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Key logistics terms in one place

Basic terms

Basic terms

The basic unit of measurement in container transport. It corresponds to the volume of a 20-foot container. However, most cargo on the New Silk Road is transported in 40-foot containers (2 TEU), which are more economical in land transport.

The transport of goods in the same loading unit (e.g., a container) using different modes of transport (e.g., ship → truck → train → truck). The key aspect is that the goods themselves are not reloaded — only the container changes transport modes.

An inland terminal that performs the functions of a seaport. Customs clearance, cargo consolidation, and transshipment between different transport modes take place here. An example is Dry Port Małaszewicze in Poland — one of the most important dry ports in the world.

A key phenomenon for the New Silk Road due to differences in rail gauge. Trains coming from China (broad gauge: 1520 mm) must be transloaded onto wagons with standard gauge (1435 mm) at borders such as Terespol/Brest or Dostyk/Alashankou.

A logistics operation involving unloading goods from an incoming train/container and directly loading them onto another mode of transport (e.g., local trucks), bypassing storage in a warehouse. It reduces delivery time and costs.

Documents constituting a contract of carriage. 

  • CIM applies in Western Europe
  • SMGS applies in the East (including China, Russia, Belarus)

On the New Silk Road, efforts are made to use a unified CIM/SMGS consignment note, eliminating the need to re-register goods at borders and reducing bureaucracy.

A train with a fixed composition running directly from sender to receiver (or between specific terminals) without detaching wagons along the route. It is essentially a freight “express” and forms the backbone of speed on the New Silk Road.

Defines which party in a transaction (seller or buyer) organizes and pays for transport. In trade with China, this is closely linked to Incoterms (e.g., FOB, CIF, DAP).

The final stage of the supply chain — transporting goods from a rail terminal directly to the final recipient’s warehouse. Even though trains may travel up to 10,000 km, the last mile (usually by truck) is often the most expensive and logistically demanding stage.

An external company managing transport processes. On the New Silk Road, operators such as PKP Cargo Connect or Chinese rail platforms coordinate not only transport but also insurance, customs, and warehousing.

Małaszewicze (Poland)– the “Gateway to Europe,” where entry into the EU occurs
Dostyk/Khorgos (Kazakhstan/China)
“Bottlenecks” are major junction points where trains enter areas with different rail gauges.

The rail gauge standard used in former Soviet Union countries (including Kazakhstan, Russia, Belarus) and Mongolia.

The rail gauge standard used in Poland and Western Europe.

The New Silk Road requires two changes of wheelsets or (more commonly) container transshipment at the China–Kazakhstan border and the Belarus–Poland border.

A set of international rules defining sales conditions and responsibility for goods in transport. In rail logistics from China, the most common are:

  • FCA (Free Carrier): the seller delivers goods to a rail terminal in China
  • DAP (Delivered at Place): the seller is responsible for delivering goods to a specified location (e.g., a warehouse in Poland).

The process of combining smaller shipments from different senders into one container. This allows companies without enough goods to fill a full container (FCL) to use rail transport by sharing costs.

The reverse of consolidation. After the container arrives at the destination terminal (e.g., in Łódź or Warsaw), it is opened, and individual shipments are sorted and delivered to final recipients.

The total time from dispatch to delivery. On the New Silk Road, the standard lead time currently ranges from 12 to 18 days—positioned between maritime transport (approx. 35–45 days) and air transport (3–7 days).

The movement of a train through a country that is neither the origin nor the destination. Poland plays a key role as a transit country for goods traveling from China to Germany, France, the Netherlands, and other Western European countries.

A specialized railway wagon with a flat structure, without walls or a roof, designed specifically for transporting containers. On the New Silk Road, high-capacity flatcars are used, capable of carrying 20', 40', or 45' containers.

An international system for classifying goods. Every product transported by rail must have an assigned HS code, which determines customs duties and allows border services to identify cargo without opening the container.

A company acting as an intermediary between the importer/exporter and customs authorities. On rail routes, these agencies handle customs declarations, which is crucial when goods enter the EU customs zone from China.

IT systems that enable real-time monitoring of a container’s location. In long-distance rail transport, this is done using GPS transmitters mounted on containers or data from railway infrastructure operators’ systems.

Incoterms

Incoterms (International Commercial Terms) define the distribution of costs, risks, and responsibilities between seller (exporter) and buyer (importer) in international trade.

They clarify who is responsible for transport, insurance, customs clearance, and risk of damage.

Pojęcia FOB, CIF i DAP to jedne z najczęściej stosowanych Incoterms FOB, CIF, and DAP are the most commonly used Incoterms. 

FOB means that the seller is responsible for the goods until they are loaded onto the vessel at the port of shipment.

  • Seller arranges export transport and customs clearance
  • Buyer assumes risk once goods are on board
  • Buyer pays sea freight and insurance

The FOB rule is used exclusively in sea and inland waterway transport.

Under CIF, the seller covers more costs than under FOB.

  • Seller pays for freight and minimum insurance
  • Risk transfers at loading in the port of shipment
  • Buyer handles import clearance and unloading

Most important: even though the seller pays for freight and insurance, the risk transfer point is the same as in FOB — at the port of shipment.

DAP means that the seller is responsible for transport almost until final delivery.

  • The seller bears all costs and risks until the place of destination (e.g. buyer’s warehouse)
  • Goods are delivered ready for unloading
  • The buyer is responsible for unloading and import customs clearance (duties, VAT)

DAP can be used for any mode of transport (road, rail, sea, air).

This is the key difference between these terms:

  • FOB and CIF – risk transfers at the port of shipment, at the moment of loading onto the vessel
  • DAP – risk transfers at the destination, before unloading

This means that under DAP, the seller bears significantly more responsibility for the transport process.

It depends on experience and operational capabilities:

  • DAP – most convenient for the buyer (minimum transport-related formalities)
  • CIF – a compromise (seller organizes transport, but risk transfers earlier)
  • FOB – more control for the buyer, but also more responsibilities

In practice, the choice depends on who is better at logistics and negotiating transport costs.

Obligation/Cost FOB (Free On Board) CIF (Cost, Insurance, Freight) DAP (Delivery at Place)
Type of transport Sea/Inland waterway Sea/Inland waterway Any (sea, rail, road)
Main transport Buyer Seller Seller
Insurance (minimum) Buyer (recommended) Seller (mandatory) Buyer (recommended, risk remains with seller until delivery)
Risk transfer point On board – port of shipment On board – port of shipment At destination (before unloading)
Export customs clearance Seller Seller Seller
Import customs clearance Buyer Buyer Buyer
Unloading at destination Buyer Buyer Buyer

Planning an import from China?

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