The logistics glossary: 40+ shipping terms defined

A–C

AES / EEI

The U.S. Automated Export System and the Electronic Export Information filed through it, required for most exports over $2,500 per HS line.

B/L - Bill of Lading

The carrier's document that is simultaneously cargo receipt, contract of carriage and (if negotiable) title to the goods.

Bonded warehouse

A facility where imported goods can be stored with duties deferred until they leave the warehouse.

CBM

Cubic meter, the unit LCL freight is priced by.

CFS - Container Freight Station

The warehouse where LCL cargo is consolidated at origin and deconsolidated at destination.

Consignee

The party to whom the cargo is delivered, usually the importer.

Customs broker

A licensed agent who files import declarations and clears cargo with customs on your behalf.

D–I

Demurrage & detention

Charges for keeping a container at the port (demurrage) or outside the port (detention) beyond free days. The most avoidable cost in ocean freight.

Drayage

Short-distance trucking of containers, typically between port and warehouse.

ETA / ETD

Estimated time of arrival / departure.

FCL / LCL

Full Container Load / Less-than-Container Load, exclusive vs shared container space.

Freight forwarder

The company that organizes the shipment across carriers, warehouses, brokers and last-mile, BLS's role.

FTL / LTL

Full Truckload / Less-than-Truckload, the road equivalents of FCL and LCL.

FTZ - Free Trade Zone

A designated area where goods can be stored, handled and re-exported with duties deferred or reduced.

HS code

The Harmonized System classification that determines duty rates. See our HS codes guide.

Incoterms

The ICC's standardized terms defining seller/buyer responsibilities. See our Incoterms guide.

L–Z

Landed cost

Total per-unit cost of product delivered to your shelf. See our landed cost guide.

Manifest

The itemized list of cargo in a shipment, container or vehicle.

POD - Proof of Delivery

The signed confirmation that cargo was delivered.

Reefer

A temperature-controlled container.

Shipper

The party sending the cargo, usually the exporter.

Tariff

The duty rate applied to an HS code at import.

Transit time

Door-to-door or port-to-port time for a shipment. Always ask which one a quote means.

Waybill (Sea/Air)

A non-negotiable transport document, like a B/L but without title function, enabling faster release.