Supply Chain & Logistics Glossary

Plain-English definitions for ZA importers, exporters and freight professionals.

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A

ABC Analysis

Supply Chain & Warehousing

An inventory classification technique that ranks items by their value or importance, with A items being the most significant and…

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Abnormal Lead Escort

Road, Rail & Inland

Specialised private security or traffic officers required for transporting loads exceeding standard width (2.6 m) or height (4.3 m) in…

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Abnormal Load

Road, Rail & Inland

Cargo that exceeds standard legal dimensions/weight (e.g., wind turbine blades), requiring special permits and escorts. In South Africa, abnormal load…

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Ad Valorem Duty

Customs & SARS

A customs duty calculated as a percentage of the customs value of the imported goods. Most ordinary customs duties in…

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ATA Carnet

Documentation

An international customs document that allows the temporary, duty-free and VAT-free import of goods such as commercial samples, professional equipment…

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Axle Load

Road, Rail & Inland

The total weight transmitted to the road surface through the wheels of a single axle, regulated to protect road infrastructure.…

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B

Backhaul

Road, Rail & Inland

The return leg of a transport trip, ideally loaded with cargo to avoid running empty after the outbound delivery. Securing…

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Beitbridge Queue

Road, Rail & Inland

Specifically refers to the chronic congestion at the South Africa/Zimbabwe border crossing, often used as a benchmark for regional logistics…

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Berth

Port & Maritime

A designated location at a quay or jetty where a vessel ties up to load or discharge cargo. Berth availability…

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Bill of Entry

Customs & SARS

The formal customs declaration lodged with SARS to clear goods for import, export or removal, in South Africa rendered through…

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Blank Sailing

Port & Maritime

A scheduled vessel call or entire voyage that the shipping line cancels, usually to manage capacity when demand drops or…

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Bonded Logistics

Supply Chain & Warehousing

Warehousing and distribution services performed under customs control, where imported goods are stored without immediate payment of duty and VAT…

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Break Bulk

Supply Chain & Warehousing

Goods that must be loaded individually rather than in containers (e.g., bags of sugar or timber). Break bulk cargo is…

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Bullwhip Effect

Supply Chain & Warehousing

The tendency of small changes in consumer demand to become wildly amplified as orders travel up the supply chain, because…

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Bunker Fuel

Port & Maritime

The fuel used to power ships' engines, the price of which is a major component of voyage cost and the…

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C

Carbon Footprint

Supply Chain & Warehousing

The total greenhouse-gas emissions caused by a product, shipment, company or activity, expressed in tonnes of CO2-equivalent. In logistics it…

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Cargo Dues

Port & Maritime

A charge levied by the Transnet National Ports Authority on cargo passing through South African ports, payable by the cargo…

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Cargo Manifest

Documentation

A document listing all the cargo carried on a vessel, aircraft or vehicle, compiled from the individual bills of lading…

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CBM (Cubic Metre)

Supply Chain & Warehousing

The standard unit of volume used to measure cargo for freight pricing and container planning, equal to one metre by…

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Chargeable Weight

Supply Chain & Warehousing

The weight used to price a shipment, taken as the greater of the actual gross weight and the volumetric (dimensional)…

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City Deep

Road, Rail & Inland

Africa's largest "dry port" and inland container terminal located in Johannesburg. City Deep is connected to the Durban Container Terminal…

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Cold Chain

Supply Chain & Warehousing

A temperature-controlled supply chain in which perishable goods — fruit, meat, fish, pharmaceuticals, wine — are kept within a specified…

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Consignee

Documentation

The party named on a transport document as the receiver of the goods — usually the buyer or their nominated…

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Consignment Stock

Supply Chain & Warehousing

Inventory placed at a customer's or distributor's site that remains owned by the supplier until it is sold or used,…

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Container Tracking

Port & Maritime

Following a shipping container's journey in near real time using the carrier's tracking events, vessel AIS positions and port system…

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Cross-Border Haulage

Road, Rail & Inland

Transporting goods via road from SA to neighbouring countries like Zimbabwe (Beitbridge) or Botswana. Cross-border haulers require special permits, country-specific…

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Cross-Docking

Supply Chain & Warehousing

Unloading goods from an incoming semi-trailer and loading them directly into outbound trucks with little to no storage time. Cross-docking…

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Customs Broker

Customs & SARS

A licensed clearing agent who lodges customs declarations with SARS and arranges the release of goods on behalf of importers…

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Customs Duty

Customs & SARS

The tax charged by SARS on imported goods, set out in the Customs Tariff against each HS code. Most rates…

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Cycle Stock

Supply Chain & Warehousing

The portion of inventory that is depleted and replenished through normal ordering cycles, as distinct from safety stock held as…

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D

DA 185

Customs & SARS

The primary application form for registering as an importer or exporter with SARS. Completion of this form (now largely processed…

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DCT Pier 2

Port & Maritime

Specifically refers to the largest container-handling facility in Durban, often a focal point for national logistics congestion reports. Pier 2…

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Deferment Account

Customs & SARS

A SARS-approved facility that allows a registered importer or clearing agent to defer payment of customs duty and import VAT…

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Demand Planning

Supply Chain & Warehousing

Forecasting what customers will buy, in what quantities and when, so that purchasing and inventory decisions are based on expected…

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Demurrage

Port & Maritime

Charges applied by shipping lines when containers are not picked up from the port within the "free time" period. Free…

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Designated Sectors

Procurement

Specific industries (like "Bus bodies" or "Steel") where the government mandates a certain percentage of "Local Content" in the supply…

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Detention

Port & Maritime

Fees charged for the late return of an empty container to the shipping line's depot. Detention applies once a container…

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Draft (Vessel)

Port & Maritime

The vertical distance between the waterline and the lowest point of a vessel's hull, indicating how deep the ship sits…

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Drawback

Customs & SARS

A refund of customs duty already paid on imported goods that are subsequently exported, either unchanged or after incorporation into…

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Durban 100km Zone

Port & Maritime

A logistics pricing and operational radius around the port of Durban that dictates specific local cartage rates. Moves within this…

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Dwell Time

Supply Chain & Warehousing

The length of time cargo sits at a terminal, depot or facility between arrival and onward movement. At ports, long…

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E

E-Toll

Road, Rail & Inland

An electronic, open-road tolling system that charges vehicles for using designated tolled freeways without stopping, originally implemented on Gauteng freeways…

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EXW (Ex Works)

Documentation

An Incoterms 2020 rule where the seller makes the goods available at their own premises and the buyer bears all…

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F

Feeder Vessel

Port & Maritime

A smaller ship that carries containers between a major hub port and smaller regional ports, connecting them to the main…

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Fill Rate

Supply Chain & Warehousing

The proportion of customer demand met from available stock without backorder or delay, usually expressed as a percentage. It is…

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Forex Hedging

Procurement

The use of financial instruments such as forward exchange contracts, currency options or swaps to reduce exposure to adverse exchange-rate…

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Form F178

Regional Trade

A historical foreign exchange control document (now largely electronic) required by the South African Reserve Bank for export proceeds. Exporters…

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Free Time

Port & Maritime

The period during which a container may remain at the port terminal or in the importer's possession without incurring demurrage…

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Freight Forwarder

Supply Chain & Warehousing

An intermediary that organises the international movement of goods on behalf of shippers, arranging carriage, documentation, customs clearance and insurance.…

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G

Gantries

Road, Rail & Inland

Overhead structures on highways, often associated with e-tolling or traffic monitoring in Gauteng. In the logistics context, gantries supporting the…

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Gantry Crane

Port & Maritime

A large rail-mounted crane at a container terminal used to lift containers between vessels and the quay, also called a…

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H

I

Import Permit

Customs & SARS

Official permission required before certain controlled goods may be imported into South Africa, issued mainly by ITAC under the International…

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Incoterms 2020

Documentation

A set of standardised international trade terms published by the International Chamber of Commerce that define the division of costs,…

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J

Just-in-Time (JIT)

Supply Chain & Warehousing

An inventory strategy in which materials and components arrive exactly when needed for production or sale, minimising stock holding. It…

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L

Landed Cost

Supply Chain & Warehousing

The total price of a product once it has arrived at the buyer's door (Price + Freight + Duty +…

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Laycan

Port & Maritime

The window of dates within which a chartered vessel must arrive and be ready to load, comprising the layday (earliest)…

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Laytime

Port & Maritime

The period agreed in a charter party during which the charterer may load or discharge cargo without paying extra. If…

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Logistics

Supply Chain & Warehousing

The practical execution side of the supply chain: physically moving, storing and handling goods, plus the paperwork and tracking that…

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M

Mother Vessel

Port & Maritime

A large deep-sea container ship that operates the main long-haul trade routes and at hub ports exchanges cargo with smaller…

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N

Nearshoring

Supply Chain & Warehousing

Moving sourcing or production closer to your home market — for example a European brand shifting manufacture from Asia to…

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Ngqura (Coega)

Port & Maritime

South Africa's newest deep-water port; the terms "Ngqura" and "Coega" are often used interchangeably to refer to the transshipment hub…

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Notify Party

Documentation

The contact named on a bill of lading whom the shipping line must inform when the cargo arrives — typically…

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O

Open Account

Procurement

A trade payment arrangement where goods are shipped and delivered before payment is due, typically 30 to 90 days after…

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OTIF (On Time, In Full)

Supply Chain & Warehousing

The most widely used delivery-performance measure: the percentage of orders delivered on the promised date AND with the complete quantity…

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P

Packing List

Documentation

A detailed breakdown of the contents, weight, and dimensions of a shipment. The packing list is used by customs inspectors,…

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Point & Car Terminal (MPT)

Port & Maritime

A multi-purpose terminal in Durban harbour specifically tailored for RORO (Roll-on/Roll-off) vehicle logistics. New vehicles imported into South Africa (predominantly…

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Procurement

Procurement

The end-to-end process of sourcing and buying the goods and services a business needs — finding and vetting suppliers, negotiating…

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Q

R

Reefer Container

Port & Maritime

A refrigerated shipping container with an integral cooling unit used to transport temperature-sensitive cargo such as fruit, meat and pharmaceuticals.…

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Reorder Point

Supply Chain & Warehousing

The inventory level at which a new purchase order should be placed to replenish stock before it runs out. It…

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Reverse Logistics

Supply Chain & Warehousing

The flow of goods travelling backwards through the supply chain: customer returns, warranty repairs, recalls, reusable packaging and end-of-life recycling.…

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Rule 59A

Customs & SARS

A specific SARS Customs rule regarding the registration and licensing of persons for the purposes of the Customs and Excise…

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Rules of Origin

Regional Trade

The criteria used to determine the economic nationality of goods so they can qualify for preferential duty under a trade…

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S

Safety Stock

Supply Chain & Warehousing

Extra inventory held to guard against stockouts caused by demand spikes or supply delays. It acts as a buffer that…

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Specific Duty

Customs & SARS

A customs duty charged as a fixed amount per unit of quantity, weight or volume rather than as a percentage…

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State Warehouse

Customs & SARS

A facility managed by SARS Customs where seized, unclaimed, or abandoned goods are stored. If goods are not cleared within…

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Stevedore

Port & Maritime

A firm or worker responsible for loading and unloading cargo from vessels at a port. Stevedores operate cranes, secure cargo…

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Supply Chain

Supply Chain & Warehousing

The full network of organisations, people, activities and information that moves a product from raw material to the end customer…

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T

Tariff Heading

Customs & SARS

The numerical code from the Harmonised System used to classify a product in the Customs and Excise Tariff, determining the…

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The Corridor

Road, Rail & Inland

Usually refers to the "Natcor" (Natal Corridor), the vital rail and road link between Durban and Johannesburg. This corridor is…

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Transhipment

Port & Maritime

The transfer of cargo from one vessel to another at an intermediate port en route to its final destination, often…

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Tri-axle

Road, Rail & Inland

A trailer with three axles, commonly used for heavy containerised loads to comply with South African bridge formula weight limits.…

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Tug

Port & Maritime

Small, powerful boats used at ports like Port Elizabeth to help large vessels maneuver. Tugs assist container ships, bulk carriers,…

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V

W

Waybill

Documentation

A document issued by a carrier giving details and instructions relating to the shipment of a consignment of goods. A…

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Wharfage

Port & Maritime

A charge levied by a port authority for the use of the quay and infrastructure as cargo passes over the…

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Z