Glossary

A

Actual Time of Arrival (ATA)

Refers to the precise moment a flight or vessel arrives at its destination. May also mean "Airport-to-Airport" or formerly "Air Transport Association of America."

Actual Time of Departure (ATD)

The exact moment cargo or transport leaves the origin point.

Air Waybill (AWB)

A document issued by an airline or its agent serving as: A receipt showing goods have been accepted for transport. A non-negotiable contract of carriage under specified conditions. Types: MAWB (Master Air Waybill): Issued by airlines, identified by IATA or U.S. airline codes. HAWB (House Air Waybill): Issued by freight forwarders for sub-shipments within a consolidated load.

Aircraft Container / Unit Load Device (ULD)

A standardized container or pallet used to load, restrain, and transport air cargo. Integrates with aircraft handling systems to ensure safety and efficiency.

Allotment

A block of reserved space on a flight or vessel held by an airline or liner for a forwarder or shipper. Ensures capacity availability.

All Risk (Insurance Coverage)

Broad form of marine or freight insurance covering loss or damage to cargo, except exclusions such as war, strikes, riots, or inherent defects.

Alongside

Delivery location is at the side of the vessel—cargo placed on dock/lighter adjacent to ship's tackle. Under Incoterms like FAS (Free Alongside Ship), this is the seller's responsibility point.

B

BAF (Bunker Adjustment Factor)

A surcharge applied by carriers to offset bunker fuel cost fluctuations.

Bill of Lading (B/L)

A legal document between shipper and carrier that: Acts as a receipt for shipped goods. Serves as a contract of carriage. In negotiable form, can serve as title to the goods. Types include straight (non-negotiable) and order/negotiable B/Ls.

Bonded Warehouse

A customs-authorized facility allowing storage of imported goods with deferred duty/tax payments. Re-exports may waive duties.

Break Bulk (B/B)

Process of unloading cargo not in containers and dividing it for consignees. Also refers to piece-by-piece freight.

Breakbulk Vessel

A ship designed to carry non-containerised freight (e.g. crates, machinery) usually equipped with its own loading/unloading gear.

C

CAF (Currency Adjustment Factor)

Surcharge to account for foreign currency exchange fluctuations in freight/service quotes.

Carnet

Customs document allowing temporary import of goods without duty payment under re-exportation conditions (e.g. trade fairs, exhibitions).

Carrier Intermediary / Non-Vessel Operating Common Carrier (NVOCC)

A company contracting with shippers and leasing space with full-vessel operators, issuing its own Bill of Lading.

Clean Bill of Lading

States cargo was received in apparent good condition without irregularities.

Combi Aircraft

Aircraft configured to carry both passengers and cargo on the same main deck with partitions.

Commercial Invoice

Invoice from seller to buyer listing description, quantity, price, terms, and shipment info. Used by customs for duties/taxes.

Consignee

The party to whom goods are consigned; the receiver named in shipping documents.

Consignment

A batch of goods sent by consignor to consignee. Ownership/responsibility depends on contract/shipment terms.

Consolidation

Combining multiple smaller consignments into a single shipment (often under one master document). Reduces costs.

Cost & Freight (CFR / C&F)

Seller pays cost and freight to destination port. Buyer assumes risk once goods are loaded; insurance not included.

Cost, Insurance & Freight (CIF)

Seller covers cost, insurance, and freight to destination port. Risk transfers to buyer once goods are on board. This Incoterm is for ocean freight and not air freight.

Customs / Customs Authorities

Government agencies regulating cross-border trade, collecting tariffs, enforcing laws, inspecting goods.

Customs Broker

Licensed professional/firm handling import/export clearance, documentation, licenses, and duties on behalf of shippers/consignees.

Customs Clearance

Process of submitting documents, paying duties/taxes, and completing inspections to release goods from customs.

Customs Invoice

Required by some countries to verify value, quantity, and nature of imports, often in addition to commercial invoice.

D

Dangerous Goods (DG)

Hazardous cargo (flammable, toxic, explosive). Must comply with IATA (air) or IMO (sea) packaging, labeling, and handling rules. Requires a Dangerous Goods Declaration (DGD).

DDP (Delivered Duty Paid)

Seller covers all costs, risks, duties, and customs formalities to deliver to buyer's premises (highest seller obligation).

DDU (Delivered Duty Unpaid)

Seller delivers goods but does not pay import duties/taxes; buyer handles customs clearance.

Delivery Instructions

Instructions from shipper/forwarder on how, where, and to whom goods should be delivered.

Demurrage

Charges for keeping cargo in port beyond free time. Distinct from Detention (charges for containers held outside port beyond free period).

Dimensional Weight (Volumetric Weight)

Billing method based on volume when greater than actual weight. Common in air freight.

Direct Ship

Cargo shipped without consolidation, under direct MAWB or B/L.

Drawback

Refund of duties on imports if re-exported or used in exported products.

Duty

Government tax on imports (sometimes exports), based on value, weight, or quantity.

E

EDI (Electronic Data Interchange)

Computer-to-computer exchange of shipping, customs, and logistics data.

ETA (Estimated Time of Arrival)

Projected time shipment is expected to arrive at destination.

ETD (Estimated Time of Departure)

Projected time shipment departs from origin. Includes carrier cut-off times.

EXW (Ex Works)

INCOTERM: seller makes goods available at premises, buyer assumes all risks/costs thereafter.

F

FAS (Free Alongside Ship)

Seller delivers goods alongside vessel at departure port. Buyer loads and arranges ocean freight/insurance.

FCA (Free Carrier)

Seller delivers goods, cleared for export, to buyer's nominated carrier at named place.

FCL (Full Container Load)

Shipment that fills an entire container. CY to CY = from origin container yard to destination yard.

FEU (Forty-Foot Equivalent Unit)

40-foot container; equals two TEUs.

Flat Rack Containers

Open-side/roof containers for oversized cargo or heavy machinery.

FOB (Free On Board)

Seller covers cost until goods are loaded; buyer assumes risk thereafter.

Freight Carriage Paid To (CPT)

Seller pays freight to nominated place; risk transfers when handed to first carrier.

Freight Forwarder

Company arranging logistics and transport for exporters/importers, including documentation and customs compliance.

Freight for All Kinds (FAK)

Simplified container pricing classification for mixed cargo types.

G

Gateway

Key airport/seaport hub where cargo is consolidated, deconsolidated, or cleared.

Harmonized System (HS Code)

International classification standard for traded products used by customs.

I

IATA (International Air Transport Association)

Global airline trade association setting cargo, ticketing, and safety standards.

Import Certificate / Import License

Government permit required for importing certain goods.

Import Restrictions

Government regulations limiting or restricting imports (quotas, embargoes, permits).

Incoterms (Incoterms 2020)

Standardized global trade terms (ICC) defining buyer/seller responsibilities, risks, and costs.

Insurance Certificate

Proof of arranged cargo insurance.

Integrated Carriers

Providers offering multi-modal, end-to-end transport (e.g. FedEx, UPS).

Intermediate Consignee

An intermediary in transport chain, not the final recipient.

Intermodal Transport

Transport using multiple modes (sea, air, truck, rail) under unified documentation.

Irrevocable Letter of Credit (L/C)

Bank guarantee ensuring seller payment if conditions are met; cannot be revoked without all parties' consent.

L

LCL (Less Than Container Load)

Shipment not filling a full container; consolidated with others.

LD3

Standardized air cargo container type used in lower-deck aircraft compartments.

Letter of Credit (L/C)

Bank financial instrument guaranteeing seller payment when conditions are met.

Letter of Indemnity (LOI)

Legal guarantee allowing goods release without original documents under certain conditions.

Lower Deck

Aircraft/vessel compartment below the main deck for cargo.

M

Main Deck

Primary cargo/passenger deck of an aircraft or vessel.

Marine Cargo Insurance

Insurance covering loss/damage for sea-transported goods (fire, sinking, piracy, etc.).

N

NVD (No Value Declared)

Shipper declares no value for insurance/customs, limiting liability but reducing protection.

P

Packing List

Detailed list of shipment contents (weights, dimensions, packaging type). Used by carriers and customs.

Pier Pass / Port Congestion Surcharge

Fee levied during peak congestion or limited port operation hours.

POD (Proof of Delivery)

Acknowledgment of delivery, usually signed or electronically confirmed.

Pro Forma Invoice

Pre-shipment invoice showing goods, quantities, value, and terms. Used for customs and L/C applications.

Project Cargo

Oversized, heavy, or specialized cargo requiring unique handling (e.g. turbines).

R

Roll-On / Roll-Off (RORO)

Vessels designed for wheeled cargo to roll on/off ramps.

S

Shipping Mark

Symbols/labels on cargo for identification, routing, and handling.

Shipping Weight

Gross weight of goods including packaging and pallets.

T

TACT (The Air Cargo Tariff)

Tariff book of air cargo rates, rules, and regulations.

Tare Weight

Weight of empty container or packaging.

Temporary Importation Under Bond (TIB)

Duty-free importation with re-export requirement guaranteed by a bond.

Through Bill of Lading

Covers entire carriage from origin to final destination, across modes.

Transshipment

Transfer of goods from one vessel/carrier to another during transit.

TEU (Twenty-Foot Equivalent Unit)

Standard 20-foot container capacity measure. Two TEUs = one FEU.

U

Ultimate Consignee

Final recipient or buyer of goods.

V

Value for Customs Purposes Only

Declared customs value used for duty assessment, not commercial sale value.

W

War / Strike Clause

Insurance clause covering losses from war, strikes, or related events.

Wharfage

Port operator fees for handling cargo at wharves/docks.

Without Reserve

Indicates an agent/shipper may act without prior approval from head office.