Freight Dictionary: Common Shipping Terms Explained

The entries below follow an alphabetical structure to help readers locate unfamiliar terminology. Each definition focuses on the meaning first and adds an operational check where the term can affect a shipping decision.

A

Accessorial Charge: An additional fee for a service or requirement outside the standard transportation arrangement. Examples may include liftgate service, special handling, or delivery to a location with restricted access. Confirm the triggering event, pricing basis, and approval requirements.

Actual Weight: The measured weight of the packed shipment, commonly including its packaging when the applicable rating rules use gross shipment weight. Compare actual weight with any dimensional rating measure specified in the quotation.

Air Waybill (AWB): A transport document used for air cargo that records shipment details and supports the carriage arrangement. Check the shipper, consignee, destination, cargo description, and applicable release instructions.

Arrival Notice: A notification that cargo is approaching or has reached a specified transportation milestone. It may include arrival information, collection instructions, and charges requiring attention. Confirm cargo availability and release requirements with the responsible provider.

B

BAF (Bunker Adjustment Factor): A surcharge that may be applied to ocean freight to account for changes in marine fuel costs. Its amount and calculation depend on the carrier or contractual arrangement. Check its validity period and whether the quoted base rate already includes it.

Bill of Lading (B/L): A sea-freight transport document that can serve as a cargo receipt, evidence of the contract of carriage, and, depending on its type, a document of title. Confirm the required form, named parties, and cargo-release procedure.

CBM (Cubic Meter): A unit of volume used to describe cargo space. For a rectangular package, multiply its packed length, width, and height in meters to calculate its volume. Check how the provider combines package volumes and applies the result to pricing.

C

Cargo Manifest: A transport record listing cargo carried on a vessel, aircraft, or other conveyance. Required data and filing responsibilities depend on the mode, route, and applicable procedures. Confirm which party prepares, submits, and corrects the record.

Certificate of Origin (COO): A document used to certify or declare the origin of goods under applicable rules. The required format, issuing authority, and certification process depend on the destination market and transaction. Confirm the document requirements before export.

CFS (Container Freight Station): A facility where less-than-container-load cargo is consolidated for export or separated for import. Check whether handling, storage, documentation, and other station-related charges are included in the quotation.

Chargeable Weight: The rating weight used to calculate a freight charge under the applicable pricing rules. Depending on the service, it may be based on actual gross weight, dimensional weight, or another specified method. Verify the inputs, calculation method, units, and rounding rules.

Commodity: The type of goods being transported. An accurate commodity description helps the parties assess handling needs, transport suitability, and documentation requirements. Avoid vague labels such as “parts” when the actual product description is available.

Consignee: The party designated to receive a shipment. Confirm the consignee’s name, contact details, delivery address, and any requirements affecting cargo release.

Consignor: The party identified as sending or consigning the goods in a transport arrangement. The consignor may be the shipper, depending on the transaction and documents. Check the named party and its responsibilities in the shipping records.

Customs Broker: A professional or authorized service provider that assists with customs declarations and related formalities, subject to local requirements. Confirm who supplies the supporting documents, prepares the declarations, and responds to customs inquiries.

Customs Clearance: The applicable process for presenting goods and information to customs authorities and meeting import or export requirements. The process, documents, and responsible parties vary by jurisdiction and shipment. Confirm who coordinates the process and who is responsible for the required filings.

CY (Container Yard): A designated area where containers are received, stored, or made available for collection at a transport facility. Confirm the relevant pickup or return location, operating requirements, and any time allowances or charges.

D

Demurrage: In common container-shipping usage, a charge generally associated with keeping a container at a terminal beyond the allowed free time. The precise trigger and rate depend on the applicable tariff, agreement, and location. Verify when free time starts and ends.

Detention: In common container-shipping usage, a charge generally associated with retaining carrier equipment outside the terminal beyond the allowed free time. Confirm the equipment-return deadline, free-time rules, and applicable charging conditions.

Destination Charges: Fees associated with services performed at the shipment’s destination. They may include terminal handling, documentation, cargo release, or other services. Request an itemized breakdown and check whether clearance and final delivery are included.

Dimensional Weight: A rating measure that reflects the space a shipment occupies under a carrier’s pricing method. The calculation generally uses packed dimensions divided by a specified divisor. Confirm the divisor and rounding method for the selected service.

Duty and Taxes: Government-imposed import charges that may apply to a shipment. The amount and applicability depend on factors such as the goods, customs classification, declared value, origin, and destination rules. Obtain confirmation from the responsible importer or customs representative.

E

ETA (Estimated Time of Arrival): The expected arrival time at a specified location or transportation milestone. Confirm whether it refers to vessel arrival, flight arrival, terminal availability, or final delivery.

ETD (Estimated Time of Departure): The expected departure time from a specified location or transportation milestone. Check which port, airport, terminal, or other departure point the estimate covers. Schedules may change when cargo readiness or operating conditions change.

F

FCL (Full Container Load): A sea-freight arrangement booked as a full-container-load service. The container does not have to be physically filled to capacity. Compare container-related charges, cargo requirements, and delivery scope with other available arrangements.

FEU (Forty-foot Equivalent Unit): A capacity measure equivalent to one standard 40-foot container. FEU helps describe container capacity, but it does not establish how much weight or cargo volume a particular container can safely carry.

FOB (Free On Board): Under the specified international trade delivery rules, the seller delivers the goods on board the buyer-nominated vessel at the named port of shipment. Risk generally transfers when the goods are on board. This rule is intended for sea and inland waterway transport, so confirm whether it fits the actual cargo handoff.

Freight: Goods being transported as cargo or, in a pricing context, the charge for transporting them. Read the surrounding quotation or document to determine which meaning applies.

Freight Forwarder: A provider that arranges or coordinates cargo transportation and related logistics activities. Depending on the agreement, the service may include carrier bookings, documentation coordination, handling arrangements, and other shipment-related tasks. Confirm the exact scope and responsibility boundaries.

Freight Quote: A quotation stating the proposed price and service scope for moving a shipment. Review the validity period, route, cargo measurements, rating basis, included services, exclusions, and conditions that may trigger additional charges.

Freight Rate: The quoted transportation price or pricing basis. A rate may be calculated by weight, volume, container, truckload, or shipment. Check the currency, unit, route, and included services before comparing offers.

Free Time: A specified period during which certain equipment-use or terminal-related charges do not apply under the relevant arrangement. The start event, deadline, eligible activities, and consequences of exceeding the allowance depend on the applicable terms. Confirm the exact dates and time calculations.

FTL (Full Truckload): A road-freight arrangement using a truck for a full-load shipment. Equipment, pricing, and loading requirements depend on the service. Verify vehicle capacity, pickup and delivery access, and whether the rate covers the requested route.

Fuel Surcharge: An additional charge related to fuel costs under a particular pricing arrangement. Its calculation and applicability vary by service and provider. Check the rate basis, validity period, and whether the surcharge is already included in the quoted amount.

Freighting: The activity of transporting goods or arranging their transportation. Because the term describes an activity rather than a standardized service package, confirm which transport and handling tasks the provider has agreed to perform.

G

Gross Weight: The weight of goods together with their packaging and other components included under the applicable measurement rules. Provide verified packed weights and confirm how the carrier requires shipment weight to be reported.

H

HS Code: A code within the Harmonized System used to classify goods for international trade. The system provides a common international classification framework, while countries may apply additional national tariff subdivisions. Confirm the applicable classification with the responsible customs representative rather than relying on a generic product name.

I

International Trade Delivery Rules: Standardized rules used in sales contracts to allocate specified delivery tasks, costs, and risks between sellers and buyers. The agreed rule, named place or port, and stated edition matter. These rules do not by themselves determine ownership transfer, payment terms, or every customs obligation.

Import Clearance: The customs process required for goods entering a country or customs territory. Requirements depend on the goods, destination, applicable procedures, and transaction. Confirm the document set, declaration responsibility, and arrangements for duties and taxes.

L

LCL (Less than Container Load): A sea-freight arrangement in which cargo shares container capacity with cargo from other shipments. Compare consolidation, handling, minimum charges, origin and destination services, and total delivery scope when evaluating LCL against FCL.

LTL (Less Than Truckload): A road-freight arrangement in which a shipment uses part of a truck’s available capacity rather than a dedicated full-truckload service. Confirm terminal transfers, handling requirements, delivery access, and the full quoted scope.

M

Manifest: A record of cargo carried on a transport vehicle or conveyance. The required data, submission process, and responsible party depend on the mode and applicable rules. For the specific cargo record filed for a shipment, confirm which party checks its accuracy.

Multimodal Transport: Transportation that uses two or more modes, such as truck, rail, sea, or air, within a coordinated movement. Confirm which provider covers each segment, where custody changes, and how charges and delays are handled at transfers.

N

Notify Party: The party designated to receive notification about an arrival or another shipping event. The notify party is not automatically the consignee, cargo owner, or party responsible for paying the freight. Check the named party and contact information in the applicable transport document.

NVOCC (Non-Vessel-Operating Common Carrier): A sea-freight intermediary that provides ocean transportation services without operating the vessel used for the shipment. Its precise legal role and obligations depend on the applicable jurisdiction and contractual arrangement. Confirm the contracting party, transport document issuer, and service responsibilities.

O

Origin Charges: Fees associated with services performed at the shipment’s origin. They may include collection, handling, documentation, or other services, depending on the quotation. Request an itemized list of included services and exclusions.

P

Packing List: A document describing how goods are packed, commonly including package counts, contents, weights, and dimensions where required. Reconcile it with the actual cargo and other shipping records before submission.

POL (Port of Loading): The port where cargo is loaded onto a vessel for the relevant sea-freight leg. Confirm that the named port matches the booking and planned routing.

POD (Port of Discharge): The port where cargo is discharged from a vessel. In other logistics contexts, POD can also mean proof of delivery. Spell out the intended meaning when reviewing a quote or shipping instruction.

R

Reefer Container: A temperature-controlled container used for cargo requiring a specified temperature range. Confirm the required temperature setting, ventilation, equipment availability, cargo tolerances, and monitoring responsibilities before booking.

S

Shipping Instructions (SI): Information supplied by the shipper or its representative to support preparation of transport documents. It may include shipping parties, cargo descriptions, package details, marks, and other required information. Verify the submission deadline and reconcile the instructions against the booking and commercial documents.

Shipper: The party identified as sending the cargo in the relevant transportation arrangement or document. The shipper’s obligations depend on the transaction and applicable agreements. Confirm who supplies the shipping data, coordinates collection, and authorizes the booking.

T

TEU (Twenty-foot Equivalent Unit): A container-capacity measure equivalent to one standard 20-foot container. TEU is used to describe container capacity, not the actual cargo weight or volume of a shipment.

THC (Terminal Handling Charge): A charge associated with handling cargo at a transport terminal. It may be itemized separately or included in another rate, depending on the arrangement. Confirm its location, calculation basis, and whether it has already been charged elsewhere.

Transit Time: The stated duration of a transportation service or segment. Check the start and end points and whether collection, terminal handling, customs processing, transfers, or final delivery are included.

U

UN Number: A four-digit identification number assigned to a dangerous substance, article, or applicable group of dangerous goods under the relevant classification system. The number alone does not establish transport eligibility. Verify the proper shipping name, hazard class, packaging, and documentation requirements.

V

Volumetric Weight: A rating measure that reflects the space cargo occupies under a carrier’s pricing method. The calculation generally uses packed dimensions divided by a specified dimensional divisor. Confirm the applicable divisor, rating basis, and rounding rules.

W

Waybill: A transport document recording shipment details and supporting the carriage arrangement. The document’s functions depend on the mode, document type, and applicable terms. Check the required form and cargo-release process rather than assuming all waybills have the same legal effect.

Trade delivery terms affect how sellers and buyers allocate specified delivery tasks, transportation costs, and risks. They can influence which services appear in a freight quotation, but they do not replace the need to identify the actual service scope and responsible parties. Always record the selected term together with the precise named place or port and the agreed rule edition.

FOB (Free On Board) is intended for sea and inland waterway transport. The seller delivers when the goods are on board the nominated vessel at the named port of shipment. Risk generally transfers at that point, and the buyer is responsible for costs from that stage onward under the applicable rule.

CIF (Cost, Insurance and Freight) is also intended for sea and inland waterway transport. The seller arranges and pays for carriage and specified insurance to the named destination port, but risk generally transfers to the buyer once the goods are on board at the shipment port. The insurance obligation under this rule does not automatically mean that every potential loss is covered.

DAP (Delivered at Place) generally places responsibility on the seller to bring the goods to the named destination and make them available ready for unloading. Under the usual allocation, the buyer handles import clearance and associated duties and taxes.

DDP (Delivered Duty Paid) generally places the broadest delivery responsibility on the seller among these four options. The seller is responsible for delivering the goods to the named destination with import clearance completed and applicable import duties and taxes paid, ready for unloading. Confirm that the seller can perform the required import formalities in the destination jurisdiction.

FOB and CIF apply to sea and inland waterway movements. For containerized cargo handed to a carrier at a terminal before vessel loading, another rule may better match the actual delivery point. Ask the parties to confirm the appropriate rule rather than selecting one solely because it appears on a previous quotation. These rules do not by themselves settle ownership transfer or payment terms.

The transportation mode describes how cargo moves. The service scope identifies which activities a provider arranges around that movement. Choose a mode based on the route, cargo characteristics, delivery schedule, and total cost, then confirm which collection, terminal handling, clearance coordination, and delivery activities are included.

Sea freight

Sea freight moves cargo by vessel and may suit larger shipments or goods that can accommodate a longer transportation schedule. FCL and LCL describe different container arrangements. Before booking, confirm the loading and discharge ports, container or consolidation method, origin and destination charges, and inland transportation requirements.

Air freight and express service

Air freight moves cargo by aircraft and may suit time-sensitive shipments or goods with a relatively high value compared with their weight or volume. Packed dimensions may significantly affect pricing, so lightweight cargo can still incur substantial charges when it occupies considerable space.

Express service generally emphasizes expedited handling or delivery arrangements. It is not automatically equivalent to every air-freight service. Verify the actual service level, cargo eligibility, transit estimate, delivery endpoint, and applicable restrictions.

Rail freight and trucking freight

Rail freight moves cargo by rail and may form part of a domestic or cross-border route. Its suitability depends on route availability, terminal access, connecting transportation, cargo characteristics, and the required delivery schedule. Verify which segments the quotation covers.

Trucking freight moves cargo by road and may cover local collection, long-distance transportation, or delivery between terminals and warehouses. FTL and LTL differ in their use of truck capacity and their pricing arrangements. Confirm equipment requirements, delivery access, loading responsibilities, and potential additional charges.

Door-to-door and break-bulk services

Door-to-door shipping generally describes a service arranged from an origin address to a destination address. The label alone does not confirm that customs charges, duties, taxes, unloading, or special handling are included. Request the precise delivery endpoint, a breakdown of included services, and a written list of exclusions.

Break-bulk shipping involves handling cargo units individually rather than moving them as a standard containerized load. Cargo dimensions, weight, lifting points, packaging, and handling equipment can influence the plan and cost. Confirm terminal capabilities, lifting arrangements, cargo securing, and loading and unloading responsibilities before booking.

A quotation connects cargo measurements to a pricing method and a defined service scope. The headline freight rate alone may not represent the total price for the requested movement. Review the measurement basis, additional charges, included activities, and excluded services before authorizing the shipment.

How to calculate CBM

For a rectangular package, convert its packed dimensions to meters and multiply its length, width, and height. Consider a carton measuring 120 × 80 × 100 centimeters.

Illustrative calculation: CBM = 1.2 × 0.8 × 1.0 = 0.96 cubic meters.

For multiple packages, calculate each package’s volume and combine the results according to the quotation’s measurement rules. Use the final packed dimensions rather than unverified product dimensions, because outer packaging affects the space occupied during transportation.

How to calculate volumetric weight

Some freight services use a dimensional divisor to convert cargo volume into a rating weight. For illustration, an air-freight quotation may specify a divisor of 6,000 cubic centimeters per kilogram.

Illustrative calculation: Volumetric weight = (120 × 80 × 100) ÷ 6,000 = 160 kilograms.

If the packed shipment has an actual gross weight of 110 kilograms and the applicable pricing rules use the greater of actual weight and volumetric weight, the chargeable weight in this example is 160 kilograms. The divisor, measurement method, and rounding rules are illustrative conditions, not universal standards. Confirm the method used for the actual service.

How to compare freight quotations

Before approving a quote, request a written breakdown of the base freight rate, applicable surcharges, origin and destination charges, and services billed separately. For charges described as “as applicable” or “at cost,” ask what triggers the charge, how the amount is calculated, who approves the expense, and when notification will occur.

A lower base rate does not establish which provider offers the lower total cost. Compare the complete agreed service scope and identify any additional charges that may apply before committing to a shipment.

Shipping documents communicate cargo details, transaction information, and transportation instructions. The required documents depend on the route, mode, cargo, transaction, and applicable requirements. The shipper should provide accurate information, while the responsible forwarder or customs representative should identify the required document set and relevant handoffs.

Commercial invoice and packing list

A commercial invoice records transaction and goods information, which may include the seller, buyer, product description, quantity, and declared value. A packing list describes the packages and may include contents, weights, and dimensions. Check both documents against the actual cargo and reconcile differences before submission.

Transport documents and shipping instructions

A bill of lading is used for sea freight, while an air waybill is used for air freight. The documents have different functions and should not be treated as interchangeable. Shipping instructions provide data needed to prepare transport documents. Confirm the named parties, cargo details, submission deadline, document format, and release procedure with the responsible provider.

Customs brokerage and import coordination

When a separate customs representative is needed, review the scope of the customs brokerage service and establish who provides classification information, prepares or submits declarations, supplies supporting documents, and responds to customs queries. Do not assume a freight booking automatically includes customs representation or the payment of duties and taxes.

An import service may coordinate multiple activities associated with inbound cargo, depending on the agreed arrangement. Confirm whether the scope includes transportation, document coordination, customs-related assistance, or final delivery. Record who is responsible for each handoff and who must approve additional work or charges.

HS classification and country-of-origin documentation serve different purposes. The responsible customs representative should check the relevant classification and origin requirements, while the shipper provides accurate product and manufacturing information. Do not infer a final classification or eligibility for preferential treatment from a general commodity description alone.

Cargo insurance and carrier liability are different considerations. A transportation contract may set out liability conditions, but those conditions do not necessarily provide the same protection as an insurance policy. Coverage depends on the policy, the insured interest, the shipment, the route, and the relevant exclusions and claim conditions.

When reviewing financial exposure, assess the cargo insurance service and confirm the insured goods, declared value, covered transportation stages, deductibles, exclusions, and claim notification process. Check that the policy matches the intended route and handling arrangements rather than relying on a general service description.

Loss, damage, delay, and extra charges can occur at different shipment stages. The carrier, forwarder, warehouse, customs representative, shipper, and consignee may have different obligations under their respective agreements. Retain booking confirmations, cargo records, packing details, transport documents, and appropriate evidence to help the responsible parties investigate discrepancies.

Incomplete cargo data and mismatched quotations are two common sources of avoidable logistics problems. Both can affect price, handling plans, document preparation, and delivery arrangements.

Using a vague commodity description

A description such as “general goods” may be insufficient when the provider needs to assess handling requirements, restrictions, documentation, or classification. The shipper should supply an accurate product description, package count, final packed weight, and dimensions. Disclose relevant handling or transportation considerations before booking.

Comparing different service scopes

One provider may quote transportation between terminals, while another includes pickup and final delivery. Ranking the offers by headline rate alone can lead to an incorrect purchasing decision. Match the route, cargo data, rating basis, delivery endpoint, and included services before comparing totals.

Finally, assign responsibility for collection, document submission, customs coordination, charge approval, shipment monitoring, and cargo receipt. If the booking does not identify the owner of a required task, resolve the handoff before the shipment reaches that stage.

• Use the glossary to identify freight terms, then confirm contract-specific meanings where they affect cost or responsibility.
• Compare transportation modes and FCL, LCL, FTL, and LTL arrangements against the cargo, route, handling needs, and total service scope.
• Check CBM, gross weight, and chargeable weight against the provider’s rating method before accepting a quotation.
• Request an itemized breakdown of transportation charges, surcharges, terminal fees, and excluded services.
• Confirm trade delivery terms, shipping documents, customs responsibilities, insurance arrangements, and delivery handoffs before dispatch.