A–Z of Shipping Terms: Air, Sea, Rail & Road Freight

A–Z of Shipping Terms: Air, Sea, Rail & Road Freight

A–Z of Shipping Terms: Air, Sea, Rail & Road Freight

Here's an A–Z glossary of essential shipping terms across Air, Sea, Rail, and Road Freight, designed for professionals and businesses navigating logistics and transportation.


A

  • AWB (Air Waybill) – A document issued by an air carrier as a receipt of goods and contract of carriage.

  • ATA Carnet – An international customs document for temporary imports, often used in air and road freight.

  • Arrival Notice – A notification sent by the carrier or agent advising the consignee of the arrival of freight.

B

  • B/L (Bill of Lading) – A legal document between shipper and carrier; serves as a receipt and contract of carriage.

  • Break Bulk – Cargo that must be loaded individually (not in containers), common in ocean and rail shipping.

  • Bunker Adjustment Factor (BAF) – A surcharge to account for fuel price fluctuations in sea freight.

C

  • CFS (Container Freight Station) – A warehouse for consolidation/deconsolidation of container cargo.

  • Chassis – A trailer used for hauling containers via truck (road freight).

  • Consignee – The person or entity to whom goods are being shipped.

D

  • DDP (Delivered Duty Paid) – Seller bears all costs including import duties; popular in Incoterms.

  • Demurrage – Charges for containers left at a terminal beyond the allowed free time.

  • Dispatch – The time cargo is handed over for transit (rail, sea, air, or road).

E

  • EDI (Electronic Data Interchange) – Digital transmission of documents like booking and customs forms.

  • ETD/ETA – Estimated Time of Departure / Arrival.

  • Export Declaration – A document required to legally export goods from a country.

F

  • FOB (Free on Board) – Incoterm where seller delivers goods on board a vessel; buyer handles freight.

  • Freight Forwarder – A logistics specialist who arranges cargo movement for shippers.

  • Flat Rack Container – Open-sided container used for oversized cargo in sea and rail freight.

G

  • GRI (General Rate Increase) – Adjustment in base shipping rates, usually in ocean freight.

  • Gateway Port – A major port of entry for importing/exporting goods.

H

  • Harmonized Code (HS Code) – An international system for classifying goods for customs.

  • HAWB (House Air Waybill) – Issued by a freight forwarder for air shipments under a master air waybill.

  • Hub – A central location where cargo is received, sorted, and forwarded.

I

  • Incoterms – Standard trade terms (e.g., EXW, CIF) defining buyer/seller responsibilities.

  • Inland Haulage – Transport of cargo from port to destination by road or rail.

  • ISO Container – A standardized shipping container used globally.

J

  • JIT (Just in Time) – Inventory system that requires precise shipping schedules to minimize stockholding.

K

  • Kilometer-Based Charges – Often used in road and rail transport pricing.

L

  • LCL (Less than Container Load) – Shared container space; used when shipments don’t fill a full container.

  • Line Haul – The movement of freight between two major cities or terminals.

  • Load Plan – The layout or mapping of cargo within a container or vehicle.

M

  • Manifest – A list of goods loaded on a ship, plane, or truck.

  • Multimodal Transport – A shipment using multiple transport modes under a single contract.

N

  • NVOCC (Non-Vessel Operating Common Carrier) – A freight forwarder that issues its own bill of lading but doesn't operate the ships.

  • Net Weight – The weight of the goods excluding packaging or container.

O

  • Ocean Freight – Shipping of goods via sea vessels.

  • Over-Dimensional Cargo (ODC) – Cargo that exceeds standard legal size limits for transport.

P

  • POD (Proof of Delivery) – Documentation that shipment was received in full and in good condition.

  • Port of Discharge – Where the cargo is offloaded from the vessel.

  • Pallet – A base structure used to support goods during storage and transport.

Q

  • Quarantine Inspection – Check for pest or biohazards in goods, especially for agricultural cargo.

R

  • Rail Freight – Transport of goods via trains, common for long-haul bulk cargo.

  • RoRo (Roll-on/Roll-off) – Cargo method where vehicles drive directly on/off the ship.

S

  • Shipper – The person or company responsible for initiating a shipment.

  • Skid – Similar to a pallet, but with no bottom deck boards.

  • Slot Booking – Reserving container space on a vessel or truck.

T

  • TMS (Transportation Management System) – Software to manage logistics and freight processes.

  • Transit Time – The total time from pickup to delivery.

  • TEU (Twenty-foot Equivalent Unit) – Standard measurement for containerized cargo capacity.

U

  • ULD (Unit Load Device) – Containers used to load luggage, freight, and mail on wide-body aircraft.

  • Under Deck Cargo – Cargo stowed beneath the ship’s deck for protection from the elements.

V

  • Vessel Schedule – A timetable of shipping vessel arrivals and departures.

W

  • Waybill – A document containing shipment details and instructions, especially in rail and air.

  • Wharfage – A charge for use of a port’s wharf to load/unload cargo.

X

  • X-Dock (Cross-Docking) – A logistics practice where inbound cargo is directly transferred to outbound vehicles without storage.

Y

  • Yard – Storage area for containers near a port or rail terminal.

Z

  • Zone Rate – Freight charges based on geographic delivery zones (common in courier and road freight).


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🚀 Next Steps

  • Use this glossary to brief your logistics team.

  • Share with suppliers and clients for smoother communication.

  • Schedule a free consultation with a freight expert to clarify any terms and optimize your shipping strategy.

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