Freight Glossary
Shipping, Customs & Trade Terms Explained Simply
Freight and international trade come with hundreds of technical terms and abbreviations.
This glossary provides a practical reference to commonly used terms across sea freight, air freight, land transportation, customs clearance, shipping documents, and international trade.
Use the sections below to quickly understand the terminology you may encounter when planning or managing an international shipment.
Sea Freight Terms
Understand the essential terminology used in ocean shipping, container transportation, ports, and sea freight documentation.
[IMAGE — Sea Freight / Container Vessel / Port Operations]
| Term | Abbreviation | Meaning |
|---|---|---|
| Bill of Lading | B/L | Transport document issued for a sea freight shipment |
| Original Bill of Lading | OBL | Original negotiable version of a Bill of Lading |
| Master Bill of Lading | MBL | Bill of Lading issued by the ocean carrier |
| House Bill of Lading | HBL | Bill of Lading issued by a freight forwarder or NVOCC |
| Full Container Load | FCL | Shipment using a full container |
| Less than Container Load | LCL | Cargo consolidated with other shipments in a shared container |
| Port of Loading | POL | Port where cargo is loaded for the main sea journey |
| Port of Discharge | POD | Port where cargo is discharged from the vessel |
| Demurrage | — | Charges that may apply when a container remains at the terminal beyond the allowed free time |
| Detention | — | Charges that may apply when a container is kept outside the terminal beyond the allowed free time |
| Free Time | — | Period during which applicable demurrage or detention charges do not accrue |
| Telex Release | — | Electronic instruction allowing cargo release without presentation of an original paper B/L, where applicable |
| Verified Gross Mass | VGM | Verified gross mass of a packed container required before vessel loading |
| Reefer Container | RF | Temperature-controlled container used for temperature-sensitive cargo |
| Dry Container | — | Standard container used for general non-temperature-controlled cargo |
| Container Yard | CY | Terminal area where containers are received, stored, and handled |
| Estimated Time of Departure | ETD | Expected date or time of departure |
| Estimated Time of Arrival | ETA | Expected date or time of arrival |
About Sea Freight Terms
Sea freight terminology appears throughout the shipping process, from booking and container selection to documentation, port handling, and cargo release.
Understanding these terms can help shippers communicate more clearly with carriers, freight forwarders, suppliers, and consignees.
Explore: Sea Freight Services · FCL Shipping · LCL Shipping · Reefer Shipping
Air Freight Terms
Common terminology used in air cargo pricing, documentation, handling, routing, and international airport operations.
[IMAGE — Air Cargo / Cargo Aircraft / Airport Handling]
| Term | Abbreviation | Meaning |
|---|---|---|
| Air Waybill | AWB | Transport document used for an air cargo shipment |
| Master Air Waybill | MAWB | Air Waybill issued by the airline or carrier |
| House Air Waybill | HAWB | Air Waybill issued by a freight forwarder |
| Chargeable Weight | — | Weight used to calculate air freight charges |
| Gross Weight | — | Actual physical weight of the shipment |
| Volumetric Weight | — | Calculated weight based on the dimensions of the shipment |
| Dangerous Goods | DG | Cargo subject to specific dangerous-goods transport requirements |
| Transit Time | — | Time required for cargo to move between origin and destination |
| Direct Flight | — | Air cargo movement reaching the destination without an intermediate flight connection |
| Transshipment | — | Transfer of cargo between flights or transport stages before reaching the final destination |
| Airport of Departure | — | Airport from which the air shipment departs |
| Airport of Destination | — | Airport where the air shipment arrives |
About Air Freight Terms
Air freight terminology is particularly important because shipment dimensions, weight calculations, routing, handling requirements, and cargo classification can directly affect transportation costs and transit planning.
Explore: Air Freight Services
Land Freight Terms
Key terms used for international road freight and cross-border cargo transportation by truck.
[IMAGE — International Truck / Cross-Border Land Freight]
| Term | Abbreviation | Meaning |
|---|---|---|
| Land Freight | — | Transportation of cargo by road between countries or regions |
| Cross-Border Transport | — | Cargo transportation across an international land border |
| Full Truck Load | FTL | Shipment using the capacity of a dedicated truck |
| Less than Truck Load | LTL | Shipment sharing truck capacity with other cargo |
| Transit Time | — | Estimated transportation time between origin and destination |
| Border Clearance | — | Procedures required for cargo to cross an international border |
| TIR | TIR | International customs transit system used for eligible road freight movements |
| CMR Consignment Note | CMR | Transport document commonly used in international road freight |
| ADR | ADR | European framework governing the international carriage of dangerous goods by road |
| Reefer Truck | — | Temperature-controlled truck used for sensitive cargo |
| Flatbed Truck | — | Open-platform truck used for cargo requiring specialized loading or dimensions |
| Heavy Haulage | — | Specialized road transportation for exceptionally heavy or oversized cargo |
About Land Freight Terms
International land freight involves more than trucking. Border procedures, transport documentation, vehicle selection, cargo characteristics, and cross-border requirements can all affect the movement.
Explore: Land Freight ServiceInland Transportation Terms
Inland Transportation Terms
Terminology related to domestic cargo movement, pickup, delivery, port connections, and last-mile logistics.
[IMAGE — Truck Loading / Warehouse-to-Port Transportation]
| Term | Abbreviation | Meaning |
|---|---|---|
| Inland Transportation | — | Movement of cargo within a country by road or other inland transport modes |
| Trucking | — | Transportation of cargo by road |
| Door-to-Door | — | Transportation from the shipper's location to the final delivery location |
| Door-to-Port | — | Transportation from the shipper's location to the designated port |
| Port-to-Door | — | Transportation from the arrival port to the final delivery location |
| Last-Mile Delivery | — | Final transportation stage to the consignee or delivery point |
| Pre-Carriage | — | Inland transportation before the main international transport leg |
| On-Carriage | — | Inland transportation after the main international transport leg |
| Heavy Cargo | — | Cargo requiring special handling because of its weight |
| Oversized Cargo | OOG | Cargo exceeding standard transportation or container dimensions |
| Project Cargo | — | Large, heavy, complex, or specialized cargo transported as part of a project |
| Reefer Transport | — | Temperature-controlled inland transportation |
About Inland Transportation Terms
Inland transportation connects factories, warehouses, ports, airports, distribution centers, and final delivery locations.
Understanding these terms helps clarify which part of the shipment journey is being arranged and where responsibility for transportation begins or ends.
Explore: Inland Transportation Services
Customs & Clearance Terms
Important terminology used in customs procedures, cargo classification, documentation, inspections, and import or export clearance.
[IMAGE — Customs Inspection / Cargo Clearance / Port Documentation]
| Term | Abbreviation | Meaning |
|---|---|---|
| Customs Clearance | — | Process of completing customs requirements for imported or exported goods |
| Advance Cargo Information | ACI | System for submitting required shipment information before cargo is shipped |
| ACID Number | ACID | Unique shipment identification number issued through Egypt's ACI process |
| Certificate of Origin | COO | Document identifying the country of origin of goods |
| Harmonized System Code | HS Code | International product classification code used for customs purposes |
| Import Declaration | — | Customs declaration submitted for imported goods |
| Export Declaration | — | Customs declaration submitted for exported goods |
| Customs Duty | — | Customs charge that may apply to goods according to applicable tariff rules |
| Customs Inspection | — | Examination of cargo or documents by customs authorities |
| Customs Valuation | — | Process used to determine the customs value of goods |
| Customs Broker | — | Authorized party that assists with customs procedures and declarations |
| Bonded Warehouse | — | Customs-controlled facility where eligible goods may be stored under customs procedures |
| Cargo Release | — | Authorization permitting goods to be released after applicable requirements are completed |
About Customs Terms
Customs terminology can directly affect documentation, classification, duties, inspections, and cargo release.
Requirements vary according to the shipment, commodity, origin, destination, and applicable customs regulations.
Explore: Customs Clearance in Egypt
Shipping Documents & Commercial Terms
Common documents and commercial terminology used between shippers, buyers, sellers, carriers, freight forwarders, banks, and insurers.
[IMAGE — Shipping Documents / Commercial Invoice / Cargo Documentation]
| Term | Abbreviation | Meaning |
|---|---|---|
| Commercial Invoice | CI | Seller-issued document showing the goods, transaction value, and commercial details |
| Packing List | PL | Document detailing shipment contents, packages, weights, and dimensions |
| Purchase Order | PO | Buyer's formal order for goods or services |
| Sales Contract | — | Agreement defining commercial terms between buyer and seller |
| Letter of Credit | L/C | Bank-supported payment arrangement subject to specified terms and documents |
| Letter of Indemnity | LOI | Document under which one party agrees to indemnify another against specified liabilities |
| Freight Contract | — | Agreement covering transportation services and related commercial terms |
| Insurance Policy | — | Contract defining applicable insurance coverage and conditions |
| Cargo Claim | — | Formal request for compensation relating to eligible cargo loss, damage, or another covered event |
| Shipper | — | Party identified as sending or tendering cargo for transportation |
| Consignee | — | Party identified to receive the cargo |
| Freight Forwarder | — | Logistics provider that arranges transportation and related freight services |
| Carrier | — | Company responsible for physically transporting cargo under a transport contract |
About Shipping Documents & Commercial Terms
International shipments involve several parties and documents.
Understanding their roles can help reduce documentation errors and clarify responsibilities throughout the shipment.
Incoterms® 2020
Incoterms® rules are published by the International Chamber of Commerce (ICC) and define important responsibilities between buyers and sellers in international trade.
They help clarify the allocation of transportation costs, delivery obligations, and the point at which risk transfers between the parties.
[IMAGE — International Trade / Buyer & Seller / Global Cargo]
Rules for Any Mode or Modes of Transport
| Term | Abbreviation | Simple Meaning |
|---|---|---|
| Ex Works | EXW | Seller makes the goods available at the agreed location |
| Free Carrier | FCA | Seller delivers the goods to the buyer's nominated carrier at the agreed place |
| Carriage Paid To | CPT | Seller pays carriage to the named destination while risk transfers earlier when goods are delivered to the carrier |
| Carriage and Insurance Paid To | CIP | Similar to CPT, with the seller also arranging the required insurance |
| Delivered At Place | DAP | Seller delivers the goods at the named destination ready for unloading |
| Delivered At Place Unloaded | DPU | Seller delivers and unloads the goods at the named destination |
| Delivered Duty Paid | DDP | Seller delivers the goods cleared for import and bears applicable import duties and taxes |
Rules for Sea and Inland Waterway Transport
| Term | Abbreviation | Simple Meaning |
|---|---|---|
| Free Alongside Ship | FAS | Seller delivers the goods alongside the vessel at the named port of shipment |
| Free On Board | FOB | Seller delivers the goods on board the vessel at the named port of shipment |
| Cost and Freight | CFR | Seller pays freight to the destination port while risk transfers when goods are delivered on board at origin |
| Cost, Insurance and Freight | CIF | Similar to CFR, with the seller also arranging the required marine insurance |
About Incoterms®
Incoterms® 2020 contains 11 rules.
The appropriate rule depends on factors including the transport mode, agreed delivery point, commercial arrangement, and allocation of costs and risks between buyer and seller.
Incoterms® rules do not replace the sales contract and do not determine every aspect of an international trade transaction.