Freight & Logistics Glossary

Third-Party Logistics. A company that provides outsourced logistics services including warehousing, transportation, and fulfilment.

A customs duty calculated as a percentage of the value of the goods, rather than a fixed fee per unit.

The air freight equivalent of a Bill of Lading. A non-negotiable contract of carriage between the shipper and the airline.

A notification sent by the shipping line or agent to the consignee to advise that their cargo has arrived or is about to arrive.

The actual date and time a vessel or aircraft arrived at the destination port.

The actual date and time a vessel or aircraft departed the origin port.

The most important document in ocean freight. Serves as: (1) receipt of cargo by the carrier, (2) evidence of the contract of carriage, and (3) document of title for the goods.

Written confirmation from the carrier or forwarder that space has been reserved on a vessel or flight for a specific shipment.

General cargo shipped as separate pieces rather than in containers — timber, steel coils, machinery, project cargo.

Unpackaged commodities shipped loose in the hold of a vessel — grain, coal, iron ore, fertiliser.

Insurance covering loss or damage to goods during transit. Distinct from carrier liability, which is limited by convention.

The company responsible for transporting goods — a shipping line, airline, trucking company, or rail operator.

The standard unit for measuring cargo volume. 1 CBM = 1m × 1m × 1m. Used to calculate ocean freight rates for LCL.

A document certifying the country where goods were manufactured. Required for claiming preferential duty rates under free trade agreements.

A facility where LCL cargo is consolidated into full containers (stuffing) or de-consolidated out of containers (stripping).

Incoterm where the seller pays freight and insurance to the destination port. Risk transfers at the origin port when cargo is on board.

Seller pays freight and insurance to the named destination. Unlike CIF, risk transfers at origin. Suitable for any mode.

The international road freight consignment note used across Europe and countries party to the CMR Convention.

The party to whom goods are consigned — typically the buyer or importer. Named in the B/L and customs declaration.

Combining multiple smaller shipments into a single container load to share freight costs. See also: LCL, Groupage.

Standardised intermodal steel box for shipping goods. Standard sizes: 20ft (20DCY), 40ft (40DCY), 40ft high cube (40HCY).

Seller pays freight to the named place of destination. Risk transfers to buyer once goods handed to first carrier.

A process where incoming freight is directly transferred to outbound vehicles with minimal storage time in between.

An area within a port terminal where containers are stored before loading or after discharge.

Seller delivers to the named destination but the buyer handles import clearance and duties.

Seller bears all costs and risks of delivery to the buyer including import duties and customs clearance.

Compensation paid to a carrier for space booked but not used. Occurs when a shipper under-loads a booked container.

Charges levied when a container remains at the port beyond the free time allowed without being collected.

Charges levied when a container is collected from the port but not returned to the shipping line within the free time.

Goods classified as hazardous under IMDG (sea), IATA DGR (air), or ADR (road) regulations. Require special packaging, documentation, and handling.

Short-distance trucking of containers between a port/rail terminal and a nearby warehouse or stuffing facility.

The expected date/time a vessel or shipment will arrive at the destination.

The expected date/time a vessel or shipment will depart from origin.

Maximum obligation on the buyer. Seller makes goods available at their premises. Buyer arranges all transport, export clearance, and pays all costs.

Shipment that fills or is booked to fill an entire container. More cost-effective than LCL for large volumes.

A unit of measurement for container volume equal to one 40-foot container. 1 FEU = 2 TEU.

Federal Maritime Commission. The US regulatory body overseeing ocean transportation. Freight forwarders working US trade must be FMC-licensed.

Seller delivers and loads goods onto the vessel. Risk transfers when goods are on board. Seller handles export clearance.

The period (days) during which a container can remain at the terminal or with the consignee without incurring demurrage or detention charges.

An agent who arranges international shipments on behalf of shippers. Coordinates carriers, customs brokers, trucking, and documentation.

A road freight service where the entire truck is dedicated to one shipment.

A blanket increase in ocean freight rates announced by shipping lines, typically applied at the start of a new season.

Another term for LCL consolidation. Multiple shippers' cargoes are grouped into a single container.

Hazardous materials. Goods subject to special transport regulations due to their chemical, biological, radiological, or physical properties.

A B/L issued by the freight forwarder to the shipper. The forwarder holds the Master B/L from the shipping line.

Harmonised System code. A 6-digit international commodity classification code used to determine duty rates and trade statistics.

International Maritime Dangerous Goods Code. The international regulation governing safe transport of dangerous goods by sea.

The entity legally responsible for ensuring imported goods comply with all laws and regulations, and for paying all duties.

International Commercial Terms. Published by ICC, these 11 standard trade terms define who bears costs and risk at each stage of shipment.

A dry port away from the coast where containers can be cleared, stuffed, stripped, and stored.

A supply chain strategy where materials arrive exactly when needed for production, minimising inventory holding.

Shipment that does not fill a full container. Cargo is consolidated with others and charged per CBM or tonne.

A payment instrument issued by the buyer's bank guaranteeing payment to the seller upon presentation of compliant documents.

Freight rate terms where the shipping line covers loading at origin and discharge at destination.

Road freight service where a shipment does not fill an entire truck. Cargo is consolidated with other shippers' goods.

A complete list of a ship's or aircraft's cargo. Required by customs at every port of call.

The Bill of Lading issued by the shipping line to the freight forwarder (or carrier) for consolidated shipments.

The movement of goods using more than one mode of transport (sea, air, road, rail) under a single contract.

A party named in the B/L to be notified of cargo arrival — usually the consignee or their customs broker.

Non-Vessel Operating Common Carrier. A company that issues Bills of Lading and contracts for cargo space without owning ships.

The cost charged by a shipping line for transporting cargo by sea. Quoted per container (FCL) or per CBM/tonne (LCL).

Cargo that exceeds the dimensions of a standard container. Requires flat rack, open top, or breakbulk transport.

All costs at the origin port: export clearance, trucking to port, port handling, documentation fees.

A detailed list of all packages in a shipment, showing descriptions, quantities, weights, and measurements. Accompanies the commercial invoice.

The port where cargo is unloaded from the vessel.

The port where cargo is loaded onto the vessel.

Inspection of goods by an independent body before shipment, to verify quality, quantity, or value. Required by some countries.

A refrigerated container or transport unit used for temperature-controlled cargo (food, pharmaceuticals, chemicals).

A document authorising the release of goods from the carrier or customs, issued after all formalities are complete.

A ship designed to carry wheeled cargo (vehicles, trailers) that drive on and off the vessel.

A non-negotiable transport document for ocean freight. Unlike the B/L, it's not a title document — used when no letter of credit is involved.

The party that tenders goods for shipment. Usually the seller or exporter, but can be a freight forwarder acting on behalf of the seller.

When less cargo is loaded than declared in the Bill of Lading.

An endorsement on a Bill of Lading confirming that cargo has been loaded onto the vessel. Required for many Letters of Credit.

When a single order is shipped in multiple consignments due to space constraints or logistics reasons.

The process of loading cargo into a container. The opposite is stripping (unloading).

An additional charge added to the base freight rate — examples include BAF, CAF, PSS, EBS, WRS.

Bank wire transfer. A common payment method in international trade, especially for regular buyers and sellers.

The standard unit for measuring container ship capacity. One 20-foot container = 1 TEU. One 40-foot container = 2 TEU.

A fee charged by the terminal operator for handling containers — loading, discharging, moving within the terminal.

Trans-Pacific Eastbound. The major trade lane from Asia to North America (West Coast).

Trans-Pacific Westbound. Goods moving from North America to Asia.

The transfer of cargo from one vessel to another at an intermediate port, rather than direct routing.

The number of days from departure to arrival. Used to measure carrier performance and plan supply chains.

Transport using a single mode only (e.g. ocean only, air only). Compare with multimodal.

A complete listing of all cargo on a vessel, submitted to customs at each port of call.

The verified weight of a packed container. Required by SOLAS since 2016 before containers can be loaded onto a vessel.

Also called dimensional weight or chargeable weight in air freight. Calculated as (L × W × H in cm) ÷ 6000.

A document issued by a warehouse operator acknowledging receipt of goods for storage.

In air freight, a point at which increasing the shipment weight actually reduces the total freight cost due to lower per-kg rates at higher weights.

A pricing model used by some carriers and couriers where rates are based on geographic zones rather than exact distance.