Reference

Shipping & freight glossary

Every shipping term you'll meet, in plain English.

B

BOL (Bill of Lading): A legal document between a shipper and carrier detailing the type, quantity, and destination of goods. It serves as a receipt, a contract of carriage, and a document of title.
Brokerage fee: A charge from a customs broker for preparing and submitting the paperwork to clear goods through customs on your behalf.

CIF (Cost, Insurance, Freight): An Incoterm where the seller pays the cost, insurance, and freight to bring goods to the destination port. Also the standard valuation base customs uses to assess duty.
Consignee: The person or company receiving a shipment — the "ship to" party on the label and customs paperwork.
Consignor / Shipper: The person or company sending a shipment — the "ship from" party.
Customs broker: A licensed professional who clears goods through customs, classifies them under the correct HS code, and pays duties on the importer's behalf.

DAP (Delivered At Place): An Incoterm where the seller delivers goods to a named destination but the buyer is responsible for import duty and taxes.
DDP (Delivered Duty Paid): An Incoterm where the seller bears all costs including import duty and taxes — the buyer pays nothing on delivery. Best for surprise-free DTC e-commerce.
De minimis: The value threshold below which a shipment can enter a country duty- and tax-free. The US threshold is $800; the EU is €150.
Demurrage: A penalty charged when a full container sits at a port terminal longer than the allowed free time, before it is picked up.
Detention: A penalty charged when a shipper or consignee keeps a carrier's container or chassis longer than the allowed free time, after pickup.
Dimensional (DIM) weight: A pricing technique where carriers charge by volume rather than actual weight for light, bulky packages. Calculated as length × width × height ÷ a DIM divisor.
Drayage: The short-distance trucking of a container, typically between a port and a nearby warehouse or rail terminal.

EORI number: An Economic Operators Registration and Identification number, required to import or export goods in the EU and UK.

FCL (Full Container Load): Ocean freight where you book an entire container exclusively for your goods.
Freight class (NMFC): A standardized classification (50–500) used to price LTL freight based on density, stowability, handling, and liability.
Freight forwarder: A company that arranges shipping on behalf of others — booking carriers, handling customs, and coordinating multi-modal moves.
FTL (Full Truckload): Road freight where your shipment fills, or is large enough to warrant, an entire truck — no sharing with other shippers.

HS code (Harmonized System): A standardized numeric code that classifies traded products. Customs authorities use it to determine the duty rate on imported goods.

Incoterms: Internationally recognized rules (DDP, DAP, FOB, EXW, CIF, etc.) that define who is responsible for cost, risk, and insurance at each stage of a shipment.
IOSS (Import One-Stop Shop): An EU scheme that lets sellers collect VAT at checkout for low-value (≤€150) consignments, simplifying clearance.
ISF (Importer Security Filing): A US Customs filing (also called "10+2") required at least 24 hours before an ocean shipment is loaded toward the US.

LCL (Less than Container Load): Ocean freight where your goods share a container with other shippers' cargo because they don't fill a full one.
LTL (Less than Truckload): Road freight where your shipment shares trailer space with other shippers' freight — you pay only for the portion you use.

Manifest: A document listing all the cargo carried on a vessel, aircraft, or truck.
MPF (Merchandise Processing Fee): A US Customs fee on imports, calculated as a small percentage of the shipment value, with a minimum and maximum amount.

NVOCC: A Non-Vessel Operating Common Carrier — a company that consolidates freight and issues its own bills of lading without owning ships.

OFAC screening: Checking the parties to a shipment against the US Treasury's sanctions lists to avoid shipping to denied or sanctioned persons.

Pick and pack: The fulfillment process of selecting items from inventory and packing them into a shipment.
Proof of Delivery (POD): Confirmation — often a signature or photo — that a shipment was delivered to the consignee.

Rate shopping: Comparing live prices from multiple carriers for the same shipment to choose the cheapest or fastest option.
RMA (Return Merchandise Authorization): A number and approval issued to a customer so they can return an item, used to track the return through to refund or replacement.

Section 321: A US provision allowing one shipment per person per day valued under $800 to enter duty-free — heavily used for cross-border e-commerce.
Surcharge (fuel): A variable fee carriers add to base rates to offset fluctuating fuel prices, usually updated weekly.

Tare weight: The weight of an empty container or packaging, excluding the goods inside.
Tariff: A tax imposed by a government on imported goods, usually a percentage of the goods' value, determined by HS code.
TEU (Twenty-foot Equivalent Unit): A unit of cargo capacity equal to one 20-foot container. A 40-foot container is 2 TEU.
Tracking number: A unique identifier assigned to a shipment that lets the shipper and consignee follow its progress through the carrier network.

VAT (Value Added Tax): A consumption tax charged on goods in many countries, including at import. The rate varies by country (e.g. 20% in the UK).

Waybill: A document issued by a carrier giving details of a shipment — similar to a bill of lading but not a document of title.