Glossary

Making sense of freight talk.

Transport and logistics have their own language — acronyms, documents and terms that can slow down a shipment if misunderstood. We've put together a plain-language glossary of the freight forwarding and shipping terminology our customers ask about most.

Incoterms

General freight & logistics terms

TermDefinition
3PL – Third-Party LogisticsA company that manages logistics activities such as transportation, warehousing and distribution on behalf of another business. Delman Shipping offers Third Party Logistics.
AOG – Aircraft on GroundAn urgent aviation situation where an aircraft cannot operate until a required component, tool or document arrives.
Air FreightThe transportation of goods by aircraft. It is normally used for urgent, valuable, perishable or time-sensitive shipments.
Air Waybill – AWBA transport document issued for air cargo. It records shipment details and acts as evidence of the agreement with the air carrier.
Arrival NoticeA notification advising the consignee that a shipment has arrived or is expected to arrive at the destination.
Bill of Entry / Customs DeclarationA declaration submitted to customs containing details such as the commodity, value, origin and HS code of imported or exported goods.
Bill of Lading – B/LA sea-freight document issued by the carrier. It acts as a cargo receipt, evidence of the transport contract and, in certain forms, a document of title.
Bonded WarehouseA customs-controlled facility where imported goods may be stored before duties and taxes are paid or before the goods are re-exported.
Breakbulk CargoCargo that is loaded individually rather than inside a standard shipping container, usually because of its size, weight or shape.
Cargo InsuranceInsurance that can protect the financial value of goods against covered loss or damage during transportation.
CBM – Cubic MetreA measurement of cargo volume. It is calculated by multiplying the cargo’s length, width and height in metres.
Certificate of Origin – COOA document confirming the country in which goods were produced or manufactured. Customs may require it to determine duties or trade eligibility.
CFS – Container Freight StationA facility where LCL cargo is received, consolidated into containers or separated after arrival.
Cold ChainA temperature-controlled logistics process used to keep products within a required temperature range during storage and transportation.
Commercial InvoiceA document issued by the seller showing the buyer, goods, quantity, price, currency and terms of sale. Customs uses it to assess the shipment.
ConsigneeThe person or company identified as the receiver of a shipment.
ConsolidationCombining several smaller shipments into one larger shipment to use transport capacity more efficiently.
Customs ClearanceThe process of submitting documents, declarations and payments required by customs before goods can enter or leave a country.
Cut-off TimeThe latest time by which cargo or documentation must be received for a scheduled vessel, flight or truck departure.
Dangerous Goods – DGGoods that may present safety, health, property or environmental risks during transportation and must follow special classification, packaging, labelling and documentation rules.
Delivery Order – DOA document or electronic authorization issued or approved by the carrier, such as a shipping line for sea freight or an airline or ground-handling agent for air freight, allowing cargo to be released to the consignee or its authorized representative, such as a freight forwarder, customs-clearing agent, trucking company or haulier.
DistributionThe process of moving stored goods from a warehouse or distribution centre to shops, businesses or final customers.
Door-to-Door ServiceA logistics service covering collection from the sender and delivery to the receiver’s address. Customs duties and taxes depend on the agreed quotation and Incoterm.
ETA – Estimated Time of ArrivalThe expected date and time when a vessel, aircraft, truck or shipment will reach its destination.
ETD – Estimated Time of DepartureThe expected date and time when a vessel, aircraft or truck will leave its origin.
ExportThe process of sending goods from one country to another for sale, use or distribution.
FCL – Full Container LoadA sea-freight shipment where one shipper books an entire container, even if every part of the container is not used.
Freight ForwarderA logistics specialist that arranges cargo transportation and may coordinate carriers, documents, customs clearance, warehousing and delivery.
FTL – Full TruckloadRoad freight where a customer books the full capacity or exclusive use of a truck.
Gross WeightThe total weight of the goods together with their packaging, cartons, crates or pallets.
HAWB – House Air WaybillAn air-freight document issued by a freight forwarder to the individual shipper.
HBL – House Bill of LadingA sea-freight bill of lading issued by a freight forwarder or NVOCC to its customer.
HS Code – Harmonized System CodeAn internationally standardized product-classification code used by customs to identify goods and determine applicable requirements or duties.
ImportThe process of bringing goods into a country from another country.
LashingSecuring cargo with straps, chains, cables or other equipment to prevent it from moving during transportation.
LCL – Less than Container LoadSea freight where smaller shipments from different customers share one container. Charges are generally based on cargo volume or weight.
LTL – Less than TruckloadRoad freight where a shipment shares truck space with goods belonging to other customers.
MAWB – Master Air WaybillAn air waybill issued by the airline to the freight forwarder covering the consolidated cargo booked with the airline.
MBL – Master Bill of LadingA sea-freight bill of lading issued by the shipping line to the freight forwarder or NVOCC.
Multimodal TransportTransportation using two or more modes, such as road, sea, air or rail, during the same overall shipment journey.
Net WeightThe weight of the goods alone, excluding cartons, pallets, crates and other packaging.
Oversized CargoCargo whose dimensions exceed the limits of standard transport equipment and therefore requires special planning or equipment.
Packing ListA document describing how goods are packed, including the number of packages, contents, dimensions, net weight and gross weight.
PalletA flat platform used to group and handle cartons or goods with equipment such as forklifts and pallet jacks.
POD – Proof of DeliveryA document or electronic record confirming that cargo was delivered to the receiver.
Port of Discharge – PODThe port where cargo is unloaded from the vessel. This abbreviation should not be confused with Proof of Delivery.
Port of Loading – POLThe port where cargo is loaded onto the vessel for the main sea journey.
Project CargoLarge, heavy, valuable or complex cargo requiring customized transport planning, lifting, permits, route surveys or special equipment.
Re-exportExporting previously imported goods without using or substantially changing them in the intermediate country.
Reefer ContainerA refrigerated container designed to maintain a controlled temperature for products such as food, pharmaceuticals or chemicals.
RoRo – Roll-on/Roll-offA sea-transport method where wheeled cargo is driven or rolled onto and off a specially designed vessel.
Stuffing and DestuffingStuffing means loading cargo into a container; destuffing means unloading it after arrival.
TEU – Twenty-Foot Equivalent UnitA standard measurement of container capacity. One 20-foot container equals one TEU, while one 40-foot container usually equals two TEUs.
Track and TraceA system or process used to check a shipment’s status and recorded locations during transportation.
Transit TimeThe expected amount of time required for cargo to travel between the stated origin and destination.
TransshipmentMoving cargo from one vessel or aircraft to another at an intermediate location before it reaches the final destination.
ULD – Unit Load DeviceA specialized aircraft container or pallet used to group cargo for safe and efficient loading onto an aircraft.
VGM – Verified Gross MassThe confirmed total weight of a packed sea container, including the cargo, packaging and the container’s own tare weight.
Volumetric WeightA calculated weight based on how much space cargo occupies. Carriers compare it with actual weight when calculating certain freight charges.
WarehousingThe secure storage and handling of goods before distribution, export, re-export or final delivery.

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