The freight glossary.
From 3PL to VGM. The terms brokers assume you know, explained so you actually do. Search it, filter it, send the link to a customer.
- 3PLLogistics
- Third-Party Logistics. A company that provides outsourced logistics services including warehousing, transportation, and fulfilment.
- Ad Valorem DutyCustoms
- A customs duty calculated as a percentage of the value of the goods, rather than a fixed fee per unit.
- Air Waybill (AWB)Documents
- The air freight equivalent of a Bill of Lading. A non-negotiable contract of carriage between the shipper and the airline.
- Arrival NoticeOperations
- A notification sent by the shipping line or agent to the consignee to advise that their cargo has arrived or is about to arrive.
- ATA (Actual Time of Arrival)Tracking
- The actual date and time a vessel or aircraft arrived at the destination port.
- ATD (Actual Time of Departure)Tracking
- The actual date and time a vessel or aircraft departed the origin port.
- Bill of Lading (B/L or BOL)Documents
- 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.
- Booking ConfirmationOperations
- Written confirmation from the carrier or forwarder that space has been reserved on a vessel or flight for a specific shipment.
- Break BulkCargo Types
- General cargo shipped as separate pieces rather than in containers — timber, steel coils, machinery, project cargo.
- Bulk CargoCargo Types
- Unpackaged commodities shipped loose in the hold of a vessel — grain, coal, iron ore, fertiliser.
- Cargo InsuranceInsurance
- Insurance covering loss or damage to goods during transit. Distinct from carrier liability, which is limited by convention.
- CarrierParties
- The company responsible for transporting goods — a shipping line, airline, trucking company, or rail operator.
- CBM (Cubic Metre)Measurements
- The standard unit for measuring cargo volume. 1 CBM = 1m × 1m × 1m. Used to calculate ocean freight rates for LCL.
- Certificate of Origin (CO)Documents
- A document certifying the country where goods were manufactured. Required for claiming preferential duty rates under free trade agreements.
- CFS (Container Freight Station)Operations
- A facility where LCL cargo is consolidated into full containers (stuffing) or de-consolidated out of containers (stripping).
- CIF (Cost, Insurance & Freight)Incoterms
- Incoterm where the seller pays freight and insurance to the destination port. Risk transfers at the origin port when cargo is on board.
- CIP (Carriage and Insurance Paid)Incoterms
- Seller pays freight and insurance to the named destination. Unlike CIF, risk transfers at origin. Suitable for any mode.
- CMR NoteDocuments
- The international road freight consignment note used across Europe and countries party to the CMR Convention.
- ConsigneeParties
- The party to whom goods are consigned — typically the buyer or importer. Named in the B/L and customs declaration.
- ConsolidationOperations
- Combining multiple smaller shipments into a single container load to share freight costs. See also: LCL, Groupage.
- ContainerEquipment
- Standardised intermodal steel box for shipping goods. Standard sizes: 20ft (20DCY), 40ft (40DCY), 40ft high cube (40HCY).
- CPT (Carriage Paid To)Incoterms
- Seller pays freight to the named place of destination. Risk transfers to buyer once goods handed to first carrier.
- Cross-dockingLogistics
- A process where incoming freight is directly transferred to outbound vehicles with minimal storage time in between.
- CY (Container Yard)Operations
- An area within a port terminal where containers are stored before loading or after discharge.
- DAP (Delivered at Place)Incoterms
- Seller delivers to the named destination but the buyer handles import clearance and duties.
- DDP (Delivered Duty Paid)Incoterms
- Seller bears all costs and risks of delivery to the buyer including import duties and customs clearance.
- Dead FreightFinance
- Compensation paid to a carrier for space booked but not used. Occurs when a shipper under-loads a booked container.
- DemurrageFinance
- Charges levied when a container remains at the port beyond the free time allowed without being collected.
- DetentionFinance
- Charges levied when a container is collected from the port but not returned to the shipping line within the free time.
- DG (Dangerous Goods)Compliance
- Goods classified as hazardous under IMDG (sea), IATA DGR (air), or ADR (road) regulations. Require special packaging, documentation, and handling.
- DrayageOperations
- Short-distance trucking of containers between a port/rail terminal and a nearby warehouse or stuffing facility.
- ETA (Estimated Time of Arrival)Tracking
- The expected date/time a vessel or shipment will arrive at the destination.
- ETD (Estimated Time of Departure)Tracking
- The expected date/time a vessel or shipment will depart from origin.
- EXW (Ex Works)Incoterms
- Maximum obligation on the buyer. Seller makes goods available at their premises. Buyer arranges all transport, export clearance, and pays all costs.
- FCL (Full Container Load)Service Types
- Shipment that fills or is booked to fill an entire container. More cost-effective than LCL for large volumes.
- FEU (Forty-foot Equivalent Unit)Measurements
- A unit of measurement for container volume equal to one 40-foot container. 1 FEU = 2 TEU.
- FMCCompliance
- Federal Maritime Commission. The US regulatory body overseeing ocean transportation. Freight forwarders working US trade must be FMC-licensed.
- FOB (Free on Board)Incoterms
- Seller delivers and loads goods onto the vessel. Risk transfers when goods are on board. Seller handles export clearance.
- Free TimeFinance
- The period (days) during which a container can remain at the terminal or with the consignee without incurring demurrage or detention charges.
- Freight ForwarderParties
- An agent who arranges international shipments on behalf of shippers. Coordinates carriers, customs brokers, trucking, and documentation.
- FTL (Full Truck Load)Service Types
- A road freight service where the entire truck is dedicated to one shipment.
- GroupageOperations
- Another term for LCL consolidation. Multiple shippers' cargoes are grouped into a single container.
- GRI (General Rate Increase)Finance
- A blanket increase in ocean freight rates announced by shipping lines, typically applied at the start of a new season.
- HazmatCompliance
- Hazardous materials. Goods subject to special transport regulations due to their chemical, biological, radiological, or physical properties.
- House Bill of Lading (HBL)Documents
- A B/L issued by the freight forwarder to the shipper. The forwarder holds the Master B/L from the shipping line.
- HS CodeCustoms
- Harmonised System code. A 6-digit international commodity classification code used to determine duty rates and trade statistics.
- IMDG CodeCompliance
- International Maritime Dangerous Goods Code. The international regulation governing safe transport of dangerous goods by sea.
- Importer of RecordCompliance
- The entity legally responsible for ensuring imported goods comply with all laws and regulations, and for paying all duties.
- IncotermsIncoterms
- International Commercial Terms. Published by ICC, these 11 standard trade terms define who bears costs and risk at each stage of shipment.
- Inland Container Depot (ICD)Operations
- A dry port away from the coast where containers can be cleared, stuffed, stripped, and stored.
- Just-in-Time (JIT)Logistics
- A supply chain strategy where materials arrive exactly when needed for production, minimising inventory holding.
- LCL (Less than Container Load)Service Types
- Shipment that does not fill a full container. Cargo is consolidated with others and charged per CBM or tonne.
- Letter of Credit (LC)Finance
- A payment instrument issued by the buyer's bank guaranteeing payment to the seller upon presentation of compliant documents.
- Liner TermsFinance
- Freight rate terms where the shipping line covers loading at origin and discharge at destination.
- LTL (Less than Truck Load)Service Types
- Road freight service where a shipment does not fill an entire truck. Cargo is consolidated with other shippers' goods.
- ManifestDocuments
- A complete list of a ship's or aircraft's cargo. Required by customs at every port of call.
- Master B/LDocuments
- The Bill of Lading issued by the shipping line to the freight forwarder (or carrier) for consolidated shipments.
- Multimodal TransportService Types
- The movement of goods using more than one mode of transport (sea, air, road, rail) under a single contract.
- NVOCCsParties
- Non-Vessel Operating Common Carrier. A company that issues Bills of Lading and contracts for cargo space without owning ships.
- Notify PartyParties
- A party named in the B/L to be notified of cargo arrival — usually the consignee or their customs broker.
- Ocean FreightService Types
- The cost charged by a shipping line for transporting cargo by sea. Quoted per container (FCL) or per CBM/tonne (LCL).
- OOG (Out of Gauge)Cargo Types
- Cargo that exceeds the dimensions of a standard container. Requires flat rack, open top, or breakbulk transport.
- Origin ChargesFinance
- All costs at the origin port: export clearance, trucking to port, port handling, documentation fees.
- Packing ListDocuments
- A detailed list of all packages in a shipment, showing descriptions, quantities, weights, and measurements. Accompanies the commercial invoice.
- Port of Discharge (POD)Operations
- The port where cargo is unloaded from the vessel.
- Port of Loading (POL)Operations
- The port where cargo is loaded onto the vessel.
- Pre-Shipment Inspection (PSI)Compliance
- Inspection of goods by an independent body before shipment, to verify quality, quantity, or value. Required by some countries.
- ReeferEquipment
- A refrigerated container or transport unit used for temperature-controlled cargo (food, pharmaceuticals, chemicals).
- Release OrderDocuments
- A document authorising the release of goods from the carrier or customs, issued after all formalities are complete.
- Ro-Ro (Roll-on Roll-off)Service Types
- A ship designed to carry wheeled cargo (vehicles, trailers) that drive on and off the vessel.
- Sea WaybillDocuments
- 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.
- ShipperParties
- The party that tenders goods for shipment. Usually the seller or exporter, but can be a freight forwarder acting on behalf of the seller.
- Short ShipmentOperations
- When less cargo is loaded than declared in the Bill of Lading.
- SOB (Shipped on Board)Documents
- An endorsement on a Bill of Lading confirming that cargo has been loaded onto the vessel. Required for many Letters of Credit.
- Split ShipmentOperations
- When a single order is shipped in multiple consignments due to space constraints or logistics reasons.
- StuffingOperations
- The process of loading cargo into a container. The opposite is stripping (unloading).
- SurchargeFinance
- An additional charge added to the base freight rate — examples include BAF, CAF, PSS, EBS, WRS.
- T/T (Telegraphic Transfer)Finance
- Bank wire transfer. A common payment method in international trade, especially for regular buyers and sellers.
- TEU (Twenty-foot Equivalent Unit)Measurements
- The standard unit for measuring container ship capacity. One 20-foot container = 1 TEU. One 40-foot container = 2 TEU.
- THC (Terminal Handling Charge)Finance
- A fee charged by the terminal operator for handling containers — loading, discharging, moving within the terminal.
- TranshipmentOperations
- The transfer of cargo from one vessel to another at an intermediate port, rather than direct routing.
- Transit TimeTracking
- The number of days from departure to arrival. Used to measure carrier performance and plan supply chains.
- TPEBTrade Lanes
- Trans-Pacific Eastbound. The major trade lane from Asia to North America (West Coast).
- TPWBTrade Lanes
- Trans-Pacific Westbound. Goods moving from North America to Asia.
- UnimodalService Types
- Transport using a single mode only (e.g. ocean only, air only). Compare with multimodal.
- Vessel ManifestDocuments
- A complete listing of all cargo on a vessel, submitted to customs at each port of call.
- VGM (Verified Gross Mass)Compliance
- The verified weight of a packed container. Required by SOLAS since 2016 before containers can be loaded onto a vessel.
- Volume WeightMeasurements
- Also called dimensional weight or chargeable weight in air freight. Calculated as (L × W × H in cm) ÷ 6000.
- Warehouse ReceiptDocuments
- A document issued by a warehouse operator acknowledging receipt of goods for storage.
- Weight BreakFinance
- 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.
- Zone PricingFinance
- A pricing model used by some carriers and couriers where rates are based on geographic zones rather than exact distance.
For freight forwarders
The guides are free. The CRM runs the rest of the job.
Enquiry, quotation, shipment, documents, invoice and the customer’s own portal on one record. Bring one real job to a 30-minute demo.