02/10/2026
One Logistics tip a day ;-
📦 10 Logistics Terms Every Non-Logistics Person Should Know
Here are 10 simple terms that can help anyone sound like a logistics pro:
🔟 Top Logistics Terms (Explained)
TEU (Twenty-foot Equivalent Unit)
➡️ A standard size for shipping containers. One TEU = 1 small container.
Incoterms
➡️ Rules that define who pays for what during shipping (e.g., freight, insurance, risk).
Bill of Lading (B/L)
➡️ A legal document between shipper and carrier that confirms goods were loaded.
Demurrage
➡️ Late fees you pay when you keep containers too long at the port.
FOB (Free on Board)
➡️ The buyer takes ownership once the goods are on the ship.
FCL / LCL Cargo
➡️ FCL = Full Container Load (one shipment fills a container).
➡️ LCL = Less than Container Load (your goods share space with others).
Freight Forwarder
➡️ A company that organizes shipping for importers/exporters.
Customs Clearance
➡️ The process of getting goods legally approved to enter a country.
Lead Time
➡️ The total time from order placement to delivery.
Supply Chain
➡️ The full journey of a product — from raw material to customer.
💡 Why This Matters:
Understanding these basics helps professionals in sales, finance, procurement, and tech collaborate better with logistics teams.
I'm Lee Kenny, Consultant in Logistics Shipping and Forwarding at Malaysia