The logistics and transportation industry is international, diverse and very complex, and this applies equally to the terms and technical terms relating to the associated procedures and processes. In our glossary, we provide a brief overview of the most important abbreviations and technical terms – and what they mean in detail.
ADR
The abbreviation ADR stands for “Accord Européen Relatif au Transport international des marchandises dangereuses par route”the European Agreement concerning the International Carriage of Dangerous Goods by Road. It has been in existence since 1957 and has been transposed into national law by all EU member states – its provisions are therefore legally binding.
The ADR contains provisions for the packaging, load securing, classification and labeling of so-called dangerous goods. The ADR regulations also apply to the drivers of dangerous goods transports and the vehicles used for this purpose. Both require a corresponding license or certificate.
The ADR approval for a vehicle must be renewed every year. As with a general inspection for “normal” motor vehicles, suitability is determined as part of a technical inspection.
The ADR certificate (dangerous goods certificate), in turn, is proof for professional drivers who are involved in the transportation of dangerous goods. It is valid for 5 years, after which a refresher course is required to extend the qualification.
BULK / BREAK BULK
Bulk and break bulk are designations for transported goods from the sea freight sector. This refers to bulk goods and break bulk goods respectively. They are handled differently logistically according to their different characteristics:
- Bulk goods are uniform liquid or solid bulk goods that are usually transported loose and unpackaged. Typical examples are oil, gas, grain, coal, gravel or sand.
- Break bulk goods get their name from the fact that they can be “broken up” into individual units (“breaking bulk”) during unloading. The goods in question are transported in bags, boxes, coils or on pallets.
The transport ships are tailored to the respective type of goods. So-called bulkers are tankers that can also carry liquid bulk goods without difficulty. For break bulk, on the other hand, the freighters must have a sufficient number of cargo holds. They often have their own cranes to unload the cargo.
CRM
CMR also stands for the French name of a transport convention: the “Convention relative au Contrat de transport international des marchandises par route”the Convention on the Contract for the International Carriage of Goods by Road, is valid in all EU member states and is applied there as applicable law.
The CMR applies to transportation by road for a fee, i.e. overland transportation, provided that at least one of the parties to the contract is domiciled in a CMR contracting state or the CMR has been contractually agreed. It is applicable:
- if the place of takeover and the place of delivery are located in two CMR member states,
- for deliveries to third countries (i.e. non-EU member states such as Turkey, Iceland, etc.), in this case the countries must agree to the CMR in advance – because the CMR take precedence over national law.
The CMR are also important because they precisely define the respective obligations of the shipper, carrier and consignee. The CMR consignment note is also relevant for liability issues, which are regulated on the basis of so-called strict liability.
DEMURRAGE
Time limits for loading and unloading ship cargoes are agreed in the ports. These demurrage-free periods are usually between three and five days, but can vary depending on the country of destination. If the agreed time limit is exceeded, a fee is charged per container and day: the demurrage (DEM).
However, this additional demurrage charge is not only due if the cargo is picked up too late at the port or terminal. It can also be charged, for example, if a container is delivered to the terminal too early in the course of export clearance.
In addition, the terminals also charge a local storage fee, the storage charges. These continue to increase with longer downtimes.
DETENTION
As soon as a ship’s cargo is unloaded, the detention-free period begins. It comprises the period from leaving the terminal until the containers are returned – i.e. the time during which the containers are outside the port or terminal area.
Detention is the fee for the container rental, which is charged for each day that a container has not been returned beyond the contractually agreed detention-free period.
FLIESSGUT
Transport goods without a solid form are summarized under the term flowing goods. These can be bulk goods such as sand, gravel or grit as well as liquids and gases. Separate legal regulations apply to the various types of free-flowing goods:
- Bulk goods can be transported loose in dumpers such as walking floor vehicles, aluminum dumpers, steel dumpers, troughed dumpers, three-way dumpers or skip loaders.
- Soluble goods (e.g. salt or sugar) must be transported in suitable silos due to the need to protect them from moisture.
- For mineral oil, gas or chemicals, on the other hand, special tanks are prescribed that must meet the requirements of the ADR.
FRANKATURE
One of the components of transportation contracts is the clarification of the question of who will bear the costs of transportation. This contractual regulation, which can often already be stipulated in the general terms and conditions, is referred to as franking. It is agreed between the sender and recipient.
There are basically two different options:
- “Unpaid” means that the recipient of the transported goods must pay the costs upon delivery.
- “Free domicile”, on the other hand, means that the sender or client is responsible for bearing the costs.
The exact details are set out in the agreements between the recipient and shipper in the form of purchase contracts or terms of delivery. There are also other options for structuring the assumption of costs and the type of delivery:
- Ex works: In this case, the recipient arranges for the goods to be collected from the factory.
- Free point of use: Before transportation, the recipient determines a point of use for the transported goods; the sender then bears the transportation costs up to this point.
For international freight shipments, the freight terms are regulated within the framework of the Incoterms (International Commercial Terms). This has the advantage that the agreements regarding the transfer of risk can also be defined. This makes it clear who bears the transport risk and is therefore liable in the event of damage to or loss of the transported goods.
FORK STAPLER
In everyday language, the term forklift truck is often used as a synonym for a range of different industrial trucks. These are transport and conveying vehicles that are mainly used for horizontal goods transportation, for example in warehouses and production halls. Off-road forklifts or large tire forklifts, on the other hand, are all-terrain vehicles and some are equipped with hydrostatic transmissions and all-wheel drive.
In fact, a distinction must be made between different versions of forklift trucks, depending on the respective equipment. Differentiation criteria are, for example, the drive, number and type of tires, lifting capacity and height, shape and position of the driver’s cab and the safety equipment.
DIN 15140 basically lists four main groups of forklift trucks:
- Front forklift trucks pick up the load from the front and set it down again in the same way; transportation is unsupported.
- Reach trucks also pick up the load head-on, but the load is transported at least partially within the wheel base, i.e. between the wheels.
- Four-way forklift trucks can change their direction of travel by 90 degrees when stationary. They also pick up the load from the front and transport it within the wheel base.
- Transverse forklift trucks can pick up and set down the load from the side; it is transported inside the wheel base.
Due to the wide range of variants and their diverse applications, forklift trucks are indispensable for logistical processes in various environments and industries. Highly specialized vehicles are used for special tasks, for example in the area of machine transport, which can meet extreme requirements such as transporting large loads in confined spaces.
HANDLING UNIT
A handling unit (HU) is a physical unit consisting of packaging materials and the goods contained on or in them – the term therefore always refers to a combination of products and packaging materials.
The packaging material can be either the packaging of the goods or a load carrier (such as a Euro pallet). For this reason, several individual units are often combined to form a higher-level handling unit. Accordingly, a container can be a handling unit for several loaded Euro pallets, which in turn are a handling unit for the products placed on them.
Each handling unit has an identification number that can be clearly assigned. Barcodes are generally used for this purpose. With their help, information on
- Dimensions,
- Weight,
- Volume,
- Status,
- Materials,
- Quantities,
- packaging materials etc.
easily transmitted. The identification numbers are standardized for this purpose (e.g. according to EAN 128 or SSCC).
HEAVY LIFT
Heavy lift is the term for a particularly heavy load, usually with oversized dimensions. In German, such transport goods are called Schwergut, which means heavy lift cargo.
“Oversized” for this type of cargo often means a weight of up to more than 100 tons and dimensions of up to 100 meters. Generators, turbines, reactors, parts of wind turbines, boilers, boats, locomotives, wagons, factory modules, machines, etc. are typical examples of heavy lift.
One of the challenges is that the heavy goods often cannot be dismantled or split up. Transport therefore takes place as a whole. For logistics, this means the need for precise planning and preparation on the one hand and the use of special equipment on the other.
Specialized trucks and/or trailers and equipment are therefore used for land transport. Adequately equipped forklifts or cranes are needed to load the heavy goods. Due to the high demands placed on people and machinery, heavy goods transportation is a task for proven experts.
INCOTERMS
The International Chamber of Commerce (ICC) is the publisher of the International Commercial Terms (Incoterms for short) . With the Incoterms, the ICC has created contractual formulas for international trade that make it much easier to define the rights and obligations of buyers and sellers in a uniform manner.
The Incoterms can be used on a voluntary basis and are therefore not mandatory. Nevertheless, they help to avoid legal ambiguities and the resulting disputes. The currently valid version dates from January 1, 2020.
In order for the Incoterms to be effective, their application must be stipulated in the contractual agreement. This also applies to the various clauses of the Incoterms.
However, despite their far-reaching significance, the Incoterms are not a substitute for a sales contract. This is because they primarily relate to regulations regarding transportation costs and the transfer of risk. However, they do not affect the transfer of ownership, the terms of payment or issues relating to transport insurance.
Overall, the Incoterms are divided into four groups:
- Group E deals with the collection clauses.
- Group F contains dispatch clauses without assumption of costs.
- Group C comprises dispatch clauses with cost absorption.
- Group D is used for arrival clauses.
Of the 11 Incoterms, seven can be applied to all goods traffic, regardless of the means of transportation used. The four remaining clauses are specifically geared towards transportation by ship.
Picture credits:
Image 1: Adobe Stock © MelaniePhotos
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Image 3: Adobe Stock © Yellow Boat
Image 4: Adobe Stock © Kadmy
Image 5: Adobe Stock © Andreas Gruhl
