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AF TRANS Dictionary

24 September, 2025

We’ve prepared a list of commonly used logistics terms with meanings that aren’t always obvious.
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These terms represent just a small part of the extensive terminology used in logistics. Understanding them is essential for any professional working in this field to effectively manage supply chains.

Logistics terms:

1. 3PL (Third-Party Logistics)

Third-party logistics (3PL) refers to outsourcing logistics operations—such as warehousing, inventory management, and distribution—to an external provider. Businesses rely on 3PL partners to streamline supply chain processes, reduce operational costs, and improve delivery efficiency. This model is especially valuable for companies looking to scale without investing heavily in logistics infrastructure.

3. FOB (Free on Board)

FOB (Free on Board) is an international trade term that defines the point at which ownership and responsibility for goods transfer from the seller to the buyer. Under FOB terms, the seller handles all costs and risks until the goods are loaded onto the vessel at the port of departure. From that moment, the buyer assumes responsibility for freight, insurance, and further transport.

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