Let’s begin from the beginning…. the first question that comes to our mind is what is shipping and logistics? To understand shipping and logistics we need to know what a shipment is? Shipment is any product/commodity that is required to be shipped/moved, while the entire process of shipping/moving the product from the point of origin to the destination is known as logistics. Terms like “Cargo” or “Freight” is synonymously used for the word shipment.

The subject of shipping and logistics is deceptively simple. It is one of those things regarding which people have a preconceived notion that it is something complex and complicated. But if one keeps aside these biases, they will find that not only is logistics simple but also an extremely fascinating subject.

Shipping and logistics form an integral part of the links in the supply chain. Now you must be wondering what a Supply chain is. Well, a supply chain comprises of all parties/team/ individuals involved directly or indirectly in closing a requirement or demand of customers. The supply chain is not limited to the manufacturer or the supplier but it includes the transportation team, shipping line/airline(carriers), warehousing team, container freight stations (CFS), custom housing agents (CHAs), retailers and customers/consumers themselves. The movement process of a product or commodity through the applicable channels listed above to reach the end-user is known as logistics. The mode of the movement may vary from roadways/railways/ ocean freight or air freight or sometimes via a combination of these four modes.

In today’s world due to the complexity in the governing regulations and rapidly changing processes of the shipping and logistics industry due-diligence at each step of the freight movement is extremely critical and quite time-consuming. Thus, many manufacturers or traders are working in the 3PL (3rd Party Logistics) model or outsource the logistics to the freight forwarding service providers a.k.a. freight forwarders. Although we go by the verbatim “Supply Chain” but in reality, the entire thing is a mesh or a network.

Therefore, at Impo Freight Pvt. Ltd. we understand the fundamentals of the business and the nitty-gritty of the regulations and processes. This helps us in supporting our clients in the most efficient manner. The key requirements for the successful execution of the freight movement are the following :
1) Transparent communication between all the involved parties.
2) Proper planning and execution considering the anticipated lag time
3) Proactive risk identification, management and mitigation plan.
4) Time Management
5) Appropriate pricing
6) Inventory availability
7) Trained customer service and operations team – to attain perfect coordination within the parties.
8) Understanding the logistics process, local regulations and the roles and responsibilities of each and every stakeholder in that specific shipment.

In this article, I would like to enlist some of the commonly used acronyms in the shipping and logistics industry for the reference of a layperson.
AI – Air Import
AE- Air Export
SI – Sea Import
SE – Sea Export
CHA – Custom Housing Agent
CFS – Container Freight Station

Incoterms* – The Incoterms are the rules laid down by the International Chambers of Commerce. They are the essential terms frequently used in the trade of goods. These are the rules and terms recognized globally and used across the world in order to bring in standardization.
ExW – Ex-Works
FOB - Free on board
DAP – Delivered at place
DAT – Delivered at Terminal
DPU – Delivery at place unloaded
CIF – Cost Insurance Freight
ODC – Over Dimensional Cargo
FAS – Free alongside Ship
CFR – Cost and Freight
DDP – Delivery Duty Paid
FCA – Free Carrier
CIP – Carriage and Insurance paid to

Reference
• https://iccwbo.org/resources-for-business/incoterms-rules/incoterms-2020/