Some abbreviations in logistics

Correct labeling of the cargo, including the use of the conventional abbreviations, as well as the logistics terminology and abbreviations in the logistics, knowledge of which is necessary for all the participants in the process of the transportation, are the prerequisite of the timely and lossless delivery of the cargo by any mode of the transport.

Logistics terminology and abbreviations in rules of Incoterms

Logistics terminology in the rules of Incoterms includes both directly terms and the abridgements – the common abbreviations in the logistics.

For example, all the standards of the rules of Incoterms, depending on the destination of the delivery are allocated into four categories and are designated with the one-letter symbols – terms which should not be confused with the abbreviations and which have an extremely precise definition:

  • E – the place of the departure (Departure);
  • F – the main carriage is unpaid (Main Carriage Unpaid);
  • C – the main carriage is paid (Main Carriage Paid);
  • D – the place of the delivery (Arrival).

Moreover, all of these one-letter terms are used as the part of others – three letter terms designating the mode of the delivery. For example, the term mode FCA (the mode of the unpaid service by the seller, giving the place of the shipment) is used when according to the contract the seller is obliged to deliver the cargo (goods) to the carrier nominated by the buyer. The term FCA means that the seller is responsible for the loading / unloading, but only if the shipment of the goods is carried in his building.

However, logistics terminology Incoterms contains a lot of abbreviations. For example, in the rules of Incoterms-2010 the abbreviations DAP and DAT are introduced, indicating the new modes of the delivery:

  • the term DAT (abbreviation of Delivered at Terminal) – delivery of the goods to the specified terminal, while the term “terminal” may mean either an air terminal, railway warehouse, sea or river port or just a warehouse and is used for the delivery of the cargo by any transport, including the use of the combined transportation;
  • the term DAR (the abbreviation of Delivered at Point) – the supply of the customs cleared goods to the place mentioned by the buyer (after which the seller may consider his obligations to be fulfilled), the action mode DAR as well as DAT is also applied to all the types of the delivery – by air, rail, road, water transport as well as the combined transportation.

These abbreviations (terms) replaced the used by the rules of Incoterms-2000 terms DDU, DAF, DEQ and DES but the latter can also be used in the contracts. Therefore, in the text of the contract for the delivery or the sale and purchase it is necessary to clearly indicate which edition of Incoterms (Incoterms-2000 or Incoterms-2010) shall be applied in this case.

Important clarifications

Above as an example only two abbreviations are used, and their definitions are decrypted only by the basic parameters. Overall, the logistics terminology of Incoterms, including the abbreviations in logistics, contains dozens of terms, each of which has the full and complete description.

In addition, the logistics terminology is not limited only to the rules of Incoterms, but includes a host of other terms and abbreviations due to the regulations in force in a given country and in one or another form of the transportation.

For example, the three-letter symbol REX is a sign of the danger and indicates the explosive, which is prohibited for the air transportation; and the abbreviations RCX, RGX, RXB, RXC, RXD, RXE and RXG mean the same, but allow to transport dangerous goods but only by cargo aircraft.

A lot of the similar examples can be given. Only highly qualified specialists can understand the exact meaning of a term or abbreviation and strictly follow their requirements. For our employees the logistics terminology and abbreviations in logistics are always an open book, which means that the goods will be delivered on time and in the full safety.