Use our helpful logistics glossary below to learn more about common terms used in freight forwarding.
Air Freight
Air freight involves transporting goods by aircraft, making it ideal for moving high-value or perishable items over long distances quickly. Airlines provide cargo space on either passenger flights or dedicated cargo planes designed exclusively for freight.
A ballast voyage is a journey a ship makes without carrying cargo. During these trips, the ship carries ballast—usually seawater—to maintain stability, balance, and proper draft.
The Baltic and International Maritime Council (BIMCO) is the world's largest international shipping association, representing shipowners, operators, managers, brokers, and agents.
A bareboat charter is a type of vessel rental where the charterer takes full control and responsibility for the vessel without a crew or provisions. The charterer manages all aspects of the boat, including navigation, crew hiring, maintenance, and compliance with maritime laws.
A Bill of Lading (BoL) is a document that serves as a contract between the shipper of goods and the carrier, detailing the type, quantity, and destination of the cargo being shipped.
Blocking and Bracing are techniques used in freight shipping to secure cargo and prevent movement during transit. These methods are essential for ensuring the safe transport of goods, protecting them from damage caused by shifting or vibrations.
A Certificate of Origin (CO) is an international trade document certifying the country where a commodity or good was manufactured, produced, processed, or obtained.
Concealed loss is the damage or loss of goods that is not immediately obvious upon delivery and is usually discovered after the packaging is opened and the contents are inspected.
The consignee is the party that receives the goods being transported in a freight forwarding operation. They are the intended recipient of the shipment at the final destination.
A consignor is the party that sends or "consigns" goods for transportation. The consignor is responsible for preparing the goods for shipment and ensuring that all necessary documentation and information is provided to the freight forwarder or carrier.
Cross docking is a logistics strategy where incoming shipments are directly transferred from the receiving dock to the shipping dock with minimal or no storage in between.
A customs broker is a licensed professional or firm that assists businesses in navigating the complex process of importing and exporting goods across international borders.
Customs clearance is a process in international trade that involves preparing and submitting documents required to legally export or import goods across international borders and ensuring that all necessary taxes, duties, and regulations have been adhered to.
Daily operating costs in logistics and freight refer to the everyday expenses needed to efficiently run transportation and delivery services. These costs include driver salaries, fuel, vehicle maintenance, warehouse rent, utilities, and administrative supplies.
Demurrage is a charge that the owner of a chartered ship imposes on the charterer (the person or company hiring the boat) for failing to load or unload the ship within the time agreed.
Door-to-door Service in logistics is a comprehensive shipping service that covers the entire process of moving goods from the initial sender's location directly to the final recipient's premises.
An export license is a document secured from a government that authorises a shipper to export a specific quantity of a particular commodity to a certain country.
Freight refers to goods or cargo transported by land, air, or sea. It plays an important role in global trade, enabling the movement of products across different countries.
Freight Audit Software is a digital tool designed to review, verify, and correct freight invoices. It makes sure that carrier charges are accurate and match agreed-upon rates and terms, automating a process that can otherwise be time-consuming and error-prone.
Freight Collect is a term used in the shipping industry to describe a payment arrangement where the receiver of the goods is responsible for paying the shipping costs at the time of delivery.
A freight forwarder is a company or individual that organises shipments for businesses or individuals to transport goods from one destination to another.
Freight Prepaid is a shipping term used to indicate that the freight charges for transporting goods from the sender to the recipient have been paid by the sender in advance.
A fuel surcharge (FSC) is an additional fee that carriers add to cover the varying fuel costs. This charge helps manage the impact of fuel price fluctuations on shipping operations.
Full Container Load, or FCL, refers to a shipping mode where a single container is booked by a shipper to transport goods. This container is exclusively used for one shipper's cargo, meaning the goods inside are not shared with items from other shippers.
A GATT/DGFT Declaration is an important document in international trade. It's a statement that exporters use to claim duty benefits under foreign trade policies.
Green shipping is about making sea transport more environmentally friendly. It uses new technologies, better working methods, and updated rules to reduce shipping's environmental impact.
Hazardous materials, often abbreviated as Hazmat, refer to substances or materials that pose a risk to health, safety, property, or the environment due to their chemical, physical, or biological nature. These materials' handling, storage, transportation, and disposal are strictly regulated to prevent accidents and ensure public safety.
Inbound freight is the goods and materials brought into a business from suppliers or manufacturers. This process includes the transportation, handling, and receiving of these items.
Incoterms, short for International Commercial Terms, are a set of global rules established by the International Chamber of Commerce (ICC) that define the responsibilities of sellers and buyers for the delivery of goods under sales contracts.
Intermodal transportation refers to the process of transporting goods using two or more different modes of transportation in a single journey, without handling the freight itself when changing modes. It is distinguished by its use of standardized containers, which are designed to be moved easily from trucks to trains to ships and back.
Last-mile delivery is the final step of the logistics process, where goods are transported from a transportation hub to their final delivery destination.
A letter of credit is a financial instrument issued by a bank that guarantees payment to a seller on behalf of a buyer, provided that the terms and conditions specified in the document are met.
In international freight shipping, a manifest is a document that provides a detailed list of all the cargo being transported. It is an important record for the shipper, the carrier, and customs authorities, facilitating the smooth movement of goods across international borders.
Maritime law is the rules governing activities at sea and ocean shipping. For those of us in freight forwarding and logistics, it's essential to understand these rules as they affect how we move goods across oceans.
A Non-Vessel Operating Common Carrier (NVOCC) is a company that provides ocean freight transportation services to customers without operating its own vessels.
Ocean freight, also known as sea freight, is transporting goods across the sea in large containers aboard ships. Businesses worldwide rely on ocean freight to import and export products, making it an essential part of global trade.
An on-board courier (OBC) is a specialist who provides a personal delivery service for time-sensitive or high-value items across the globe. This person typically travels with the package on commercial flights, ensuring it remains secure and reaches its destination as quickly as possible.
The Port of Discharge (POD) is the port where cargo is unloaded from a vessel upon reaching its destination. During the shipping process, it marks the transition of cargo from transit to land distribution.
The Port of Loading (POL) is the port at which cargo is officially loaded onto a ship or vessel for transport. It serves as the departure point in the shipping itinerary for international trade and logistics.
A purchase order (PO) is a necessary document in freight forwarding and logistics. It's an official, legally binding offer issued by a buyer to a seller detailing the types, quantities, and agreed prices for products or services.
Quarantine is a preventive measure in international shipping and trade that involves temporarily isolating cargo, vessels, or personnel to prevent the spread of diseases, pests, or other potential hazards.
A reefer container, short for refrigerated container, is a type of shipping container equipped with refrigeration units to transport temperature-sensitive goods.
Roll-on/roll-off (RORO) refers to a method used in the shipping industry to load and unload cargo which is on wheels, such as cars, trucks, semi-trailer trucks, trailers, and railroad cars. The vehicles are driven on and off the ship on their own wheels or using a platform vehicle, such as a self-propelled modular transporter.
A shipbroker is a specialised professional in the shipping industry who acts as an intermediary between shipowners and charterers, facilitating vessels' chartering, buying, and selling.
