Shipping Glossary A to Z
3rd Party Logistics (3PL)
A service where a business outsources the management of its transportation and logistics but still oversees its entire supply chain. It includes additional services like warehousing, terminal operations, and customs brokerage where necessary.
4th Party Logistics (4PL)
An enhancement of 3PL, where a business outsources the organization, planning, and management of the entire supply chain, including all aspects of 3PL.
Actual Time of Arrival (ATA)
The confirmed arrival date at the destination shipping point, typically referring to the Port of Discharge rather than the final delivery point.
Actual Time of Departure (ATD)
The confirmed departure date from the original shipping point, available once the Bill of Lading is received from the carrier.
AEO Accreditation
Accreditation by the Authorised Economic Operator scheme indicates an organization's compliance with international supply chain regulations and security standards.
Air Waybill (AWB)
A document issued by an airline to acknowledge receipt of cargo for shipment.
All Risks Insurance
A comprehensive form of insurance for the transportation of goods that covers damage or loss caused by accidents, though not every type of risk is included.
ATA Carnet
A document used for the duty and tax-free import of goods, acting as a passport for goods valid in countries that have signed the agreement (87 in total, including the US, UK, China, and all EU countries).
Arrival Notice
A notification sent by the carrier to the consignee informing them of the arrival of the shipment.
Asset Carrier
A shipping company that owns and operates its fleet of trucks.
Bill of Lading (B/L or BOL)
An official shipping document that details the shipment and shows ownership of the goods. It is required for the delivery of goods and is held until final payment is made.
Blind Shipment Charge
An accessorial charge assessed when the third party responsible for moving the shipment is instructed by one stakeholder to withhold sensitive information about who they are from the other.
Bobtailing
When a truck drives without a trailer attached to it.
Bonded Goods (B/G)
Dutiable landed imports stored under customs supervision in bonded warehouses. They are released for re-export or to the importer upon payment of duties, taxes, and other charges.
Bonded Warehouses
Secure locations where goods with unpaid duties are stored before the payment is made.
Bunker Adjustment Factor (BAF)
A surcharge calculated by shipping companies to offset financial losses in fuel costs due to fluctuating oil prices.
Bulk Cargo
Cargo that is transported unpackaged in large quantities.
Buyers Consolidation (BCN)
The consolidation of loads from several suppliers for a single customer, usually to fill a container when a single supplier's stock is insufficient.
Cab
The place where the driver sits when hauling a shipment.
Cargo Insurance
Protection against financial loss due to damage or loss of cargo during transportation.
Carrier
An individual or company that transports goods or passengers for any person or company and that is responsible for any possible loss of the goods during transport.
Carrier Owned Container (COC)
A term indicating that a carrier owns its own shipping container, as opposed to a Shipper Owned Container (SOC).
Certificate of Origin
A document certifying the country of origin of the goods, usually issued by a government department, Chamber of Commerce, or embassy of the exporting country.
Chains
A common method for the securement of freight on an open deck trailer.
Chassis
A special trailer used to transport ocean containers over the road, typically used in rail yards or shipping ports.
CFS Charge
A fee incurred at the delivery or receiving point of a ship's cargo at the destination port, depending on the container size.
Commercial Drivers License (CDL)
The license required to drive any truck with a GCWR of more than 26,000 pounds or a GVWR of greater than 10,000 pounds.
Commercial Invoice
An invoice containing details of the buyer and seller, type of goods, quantity, price, and terms of sale. It is used to declare goods to customs.
Consignee
The person or company receiving the shipment. If importing goods, it is the importer.
Consolidator
A company that combines shipping loads that are not large enough to fill a single container, reducing costs for shippers.
Container
A large standard size metal box, usually 20ft or 40ft in length, used for shipping goods.
Container Freight Station (CFS)
A place for packing and unpacking Less than Container Load (LCL) consignments, usually at or near a port.
Container Yard (CY)
A collection and distribution point for Full Container Load (FCL) consignments.
Converter Dolly
An auxiliary axle assembly equipped with a fifth wheel (coupling device), towed by a semitrailer and supporting the front of, and towing, another semitrailer.
Cost & Freight (C&F or CFR) and Cost, Insurance Freight (CIF)
Terms of trading where the buyer pays an amount covering the cost of goods and transportation to the port of discharge. CIF also includes marine insurance.
Cubic Metre - CBM (M3)
A unit of volume measurement, where 100cm x 100cm x 100cm equals one cubic metre.
Currency Adjustment Factor (CAF)
A percentage surcharge for liner shipping designed to offset financial losses due to fluctuating exchange rates.
Customs Clearance
The process of clearing shipments by customs authorities, usually carried out by a freight forwarder or customs agent.
Dead-Heading
A situation where a carrier is forced to drive with an empty trailer.
Dedicated Truck
A truck that is dedicated to a specific customer's freight and no one else's.
Deferment
A bank account held with customs to pay duty and VAT. If the importer does not have their own account, they can use their agent's account, often for a fee.
Delivered At Place (DAP)
A term where the seller ensures goods arrive at the destination, but the consignee is responsible for paying import duties.
Delivered Duty Paid (DDP)
An agreement where the seller is responsible for delivering goods and paying all costs, including duties and taxes, to the agreed delivery point.
Delivered Duty Unpaid (DDU)
The old acronym for Delivered At Place (DAP), no longer widely used.
Delivery Authorisation Document (DAD)
A document authorizing the delivery of goods to be picked up by designated parties. Required before collection.
Delivery Order (D/O)
A document from a consignee or freight carrier owner that orders the release of cargo transportation to another party.
Demurrage
Charges raised by the carrier for detaining a freight vehicle or container beyond the stipulated time.
Detention
A charge applied when a truck driver has to wait to be loaded or unloaded after arriving at the pick-up or delivery site.
Doubles (Twins, Twin Trailers)
A combination of a tractor and two semitrailers connected in tandem by a converter dolly.
Drop Trailer Service
A service where a truck driver will "drop" or leave a trailer at the receiver's facility so that they can load or unload at their convenience.
Drop-deck/Step-deck
An open deck trailer that is commonly used as an alternative to the flatbed trailer when the height of a load is a factor.
Drop Shipping
A retail fulfillment method where the seller does not produce or store products. The seller takes orders, pays the manufacturer, and the manufacturer ships the item directly to the customer.
Dry Van
Fully enclosed shipping trailers typically measuring 53’ in length. Dry Vans are the most common type of trailer, used to transport most consumer goods and commodities.
E-log (ELD)
An Electronic Logging Device that must be used by all truck drivers unless they fall into specific exemption categories. By using an E-log, drivers can ensure their compliance with all governmental hours of service regulations.
Economic Operator Registration and Identification (EORI)
A number that allows customs to keep a record of imports and exports, required for importing goods into the UK.
Entry Summary Declaration (ENS)
A declaration provided by the shipper or importer, electronically submitting cargo information before arrival at the entry customs office.
Estimated Time of Arrival (ETA)
The estimated date that a ship or plane is due to arrive at its destination port.
Estimated Time of Departure (ETD)
The estimated date that a ship or plane is due to leave its port of origin.
Ex Works (EXW)
A term of sale where the buyer collects goods at the seller's premises and assumes all costs and liabilities from that point onward.
Exempt Carrier
A company that transports commodities exempted from Interstate Commerce Commission economic regulation.
Extendable Drop-deck
A specialized drop-deck trailer with an extendable middle section to haul longer, taller freight.
Extendable RGN
A removable gooseneck trailer that can be extended much like an extendable drop-deck.
Federal Motor Carrier Safety Association (FMCSA)
The branch of the Department of Transportation that is dedicated to overseeing the trucking industry.
First Come First Serve (FCFS)
Refers to a shipper's or receiver's priority in the order of arriving trucks to be loaded or unloaded.
First-Mile Logistics
The transfer of goods from the manufacturer to a warehouse or distribution centre.
Flatbed
The traditional open deck trailer, free of frills and complexity. Flatbeds provide continuous open loading space typically ranging between 48 feet and
53 feet in length.
For-Hire Carrier
A company in the business of transporting freight belonging to others.
Forwarder's Cargo Receipt (FCR)
A document issued by the freight forwarder to the shipper when the shipment is handed over. It confirms that the cargo has been received.
Free on Board (FOB)
A term of sale where the seller is responsible for all charges and liabilities up to the arrival of goods on board the ship.
Freight
Goods transported in bulk by truck, train, ship, or aircraft.
Freight All Kinds (FAK)
Refers to a full container loaded with mixed cargo.
Freight Brokerage
The intermediary between a shipper and the carrier (trucking company). Through leveraging pre-existing relationships, a freight brokerage works to find the best-fit capacity and ensure the successful transit of its customer's freight.
Freight Forwarder
A person or company that organizes shipments for individuals or corporations to get goods from the manufacturer or producer to a market, customer, or final point of distribution.
GCWR (Gross Combined Weight Rating)
The total weight rating of combination vehicles, such as that of a semi-tractor and its trailer.
GOH (Garment on Hanger)
A method of transporting garments on hangers in standard or dry containers, often using strings or bars.
Gross Vehicle Weight Rating (GVWR)
The total amount of weight a vehicle is manufactured to safely haul.
Gross Weight
The total weight of the shipment, including goods and packaging.
Hazardous Material (HazMat)
Substances that pose an unreasonable risk to health, safety, and property when transported.
Hazmat
A charge for the transportation of hazardous materials.
Headache Rack/Headboard
A metal barrier station positioned behind the cab of a semi-tractor that is used to prevent freight from shifting forward and harming the equipment or anyone inside.
High Cube (HC or HQ)
Containers exceeding 8ft 6in in height, usually 9ft 6in.
Hot Shot
A smaller trailer that can be hauled using a class 3-6 pickup truck. Because of their small size, these trailers come with a limited weight capacity.
Hours of Service (HOS)
The amount of time that a driver can legally be “on duty.” Hours of Service are calculated to include both drive time and the break periods specified by the FMCSA.
House Airway Bill (HAWB)
A bill issued by a freight forwarder or consolidator, similar to a Bill of Lading, but without conferring title in goods.
House Bill of Lading (HBL)
A bill issued by a freight forwarder or consolidator for a single shipment, detailing the names, addresses, and specific descriptions of the goods.
Inland Bill of Lading
A bill of lading used in transporting goods overland to the exporter's international carrier.
Incoterms
Standardized rules defining the rights and liabilities of buyers and sellers in international transactions, prepared by the International Chamber of Commerce.
Intermodal Transportation
The transport of freight using multiple modes of transport. Often, this means transporting freight using rail, boat, and truck.
International Operating Procedure (IOP)
A set of step-by-step instructions adopted by an organization for conducting complex routine operations.
International Standard Organisations (ISO)
An international standard-setting body composed of representatives from various national standards organizations.
Jeep Dolly
Shorter trailers that include a sliding fifth wheel, kingpin, and a system of suspension. These 1-3 axle units are used as the intermediary between the main trailer—hoisting the load—and the tractor.
JIT (Just-In-Time)
A manufacturing system that depends on frequent, small deliveries of parts and supplies to keep on-site inventory to a minimum.
Kingpin
The hitch located at the front of a trailer that slides into the 5th wheel of a truck.
Kerbside Delivery
Standard delivery where the truck is parked outside the premises, and it is the recipient's responsibility to unload the goods.
Landing Gear
The support system that is deployed while a trailer is detached from a truck. While in transit, the landing gear is retracted.
Last-Mile Logistics
The transfer of goods from a transportation hub or a retail store to the final delivery destination.
LCV (Long Combination Vehicle)
Vehicles longer than a standard doubles rig, such as Twin 48-foot trailers or triple 28-foot trailers.
Length of Haul (LOH)
The distance, typically in miles, that a shipment will travel. This is a common phrase used to determine pricing and capacity options for a shipment based on the distance.
Letter of Credit (L/C)
A contract establishing the terms of documentary credit transactions.
Letter of Indemnity (LOI)
A contractual document guaranteeing specific provisions will be met.
LCL (Less than Container Load)
A shipping method where goods do not fill an entire container and are loaded into a shared container with goods from other companies.
Load Bars
A telescoping bar used to secure cargo and prevent shifting in a van trailer.
Load Binders
A chain tensioning device used to bind, clamp, anchor, or tie down large cargo loads for transport.
Load Port
The port where the cargo is loaded onto the vessel.
Load Straps
Belts made of canvas that are used to secure a load onto the deck of a trailer.
Load/Corner Protectors
Wedge-shaped protectors used to prevent the damaging of freight from the pressure of securement devices like straps, binders, and chains.
LTL (Less-Than-Truckload)
A term used when the freight hauled is smaller than the full capacity of the truck carrying it.
Lumper
Third-party unloading services that charge a rate that is separate from the price quoted by a carrier.
Manifest
A detailed list of a ship's cargo, containing details of each item.
Marine Insurance
Insurance covering loss or damage of goods during transportation by sea or land.
Mid-Mile Logistics
The transfer of goods from a warehouse or distribution centre to fulfillment facilities.
Minimum Order Quantity (MOQ)
The smallest amount of a product that a company will supply, often used by suppliers like those on Alibaba.
Motor Carrier Number (MC#)
The number that carriers must possess to cross state lines. This number also functions as a way for the government to track carriers in their systems.
NVOCC (Non-Vessel Operating Common Carrier)
A company that organizes shipments for individuals or corporations to get goods from the manufacturer or producer to a market, customer, or final point of distribution, without operating its own vessels.
Notice of Arrival (NOA)
A notice sent by the carrier or agent to inform the consignee of the shipment's arrival, number of packages, description of goods, shipment weight, and collection charges.
Notify Party
The person or company that needs to be notified about the shipment's progress, as stipulated on the Bill of Lading.
Ocean Freight
Cargo transported by sea.
Origin Port
The port where the shipment begins its journey.
Origin Terminal Handling (OTHC)
Charges by the terminal operator for container movements, such as before departure and at the destination.
Over-Dimensional Cargo
A fee charged to the customer in charge of paying for the freight to cover all of the permits and fees associated with shipping any cargo that exceeds legal size limits.
Over-The-Road (OTR)
The term used to describe truck drivers who move freight for extended periods of distance and time.
Overweight Surcharge (OWS)
A fee charged by shipping lines when a container exceeds the designated acceptable weight range.
Packing List
A list detailing the goods within a shipment, including the number of items, weight, and dimensions.
Pallet
A flat transport structure that supports goods in a stable fashion while being lifted by a forklift, pallet jack, or other jacking device.
Pallet Exchange
An exchange of pallets when a truck driver picks up a delivery. If no pallets are brought, there is usually a fee for the exchange.
Peak Season Surcharge (PSS)
An additional temporary fee during high shipping seasons, typically between August and October.
Pilot Cars
A vehicle that accompanies a Heavy Haul shipment moving over the road.
Placard
Warning signs that are placed on all four sides of a trailer that is carrying hazardous materials.
Port of Discharge (POD)
The port where goods are unloaded from the vessel.
Port of Loading (POL)
The port where goods are loaded onto the vessel.
Power Only
Providing the truck/tractor needed to haul a trailer but not the trailer itself.
Private Carrier
A business that operates trucks primarily for the purpose of transporting its own products and raw materials. The principal business activity of a private carrier is not transportation.
Professional Truck Driver
Different categories of drivers include over-the-road, line-haul, and local.
Purchase Order (PO)
A commercial document and official offer issued to a seller, indicating types, quantities, and agreed prices for products or services.
Rate Per Mile (RPM)
Rate Per Mile (RPM) is trucking industry jargon regarding the pricing of a shipment on a per-mile basis.
Re-consignment
A charge that takes effect when a freight’s destination changes after the freight is already in transit.
Receiver/Consignee
The business/party who is on the receiving end of a shipment. Depending on the situation, the shipper and receiver may be the same.
Reefer
A temperature-controlled trailer used to transport refrigerated/frozen
goods.
Removable Gooseneck (RGN)
A term used to describe a trailer whose gooseneck (used to connect the trailer to the truck) can be removed. This creates a ramp to be used in the loading/offloading of large machinery.
Sea Waybill (SWB)
A transport contract similar to a Bill of Lading, but not needed for cargo delivery. It serves as a cargo receipt and can be in hard copy or digital format.
Semitrailer
A truck trailer supported at the rear by its own wheels and at the front by a fifth wheel mounted to a tractor or a dolly.
Shipping Instructions (SI)
Confirmation that space has been allocated on a vessel for a shipment.
Shipping Lane
The route that is routinely served by a carrier specific to a start and ending point.
Shipping Line
A company that transports cargo via ocean freight.
Shipping Marks
Symbols or words on cargo to identify shipments and their destinations.
Shipper
The person or company who is usually the supplier or owner of the commodities shipped. Also known as the consignor.
Shipper Owned Container (SOC)
A term indicating that a shipper owns their own shipping container.
Sleeper
A sleeping compartment mounted behind a truck cab, sometimes attached to the cab or even designed to be an integral part of it.
Sliding Fifth Wheel
A fifth wheel mounted to a mechanism that allows it to be moved back and forth for the purpose of adjusting the distribution of weight on the tractor’s axles.
Stock Keeping Unit (SKU)
A distinct type of item for sale, used for inventory management.
Straight Truck
A vehicle that carries cargo in a body mounted to its chassis, rather than on a trailer towed by a vehicle.
Supply Chain Management (SCM)
The management of the flow of goods, data, and finances from procuring raw materials to delivering the final product.
Tanker Endorsement
A charge applied when shipping 1,000 gallons of liquid or more in a dry van.
Tariff Code
A code used when clearing goods through customs, indicating the percentage of duty to be paid on a product.
Tarp Charge
The charge levied when goods are moved using an open-deck trailer but need further protection from the elements using a tarp.
Telex Release
The electronic handover of the Bill of Lading, allowing instant release of goods.
Terminal Handling Charge (THC)
The cost for handling goods or containers at a port, billed based on container size for FCL or weight/measure for LCL.
TL (Truckload)
The quantity of freight required to fill a trailer; usually more than 10,000 pounds.
Tractor
A common industry term referring to the truck/semi carrying the trailer.
Tractor Trailer
A tractor and semitrailer combination.
Transit Time
The amount of time a ship or plane travels between the Port of Loading and the Port of Discharge, not to be confused with total door-to-door time.
Transshipment
The act of transferring goods from one mode of transport to another during the journey from the shipper to the consignee.
Trip Leasing
Leasing a company's vehicle to another transportation provider for a single trip.
Twenty-Foot Equivalent Unit (TEU)
A measurement used for containerized cargo, where one 20ft container is one TEU and one 40ft container is two TEUs.
Truck Order Not Used (TONU)
A charge that arises when a shipper orders a truck but does not end up using it.
Twin Trailers
A combination of a tractor and two semitrailers connected in tandem by a converter dolly.
Waybill
A document issued by a carrier giving details and instructions relating to the shipment of a consignment of goods.
Weight Per Measure (W/M)
The cost calculation method based on the greater value between the volume or weight of the shipment.
Wharfage
A fee charged for the use of a wharf for mooring, loading, or unloading vessels.
Yield Management
The process of understanding, anticipating, and influencing consumer behavior to maximize revenue or profits from a fixed, perishable resource, such as container space.