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Shipping Terms

Read up on the shipping definitions commonly used while moving cargo, from booking to delivery.

A

Air Waybill (AWB)
The transport document and receipt issued for an air freight shipment, covering the contract between shipper and carrier.
Arrival Notice
A notification sent when a shipment reaches its destination port or terminal, confirming it's ready for pickup or delivery.

B

Bill of Lading (BOL)
A legal document issued by the carrier that serves as a receipt for the cargo and a contract for its transport.
Bonded Cargo
Goods held under customs bond, stored or moved without duties being paid until released.
Bonded Warehouse
A secure facility where imported goods can be stored without paying duties until they're withdrawn for sale or further transport.
Break Bulk
Cargo that's too large or awkwardly shaped to fit in a standard container, loaded and shipped individually instead.

C

Cargo Manifest
A document listing all the cargo aboard a vessel, aircraft or truck, used by carriers and customs authorities.
Carrier
The company that physically transports cargo, whether by ocean vessel, truck, rail or air.
Chassis
The wheeled frame used to transport a container by road once it's off the vessel or train.
Clean Bill of Lading
A bill of lading with no noted damage or exceptions on the cargo at the time of loading.
Consignee
The person or company designated to receive a shipment at its destination.
Consolidation
Combining multiple smaller shipments from different shippers into a single load to reduce cost.
Container Freight Station (CFS)
A facility where LCL cargo from multiple shippers is consolidated or deconsolidated.
Container Yard (CY)
The area at a port or terminal where containers are stored before or after transport.
Cross-Docking
Unloading cargo from an inbound truck or container and loading it directly onto an outbound one, with little to no storage in between.
Customs Broker
A licensed professional or company that handles customs clearance and documentation on behalf of importers and exporters.
Customs Clearance
The process of getting goods approved by customs authorities to enter or leave a country.
Cut-off Time
The deadline for documents or cargo to be submitted before a vessel or truck departure.

D

Deconsolidation
Separating a consolidated shipment back into its individual orders after arrival.
Demurrage
A fee charged when a container isn't picked up from the port within the allotted free time.
Detention
A fee charged when a container isn't returned to the carrier within the allotted free time after leaving the port.
Dock Receipt
A document confirming cargo has been received at the terminal or warehouse before loading.
Door-to-Door
Shipping service that covers the full journey, from the shipper's location to the consignee's, without arranging separate legs yourself.
Dunnage
Material used to brace, protect or fill space around cargo inside a container or truck.
Duty
A tax charged by a government on goods imported into or exported out of a country.

E

ETA (Estimated Time of Arrival)
The projected date and time a shipment will reach its destination.
ETD (Estimated Time of Departure)
The projected date and time a shipment will leave its origin.
Export Declaration
A document filed with customs authorities detailing goods leaving a country, required for most international shipments.

F

FCL (Full Container Load)
A shipment that fills an entire container and doesn't share space with other shippers' cargo.
Fourth-Party Logistics (4PL)
A provider that manages a customer's entire supply chain and logistics network, rather than just moving cargo.
Free On Board (FOB)
An Incoterm where the seller's responsibility ends once cargo is loaded onto the vessel at origin.
Freight Forwarder
A company that arranges the shipment of cargo on behalf of shippers, coordinating carriers, documentation and customs.
FTL (Full Truckload)
A shipment large enough to fill an entire truck, dedicated to a single shipper.

G

Gross Weight
The total weight of a shipment, including the cargo, packaging and pallet.

H

Harmonized System (HS) Code
A standardized numerical code used worldwide to classify traded products for customs purposes.
Hazmat
Cargo classified as hazardous material, subject to special handling, documentation and regulatory requirements.

I

Import Declaration
A document filed with customs authorities detailing goods entering a country.
Incoterms
A set of internationally recognized trade terms that define who's responsible for costs, risk and logistics at each stage of a shipment.
Intermodal
Transportation that uses more than one mode, like ocean and rail, without unloading the cargo itself between legs.

L

Landed Cost
The total cost of a shipment once it reaches its destination, including freight, duties, taxes, insurance and handling fees.
Last-Mile Delivery
The final leg of a shipment's journey, from a local hub to the end customer's doorstep.
LCL (Less-than-Container Load)
Cargo that doesn't fill a full container and shares space with other shippers' freight.
LTL (Less-than-Truckload)
Cargo that doesn't fill a full truck and shares space with other shippers' freight.

M

Master Bill of Lading
The bill of lading issued by the ocean carrier to the freight forwarder, covering the full shipment before it's split into house bills for individual customers.

N

Net Weight
The weight of the cargo alone, excluding packaging and pallet.
No-Show Fee
A charge applied when booked cargo doesn't arrive for loading within the required window before departure.
Notify Party
The party a carrier alerts when a shipment arrives, often the consignee's agent.

O

Ocean Freight
Cargo transported by sea, typically in containers aboard commercial vessels.
Overage, Shortage & Damage (OS&D)
A report filed when a shipment's count or condition doesn't match its documentation.

P

Packing List
A document itemizing everything inside a shipment, including quantities, weights and dimensions.
Pallet
A flat structure used as a base for stacking and moving cargo, typically by forklift.
Pedimento
The official customs document required for importing and exporting goods to and from Mexico.
Port of Discharge
The port where cargo is unloaded from the vessel.
Port of Loading
The port where cargo is loaded onto the vessel.
Proof of Delivery (POD)
A signed confirmation that a shipment was received by the consignee, used to close out delivery and resolve disputes.

R

Reconsignment
Changing a shipment's destination or consignee after it has already departed.
Reefer Container
A refrigerated shipping container used to transport temperature-sensitive cargo.

S

Seal Number
The unique identifier on a container's security seal, checked at each handover to confirm it hasn't been tampered with.
Shipper
The person or company sending a shipment, responsible for preparing the cargo and its documentation.
Shipping Instructions
Details provided by the shipper to the carrier or forwarder covering how a shipment should be handled, labeled and documented.
Straight Bill of Lading
A non-negotiable bill of lading naming a specific consignee, the only party that can claim the cargo.

T

Tare Weight
The weight of an empty container or pallet, used to calculate net weight from gross weight.
Third-Party Logistics (3PL)
An outsourced provider that handles specific logistics functions like warehousing, transportation or fulfillment.
Transit Time
The total time a shipment takes to travel from origin to destination.
Transloading
Transferring cargo from one mode of transport to another, such as from an ocean container onto multiple domestic trucks.

V

Vessel
The ship used to transport containerized or bulk cargo by sea.
Volumetric Weight
A calculated weight based on a shipment's dimensions rather than its actual weight, used when cargo is bulky but light.

W

Warehousing
Storing goods in a facility before, during or after transport.
Weight Break
The shipment weight at which the price per unit drops to a lower rate, making it cheaper to round up to the next bracket.

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