Glossary

Freight terms, explained plainly.

The vocabulary of international freight, defined in a sentence or two. If a term on a quote or document is not here, ask us.

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ADR: The European agreement on the international carriage of dangerous goods by road. It sets rules for classification, packaging, labelling, documents, vehicles and driver training.
Air waybill (AWB): The transport document and contract of carriage for air freight. A master AWB (MAWB) is issued by the airline; a house AWB (HAWB) by the forwarder for each consolidated shipment. It is not a document of title. See air freight.
All-risks cover: Cargo insurance on the broadest standard terms (Institute Cargo Clauses A), covering loss or damage from any external cause, subject to listed exclusions. Required under the CIP Incoterm.
ATA carnet: An international customs document allowing goods such as samples, exhibition items or professional equipment to be imported temporarily without paying duties.

BAF: Bunker adjustment factor: a surcharge that passes changes in fuel cost to the shipper. Also called a fuel surcharge in air and road freight.
Bill of lading (B/L): The key document in sea freight: a receipt for the goods, evidence of the contract of carriage and, in its original negotiable form, a document of title that controls who may collect the cargo. See sea freight.

CAF: Currency adjustment factor: a surcharge that compensates the carrier for exchange-rate movements.
CBM (cubic metre): The standard unit of cargo volume: length × width × height in metres. The quote form includes a CBM calculator.
Certificate of origin: A document certifying the country in which goods were produced, used to apply preferential duty rates or meet import requirements.
Chargeable weight: The weight a carrier charges for: the higher of actual gross weight and volumetric weight. It matters most in air freight, where light but bulky cargo is charged on its volume.
CMR: The convention governing international carriage of goods by road, and the consignment note issued under it. The CMR note records the goods and their condition, and limits the carrier's liability to 8.33 SDR per kilogram. See road freight.
Consolidation: Combining several shipments from different shippers into one container, trailer or air consignment to share the cost. The basis of LCL, groupage and consolidated air cargo.
Customs declaration: The formal statement to customs of the goods being exported or imported, their classification, origin and value, on which duties and taxes are assessed.
Cut-off: The latest time cargo, documents or VGM can be delivered to the carrier or terminal for a given sailing or flight. Missing a cut-off usually means the next departure.

Demurrage: A charge from the shipping line when a full container remains in the port terminal beyond the free time allowed.
Detention: A charge from the shipping line when a container is kept outside the terminal, for loading or unloading, beyond the free time allowed.
Door-to-door: A service covering the whole journey, from collection at the shipper's premises to delivery at the consignee's, including transport at both ends.

ETA / ETD: Estimated time of arrival and estimated time of departure. Estimates, not commitments: schedules can change.

FCL (full container load): Sea freight in which one shipper has exclusive use of a container. Compare LCL. Read FCL vs LCL: how to choose.
Free time: The period a container may stay in the terminal or with the consignee before demurrage or detention charges begin.
Freight forwarder: A company that organises the transport of goods on behalf of shippers: selecting carriers, booking space, preparing documents and coordinating each stage of the journey. A carrier-neutral forwarder owns no fleet of its own.
FTL (full truck load): Road freight in which one shipment uses a dedicated trailer, travelling directly from collection to delivery.

Groupage (LTL): Road freight in which smaller shipments share a trailer, typically consolidated at a hub. Also called less than truck load.

HS code: The Harmonized System code that classifies goods for customs. It determines duty rates and whether licences are needed, so it must be correct.

IATA DGR: The IATA Dangerous Goods Regulations, which govern hazardous cargo by air, including lithium batteries.
IMDG Code: The International Maritime Dangerous Goods Code, which governs the carriage of hazardous cargo by sea.
Incoterms® 2020: The International Chamber of Commerce's eleven standard trade rules defining which party pays for each part of the journey and where risk passes from seller to buyer. Read Incoterms® 2020 explained.
ISPS surcharge: A charge covering port security measures under the International Ship and Port Facility Security Code.

LCL (less than container load): Sea freight in which your cargo shares a container with other shipments and is charged by W/M. Compare FCL.
Loading metre (LDM): One metre of trailer length across its full width, used to charge road part loads that occupy floor space. A standard trailer has 13.6 loading metres.

Port-to-port: A sea freight service covering only the ocean leg, from the port of loading to the port of discharge. Transport to and from the ports is arranged separately.
Proof of delivery (POD): Confirmation, usually a signed delivery note or CMR, that the goods were delivered to the consignee, with any reservations noted.
PSS: Peak season surcharge: applied by carriers on busy trades when demand exceeds capacity.

Reefer: A refrigerated container with its own cooling unit, used for temperature-sensitive cargo such as food and pharmaceuticals.
Roll-over: When cargo booked on a vessel or flight is moved to a later departure, often because of overbooking. A good forwarder tells you immediately and offers alternatives.

Safety Data Sheet (SDS): A document describing a substance's hazards and safe handling. Required to assess and ship dangerous goods.
SDR: Special Drawing Right: a unit of account defined by the International Monetary Fund, used to express carrier liability limits in the transport conventions.
Sea waybill: A non-negotiable alternative to a bill of lading. Cargo is released to the named consignee without the need to present an original document.

T1 transit document: A customs document allowing non-cleared goods to travel under customs control, for example from the EU border to an inland clearance point.
Telex release: Release of cargo at destination after the original bills of lading are surrendered at origin, avoiding the need to courier originals.
THC: Terminal handling charge: the cost of handling containers at the origin or destination terminal.
TIR carnet: An international customs transit document that lets sealed road vehicles cross borders with minimal inspection, common outside the EU.
Transhipment: Transfer of cargo from one vessel or flight to another at an intermediate hub. Usually adds time compared with a direct service.

ULD: Unit load device: a pallet or container used to load cargo into aircraft.

VGM (verified gross mass): The weight of a packed container, which must be declared to the carrier before loading under the SOLAS convention.
Volumetric weight: A weight calculated from a shipment's dimensions, so carriers can charge for space. For air freight, usually length × width × height in centimetres divided by 6,000.

W/M (weight or measure): The LCL charging basis: one revenue tonne is 1 cubic metre or 1,000 kg, whichever gives the higher figure.