Top 20 Logistics Terms to Know

If you’re in logistics and don’t know these 20 terms, you’re missing the language of the industry!”

Working in logistics, supply chain, admin, or operations mastering these core logistics terms will elevate your understanding and communication in the industry.

Whether you’re handling shipments, coordinating freight, or managing inventory, these terms define the language of logistics. Here’s a quick guide to the most important ones:

Top 20 Logistics Terms to Know

1. LTL (Less-than-Truckload) – Shipment that doesn’t fill a full truck.

2. FTL (Full Truckload) – Shipment that takes up the entire truck space.

3. 3PL (Third-Party Logistics) – Outsourced logistics services provider.

4. Freight Forwarder – Organizes shipment on behalf of shippers.

5. Drayage – Short-distance transport, usually between ports and warehouses.

6. Intermodal – Using multiple modes (e.g., rail + truck) for one shipment.

7. Bill of Lading (BOL) – Legal document with shipment details.

8. Lead Time – Time from placing an order to delivery.

9. Cross-Docking – Direct transfer of goods from inbound to outbound.

10. Freight Class – Classification system for LTL pricing based on weight, size, value.

11. Deadhead – Truck returning empty after a delivery.

12. Demurrage – Fees charged for containers left at port beyond free time.

13. Detention – Charges when a driver waits too long for loading/unloading.

14. Tender – Offering freight to a carrier for transport.

15. Backhaul – Load hauled back after a delivery to reduce empty miles.

16. Last Mile Delivery – Final leg of shipment to the customer.

17. Lane – Route between origin and destination points.

18. Tracking Number – Unique code to monitor shipment progress.

19. Proof of Delivery (POD) – Confirmation the shipment was received.

20. Accessorial Charges – Extra fees for services like liftgate or inside delivery.

knowing these terms helps streamline communication, reduce errors, and gain confidence in managing logistics operations.