Decipher the language of logistics with the alpha trans glossary.

Our A-Z of freight forwarding provides explanations for all the typical important terms used in the goods transport sector.

ADR AGREEMENT A European agreement concerning the international carriage of dangerous goods by road (from the French “Accord Européen Relatif au Transport international des marchandises dangereuses par route”). This contains binding regulations for transporting dangerous goods like chemicals and applies in virtually all European countries.

ADSP Acronym for Allgemeine Deutsche Spediteurbedingungen (German Freight Forwarders’ Standard Terms and Conditions). These are a set of contractual rules recommended by the German Association for Freight Forwarding and Logistics that form the legal framework for all of our activities.

AIR FREIGHT Our day-to-day business. With our headquarters located at Munich Airport, we have a particular affinity for air freight.

ASSIGNMENT The transferral of a claim from a creditor (assignor) to a new creditor (assignee). This occurs frequently in logistics, in order to secure loans or transfer a claim to a collection company. The assignor can assign, i.e. transfer, individual claims, a portfolio of claims, or all current and future claims.

BAF Acronym for the so-called bunker adjustment factor. Shipping companies use the BAF to compensate for fluctuating fuel costs resulting from the changing price of oil. Adding a set surcharge to the transport costs minimises the risk of calculation. The BAF is determined individually by shipping companies in EU member states on a monthly basis.

B/L BILL OF LADING The bill of lading contains information concerning the type, dimensions, quantity, weight, marks, composition and condition of the loaded goods. In sea freight, it is a document of proof for the freight contract, and therefore represents a security. The holder of the original B/L is the owner of the goods. alpha trans works with trusted partners who carefully create this important document for imports at the point of loading.

BULKY GOODS Items that cannot be packaged or shipped in standard dimensions. Transporting bulky goods by ship or air impacts the loading volume of shipping containers or aircraft fuselages, and therefore also influences transport costs.

CAF Acronym for currency adjustment factor. This is a percentage surcharge used in sea freight to compensate for fluctuations in exchange rates between different currencies. It gives shipping companies a more stable calculation basis and minimises financial risks.

CARGO Umbrella term for any kind of load, derived from the Latin carricare, meaning “to load onto a carriage”.

CHARGEABLE WEIGHT A unit of measurement based on a mixed calculation of weight and required space. This enables fair pricing for transporting goods of any weight and volume class.

COLLI Small packages or packaging units such as crates, cartons or rolls. Generally, multiple collies are bound together on pallets.

CUSTOMS CLEARANCE Process of going through customs according to a set structure. Commercial goods must always be declared. alpha trans reliably takes care of the entire process for its customers.

DANGEROUS GOODS Items or substances that can present a hazard to human health or the environment. These include poisonous, flammable, radioactive or corrosive substances, as well as gases and gas mixtures, fireworks, explosives and munitions.

DIESEL FLOATER A floating fuel surcharge that adjusts automatically to current fuel prices, in order to compensate for price fluctuations on the market.

DIMS The dimensions of a consignment. After determining the chargeable weight, the DIM factor is used to calculate the individual freight costs.

EAD Acronym for Export Accompanying Document. This is an important document that provides information concerning customs clearance in international freight transport.

EXPORT The sale and/or transport of goods across borders around the world.

FCL Acronym for full container load, a transport variant that offers both ecological and economic benefits. Full container loads in rail and sea freight reduce transport miles and therefore also lower costs, resource consumption and environmental damage.

GENERAL AVERAGE A legal concept in international maritime law. If a ship is in distress at sea, the crew can take measures like jettisoning cargo to stabilise the ship and protect the people on board. These measures must be taken in a purposeful and calculated way. The resulting costs and losses are shared by all stakeholders in the venture on the basis of solidarity in proportion to the goods. This principle has applied since ancient times.

HARBOUR A protected mooring in the water for ships of all kinds and sizes. There are ocean, inland and natural harbours, as well as harbours for passenger ships, ferries and yachts.

HS CODE Forms the basis of an international customs tariff number used for tax, trade policy, tracking, research and statistics. The so-called Harmonised System (HS) ensures that the first six digits of the code are allocated according to a fixed and globally standardised system.

IMPORT The cross-border purchase of foodstuffs, animals, raw materials and goods from around the world. Imports from third countries outside the EU in particular are often subject to complicated conditions.

IMPORT VAT Similar to standard VAT (value added tax), this tax is paid to the respective customs authority on all imported goods that are exempted from VAT in the country of origin. This process prevents the avoidance of VAT in Germany.

INCOTERMS Abbreviation of International Commercial Terms. This is a three-letter code for important clauses in global goods transport. They govern all the responsibilities, risks and costs between buyer and seller. There are a total of eleven Incoterms that are updated every ten years. The last update was in 2020.

JUST-IN-TIME This term refers to consignments that are received by the customer at the exact time that they require the respective goods. Just-in-time plays an important role in series production in the automotive industry, for example. The material flow is synchronised precisely to the manufacturing process, saving expensive storage costs.

LCL Acronym for less-than-container load: a load that fills less than a full container. These are therefore usually transported in a consolidated container with other LCL consignments.

LOGISTICS CHAIN The logistics chain includes all processes and business activities that are required to transport a product from the manufacturer to the end customer. As a logistics business, alpha trans is an important part of this. Other elements of the logistics chain include shipping companies, airlines and rail companies.

MULTIMODAL TRANSPORT This term refers to the combination of different modes of sea, air and land transport in international logistics, in order to enable fast and cost-effective transport.

NEUTRALISATION The removal of labels of origin or other signs that indicate the consignor. alpha trans can perform this service for its customers before onward goods transport.

OUTSOURCING Refers to the contracting out of certain services to other parties. alpha trans cooperates with partners for certain special services, such as customised packaging.

OVERNIGHT DELIVERY A fast method of delivery for particularly urgent consignments. Time zones and time differences can provide valuable additional hours, depending on the destinations of the goods.

PALETT Also known as the Euro-pallet. This is a wooden underlay for goods transport with standard dimensions of 80 cm x 120 cm. It is standardised according to the specifications of the European Pallet Association (EPAL), in order to ensure a high level of adaptability to various modes of transport and storage spaces.

POLICY Refers to the transport insurance used to financially guard against the risk of goods being lost or damaged during transport.

QUALITY ASSURANCE Refers to the checking of compliance with standards that can be mandated by legislators or set individually by businesses.

QUICK RESPONSE A particularly fast and flexible response, such as increasing deliveries to meet increased demand or sudden availability of transport capacity.

RAIL TRANSPORT alpha trans transports goods by rail along the Silk Road from China all the way to Germany. Rail transport is perfect for customers looking for an alternative that is greener and cheaper than air freight, but faster than sea freight.

RESTOW A way of improving the allocation of storage spaces if the best storage space was not available when goods were first stowed. The goal is always to accelerate handling at high capacity utilisation. 

ROLLING ROAD Term used to describe a form of combined road and rail transport. Instead of transferring the goods from a lorry to a train, the entire lorry is transported by rail.

SEA FREIGHT Umbrella term for all goods that are transported across the sea by ship. Sea freight is a cost-effective way of transporting large quantities of heavy or bulky goods.

SHIPPER Also known as the consignor. The tasks of a loadmaster come with great responsibility. If a lorry is loaded incorrectly, both the driver and shipper will face a fine. The shipper is always deemed to be the person who loads a consignment onto a mode of transport.

SHIPPING COMPANY A business that maintains multiple ships for ocean or inland shipping. The main responsibilities of the shipping companies are to provide the ships, service them and ensure that crews are ready to sail.

SHIPPING DOCUMENTS These papers are kind of ID card for goods consignments. They accompany the consigned goods all the way from the manufacturer to the consumer. Shipping documents provide information about the goods’ quantity, quality, origin and mode of transportation. Typical shipping documents include delivery notes, packing lists and invoices.

SUSTAINABLE LOGISTICS Each part of the logistics chain is analysed for its environmental and resource efficiency. This includes things like energy-efficient lighting in warehouses, the use of resource-saving modes of transport or the efficient use of space in a container.

SWAP BODY An exchangeable load container for lorries and trailers that can be loaded onto and unloaded from the carrying vehicle by means of a crane or the vehicle driving underneath it. In combined transport, the swap bodies must be suitable for transport by rail via special fittings on the bottom, for example. 

TEU Acronym for twenty-foot equivalent unit. This is a container measuring 20 feet in length (approx. six metres). It also indicates the capacity of a container ship and container terminal, as well as the quantity of containers that were handled at a port. 

THC Acronym for Terminal Handling Charges. These are costs that are calculated for the export order. They include the fee for container handling as billed by the shipping company, as well as for unloading and storing a container, and for transporting it from the storage location to the loading bridge. 

TOLL Fee paid for the use of land transport infrastructure (roads, bridges, tunnels, etc.). The income from the tolls is used to maintain the infrastructure. The toll fees are calculated into the overall costs of forwarding.

UN NUMBER A four-digit United Nations number that identifies dangerous goods. Dangerous goods are divided into a total of nine classes, ranging from explosive to corrosive substances. Examples include TNT, petrol/diesel, phosphorus or spent nuclear fuel rods.

UNION CUSTOMS CODE The Union Customs Code (UCC) has been in force in the European Union since 1 May 2016. It specifies the legal framework for European customs law.

XYZ ANALYSIS Method of determining the demand variability of goods, based on both empirical data and calculated coefficients of variation and fluctuation. As a result, the analysed goods are classified into X items with low demand variability, Y items with moderate demand variability and Z items with high demand variability.

YIELD MANAGEMENT Method of optimising demand for a product or service on the basis of certain data like capacity, market prices or seasonal fluctuations, without acquiring new customers. In logistics, yield management helps companies use capacities and resources as efficiently as possible.

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