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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Other Reference Guides

Container MeasurementsIncoterms GuidePort Codes