Freight forwarding glossary
Freight terms, explained.
Plain-language definitions of the words forwarders use every day, from bills of lading to demurrage.
69 terms
A
- Air WaybillAWBDocuments
- The transport document for air cargo. It works as a receipt and a contract of carriage, but unlike an ocean bill of lading it is not a document of title.
- All-Risk CoverageRisk
- Cargo insurance that covers physical loss or damage from any external cause, except named exclusions such as war or inherent vice.
- Anti-dumping DutiesADCustoms
- Extra duties placed on imports sold below their fair market value, to protect local producers.
- Automated Manifest SystemAMSCustoms
- The US Customs system where carriers and NVOCCs file cargo manifest data before goods are loaded for the United States.
B
- Bill of LadingB/LDocuments
- Issued by the carrier as a receipt for the cargo and evidence of the contract of carriage. A negotiable bill also gives title to the goods.
- Blank SailingOcean
- A scheduled voyage the carrier cancels, or a port call it skips, usually to cut capacity when demand is weak.
- Bonded WarehouseCustoms
- A secured facility where imported goods can be stored without paying duty until they are released into the market.
- Break BulkOcean
- Cargo loaded piece by piece rather than in containers, typically oversized items such as machinery or steel.
- Bunker Adjustment FactorBAFCharges
- A surcharge that lets ocean carriers pass changes in fuel costs through to shippers.
C
- Cargo Ready DateCRDGeneral
- The date the supplier expects goods to be packed and available for pickup.
- Chargeable WeightAir
- The weight used to price air freight: whichever is greater of the actual gross weight and the volumetric weight.
- ChassisRoad
- The wheeled trailer frame a container sits on while it is moved by truck.
- Commercial InvoiceDocuments
- The seller’s invoice to the buyer. Customs uses it to check the value of the goods and calculate duties.
- ConsigneeGeneral
- The party the goods are shipped to, usually the buyer.
- ConsolidationGeneral
- Combining several smaller shipments into one larger load to lower the cost per unit.
- Container Freight StationCFSOcean
- A warehouse where LCL cargo from several shippers is consolidated into, or unpacked from, shared containers.
- Container YardCYOcean
- The terminal area where containers are stored before loading or after discharge.
- Cubic MeterCBMGeneral
- The standard volume measure for freight, used to price LCL shipments and to plan how a container is loaded.
- Customs BondCustoms
- A guarantee that an importer will pay the duties, taxes and penalties it owes to customs.
- Customs BrokerCustoms
- A licensed agent who prepares and files customs entries and clears goods on behalf of importers.
- Customs ClearanceCustoms
- Getting goods released by customs once declarations are filed and duties are paid.
- CY CutoffOcean
- The last moment a loaded container can be delivered to the terminal and still make its vessel.
D
- DeconsolidationGeneral
- Unpacking a consolidated container so each shipment can move on to its own consignee.
- Delivery OrderD/ODocuments
- The document that authorizes the terminal or warehouse to release cargo to the named party.
- DemurrageCharges
- Fees charged when a container stays inside the terminal beyond its free time.
- DetentionCharges
- Fees charged when a container is kept outside the terminal beyond the allowed free time.
- DrayageRoad
- Short-haul trucking of containers, usually between a port or rail yard and a nearby warehouse.
- DutyCustoms
- A tax charged by a government on imported goods, usually a percentage of their customs value.
- Duty DrawbackCustoms
- A refund of duties paid on imports that are later exported or destroyed.
E
- Electronic Data InterchangeEDIGeneral
- A standard way to exchange shipment and booking data between companies’ systems without manual entry.
- EORI NumberCustoms
- The identification number businesses need to import into or export from the European Union and the UK.
- Ex WorksEXWTrade terms
- An Incoterm where the seller makes goods available at its premises and the buyer arranges and pays for everything after that.
F
- Forty-foot Equivalent UnitFEUOcean
- One 40-foot container, equal to two TEU.
- Free CarrierFCATrade terms
- An Incoterm where the seller hands export-cleared goods to the buyer’s carrier at an agreed place.
- Free on BoardFOBTrade terms
- An Incoterm where the seller delivers goods on board the vessel at the port of loading, and risk then passes to the buyer.
- Freight ForwarderGeneral
- A company that organizes shipments for shippers: it books carriers, prepares documents and coordinates customs along the way.
- Fuel SurchargeFSCCharges
- An extra charge added to freight rates to cover changes in fuel prices.
- Full Container LoadFCLOcean
- A container booked and filled by a single shipper.
- Full TruckloadFTLRoad
- A truck booked for one shipper’s goods only.
G
- General AverageRisk
- A maritime principle where all cargo owners share the cost of sacrifices made to save the vessel and the rest of the cargo.
- General Rate IncreaseGRICharges
- An across-the-board rate increase that ocean carriers announce for a trade lane.
H
- High Cube ContainerHCOcean
- A container one foot taller than standard, at 9 feet 6 inches high.
- House Bill of LadingHBLDocuments
- The bill of lading a forwarder or NVOCC issues to its own shipper, separate from the carrier’s master bill.
- HS CodeCustoms
- The Harmonized System code that classifies traded goods internationally and drives their duty rate.
I
- Importer of RecordIORCustoms
- The party legally responsible for making sure imports follow customs rules and that duties are paid.
- Importer Security FilingISFCustoms
- A US filing, often called 10+2, that importers submit before ocean cargo is loaded for the United States.
- Incoterms®Trade terms
- Standard trade terms from the International Chamber of Commerce that set who pays for, and carries the risk on, each leg of a shipment.
L
- Last Free DayLFDCharges
- The final day a container can be picked up from the terminal before demurrage starts.
- Less than Container LoadLCLOcean
- A shipment too small to fill a container, so it shares space with other shippers’ cargo.
- Less than TruckloadLTLRoad
- Trucking where several shippers’ goods share one trailer.
- Letter of IndemnityLOIRisk
- A written promise to cover the carrier for any loss, often used to release cargo without the original bill of lading.
M
- Master Bill of LadingMBLDocuments
- The bill of lading the ocean carrier issues to the forwarder or NVOCC.
N
- Non-Vessel Operating Common CarrierNVOCCGeneral
- A company that issues its own bills of lading and sells ocean transport without operating ships.
- Notify PartyDocuments
- The party named on the bill of lading to be told when the cargo arrives.
O
- Origin ChargesCharges
- Fees for services at origin, such as pickup, export clearance and terminal handling.
- Original Bill of LadingOBLDocuments
- The signed paper bill of lading that must be handed over to release cargo, unless it is telex released.
P
- Packing ListPLDocuments
- A document listing the contents, quantities, weights and dimensions of every package in a shipment.
- Peak Season SurchargePSSCharges
- A surcharge carriers add during periods of high demand.
R
- Rolled CargoOcean
- Cargo bumped from its booked vessel to a later sailing, often because the ship was overbooked.
- Rules of OriginTrade terms
- The criteria that decide where a product comes from, which affects duty rates and trade agreement eligibility.
S
- Shipper’s Letter of InstructionSLIDocuments
- Instructions from the shipper to the forwarder on how to handle and document an export.
- Shipping OrderSODocuments
- The carrier’s booking confirmation that lets the shipper collect an empty container and deliver cargo.
T
- Telex ReleaseDocuments
- Electronic release of cargo at destination without presenting the original bill of lading.
- TransloadingGeneral
- Moving goods from one mode or container to another, such as from an ocean container into a domestic trailer.
- TransshipmentOcean
- Unloading cargo at an intermediate port and loading it onto another vessel to reach its destination.
- Twenty-foot Equivalent UnitTEUOcean
- The standard unit of container capacity, equal to one 20-foot container.
U
- Unit Load DeviceULDAir
- A pallet or container used to load cargo into an aircraft.
W
- WharfageCharges
- A fee charged by a port for cargo passing over its wharf.
Y
- Yard StorageCharges
- Fees for keeping a container at a trucker’s or depot yard.
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