In the freight business, there are many common terms that we need to understand clearly. Without this knowledge, our operations can be affected, and communication efficiency with clients may suffer.
1. FOB (Free On Board)
The seller delivers goods to the designated port and is responsible for loading them onto the vessel specified by the buyer.
2. CIF (Cost, Insurance, and Freight)
The seller covers freight and insurance costs, but risk transfers to the buyer once goods are handed over to the shipping company.
3. EXW (Ex Works)
The buyer collects goods from the seller's factory or warehouse and is responsible for all transportation and insurance costs.
4. B/L (Bill of Lading)
A receipt issued by the shipping company confirming that the goods have been loaded on board.
5. TEU (Twenty-foot Equivalent Unit)
A standard unit of measure for cargo capacity, originally based on a 20-foot container.
6. LCL (Less than Container Load)
When a shipper sends smaller quantities of goods, the carrier consolidates them with other shipments bound for the same destination.
7. FCL (Full Container Load)
A shipment that fills an entire container.
8. Demurrage
A fee charged when cargo is not picked up from the port or terminal within the allowed free time.
9. Detention
A fee charged when a container is not returned to the shipping company within the agreed time.
10. Incoterms
International Commercial Terms set by the International Chamber of Commerce defining delivery responsibilities in global trade.
11. AWB (Air Waybill)
A document issued by an airline or its agent, serving as a contract of carriage for air cargo.
12. CBM (Cubic Meter)
A unit of volume measurement for cargo.
13. ETA (Estimated Time of Arrival)
The expected arrival time of a shipment.
14. ETD (Estimated Time of Departure)
The expected departure time of a shipment.
15. POD (Port of Discharge)
The port where cargo is unloaded.
16. POL (Port of Loading)
The port where cargo is loaded.
17. T/T (Transit Time)
The estimated time for goods to travel from the port of loading to the port of discharge.
18. NVOCC (Non-Vessel Operating Common Carrier)
A freight forwarder that provides ocean transport services without operating its own vessels.
19. RO/RO (Roll-On/Roll-Off)
A ship designed for wheeled cargo, where vehicles can roll on and off.
20. Break Bulk Cargo
Cargo shipped in packages (boxes, barrels, pallets) rather than in bulk or containers.
21. Cross Docking
Goods are unloaded at a transit facility, sorted, and loaded directly onto outbound transport without long-term storage.
22. Deadhead
When a transport vehicle returns empty or travels without carrying cargo.
23. Intermodal
Transport using two or more modes, e.g., sea plus road.
24. Pallet
A wooden or plastic platform for stacking goods to facilitate handling and transport.
25. SLC (Shipper's Load and Count)
The shipper loads the container and counts the cargo themselves.
26. BAF (Bunker Adjustment Factor)
A surcharge to cover fluctuations in fuel costs.
27. CAF (Currency Adjustment Factor)
A surcharge to offset exchange rate fluctuations.
28. DDU (Delivered Duty Unpaid)
The seller delivers goods to a specified location but the buyer pays import duties.
29. Bulk Cargo
Unpackaged goods loaded directly into the ship's hold, such as coal or ore.
30. DDP (Delivered Duty Paid)
The seller delivers goods and pays all import duties.
31. DR (Dock Receipt)
Proof that goods have been delivered to the carrier at the dock.
32. FEU (Forty-foot Equivalent Unit)
A measure based on a 40-foot container's capacity.
33. GRI (General Rate Increase)
A general freight rate hike announced by carriers.
34. HAWB (House Air Waybill)
An air waybill issued by a freight forwarder to individual shippers for consolidated shipments.
35. MAWB (Master Air Waybill)
The main air waybill issued by the airline for a consolidated shipment.
36. IPI (Inland Point Intermodal)
Multimodal transport from a seaport to an inland location.
37. OOG (Out of Gauge)
Cargo exceeding standard container dimensions.
38. OTI (Ocean Transportation Intermediary)
An intermediary providing ocean shipping and related services.
39. Reefer (Refrigerated Container)
A container for transporting temperature-sensitive goods.
40. W/M (Weight or Measure)
Freight charged by weight or volume, whichever is greater.
41. Backhaul
Cargo carried on the return leg of a transport route.
42. Bill of Lading (BOL)
A contract between shipper and carrier acknowledging receipt of goods.
43. Cartage
Short-distance local transport.
44. Consolidation
Combining smaller shipments into one larger shipment for efficiency.
45. Deconsolidation
Breaking down a consolidated shipment into smaller shipments.
46. Freight Forwarder
A company arranging transportation on behalf of shippers or consignees.
47. High Cube
A container taller than standard height.
48. Inbound
Goods coming into a location (imports).
49. Outbound
Goods leaving a location (exports).
50. Line Haul
Long-distance transport between cities.
51. LTL (Less than Truckload)
A shipment that does not fill a truck.
52. FTL (Full Truckload)
A shipment that fills an entire truck.
53. P&D (Pickup and Delivery)
Collecting goods from the shipper and delivering them to the consignee.
54. Gateway
A major port or airport serving as an entry or exit point for cargo.
55. Transloading
Transferring cargo from one mode of transport to another.
56. Track and Trace
Monitoring the location and status of a shipment in transit.
