English for Logistics

Chapter 2: Global logistics services

 (1)

Until a few years ago, companies used to

outsource only parts of their logistics operations to
providers specializing in services such as
distribution or warehousing. A single company
sometimes had several third-party logistics
providers (3PL)
 (2)

The globalization of trade and increasing demand

for services, however, has led to a drastic shift in
logistics concepts and management with an
impact on both producers and logistics providers.
 (3)

As far as manufacturers are concerned, logistics

management has become a lot more complex. By now,
many of them have learned that outsourcing single
segments to different providers has not really made
their logistics operations more efficient. That is why
they are looking for providers who can provide a higher
level of service and more comprehensive supply
chain solutions.
 (4)
For 3PLs all over the world, requirements keep getting
more demanding with customers asking for a wider range
of logistics solutions. Apart from that, logistics providers
today are facing an increasingly tough and highly
competitive market. In recent years, growing pressure on
prices has led to a decrease in profit margins. In order to
compensate for this, many third-party logistics providers now
offer value-added services for their customers. Due to
fierce competition in the 3PL market, however, experts
predict that only the big international players will be able to
work profitably in the future.
 (5)

The big global players, also called super-3PLs, can

provide their customers with comprehensive supply
chain or end-to-end solutions. These services
usually include forwarding, transportation,
consolidation, customs brokerage, warehousing,
and distribution, as well as a range of value-added
services.
- end-to-end solution: a process where a system or
service is carried out from beginning to end
- forwarder= freight forwarder = freight broker =
international freight forwarder (intermediary)
- Customs brokerage firms facilitate the shipment
and delivery of goods across geographical borders
for individuals and organizations.
 (4) - D. New challenges for 3PL
For 3PLs all over the world, requirement keep getting
demanding with customers asking for a wider range of
logistics solutions. Apart from that, logistics providers today
are facing an increasingly tough and highly competitive
market. In recent years, growing pressure on prices has led
to a decrease in profit margins. In order to compensate for
this, many third-party logistics providers now offer value-
added services for their customers. Due to fierce
competition in the 3PL market, however, experts predict that
only the big international players will be able to work
profitably in the future.
2. True or false
3. Matching
full container load:
An amount of goods to be transported that fills a container

third-party logistics:
In logistics and supply chain management is an organization's use of third-party
businesses to outsource elements of its distribution, warehousing, and fulfillment
services.

heavy goods vehicle:

a large truck used for transporting goods (Goods vehicle exceeding 7.5 tonnes gross
weight)

distribution centre:
- a specialized place in a building or a warehouse which is stocked with the goods or
products that are to be distributed to the resellers or the wholesalers or in some cases
directly to the end customers.

less than container load:

used to refer to a quantity of goods that is not enough to fill a container
electronic data interchange:
Inter-company, computer-to-computer transmission of business information in a standard
format.

value-added services:
a more premium upgrades to a basic service

radio frequency identification:

The use of radio frequency technology including RFID tags and tag readers to identify
objects. Objects may include virtually anything physical, such as equipment, pallets of stock,
or even individual units of product.

International Organization for Standardization

an independent, non-governmental organization that develops and publishes international
standards. It's responsible for setting the bar for quality management systems worldwide.

Global Positioning System:

A system which uses satellites to precisely locate an object on earth. Used by trucking
companies to locate over-the-road equipment.
FCL vs LCL
● FCL – Full Container Load
- FCL refers to a full container load, where the shipment or cargo requires the full
space of the container/ An amount of goods to be transported that fills a container
- A full container load is a shipment of goods that fills a standard 20-foot or 40-foot
ocean container.
● LCL – Less than Container Load
- used to refer to a quantity of goods that is not enough to fill a container
- A term that means that freight is loaded in a container with other freight that may
 Container Yard

CY = where containers are stored on

the terminal or dry port before they are
loaded or offloaded from a ship.
Containers are either stored for loading
to be transported elsewhere, or
offloaded as they arrive into the port or
terminal.
 CFS- Container Freight Station

CFS = Place for packing and unpacking LCL consignments.

➔ a station or warehouse where a number goods or products are stored to be
shipped together in one or more containers. At a CFS, the goods normally belong to a
number of different customers, and the shipment is often done via LCL shipments.
Container Freight Station
- CFS
HGV- Heavy Goods Vehicle
HGV = a large truck used for
transporting goods (Goods vehicle
exceeding 7.5 tonnes gross weight)
DC- Distribution Center
- A distribution center is a facility for
storing goods before shipping them
directly to customers
- A specialized place in a building or a
warehouse which is stocked with the
goods or products that are to be
distributed to the resellers or the
wholesalers or in some cases directly
to the end customers.
RFID= radio frequency identification

RFID = The use of radio frequency

technology including RFID tags and tag
readers to identify objects. Objects may
include virtually anything physical, such
as equipment, pallets of stock, or even
individual units of product.
• ISO = International Organization for Standardization
an independent, non-governmental organization that develops and publishes
international standards. It's responsible for setting the bar for quality management
systems worldwide.

• GPS= Global Positioning System

A system which uses satellites to precisely locate an object on earth. Used by trucking
companies to locate over-the-road equipment.
4. Matching
 Transshipment

Transshipment (sometimes also trans-shipment or

transhipment) means the unloading of goods from
one ship and its loading into another to complete a
journey to a further destination
 Break-bulk

- Break bulk is the system of transporting goods in pieces

separately, rather than being shipped in a container.
Goods shipped in crates, bags, boxes, drums, barrels
without the use of container are referred to as break bulk
cargoes. These type of cargoes are usually large in sizes
and dimensions.
- Breaking down of bulk consignment (eg from a trailer or
container) into individual consignments for delivery.
 Break-bulk

- The separation of a single consolidated bulk load

into smaller individual shipments for delivery to the
ultimate consignees. This is preceded by a
consolidation of orders at the time of shipment,
where many individual orders which are destined for
a specific geographic area are grouped into one
shipment in order to reduce cost.
 Cross-docking
- Cross-docking is a method for
distributing products more efficiently
without needing to store them in
warehouses for long periods of time.
- Cross-docking is a logistics
procedure where products from a
supplier or manufacturing plant are
distributed directly to a customer or
retail chain
- Cross-docking is the practice of
unloading goods from inbound
delivery vehicles and loading them
directly onto outbound vehicles.
5. Complete the table using the words form
6. Complete the sentences with the words in the box
 NVOCC- Non-vessel Operating Common Carrier

An ocean carrier who performs all of the services of

a carrier, but who does not own their own vessel(s).
They operate by leasing or buying available space
in containers and using their own House Bill of
Lading to contract with customers.
 House Bill of lading vs. Master Bill of lading

A house bill of lading (HBL) is a document issued by a non-

vessel operating common carrier (NVOCC) to a shipper to
acknowledge receipt of their items for shipment. In other words,
it's a receipt for the goods.

A master bill of lading (MBL) is a document issued by a carrier,

and it represents the contract of carriage for the goods. Once the
carrier has confirmed that it has received the goods, it will issue
the MBL to the party that booked the freight, usually the freight
forwarder or the shipper.
 NVOCC Freight Forwarder
✓ Responsibilities:
✓ Responsibilities:
Freight forwarders act as intermediaries, Common carriers primarily focus on
coordinating the entire logistics process. the physical movement of goods.
They handle documentation, Customs They offer transportation services
clearance, and the arrangement of various through established routes and
transportation modes. schedules.
Liabilities: ✓ Liabilities:
✓ Liabilities Common carriers usually have a
Freight Forwarders:
Freight forwarders often assume limited higher degree of liability. They are
liability, acting as agents for their clients. responsible for the safe delivery of
They facilitate the transportation process, goods, and may be held accountable
but may not be directly responsible for any for damages or losses during transit.
damages or delays.
 F.F Common Carrier
✓ Responsibilities:
✓ Responsibilities:
Freight forwarders act as intermediaries, Common carriers primarily focus on
coordinating the entire logistics process. the physical movement of goods.
They handle documentation, Customs They offer transportation services
clearance, and the arrangement of various through established routes and
transportation modes. schedules.
Liabilities: ✓ Liabilities:
✓ Liabilities Common carriers usually have a
Freight Forwarders:
Freight forwarders often assume limited higher degree of liability. They are
liability, acting as agents for their clients. responsible for the safe delivery of
They facilitate the transportation process, goods, and may be held accountable
but may not be directly responsible for any for damages or losses during transit.
damages or delays.
7. Complete the
statement using the
words in the box