Freight Glossary

General Shipping Terms

Freight:

Goods being transported or the cost of transporting goods.

Consignor:

The party sending the shipment.

Consignee:

The recipient of the shipment.

Bill of Lading (B/L):

A legal document issued by the carrier to acknowledge receipt of cargo; serves as a contract and receipt.

Carrier:

The company that transports the goods.

3PL (Third-Party Logistics):

An outsourced logistics provider that manages part or all of the shipping process.

Fuel Surcharge

An extra shipping fee to offset variable fuel costs, ensuring carriers aren’t impacted by rising fuel prices.

Peak Season Surcharge (PSS)

Pricing strategy employed by carriers to manage the surge in demand during the busiest shipping periods. Reflects the elevated operational costs and capacity constraints faced during peak seasons.

Dunnage

Materials used in shipping to protect, stabilize, and organize goods, preventing damage during transit. Made from wood, plastic, foam, etc.

Logistics:

The detailed coordination of complex operations involving people, facilities, and supplies.

International Shipping Terms

Incoterms:

International commercial terms defined by the ICC that clarify the responsibilities of buyers and sellers in international trade (e.g., FOB, CIF, DDP).

HS Code:

Harmonized System Code used to classify goods for customs and tariffs.

Customs Broker:

A licensed agent who helps clear goods through customs by handling documentation and compliance.

Export License

Serves as a regulatory control, authorizing the outbound shipment of specific goods to designated destinations. This document is crucial for ensuring compliance with national export control laws and international agreements.

Export Declaration (SED/EEI):

A government-required document filed for goods leaving the country.

Import Duty/Tariff:

A tax imposed on goods brought into a country, used by governments to regulate trade, protect domestic industries, or generate revenue.

Demurrage:

A charge applied when cargo stays at a terminal or port beyond the allotted free time.

TEU (Twenty-Foot Equivalent Unit):

A standard unit of cargo capacity used in container shipping.

FCL (Full Container Load):

When one shipper exclusively uses an entire container.

LCL (Less than Container Load):

When multiple shippers share space in one container.

CFS (Container Freight Station):

A facility where LCL shipments are consolidated or deconsolidated.

Breakbulk

Breakbulk is shipping separate large items, not in containers, needing special handling, often used for oversized machinery or vehicles.

Ocean Freight:

The transport of goods by sea, either in containers or bulk.

Domestic Shipping Terms

Drayage:

Short-distance transport of containers (e.g., from port to warehouse).

BOL (Bill of Lading):

Similar to ocean B/L, but used for ground freight; may be straight or negotiable.

Freight Class:

Classification for LTL (Less-than-Truckload) freight based on density, stowability, handling, and liability.

LTL (Less-than-Truckload):

A shipping method for small freight that doesn’t require a full truck.

FTL (Full Truckload):

A shipment that fills an entire truck trailer.

Detention/Per Diem

Fees incurred for use of containers past the agreed upon free time, typically starts upon empty out-gate at origin until load in-gate at origin, then notification of container availability at destination until return of empty at destination.

Accessorial Charges:

Extra fees for services like liftgate use, inside delivery, or reclassification.

POD (Proof of Delivery):

A signed receipt showing delivery was completed.