Freight Forwarding & Logistics Glossary

A company that runs logistics for another business, such as warehousing, order fulfillment, freight management and distribution.

A provider that manages the whole supply chain for a client, including coordinating several 3PLs, carriers and technology partners.

Fees added on top of the base freight rate for extra services, such as liftgate, inside delivery, residential delivery, appointments or waiting time.

A duty calculated as a percentage of the value of the imported goods, for example 5% of the customs value.

An electronic notice sent before a shipment arrives that lists its contents and delivery details, so the receiving warehouse can plan labor and space.

A partner company that acts for a forwarder or carrier in another country or city, handling pickups, deliveries, customs paperwork or collections there.

The main transport document for air freight. It is a receipt for the goods and the contract of carriage, but it is not a document of title.

A single freight price that already includes the base rate and common surcharges such as fuel and security fees.

An extra duty charged on imports sold below their fair market value, meant to protect domestic producers from unfair pricing.

A notice from the carrier or forwarder telling the consignee that cargo is arriving, with the expected date, charges due and pickup instructions.

An international customs document that lets goods such as samples, trade show items or professional equipment enter a country temporarily without paying duties.

The electronic system US Customs and Border Protection uses to receive and process import and export filings.

The US system used to file Electronic Export Information (EEI) for exports, managed by the Census Bureau and CBP.

The CBP system where carriers and NVOCCs file cargo manifest data. For ocean cargo it must be filed 24 hours before loading at the foreign port.

The key ocean shipping document. It is a receipt for the cargo, evidence of the contract of carriage and, when negotiable, the title to the goods.

When a carrier cancels a scheduled vessel call or an entire voyage, usually to manage capacity. It can delay cargo and change transit times.

A secure, customs-approved warehouse where imported goods can be stored without paying duties until they are released for sale or re-exported.

The carrier or forwarder confirmation that space is reserved, showing the vessel, booking number, container type and cut-off times.

Cargo shipped as individual pieces rather than in containers, such as large machinery, steel or project equipment.

A surcharge ocean carriers add to cover changes in the cost of ship fuel (bunker).

Customs Trade Partnership Against Terrorism, a voluntary CBP program where companies secure their supply chain in return for fewer inspections and faster processing.

Insurance that covers loss of or damage to goods in transit. It pays far more than the carrier's limited legal liability.

The company that physically moves the cargo, such as a shipping line, airline, railroad or trucking company.

Cubic meter, the standard unit for cargo volume. Length x width x height in meters equals CBM. It is used to price LCL and plan containers.

A document that states the country where goods were made. It is often needed to claim lower duties under a trade agreement.

An Incoterm for sea freight. The seller pays freight to the destination port, but risk passes to the buyer once goods are loaded on the vessel.

The weight used to bill a shipment: the higher of the actual weight and the volumetric weight. For air freight, volume weight is usually L x W x H in cm divided by 6,000.

A wheeled steel frame used to carry a shipping container on the road behind a truck.

An Incoterm for sea freight. The seller pays freight and minimum insurance to the destination port, but risk passes to the buyer once goods are on board.

An Incoterm for any mode. The seller pays transport and insurance to the named place, and risk passes when goods are handed to the first carrier.

The seller's bill for the goods. Customs uses it to check the value, description, quantity and origin of the shipment.

The person or company the goods are shipped to, usually the buyer or its agent.

Combining cargo from several shippers into one container or air shipment to lower cost per shipment. It is the basis of LCL and consolidated air freight.

A warehouse near a port where LCL cargo is loaded into containers or unloaded from them.

The area at a terminal where full containers are received, stored and released.

An extra duty that offsets government subsidies given to foreign producers, so their goods do not undercut domestic prices unfairly.

An Incoterm for any mode. The seller pays transport to the named place, but risk passes to the buyer when goods are handed to the first carrier.

Moving goods straight from inbound trucks to outbound trucks with little or no storage time in between.

A financial guarantee to CBP that duties, taxes and penalties will be paid. It is required for formal entries and can be single-entry or continuous (yearly).

A licensed professional who prepares and files customs entries, classifies goods and pays duties on behalf of importers.

The process of getting goods approved by customs, including filing documents, paying duties and passing any inspections, so they can enter or leave a country.

The latest time cargo, documents or data can be delivered to a carrier or terminal to make a specific sailing or flight.

Cargo that can harm people, property or the environment, such as batteries, chemicals or flammables. It needs special packing, labels and paperwork. Also called hazmat.

An Incoterm where the seller delivers the goods, ready to unload, at the named destination. The buyer handles import clearance and duties.

An Incoterm where the seller delivers to the named destination and pays everything, including import duties and taxes. It is the most work for the seller.

A value below which imports enter without duty. The US $800 de minimis exemption has been suspended since August 29, 2025, so duties apply to low-value shipments too.

A document that authorizes a terminal or warehouse to release cargo to the consignee or its trucker.

A daily charge when a full container stays at the port terminal longer than the free time allowed.

A daily charge for keeping the carrier's container outside the terminal beyond the free time. In trucking, it also means paying a driver for waiting time.

A weight calculated from the package size instead of its actual weight. Carriers charge on it when a shipment is light but bulky.

An Incoterm where the seller delivers and unloads the goods at the named destination. The buyer handles import clearance and duties.

Short-distance trucking of containers, usually between a port or rail ramp and a nearby warehouse.

A standard enclosed semi-trailer, usually 53 feet in the US, used for general freight that does not need temperature control.

Material such as wood, airbags or padding used to fill gaps and keep cargo from moving or getting damaged during transport.

A tax charged by customs on imported goods, usually a percentage of their value and set by the product's tariff classification.

A refund of duties paid on imported goods that are later exported or used to make products that are exported.

The electronic exchange of business documents, such as orders, invoices and shipment status, between companies' systems in a standard format.

Export data filed in AES for US shipments valued over $2,500 per Schedule B number, or for any shipment that needs an export license.

The filing an importer or broker submits to customs to bring goods into the country. In the US, most shipments over $2,500 need a formal entry and a bond.

The US customs form that lists the goods, their classification, value and the duties owed. It must be filed within 10 working days of release.

Economic Operators Registration and Identification number, required for businesses that import into or export from the European Union or the UK.

Estimated Time of Arrival and Estimated Time of Departure for a vessel, flight or truck.

An Incoterm where the seller only makes the goods available at its premises. The buyer arranges and pays for everything else, including export clearance.

A single freight rate that applies to mixed or general cargo, regardless of the commodity.

A sea-only Incoterm where the seller delivers goods next to the vessel at the port of loading. Risk passes to the buyer at that point.

An Incoterm where the seller hands export-cleared goods to the buyer's carrier at a named place. It works for all modes and is common in containerized trade.

A shipment that uses a whole container for one shipper. It is usually cheaper than LCL once cargo is around 15 CBM or more.

The US agency that regulates international ocean shipping and licenses ocean freight forwarders and NVOCCs.

Forty-foot Equivalent Unit, a measure of container capacity equal to one 40-foot container (two TEU).

A container with no sides or roof, used for oversized or heavy cargo such as machinery, vehicles or pipes.

A sea-only Incoterm where the seller loads the goods on the vessel. Risk and costs pass to the buyer once the goods are on board.

A secure area in the US treated as outside customs territory. Goods can be stored, assembled or processed there, and duties are delayed, reduced or avoided.

The number of days a container can stay at the terminal, or with the customer, before demurrage or detention charges start.

A number from 50 to 500 that sets LTL pricing in the US. It is based mainly on the density of the freight under the NMFC system.

Payment terms where the consignee pays the freight charges at destination.

A company that arranges shipments for its customers, booking carriers, handling documents and customs, and managing cargo from origin to destination.

Payment terms where the shipper pays the freight charges before or at origin.

A truck shipment that uses a whole trailer for one shipper, usually moving directly from pickup to delivery without transfers.

A variable charge added to freight rates to cover changes in fuel prices, common in trucking and air freight.

Treating cargo or wood packaging with gas to kill pests. Many countries require it for certain goods or for untreated wooden pallets.

Status given to US imports that are not entered with customs within 15 days of arrival. The goods move to a GO warehouse and can be sold if unclaimed.

An across-the-board freight rate increase announced by ocean carriers for certain trade lanes.

The total weight of a shipment, including the goods and all packaging.

A US fee of 0.125% of the cargo value charged on imports that arrive by ocean, used to maintain US ports.

The international 6-digit product classification used by customs worldwide. Countries add more digits for their own tariffs.

Short for hazardous materials. See Dangerous Goods.

A container that is one foot taller than standard (about 9 ft 6 in outside), giving extra volume for light, bulky cargo.

The air waybill a forwarder issues to each shipper in a consolidated air shipment.

The bill of lading an NVOCC or forwarder issues to its customer. It sits under the master bill of lading issued by the shipping line.

Harmonized Tariff Schedule of the United States code, a 10-digit number that sets the US duty rate for a product.

International Air Transport Association, the airline trade body that sets standards for air cargo, including dangerous goods rules.

The party legally responsible for making sure imported goods follow customs rules and that duties are paid.

Also called "10+2". Data US importers must file for ocean cargo at least 24 hours before it is loaded on the vessel. Late or missing filings can be fined.

Goods moving within the US under customs control before duties are paid, for example from the port of arrival to an inland port for clearance.

International rules published by the ICC that define which party pays for and takes the risk at each stage of a shipment. The current version is Incoterms 2020.

A check by customs or another agency to verify cargo matches its documents. Exams can add days and fees to clearance.

Moving cargo in the same container using two or more modes, such as ship, rail and truck, without handling the goods themselves.

A standard shipping container built to International Organization for Standardization sizes, such as 20-foot and 40-foot units.

A US law requiring cargo moved between US ports to travel on US-built, US-owned and US-crewed vessels.

An inventory approach where materials arrive only when they are needed, which lowers storage costs but needs reliable transport.

A shipper approved under the TSA program, allowing its cargo to fly on passenger aircraft with fewer screening steps.

The total cost of getting a product to its destination: the goods, freight, insurance, duties, taxes, fees and handling.

Securing cargo with straps, chains or wires so it does not shift during transport.

The final step of delivery from a local hub to the end customer's door.

A shipment too small to fill a container, which shares container space with other shippers. It is priced per CBM or weight, whichever is higher.

A bank guarantee that the seller will be paid once it presents the documents listed in the credit, such as the bill of lading and invoice.

A hydraulic platform at the back of a truck that lowers freight to the ground where there is no loading dock. It is usually an extra charge.

A truck shipment that shares trailer space with other shippers. Pricing depends on weight, freight class and distance.

A list of all cargo on a vessel, aircraft or truck, filed with customs before arrival.

The air waybill an airline issues to a forwarder for a consolidated shipment. It covers all the house air waybills inside it.

The bill of lading a shipping line issues to the forwarder or NVOCC. It covers the whole container and all house bills inside it.

A US customs fee of 0.3464% of the value of imported goods, with a minimum and maximum amount set each fiscal year.

A single shipment that uses more than one mode of transport, such as sea and truck, under one contract.

The weight of the goods only, without packaging.

National Motor Freight Classification, the US standard that assigns freight classes to commodities for LTL pricing.

The company named on the bill of lading that the carrier contacts when cargo arrives, often the consignee or its broker.

Non-Vessel Operating Common Carrier, a company that issues its own bills of lading and sells ocean shipping without owning vessels.

Moving cargo by sea, in FCL, LCL, break bulk or roll-on/roll-off service. It is the most economical option for large volumes.

Pre-carriage is transport from the pickup point to the main port or airport. On-carriage is transport from the arrival port to the final destination.

A container with a removable roof cover, used for tall cargo that must be loaded from above by crane.

Costs at the shipping country, such as pickup, export clearance, terminal handling and documentation.

Cargo larger than a standard container's dimensions, usually shipped on flat racks or open tops at extra cost.

A document listing each package in a shipment, with its contents, weight and dimensions. Customs and warehouses use it to check the cargo.

A flat wooden or plastic base used to stack and move goods with a forklift. Common US size: 48 x 40 inches; European size: 120 x 80 cm.

A US agency other than CBP that regulates certain imports, such as the FDA, USDA, EPA or CPSC. Their rules can add filings or inspections.

An extra charge carriers add during high-demand periods, usually before holiday seasons.

The port where cargo is unloaded from the vessel.

The port where cargo is loaded onto the vessel.

Large, heavy or complex shipments, such as industrial equipment for a plant, that need special planning, equipment and routing.

A signed document or electronic record confirming the consignee received the goods.

The part of a port where vessels berth to load and unload cargo.

A limit on the quantity of certain goods that can be imported during a period, sometimes with a lower duty inside the quota and a higher one above it.

A refrigerated container that keeps cargo such as food or pharmaceuticals at a set temperature.

Customs permission for goods to leave the port or warehouse after entry is accepted.

Shipping wheeled cargo, such as cars, trucks and machinery, that is driven on and off the vessel.

The criteria that decide where a product "comes from" for customs, which determines if it qualifies for trade agreement benefits.

A document describing a product's hazards and safe handling. It is needed to ship chemicals and dangerous goods.

The 10-digit US export classification number used to report exports in AES.

A non-negotiable transport document for ocean cargo. The goods are released to the named consignee without presenting an original bill.

A numbered security device locked on container doors. The seal number is recorded on the documents to show the container was not opened.

US tariffs imposed for national security reasons on products such as steel, aluminum, copper, vehicles and auto parts.

US tariffs imposed in response to unfair trade practices by other countries, such as the tariffs on many goods from China.

The person or company that sends the goods, usually the seller or exporter. Also called the consignor.

A document in which the exporter gives the forwarder its shipping and export filing instructions.

Stuffing is loading cargo into a container. Stripping (or devanning) is unloading it.

The full network of suppliers, manufacturers, warehouses, carriers and retailers that moves a product from raw material to the customer.

An extra fee added to a base freight rate, such as for fuel, peak season, security or congestion.

The weight of an empty container or vehicle.

A tax on imported goods, or a published schedule of rates and charges set by a government or carrier.

An electronic release of cargo at destination after the original bills of lading are surrendered at origin, so no paper originals need to travel.

A fee for handling containers at the port terminal, charged at origin and destination.

Twenty-foot Equivalent Unit, the standard measure of container capacity. One 20-foot container equals one TEU.

The time a shipment takes from departure to arrival.

Moving cargo from one vessel or aircraft to another at an intermediate hub before it reaches its final destination.

A pallet or container used to load cargo and baggage on aircraft.

The final party that receives and uses the exported goods, reported in US export filings.

A 4-digit number that identifies a dangerous substance for transport, for example UN1263 for paint.

The United States-Mexico-Canada Agreement. Goods that meet its rules of origin can move between the three countries with reduced or zero duties.

A consumption tax charged on imports in many countries, usually on the goods value plus freight, insurance and duty.

The confirmed total weight of a packed container, which must be provided to the carrier before loading under SOLAS rules.

Vessel Operating Common Carrier, a shipping line that owns or operates the vessels.

A weight calculated from the shipment's dimensions. Carriers charge it when it is higher than the actual weight. See Chargeable Weight.

The LCL pricing basis: freight is charged on 1,000 kg or 1 CBM, whichever gives the higher amount.

An extra charge carriers add for sailing through areas with conflict or security risks.

Software that tracks inventory, locations, receiving, picking and shipping inside a warehouse.

A document a warehouse issues to confirm it has received and is storing specific goods.

Security scanning of air cargo, required before it can be loaded on aircraft.

Software that manages trucks and trailers in a warehouse or distribution center yard, including dock scheduling.

Consolidating many parcels into one truckload to move them close to their destination region before handing them to a local carrier, cutting cost and transit time.