Resources

Logistics Glossary

Freight terms and abbreviations you'll meet on quotes, bookings and documents — explained in plain language.

A

Arrival notice
Notice from the carrier or forwarder that a shipment is about to arrive, with the vessel, ETA, charges due and what is needed to release the cargo.
ATA / ATDActual Time of Arrival / Departure
The time a vessel, aircraft or truck actually arrived or departed — as opposed to the estimate (ETA / ETD).
AWBAir Waybill
The transport document for air freight. It is a receipt and evidence of the contract of carriage, but — unlike an original bill of lading — not a document of title. A master AWB (MAWB) is issued by the airline, a house AWB (HAWB) by the forwarder.

B

B/LBill of Lading
The key ocean transport document, issued by the carrier: a receipt for the goods, evidence of the contract of carriage and — as an original negotiable B/L — a document of title. Whoever holds the original can claim the cargo.
BAFBunker Adjustment Factor
A surcharge on ocean freight that follows the price of ship fuel (bunker). Carriers revise it monthly or quarterly.
Bonded warehouse
A customs-approved warehouse where imported goods can be stored without paying duties and VAT until they are released for free circulation or re-exported.
Booking confirmation
The carrier's confirmation of space on a vessel or flight, with the booking number, schedule, cut-off times and the depot where empty containers can be picked up.
Break bulk
Cargo shipped as individual pieces rather than in containers or in bulk — machinery, steel, project cargo — loaded piece by piece by crane.

C

Carrier
The company that actually performs the transport — a shipping line, airline, railway or haulier — and issues the master transport document.
CBMCubic metre
The volume unit freight is measured in: length × width × height in metres. LCL ocean freight is usually priced per CBM.Read more
Certificate of origin
A document confirming the country where the goods were produced. Needed to claim preferential duty rates under trade agreements (e.g. EUR.1) or when the buyer's country requires it.
CFSContainer Freight Station
A warehouse at or near the port where LCL cargo is received, consolidated into containers before export, or unpacked after import.
Chargeable weight
The weight freight is billed on: the higher of the actual gross weight and the volumetric weight. Light, bulky cargo is charged by volume.
CIM
The international rail consignment note under the COTIF convention, used for rail freight in Europe. Its counterpart for the CIS, China and Mongolia is SMGS; a combined CIM/SMGS note avoids re-documenting at the gauge change.
CMR
The international road consignment note under the CMR convention. It confirms the haulier received the goods and sets the carrier's liability limit.
Commercial invoice
The seller's invoice to the buyer. Customs use it to establish the value of the goods, so it must show the parties, description, HS codes, quantities, prices, currency and Incoterms® rule.
Consignee
The party the goods are shipped to, named on the transport document — usually the buyer or its agent.
Consolidation (groupage)
Combining several smaller shipments from different shippers into one container or truck to share the cost. The basis of LCL and LTL services.
Customs broker
A licensed agent who prepares and lodges customs declarations on behalf of the importer or exporter.
Customs clearance
Completing the customs formalities — declaration, documents, duties and taxes — so the goods can leave (export) or enter (import) a country.
Cut-off
The deadline for delivering the container to the terminal (CY cut-off), submitting shipping instructions (SI / doc cut-off) or the VGM. Miss it and the box is rolled to the next vessel.
CYContainer Yard
The area of a terminal where full and empty containers are stored before loading or after discharge.

D

Dangerous goods (DG)
Cargo classified as hazardous — flammable, toxic, corrosive, lithium batteries and more. It needs proper classification, packing, labelling and declarations: IMDG Code at sea, IATA DGR by air, ADR on the road.
Delivery order
An instruction from the carrier or its agent to the terminal to release the cargo to the named party, issued once freight is paid and the B/L surrendered.
Demurrage
A daily charge for a full container staying in the terminal beyond the free time — usually because the cargo isn't cleared or collected in time.
Detention
A daily charge for keeping the carrier's container outside the terminal beyond the free time — until the empty box is returned to the depot.
Door-to-door
A service covering the whole route from the shipper's premises to the consignee's, including pick-up, main carriage and final delivery.

E

EORIEconomic Operators Registration and Identification
The registration number every business needs to import into or export from the EU. It goes on every customs declaration.
ETA / ETDEstimated Time of Arrival / Departure
The planned arrival or departure time of a vessel, flight or truck. Updated as the voyage progresses.

F

FCLFull Container Load
A container used by one shipper only, priced per box regardless of how full it is. Usually cheaper than LCL from about 13–15 CBM.Read more
Feeder vessel
A smaller ship that carries containers between a main hub port and regional ports — e.g. from Rotterdam or Hamburg to Klaipėda.
Free time
The number of days a container can stay in the terminal or with the customer before demurrage or detention starts. Can often be extended when booking.
Freight forwarder
A company that organises transport on behalf of the shipper — books carriers, handles documents and customs, and coordinates the route end to end. Cargo 4S is a freight forwarder.
FTL / LTLFull / Less than Truck Load
FTL: a whole truck for one shipper. LTL: part loads from several shippers sharing a truck, priced by loading metres, pallets or weight.

G

Gross weight
The total weight of the goods including packaging and pallets. Net weight is the goods alone; tare is the weight of the empty container or vehicle.

H

HBL / MBLHouse / Master Bill of Lading
The MBL is issued by the shipping line to the forwarder; the HBL is issued by the forwarder to its customer. In consolidation each shipper gets an HBL under one MBL.
HS codeHarmonized System code
The international product classification number (6 digits) used by customs worldwide. The EU extends it to 8 (CN) and 10 (TARIC) digits, which set the duty rate and any restrictions.

I

ICS2 / ENSImport Control System 2 / Entry Summary Declaration
The EU's advance cargo information system. Before goods arrive, carriers and forwarders must file an ENS with safety and security data — including a precise goods description and HS code.
Incoterms®
The ICC's standard trade terms (current version 2020) that define where the seller delivers, where risk passes and who pays which costs. See our Incoterms® guide.Read more

L

Lashing
Securing cargo inside a container or on a trailer or flat rack with straps, chains, blocks and dunnage so it can't shift in transit.
LCLLess than Container Load
A shipment too small for its own container, consolidated with other shippers' cargo and priced per CBM or per tonne, whichever is higher.
Letter of credit (L/C)
A bank's promise to pay the seller once it presents documents that match the L/C terms exactly — typically the B/L, invoice, packing list and certificates.

M

Multimodal transport
Carriage by two or more modes — e.g. sea and rail, or rail and truck — under a single contract and transport document.

N

NVOCCNon-Vessel Operating Common Carrier
An ocean carrier that doesn't own ships: it buys space from shipping lines and issues its own bills of lading to customers.

O

Out of gauge (OOG)
Cargo larger than a standard container's dimensions, shipped on flat racks or open tops with parts overhanging. Needs special stowage and costs more.Read more

P

Packing list
A list of what is in each package — contents, quantities, dimensions and weights. Used by customs, the forwarder and the consignee to check the shipment.
Pallet
A flat base for stacking goods so they can be moved by forklift. A Euro pallet is 1200 × 800 mm; a standard (industrial) pallet is 1200 × 1000 mm.Read more
POL / PODPort of Loading / Port of Discharge
The port where the cargo is loaded onto the ship and the port where it is unloaded. Both appear on the bill of lading.
Pre-carriage / On-carriage
Transport before the main leg (from the shipper to the port or terminal) and after it (from the port to the consignee) — usually by truck or rail.
Proof of delivery
A signed confirmation that the consignee received the goods — usually the signed CMR or delivery note.
PSSPeak Season Surcharge
A temporary surcharge carriers add when demand is high, typically before Christmas and Chinese New Year.

R

Reefer
A refrigerated container with its own cooling unit, keeping a set temperature (about −30 °C to +30 °C) for food, pharma and chemicals.Read more
Roll-over
When a container booked on a vessel isn't loaded and is moved to a later sailing — because of overbooking, a missed cut-off or missing documents.

S

Sea waybill
A non-negotiable ocean transport document. The cargo is released to the named consignee without presenting an original — faster when no bank payment depends on the documents.
Seal
A numbered, tamper-evident lock fitted to the container doors after loading. The seal number is recorded on the B/L and checked on arrival.
Shipper (consignor)
The party that sends the goods and contracts with the carrier or forwarder — usually the seller or manufacturer.
SMGS
The rail consignment note used across the CIS, China and Mongolia under the SMGS agreement — the standard document on China–Europe and Central Asia rail routes.
Spot rate / Contract rate
A spot rate is quoted for a single shipment at current market prices; a contract rate is agreed for a period (often 3–12 months) for regular volumes.
Stuffing / Stripping
Loading goods into a container (stuffing) and unloading them from it (stripping).

T

T1 transit
A customs procedure that lets non-EU goods move through the EU under customs control without paying duties until they reach the office of destination.
Telex release
The original B/L is surrendered at origin, and the carrier tells its destination office electronically to release the cargo without originals.
TEU / FEUTwenty / Forty-foot Equivalent Unit
The standard units for container capacity: one 20ft container = 1 TEU, one 40ft = 2 TEU (1 FEU). Ship and port capacity are measured in TEU.Read more
THCTerminal Handling Charge
The charge for handling a container at the terminal — lifting on and off the ship and moving it in the yard. Charged separately at origin and destination.
Transit time
The time from departure to arrival — port to port or door to door. Quoted times are estimates; weather, congestion and transshipment can change them.
Transshipment
Moving cargo from one vessel to another at an intermediate port on the way to its destination — e.g. from a mainline ship to a feeder.

V

VGMVerified Gross Mass
The certified total weight of a packed container (cargo, packing and the container itself), which the shipper must submit before loading under the SOLAS convention.
Volumetric weight
A weight calculated from volume, so bulky light cargo is charged fairly: by air usually L × W × H (cm) ÷ 6000, by road often 1 CBM = 333 kg.

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