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
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AWB (Air Waybill) – A document issued by an air carrier as a receipt of goods and contract of carriage.
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ATA Carnet – An international customs document for temporary imports, often used in air and road freight.
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Arrival Notice – A notification sent by the carrier or agent advising the consignee of the arrival of freight.
B
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B/L (Bill of Lading) – A legal document between shipper and carrier; serves as a receipt and contract of carriage.
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Break Bulk – Cargo that must be loaded individually (not in containers), common in ocean and rail shipping.
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Bunker Adjustment Factor (BAF) – A surcharge to account for fuel price fluctuations in sea freight.
C
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CFS (Container Freight Station) – A warehouse for consolidation/deconsolidation of container cargo.
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Chassis – A trailer used for hauling containers via truck (road freight).
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Consignee – The person or entity to whom goods are being shipped.
D
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DDP (Delivered Duty Paid) – Seller bears all costs including import duties; popular in Incoterms.
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Demurrage – Charges for containers left at a terminal beyond the allowed free time.
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Dispatch – The time cargo is handed over for transit (rail, sea, air, or road).
E
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EDI (Electronic Data Interchange) – Digital transmission of documents like booking and customs forms.
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ETD/ETA – Estimated Time of Departure / Arrival.
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Export Declaration – A document required to legally export goods from a country.
F
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FOB (Free on Board) – Incoterm where seller delivers goods on board a vessel; buyer handles freight.
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Freight Forwarder – A logistics specialist who arranges cargo movement for shippers.
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Flat Rack Container – Open-sided container used for oversized cargo in sea and rail freight.
G
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GRI (General Rate Increase) – Adjustment in base shipping rates, usually in ocean freight.
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Gateway Port – A major port of entry for importing/exporting goods.
H
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Harmonized Code (HS Code) – An international system for classifying goods for customs.
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HAWB (House Air Waybill) – Issued by a freight forwarder for air shipments under a master air waybill.
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Hub – A central location where cargo is received, sorted, and forwarded.
I
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Incoterms – Standard trade terms (e.g., EXW, CIF) defining buyer/seller responsibilities.
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Inland Haulage – Transport of cargo from port to destination by road or rail.
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ISO Container – A standardized shipping container used globally.
J
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JIT (Just in Time) – Inventory system that requires precise shipping schedules to minimize stockholding.
K
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Kilometer-Based Charges – Often used in road and rail transport pricing.
L
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LCL (Less than Container Load) – Shared container space; used when shipments don’t fill a full container.
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Line Haul – The movement of freight between two major cities or terminals.
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Load Plan – The layout or mapping of cargo within a container or vehicle.
M
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Manifest – A list of goods loaded on a ship, plane, or truck.
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Multimodal Transport – A shipment using multiple transport modes under a single contract.
N
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NVOCC (Non-Vessel Operating Common Carrier) – A freight forwarder that issues its own bill of lading but doesn't operate the ships.
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Net Weight – The weight of the goods excluding packaging or container.
O
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Ocean Freight – Shipping of goods via sea vessels.
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Over-Dimensional Cargo (ODC) – Cargo that exceeds standard legal size limits for transport.
P
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POD (Proof of Delivery) – Documentation that shipment was received in full and in good condition.
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Port of Discharge – Where the cargo is offloaded from the vessel.
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Pallet – A base structure used to support goods during storage and transport.
Q
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Quarantine Inspection – Check for pest or biohazards in goods, especially for agricultural cargo.
R
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Rail Freight – Transport of goods via trains, common for long-haul bulk cargo.
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RoRo (Roll-on/Roll-off) – Cargo method where vehicles drive directly on/off the ship.
S
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Shipper – The person or company responsible for initiating a shipment.
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Skid – Similar to a pallet, but with no bottom deck boards.
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Slot Booking – Reserving container space on a vessel or truck.
T
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TMS (Transportation Management System) – Software to manage logistics and freight processes.
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Transit Time – The total time from pickup to delivery.
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TEU (Twenty-foot Equivalent Unit) – Standard measurement for containerized cargo capacity.
U
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ULD (Unit Load Device) – Containers used to load luggage, freight, and mail on wide-body aircraft.
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Under Deck Cargo – Cargo stowed beneath the ship’s deck for protection from the elements.
V
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Vessel Schedule – A timetable of shipping vessel arrivals and departures.
W
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Waybill – A document containing shipment details and instructions, especially in rail and air.
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Wharfage – A charge for use of a port’s wharf to load/unload cargo.
X
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X-Dock (Cross-Docking) – A logistics practice where inbound cargo is directly transferred to outbound vehicles without storage.
Y
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Yard – Storage area for containers near a port or rail terminal.
Z
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Zone Rate – Freight charges based on geographic delivery zones (common in courier and road freight).
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🚀 Next Steps
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Use this glossary to brief your logistics team.
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Share with suppliers and clients for smoother communication.
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Schedule a free consultation with a freight expert to clarify any terms and optimize your shipping strategy.

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