Logistics Terminology Used Today
This term describes the total time cargo spends from origin to final delivery.
What is lead time?
Under this term, the seller makes goods available at their premises only.
What is EXW (Ex Works)?
In 2021, this container ship blocked a major global trade route for six days.
What is the Ever Given?
Many shipping lines still avoid this route due to security risks in 2026.
What is the Suez / Red Sea route?
This unit measures container capacity.
What is a TEU?
This fee is charged when containers stay too long at a terminal before pickup.
What is demurrage?
Under this Incoterm, the seller delivers goods on board a vessel chosen by the buyer.
What is FOB (Free On Board)?
This canal faced severe restrictions due to droughts in 2023–2024.
What is the Panama Canal?
These global rules are increasing costs by pricing CO₂ emissions in shipping.
What is the EU Emissions Trading System (EU ETS)?
This document is required for goods to clear customs.
What is a customs declaration?
This document proves a carrier has received cargo and is also a title document.
What is a Bill of Lading?
This Incoterm requires the seller to pay freight and insurance to the port of destination.
What is CIF (Cost, Insurance and Freight)?
A global crisis from 2021–2023 caused port congestion and equipment shortages.
What is the global supply chain crisis?
This technology is now widely used for predictive maintenance and routing.
What is Artificial Intelligence (AI)?
This problem occurs when ports cannot handle arriving vessel volumes.
What is port congestion?
This process tracks goods in real time using digital platforms and GPS.
What is shipment visibility?
This Incoterm replaced DAT and requires the seller to unload the goods.
What is DPU (Delivered at Place Unloaded)?
Attacks in this sea forced ships to reroute around the Cape of Good Hope.
What is the Red Sea?
This surcharge increased in 2025–2026 due to fuel market instability.
What is an Emergency Fuel Surcharge (EFS)?
This KPI measures how reliably ships arrive on schedule.
What is schedule reliability?
This strategy increases stock levels to reduce risk from supply disruptions.
What is buffer inventory (or safety stock)?
This Incoterm places all costs, risks, and duties on the seller until final delivery.
What is DDP (Delivered Duty Paid)?
This chokepoint, also called the “Gate of Tears,” became a major risk area after 2023.
What is the Bab el‑Mandeb Strait?
In 2026, this risk remains the biggest uncertainty for global shipping routes.
What is geopolitical instability?
This strategy spreads suppliers across regions to reduce dependency risk.
What is supply chain diversification?