Freight Forwarding Glossary A-Z

Every logistics term you need to know — from ABI to Zone Charge. A comprehensive reference for importers, exporters, and supply chain professionals.

178 terms

ABI: Automated Broker Interface — the electronic system used by customs brokers to file entries with U.S. Customs.
AES: Automated Export System — electronic filing required for U.S. exports valued over $2,500.
AMS: Automated Manifest System — electronic cargo manifest filed with U.S. Customs before vessel arrival.
AWB: Air Waybill — the transport document for air freight, serving as receipt and contract of carriage.
ABI: Automated Broker Interface — the electronic system used by customs brokers to file entries with U.S. Customs.
AES: Automated Export System — electronic filing required for U.S. exports valued over $2,500.
AMS: Automated Manifest System — electronic cargo manifest filed with U.S. Customs before vessel arrival.
AWB: Air Waybill — the transport document for air freight, serving as receipt and contract of carriage.

BAF: Bunker Adjustment Factor — a fuel surcharge added to ocean freight rates to account for fluctuating oil prices.
Bill of Lading: The most important shipping document — serves as receipt, contract of carriage, and title of goods. See our complete Bill of Lading guide.
Bonded Warehouse: A secure facility where imported goods can be stored without paying duties until they're released for domestic consumption.
Booking: A reservation with a carrier for space on a specific vessel, aircraft, or truck for your cargo.
Break Bulk: Cargo that is too large for containers and shipped as individual pieces — machinery, steel, project cargo.
BAF: Bunker Adjustment Factor — a fuel surcharge added to ocean freight rates to account for fluctuating oil prices.
Bill of Lading: The most important shipping document — serves as receipt, contract of carriage, and title of goods. See our complete Bill of Lading guide.
Bonded Warehouse: A secure facility where imported goods can be stored without paying duties until they're released for domestic consumption.
Booking: A reservation with a carrier for space on a specific vessel, aircraft, or truck for your cargo.
Break Bulk: Cargo that is too large for containers and shipped as individual pieces — machinery, steel, project cargo.

CAF: Currency Adjustment Factor — a surcharge to compensate for exchange rate fluctuations in ocean freight.
Carrier: The company that physically transports the goods — a shipping line (ocean), airline (air), or trucking company (ground).
CBM: Cubic Meter — the standard unit of volume measurement for ocean freight. 1 CBM = 1m × 1m × 1m = 35.3 cubic feet.
CFS: Container Freight Station — a facility where LCL cargo is consolidated into or deconsolidated from containers.
CIF: Cost, Insurance, and Freight — an Incoterm where the seller pays freight and minimum insurance to the destination port.
Commodity Code: See HS Code.
Consignee: The party receiving the goods — usually the buyer or their agent at the destination.
Consolidation: Combining multiple small shipments from different shippers into one container (LCL) for more efficient transport.
Container: A standardized steel box (20ft or 40ft) used for ocean and intermodal freight transport.
Container Yard: A facility at or near a port where loaded and empty containers are stored before loading or after discharge.
Cross-Dock: A logistics practice where incoming cargo is directly transferred to outbound transport with minimal storage time.
Customs Bond: A financial guarantee to customs authorities that duties and taxes will be paid. Required for U.S. imports over $2,500.
Customs Broker: A licensed professional who handles customs clearance on behalf of importers/exporters. See Customs Broker vs Freight Forwarder.
Customs Clearance: The regulatory process of getting imported/exported goods through customs. See our step-by-step guide.
Customs Duty: A tax on imported goods, calculated based on the HS code, customs value, and country of origin.
CY: Container Yard — see Container Yard.
CAF: Currency Adjustment Factor — a surcharge to compensate for exchange rate fluctuations in ocean freight.
Carrier: The company that physically transports the goods — a shipping line (ocean), airline (air), or trucking company (ground).
CBM: Cubic Meter — the standard unit of volume measurement for ocean freight. 1 CBM = 1m × 1m × 1m = 35.3 cubic feet.
CFS: Container Freight Station — a facility where LCL cargo is consolidated into or deconsolidated from containers.
CIF: Cost, Insurance, and Freight — an Incoterm where the seller pays freight and minimum insurance to the destination port.
Commodity Code: See HS Code.
Consignee: The party receiving the goods — usually the buyer or their agent at the destination.
Consolidation: Combining multiple small shipments from different shippers into one container (LCL) for more efficient transport.
Container: A standardized steel box (20ft or 40ft) used for ocean and intermodal freight transport.
Container Yard: A facility at or near a port where loaded and empty containers are stored before loading or after discharge.
Cross-Dock: A logistics practice where incoming cargo is directly transferred to outbound transport with minimal storage time.
Customs Bond: A financial guarantee to customs authorities that duties and taxes will be paid. Required for U.S. imports over $2,500.
Customs Broker: A licensed professional who handles customs clearance on behalf of importers/exporters. See Customs Broker vs Freight Forwarder.
Customs Clearance: The regulatory process of getting imported/exported goods through customs. See our step-by-step guide.
Customs Duty: A tax on imported goods, calculated based on the HS code, customs value, and country of origin.
CY: Container Yard — see Container Yard.

D/O: Delivery Order — a document from the carrier or their agent authorizing release of cargo to the consignee.
DDP: Delivered Duty Paid — an Incoterm where the seller bears all costs and risks including duties and taxes to the buyer's door.
Demurrage: Charges for keeping a container at the port beyond the allowed free time (typically 3-7 days). Can cost $50-$300/day per container.
Detention: Charges for keeping a container outside the port (at your warehouse) beyond the allowed free time. Often confused with demurrage.
Drayage: Short-distance trucking between a port/airport and a nearby warehouse, CFS, or rail terminal.
DG: Dangerous Goods — substances that pose risks during transport. See our DG shipping guide.
Door-to-Door: A shipping service covering the entire journey from seller's premises to buyer's premises, including all intermediate steps.
D/O: Delivery Order — a document from the carrier or their agent authorizing release of cargo to the consignee.
DDP: Delivered Duty Paid — an Incoterm where the seller bears all costs and risks including duties and taxes to the buyer's door.
Demurrage: Charges for keeping a container at the port beyond the allowed free time (typically 3-7 days). Can cost $50-$300/day per container.
Detention: Charges for keeping a container outside the port (at your warehouse) beyond the allowed free time. Often confused with demurrage.
Drayage: Short-distance trucking between a port/airport and a nearby warehouse, CFS, or rail terminal.
DG: Dangerous Goods — substances that pose risks during transport. See our DG shipping guide.
Door-to-Door: A shipping service covering the entire journey from seller's premises to buyer's premises, including all intermediate steps.

ETA: Estimated Time of Arrival — when the vessel, aircraft, or truck is expected to reach the destination.
ETD: Estimated Time of Departure — when the vessel, aircraft, or truck is expected to leave the origin.
EXW: Ex Works — an Incoterm where the buyer takes responsibility for all transport from the seller's premises.
ETA: Estimated Time of Arrival — when the vessel, aircraft, or truck is expected to reach the destination.
ETD: Estimated Time of Departure — when the vessel, aircraft, or truck is expected to leave the origin.
EXW: Ex Works — an Incoterm where the buyer takes responsibility for all transport from the seller's premises.

FCL: Full Container Load — booking an entire container for your exclusive use. See FCL vs LCL comparison.
FEU: Forty-foot Equivalent Unit — a standard measurement equal to one 40-foot container.
FIATA: International Federation of Freight Forwarders Associations — the global trade body for freight forwarding.
FOB: Free On Board — an Incoterm where the seller's responsibility ends when goods are loaded onto the vessel at the origin port.
Free Time: The number of days allowed at a port or terminal before demurrage/detention charges begin (typically 3-7 days).
Freight Forwarder: A company that organizes shipments on behalf of shippers — booking carriers, managing documents, and coordinating logistics. See What is Freight Forwarding?
Freight Rate: The price charged by a carrier to transport goods. Use our Freight Rate Calculator for estimates.
FTZ: Foreign Trade Zone — a designated area near a port where goods can be imported, stored, and processed without paying duties until they enter domestic commerce.
FCL: Full Container Load — booking an entire container for your exclusive use. See FCL vs LCL comparison.
FEU: Forty-foot Equivalent Unit — a standard measurement equal to one 40-foot container.
FIATA: International Federation of Freight Forwarders Associations — the global trade body for freight forwarding.
FOB: Free On Board — an Incoterm where the seller's responsibility ends when goods are loaded onto the vessel at the origin port.
Free Time: The number of days allowed at a port or terminal before demurrage/detention charges begin (typically 3-7 days).
Freight Forwarder: A company that organizes shipments on behalf of shippers — booking carriers, managing documents, and coordinating logistics. See What is Freight Forwarding?
Freight Rate: The price charged by a carrier to transport goods. Use our Freight Rate Calculator for estimates.
FTZ: Foreign Trade Zone — a designated area near a port where goods can be imported, stored, and processed without paying duties until they enter domestic commerce.

General Average: A maritime law principle requiring all cargo owners to share the cost when cargo is sacrificed to save a ship. Cargo insurance covers this.
GRI: General Rate Increase — a scheduled across-the-board rate increase by shipping lines, typically announced 30-60 days in advance.
General Average: A maritime law principle requiring all cargo owners to share the cost when cargo is sacrificed to save a ship. Cargo insurance covers this.
GRI: General Rate Increase — a scheduled across-the-board rate increase by shipping lines, typically announced 30-60 days in advance.

HAWB: House Air Waybill — issued by the freight forwarder to the shipper (vs. MAWB issued by the airline).
HAZMAT: Hazardous Materials — the U.S. DOT term for dangerous goods. See DG.
HBL: House Bill of Lading — a bill of lading issued by the freight forwarder (vs. MBL issued by the shipping line).
HS Code: Harmonized System Code — a standardized 6-10 digit number used worldwide to classify traded goods and determine duty rates.
HAWB: House Air Waybill — issued by the freight forwarder to the shipper (vs. MAWB issued by the airline).
HAZMAT: Hazardous Materials — the U.S. DOT term for dangerous goods. See DG.
HBL: House Bill of Lading — a bill of lading issued by the freight forwarder (vs. MBL issued by the shipping line).
HS Code: Harmonized System Code — a standardized 6-10 digit number used worldwide to classify traded goods and determine duty rates.

IATA: International Air Transport Association — sets standards for air cargo including dangerous goods regulations.
IMDG: International Maritime Dangerous Goods Code — the international rules for shipping dangerous goods by sea.
Incoterms: International Commercial Terms — standardized trade terms (FOB, CIF, DDP, etc.) defining buyer/seller responsibilities. See our Incoterms 2020 guide.
Intermodal: Transport using multiple modes (ocean + truck, rail + truck) in a single journey, typically in the same container.
ISF: Importer Security Filing (10+2) — required electronic filing for ocean imports to the US, submitted at least 24 hours before vessel departure.
IATA: International Air Transport Association — sets standards for air cargo including dangerous goods regulations.
IMDG: International Maritime Dangerous Goods Code — the international rules for shipping dangerous goods by sea.
Incoterms: International Commercial Terms — standardized trade terms (FOB, CIF, DDP, etc.) defining buyer/seller responsibilities. See our Incoterms 2020 guide.
Intermodal: Transport using multiple modes (ocean + truck, rail + truck) in a single journey, typically in the same container.
ISF: Importer Security Filing (10+2) — required electronic filing for ocean imports to the US, submitted at least 24 hours before vessel departure.

L/C: Letter of Credit — a bank guarantee that payment will be made to the seller when shipping documents prove the goods were shipped as agreed.
Landed Cost: The total cost of a product delivered to the buyer: product cost + freight + duties + insurance + handling. See our cost guide.
LCL: Less-Than-Container Load — sharing container space with other shippers, paying per CBM. See LCL shipping rates.
L/C: Letter of Credit — a bank guarantee that payment will be made to the seller when shipping documents prove the goods were shipped as agreed.
Landed Cost: The total cost of a product delivered to the buyer: product cost + freight + duties + insurance + handling. See our cost guide.
LCL: Less-Than-Container Load — sharing container space with other shippers, paying per CBM. See LCL shipping rates.

MAWB: Master Air Waybill — the main air transport document issued by the airline to the freight forwarder.
MBL: Master Bill of Lading — issued by the shipping line to the freight forwarder (vs. HBL issued to the shipper).
MAWB: Master Air Waybill — the main air transport document issued by the airline to the freight forwarder.
MBL: Master Bill of Lading — issued by the shipping line to the freight forwarder (vs. HBL issued to the shipper).

NVOCC: Non-Vessel Operating Common Carrier — a freight forwarder that acts as a carrier by issuing their own bills of lading but doesn't own vessels.
NVOCC: Non-Vessel Operating Common Carrier — a freight forwarder that acts as a carrier by issuing their own bills of lading but doesn't own vessels.

OBL: Original Bill of Lading — the physical original document required to claim goods at the destination port (for non-telex release shipments).
Origin Charges: All costs at the export end: pickup, warehouse handling, export customs, terminal charges, and documentation.
OBL: Original Bill of Lading — the physical original document required to claim goods at the destination port (for non-telex release shipments).
Origin Charges: All costs at the export end: pickup, warehouse handling, export customs, terminal charges, and documentation.

Packing List: A detailed document listing the contents, quantities, weights, and dimensions of each package in a shipment.
Per Diem: See Detention. Daily charges for container use beyond the allowed free time.
POD: Proof of Delivery — document confirming that goods were delivered to the consignee.
Port of Discharge: The port where goods are unloaded from the vessel at the destination.
Port of Loading: The port where goods are loaded onto the vessel at the origin.
Pre-Alert: Advance notification of shipment details sent to the destination agent before cargo arrival.
PSS: Peak Season Surcharge — an additional charge applied by carriers during high-demand periods (typically Q4).
Packing List: A detailed document listing the contents, quantities, weights, and dimensions of each package in a shipment.
Per Diem: See Detention. Daily charges for container use beyond the allowed free time.
POD: Proof of Delivery — document confirming that goods were delivered to the consignee.
Port of Discharge: The port where goods are unloaded from the vessel at the destination.
Port of Loading: The port where goods are loaded onto the vessel at the origin.
Pre-Alert: Advance notification of shipment details sent to the destination agent before cargo arrival.
PSS: Peak Season Surcharge — an additional charge applied by carriers during high-demand periods (typically Q4).

Reefer: A refrigerated container for temperature-sensitive cargo like food, pharmaceuticals, and chemicals. Typically set between -25°C and +25°C.
Roll: When a carrier bumps your container to a later vessel due to overbooking or operational issues.
Reefer: A refrigerated container for temperature-sensitive cargo like food, pharmaceuticals, and chemicals. Typically set between -25°C and +25°C.
Roll: When a carrier bumps your container to a later vessel due to overbooking or operational issues.

SDS: Safety Data Sheet — a 16-section document detailing the hazards and handling of chemical substances. Required for DG shipments.
Shipper: The party who sends the goods — typically the seller or manufacturer.
Shipping Line: The company that owns or operates cargo vessels — Maersk, MSC, CMA CGM, COSCO, etc.
SOC: Shipper Owned Container — a container owned by the shipper rather than the shipping line, avoiding detention charges.
Stuffing: Loading cargo into a container.
Stripping: Unloading cargo from a container (also called 'destuffing' or 'devanning').
Surcharge: An additional fee on top of the base freight rate — BAF, CAF, PSS, GRI, war risk, congestion surcharge, etc.
SDS: Safety Data Sheet — a 16-section document detailing the hazards and handling of chemical substances. Required for DG shipments.
Shipper: The party who sends the goods — typically the seller or manufacturer.
Shipping Line: The company that owns or operates cargo vessels — Maersk, MSC, CMA CGM, COSCO, etc.
SOC: Shipper Owned Container — a container owned by the shipper rather than the shipping line, avoiding detention charges.
Stuffing: Loading cargo into a container.
Stripping: Unloading cargo from a container (also called 'destuffing' or 'devanning').
Surcharge: An additional fee on top of the base freight rate — BAF, CAF, PSS, GRI, war risk, congestion surcharge, etc.

T/T: Telegraphic Transfer — a wire payment method commonly used in international trade.
Tariff: A government-imposed tax on imported goods. Rates are determined by HS code classification and country of origin.
TEU: Twenty-foot Equivalent Unit — the standard container measurement. One 40ft container = 2 TEU.
THC: Terminal Handling Charge — fees for handling containers at the port terminal (loading/unloading).
Transshipment: Transferring cargo from one vessel to another at an intermediate port en route to the final destination.
Transit Time: The number of days from departure to arrival. Varies by mode: ocean (15-45 days), air (1-7 days), ground (1-10 days).
T/T: Telegraphic Transfer — a wire payment method commonly used in international trade.
Tariff: A government-imposed tax on imported goods. Rates are determined by HS code classification and country of origin.
TEU: Twenty-foot Equivalent Unit — the standard container measurement. One 40ft container = 2 TEU.
THC: Terminal Handling Charge — fees for handling containers at the port terminal (loading/unloading).
Transshipment: Transferring cargo from one vessel to another at an intermediate port en route to the final destination.
Transit Time: The number of days from departure to arrival. Varies by mode: ocean (15-45 days), air (1-7 days), ground (1-10 days).

Volumetric Weight: Calculated weight based on package dimensions (L×W×H÷6000 for air, ÷5000 for express). Carriers charge the higher of actual vs. volumetric weight.
Volumetric Weight: Calculated weight based on package dimensions (L×W×H÷6000 for air, ÷5000 for express). Carriers charge the higher of actual vs. volumetric weight.

W/M: Weight or Measure — the basis for LCL pricing. Chargeable weight is the greater of actual weight (per 1,000 kg) or volume (per CBM).
Warehouse Receipt: A document certifying that goods have been received and stored at a warehouse facility.
WRS: War Risk Surcharge — an additional charge for shipments passing through high-risk maritime zones.
W/M: Weight or Measure — the basis for LCL pricing. Chargeable weight is the greater of actual weight (per 1,000 kg) or volume (per CBM).
Warehouse Receipt: A document certifying that goods have been received and stored at a warehouse facility.
WRS: War Risk Surcharge — an additional charge for shipments passing through high-risk maritime zones.

Yard: See Container Yard.
Yard: See Container Yard.

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