Freight and Logistics Glossary

Common Shipping, Customs and Supply Chain Terms Explained

This glossary defines commonly used terms across freight forwarding, air and ocean transport, intermodal logistics, customs, warehousing, and dangerous goods. Definitions are written for clarity and industry accuracy.

FREIGHT DIRECTORY maintains this glossary as a reference resource for freight forwarders, 3PLs, customs brokers, warehouse operators, and supply chain professionals.

A:

Air Waybill (AWB)

A non-negotiable transport document used for air cargo that serves as a receipt of goods and contract of carriage.

All-Risk Insurance

Cargo insurance covering loss or damage from most causes, subject to policy exclusions.

Arrival Notice

Notification issued by a carrier or agent advising the consignee of cargo arrival and next steps.

B:

Bill of Lading (B/L)

A transport document issued by a carrier acknowledging receipt of cargo and detailing shipment terms. May function as a document of title in ocean freight.

Bonded Warehouse

A customs-controlled facility where imported goods may be stored without immediate payment of duties.

Breakbulk Cargo

Non-containerized cargo shipped as individual units, often oversized or heavy.

C:

Carrier

A company that physically transports cargo by air, ocean, rail, or truck.

Chargeable Weight

The weight used for billing purposes, calculated as the greater of actual weight or volumetric weight.

Chassis

A wheeled trailer frame used to transport ocean containers over the road.

Consignee

The party to whom goods are shipped and delivered.

D:

Dangerous Goods (DG)

Substances classified as hazardous to health, safety, property, or the environment during transport or storage.

Delivered Duty Paid (DDP)

An Incoterm where the seller assumes responsibility for all costs, risks, and duties to the destination.

Demurrage

Charges assessed for containers remaining at a port or terminal beyond free time.

Detention

Fees charged for holding carrier equipment (containers or chassis) outside the terminal beyond free time.

E:

Export Declaration

A filing submitted to customs authorities detailing export shipment data.

Express Release

An ocean freight release method allowing cargo delivery without surrender of original bills of lading.

F:

FCL (Full Container Load)

A shipment that occupies an entire container, regardless of whether it is fully loaded.

Freight Forwarder

A logistics intermediary that arranges transportation, documentation, and coordination of cargo movement.

Fuel Surcharge

An additional charge applied to offset fluctuating fuel costs.

G:

Gross Weight

The total weight of cargo including packaging and pallets.

Gateway

A major port or airport serving as a primary entry or exit point for cargo.

H:

HAWB (House Air Waybill)

An air waybill issued by a freight forwarder to the shipper.

HS Code (Harmonized System Code)

An internationally standardized tariff classification code used for customs purposes.

I:

Incoterms

International rules defining buyer and seller responsibilities for delivery, risk, and cost allocation.

Importer of Record (IOR)

The party legally responsible for import compliance, duties, and recordkeeping.

Intermodal Transport

The movement of cargo using multiple transport modes without handling the goods themselves.

K:

Known Shipper

An approved shipper recognized by aviation authorities as compliant with security requirements.

L:

LCL (Less than Container Load)

A shipment that shares container space with other cargo.

Lead Time

The total time from shipment booking to final delivery.

Linehaul

The long-distance movement portion of a freight journey.

M:

MAWB (Master Air Waybill)

The primary air waybill issued by an airline covering consolidated shipments.

Manifest

A document listing all cargo aboard a vessel, aircraft, or vehicle.

N:

NVOCC (Non-Vessel Operating Common Carrier)

A company that sells ocean freight services without owning vessels and issues its own bills of lading.

O:

Origin

The location where cargo begins its transportation journey.

Out-of-Gauge (OOG)

Cargo exceeding standard container dimensions.

P:

Pallet

A flat structure used to support cargo during handling and transport.

Port of Discharge (POD)

The port where cargo is unloaded from a vessel.

Proof of Delivery (POD)

Docu:mentation confirming cargo receipt by the consignee.

R:

Reefer Container

A temperature-controlled container used for perishables or pharmaceuticals.

Release Order

Authorization allowing cargo to be picked up from a terminal or warehouse.

S:

Shipper

The party exporting or sending the goods.

SOLAS

International convention governing maritime safety, including container weight verification.

Supply Chain

The end-to-end system involved in producing and delivering goods.

T:

Tariff

A schedule of duties or charges applied to goods.

Terminal Handling Charge (THC)

Fees assessed by terminals for cargo handling.

Transshipment

Cargo transfer from one vessel or aircraft to another during transit.

U:

ULD (Unit Load Device)

Standardized air cargo containers or pallets used to load aircraft.

UN Number

A four-digit identification number assigned to dangerous goods.

V:

VGM (Verified Gross Mass)

The verified total weight of a packed container required prior to vessel loading.

Volumetric Weight

A calculated weight based on cargo dimensions rather than actual mass.

W:

Warehouse Management System (WMS)

Software used to manage inventory, order fulfillment, and warehouse operations.

Waybill

A non-negotiable transport document used for cargo movement.

Glossary Disclaimer

FREIGHT DIRECTORY provides this glossary for educational and informational purposes. Definitions reflect common industry usage and may vary by country, carrier, or regulatory authority.