Logistics terms L
Label
Strip of, for example, paper or metal attached to an object to indicate the nature, ownership, destination, contents and / or other particulars of the object.
LASH
The abbreviation LASH stands for Lighter Aboard Ship. This is the name of the type of ship that carries standardised barges. The barges, which, loaded, can weigh up to 600 tons, are loaded and unloaded by means of a heavy gantry crane on board the ship. As soon as the barges are unloaded into the water, they are attached to each other into large push convoys. The LASH ships are used only between areas with large deltas (the Maas delta, the mouth of the Mississippi), because only there can the large push convoys sail far into the hinterland. LASH transhipment takes place, among other places, in the Rotterdam Waalhaven. Iron, steel, paper and rice are efficiently transhipped in this way from ocean ships to inland vessels and vice versa.
Lashing
Lashing is the securing of goods to keep them in place by the use of, for example, wires, ropes, chains and straps, so that they can be transported safely.
Lashing point
A fastening point on a means of transport to which chains, ropes or straps can be attached to keep goods in place.
Laytime
Laytime is the time agreed for the loading or unloading of the ship.
Less than Container Load (LCL)
1. A general reference for identifying freight in any quantity intended to be transported in a container, where the carrier is responsible for packing and / or unpacking the container. 2. For operational purposes, an LCL container (less than full container) is regarded as a container in which multiple shipments or parts thereof are shipped.
Less than Truck Load (LTL)
Term for when the weight or volume of the shipment(s) to be transported does not fill a standard truck.
Letter of Credit (L/C)
A Letter of Credit (L/C) is a financial instrument used in international trade to guarantee payment between buyer and seller. It is issued by a bank on behalf of the buyer and provides assurance to the seller that he will be paid, provided that the agreed conditions are met.
The Letter of Credit is therefore an undertaking by an issuing bank to pay, at the request of the applicant, a third party as beneficiary an agreed amount at an agreed time. Usually against presentation of the documents named in the L/C, on condition that they comply with the conditions of the letter of credit.
The bank can be named on the Bill of Lading, but only if the L/C prescribes this. In most cases this is done with a "To Order of [Bank Name]" Bill of Lading in order to retain control over the goods until the buyer meets the payment conditions.
How does a Letter of Credit work?
- Agreement between buyer and seller
- The buyer and seller conclude a contract in which they agree that the payment will take place via a Letter of Credit.
- Application to the bank
- The buyer applies for an L/C from his bank (the issuing bank).
- The bank assesses the creditworthiness of the buyer and draws up the L/C with specific conditions, such as delivery date, documents and payment conditions.
- Sending of the L/C to the seller's bank
- The issuing bank sends the L/C to the advising or confirming bank (usually in the country of the seller).
- The seller is notified and checks whether the conditions are acceptable.
- Delivery of goods and documents
- The seller ships the goods in accordance with the conditions of the L/C.
- After shipment, the seller collects the required documents (such as invoice, bill of lading, insurance documents) and submits them to his bank.
- Checking and payment
- The seller's bank checks the documents and forwards them to the issuing bank.
- If the documents are in order, the bank pays the seller.
- Reimbursement by the buyer
- The issuing bank asks the buyer to pay the costs.
- As soon as the buyer pays, he receives the documents and can take receipt of the goods.
Letter of indemnity
A letter of indemnity is a document whereby the shipper indemnifies the shipping line against the consequences of claims that may arise from the issue of a clean bill of lading (clean B/L) when the goods were not loaded in accordance with the description in the bill of lading. There are two types of letters of indemnity: letters of indemnity for quantitative clauses and letters of indemnity for non-quantitative clauses. When the bill of lading is the basis of a documentary credit, the bank requires a clean bill of lading. This is a bill of lading without reservations by the master. If, for one reason or another, the goods were not loaded in accordance with the description, the master will want to make reservations on the bill of lading. If he does this, there is no longer a clean bill of lading and the bank will not provide a documentary credit. Therefore, in this case the reservations are usually not included in the bill of lading, but are noted on the mate's receipt. In addition, a letter of indemnity is drawn up, in which the shipper indemnifies the master (the shipping line) against the possible consequences thereof.
Letter of indemnity (LOI)
A letter of indemnity (LOI) is a document whereby the shipper indemnifies the shipping line against the consequences of claims that may arise from the issue of a clean bill of lading (clean B/L) when the goods were not loaded in accordance with the description in the bill of lading. There are two types of letters of indemnity: letters of indemnity for quantitative clauses and letters of indemnity for non-quantitative clauses. When the bill of lading is the basis of a documentary credit, the bank requires a clean bill of lading. This is a bill of lading without reservations by the master. If, for one reason or another, the goods were not loaded in accordance with the description, the master will want to make reservations on the bill of lading. If he does this, there is no longer a clean bill of lading and the bank will not provide a documentary credit. It is therefore customary in this case not to note the reservations on the bill of lading, but on the mate's receipt, and to draw up a letter of indemnity, in which the shipper indemnifies the master (the shipping line) against the possible consequences thereof.
LIFO
LIFO (Liner In/Free Out) is the reverse of FILO. With LIFO, the loading of the goods into the ship is included in the freight price, but the unloading from the ship is not. In this case, the consignee of the goods at destination himself must pay separately for the unloading from the ship.
LILO
With LILO (Liner In/Liner Out), both the loading and the unloading of the freight into and out of the ship are included in the freight price.
Loading metre
A loading metre corresponds to one linear metre of loading space in a truck. This is used as a calculation unit for goods that cannot be stacked or on which you cannot stack. As a result, the lost volume is compensated. The quotation includes the conversion factor for loading metre. Usually one loading metre corresponds to 1,850 kg. One euro pallet = 0.4 loading metre, one block pallet = 0.5 loading metre.
Loading permit
The loading permit is the document whereby the ship's agent, as representative of the shipping line, possibly via the freight forwarder, gives permission to the stevedore to load the goods on board the sea-going ship.
Logistics
Logistics focuses on the organisation, planning, control and execution of the goods flows, money flows and information flows via development and purchasing, followed by production and distribution with the necessary personnel to the end customer, with the aim of meeting the needs of the market at low cost and capital use. It is about finding a balance between seemingly difficult-to-reconcile objectives; cost minimisation/low capital use and customer service maximisation. In a rapidly changing world, good logistics control is an absolute 'must' for more and more companies.
Lost slots
We speak of Out of Gauge (OOG) cargo when the dimensions of the goods to be shipped fall outside the measurements of the container. The shipping lines charge an OOG surcharge in connection with the lost slots. After all, no more containers can be loaded where the goods protrude.
Low loader
For the transport of tall indivisible objects, there are trailers with a lowered loading floor; the low loader. As a result, the cargo lies much lower on the trailer, which is more suitable for low viaducts.
Low Sulphur Surcharge
The Low Sulphur Surcharge (LSS), also known as Low Sulphur Bunker Surcharge or Low Sulphur Fuel Surcharge (LSF), arose from an IMO regulation (International Maritime Organisation) that aims to reduce the amount of sulphurous fuel emissions emitted by cargo ships. Fuel with a high sulphur content contributes to a considerable amount of sulphur dioxide emissions, which are known to be dangerous to public health. Carriers sailing ships through so-called designated Emission Control Areas (ECA) are obliged to use fuel with a sulphur content of 0.1% or less, which is a drastic reduction compared to the 1.0%-concentration fuel used in maritime shipping nowadays. Emission Control Areas (ECA) include the Baltic Sea, the English Channel, the North Sea and 200 nautical miles from the American and Canadian coasts.
Low Water Surcharge
A Low Water Surcharge is introduced by shipping lines as soon as the water level of a river is so low that it limits the loading capacity of a ship. This means that fewer containers can be loaded on board. Shipping lines compensate for this with a low water surcharge.
