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A trade lane (or trade route) refers to a specific pathway along which goods are transported between two or more locations, typically across international borders. Trade lanes are established based on the flow of goods and the economic relationships between countries or regions. They encompass both maritime and air routes and play a crucial role in global supply chains by facilitating the movement of goods and fostering international trade.

Transit time refers to the duration it takes for goods or shipments to travel from their origin to their destination. It is a crucial metric in supply chain and logistics management, as it directly impacts delivery schedules, inventory levels, and customer satisfaction. Transit time encompasses the entire journey of a shipment, including transportation, handling, and processing at various checkpoints along the route.

Transloading

Transloading refers to the process of transferring goods or cargo from one mode of transportation to another, typically from one type of truck or railcar to another, or from rail to truck and vice versa. This logistical practice is often employed to optimize transportation routes, reduce costs, and improve overall efficiency in supply chain operations.

Transportation Management System (TMS)

A Transportation Management System (TMS) is a specialized software solution designed to streamline and optimize transportation and logistics operations within supply chains. It provides functionalities to effectively manage and control the movement of goods from origin to destination.

Transportation lead time

Transportation lead time refers to the duration it takes for goods to be transported from the point of origin to the final destination. It encompasses the time required for transportation activities, including loading, transit, and unloading, across various modes of transport such as road, rail, air, or sea.

Transshipment

A transshipment is the process of transferring goods from one transportation vehicle or vessel to another during their journey from origin to destination. It typically occurs at intermediary points along the supply chain route, where cargo is transferred between different modes of transportation, carriers or vessels.

Twenty-foot Equivalent Unit (TEU)

Twenty-foot Equivalent Unit (TEU) is a standard unit of measurement used in the shipping industry to quantify the cargo-carrying capacity of container vessels. It represents the volume of a standard twenty-foot-long shipping container.

Ultra Large Container Vessels (ULCVs)

An Ultra Large Container Vessel (ULCV) is a massive container ship used on major trade routes, capable of carrying over 14,000 TEUs.

Vendor Managed Inventory (VMI)

Vendor Managed Inventory (VMI) is a supply chain management strategy where the supplier or vendor takes responsibility for managing the inventory levels of their products at the customer's or retailer's location. In this arrangement, the vendor monitors the inventory levels based on agreed-upon criteria such as sales data or inventory levels, and initiates replenishment as needed.

Verified Gross Mass (VGM)

Verified Gross Mass (VGM) is a term used in the shipping industry to refer to the total weight of a packed container, including its contents and packaging materials. It is a crucial requirement mandated by the International Maritime Organization (IMO) under the Safety of Life at Sea (SOLAS) convention to enhance safety in maritime transportation.

Vessel

A floating structure with its own mode of propulsion designed for the transport of cargo and/or passengers. In the Industry Blueprint 1.0 "Vessel" is used synonymously with "Container vessel", hence a vessel with the primary function of transporting containers.

Vessel Sharing Agreements (VSA)

A vessel sharing agreement (VSA) is a cooperative arrangement between shipping companies that allows them to share space and resources on vessels for specific routes.

Vessel bunching

Vessel bunching refers to the situation where multiple vessels arrive at a port simultaneously or within a short period, leading to congestion and delays. This clustering of vessels can overwhelm port facilities, causing extended wait times for berthing, loading, and unloading operations.

Vessel call sign

A vessel call sign is a unique identifier assigned to a ship for radio communication purposes. It is used to distinguish the vessel from others in maritime communication systems, including VHF radios and satellite communications.

Vessel omit

A vessel omission (sometimes called a port omission) occurs when a scheduled vessel does not call at a planned port during its voyage. This disruption means that the vessel skips the port entirely, which can impact the transportation and delivery schedules of goods.

Vessel rotation

In cargo shipping, vessel rotation is the planned sequence of port calls that a shipping vessel follows on its route to optimize cargo loading and unloading operations.

Vessel schedule

The timetable of departure and arrival times for each port call on the rotation of the vessel in question.

Voyage

A journey by sea from one port or country to another one or, in case of a round trip, to the same port.

Warehouse utilization

Warehouse utilization is a logistics metric that refers to the effective use of available warehouse space for storing goods and inventory.

Work order

Order for specific transportation work carried out by a third party provider on behalf of the issuing party.

Yard management

Logistics yard management refers to the process of overseeing and controlling the movement of trucks, trailers, containers, and other vehicles within a yard or distribution center. This includes tasks such as scheduling, tracking, and coordinating the arrival, departure, and storage of these vehicles.

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Short shipment

What is a short shipment?

A short shipment refers to a situation in logistics where the quantity of goods received by the consignee is less than what was originally shipped or expected. It can occur due to various reasons such as inventory discrepancies, packaging errors, transportation issues, or supplier mistakes. Short shipments can disrupt supply chain operations, delay production schedules, and impact customer satisfaction.

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How to prevent short shipments

Preventing short shipments is crucial for maintaining smooth logistics operations. To avoid short shipments, supply chain professionals can implement several strategies:

Accurate inventory management: Implement robust inventory management systems to track stock levels accurately and identify any discrepancies promptly.

Quality control: Conduct thorough quality checks at various stages of the supply chain to ensure that the correct quantity of goods is being shipped.

Clear communication: Maintain open communication channels between suppliers, carriers, and receivers to address any discrepancies or issues promptly.

Proper packaging: Ensure that goods are packaged securely and labeled accurately to minimize the risk of errors during picking or transportation.

Regular audits: Conduct regular audits of shipping and receiving processes to identify any potential areas for improvement and mitigate the risk of short shipments.

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Related terms

On-time in-full (OTIF)

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In this article

Short shipment

What is a short shipment?

How to prevent short shipments

Related terms

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