Shipping Glossary

A comprehensive A–Z reference of freight, logistics, customs, and trade terminology used across the shipping industry.

60+ terms defined Air, sea & land freight Searchable & filterable

A

AWB: Air Waybill. A non-negotiable transport document issued by an air carrier covering the transport of cargo from airport to airport.

AMS: Automated Manifest System. US Customs electronic system requiring advance cargo data submission 24 hours before loading.

Agent: A company or individual authorized to act on behalf of a freight forwarder, carrier, or shipper in arranging shipments.

Arrival Notice: A notification issued by a carrier or agent to consignee advising of cargo arrival and estimated delivery date.

B

B/L: Bill of Lading. A legal document issued by a carrier acknowledging receipt of cargo and serving as evidence of the contract of carriage.

Breakbulk: Cargo that cannot be shipped in standard containers and must be loaded individually or in pallets, crates, or drums.

Bonded Warehouse: A secured facility approved by customs where dutiable goods may be stored without paying import duties until removed for use.

BAF: Bunker Adjustment Factor. A surcharge applied to offset the fluctuating cost of marine fuel (bunker).

C

CBM: Cubic Meter. The standard unit of measurement for cargo volume in international freight.

CFS: Container Freight Station. A facility where LCL cargo is consolidated into or de-consolidated from containers.

CFR: Cost and Freight. An Incoterm where the seller pays cost and freight to the named port of destination; risk transfers at origin port.

CIF: Cost, Insurance and Freight. An Incoterm where seller covers cost, freight, and marine insurance to the port of destination.

COD: Cash/Collect on Delivery. A payment arrangement where the recipient pays for goods upon delivery.

Customs Broker: A licensed professional who prepares and submits customs declarations on behalf of importers and exporters.

Container Dwell Time: The period a container remains at a port terminal before being picked up or loaded.

D

DAP: Delivered at Place. Incoterm where seller delivers goods ready for unloading at named destination, responsible for all transport costs and risks.

DDP: Delivered Duty Paid. Incoterm where seller bears all costs including duties and taxes to deliver goods at named destination.

Demurrage: A charge levied by shipping lines when containers are not returned within the free time allowed after discharge.

Detention: A charge for keeping a container beyond the allowed free time outside the port or terminal.

Drayage: Short-distance transport of cargo between a port terminal and nearby warehouse or inland point.

E

ETA: Estimated Time of Arrival. The projected date and time a vessel or shipment is expected to reach its destination.

ETD: Estimated Time of Departure. The projected date and time a vessel or shipment is expected to leave its origin.

EXW: Ex Works. Incoterm where seller's only obligation is to make goods available at their premises; buyer bears all costs and risks.

Empty Return: The process of returning an empty container to the carrier's designated depot after unloading.

F

FCL: Full Container Load. A shipping arrangement where one shipper cargo fills an entire container.

FCA: Free Carrier. Incoterm where seller delivers goods to a named carrier at an agreed location; risk transfers upon handover.

FOB: Free on Board. Incoterm where seller delivers goods on board the vessel at origin port; risk transfers at that point.

FMC: Federal Maritime Commission. US regulatory body overseeing international ocean transportation.

Freight Forwarder: A company that organises cargo shipments on behalf of shippers, coordinating carriers, customs, documentation, and delivery.

Free Time: The period allowed by a carrier for use of a container without incurring demurrage or detention charges.

G

GRI: General Rate Increase. A carrier periodic increase in base freight rates, announced in advance.

Gross Weight: Total weight of a shipment including packaging, pallets, and the goods themselves.

H

HS Code: Harmonized System Code. An internationally standardised system for classifying traded goods, used for customs and tariff purposes.

House B/L: A Bill of Lading issued by a freight forwarder to a shipper, as opposed to a master B\/L issued by the carrier.

Hazmat: Hazardous Materials. Goods classified as dangerous by IMDG, IATA, or ADR regulations due to risk of harm.

I

IATA: International Air Transport Association. The trade association of the world's airlines, setting air freight standards.

IMO: International Maritime Organization. UN agency responsible for safety, security, and environmental regulations for shipping.

Incoterms: International Commercial Terms. A set of pre-defined commercial terms published by the ICC defining buyer/seller responsibilities in trade.

ISF: Importer Security Filing (10+2). US requirement to file cargo information 24 hours before loading at foreign port.

L

LCL: Less than Container Load. A shipment that does not fill an entire container; cargo is consolidated with other shippers' goods.

LoLo: Lift on/Lift off. A method of cargo handling using cranes to load and unload vessels.

Lashing: The securing of cargo inside a container or on a vessel using straps, chains, or rods to prevent movement.

M

MAWB: Master Air Waybill. A transport document issued by an airline covering the entire air shipment from the freight forwarder.

MBL: Master Bill of Lading. A Bill of Lading issued by the ocean carrier to a freight forwarder covering the entire consolidated shipment.

Multimodal: A shipment transported by two or more modes of transport (sea, air, road, rail) under a single contract.

N

NOR: Notice of Readiness. Formal notice tendered by the ship master advising that the vessel has arrived and is ready to load/discharge.

NVOCC: Non-Vessel Operating Common Carrier. A freight forwarder who issues its own B/Ls and operates as a carrier without owning vessels.

Net Weight: The weight of goods only, excluding all packaging materials.

O

OBL: Original Bill of Lading. The negotiable document of title; required for release of cargo at destination.

OOG: Out of Gauge. Cargo that exceeds the internal dimensions of a standard container; requires special equipment.

Origin: The point from which a shipment begins its journey.

P

POD: Port of Discharge. The port where cargo is unloaded from the carrying vessel.

POL: Port of Loading. The port where cargo is loaded onto the carrying vessel.

PSS: Peak Season Surcharge. A temporary surcharge applied by carriers during periods of high cargo demand.

Packing List: A document listing the contents of each package in a shipment, including weights and dimensions.

R

RoRo: Roll-on/Roll-off. A type of vessel or cargo handling where wheeled cargo drives on and off the ship under its own power.

Reefer: Refrigerated container or vessel used to transport temperature-sensitive cargo.

Release Order: A document issued by a carrier or customs authority authorising release of cargo to the consignee.

S

SOC: Shipper Owned Container. A container owned by the shipper rather than leased from a carrier.

Stuffing: The process of loading cargo into a container.

Surrender B/L: A practice where the original B/L is surrendered at origin to allow the carrier to release cargo at destination without presentation of the original.

T

T/S: Transhipment. The transfer of cargo from one vessel or mode to another at an intermediate port.

Tariff: A schedule of rates, charges, and conditions applying to the transport of goods.

TEU: Twenty-foot Equivalent Unit. The standard unit for measuring container capacity based on a 20-foot container.

V

VGM: Verified Gross Mass. The certified total weight (cargo + packaging + container) required by SOLAS before loading.

Vessel: A ship or boat used for the transport of cargo by sea.

W

Waybill: A non-negotiable transport document serving as evidence of a contract of carriage.

WCA: World Cargo Alliance. A global network of independent freight forwarders and logistics companies.

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