Knowledge Hub
Freight Glossary
Standard freight, shipping, and customs terms explained in plain language.
- Air Waybill (AWB)
- A non-negotiable transport document issued for air freight shipments that serves as a receipt of goods and a contract of carriage between the shipper and the airline or forwarder.
- Bill of Lading (B/L)
- A legal document issued by a carrier to a shipper that serves as a receipt for cargo, evidence of the contract of carriage, and, in its negotiable form, a document of title to the goods.
- Bonded Warehouse
- A secure storage facility, authorized by customs, where imported goods can be held without payment of duties or taxes until they are released for domestic sale, re-exported, or otherwise disposed of.
- Booking Confirmation
- A document issued by a carrier or forwarder confirming that space has been reserved for a shipment on a specified vessel, flight, or vehicle.
- Break Bulk
- Cargo that is transported individually, loose or in bags, boxes, or bundles rather than in shipping containers or bulk carriers, typically because of its size or shape.
- Bunker Adjustment Factor (BAF)
- A surcharge added to ocean freight rates to account for fluctuations in the cost of bunker fuel used by vessels.
- Cargo Insurance
- Insurance coverage that protects against financial loss from damage, theft, or loss of goods while in transit by sea, air, road, or rail.
- CBM (Cubic Meter)
- A unit of volume (length x width x height in meters) used to calculate freight charges and container capacity, especially for LCL shipments.
- Certificate of Origin (C/O)
- A document certifying the country in which goods were manufactured or produced, often required by customs authorities to determine applicable duties or trade agreement eligibility.
- CFS (Container Freight Station)
- A facility where LCL cargo from multiple shippers is consolidated into containers for export, or where containers are unpacked (deconsolidated) so individual shipments can be sorted for delivery.
- Chargeable Weight
- The weight used to calculate freight charges, determined by comparing the actual gross weight of a shipment against its volumetric (dimensional) weight and billing whichever is greater.
- CIF (Cost, Insurance and Freight)
- An Incoterm under which the seller must pay the costs, freight, and insurance necessary to bring goods to the named port of destination, though risk transfers to the buyer once goods are loaded onboard the vessel.
- Commercial Invoice
- A document issued by the seller to the buyer that details the goods sold, their value, and terms of sale, and is used by customs authorities to assess duties and taxes.
- Consignee
- The party named to receive a shipment of goods at its destination, typically the buyer or importer.
- Consolidation
- The process of combining multiple smaller shipments from different shippers into a single container or larger shipment to achieve better freight rates and efficiency.
- Container Yard (CY)
- A designated area at or near a port terminal where full containers are received, stored, and staged for loading onto vessels or for pickup by consignees.
- Cross-Docking
- A logistics practice in which incoming goods are unloaded from one transport vehicle and loaded directly onto outbound vehicles, with little or no intermediate storage.
- Currency Adjustment Factor (CAF)
- A surcharge applied by ocean carriers to offset the impact of exchange rate fluctuations between the currency of the freight contract and other operating currencies.
- Customs Bond
- A financial guarantee required by customs authorities that ensures duties, taxes, and penalties owed on imported goods will be paid.
- Customs Broker
- A licensed professional or firm authorized to prepare and submit customs documentation and facilitate the clearance of goods through customs on behalf of importers or exporters.
- Dangerous Goods (DG) / IMDG Code
- Cargo classified as hazardous due to chemical, physical, or biological properties; the IMDG Code is the international regulatory framework governing its safe transport by sea.
- DDP (Delivered Duty Paid)
- An Incoterm under which the seller bears maximum responsibility, delivering goods to the buyer's named destination with all transport costs, export/import duties, and taxes paid.
- Demurrage
- A charge levied by the carrier or terminal when a container is not picked up from the port or terminal within the allotted free time after discharge.
- Detention
- A charge levied by the carrier when a container, after being picked up from the port, is not returned empty within the allotted free time.
- Door-to-Door
- A freight service in which the forwarder manages transport of goods from the shipper's premises all the way to the consignee's premises, including all intermediate legs.
- ETA (Estimated Time of Arrival)
- The projected date and time at which a shipment, vessel, or aircraft is expected to arrive at its destination.
- ETD (Estimated Time of Departure)
- The projected date and time at which a shipment, vessel, or aircraft is expected to depart from its origin.
- EXW (Ex Works)
- An Incoterm under which the seller makes goods available at their own premises, with the buyer responsible for all transport, export clearance, and risk from that point onward.
- FCL (Full Container Load)
- A shipping arrangement where a shipper books an entire container for their own cargo, rather than sharing container space with other shippers' goods.
- FOB (Free on Board)
- An Incoterm under which the seller delivers goods, cleared for export, onboard the vessel at the named port of shipment; risk and cost transfer to the buyer once goods are loaded.
- Form E
- A certificate of origin used under the ASEAN-China Free Trade Area (ACFTA) to certify that goods qualify for preferential tariff treatment between ASEAN member states and China.
- Free Time
- The number of days a shipper or consignee is allowed to use a container or store it at a port/terminal before demurrage or detention charges apply.
- Free Trade Zone (FTZ)
- A designated area where goods may be imported, stored, handled, manufactured, or re-exported without being subject to standard customs duties until they enter the domestic market.
- Freight Forwarder
- A company that arranges and coordinates the shipment of goods on behalf of shippers, managing carriers, documentation, and logistics without necessarily owning transport assets itself.
- Freight Rate
- The price charged by a carrier or forwarder to transport a shipment, typically calculated based on weight, volume, distance, mode of transport, and prevailing market conditions.
- General Average
- A principle of maritime law under which all parties in a sea venture share proportionally in losses incurred from a voluntary sacrifice of part of the cargo or vessel to save the whole from a common peril.
- Gross Weight
- The total weight of a shipment including the goods themselves, packaging, and any pallets or containers used, as opposed to net weight which excludes packaging.
- House Bill of Lading (HBL)
- A bill of lading issued by a freight forwarder or NVOCC directly to the shipper, covering the specific cargo booked through that forwarder.
- HS Code (Harmonized System Code)
- An internationally standardized numerical classification system used to categorize traded products, forming the basis for customs tariffs and trade statistics worldwide.
- Incoterms
- A set of standardized international trade terms, published by the International Chamber of Commerce, that define the responsibilities of buyers and sellers for delivery, risk, and cost at each stage of a shipment.
- ISF / AMS Filing
- Advance electronic filings (Importer Security Filing and Automated Manifest System) required by customs authorities before cargo is loaded or arrives, providing shipment and cargo details for security screening.
- Last Mile Delivery
- The final leg of the delivery process, moving goods from a distribution hub or terminal to their ultimate destination, typically the end customer or consignee.
- LCL (Less than Container Load)
- A shipping method where cargo from multiple shippers is consolidated into one shared container, with each shipper paying for the space their goods occupy.
- Letter of Credit (L/C)
- A financial instrument issued by a bank on behalf of a buyer, guaranteeing payment to the seller upon presentation of specified shipping and trade documents that meet agreed conditions.
- Master Bill of Lading (MBL)
- A bill of lading issued by the ocean carrier to the freight forwarder or NVOCC that booked cargo space, covering the entire shipment under the carrier's contract.
- Multimodal Transport
- The movement of goods using two or more different modes of transport (such as sea, air, road, or rail) under a single contract of carriage.
- Notify Party
- The party named on a bill of lading or air waybill to be notified when a shipment arrives at its destination, often the consignee's customs broker or agent rather than the consignee itself.
- NVOCC (Non-Vessel Operating Common Carrier)
- A carrier that issues its own bills of lading and takes responsibility for shipments as a carrier, without owning or operating the vessels used to transport the cargo.
- Packing List
- A shipping document that itemizes the contents, quantities, weights, and dimensions of each package within a shipment, used by carriers and customs for verification.
- Pallet
- A flat structural platform, typically made of wood or plastic, used as a base for stacking, storing, and transporting goods, often to allow handling by forklifts or pallet jacks.
- Peak Season Surcharge (PSS)
- An additional charge that carriers apply during periods of high shipping demand, when container and vessel space is limited relative to demand.
- Port-to-Port
- A freight service that covers transport only between the origin port and destination port, leaving inland transport on either end to the shipper or consignee.
- Proof of Delivery (POD)
- A document, often signed by the consignee, that confirms goods were received in the agreed condition and quantity at their final destination.
- Reefer
- A refrigerated shipping container used to transport temperature-sensitive cargo such as perishable food, pharmaceuticals, or chemicals under controlled conditions.
- Shipper
- The party responsible for originating a shipment of goods, typically the seller or exporter, who arranges for the cargo to be transported to a buyer or consignee.
- THC (Terminal Handling Charge)
- A fee charged by port terminal operators to cover the cost of handling a container as it moves through the terminal, at both origin and destination ports.
- Transshipment
- The transfer of cargo from one vessel or mode of transport to another at an intermediate port or hub before it reaches its final destination.
- Vessel/Aircraft Manifest
- A comprehensive list of all cargo loaded onto a specific vessel or aircraft for a given voyage or flight, used by carriers and customs authorities for tracking and verification.
- Volumetric Weight
- A calculated weight based on a shipment's dimensions rather than its actual mass, used by carriers (particularly in air freight) to account for cargo that is bulky but light.
- Warehouse Receipt
- A document issued by a warehouse operator acknowledging receipt of goods for storage, which can also serve as evidence of ownership or be used as collateral.