile app, time- and location-stamped.

In India: ePOD removes the weeks of delay involved in couriering paper PODs back to the billing office, and lets freight bills be raised as soon as delivery is proven.

ETA (estimated time of arrival) · ETAOperations & tech

The predicted time a vehicle, vessel or aircraft will reach its destination, updated as the journey progresses.

In India: Road ETAs in India need to account for driver rest, entry restrictions for trucks in cities, toll and border queues and weather, not only distance and average speed.

EXIM · export-importEXIM & customs

Short for export-import: international trade in goods and the logistics, documentation and finance that support it.

In India: Indian EXIM is governed by the Foreign Trade Policy administered by DGFT and by the Customs Act, 1962, with filings made through ICEGATE and the DGFT portal.

EXW (Ex Works) · EXW, ex-factoryEXIM & customs

Incoterm for any mode: the seller makes the goods available at its premises, not loaded and not cleared for export; the buyer bears all costs and risks from there.

In India: Awkward for Indian exports, because the Indian exporter still has to be the exporter on the shipping bill. FCA at the seller’s premises is usually the better choice.

F

FAS (Free Alongside Ship) · FASEXIM & customs

Incoterm for sea and inland waterway: the seller delivers the goods, cleared for export, alongside the buyer’s vessel at the named port of shipment, where risk passes.

In India: Used mainly for bulk and break-bulk cargo and heavy lifts, rarely for containers.

FASTagRoad

A prepaid RFID sticker on a vehicle’s windscreen that lets toll plazas deduct the fee electronically without the vehicle stopping to pay cash.

In India: Operates on the National Electronic Toll Collection (NETC) system run by NPCI. FASTag became mandatory at national highway fee plazas from 15 February 2021, and vehicles without a valid tag pay a higher fee. FASTag transaction data is also used to confirm a truck’s route.

FCA (Free Carrier) · FCAEXIM & customs

Incoterm for any mode: the seller delivers the goods, cleared for export, to the carrier nominated by the buyer at a named place, where risk passes. If the place is the seller’s premises, the seller also loads.

In India: The recommended term for containerised and air exports from India, where cargo is handed over at a factory, CFS or ICD rather than on board a ship. Incoterms 2020 allows the parties to agree that an on-board bill of lading be issued to the seller.

FCL (full container load) · FCLAir, sea & rail

A container booked and filled by a single shipper for a single consignee, whether or not it is physically full.

In India: Indian exporters with enough volume ship FCL to avoid consolidation delays; FCL can be factory-stuffed and moved to the port under direct port entry.

FEU (forty-foot equivalent unit) · FEUAir, sea & rail

A unit of container capacity equal to one 40 ft container, or two TEU.

In India: Ocean freight rates from Indian ports are frequently quoted per FEU as well as per TEU; always confirm which unit a quote uses.

First mileOperations & tech

The first leg of a shipment, from the shipper’s premises or farm to the first hub, port, rail terminal or consolidation point.

In India: First-mile links are often the least organised part of Indian supply chains, especially for agricultural produce and small manufacturers, and poor first-mile handling can undo a good cold chain later.

Related: Last mile · Linehaul · Milk run · Hub-and-spoke

FlexitankAir, sea & rail

A single-use flexible bladder installed inside a standard 20 ft container to carry non-hazardous bulk liquids.

In India: Used for Indian exports and imports of liquids such as edible oils, latex, some chemicals and liquid food ingredients. Flexitanks are not suitable for dangerous goods, and the shipping line must approve their use.

FOB (Free On Board) · FOBEXIM & customs

Incoterm for sea and inland waterway: the seller clears the goods for export and loads them on board the vessel nominated by the buyer at the named port, where risk passes. The buyer pays the ocean freight.

In India: The most widely quoted export term in India, although for containers FCA fits better because the exporter loses control of the box at the terminal gate, before it goes on board.

Free Trade and Warehousing Zone (FTWZ) · FTWZWarehousing

A special zone for trading and warehousing in which foreign goods can be stored without customs duty, then re-exported or cleared into India on payment of duty when needed.

In India: FTWZs are notified under the Special Economic Zones Act, 2005. They let importers hold stock close to the Indian market and clear it in small lots, deferring duty until clearance.

Freight auditContracts & pricing

Checking every freight invoice against the contract rate, the actual shipment data and the proof of delivery before payment, and recovering overcharges.

In India: Common findings in India include wrong vehicle-type rates, duplicate detention claims, diesel escalation calculated on the wrong base, and bills raised without a matching POD.

Freight bill · freight invoiceDocuments & tax

The invoice a carrier raises on the party paying for transport, listing consignment notes, rates, surcharges and taxes for a period or for single trips.

In India: For a GTA it must show the correct GST treatment (reverse charge or forward charge) and SAC. Most corporate shippers require PODs to be attached or linked before a bill is accepted.

Freight claim · shortage claim, damage claimContracts & pricing

A demand by the shipper or consignee against the carrier or insurer for cargo lost, short-delivered, damaged or delayed. It is supported by the consignment note, invoice, remarks on the proof of delivery and a survey report where needed.

In India: Record shortage or damage as a specific remark on the POD at delivery; a clean POD makes a claim much harder. Carrier liability follows the Carriage by Road Act and the contract, while insured losses are recovered from the insurer, which may then pursue the carrier.

Freight forwarderEXIM & customs

A company that arranges the movement of goods on behalf of shippers, booking space with carriers, preparing documents, arranging customs clearance and often consolidating cargo. It may issue its own house bill of lading or house air waybill.

In India: Indian forwarders commonly act as NVOCCs or multimodal transport operators and work with licensed customs brokers; the same firm often holds both roles.

Freighter aircraft · all-cargo aircraft, main-deck freighterAir, sea & rail

An aircraft configured to carry cargo only, including on the main deck, allowing larger pieces and higher volumes than passenger-aircraft bellies.

In India: Freighter capacity in India is concentrated at the major cargo airports. Freighters take outsized pieces and some dangerous goods that belly cargo cannot.

FrozenCold chain

A temperature range in which product is held solidly frozen, conventionally −18 °C or colder, as used in the Codex Alimentarius code of practice for quick-frozen foods.

In India: Covers frozen meat and seafood, frozen vegetables and snacks, and ice cream (often held colder than −18 °C). Warm-up during loading and multi-drop delivery is the main risk, so dock time and door openings must be kept short.

Related: Chilled · Blast freezer · Reefer truck · Cold storage · Go deeper →

FSSAI licence for food transport · FSSAI registrationCold chain

Registration or a licence from the Food Safety and Standards Authority of India that food businesses, including those that transport food, must hold.

In India: Food transporters are food business operators under the Food Safety and Standards Act, 2006 and register or obtain a licence under the FSS (Licensing and Registration of Food Businesses) Regulations, 2011. Hygiene requirements cover clean vehicles and appropriate temperature for perishable food.

Related: Cold chain · Chilled · Frozen · Reefer truck · Go deeper →

FTL (full truckload) · FTL, full load, dedicated truckRoad

A shipment that books an entire truck for one consignor, moving directly from origin to destination without intermediate handling. It is priced per trip for the vehicle, not per kilogram.

In India: FTL is the default for Indian manufacturers moving more than roughly half a truck of cargo on a lane. Rates depend on vehicle type, lane direction, season and diesel price.

Fuel escalation clause · diesel linkage, fuel surcharge, DPAContracts & pricing

A contract clause that adjusts freight rates when diesel prices move from an agreed base, so that neither party carries the whole fuel risk.

In India: Indian freight contracts usually tie the fuel share of the rate to a base diesel price at a named city or outlet, reviewed monthly or when the price moves beyond a threshold. The formula, base date and source must be written into the contract to avoid disputes.

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Gati Shakti Cargo Terminal (GCT) · GCT, private freight terminal, PFTAir, sea & rail

A rail-connected cargo terminal developed by a private or non-railway party under Indian Railways’ Gati Shakti Multi-Modal Cargo Terminal policy.

In India: The GCT policy replaced the earlier private freight terminal and private siding approaches for new terminals, allowing industries and logistics firms to build terminals on railway or private land to load and unload rakes.

Genset (reefer) · clip-on genset, underslung gensetCold chain

A diesel generator that powers a refrigerated container’s cooling unit when the container is not plugged into shore or ship power, mounted on the container (clip-on) or under the trailer chassis (underslung).

In India: Needed for reefer containers moving by road between Indian ports, ICDs and customer premises. Genset fuel level and fault alarms should be checked before dispatch, because a genset failure on a long road leg is a common cause of excursions.

GeofenceOperations & tech

A virtual boundary drawn around a location on a map, such as a plant, warehouse or toll plaza, so that a tracking system records when a vehicle enters or leaves it.

In India: Indian control towers use geofences to time reporting, loading, detention and unloading automatically. Accurate geofence radius and position matter: a fence that is too large or placed off-site produces false detention.

Related: GPS tracking · Detention · Dwell time · Reporting time

Godown · godam, warehouseWarehousing

The common Indian term for a warehouse or storage shed, from simple covered sheds to modern facilities.

In India: Used for everything from a distributor’s stock room to a large leased warehouse. For GST, each godown used for business must be declared as an additional place of business in the registration.

Good Distribution Practices (GDP) · GDP, GDP guidelinesCold chain

Quality standards for storing and transporting medicines so that their quality and integrity are maintained through the supply chain, covering premises, vehicles, temperature control, documentation and handling of deviations.

In India: CDSCO has issued Good Distribution Practices guidelines for pharmaceutical products. Pharma shippers typically audit transporters against them, looking at vehicle qualification, temperature monitoring, cleaning, training and excursion records.

Goods-in-transit insurance · GIT insurance, transit insuranceContracts & pricing

Insurance that covers goods against loss or damage while being transported, bought by the cargo owner or, for its own liability, by the carrier.

In India: Indian shippers commonly buy an annual open or floater policy declaring dispatches, or cover each trip separately. The carrier’s liability cover is not the same as insuring the cargo, so the cargo owner should check what is actually insured.

Government e-Marketplace (GeM) · GeMContracts & pricing

The Government of India’s online procurement portal through which central and state government buyers and PSUs purchase goods and services.

In India: Several transport and logistics services, including vehicle hiring, are listed as service categories on GeM. Sellers register with PAN and Udyam or other credentials and bid in buyer-created bids or reverse auctions.

GPS tracking · vehicle tracking, VTSOperations & tech

Locating a vehicle using a satellite navigation receiver, usually a hard-wired device that reports position, speed and ignition status over the mobile network at regular intervals.

In India: Widely fitted on Indian trucks, either by owners or through tracking vendors. Data gaps from device tampering, power cuts or poor network coverage are common, so a good system flags "no signal" rather than showing a stale position as live.

GST (Goods and Services Tax) · GST, CGST, SGST, IGSTDocuments & tax

India’s destination-based indirect tax on the supply of goods and services, in force since 1 July 2017. Intra-state supplies carry CGST plus SGST; inter-state supplies carry IGST.

In India: Freight is affected on two levels: the goods themselves need tax invoices and e-way bills, and the transport service has its own GST rules, notably the goods transport agency provisions and reverse charge.

GTA (goods transport agency) · GTADocuments & tax

Under GST, a person who provides road transport of goods and issues a consignment note (LR). Road transport by someone who does not issue a consignment note is generally exempt, which is why GTA status matters.

In India: GTA services to specified recipients (such as factories, companies, firms and GST-registered persons) are taxed at 5% under reverse charge, with no input tax credit to the GTA. A GTA may instead opt, by annual declaration, to pay GST itself under forward charge; the forward-charge rate options are notified by CBIC, so check the current rate notification.

GVW (gross vehicle weight) · GVW, GVWR, RLWRoad

The total permissible weight of a vehicle including its own weight, fuel, driver and cargo, as certified for that vehicle. Payload equals GVW minus unladen weight.

In India: The registered laden weight is recorded on the vehicle’s registration certificate and in VAHAN. Checkposts and weighbridges compare actual weight with it, and excess weight is penalised as overloading.

Related: Payload · Axle load · VAHAN · Weighbridge

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Haldia · Haldia Dock Complex, HDCEXIM & customs

A riverine dock complex on the Hooghly in West Bengal, part of the Syama Prasad Mookerjee Port, Kolkata.

In India: Serves eastern India and is one of the gateways for transit cargo to and from Nepal and Bhutan. Draft is limited by the river, which affects the vessel sizes that can call.

Hazchem code and TREM card · TREM card, Hazchem, emergency information panelRoad

The TREM (transport emergency) card is a written instruction sheet carried in a vehicle transporting dangerous goods, telling the driver and emergency services what the substance is and how to respond. The Hazchem code is an emergency action code displayed on the vehicle’s information panel.

In India: CMVR Rules 129 to 137 require vehicles carrying hazardous goods to display class labels and an emergency information panel and to carry emergency information; the consignor must supply the details.

Helicopter charter (cargo)Air, sea & rail

Hiring a helicopter to move urgent or remote cargo, either inside the cabin or as an underslung load, where roads or runways are unavailable.

In India: Helicopter operators in India fly under a DGCA Non-Scheduled Operator Permit. Uses include hill states, disaster relief and project sites; payload is small and weather-dependent.

High-side body · JCB body, high-side deckRoad

An open truck body with side walls built higher than a standard open body, used for loose, bulky or bagged cargo that needs more volume but not a closed box.

In India: "JCB body" is a trade name heard in some Indian markets for this style of body; names vary by region, so state the dimensions required rather than relying on the name.

House vs master bill of lading · HBL, MBL, HB/L, MB/LEXIM & customs

A master bill of lading (MBL) is issued by the shipping line to the forwarder or NVOCC; a house bill of lading (HBL) is issued by that forwarder or NVOCC to the actual shipper. In a consolidation, one MBL can cover many HBLs.

In India: Indian import manifests and customs filings capture both levels. Consignees must know which document releases the cargo, because delivery orders come from the party that issued the bill they hold.

HSN and SAC codes · HSN, SACDocuments & tax

HSN (Harmonized System of Nomenclature) codes classify goods; SAC (Services Accounting Codes) classify services under GST. The code determines the tax rate and appears on invoices, e-invoices and e-way bills.

In India: Goods transport services fall under SAC heading 9965. Invoices must show HSN or SAC at 4 or 6 digits depending on the supplier’s turnover, and the e-way bill requires the HSN of the goods.

Hub-and-spokeOperations & tech

A network design in which shipments from many origins flow into a central hub, are sorted, and then flow out to many destinations, instead of running direct point-to-point.

In India: The standard model for Indian PTL and express networks: pickups feed local branches, linehaul trucks connect regional hubs, and delivery vehicles run from destination branches.

Hydraulic axle trailer · modular trailer, hydraulic modular trailer, HMTRoad

A heavy-haul trailer made of modules with multiple axle lines, each with hydraulic suspension that levels the load and spreads weight evenly. Modules can be joined to match the weight and length of the cargo.

In India: Used in India for transformers, reactors, turbines, heat exchangers and similar project cargo. Capacity is planned per axle line against road and bridge limits after a route survey.

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IATA cargo agent · CASSAir, sea & rail

A freight agent accredited by IATA to sell air cargo space and issue air waybills on behalf of member airlines, settling with them through IATA’s Cargo Accounts Settlement System (CASS).

In India: Most Indian air freight forwarders are IATA-accredited agents; accreditation involves financial and staffing criteria, and staff handling dangerous goods need IATA DGR training.

IBA approved transporter · IBA approvedRoad

A transporter or packer and mover listed with the Indian Banks’ Association, whose bills banks accept for reimbursing employees’ household relocation on transfer.

In India: Relevant mainly to employee relocation for bank and some public-sector staff. It is not a general regulatory licence for commercial goods transport.

ICD (inland container depot) · ICD, dry portEXIM & customs

An inland facility with customs clearance where import and export containers are handled, cleared and moved to or from seaports by rail or road.

In India: ICDs let inland shippers clear customs close to their factories. Examples include ICD Tughlakabad in Delhi; containers usually move between ICDs and ports on container trains.

ICEGATEEXIM & customs

The Indian Customs Electronic Gateway, CBIC’s portal for electronic filing of customs documents and for services such as duty payment and document status.

In India: Bills of entry, shipping bills, manifests and IGST refund status run through ICEGATE, connected to the Indian Customs EDI System (ICES).

IEC (Importer-Exporter Code) · IECEXIM & customs

A 10-character code issued by the Directorate General of Foreign Trade that a business needs to import or export goods from India, subject to limited exemptions.

In India: The IEC is now the same as the entity’s PAN and is issued online on the DGFT portal. It must be updated on the portal every year, or it can be deactivated.

Related: EXIM · Shipping bill · Bill of entry · ICEGATE · Go deeper →

Incoterms 2020 · IncotermsEXIM & customs

The International Chamber of Commerce rules that define, in three letters, who arranges and pays for each part of international delivery and where risk passes from seller to buyer. There are 11 terms: seven for any mode and four (FAS, FOB, CFR, CIF) for sea and inland waterway only.

In India: Incoterms apply only if written into the sales contract, for example "FOB Nhava Sheva, Incoterms 2020". They do not decide ownership transfer or payment terms, and Indian customs values imports on a CIF basis regardless of the agreed term.

Indent · vehicle indent, truck requirementOperations & tech

A shipper’s request to a transporter for vehicles, stating the number and type of trucks, loading point, destination and required reporting date and time.

In India: Indian plants typically raise daily indents to contracted transporters. Placement against indent, on time and with the right vehicle type, is the first KPI most shippers measure.

Integrated check post (ICP) · ICPEXIM & customs

A land border facility that combines customs, immigration, border security and cargo handling in one place for cross-border trade and travel.

In India: ICPs are developed and run by the Land Ports Authority of India. Key ones include Raxaul-Birgunj and Jogbani-Biratnagar on the Nepal border and Petrapole-Benapole on the Bangladesh border. Bhutan trade moves mainly through Jaigaon-Phuentsholing.

Related: Land port · Haldia · EXIM · Customs broker · Go deeper →

ISO container (20 ft, 40 ft, 40 ft HC) · shipping container, dry van, 40 HCAir, sea & rail

A standard steel shipping container built to ISO dimensions. The 20 ft and 40 ft general-purpose boxes are 8 ft 6 in high; the 40 ft high cube is 9 ft 6 in high. Internal volume is roughly 33 CBM, 67 CBM and 76 CBM respectively.

In India: The 20 ft box suits dense cargo that reaches its weight limit before its volume; 40 ft and high cube suit light, bulky cargo. On Indian roads containers move on trailers, and the combined height of box and trailer matters for bridges and wires.

ISO tank · tank containerAir, sea & rail

A stainless-steel tank fitted inside a 20 ft ISO frame, used to carry bulk liquids, liquefied gases or powders, hazardous or not, across sea, rail and road without transferring the contents.

In India: Common for Indian chemical exports and imports. Tank codes specify what each tank may carry, and cleaning certificates between cargoes are standard.

ITC (input tax credit) · ITC, input creditDocuments & tax

The GST mechanism that lets a registered business set off GST paid on purchases used in its business against GST payable on its sales.

In India: Section 16 of the CGST Act sets the conditions, including holding a valid invoice, receiving the goods or services, and the supplier having reported the invoice. GST paid by a recipient under reverse charge on GTA services is generally available as ITC to that recipient if used for business.

J

JNPT (Nhava Sheva) · JNPA, Nhava Sheva, Jawaharlal Nehru PortEXIM & customs

Jawaharlal Nehru Port in Navi Mumbai, Maharashtra, a Major Port operating several container terminals under the Jawaharlal Nehru Port Authority.

In India: One of India’s busiest container gateways, serving western and northern India by road and by rail, with the Western Dedicated Freight Corridor designed to connect it with the north.

K

KPI (key performance indicator) · KPIContracts & pricing

A measured value used to judge whether a logistics service is performing as agreed, such as on-time placement, OTIF, transit time adherence, damage rate or POD turnaround.

In India: Indian logistics contracts increasingly link part of the payment to KPIs. The definition, data source and measurement period of each KPI must be agreed upfront, or the scores will be disputed.

L

Land port · land customs station, LCSEXIM & customs

A designated border crossing where goods and people enter or leave a country by road or rail, with customs and other controls.

In India: India’s land ports range from land customs stations to integrated check posts managed by the Land Ports Authority of India, set up under the Land Ports Authority of India Act, 2010.

Last mileOperations & tech

The final leg of delivery from a local hub, depot or distributor to the end customer, retailer or consignee.

In India: Often the costliest leg per kilogram in India because of congestion, entry restrictions for trucks in cities, small drops and failed deliveries. Smaller vehicles and fixed delivery windows are common.

LCL (less than container load) · LCLAir, sea & rail

Sea freight in which a shipper’s cargo shares a container with other shippers’ cargo, consolidated by a forwarder or NVOCC. It is charged per CBM or per tonne, whichever is higher, plus origin and destination charges.

In India: LCL exports from India are consolidated at a CFS or ICD. It suits shipments too small for a full container but adds handling and time at both ends.

LEADS (Logistics Ease Across Different States) · LEADSOperations & tech

An annual Government of India assessment that ranks and grades Indian states and union territories on logistics infrastructure, services and regulatory environment, based on data and stakeholder surveys.

In India: Published by the Government of India (now under DPIIT’s logistics division). It is a policy benchmark, not a rating of individual companies.

LEO (Let Export Order) · LEOEXIM & customs

The customs permission, recorded against a shipping bill after assessment and any examination, that allows export goods to be loaded onto the vessel or aircraft.

In India: The LEO date matters for export benefits and IGST refund processing. Containers without LEO cannot be loaded, so late clearance means missed vessel cut-offs.

LinehaulRoad

The long-distance, trunk portion of a movement between cities or hubs, as distinct from local pickup and delivery.

In India: In Indian PTL networks, linehaul trucks run between hubs on fixed schedules; in FTL the whole trip is effectively linehaul.

Loading and unloading charges · hamali, mathadi, labour chargesContracts & pricing

Charges for the labour that loads cargo onto and unloads it from a vehicle, separate from the freight itself unless the contract includes them.

In India: "Hamali" is the common term for this labour and charge. In Maharashtra, head-load and manual workers are covered by the Mathadi Act, 1969, and at many locations only registered or union labour may load or unload. Contracts should state who arranges and pays at each end.

Lorry receipt (LR) · LR, GR, bilty, consignment note, CN, goods receiptDocuments & tax

The document a road carrier issues on accepting goods, recording consignor, consignee, description, packages, weight, freight and payment basis. It is the receipt for the goods and evidence of the contract of carriage; the LR number (CN number) identifies the consignment.

In India: Called LR, GR or bilty across India. Issuing a consignment note is what makes a transporter a goods transport agency under GST, and banks accept LRs in trade finance. Delivery is normally made against the consignee copy.

Low-bed trailer · lowbed, low loaderRoad

A trailer with a deck set very low to the ground, used to carry tall or heavy equipment while keeping the overall height within road clearance limits.

In India: Used in India for excavators, cranes, transformers and machinery that would exceed height limits on a flatbed. Loads above legal dimensions still need ODC permissions.

M

Marine and inland transit insurance · marine cargo insurance, transit policy, open coverContracts & pricing

Cargo insurance covering goods in transit by sea, air, rail or road, including inland legs. Cover is set by clauses, such as Institute Cargo Clauses A, B or C for international shipments, with A the widest.

In India: Indian insurers sell single-transit policies and open or annual declaration policies for regular shippers, with separate inland transit clauses for road and rail. Match the cover to the Incoterm, since it decides who bears risk on each leg.

Mean kinetic temperature (MKT) · MKTCold chain

A single calculated temperature that expresses the cumulative thermal stress on a product from a fluctuating temperature history. It uses the Arrhenius equation, so short periods at high temperature weigh more than a simple average would suggest.

In India: Used by pharmaceutical companies in India, as elsewhere, to assess storage conditions and evaluate excursions. It supplements but does not replace the limits on the product label.

Milk runOperations & tech

A scheduled route on which one vehicle collects from, or delivers to, several points in a fixed sequence, instead of each point being served by a separate trip.

In India: Common in Indian automotive inbound logistics, where one truck collects parts from several suppliers on a circuit, and in dairy collection.

MSDS / SDS (safety data sheet) · MSDS, SDSOperations & tech

A standard document from the manufacturer describing a chemical’s hazards, composition, safe handling, storage, emergency and first-aid measures and transport classification.

In India: Carriers and forwarders ask for the SDS before accepting chemicals, to decide whether the cargo is dangerous goods and how it must be packed and labelled. The Manufacture, Storage and Import of Hazardous Chemical Rules, 1989 also require safety data for listed chemicals.

MSME / Udyam registration · Udyam, MSME, Udyam Registration CertificateContracts & pricing

Registration of a micro, small or medium enterprise on the government Udyam portal, which issues a permanent Udyam Registration Number.

In India: Registered micro and small suppliers, including transporters, benefit from the MSMED Act, 2006 rule that buyers must pay within the agreed period, not exceeding 45 days, and Section 43B(h) of the Income Tax Act affects when buyers can deduct late payments. It also brings preferences in public procurement.

MTO (multimodal transport operator) · MTO, multimodal transportEXIM & customs

A person who contracts to carry goods by at least two modes of transport under one multimodal transport document and takes responsibility for the whole journey.

In India: MTOs in India must register with the Directorate General of Shipping under the Multimodal Transportation of Goods Act, 1993. NVOCCs issuing their own bills of lading in India typically hold this registration.

Multi-axle (MXL) · MXL, tandem axleRoad

A truck with two or more rear axles, which raises the legal gross vehicle weight and payload compared with a single-axle truck of similar length.

In India: In India "MXL" usually refers to a 32 ft multi-axle container truck, commonly quoted at about 14 to 15 tonnes payload. Actual legal payload depends on the specific vehicle’s registered weights.

MundraEXIM & customs

A privately developed deep-water port in Kutch, Gujarat, handling containers, bulk and liquid cargo.

In India: One of India’s largest ports by cargo volume and a major container gateway for northern and western India, with rail connections to inland container depots.

N

National Logistics Policy 2022 · NLPOperations & tech

A Government of India policy launched in September 2022 to reduce the cost of logistics, improve efficiency and bring logistics performance closer to global benchmarks.

In India: Implemented through a Comprehensive Logistics Action Plan covering digital systems such as ULIP, standards, skills, state logistics plans and the LEADS assessment. It works alongside PM Gati Shakti infrastructure planning.

National permit · NP, all-India permitRoad

A permit that allows a goods vehicle to operate across all Indian states, instead of only within its home state and the states it holds separate permits for.

In India: Issued under the national permit scheme of the Motor Vehicles Act, 1988: a home-state permit plus a national authorisation for which the fee is paid online. "All-India permit" is the common trade phrase for it; the "All India Tourist Permit" is a separate passenger-vehicle permit.

NVOCC · non-vessel operating common carrierAir, sea & rail

A carrier that issues its own bills of lading and takes carrier responsibility to shippers, but does not operate ships; it buys space from shipping lines and may own or lease containers.

In India: NVOCCs in India typically register as multimodal transport operators with the Directorate General of Shipping. They dominate LCL consolidation from Indian ports and ICDs.

O

ODC (over-dimensional cargo) · ODC, over-dimensional consignment, project cargoRoad

Cargo whose length, width or height, as loaded, exceeds the legal dimension limits for road vehicles, so it cannot move as a normal load.

In India: Dimension limits come from Rule 93 of CMVR. ODC moves need permission from the road-owning authorities (MoRTH or NHAI guidance for national highways, state authorities for state roads), usually with a route survey, escort vehicles and time-of-day restrictions; e-way bill validity is one day per 20 km.

Open body truck · dala body, half body, platform truckRoad

A truck with a flat deck and low hinged side boards and no roof, loaded from the top or sides and covered with tarpaulin when needed.

In India: The traditional Indian goods truck, still widely used for construction material, steel, bagged goods, machinery and agricultural produce. Tarpaulin quality and lashing decide whether cargo arrives dry and undamaged.

OTIF (on time in full) · OTIFContracts & pricing

The share of orders or shipments delivered both within the committed time window and in the full ordered quantity and condition. A delivery that is late, short or damaged counts as a failure.

In India: A common KPI in Indian FMCG and retail supply chains. Agree what counts as "on time" (a date, a slot or a tolerance) and whether customer-caused delays are excluded, before measuring.

OWC (over-weight cargo) · OWC, heavy liftRoad

Cargo whose weight, with the vehicle, exceeds the legal gross vehicle weight or axle-load limits for normal road movement.

In India: Over-weight moves need special permission, suitable multi-axle or hydraulic modular trailers and a check of bridge and culvert capacity on the route. Loads are often both over-dimensional and over-weight.

P

Paid booking · paid LR, freight paidDocuments & tax

A consignment on which the consignor pays the freight at the time of booking, before dispatch.

In India: Common for occasional or new customers of Indian PTL carriers who have no credit account. The LR is marked "Paid" so the consignee pays nothing on delivery.

Pallet · skidWarehousing

A flat platform on which goods are stacked so they can be handled as one unit by forklift or pallet truck. The two common sizes are 1200 × 1000 mm and 1200 × 800 mm (the Euro pallet).

In India: The 1200 × 1000 mm pallet is widely used in Indian warehousing and manufacturing. Palletised loads cut loading time and damage, but reduce the cargo a truck can carry compared with floor loading, so plan truck type around pallet count.

Parcel van (VPU) leasing · VPU, parcel van, SLR leasingAir, sea & rail

Railway parcel capacity in dedicated parcel vans (VPUs) or in the brake-van compartments of passenger trains, leased to private operators for scheduled parcel movement.

In India: Indian Railways leases parcel space on specified trains through tenders. It offers fast, scheduled movement for parcels and e-commerce cargo between major stations.

PayloadRoad

The weight of cargo a vehicle can legally carry: gross vehicle weight minus the vehicle’s unladen weight.

In India: In India the legal payload follows from the registered laden weight on the vehicle’s registration. Loading beyond it is overloading, penalised under the Motor Vehicles Act, whatever the truck can physically hold.

Performance bank guarantee (PBG) · PBG, performance securityContracts & pricing

A bank guarantee that a contractor gives the buyer after award, which the buyer can encash if the contractor fails to perform.

In India: Standard in Indian government, PSU and many corporate logistics contracts. The percentage and validity are set in the tender under the General Financial Rules, 2017 or the buyer’s own policy.

PESO · Petroleum and Explosives Safety Organisation, CCOERoad

The Petroleum and Explosives Safety Organisation, the Indian authority that regulates the safety of petroleum, explosives, compressed gases and pressure vessels.

In India: Headquartered in Nagpur under DPIIT. Petroleum tankers need licences under the Petroleum Rules, 2002, and gas tankers approval under the Static and Mobile Pressure Vessels (Unfired) Rules, 2016.

Pilot vehicle · escort vehicleRoad

A vehicle that travels ahead of or behind an over-dimensional load to warn traffic, check clearances and help it through junctions and narrow sections.

In India: Usually required by the ODC permission for wide or long loads; police escort may also be required on some routes. Pilot crews coordinate with the route survey’s list of obstacles.

PM Gati Shakti National Master Plan · Gati Shakti, PM Gati Shakti, NMPOperations & tech

A Government of India programme launched in October 2021 that puts the infrastructure plans of many ministries (roads, rail, ports, airports, gas, power and others) onto one GIS-based platform for coordinated planning.

In India: Used to plan multimodal connectivity and remove missing links, with a Network Planning Group reviewing major projects. It is the infrastructure counterpart of the National Logistics Policy.

POD (proof of delivery) · POD, delivery receiptDocuments & tax

The consignee’s signed and stamped acknowledgement that goods were received, usually on the LR copy, noting date, time and any shortage or damage.

In India: Most Indian shippers pay freight only against POD. Remarks written on the POD at delivery are the main evidence for any shortage or damage claim.

POD-linked billingContracts & pricing

A billing rule under which a freight bill is accepted and paid only for consignments with a valid proof of delivery attached or linked.

In India: Standard with Indian corporate shippers. Slow POD return is a major cause of delayed payment to transporters, which ePOD largely removes.

Port (major and non-major) · seaportEXIM & customs

A coastal facility where ships load and discharge cargo, with terminals, storage yards and road and rail connections.

In India: India’s Major Ports are governed by the Major Port Authorities Act, 2021 under the Ministry of Ports, Shipping and Waterways; other ports ("non-major") fall under state maritime boards and include large private ports.

Port haulage (drayage) · drayage, container haulage, CT (container trailer) movementRoad

Road movement of containers between a port terminal and a CFS, ICD, rail terminal, factory or warehouse.

In India: Around Indian ports, haulage productivity depends on terminal gate queues, e-seal and customs readiness, empty-container return depots and night-time entry rules. Detention on containers that are returned late is a common extra cost.

Pre-coolingCold chain

Bringing a reefer body or container down to its set temperature before loading, and separately bringing the product itself to its required temperature before it is loaded.

In India: Reefer units are designed to maintain temperature, not to pull warm product down. Indian shippers should check the body temperature at loading and refuse warm product, especially in summer and during long dock waits.

Primary distribution · primary transport, primaryWarehousing

Movement of finished goods from the manufacturing plant to the company’s depots, C&F agents or large distributors, usually in full truckloads.

In India: Indian companies define the boundary differently: some call plant-to-depot primary and depot-to-distributor secondary, while others count the distributor delivery as primary. State the definition before comparing costs.

PTL / LTL (part truckload) · PTL, LTL, less than truckload, part loadRoad

A shipment too small to fill a truck, moved together with other shippers’ cargo through a carrier’s network of branches and hubs, and priced per kilogram or per chargeable weight with minimum charges.

In India: Indian PTL networks use hub-and-spoke linehaul with LR-based booking, often with To-Pay, Paid or TBB payment. Transit times are longer than FTL and handling is higher, but cost is lower for small loads.

R

Rail rake · rake, train loadAir, sea & rail

A full set of wagons forming a freight train, booked and moved as one unit from origin terminal to destination terminal.

In India: Indian Railways offers train-load rates for full rakes and options such as two-point and mini rakes. Container trains run between ports and ICDs, and bulk rakes use wagon types matched to the commodity.

Railway receipt (RR) · RR, e-RRAir, sea & rail

The receipt Indian Railways issues on accepting goods for carriage, naming consignor, consignee, stations, weight and freight.

In India: The Sale of Goods Act, 1930 lists the railway receipt as a document of title. RRs are now generated electronically (e-RR) through the railways’ freight system.

Rate per km · per km rateContracts & pricing

A freight rate charged on the kilometres run, either loaded kilometres only or all kilometres, often with a minimum daily or monthly distance.

In India: Common in Indian dedicated fleet and long-term contracts. The contract must define which kilometres count (GPS, odometer or standard lane distance) and how empty kilometres are treated.

Rate per tonne · PMT, per MTContracts & pricing

A freight rate charged on the weight carried, usually per metric tonne for a given lane.

In India: Standard for Indian bulk and heavy cargo such as steel, cement, coal, fertiliser and grain. A minimum guaranteed weight per truck protects the carrier when loads are light.

Rate per trip · lumpsum rate, per trip rateContracts & pricing

A fixed freight amount for one vehicle movement on a named lane with a named vehicle type, whatever the weight or volume within the vehicle’s legal capacity.

In India: The most common basis for Indian FTL. Quotes should state the vehicle type, loading and unloading points, free time, and what is included (tolls, loading labour, escort).

RCM (reverse charge mechanism) · RCM, reverse chargeDocuments & tax

A GST arrangement under which the recipient of a supply, rather than the supplier, pays the tax to the government.

In India: Notified under Section 9(3) of the CGST Act. GTA services to specified recipients are the most common RCM case in logistics: the business receiving the service pays 5% GST and may usually claim it as input tax credit.

Reefer container · refrigerated container, RF containerCold chain

An insulated ISO container with its own electrically powered refrigeration unit, plugged into power at terminals and on ships and run from a genset on road or rail.

In India: Used for Indian exports of fruit, seafood, meat and pharmaceuticals. Power continuity during port haulage and yard dwell is the main risk to manage.

Reefer truck · reefer, refrigerated truck, refrigerated vanCold chain

A truck with an insulated body and a refrigeration unit that holds cargo at a set temperature, from frozen to chilled, during transit.

In India: Indian reefers range from small insulated vans for city delivery to 32 ft long-haul units. Check the insulation, the unit’s capacity for the set point, door seals and a working temperature logger, not only the name "reefer".

Regulated agent (BCAS) · RA, BCAS regulated agentAir, sea & rail

An agent approved by the aviation security regulator to screen and secure air cargo before it is tendered to an airline, so the cargo can travel without further screening.

In India: In India regulated agents are approved by the Bureau of Civil Aviation Security (BCAS) and must follow its cargo security programme, including screening equipment and trained staff.

Reporting time · reportingOperations & tech

The time a vehicle reports at the loading or unloading gate and is ready to be loaded or unloaded. It starts the free-time clock for detention.

In India: Indian shippers record reporting time in gate registers or through GPS geofences. Disputes often come from trucks waiting outside the gate unrecorded, so agree what evidence counts.

Related: Vehicle placement · Detention · Geofence · Indent

RFQ (request for quotation) · RFQ, RFP, tenderContracts & pricing

A formal request to carriers or logistics providers to quote for defined lanes, volumes and services, used to select vendors and set contract rates.

In India: Indian freight RFQs work best when they state lane-wise volumes, vehicle types, service levels, payment terms and diesel linkage upfront, and are often followed by an e-auction.

Route surveyRoad

A physical and documented inspection of the planned route for an over-dimensional or over-weight load, recording bridges, overhead wires, tolls, bends, gradients and road conditions.

In India: Usually required for ODC permissions in India. The survey identifies obstacles needing removal or diversion and the time windows in which the move can run.

S

SARATHIRoad

The national database and online system for driving licences in India, run by MoRTH through NIC.

In India: Used to issue and verify driving licences, including those needed for heavy goods vehicles and hazardous goods. It is the companion of VAHAN for vehicles.

Sea waybill · SWB, express releaseEXIM & customs

A non-negotiable ocean transport document naming a specific consignee, who can take delivery without presenting an original document. It is not a document of title.

In India: Suits Indian shipments between related companies or with open-account payment, where there is no letter of credit and no need to transfer title in transit.

Secondary distribution · secondary transport, secondaryWarehousing

Movement of goods from depots or distributors to retailers or end customers, typically in smaller vehicles with several drops per trip.

In India: In Indian FMCG, secondary delivery is often run by distributors with their own small vehicles. Costs per case are much higher than primary, and delivery windows are short.

Related: Primary distribution · Distributor · Last mile · Depot · Go deeper →

Semi-low-bed trailer · semi lowbedRoad

A trailer with a deck lower than a standard flatbed but higher than a full low-bed, balancing loading height against ground clearance.

In India: Used in India for machinery, construction equipment and moderately tall loads where a full low-bed is not needed.

SEZ (special economic zone) · SEZEXIM & customs

A designated area treated as outside India’s customs territory for trade operations and duties, set up to promote exports.

In India: Governed by the Special Economic Zones Act, 2005. Supplies from India to SEZ units are zero-rated under GST, and goods moving in and out follow SEZ procedures rather than ordinary customs clearance.

Shipping bill · SBEXIM & customs

The export declaration filed with customs, describing the goods, their value, classification and destination so that export can be allowed.

In India: Filed electronically under Section 50 of the Customs Act, 1962 through ICEGATE, usually by a customs broker. After assessment and any examination, customs grants the Let Export Order.

SIM-based tracking · phone tracking, cell trackingOperations & tech

Locating a truck through the driver’s mobile phone using the telecom network, with the driver’s consent, instead of a GPS device fitted to the vehicle.

In India: Widely used in India for market-hired trucks that have no GPS device. Accuracy is lower than GPS and depends on network coverage, and tracking stops if the driver changes SIM or withdraws consent.

Single axle (SXL) · SXLRoad

A truck with one rear axle, giving a lower legal gross vehicle weight and payload than a multi-axle truck of similar body length.

In India: In India "SXL" usually refers to a 32 ft single-axle container truck, commonly quoted at about 7 tonnes payload and suited to light, bulky cargo. Actual legal payload depends on the vehicle’s registered weights.

SLA (service level agreement) · SLAContracts & pricing

The part of a logistics contract that defines the measurable service the provider must deliver, such as placement time, transit time, damage limits and reporting, and the consequences of missing it.

In India: Indian SLAs increasingly carry penalties and incentives. They work only when each measure has an agreed definition, data source and exclusion list.

Spot rate vs contract rate · spot rate, contract rate, market rateContracts & pricing

A spot rate is a one-off price for a single load at current market conditions; a contract rate is agreed in advance for a period and lane, usually with volume commitments.

In India: Indian spot rates swing with season, festivals, harvest periods, diesel prices and lane imbalance. Contract rates give stability but carriers may place trucks less reliably when spot rates rise above contract rates.

Stackability · stackable, non-stackableWarehousing

Whether and how high packages or pallets can be stacked on each other without damage. Non-stackable cargo uses floor space inefficiently and is often charged at a higher effective rate.

In India: Indian PTL and air carriers may charge non-stackable cargo on the full height of the vehicle or container space it blocks. State stackability when requesting quotes.

Super stockist · SSWarehousing

A large distributor that buys from the manufacturer and supplies smaller sub-distributors or wholesalers, typically across rural or semi-urban territory.

In India: A common extra tier in Indian FMCG and pharma distribution, used where direct company coverage of small distributors would be too costly.

T

Tanker · road tanker, bulkerRoad

A truck or trailer with a tank body for carrying liquids or gases in bulk. Tanks are built for specific products, pressures and hazard classes.

In India: Petroleum tankers need PESO licences under the Petroleum Rules, 2002, and gas tankers approval under the Static and Mobile Pressure Vessels (Unfired) Rules, 2016. Hazardous loads follow CMVR Rules 129 to 137.

TAT (turnaround time) · TAT, turnaroundOperations & tech

The elapsed time to complete a defined cycle, such as a truck’s round trip from loading back to loading, or a vehicle’s time from gate-in to gate-out at a plant.

In India: Indian logistics teams track plant TAT and trip TAT to find where time is lost: queuing, loading, documentation, transit or unloading. Always state which start and end events a TAT uses.

TBB (To Be Billed) · TBB, to be billedDocuments & tax

A consignment for which freight is not collected at booking or delivery but billed later to an account customer, usually the consignor, on agreed credit terms.

In India: The normal basis for corporate customers of Indian PTL carriers: LRs are marked "TBB" and freight is invoiced periodically, typically against PODs.

Related: To-Pay · Paid booking · Freight bill · Credit period

TelematicsOperations & tech

Systems that collect and transmit vehicle data, such as location, speed, ignition, fuel level, door status and temperature, from devices on the vehicle to a central platform.

In India: Indian fleet telematics has moved beyond location to include fuel-theft detection, driver behaviour scoring and reefer temperature. Data quality depends on devices being installed properly and powered.

Temperature data logger · logger, temperature recorderCold chain

A device that records temperature (and sometimes humidity) at set intervals during storage or transit, giving a time-stamped record that can be reviewed after delivery or streamed live.

In India: Pharma shippers usually require calibrated loggers with a calibration certificate. Single-use USB or PDF loggers travel with the consignment, while reefer trucks increasingly carry GPS-linked probes that report in real time.

Temperature excursion · excursion, temperature breachCold chain

Any period when a product’s temperature goes outside its specified range. Whether the product is still usable depends on the product’s stability data, how far and for how long it went out of range.

In India: Pharma shippers in India expect excursions to be recorded, reported and investigated under their quality system rather than ignored. For food, an excursion can make the product unsafe and require it to be rejected.

TEU (twenty-foot equivalent unit) · TEUAir, sea & rail

The standard unit of container capacity, equal to one 20 ft container. A 40 ft container counts as two TEU.

In India: Indian port and vessel capacity and container throughput are reported in TEU.

TMS (transport management system) · TMSOperations & tech

Software that plans, executes and settles freight: indenting, carrier assignment, load planning, tracking, POD capture, freight rating and audit.

In India: Indian TMS platforms typically integrate with ERP, e-way bill APIs, GPS and SIM tracking, and transporter mobile apps for ePOD.

To-Pay · to pay, freight to payDocuments & tax

A consignment for which the consignee pays the freight at the time of delivery.

In India: Common in Indian PTL for trade between dealers and small businesses. If the consignee refuses to pay or take delivery, the goods are held and the consignor becomes liable for freight and charges.

Toll · user fee, toll taxRoad

A fee charged for using a road, bridge or tunnel, collected at plazas or electronically.

In India: On national highways, user fees are set under the National Highways Fee (Determination of Rates and Collection) Rules, 2008, vary by vehicle class and are revised periodically. Tolls are a significant part of the cost of heavy trucks, so check whether a freight quote includes them.

Trailer · tractor-trailer, flatbed trailer, articulated truckRoad

An unpowered load-carrying vehicle pulled by a separate tractor (prime mover). Flatbed and skeletal trailers carry containers, steel, machinery and long loads.

In India: In Indian trade "trailer" usually means a 40 ft flatbed or container trailer pulled by a tractor head. Trailers carry the heaviest regular loads and port containers.

TransshipmentAir, sea & rail

Transferring cargo or containers from one vessel or conveyance to another at an intermediate port or point on the way to the final destination.

In India: A large share of India’s container trade has historically been transshipped at foreign hubs such as Colombo and Singapore, which adds time and cost; India is developing its own transshipment capacity.

U

ULD (unit load device) · ULD, air pallet, air containerAir, sea & rail

A pallet or container shaped to fit an aircraft’s hold, used to load many packages as one unit onto the plane.

In India: Airlines and ground handlers at Indian airports build up ULDs from forwarder cargo. Piece size and contour limits of ULDs decide what fits in belly or freighter holds.

ULIP (Unified Logistics Interface Platform) · ULIPOperations & tech

A Government of India digital platform that gives authorised logistics users API access to data from many government systems, such as vehicle registration, driving licences, FASTag, railways and customs.

In India: Created under the National Logistics Policy. Companies use it to verify vehicles and drivers and to track movements without separate integrations with each system.

Related: National Logistics Policy 2022 · VAHAN · SARATHI · FASTag

V

VAHANRoad

India’s national vehicle registration database, run by MoRTH through NIC, covering registration, fitness, permits, taxes and ownership details.

In India: Shippers and control towers use VAHAN data to verify that a placed truck’s registration, fitness certificate, permit and insurance are valid before loading.

Vehicle placement · placement, truck placementOperations & tech

The transporter’s act of making a suitable, fit vehicle available at the loading point against a shipper’s indent, by the required date and time.

In India: Placement is the first failure point in Indian road freight: a late or wrong-type truck delays the whole dispatch. Shippers record reporting time and vehicle number against each indent to measure it.

Vehicle placement compliance · placement compliance, placement %, indent complianceOperations & tech

A KPI measuring how many vehicles a transporter placed on time, and of the right type, against the number indented for a period.

In India: One of the most common transporter KPIs in Indian manufacturing. It needs a fixed indent record, a clear on-time definition and a rule for indents cancelled or changed by the shipper.

Volumetric weight · dimensional weight, volume weight, DIM weightOperations & tech

A weight calculated from a shipment’s dimensions, used when cargo is light for its size. In air freight it is conventionally length × width × height in cm divided by 6,000; courier services often divide by 5,000.

In India: Indian road PTL uses a kg-per-CFT factor set in each carrier’s contract instead. Freight is billed on the higher of actual and volumetric weight.

W

Weighbridge · dharam kanta, kantaRoad

A large scale on which an entire vehicle is weighed, used to establish the weight of cargo loaded (gross minus tare) and to check for overloading.

In India: Weighbridges used for trade must be verified under the Legal Metrology Act, 2009. Plants and checkposts use them for billing and enforcement; weighbridge slips often support weight disputes and shortage claims.

WMS (warehouse management system) · WMSWarehousing

Software that controls warehouse operations: receiving, putaway, storage locations, inventory, picking, packing and dispatch, usually with barcode or RFID scanning.

In India: Indian 3PLs and larger shippers run a WMS integrated with ERP and TMS, including batch and expiry tracking for FMCG and pharma.

Work order · WO, purchase order, LOAContracts & pricing

The document by which a buyer formally awards a service contract to a vendor, stating scope, rates, period and key terms.

In India: Indian freight contracts are often executed through a work order or letter of award after an RFQ or e-auction, followed by a detailed agreement. Rate changes should be recorded as formal amendments.

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