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Freight Forwarding Glossary

Act of God :
Marine Insurance term meaning an act beyond man’s control such as lightning, flood, earthquake or hurricane. Many shipping and other contracts include the “ force majeure” clause, which excuses the party who offends the contract due to Acts of God.
AI
All Inclusive Rates.
All-Risk Cargo Insurance
Provides comprehensive coverage for your cargo’s full value from the moment it’s picked up until it reaches its final destination.
AMS (Automated Manifest System)
Electronic computer link with U.S. Customs that allows for faster processing and clearance of cargo.
Arrival Notice
A notice furnished to consignee and shipping broker alerting them to the projected arrival of freight and availability of freight for pickup.
Authorized Economic Operator (AEO)
A certification granted to trusted businesses that meet rigorous standards for supply chain integrity. AEO status can streamline customs clearance, reduce delays, and improve overall trade efficiency.
Bank Guarantee (B/G) :
Document accepted in lieu of original bill of lading to release cargo. Protected in writing to carrier for performing a deviation from normal business, guaranteed by a bank.
BB (Break bulk)
Disassembling of consolidated shipments for delivery or reconsignment of a shipment.
Bonded Warehouse
A warehouse, section of a warehouse, or secured area designated by the Customs as a bonded warehouse. It is a temporary storage area for goods until duties are paid or otherwise properly released and the cleared from the Customs.
Bulk Freight
Not in packages or containers, shipped loose in the hold of the ship. Grain, coal and sulfur are usually bulk freight.
CAF (Currency Adjustment Factor) :
Surcharge percentage applied to freight rates to adjust currency fluctuations in order to equalize different currency values.
Carrier Certificate and Release Order (Carrier Certificate)
Used to advise Customs of the details of the shipment, its ownership, port of lading, etc. By means of this document, the carrier certifies that the firm or individual named in the certificate is the owner or consignee of the cargo.
CBM
Cubic Meter (35.314 Cubic Feet = 1 CBM).
CBP ACE Portal
A web-based platform that connects global traders with U.S. Customs and Border Protection (CBP), trade partners, and other government agencies. By using the ACE Portal, businesses can improve their efficiency, reduce costs, and enhance compliance with trade regulations.
Certificate of Origin (C/O)
A document, required at destination, issued to certify the origin of cargo and relevant cargo details.
Containerized Freight Indexes
Tools that track the cost of shipping containers on major trade lanes. They provide businesses with valuable information about current and historical shipping rates, allowing them to make informed decisions about their supply chains.
CFS
Container Freight Station.
CFS/CFS
Cargo movement delivered loose at origin point, stripped by carrier at destination, and picked up loose at destination terminal.
CFS/CY
Loose cargo received at origin point, loaded in a container by carrier, then delivered intact at destination.
CFT
Cubic Feet.
CIF
Cost Insurance and Freight.
Claim
A demand made by a shipper or insurance company upon a carrier for payment of a loss sustained through its negligence.
COD
Collect on Delivery; Carried on Docket (pricing); Change of Destination.
Commercial Invoice
A document identifying the seller and buyer of goods or services, identifying numbers such as invoice number, date, shipping date, the mode of transportation, delivery and payment terms, as well as a full listing and description of the goods or services being sold consist of prices, discounts and quantities. Governments using the commercial invoice to control imports often specify its form, content, number of copies, language to be used, etc.
Conference
Group of carriers allowed by FMC to determine a level of rates, services and rules of a given trade route bound together by a common tariff.
Consignee
Receiver of shipment.
Consolidator
A company who provides the consolidation service to a common point for convenience and special rate to accommodate the small shipment for the customer.
Consular Invoice
This document is used to control and identify goods shipped to them. It usually must be prepared on special forms and may require legalization by their Consul.
Container
A single rigid, sealed, reusable metal box designed to transport cargo of many types in continuous transportation. Most ocean vessels can accommodate 20′ and 40′ length ocean containers for below deck storage and any size above deck. Containers may be ventilated, insulated, flat rack (open sided), reefer (refrigerated), vehicle rack, or open top.
Credit Agreement
Agreement between carrier and shipper for release of cargo with promise to pay ocean freight within specified time.
CTPAT Trade Compliance
A voluntary program offered by U.S. Customs and Border Protection (CBP) that allows eligible importers to participate in supply chain security initiatives. By meeting the program’s requirements, importers can benefit from expedited customs clearance and other advantages.
Cut-Off
Last possible date cargo may be delivered to vessel or designated point.
CY (Container Yard)
Storage area where full containers are received and picked up.
CY/CFS
Cargo loaded in a full container by a shipper at origin, delivered to pier facility at destination, and then devanned by carrier for loose pick up.
CY/CY
A type of steamship line service in which freight is transported from origin container yard to destination container yard.
Dangerous Goods:
Substances or items that pose a significant risk to safety, health, or the environment during transportation. Examples include flammable liquids, corrosive materials, and lithium batteries. Shipping these hazardous materials by air requires strict adherence to regulations and specialized handling procedures.
DDC
Destination Delivery Charge. A charge assessed by the carrier for handling positioning of a full container within the container yard.
Delivery Instructions
The document provides specific information to a carrier regarding delivery to a specific port, pier, terminal, airport, or steamship line. They show the shipping carrier, delivery deadlines, name and address of consignee, and the contact name and telephone number of the shipper in case of delivery problems. This term is not to be confused with “Delivery Order” which is used for import cargo.
Delivery Order
(a) A document from the consignee, shipper, or owner of freight ordering a terminal operator, carrier, or warehouseman to deliver freight to another party. (b) An order from a vessels company to the terminal superintendent for the release of goods to the consignee following payment of freight charges.
Demurrage
A penalty charge against shippers or receivers for delaying carriers equipment beyond allowed time.
Detention
A fee imposed by a carrier if a container is not returned to the container yard or depot within the agreed time frame. This time frame may also vary based on factors like the type of container and the port’s capacity. If a buyer keeps a container for longer than the allotted time, they may incur detention charges for the additional days. Failure to pay detention or demurrage charges may result in additional fees or the carrier’s right to hold the cargo.
Devanning
The unloading cargo from a container. Also called un-stuffing, unloading, or stripping.
Dock Receipt
Receipt given for a shipment received or delivered at a pier or dock. When delivery of an overseas shipment is completed, the dock receipt is surrendered to the carrier and a bill of lading is issued.
Door to Door
Shipping service from the shipper’s door to the consignee’s door. Shipper is responsible for proper storage and security of cargo within container.
DWT
Deadweight capacity of vessel to carry cargo.
Entry :
A statement of the kinds, qualities and values of goods imported together with duties due, if any, and declared before a customs officer or other designated officer.  
Export Declaration
A document required of the exporter by the export authority of a country identifying the particulars of a specific export shipment, including the seller, buyer, goods, shipped, quantities and description of the goods and other details.
F.A.K :
Freight All Kinds.
FCL
Full Container Load.
FEU
Forty Foot Equivalent Unit, A 40′ container equals 2 TEUS.
Fiscal Representative
A designated individual or entity that acts as a local representative for non-resident companies, handling VAT compliance and related matters in the Netherlands.
FF
Freight Forwarder, A firm that represents shippers by arranging transport and completing documentation required for international shipping. Some freight forwarders also act as cargo consolidators.
FMC (Federal Maritime Commission)
U.S. Government Agency responsible for overseeing regulatory aspects of all maritime activities.
Free Trade Zone (FTZ)
A free trade zone (FTZ) is a designated area within a country that allows goods to be handled, manufactured, and re-exported without the involvement of customs agencies. FTZs are often located near major seaports, international airports, or national borders.
Free Time
Storage time allowed at carriers’ facility without penalties being assessed.
Free On Board (FOB)
An international term of sale. The goods are placed on board a ship by the seller at a port of shipment named in the sales contract. The risk of loss or damage to the goods is transferred from the seller to the buyer when the goods pass the ship’s rail.
General Average (GA) :
Coverage for loss resulting from voluntary sacrifice, e.g., jettison, or the act of expending cargo to prevent loss of vessel, crew, passengers, or total cargo. The value of such a loss is averaged among all interested parties.
General Order (GO)
A Customs term referring to a warehouse where merchandise not entered within five working days after the carrier’s arrival is stored at the risk and expense of the importer.
GRI
General Rate Increase.
Gross Weight
The total weight of the goods including packaging, wrapping, and internal and external containers.
Guarantee Letter (for Release of Cargo without Bill of Lading)
Document accepted in lieu of original bill of lading to release cargo. Protected in writing to carrier for performing a deviation from normal business, guaranteed by an acting officer of the Merchant (customer).
H/H :
House to House (same as CY/CY).
H/P
House to Pier (same as CY/CFS).
HAWB
House Air Waybill.
HS Codes
A globally recognized system used to categorize products for customs purposes. Each product is assigned a unique 6-digit HS Code. These codes are then used as the basis for country-specific tariff schedules, such as the HTS (Harmonized Tariff Schedule) in the United States.
IATA :
International Air Transport Association. The trade and service organization representing international airlines and forwarders from more than 100 countries.
IFM
Inward Foreign Manifest.
IMMEX PROGRAM
A Mexican government initiative designed to attract foreign investment and promote exports. Eligible companies can import raw materials, components, and equipment duty and tax-free if the goods are used in the production of merchandise that is exported within a specified time frame.
In Bond
The transportation of a shipment to an inland point for Customs clearance rather than filing an entry to clear the goods at the port of arrival.
Incoterms
A set of internationally recognized commercial terms that define the responsibilities of buyers and sellers in international trade transactions. They outline who is responsible for transportation, insurance, customs duties, and taxes.
Insurance Certificate
Assures the consignee that insurance is provided to cover loss or damage to the cargo while in transit.
Interchange Agreement
Contract between carrier and trucker that legally permits interchange of equipment.
Intermodal
The capability, which enables a shipment to be transferred from one form of transport to another, such as from airplane to truck, to railway freight car to ocean vessel.
International Maritime Organization (IMO)
A specialized agency of the United Nations that regulates international shipping activities. The IMO is responsible for promoting maritime safety, security, and environmental protection.
Importer of Record
The entity or individual legally responsible for complying with U.S. import laws and regulations.
LCL (Less Than Container Load) :
A shipment of cargo that does not fill a container and is merged with cargo for more than one consignee of from more than one shipper.
Letter of Credit (L/C)
Financial document issued by a bank at the request of the consignee guaranteeing payment to the shipper for cargo if certain terms and conditions are fulfilled. Normally it contains a brief description of the goods, documents required, a shipping date, and an expiration date after which payment will no longer be made. (Formal term: Documentary credit or documentary letter of credit).
Manifest :
A list of all cargo loaded on board a vessel. Entire listing of all cargo on board a vessel required by the carrier, customs, and the coast guard.
Minimum Bill of Lading
Ocean bill, the minimum amount one can charge per individual bill of lading.
Negotiable Bill of Lading :
Original Bill of Lading endorsed by shipper that is used for negotiating documents with bank.
Net Weight
The weight of the commodity only.
Neutral Body
Neutral party used to police the practices of members of the conference.
NVOCC (Non Vessel Operating Common Carrier)
A firm that offers the same services as an ocean carrier, but which does not own or operate a vessel. NVOCCs usually act as consolidators, accepting small shipments (LCL) and consolidating them into full container loads. They then act as a shipper, tendering the containers to ocean common carriers. Also known under deregulation as an Ocean Transportation Intermediary (OTI).
Original Bill of Lading (OBL) :
When an original bill of lading is issued, the consignee needs to present the properly endorsed original paper document to the destination agent in order to secure release.
POD :
Port of Discharge. Also an acronym for Proof of Delivery.
POR
Port of Origin.
POL
Port of Loading.
Power of authority
Exporters and Importers authorize Freight Forwarders and Customs Brokers to act as their agents, for export control and Customs purposes, with this document. Completed Power of Attorney documents, however, do not relieve importers or exporters from liability to the U.S. Government in the event of export control or entry errors.
Seals on Containers :
Attached to locking device on container to prevent pilferage and to certify no tampering; made of steel by customs or carrier.
Shipper’s Export Declaration Form (SED)
Previously, a mandatory customs document required for most commercial shipments leaving the United States valued at over $2,500. The SED has been replaced by the Electronic Export Information (EEI), a digital process that streamlines export compliance.
Shipper’s Letter of Instruction (SLI)
A document that provides detailed instructions to a freight forwarder for shipping a shipment. The SLI includes information such as the shipper and consignee details, shipment description, export control information (if applicable), freight charges, and special handling instructions.
SL&C (Shippers Load and Count)
Shipments loaded and sealed by shippers and not checked or verified by the carriers.
Special Customs Invoice
A country-of-import required document, similar to a commercial invoice that contains particular information required for entry of goods into that country. Special Customs Invoices often itemize freight and insurance charges when a country based import duties on the landed cost of a shipment.
Stevedore
A person having charge the operation of loading and unloading vessels and other terminal activities.
Sustainable Aviation Fuel
A document that provides detailed instructions to a freight forwarder for shipping a shipment. The SLI includes information such as the shipper and consignee details, shipment description, export control information (if applicable), freight charges, and special handling instructions.
Tare Weight :
The weight of a container and the material used for packing exclusive of cargo. When applied to a loaded truck, the weight of the truck exclusive of its contents.
Tariff
A schedule of charges, rules and regulations, which must be followed. This can be for transportation charges, loading and unloading charges, and import duties, etc.
TEU (Twenty-foot Equivalent Unit)
A 20′ container is a TEU. Used to measure a vessel’s capacity.
THC (Terminal Handling Charge)
Charge assessed by terminal for loading, unloading, fork lifts, document fees, and other assessments for import and export cargo.
Third Party Billing
The designated payer of an invoice other than the shipper or the consignee.
Transmittal Letter
Contains a list of the particulars of the shipment, a record of the documents being transmitted, and instructions for disposition of these documents. Any special instructions are also included.
Transshipment
The transfer of cargo from one carrier to another. TRC – Terminal Receiving Charge.
TSA Known Shipper
A program that allows trusted entities to transport goods more efficiently and securely using both passenger and cargo aircraft. By meeting stringent security requirements, including background checks and facility inspections, shippers can obtain Transportation Security Administration (TSA) Known Shipper status.
Unit Loading Devices (ULDs)
Standardized containers or pallets used in air freight to transport cargo efficiently and securely. They reduce handling time, minimize damage, and improve security. Airlines provide ULDs to shippers, and cargo can be loaded directly onto pallets or into closed containers.
W/M :
Weight or Measure.
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