Logistic terms


We’ll help you make sense of the industry jargon and terms used.

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S.A.

Subject to Approval.

S.A.N.R.

Subject to Approval, No Risk; i.e., temporary cover; no risk attached until insurance is confirmed.

S.L.C.

Abbreviation: S.L.C.. Note on Bill of Lading or affreightment, indicating that the contents of a container were loaded and counted by the shipper and not checked or verified by the carrier.

S.T.C.

Abbreviation: S.T.C. Term in a Bill of Lading signifying that the master and the carrier are unaware of the nature or quantity of the contents of e.g. a carton, crate, container or bundle and are relying on the description furnished by the shipper.

S/D

Sight Draft (Bill of Exchange)

Sacrifice

Deliberate casting away or destruction of property to prevent greater loss.

SAD

Abbreviation: SAD. Set of documents, replacing the various (national) forms for customs declaration within European Community, implemented on January 1st, 1988. The introduction of the SAD constitutes an intermediate stage in the abolition of all administrative documentation in intra European Community trade in goods between member states.

Safe Working Load

Abbreviation: SWL. Maximum load any lifting appliance may handle.

Safety Stock

1. A quantity of stock planned to be in inventory to protect against fluctuations in demand and/or supply. 2. In the context of master production scheduling, safety stock can refer to additional inventory and/or capacity planned as protection against forecast errors and/or short term changes in the backlog. Also referred to as “over-planning” or a “market hedge”.

Said to Contain

Abbreviation: S.T.C. Term in a Bill of Lading signifying that the master and the carrier are unaware of the nature or quantity of the contents of e.g. a carton, crate, container or bundle and are relying on the description furnished by the shipper.

Salvage

Saving or rescue of a vessel and/or the cargo from loss and/or damage at sea.

Salvage Charges

Payable to salvors for saving life and property at sea.

Sanitary and Health Certificate

Statement signed by a health organization official certifying the degree of purity, cleanliness or spoilage of goods, and the health of live animals.

Scale Ton

Freighting measurement used in certain trades for various commodities.

Schedule

Timetable including arrival/departure times.

SCR

Abbreviation: SCR. Rate applicable to carriage of specifically designated commodities (air cargo).

SDR

Abbreviation: SDR. Unit of account from the International Monetary Fund, used to express the amount of the limitations of a carrier’s liability.

Sea Waybill

Non negotiable document, which can only be made out to a named consignee. No surrender of the document by the consignee is required.

Seal

Device used for containers, lockers, trucks, etc. to ensure that they have remained closed during transport.

Seal Log

Document used to record seal numbers.

Seasonal Inventory

Inventory built up in anticipation of a seasonal peak of demand in order to smooth production.

Seaworthiness

There is an implied warranty in every voyage policy that the ship must be seaworthy at the commencement of the insured voyage or, if the voyage is carried out in stages, at the commencement of each stage of the voyage. To be seaworthy, the ship must be reasonably fit in all respects to encounter the ordinary perils of the contemplated voyage. It must be properly crewed, fueled and provisioned, with all equipment in proper working order. Cargo policies waive breach of the warranty except where the insured or their employees are privy to the unseaworthiness. Breach of the warranty is not excused in a hull voyage policy, literal compliance therewith being required. Although there is no warranty of seaworthiness in a hull time policy, claims arising from unseaworthiness may be prejudiced if the ship sails in an unseaworthy condition with the knowledge of the insured.

Sectional Rate

Rate established by scheduled air carrier(s) for a section of a through route (air cargo).

SED

Shipper’s Export Declaration

Segregation

Distance between the various commodities of dangerous and/or bulk cargoes required by the rules of IMDG or BC codes.

Semi-Trailer

Vehicle without motive power and with one or more axles designed to be drawn by a truck tractor.

Sender

Merchant (person) by whom, in whose name or on whose behalf a contract of carriage of goods has been concluded with a carrier or any party by whom, in whose name or on whose behalf the goods are actually delivered to the carrier in relation to the contract of carriage.

Service Level

Measure for the extent to which the customer orders can be executed at delivery conditions normally accepted in the market.

Setting/Air Delivery Temperature

Indication in the documents (B/L) stating the air supply temperature to the container.

Settlement Office

Institution to which billing is issued and which receives remittances from agents. It also distributes the monies to CASS airlines, Billing Participants and Part-Participants (air cargo).

Settling Agent

Underwriter’s representative who is authorized to settle claims.

Shed

Building specially designed for receipt, storage and handling of goods.

Shelf Life

Specified length of time for which items which are inherently subject to deterioration are deemed to remain fit for use under prescribed conditions.

Shift

Part of the work-program of a stevedoring company (a working day can have up to 3 shifts [24 hours]).

Ship

Every description of watercraft or other artificial contrivance used, or capable of being used, as a means of transportation on water.

Ship Broker

Acts as intermediary between shipowners or carriers on one hand and cargo interests on the other.

Ship Operator

The shipowner or the (legal) person responsible for the actual management of the vessel and its crew.

Ship's Manifest

Detailed list, signed by the captain of a ship, that contents the individual shipments constituting the ship’s cargo.

Ship's Protest

Statement of the master of a vessel before authorities, concerning exceptional events which occurred during a voyage.

Shipment

Goods to be carried. Note: In the United States of America the word shipment is used instead of the word consignment.

Shipowner

Legal entity officially registered as such in the certificate of registry where the following particulars are contained: name of vessel and port of registry, details contained in surveyors certificate, particulars with respect to the origin stated in the declaration of ownership, the name and description of the registered owner (if more than one owner the proportionate share of each).Legal entity officially registered as such in the certificate of registry where the following particulars are contained: name of vessel and port of registry, details contained in surveyors certificate, particulars with respect to the origin stated in the declaration of ownership, the name and description of the registered owner (if more than one owner the proportionate share of each).Legal entity officially registered as such in the certificate of registry where the following particulars are contained: name of vessel and port of registry, details contained in surveyors certificate, particulars with respect to the origin stated in the declaration of ownership, the name and description of the registered owner (if more than one owner the proportionate share of each).Legal entity officially registered as such in the certificate of registry where the following particulars are contained: name of vessel and port of registry, details contained in surveyors certificate, particulars with respect to the origin stated in the declaration of ownership, the name and description of the registered owner (if more than one owner the proportionate share of each).Legal entity officially registered as such in the certificate of registry where the following particulars are contained: name of vessel and port of registry, details contained in surveyors certificate, particulars with respect to the origin stated in the declaration of ownership, the name and description of the registered owner (if more than one owner the proportionate share of each).Legal entity officially registered as such in the certificate of registry where the following particulars are contained: name of vessel and port of registry, details contained in surveyors certificate, particulars with respect to the origin stated in the declaration of ownership, the name and description of the registered owner (if more than one owner the proportionate share of each).Legal entity officially registered as such in the certificate of registry where the following particulars are contained: name of vessel and port of registry, details contained in surveyors certificate, particulars with respect to the origin stated in the declaration of ownership, the name and description of the registered owner (if more than one owner the proportionate share of each).

Shipper

Merchant (person) by whom, in whose name or on whose behalf a contract of carriage of goods has been concluded with a carrier or any party by whom, in whose name or on whose behalf the goods are actually delivered to the carrier in relation to the contract of carriage.

Shipper's Export Declaration

Form indicating the value, weight, destination, and other basic information about an export shipment.

Shipper's Letter of Instruction

Instructions from either the seller/shipper or the buyer/consignee to a freight forwarder, carrier or their agent, or other provider of a service, enabling the movement of goods and associated activities. The following functions can be covered: movement and handling of goods (shipping, forwarding and stowage), customs formalities, distribution of documents, allocation of documents (freight and charges for the connected operations), special instructions (insurance, dangerous goods, goods release, additional documents required).

Shipper's Load and Count

Abbreviation: S.L.C.. Note on Bill of Lading or affreightment, indicating that the contents of a container were loaded and counted by the shipper and not checked or verified by the carrier.

Shipping Documents

Documents required for the carriage of goods.

Shipping Instructions

Instructions from either the seller/shipper or the buyer/consignee to a freight forwarder, carrier or their agent, or other provider of a service, enabling the movement of goods and associated activities. The following functions can be covered: movement and handling of goods (shipping, forwarding and stowage), customs formalities, distribution of documents, allocation of documents (freight and charges for the connected operations), special instructions (insurance, dangerous goods, goods release, additional documents required).

Shipping Label

Label attached to a shipping unit, containing data for identification purposes.

Shipping Marks

Identification shown on individual packages in order to help in moving it without delay or confusion to its final destination and to enable the checking of cargo against documents.

Short Form Bill of Lading

Summary type Bill of Lading which does not incorporate all obligations and responsibilities of both parties. Unless a shipper is familiar with the carrier’s tariff, they should request a full Bill of Lading.

Shortage

Negative difference between actual available or delivered quantity and the required quantity.

Shrink Wrapping

Heat treatment that shrinks an envelope of polyethylene or similar substance around several units, thus forming one unit. It is used, for example, to secure packages on a pallet.

Shuttle Service

Carriage back and forth over an often short route between two points.

SIC

Standard Industrial Classification

Sight Draft (Bill of Exchange)

Abbreviation: S/D. Draft payable on presentation to the drawee.

Simulation

Imitation of the reality in order to study the effect of changing parameters in a model as a means of preparing a decision.

Single Administrative Document

Abbreviation: SAD. Set of documents, replacing the various (national) forms for customs declaration within European Community, implemented on January 1st, 1988. The introduction of the SAD constitutes an intermediate stage in the abolition of all administrative documentation in intra European Community trade in goods between member states.

Single Transit Policy

“One Off” insurance for those clients who require transit cover on an infrequent basis.

SITC

Standard International Trade Classification

SITPRO

National organization for the Simplification of International Trade Procedures in the United Kingdom (e.g. in The Netherlands SITPRO is called “Sitproneth”, in France “Simprofrance” and in Japan “Jastpro”).

Skeleton Trailer

Road trailer consisting of a frame and wheels, specially designed to carry containers.

Skids

Battens fitted underneath frames, boxes or packages to raise them off the floor and allow easy access for fork lift trucks, slings or other handling equipment.

Slave Pallet

Airfreight pallet with rollers.

SLI

Abbreviation for Shipper’s Letter of Instruction.

Sling

Special chain, wire rope, synthetic fiber strap or ropes used for cargo handling purposes.

Slot

Space on board a vessel, required by one TEU, mainly used for administrative purposes.

Slot Charter

Voyage charter whereby the shipowner agrees to place a certain number of container slots (TEU and/or FEU) at the charterer’s disposal.

Space Charter

Voyage charter whereby the shipowner agrees to place part of the vessels capacity at the charterer’s disposal.

Special Commodity Rate

Abbreviation: SCR. Rate applicable to carriage of specifically designated commodities (air cargo).

Special Drawing Rights

Abbreviation: SDR. Unit of account from the International Monetary Fund, used to express the amount of the limitations of a carrier’s liability.

Special Policy of Insurance

Document issued on behalf of the Underwriter stating the terms and conditions of the marine insurance. Issued when evidence of insurance is required, as by the bank issuing the Letter of Credit.

Special Rate

Rate other than a normal tariff/rate.

Specified Rate

Rate specified in an IATA Cargo Tariff Coordination Conference resolution (air cargo).

Spoke

Stretch between a hub and one of the group of consignees and/or shippers being served by the hub.

Spontaneous Ignition Temperature

Lowest temperature at which a substance will start burning spontaneously without an external source of ignition.

Spot Exchange

Purchase or sale of foreign exchange for immediate delivery.

Spreader

1. Device used for lifting containers, and unitized cargo.

2. Beam or frame that holds the slings vertical when hoisting a load, to prevent damage to cargo.

Stability

Capacity of a vessel to return to its original position after having been displaced by external forces. The stability of a vessel depends on the meta-centric height.

Stack

Identifiable amount of containers stowed in a orderly way in one specified place on an terminal, container freight station, container yard or depot.

Stacking

To pile boxes, bags, containers, etc. on top of each other.

Stackweight

Total weight of the containers and cargo in a certain row.

Standard Industrial Classification

Abbreviation: SIC. Method, used in the United States, to categorize companies into different industrial groupings.

Standard International Trade Classification

Abbreviation: SITC. Standard numerical code system developed by the United Nations to classify commodities used in international trade.

Starboard

Right side of a vessel when facing towards the front or forward end.

State of Origin

State in the country in which the cargo was first loaded on board of an aircraft (air cargo).

State of the Operator

State in which the operator has its principal place of business or, if it has no such place of business, its permanent residence (air cargo).

Steamship Agency

Agency representing a steamship company that does not have an office in the particular port. Performs services to maintain operations on behalf of vessel owners.

Steamship Conference

Group of steamship operators that operate under mutually agreed-upon freight rates and other conditions.

Steering of Containers

Function, with the aid of specific software, for tracking and forecasting (IRMA, MINKA), to direct empty containers to areas of demand at minimum cost.

Stem

Foremost part of a vessel.

Stern

Aftermost part of a vessel.

Stevedore

Company which executes the loading, stowing and discharging of vessels.

Stock

Materials in a supply chain or in a segment of a supply chain, expressed in quantities, locations and/or values.

Synonym: Inventory when used as a generic term, common in the USA and extensive in the UK

Stock Control

Systematic administration of stock quantity levels.

Stock Keeping Unit

Description of the unit of measurement by which the stock items are recorded on the stock record.

Stock List

A detailed list of goods located in a certain place or belonging to a specified object.

Stock Locator System

System in which all places within a warehouse are named or numbered.

Stock Point

Point in the supply chain meant to keep materials available.

Stock Record

Record of the quantity of stock of a single item, often containing a history of recent transactions and information for controlling the replenishment of stock.

Storage

Placing goods into a warehouse.

Storage Charge

Fee for keeping goods in a warehouse.

Stores

Provisions and supplies on board required for running a vessel.

Stowage

Placing and securing of cargo or containers on board a vessel or an aircraft or of cargo in a container.

Stowage Factor

Ratio of a cargo’s cubic measurement to its weight, expressed in cubic feet to the ton or cubic meters to the tonne, used in order to determine the total quantity of cargo which can be loaded in a certain space.

Stowage Instructions

Details about the way certain cargo is to be stowed.

Stowage Plan

Plan indicating the locations on the vessel of all the consignments.

Stowaway

Unwanted person who hides on board of a vessel or an aircraft to get free passage, to evade port officials, etc.

Straddle Carrier

Wheeled vehicle designed to lift and carry shipping containers within its own framework. It is used for moving, and stacking shipping containers at a container terminal.

Straddle Crane

Crane usually running on rails and spanning an open area such as rail-tracks or roadways.

Straight Bill of Lading

Non-negotiable Bill of Lading in which the goods are consigned directly to a named consignee.

Strap

Band of metal, plastic or other flexible material used to hold cargo or cases together.

Stretch

Leg between two points.

Strikes Cover

Limited to damage caused to insured property by strikers, locked-out workers and persons involved in a labor dispute. Does not include loss or expense incurred as a result of strikes.

Stripping

Unloading of cargo out of a container.

Stuffing

Loading of cargo into a container.

Subrogation

Right of the underwriter to step into the shoes of the insured, following payment of a claim, to recover the payment from a third party responsible for the loss. Subrogation is limited to the amount paid on the policy.

Substretch

Part of a stretch. This term is used if it is necessary to distinguish between a stretch and a part thereof.

Sue and Labor Charges

Charges incurred by an insured in averting or diminishing a loss. They are recoverable in addition to the full sum insured.

Supply Chain

Sequence of events in a goods flow which adds to the value of a specific good. These events may include:

a) conversion; b) assembling and/or disassembling;

c) movements and placements.

Supply Vessel

Vessel which carries stock and stores to offshore drilling rigs/platforms.

Surcharge

Additional charge added to the usual or customary freight.

Survey

Inspection of a certain item or object by a recognized specialist.

Surveyor

Marine specialist who examines damaged property and determines the cause, nature, and extent of damage and methods of repair and/or replacement. This person is not an adjuster, and all their actions are without prejudice to policy terms and conditions.

SWL

Safe Working Load

Swop Body

Separate unit without wheels to carry cargo via road. Sometimes equipped with legs to perform an intermodal transport within Europe. It can be left behind to load or discharge whilst the driver and truck/chassis change to another unit. These units are not used for sea transport.

Synergy

Simultaneous joint action of separate parties which, together, have greater total effect than the sum of their individual effects.

System

Whole body of connected elements which influence each other and have a specific relationship with their environment.

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