LOGISTICS DICTIONARY
Find definitions and terms used in logistics, shipping, and supply chain
management
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Terms Starting with "G"
General Average
General Average is a long-established maritime principle applied when extraordinary actions are taken during a sea voyage to protect the vessel and remaining cargo from a serious threat such as fire, grounding, or severe weather. If the ship’s master intentionally sacrifices part of the cargo, incurs emergency port expenses, or arranges rescue services to save the voyage, the financial impact is not borne by one party alone. Instead, the shipowner and all cargo owners contribute proportionally based on the value of their goods. In logistics, this principle ensures fairness and cooperation in maritime transport, making it essential for insurers, freight forwarders, and shippers to understand the financial implications of sea risks. Key Characteristics:
General Cargo
General cargo refers to goods transported in discrete packages such as cartons, pallets, crates, drums, or bags, rather than loose bulk form. These shipments are common in both domestic and international logistics and typically include consumer products, spare parts, machinery components, textiles, and electronics. Because general cargo is handled multiple times through warehouses, ports, and transport vehicles, it requires structured handling procedures, proper labeling, careful stacking, and accurate documentation. Efficient management of general cargo reduces damage, prevents misrouting, and ensures smooth coordination between all supply chain stakeholders. Key Characteristics:
General Rate Increase (GRI)
General Rate Increase is a price adjustment applied by shipping lines or carriers to raise freight rates across specific routes or services. It is usually announced in advance and implemented when carriers face higher operating costs such as fuel, port fees, or high demand. In logistics, GRI affects shipping budgets, contract negotiations, and pricing strategies, making it important for businesses to monitor and plan their transportation costs accordingly. Key Characteristics:
Generalised System of Preference
The Generalised System of Preference is a trade program that provides eligible developing countries preferential access to international markets by reducing or eliminating customs duties on specific goods. This program encourages exports, promotes economic development, and strengthens trade competitiveness. In logistics, awareness of GSP rules is essential for supply chain planning, as proper documentation and compliance are required to claim duty benefits. By reducing import costs, the GSP facilitates smoother international shipping, lowers overall supply chain expenses, and supports exporters in reaching global markets more efficiently. Characteristics:
Generalised System of Preference (GSP)
The Generalised System of Preference is a trade program that allows goods from developing countries to be imported into developed countries at reduced or zero customs duty rates. This system supports global trade by helping exporters from developing nations access international markets more easily. In logistics, GSP plays an important role in reducing landed costs, improving price competitiveness, and increasing export opportunities for eligible products. Key Characteristics:
Girth Measurement
Girth measurement is a method used to calculate the size of a package by adding its length and twice the width and height. It is commonly used by carriers to determine whether a shipment qualifies as standard, oversized, or special cargo. In logistics, girth measurement directly affects freight pricing, equipment selection, and routing decisions, making accurate measurement essential for cost control and efficient shipment planning. Key Characteristics:
Global Logistics
Global logistics refers to the planning, coordination, and management of the movement of goods, information, and resources across international borders through a network of suppliers, manufacturers, warehouses, ports, and distribution centers. It involves multiple transportation modes such as sea, air, rail, and road, as well as complex customs procedures, regulatory compliance, and cross-cultural coordination. Effective global logistics ensures that products reach international markets on time, at optimized cost, and in the required condition, making it a critical foundation for international trade and multinational supply chains. Key Characteristics:
Global Trade Item Number (GTIN)
Global Trade Item Number is a globally recognized identification code used to uniquely identify products throughout the supply chain. It enables manufacturers, distributors, retailers, and logistics providers to track, manage, and trace goods from production to final sale. GTINs are embedded in barcodes or RFID tags, allowing automated scanning during warehousing, inventory management, shipping, and retail operations, which significantly improves data accuracy, reduces errors, and enhances overall supply chain visibility. Key Characteristics:
Goods
Goods refer to all physical products or commodities that are produced, stored, transported, sold, or consumed within the supply chain. In logistics, goods move through several stages including manufacturing, warehousing, distribution, and delivery, requiring proper packaging, labeling, documentation, and handling procedures. The quality, condition, and availability of goods directly impact customer satisfaction, revenue generation, and the efficiency of business operations. Key Characteristics:
Goods and Service Tax (GST)
Goods and Service Tax is a unified indirect tax system applied to the supply of goods and services across different stages of the supply chain. In logistics, GST impacts pricing structures, invoicing processes, input tax credits, and interstate or international trade documentation. Accurate GST compliance ensures transparency, prevents legal issues, and enables businesses to claim tax credits efficiently, making tax management an essential part of logistics and distribution operations. Key Characteristics:
Goods and Services
In logistics, goods refer to tangible products that require handling, storage, and transportation, while services are intangible activities that support the movement and management of goods, such as freight forwarding, warehousing, and customs clearance. Effective logistics integrates both goods and services to ensure timely delivery, maintain product quality, and optimize cost efficiency. By managing the physical flow of goods along with the associated supportive services, logistics operations enhance overall supply chain performance, improve customer satisfaction, and maintain smooth and reliable business operations. Characteristics:
Goods Issue
Goods issue is the process of officially recording the release of goods from a warehouse or inventory location for production, distribution, or customer delivery. This step ensures that stock levels are updated accurately in inventory systems and that the correct items are dispatched according to orders. In logistics operations, goods issue plays a key role in order fulfillment, traceability, and stock control, helping prevent shortages, mis-shipments, and inventory discrepancies. Key Characteristics:
Goods Receipt
Goods receipt is the formal process of acknowledging and recording the arrival of goods at a warehouse, factory, or distribution center. It involves verifying the delivered quantity, condition, and specifications of the shipment against purchase orders and delivery documents before the items are accepted into inventory. In logistics operations, goods receipt ensures stock accuracy, prevents disputes with suppliers, supports quality control, and forms the basis for further processes such as storage allocation, invoicing, and payment approval. Key Characteristics:
Goods Received Note (GRN)
Goods Received Note is an official internal document prepared when goods are received, confirming the type, quantity, and condition of items delivered by a supplier. It is used as a reference for inventory updates, supplier invoicing, and financial reconciliation. In logistics, the GRN acts as proof of delivery acceptance and helps ensure transparency and accountability between procurement, warehouse, and finance departments. Key Characteristics:
Goods-to-Person
Goods-to-Person is a warehouse picking method where automated systems bring items directly to the picker instead of the worker walking through storage aisles. This system increases picking speed, reduces labor fatigue, improves accuracy, and optimizes warehouse space. It is widely used in e-commerce fulfillment centers where high order volumes require fast, error-free processing and efficient use of automation technology. Key Characteristics:
Green Logistics
Green logistics focuses on minimizing the environmental impact of logistics activities through sustainable practices such as fuel-efficient transportation, route optimization, recyclable packaging, and reduced emissions. It integrates environmental responsibility into supply chain planning and execution, helping organizations lower carbon footprints while maintaining operational efficiency and regulatory compliance. Green logistics is increasingly important as companies seek to meet sustainability goals and consumer expectations. Key Characteristics:
Grey Fleet
Grey fleet refers to privately owned vehicles used by employees for business purposes rather than company-owned fleet vehicles. In logistics operations, grey fleets offer flexibility and cost savings but also introduce challenges such as insurance risks, maintenance control, safety monitoring, and compliance management. Effective oversight is required to ensure these vehicles meet operational standards and legal requirements. Key Characteristics:
Gross
Gross is used in logistics to describe the full quantity, value, or measurement of goods before any form of deduction is applied, including packaging, protective materials, moisture loss, or handling adjustments. It forms the foundation for freight billing, customs valuation, inventory valuation, and operational reporting. Gross values are critical for determining how much cargo space is required, how vehicles should be loaded, and how shipments are declared to customs authorities. Without accurate gross figures, businesses risk under-charging, regulatory non-compliance, or inefficient use of transport capacity. Key Characteristics:
Gross Weight
Gross weight refers specifically to the total physical weight of a shipment including the actual goods as well as all packaging materials such as cartons, crates, pallets, wrapping, and containers. This measurement is one of the most important data points in logistics because it determines transport safety limits, freight charges, aircraft load restrictions, container planning, and regulatory compliance. Incorrect gross weight can lead to vehicle overloading, shipment rejection, safety hazards, and financial penalties, making accurate weighing and documentation a mandatory operational requirement. Key Characteristics:
Ground Shipping
Ground shipping refers to the transportation of goods by land using trucks, vans, or rail networks rather than air or sea. It is commonly used for domestic, regional, or cross-border deliveries where cost efficiency and flexible routing are priorities. Ground shipping supports high-volume distribution, last-mile delivery, and retail replenishment, making it a backbone of everyday logistics operations. Key Characteristics:
Groupage Freight
Groupage freight is a shipping method where smaller shipments from multiple shippers are consolidated into one larger load to optimize transport space and reduce costs. Each shipper pays only for the space used, making this option ideal for businesses that do not have enough cargo to fill an entire truck or container. In logistics, groupage improves capacity utilization, lowers freight expenses, and enables frequent, smaller-volume shipments. Key Characteristics:
GS1-128
GS1-128 is a standardized barcode system used in logistics to encode detailed shipment information such as batch numbers, expiry dates, serial numbers, and product identifiers. It enhances traceability, automation, and accuracy across warehousing, transportation, and inventory processes. By enabling fast scanning and data exchange, GS1-128 reduces manual errors and improves visibility throughout the supply chain. Key Characteristics:
GSM-R
GSM-R is a specialized wireless communication system used in railway operations that enables secure, real-time voice and data communication between train drivers, dispatchers, and control centers. It is widely used for train tracking, signaling, scheduling, and operational coordination, ensuring safety and efficiency in rail transport. As an internationally standardized system, GSM-R reduces risks of accidents and allows consistent communication across different railway networks. Characteristics:
Gulf of Aden Surcharge
The Gulf of Aden Surcharge is an additional fee levied by shipping lines on cargo passing through the Gulf of Aden, a region with high security risks due to piracy and maritime threats. This surcharge helps cover increased insurance premiums, security measures, and operational costs incurred while navigating the area. Shipping lines apply it per container or as a percentage of freight charges, and it may fluctuate depending on regional risk levels. The surcharge ensures that shipping operations remain safe, uninterrupted, and financially sustainable, protecting both vessels and cargo during transit through this high-risk maritime corridor. Characteristics:
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