Freight Glossary
Freight Terms
Beneficial Cargo Owner
The actual owner of the freight being shipped, as opposed to intermediaries like freight forwarders or logistics providers. BCOs are typically companies that send or receive goods in substantial volumes, having a direct interest in the cargo.
Bonded Goods
Merchandise stored or transported under customs control, either awaiting import duties and taxes or in transit to another destination. This status allows for deferred payment of duties, often in secured facilities known as bonded warehouses.
Cheapest Freight
A term used to describe the most cost-effective option for transporting goods. It typically involves a balance between transit times, service levels, and price, catering to shippers with budget constraints or less time-sensitive shipments.
Consignor
The individual or entity that originates a shipment of goods. In a freight transaction, the consignor is responsible for preparing and handing over the cargo to a carrier for transportation to the consignee or recipient.
Export Declaration
A mandatory document submitted by exporters to customs authorities, detailing the nature, quantity, and destination of goods being sent abroad. This declaration is crucial for compliance with export regulations and tracking international trade.
Freight Hauler
A company or individual specializing in the transportation of large quantities of goods, typically using sizeable vehicles like trucks and trailers. They play a pivotal role in supply chains, ensuring goods move from origin to destination.
Freight Shipping Quote
An estimate provided by carriers or freight forwarders detailing the cost to transport goods from one location to another. This quote typically includes fees for transportation, handling, insurance, and any additional services required.
Importer Security Filling
A requirement by customs authorities for maritime shipments entering certain countries, where importers must electronically submit detailed information about the contents of their shipments before they are loaded onto vessels. This measure is designed to enhance security and facilitate risk assessment of incoming cargo.
Inspection Certificate
A document issued by a qualified inspector or agency verifying that goods have been inspected and meet the specified requirements or standards. This certificate is often required for customs clearance and to ensure compliance with the importing country's regulations.
International Courier
A service specializing in the fast delivery of documents and parcels across national borders. International couriers offer expedited shipping, tracking, and custom clearance services, catering to time-sensitive and valuable shipments.
Lift Gate
A mechanical device fitted to the back of a truck or trailer, used to facilitate the loading and unloading of goods. It operates by raising or lowering cargo from the ground to the vehicle's level, aiding in the handling of heavy items.
Parcel Shipping
The process of dispatching smaller, individually packaged items, often via courier or postal services. This method is distinguished by handling units that are lighter and smaller compared to bulk freight, making it ideal for e-commerce and retail deliveries.
TL of FTL - Truckload or Full Truckload
A freight mode where a large quantity of goods, usually enough to fill an entire semi-trailer, is transported by road. This term is often used to differentiate from less-than-truckload (LTL) shipping, where cargo space is shared among multiple shippers.
Trucking
The act of transporting goods by road using trucks. A vital component of the logistics and distribution network, providing flexibility and connectivity between other modes of transportation.
Trucking Broker
An intermediary between shippers and trucking companies, responsible for arranging the transportation of goods. Brokers do not own trucks but play a key role in the logistics chain by matching available shipments with carriers.
Trucking Business
An enterprise that involves the operation of trucks for the purpose of transporting goods across distances. It encompasses logistics, fleet management, and regulatory compliance.
Trucking Companies
Businesses that offer transportation services for goods using trucks. These companies can range from small operations to large fleets offering nationwide or international shipping.
Traffic Mitigation Fee
A charge imposed on shipping companies or cargo owners by ports or regulatory authorities, intended to offset the costs associated with managing traffic congestion and improving infrastructure within port areas or transport corridors.
Trucking Cost per Mile
A calculation used in the trucking industry to determine the expense of transporting goods over one mile. It factors in fuel, maintenance, driver wages, and other operational costs.
Trucking Rates
The pricing structure determined by trucking companies for the transportation of goods. Rates may vary based on distance, cargo weight, type, and additional services.
Trucking Service
A transportation service provided by companies that specialize in the conveyance of goods by road, using various types of trucks suited to different cargo sizes and types.
Twenty-foot Equivalent Unit (TEU)
A measurement standard representing a container's dimensions, typically 20 feet in length, used in quantifying cargo capacity or shipping container volumes. It serves as a universal scale for classifying container sizes in the global shipping industry.
Unit Load Device
Equipment used in aviation to consolidate cargo into single units, facilitating quick loading onto aircraft and optimizing space. ULDs include containers and pallets specifically designed for air transport.
Valuable Cargo
Goods considered to have a high monetary value or significance, requiring specialized handling, security, and insurance during transportation.
Air Freight Terminology
Allotment
A term used in air freight to describe a pre-agreed space or weight capacity reserved by an airline for a freight forwarder or shipper over a specified period.
ATA
ATA signifies the precise time an aircraft arrives at its destination. This timestamp is vital for logistics planning, enabling accurate updates on cargo delivery schedules.
ATD
ATD marks the confirmed time an aircraft departs from the airport. It is crucial for tracking shipments and estimating arrival times in air freight operations.
Charter
Chartering in air freight involves hiring an entire aircraft for a specific shipment, allowing for a customized schedule and route. This option is preferred for urgent, high-value, or outsize cargo needing dedicated transport.
Consignment
A consignment refers to goods entrusted to an airline or freight forwarder for transportation to a designated recipient. The consignor (shipper) retains ownership until the consignee (receiver) accepts the delivery.
Consolidation
Consolidation in air freight is the process of combining multiple smaller shipments into one lot to optimize cargo space and reduce shipping costs. It allows for economical transport by sharing the total charge among various shippers.
Container
In air freight, a container is a standardized unit used to transport cargo securely and efficiently. These containers are designed to fit into aircraft holds, maximizing space utilization and protecting goods during transit.
Customs
Customs is a government agency responsible for regulating the import and export of goods in and out of a country. They enforce trade laws, collect duties and taxes, and ensure compliance with international shipping regulations.
DDU
DDU is an international trade term indicating that the seller is responsible for delivering goods to a specified location, with the buyer covering import duties, taxes, and customs clearance costs.
Duty
A tax imposed by customs on imported and, sometimes, exported goods. Duties are typically based on the value of the goods, their type, and their origin.
EDI
EDI is a system that allows trading partners to exchange documents and information electronically, such as invoices and bills of lading, enhancing efficiency and accuracy in air freight logistics.
ETD
The projected time at which a vehicle, aircraft, or vessel is expected to depart from a specified location.
Gateway
In air freight transportation, a gateway refers to a major airport through which cargo is processed for international import and export. It acts as a pivotal point for consolidating and redistributing shipments to their final destinations.
IATA
A global trade organization representing and serving the airline industry, responsible for regulation, facilitation, and standardization in air transport.
Incoterms
International commercial terms published by the International Chamber of Commerce, defining the responsibilities of buyers and sellers in international transactions, including transport, insurance, and tariffs.
Insurance Certificate
A document issued by an insurance company or broker that serves as proof of insurance coverage for goods during transportation.
Intermodal
A type of transport that involves the movement of goods in one and the same loading unit or vehicle, using multiple modes of transportation (e.g., rail, ship, and truck) without handling the freight itself when changing modes.
Lower Deck
The cargo area below the main deck in an aircraft, used for transporting freight, luggage, and mail. It maximizes the aircraft's capacity for carrying goods alongside passenger luggage.
Packing List
A packing list is a detailed document accompanying a shipment that lists all included items, their quantities, and descriptions. It is essential for customs clearance, verifying cargo, and handling instructions.
Pro Forma Invoice
A preliminary bill of sale sent to buyers in advance of a shipment or delivery of goods, detailing the types and quantities of goods, their value, and other important information.
Shortage
A shortage occurs when the received quantity of goods is less than the quantity stated on the shipping documents. This discrepancy can result from errors in loading, theft, or damage during transportation.
Incoterms
CFR (Cost and Freight)
This term means the seller must pay the costs and freight necessary to bring the goods to the named port of destination, but the risk is transferred to the buyer once the goods are loaded on the vessel.
CIF (Cost, Insurance and Freight)
A term where the seller covers the costs, insurance, and freight to bring the goods to the port of destination. However, risk is transferred to the buyer once the goods are loaded on the vessel.
CIP (Carriage and Insurance Paid To)
A term where the seller pays for the carriage and insurance to the named destination, but the risk transfers to the buyer upon handing the goods over to the first carrier.
CPT (Carriage Paid To)
Indicates the seller pays for the carriage of goods to the named destination, but risk transfers to the buyer when the goods are handed over to the first carrier.
DAP (Delivered At
Place
Indicates the seller delivers the goods to a named place of destination, ready for unloading at the buyer's disposal, not cleared for import or unloaded.
DAT (Delivered At
Terminal)
A term where the seller delivers and unloads the goods at a terminal (quay, warehouse, container yard, or road, rail or air cargo terminal) at the destination agreed, assuming all risks and costs to that point.
DDP (Delivered Duty
Paid)
Indicates that the seller delivers the goods to the buyer, cleared for import, and bears all costs and risks, including duty payments and customs clearance.
EXW (EX-Works)
A term where the seller makes goods available at their premises, or another named place, with the buyer being responsible for all subsequent costs and risks involved in moving the goods to the final destination.
FAS (Free Alongside
Ship)
This term means the seller places the goods alongside the vessel on which they are to be shipped. The seller is responsible for the cost and risk until the goods are alongside the ship.
FCA (Free Carrier)
A term indicating the seller delivers the goods, cleared for export, to the carrier selected by the buyer at a specified location. The risk passes to the buyer when the goods are handed over to the carrier.
FOB (Free On Board)
A shipping term where the seller is responsible for delivering goods on board a ship chosen by the buyer. Liability and costs transfer to the buyer once the goods cross the ship's rail at the departure port.
Freight Terms
The actual owner of the freight being shipped, as opposed to intermediaries like freight forwarders or logistics providers. BCOs are typically companies that send or receive goods in substantial volumes, having a direct interest in the cargo.
Learn More
Merchandise stored or transported under customs control, either awaiting import duties and taxes or in transit to another destination. This status allows for deferred payment of duties, often in secured facilities known as bonded warehouses.
Learn More
A term used to describe the most cost-effective option for transporting goods. It typically involves a balance between transit times, service levels, and price, catering to shippers with budget constraints or less time-sensitive shipments.
Learn More
The individual or entity that originates a shipment of goods. In a freight transaction, the consignor is responsible for preparing and handing over the cargo to a carrier for transportation to the consignee or recipient.
Learn More
A mandatory document submitted by exporters to customs authorities, detailing the nature, quantity, and destination of goods being sent abroad. This declaration is crucial for compliance with export regulations and tracking international trade.
Learn More
A company or individual specializing in the transportation of large quantities of goods, typically using sizeable vehicles like trucks and trailers. They play a pivotal role in supply chains, ensuring goods move from origin to destination.
Learn More
An estimate provided by carriers or freight forwarders detailing the cost to transport goods from one location to another. This quote typically includes fees for transportation, handling, insurance, and any additional services required.
Learn More
A requirement by customs authorities for maritime shipments entering certain countries, where importers must electronically submit detailed information about the contents of their shipments before they are loaded onto vessels. This measure is designed to enhance security and facilitate risk assessment of incoming cargo.
Learn More
A document issued by a qualified inspector or agency verifying that goods have been inspected and meet the specified requirements or standards. This certificate is often required for customs clearance and to ensure compliance with the importing country's regulations.
Learn More
A service specializing in the fast delivery of documents and parcels across national borders. International couriers offer expedited shipping, tracking, and custom clearance services, catering to time-sensitive and valuable shipments.
Learn More
A mechanical device fitted to the back of a truck or trailer, used to facilitate the loading and unloading of goods. It operates by raising or lowering cargo from the ground to the vehicle's level, aiding in the handling of heavy items.
Learn More
The process of dispatching smaller, individually packaged items, often via courier or postal services. This method is distinguished by handling units that are lighter and smaller compared to bulk freight, making it ideal for e-commerce and retail deliveries.
Learn More
A freight mode where a large quantity of goods, usually enough to fill an entire semi-trailer, is transported by road. This term is often used to differentiate from less-than-truckload (LTL) shipping, where cargo space is shared among multiple shippers.
Learn More
The act of transporting goods by road using trucks. A vital component of the logistics and distribution network, providing flexibility and connectivity between other modes of transportation.
An intermediary between shippers and trucking companies, responsible for arranging the transportation of goods. Brokers do not own trucks but play a key role in the logistics chain by matching available shipments with carriers.
An enterprise that involves the operation of trucks for the purpose of transporting goods across distances. It encompasses logistics, fleet management, and regulatory compliance.
Businesses that offer transportation services for goods using trucks. These companies can range from small operations to large fleets offering nationwide or international shipping.
A charge imposed on shipping companies or cargo owners by ports or regulatory authorities, intended to offset the costs associated with managing traffic congestion and improving infrastructure within port areas or transport corridors.
Learn More
A calculation used in the trucking industry to determine the expense of transporting goods over one mile. It factors in fuel, maintenance, driver wages, and other operational costs.
The pricing structure determined by trucking companies for the transportation of goods. Rates may vary based on distance, cargo weight, type, and additional services.
A transportation service provided by companies that specialize in the conveyance of goods by road, using various types of trucks suited to different cargo sizes and types.
A measurement standard representing a container's dimensions, typically 20 feet in length, used in quantifying cargo capacity or shipping container volumes. It serves as a universal scale for classifying container sizes in the global shipping industry.
Learn More
Equipment used in aviation to consolidate cargo into single units, facilitating quick loading onto aircraft and optimizing space. ULDs include containers and pallets specifically designed for air transport.
Goods considered to have a high monetary value or significance, requiring specialized handling, security, and insurance during transportation.
Air Freight Terminology
A term used in air freight to describe a pre-agreed space or weight capacity reserved by an airline for a freight forwarder or shipper over a specified period.
ATA signifies the precise time an aircraft arrives at its destination. This timestamp is vital for logistics planning, enabling accurate updates on cargo delivery schedules.
ATD marks the confirmed time an aircraft departs from the airport. It is crucial for tracking shipments and estimating arrival times in air freight operations.
Chartering in air freight involves hiring an entire aircraft for a specific shipment, allowing for a customized schedule and route. This option is preferred for urgent, high-value, or outsize cargo needing dedicated transport.
A consignment refers to goods entrusted to an airline or freight forwarder for transportation to a designated recipient. The consignor (shipper) retains ownership until the consignee (receiver) accepts the delivery.
Consolidation in air freight is the process of combining multiple smaller shipments into one lot to optimize cargo space and reduce shipping costs. It allows for economical transport by sharing the total charge among various shippers.
In air freight, a container is a standardized unit used to transport cargo securely and efficiently. These containers are designed to fit into aircraft holds, maximizing space utilization and protecting goods during transit.
Customs is a government agency responsible for regulating the import and export of goods in and out of a country. They enforce trade laws, collect duties and taxes, and ensure compliance with international shipping regulations.
DDU is an international trade term indicating that the seller is responsible for delivering goods to a specified location, with the buyer covering import duties, taxes, and customs clearance costs.
A tax imposed by customs on imported and, sometimes, exported goods. Duties are typically based on the value of the goods, their type, and their origin.
EDI is a system that allows trading partners to exchange documents and information electronically, such as invoices and bills of lading, enhancing efficiency and accuracy in air freight logistics.
The projected time at which a vehicle, aircraft, or vessel is expected to depart from a specified location.
In air freight transportation, a gateway refers to a major airport through which cargo is processed for international import and export. It acts as a pivotal point for consolidating and redistributing shipments to their final destinations.
A global trade organization representing and serving the airline industry, responsible for regulation, facilitation, and standardization in air transport.
International commercial terms published by the International Chamber of Commerce, defining the responsibilities of buyers and sellers in international transactions, including transport, insurance, and tariffs.
A document issued by an insurance company or broker that serves as proof of insurance coverage for goods during transportation.
A type of transport that involves the movement of goods in one and the same loading unit or vehicle, using multiple modes of transportation (e.g., rail, ship, and truck) without handling the freight itself when changing modes.
The cargo area below the main deck in an aircraft, used for transporting freight, luggage, and mail. It maximizes the aircraft's capacity for carrying goods alongside passenger luggage.
A packing list is a detailed document accompanying a shipment that lists all included items, their quantities, and descriptions. It is essential for customs clearance, verifying cargo, and handling instructions.
A preliminary bill of sale sent to buyers in advance of a shipment or delivery of goods, detailing the types and quantities of goods, their value, and other important information.
A shortage occurs when the received quantity of goods is less than the quantity stated on the shipping documents. This discrepancy can result from errors in loading, theft, or damage during transportation.
Incoterms
This term means the seller must pay the costs and freight necessary to bring the goods to the named port of destination, but the risk is transferred to the buyer once the goods are loaded on the vessel.
A term where the seller covers the costs, insurance, and freight to bring the goods to the port of destination. However, risk is transferred to the buyer once the goods are loaded on the vessel.
A term where the seller pays for the carriage and insurance to the named destination, but the risk transfers to the buyer upon handing the goods over to the first carrier.
Indicates the seller pays for the carriage of goods to the named destination, but risk transfers to the buyer when the goods are handed over to the first carrier.
Indicates the seller delivers the goods to a named place of destination, ready for unloading at the buyer's disposal, not cleared for import or unloaded.
A term where the seller delivers and unloads the goods at a terminal (quay, warehouse, container yard, or road, rail or air cargo terminal) at the destination agreed, assuming all risks and costs to that point.
Indicates that the seller delivers the goods to the buyer, cleared for import, and bears all costs and risks, including duty payments and customs clearance.
A term where the seller makes goods available at their premises, or another named place, with the buyer being responsible for all subsequent costs and risks involved in moving the goods to the final destination.
This term means the seller places the goods alongside the vessel on which they are to be shipped. The seller is responsible for the cost and risk until the goods are alongside the ship.
A term indicating the seller delivers the goods, cleared for export, to the carrier selected by the buyer at a specified location. The risk passes to the buyer when the goods are handed over to the carrier.
A shipping term where the seller is responsible for delivering goods on board a ship chosen by the buyer. Liability and costs transfer to the buyer once the goods cross the ship's rail at the departure port.