+92 333 4545554 nisar@express-shipping.com DHA Lahore, Pakistan
Shipping & Freight Terms

Logistics Glossary A-Z.

Understand the language of freight forwarding. Search for any term or browse by letter.

AWB
Air Waybill — A document of carriage issued by an airline or its agent that serves as a receipt for shipper goods, a contract of carriage, and a freight bill.
Bill of Lading (BL)
A document issued by a carrier to acknowledge receipt of cargo for shipment. Acts as a receipt, contract of carriage, and document of title.
BAF
Bunker Adjustment Factor — A surcharge added to ocean freight rates to compensate for fluctuations in fuel costs.
Breakbulk
General cargo loaded individually (not in containers) — used for oversized or irregularly-shaped items.
CFS
Container Freight Station — A facility where LCL cargo is consolidated for export or deconsolidated for import.
CBM
Cubic Meter — A unit of volume used in freight calculations. 1 CBM = 1m × 1m × 1m. Air freight uses 1 CBM = 167 kg volumetric weight.
CIF
Cost, Insurance, Freight — An Incoterm where the seller pays for cost, insurance, and freight to the named destination port.
Commercial Invoice
A bill for the goods sold, used in international trade for customs clearance and determining duty/tax.
Consignee
The party named as the receiver of goods on a bill of lading or other transport document.
Consolidation
Combining multiple smaller shipments from different shippers into one full container or air ULD.
Container
A standardized steel box used for intermodal transport — common sizes are 20', 40', and 40' high-cube.
Customs Bond
A financial guarantee that import duties and taxes will be paid to customs authorities.
Demurrage
Charges levied by a carrier for failure to load or unload a ship/container within the agreed time.
Detention
Charges incurred when a container is held beyond the agreed free time outside the terminal.
DDP
Delivered Duty Paid — An Incoterm where the seller delivers goods to the buyer, cleared of all duties at destination.
EXW
Ex Works — An Incoterm where the seller makes goods available at their premises; the buyer handles all transport.
ETA
Estimated Time of Arrival.
ETD
Estimated Time of Departure.
FCL
Full Container Load — A shipment that occupies a full container, used by a single shipper.
FOB
Free On Board — An Incoterm where the seller delivers goods on board the vessel at the named port of shipment.
Forwarder
A company that organizes shipments for individuals or corporations to get goods from manufacturer to market.
FCA
Free Carrier — An Incoterm where the seller delivers goods to a carrier nominated by the buyer at a named place.
FIATA
International Federation of Freight Forwarders Associations — global trade body for freight forwarders.
Gross Weight
Total weight of the cargo including packaging.
HAWB
House Air Waybill — A bill issued by a freight forwarder to its customer, used in air consolidations.
Hazmat / DG
Hazardous Materials / Dangerous Goods — cargo that poses risks during transport, regulated by IATA, IMO, ADR.
HBL
House Bill of Lading — Issued by the freight forwarder to the actual shipper.
HS Code
Harmonized System Code — A standardized numerical method of classifying traded products.
IATA
International Air Transport Association — global trade body governing air transport standards.
Incoterms
International Commercial Terms — standardized trade terms published by ICC defining responsibilities of buyers and sellers.
Intermodal
Movement of cargo using two or more modes of transport (e.g., truck + rail + ship).
Inland Haulage
Trucking or rail movement between port and inland location.
Just-in-Time (JIT)
An inventory strategy where materials arrive exactly when needed for production — minimizes holding costs.
Kilogram (kg)
Standard unit of weight used in freight charging.
Letter of Credit (L/C)
A bank-issued document guaranteeing payment to a seller upon meeting specified conditions.
LCL
Less than Container Load — A shipment too small to fill a full container; consolidated with other shipments.
Lift-on/Lift-off (LO/LO)
Containerized cargo loading method using cranes.
Manifest
A document listing the cargo carried by a vessel, aircraft, or truck.
MBL
Master Bill of Lading — Issued by the actual ocean carrier to the freight forwarder (NVOCC).
Multimodal Transport
Movement of cargo using a single contract but multiple transport modes.
NVOCC
Non-Vessel Operating Common Carrier — Issues bills of lading without owning vessels; sub-contracts space from actual carriers.
On-Carriage
Inland transport after the cargo arrives at the destination port.
Open Top Container
Container without a solid roof — used for tall or top-loaded cargo.
Origin
The place where a shipment begins its journey.
Pallet
A flat platform on which goods are stacked, allowing forklift handling. Standard sizes vary by region.
Phytosanitary Certificate
An official document certifying that plants or plant products are free from pests and disease.
Pickup
Collection of cargo from the shipper's premises by the freight forwarder.
Pre-Carriage
Inland transport from shipper to the port of loading.
Quotation
A formal offer of freight rates and services from the forwarder to the shipper.
Reefer
Refrigerated container or vehicle — maintains a controlled temperature for sensitive cargo.
Roll-on/Roll-off (RO/RO)
Cargo loading method for vehicles that drive on/off the vessel — used for cars, trucks, trailers.
Shipper
The party sending the cargo — often the exporter or seller.
Shipping Line
An ocean carrier that operates vessels and offers container shipping services.
SOC
Shipper Owned Container — A container owned by the shipper, not the shipping line.
Stuffing
The process of loading cargo into a container.
Surcharge
An additional fee added to base freight rates (e.g., BAF, CAF, peak season).
TEU
Twenty-foot Equivalent Unit — A unit of capacity equal to one 20' container. A 40' container = 2 TEU.
THC
Terminal Handling Charges — Fees charged by the port/terminal for handling containers.
Through Bill of Lading
A single B/L covering multiple modes of transport from origin to destination.
Transit Time
The time it takes for cargo to move from origin to destination.
Transshipment
Transfer of cargo from one vessel/vehicle to another en route to the final destination.
ULD
Unit Load Device — A pallet or container used in air cargo to consolidate shipments.
Vessel
A ship used to transport cargo by sea.
Volumetric Weight
A pricing technique that uses cargo volume to calculate billable weight when volume exceeds gross weight.
Warehouse Receipt
A document issued by a warehouse acknowledging receipt of stored goods.
WeBOC
Web-Based One Customs — Pakistan Customs' electronic customs clearance system.
Xerography
(In logistics context) refers to scanned/photocopied documentation accepted for some declarations.
Yard
An outdoor area where containers are stored, stacked, or transferred between modes.
Zone
A defined geographic area used for freight rating and customs purposes.