Shipping glossary · 71 terms

Shipping and freight terms, explained

The words forwarders, carriers and customs use — what each one means for your shipment, in a sentence or two, with a link to where it is explained in full.

A

Air transport condition identification report

In China, a report from an approved testing institution stating whether a chemical, liquid, powder or battery product is dangerous goods for air transport and how it may travel. Airlines and forwarders usually ask for it before accepting such goods.

Air waybillAWB

The transport document for air cargo: a receipt and the contract of carriage, but not a document of title. The airline issues a master air waybill (MAWB) to the forwarder, who issues a house air waybill (HAWB) to each shipper in a consolidation. Its 11-digit number is the tracking number.

Read more: Shipping documents guide

B

Bill of ladingB/L

The sea-freight document issued by the carrier or an NVOCC: a receipt for the goods, evidence of the contract of carriage and, as an original negotiable bill, a document of title the consignee needs to collect the cargo. A sea waybill does the same job without being a document of title.

Read more: Shipping documents guide

Bunker adjustment factorBAF

A surcharge on ocean freight that moves with the price of ship fuel (bunker). Shipping lines revise it regularly, so a quote states whether BAF is included and for which period.

BMSB seasonal measuresBMSB

Australia's biosecurity measures against the brown marmorated stink bug, from 1 September to 30 April: certain goods shipped from target risk countries must be treated before arrival, and the list of countries is reviewed each season.

Bonded warehouse

A warehouse under customs supervision where goods can be stored, and sometimes repacked, without paying import duty until they are released for sale or shipped onward. We offer bonded and transit storage in Hong Kong.

C

CARMCARM

CBSA Assessment and Revenue Management, Canada's system for declaring and paying duties and taxes on imports. A commercial importer registers in the CARM Client Portal with its business number and import account, then delegates access to its customs broker.

Cubic metreCBM

The volume unit for freight: length × width × height in metres, or in centimetres ÷ 1,000,000. One CBM is about 35.3 cubic feet. Sea freight (LCL) is charged per CBM, and air freight converts volume into volumetric weight.

Cost and FreightCFR

An Incoterms® 2020 rule for sea and inland waterway: the seller pays freight to the named port of destination, but risk passes to the buyer once the goods are on board at the port of shipment.

Read more: Incoterms guide

Container freight stationCFS

A warehouse where LCL cargo from several shippers is packed into a shared container at origin, and unpacked (devanned) and released at destination. CFS handling is one reason LCL takes a few days longer than FCL.

Read more: LCL vs FCL guide

China–Australia Free Trade AgreementChAFTA

The trade agreement between China and Australia, in force since 20 December 2015. Goods of Chinese origin can enter Australia at preferential duty rates, mostly free, when the importer has a valid certificate of origin.

Chargeable weight

The weight a carrier bills: the greater of the actual gross weight and the volumetric weight. Light, bulky cartons are charged on volume; dense cargo on actual weight.

Cost, Insurance and FreightCIF

An Incoterms® 2020 rule for sea and inland waterway: like CFR, plus the seller buys minimum insurance cover for the buyer. Risk still passes when the goods are on board at the port of shipment. Many countries also calculate duty on a CIF value.

Read more: Incoterms guide

Carriage and Insurance Paid ToCIP

An Incoterms® 2020 rule for any mode: like CPT, plus the seller insures the goods for the buyer at the broader Institute Cargo Clauses (A) level. Risk still passes at handover to the first carrier.

Read more: Incoterms guide

Certificate of originCO

A document showing the country where goods were made. A general certificate proves origin; a preferential certificate under a free trade agreement can lower or remove import duty in the destination country if the goods meet that agreement's rules.

Commercial invoice

The seller's invoice for the goods: buyer and seller, a description of each item, quantity, unit price, total value, currency, Incoterms rule and country of origin. Customs uses it to value and classify the shipment, so it must match the packing list and the goods.

Read more: Shipping documents guide

Consolidation

Combining goods into one shipment: orders from several suppliers gathered in one warehouse and sent together, or shipments from several shippers grouped by a forwarder into one air or container load.

Carriage Paid ToCPT

An Incoterms® 2020 rule for any mode: the seller pays the carriage to the named destination, but risk passes to the buyer when the goods are handed to the first carrier, often in China.

Read more: Incoterms guide

Customs bond (US)

A guarantee to US Customs and Border Protection that duties, taxes and fees will be paid. Formal entries need one: a single-transaction bond covers one entry, a continuous bond covers all entries for a year.

Customs broker

A licensed agent who prepares and files customs declarations, classifies goods, calculates and pays duties and taxes for the importer or exporter, and deals with customs inspections.

Cut-off

The latest time cargo, documents or data can reach the carrier for a given flight or sailing — for example the port cargo cut-off, the documentation cut-off and the VGM (verified gross mass) cut-off for containers. Missing it moves the cargo to the next departure.

D

Delivered at PlaceDAP

An Incoterms® 2020 rule for any mode: the seller delivers the goods, ready for unloading, at the named place in the destination country. The buyer handles import clearance and pays import duties and taxes.

Read more: Incoterms guide

Delivered Duty PaidDDP

An Incoterms® 2020 rule for any mode: the seller delivers to the named place with import clearance done and import duties and taxes paid, so the buyer gets no separate tax bill. Our China–Europe rail line is priced DDP.

De minimis

A value below which imported goods are exempt from duty, tax or both. Thresholds differ by country and change; the United States, for example, suspended its duty-free de minimis entry for goods from all countries in 2025. Check the destination's current rules before relying on one.

Read more: HS codes & import duty guide

Demurrage

A charge for a container that stays inside the port terminal beyond the free days after discharge, usually per container per day, rising the longer it stays. Prompt customs clearance and pickup avoid it.

Detention

A charge for keeping the carrier's container outside the terminal — at your warehouse — beyond the free time before returning it empty. Some carriers combine demurrage and detention into one free-time allowance.

Dangerous goodsDG

Goods that can endanger people, aircraft or ships in transport, sorted into nine UN hazard classes — lithium batteries are class 9. Air shipments follow the IATA Dangerous Goods Regulations and sea shipments the IMDG Code, with specific packing, labels and paperwork.

Dangerous goods declarationDGD

The shipper's signed declaration that regulated dangerous goods are classified, packed, marked and labelled correctly — required by IATA rules for air and by the IMDG Code for sea. Without it, carriers refuse the cargo.

Door-to-door

A service from pickup at the supplier's address to delivery at the final address, covering both ends of the trip. Whether import duties and taxes are included depends on the terms: DAP leaves them to the buyer, DDP includes them.

Delivered at Place UnloadedDPU

An Incoterms® 2020 rule for any mode: like DAP, but the seller also unloads the goods at the named place. The buyer still handles import clearance and duties.

Read more: Incoterms guide

E

EORI numberEORI

Economic Operators Registration and Identification number: the ID a business needs to import into or export from the EU (issued by a member state) or Great Britain (a GB EORI from HMRC). Customs declarations quote it.

Estimated time of departure / arrivalETD / ETA

The scheduled departure and arrival of a flight, vessel or train. They can move with weather, port congestion or schedule changes, so tracking and your coordinator confirm the actual times.

Ex WorksEXW

An Incoterms® 2020 rule for any mode: the seller only makes the goods available at its premises; the buyer arranges and pays for loading, export clearance, freight, import clearance and duties. Simple for the seller, but it leaves the export declaration to the buyer.

Read more: Incoterms guide

F

Free Alongside ShipFAS

An Incoterms® 2020 rule for sea and inland waterway: the seller clears the goods for export and places them alongside the buyer's vessel at the named port; loading and everything after is the buyer's. Mostly used for bulk and heavy cargo.

Read more: Incoterms guide

Fulfillment by AmazonFBA

Amazon's service that stores sellers' inventory in its fulfillment centers and ships customer orders. Sellers send stock in against a shipment plan, with Amazon's carton labels and packing rules; the leg from the factory to the fulfillment center is often called the first mile (头程).

Free CarrierFCA

An Incoterms® 2020 rule for any mode: the seller clears the goods for export and hands them to the buyer's carrier or forwarder at a named place, such as the seller's premises or the forwarder's warehouse. Often a better fit than FOB for air freight and containers.

Read more: Incoterms guide

Full container loadFCL

Sea freight where one shipper books a whole container — usually 20' or 40' — and pays per container rather than per CBM. It is sealed at loading and opened only at destination.

Read more: LCL vs FCL guide

First mile (头程)

In cross-border e-commerce, the leg from the factory in China to the destination warehouse, such as an Amazon fulfillment center, including export, the main flight or sailing, and import clearance.

Fulfillment Network SKUFNSKU

The barcode Amazon generates for a seller's product in its fulfillment centers, so that seller's units are kept apart from identical products other sellers offer. Every unit carries an FNSKU label unless the product is enrolled to use the manufacturer barcode; sellers print the labels in Seller Central, and suppliers can apply them during packing.

Free On BoardFOB

An Incoterms® 2020 rule for sea and inland waterway: the seller clears the goods for export and loads them on board the buyer's vessel at the named port, such as FOB Shenzhen; risk and further costs pass to the buyer there.

Read more: Incoterms guide

Freight forwarder

A company that organises shipments for importers and exporters: it books space with airlines, shipping lines and trucking firms, arranges pickup, warehousing, documents and customs, and coordinates the trip door to door.

Fuel surchargeFSC

The surcharge air carriers and express couriers add to cover jet fuel costs, per kilogram for air freight or as a percentage of the rate for express. It changes with fuel prices, often weekly or monthly.

G

General rate increaseGRI

An increase in base ocean freight rates that a shipping line announces for a whole trade lane from a set date. Bookings sailing after that date pay the new rate unless the quote fixes the price.

Goods and services taxGST

A consumption tax charged on imports in several countries, collected with duty at the border: 10% in Australia, 15% in New Zealand and 5% federal GST in Canada (some provinces add their own sales tax). Australia and New Zealand calculate it on the goods value plus freight and insurance.

Read more: HS codes & import duty guide

H

HS code

The Harmonized System number that classifies a product for customs. The first six digits are shared by the countries that use the World Customs Organization's system; each country adds digits for its own tariff (for example 10 digits in the US, the UK and China). The code sets the duty rate.

Read more: HS codes & import duty guide

I

Import VAT

Value-added tax charged when goods enter a country, normally on the customs value plus duty. Standard rates include 20% in the UK, 19% in Germany and 21% in the Netherlands. VAT-registered businesses can usually reclaim it.

Read more: HS codes & import duty guide

Incoterms® rules

The International Chamber of Commerce's standard trade terms, currently Incoterms® 2020, that say where the seller delivers, where risk passes and who pays for freight, insurance, export and import clearance. There are 11 rules, from EXW to DDP.

Read more: Incoterms guide

Importer of recordIOR

The party legally responsible for an import: it is named on the customs declaration, makes sure the goods comply with local rules and pays the duties and taxes. Under DDP terms the seller's side takes on this role.

Read more: Incoterms guide

Importer Security FilingISF

Data that US Customs and Border Protection requires for ocean cargo bound for the United States, known as 10+2: the importer files ten data elements at least 24 hours before the cargo is loaded at the foreign port, and the carrier adds two.

Read more: Shipping documents guide

ISPM 15

The international standard for solid wood packaging such as pallets and crates: the wood must be heat-treated or fumigated and carry the IPPC mark, or it can be refused or destroyed at the border. Plywood and other processed wood are exempt.

Read more: Shipping documents guide

L

Last mile

The final delivery from a hub or warehouse in the destination country to the consignee's address. On our air and rail lines it is done by carriers such as UPS, FedEx or DPD.

Less than container loadLCL

Sea freight where your cartons share a container with other shippers' cargo. It is charged per CBM, or per 1,000 kg for heavy cargo (W/M), plus origin and destination charges, and usually beats a full container under about 15 CBM.

Read more: LCL vs FCL guide

M

Magnetism test (磁检)

A measurement of the magnetic field around a packed product, such as speakers or motors, before air shipment. It shows whether the goods can fly as ordinary cargo or must be declared as magnetized material (UN2807) and shielded.

Merchandise processing feeMPF

A US customs fee on imports: 0.3464% of the value on formal entries, at least $34.58 and at most $670.86, on CBP's fee table in October 2026. Sea freight also pays a harbor maintenance fee (HMF) of 0.125%.

Safety data sheetMSDS / SDS

The document describing a product's chemical composition, hazards and safe handling. Forwarders and carriers ask for it for batteries, liquids, powders, cosmetics and chemicals to decide whether, and how, the goods can travel.

N

Non-vessel-operating common carrierNVOCC

An ocean carrier that does not operate ships: it buys container space from shipping lines, issues its own bills of lading to shippers and takes on a carrier's responsibilities. XINTING operates as an NVOCC.

P

Packing list

The document listing what is in each carton or pallet: contents, quantity, net and gross weight, dimensions and marks. Forwarders use it to book space and customs to check the cargo against the invoice.

Read more: Shipping documents guide

Port of loading / port of dischargePOL / POD

The port where the cargo is loaded onto the vessel, such as Yantian or Shekou, and the port where it is unloaded at destination. Both appear on the bill of lading and on sea freight quotes.

Postponed VAT accounting

A UK arrangement that lets VAT-registered businesses account for import VAT on their VAT return instead of paying it when the goods arrive. The importer quotes its VAT registration number on the import declaration; no approval is needed.

Pre-alert

The notice the origin forwarder sends before arrival, with the shipment details and copies of the invoice, packing list and bill of lading or air waybill, so clearance can be prepared in advance.

Read more: Shipping documents guide

Peak season surchargePSS

A surcharge carriers add when demand for space peaks, typically before Western holidays and before Chinese New Year. It applies to sea and air freight and is set by the carrier for each period.

S

Section 301 tariffs

Additional US duties on many goods from China, imposed under Section 301 of the Trade Act of 1974 since 2018 and changed several times since. They come on top of the general duty rate, so check the current list for your HS code.

State of chargeSoC

How full a lithium battery is, as a percentage of its rated capacity. IATA rules require lithium-ion batteries shipped on their own, and from 2026 those packed with equipment, to travel by air at no more than 30%.

T

Telex release

Releasing sea cargo at destination without the original paper bill of lading: the shipper surrenders the originals at origin, and the carrier tells its destination office to release the goods to the consignee. It avoids couriering originals.

Read more: Shipping documents guide

Twenty-foot equivalent unitTEU

The standard measure of container capacity: one 20-foot container is 1 TEU and a 40-foot container is 2 TEU. Ship sizes and port volumes are counted in TEU.

Terminal handling chargeTHC

The charge for handling a container at the port terminal, billed at origin (OTHC) and at destination (DTHC). On a quote it sits among origin and destination charges, separate from the ocean freight.

Read more: LCL vs FCL guide

Transit time

How long a shipment takes. A main-leg time covers only the flight, sailing or train; door-to-door time adds pickup, export, customs at destination and final delivery. Our route pages say which one they quote.

U

UN38.3 testUN38.3

The series of tests in section 38.3 of the UN Manual of Tests and Criteria that lithium cells and batteries must pass before transport — altitude, thermal, vibration, shock, short circuit, impact, overcharge and forced discharge. Carriers ask for the test summary.

V

Verified gross massVGM

The weighed total mass of a packed container — cargo, packing and the container itself — which the shipper must declare before loading under the SOLAS convention. A container without a VGM is not loaded.

Read more: LCL vs FCL guide

Volumetric weight

Volume converted into weight so bulky cargo pays for the space it takes: length × width × height in cm ÷ 6,000 for air freight (167 kg per CBM), or ÷ 5,000 for express (200 kg per CBM).

W

Weight or measurementW/M

How LCL sea freight is charged: on whichever is greater, the volume in CBM or the weight in tonnes (1,000 kg counts as one unit). Two CBM weighing 900 kg pays for 2 units; one CBM weighing 1,500 kg pays for 1.5.

Read more: LCL vs FCL guide

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