AEOAuthorised economic operator
A status customs grants to businesses with a good compliance record and a secure supply chain, bringing benefits such as faster clearance. India's AEO programme has several tiers.
Freight Glossary
Plain-English definitions of the freight, shipping and customs terms Indian forwarders, CHAs and logistics teams use every day, from FCL and LCL to demurrage, Incoterms and ETA.
144 terms, updated
Showing all 144 terms
Terms starting with A
Air freight
Transport of cargo by aircraft, either in the holds of passenger flights or on dedicated freighters. It's faster and usually costlier per kilogram than ocean freight, so it suits urgent, high-value and perishable goods.
Air freight surcharges
Per-kilogram add-ons airlines apply on top of the base rate, typically for fuel and security. They change often and are either quoted separately or bundled into an all-in rate.
Air waybillAWB
A non-negotiable document issued by an airline or its agent as a receipt for air cargo and as evidence of the contract of carriage. Its 11-digit number, a 3-digit airline prefix plus 8 digits, is used to track the shipment.
All-in rate
A quoted price that bundles base freight and surcharges into one figure. Always check which origin and destination local charges are still excluded.
ATAActual time of arrival
The time a vessel or flight actually arrived at its destination port or airport. Comparing it with the ETA shows how late or early the shipment was.
ATDActual time of departure
The time a vessel or flight actually left its port or airport of loading. Comparing it with the ETD shows any delay at origin.
Terms starting with B
BAFBunker adjustment factor
A surcharge that passes changes in fuel (bunker) costs on to shippers. Carriers adjust it periodically, so it can change even when the base rate doesn't.
Belly cargo
Cargo carried in the hold of a passenger aircraft rather than on a dedicated freighter.
Beneficial cargo ownerBCO
The company that owns the goods being shipped and buys transport for them directly, as opposed to an intermediary such as a freight forwarder or NVOCC.
Bill of entry
The document an importer or CHA files with Indian customs to declare imported goods and assess duty. Import clearance is completed against it.
Bill of ladingB/L
A document issued by the carrier or its agent that works as a receipt for the cargo and as evidence of the contract of carriage. The original is also a document of title and is usually needed to take delivery at destination.
Blank sailing
A scheduled sailing the carrier cancels, often because of weak demand or to manage capacity. Cargo booked on it is moved to another sailing, which causes delay.
Bonded warehouse
A secured warehouse where imported goods can be stored without paying customs duty until they're cleared for local sale or re-exported.
Booking confirmation
The carrier's confirmation that space is reserved for a shipment on a specific vessel or flight. It carries the booking number and cut-off times and, for ocean freight, container pick-up details.
Break bulk cargo
Cargo loaded piece by piece, in bags, crates, drums or as large items, rather than in a container or in loose bulk.
Bulk cargo
Loose, unpacked commodities such as grain, coal, ore or liquids, loaded straight into a vessel's hold or tank.
Terms starting with C
CAFCurrency adjustment factor
A surcharge that compensates a carrier for exchange-rate movements between the currency it charges in and the currencies it pays costs in.
Cargo manifest
A list of all the cargo on a vessel or aircraft, prepared by the carrier from its bills of lading or air waybills and filed with customs at the ports of loading and discharge.
Carrier
The company that transports cargo under a contract of carriage: a shipping line for ocean freight or an airline for air freight.
CBMCubic metre
The unit for measuring cargo volume. To work it out, multiply length x width x height in metres for each piece and add the results. It's used to price LCL cargo and plan loading.
Certificate of originCoO
A document certifying the country where goods were made. Importers may need it to claim lower duty under a free trade agreement or to meet import rules.
CFRCost and freight
The seller pays to bring the goods to the named destination port, but risk passes to the buyer once the goods are on board at the port of shipment. Insurance is the buyer's responsibility. For sea and inland waterway transport only.
CFSContainer freight station
A facility near a port where LCL cargo is combined into containers for export, or unpacked after import. Some customs examinations also take place there.
CHACustoms House Agent
A customs professional licensed in India to handle customs clearance for importers and exporters, including filing the bill of entry or shipping bill. The formal title in Indian regulations is customs broker, but CHA is still the everyday term.
Chargeable weight
The weight used to calculate air freight charges: the greater of a shipment's actual gross weight and its volumetric weight.
CIFCost, insurance and freight
As CFR, but the seller also buys minimum-cover marine insurance for the buyer's benefit. Risk still passes to the buyer once the goods are on board at the port of shipment. For sea and inland waterway transport only.
CIPCarriage and insurance paid to
As CPT, plus the seller buys insurance for the buyer. Under Incoterms 2020 the cover must be at the higher Institute Cargo Clauses (A) level. It works for any mode of transport.
Commercial invoice
The seller's bill for the goods, showing buyer, seller, description, quantity, value and terms of sale. Customs uses it to assess duty, so it must match the other shipping documents.
Consignee
The party named on the transport document to receive the cargo at its destination, usually the buyer or importer. The consignee may need to present an original bill of lading or a release order to collect the goods.
Consolidator
A company that combines small shipments from several shippers into one larger load, such as an LCL container or a bulk air booking, and sells space to each shipper. The cargo is separated again at destination.
Container number
The unique 11-character code on every shipping container: three letters for the owner, one category letter, six digits and a check digit, as set by ISO 6346. It's the number you use to track a container.
Container seal
A tamper-evident lock fixed to a container door after loading. The seal number is recorded on the bill of lading so any tampering can be spotted.
Container yardCY
The area of a port terminal or depot where containers are stored before loading or after discharge.
Contract rate
A rate agreed between a shipper or forwarder and a carrier for a set volume over a fixed period, often six or twelve months. It gives price stability but usually comes with volume commitments.
CPTCarriage paid to
The seller pays freight to the named destination, but risk passes to the buyer when the goods are handed to the first carrier. It works for any mode of transport.
Cross-trade
A shipment between two foreign countries arranged by a company based in a third, for example a forwarder in India moving cargo from Vietnam to Dubai.
Customs clearance
The process of declaring goods to customs and paying any duties and taxes so they can be exported or released into the country. In India it runs through the shipping bill for exports and the bill of entry for imports, usually handled by a CHA.
Customs duty
A tax charged on goods crossing a border, usually a percentage of their customs value set by the product's HS classification. In India, other levies such as IGST can apply on top.
Cut-off
The latest time cargo, documents or VGM can be submitted for a particular vessel. Separate cut-offs usually apply to container gate-in, shipping instructions and VGM, and missing one can mean missing the sailing.
Terms starting with D
Dangerous goodsDG
Cargo that can endanger people, property or the environment, such as flammable liquids, corrosives and lithium batteries, and is regulated for transport. It must be classified, packed, labelled and documented before a carrier will accept it. Also called hazmat.
DAPDelivered at place
The seller delivers the goods, ready for unloading, at the named destination and bears cost and risk until then. The buyer handles import clearance and duties.
DDPDelivered duty paid
The seller delivers the goods cleared for import at the named destination and pays all costs, duties and taxes along the way. It places the maximum obligation on the seller.
Delivery orderD/O
A document issued by the shipping line or its agent at destination, after freight and local charges are cleared and the bill of lading is surrendered, authorising the consignee to collect the cargo.
Demurrage
A charge from the shipping line when a container stays in the port or terminal beyond the free time allowed. It applies both after discharge and before loading.
Detention
A charge when a container is kept outside the terminal, for example at the consignee's premises, beyond the free time allowed before it is returned empty.
Digital freight platform
Online software where forwarders or shippers compare rates, book and track shipments across carriers, in place of manual emails and phone calls.
Direct service
A sailing where cargo travels from the port of loading to the port of discharge on one vessel, with no transshipment. It's usually faster and more predictable.
Documentation fee
A fee for preparing and issuing transport documents such as the bill of lading or air waybill, usually charged per document or per shipment.
Door-to-door
A service in which one party handles the whole journey, from pickup at the shipper's premises to delivery at the consignee's, including main carriage and local transport.
DPUDelivered at place unloaded
The seller delivers the goods unloaded at the named destination and bears cost and risk up to that point. It's the only Incoterm that requires the seller to unload, and it replaced DAT in Incoterms 2020.
Drayage
Short-distance trucking of containers, typically between a port or rail terminal and a warehouse, depot or factory.
Dry containerGP
The standard enclosed steel container for general, non-perishable cargo, usually 20 ft or 40 ft long. A 20 ft box holds about 33 cubic metres and a 40 ft about 67.
Duty drawback
A refund of customs duties or taxes paid on imported inputs when the finished goods are exported. Exporters in India claim it against their shipping bills.
Dwell time
How long a container or cargo sits at a terminal or CFS between arrival and pickup, or between gate-in and loading. Long dwell time raises storage and demurrage costs.
Terms starting with E
EGMExport general manifest
The manifest filed with Indian customs after export cargo is loaded, listing all shipments on the vessel or aircraft. Errors or delays in filing it can hold up processing of export incentives.
ETAEstimated time of arrival
When a vessel or flight is expected to reach its destination port or airport. ETAs are updated through the journey, and changes affect free time, trucking and customs planning.
ETDEstimated time of departure
When a vessel or flight is expected to leave the port or airport of loading. It's an estimate until the actual departure (ATD) is recorded.
EXWEx works
The seller makes the goods available at its own premises, and the buyer handles everything else: loading, export clearance, transport, insurance and import. It places the most responsibility on the buyer.
Terms starting with F
FASFree alongside ship
The seller delivers the goods alongside the buyer's vessel at the named port of shipment, and the buyer bears cost and risk from there. For sea and inland waterway transport only, and typically used for bulk or break bulk cargo.
FCAFree carrier
The seller delivers the goods, cleared for export, to a carrier or place the buyer nominates, and risk passes to the buyer there. It works for any mode of transport, and the ICC advises it over FOB for containerised cargo.
FCLFull container load
A shipment that fills an entire container for one shipper, who has exclusive use of it. FCL is usually priced per container rather than by volume or weight.
FEUForty-foot equivalent unit
One 40-foot container, equal to 2 TEU. Container rates and volumes are often quoted per 20 ft or per 40 ft unit.
Flat rack container
A container with no sides or roof and, usually, collapsible end walls. It carries heavy or oversized cargo, such as machinery, that won't fit inside a standard box.
FOBFree on board
The seller delivers the goods on board the vessel the buyer has nominated at the named port of shipment, cleared for export. Risk passes to the buyer once the goods are on board. For sea and inland waterway transport only; for containers, FCA is usually the better fit.
Free time
The days a carrier allows to pick up a full container or return an empty one before demurrage or detention starts. Free days vary by shipping line, port and negotiated terms.
Free trade agreementFTA
An agreement between countries that reduces or removes customs duty on qualifying goods. Importers usually need a certificate of origin to claim the lower rate.
Freight
Goods being transported by sea, air or road, and also the charge for transporting them.
Freight collect
A payment arrangement where the consignee pays freight at destination, usually before the cargo is released. It's marked on the bill of lading and typically follows the agreed Incoterm.
Freight forwarder
A company that arranges the movement of cargo for a shipper: booking space with carriers, preparing documents and coordinating customs, trucking and delivery. Forwarders can act as agents, or as NVOCCs when they issue their own bills of lading.
Freight prepaid
A payment arrangement where the shipper pays freight at origin, so the consignee doesn't owe it at destination. It's marked on the bill of lading.
Freight rate
The price a carrier charges to move cargo between two points, quoted per container, per kilogram or per cubic metre depending on the mode. It may exclude surcharges and local charges unless it is quoted all-in.
Freighter
An aircraft built or converted to carry only cargo.
Terms starting with G
Gate-in and gate-out
Gate-in is when a container enters a port terminal or depot, and gate-out is when it leaves. Both are recorded and show up in tracking, and free-time calculations often depend on them.
General average
A maritime principle under which everyone with cargo on a vessel shares the cost of a deliberate sacrifice or expense made to save the voyage, such as jettisoning cargo in a storm. Cargo owners can be asked to contribute even if their own goods weren't damaged.
GRIGeneral rate increase
A carrier's announced across-the-board increase to freight rates on a trade lane, usually from a set date. How much of an announced GRI sticks depends on market demand.
Gross weight
The total weight of cargo including its packaging, before the container's own weight is added. Net weight is the weight of the goods alone.
GSAGeneral sales agent
An agent appointed by an airline to sell its cargo space in a given market.
Terms starting with H
High cube containerHC
A container one foot taller than standard (9 ft 6 in instead of 8 ft 6 in), most often in 40 ft. A 40 ft high cube holds about 76 cubic metres, roughly 13% more than a standard 40 ft, and suits light, bulky cargo.
House air waybillHAWB
The air waybill a forwarder or consolidator issues to its own customer for a consolidated shipment. It sits beneath the airline's master air waybill.
House bill of ladingHBL
The bill of lading a forwarder or NVOCC issues to its own customer, typically one per shipper in a consolidation. It sits beneath the shipping line's master bill of lading.
HS codeHarmonized System code
A standard numerical code for classifying traded goods, maintained by the World Customs Organization. The first six digits are the same worldwide; countries add more for their own tariffs, and India uses eight-digit codes.
Terms starting with I
IATAInternational Air Transport Association
The trade body for airlines. In air cargo it sets standards such as the dangerous goods regulations and the three-letter airport codes, like BOM for Mumbai and DEL for Delhi.
ICDInland container depot
A dry port away from the coast where containers can be cleared by customs, stored and moved to or from seaports by road or rail. India has many ICDs, which let businesses complete formalities inland.
ICEGATE
India's electronic customs gateway, run by the Central Board of Indirect Taxes and Customs (CBIC). Businesses use it to file bills of entry and shipping bills and to pay duties online.
IECImporter Exporter Code
A 10-digit code issued by India's Directorate General of Foreign Trade (DGFT). Businesses generally need one to import or export goods commercially.
IGMImport general manifest
The manifest the carrier or its agent files with Indian customs before a vessel arrives, listing every consignment on board. Importers' bills of entry are matched against it.
IMDG CodeInternational Maritime Dangerous Goods Code
The international rulebook for carrying dangerous goods by sea. It groups hazardous materials into classes and sets packing, labelling, stowage and documentation requirements.
Importer of recordIOR
The party legally responsible for goods at import, including declaring them to customs and paying duties and taxes. In India this is the importer named on the bill of entry, who generally needs an Importer Exporter Code (IEC).
Incoterms
International trade rules published by the International Chamber of Commerce (ICC) that set out who, buyer or seller, is responsible for transport, insurance, customs and risk at each stage of a sale. The current edition is Incoterms 2020, with 11 rules.
Intermodal transport
Moving cargo in one container or load unit across more than one mode of transport, such as truck, rail and ship, without handling the goods themselves when switching modes.
ISO tank
A stainless-steel tank inside a standard container frame, used to carry bulk liquids, chemicals and gases.
Terms starting with L
LCLLess than container load
A shipment too small to fill a container, so it shares space with other shippers' cargo. LCL is typically charged per cubic metre or per tonne, whichever gives the higher charge, and is consolidated at a CFS before loading.
LEOLet Export Order
The order from Indian customs permitting export once the shipping bill is assessed and any examination is complete. Export cargo generally can't be loaded onto the vessel without it.
Letter of creditL/C
A bank's written commitment to pay the seller once the seller presents documents that meet the credit's terms, such as an invoice and a bill of lading. It reduces payment risk in international trade.
Live freight rates
Prices taken directly from carriers' systems, usually through an API, at the moment you search, rather than from a static price list or an emailed quote.
Terms starting with M
Marine cargo insurance
Insurance that covers loss of or damage to goods in transit. Because a carrier's liability is limited, shippers usually buy separate cover for the full value of the cargo.
Master air waybillMAWB
The air waybill an airline issues to a forwarder or consolidator, covering a whole consolidated shipment.
Master bill of ladingMBL
The bill of lading a shipping line issues to a forwarder or NVOCC, covering the whole container in a consolidated shipment.
Multimodal transport
Carriage by at least two different modes of transport under a single contract and transport document, with one party responsible for the whole journey.
Terms starting with N
Notify party
A party named on the bill of lading whom the carrier or its agent informs when the cargo arrives. The notify party isn't entitled to take delivery unless it is also the consignee.
NVOCCNon-vessel operating common carrier
A carrier that sells ocean transport and issues its own house bills of lading but doesn't own or operate vessels. It buys space from shipping lines and resells it, often by consolidating LCL cargo from several shippers.
Terms starting with O
Ocean freight
Transport of cargo by sea, most commonly in containers on scheduled shipping services. It's usually cheaper per unit than air freight but slower, and it carries most of the world's trade by volume.
OOCOut of Charge
The customs order that releases imported goods once the bill of entry is assessed and duties are paid. The cargo can then be collected after the delivery order and port formalities.
Open top container
A container with a removable roof, usually a tarpaulin, so tall or heavy cargo can be loaded from above by crane.
Out-of-gauge cargoOOG
Cargo that exceeds the internal dimensions of a standard container, being too tall, wide or long, and so ships on an open top, flat rack or break bulk space.
Terms starting with P
Packing list
A document listing what's in each package or pallet: contents, quantities, weights and dimensions. Customs, carriers and the buyer use it to check the shipment.
Pallet
A flat platform, usually wood or plastic, on which goods are stacked and strapped so they can be moved by forklift. Common sizes include 1200 x 1000 mm and 1200 x 800 mm.
Perishable cargo
Goods that spoil without temperature control, such as fresh produce, seafood, flowers and some medicines. They ship in reefer containers or by air, with strict time and temperature requirements.
PODPort of discharge
The port where cargo is unloaded from the main vessel.
POLPort of loading
The port where cargo is loaded onto the main vessel for the sea leg of its journey.
Port congestion
A build-up of vessels or containers at a port that slows loading, discharge and pickup. It can cause missed connections, longer transit times and higher demurrage.
Port-to-port
A service covering only the sea or air leg between the port of loading and the port of discharge. Trucking, handling and customs at each end are arranged separately.
Project cargo
Large, heavy or high-value equipment moved for an infrastructure or industrial project. It often needs custom planning, special equipment and permits.
PSSPeak season surcharge
An extra charge carriers add in periods of high demand, typically ahead of major holidays and retail peaks, to reflect tight capacity and higher costs.
Terms starting with R
Rate benchmarking
Comparing the rates you're quoted with other carriers' rates or the wider market to check they're competitive. Benchmarking against live market rates helps forwarders price quotes accurately and protect margins.
Rate validity
The period for which a quoted rate holds. After it expires the carrier can change the price, so bookings should be confirmed within the window.
Reefer container
A refrigerated container with its own cooling unit, used for temperature-sensitive cargo such as food, pharmaceuticals and some chemicals. It needs a continuous power supply, from the vessel, terminal plugs or a generator, throughout the journey.
Road freight
Transport of cargo by truck: for domestic moves, for the first and last legs of an international shipment, and across land borders.
Rollover
When a carrier moves a booked container to a later sailing, typically because the vessel is full or for operational reasons. The cargo arrives later than planned.
RoRoRoll-on/roll-off
A way of shipping wheeled cargo, such as cars, trucks and trailers, by driving it on and off a purpose-built vessel.
Terms starting with S
Safety data sheetSDS
A manufacturer's document describing a chemical's hazards, handling, storage and emergency measures. Carriers and forwarders typically ask for it before accepting hazardous cargo.
Sailing schedule
The timetable for a shipping service: vessel, voyage number, ports called and expected departure and arrival dates. Forwarders use it to plan bookings around cut-offs.
Sea waybill
A non-negotiable transport document that acts as a receipt and contract of carriage but isn't a document of title. Cargo is released to the named consignee without an original, which speeds up delivery.
Shipper
The person or company that hands cargo over for transport and is named as the shipper on the bill of lading. This is usually the seller or exporter, though a freight forwarder can be named as shipper on a client's behalf.
Shipping agent
The local representative of a shipping line at a port. The agent handles vessel calls, documentation, delivery orders and cargo release on the carrier's behalf.
Shipping bill
The document an exporter or CHA files with Indian customs to declare goods for export. If customs is satisfied, it issues a Let Export Order.
Shipping instructionsSI
The details a shipper gives the carrier or forwarder for preparing the bill of lading: parties, cargo description, weights, container and seal numbers. They must reach the carrier before the documentation cut-off.
Shipping line
A carrier that operates container vessels on scheduled services between ports. Also called an ocean carrier or VOCC (vessel-operating common carrier).
Spot rate
A price for shipping cargo at current market levels, for immediate or short-term bookings and not tied to a long-term contract. Spot rates move with supply and demand and can change often.
Stuffing and stripping
Stuffing is loading cargo into a container; stripping, or destuffing, is unloading it. Either can happen at the shipper's premises, a CFS or the consignee's warehouse.
Terms starting with T
Tare weight
The weight of an empty container. Added to the weight of the cargo and packing, it gives the container's verified gross mass.
Telex release
A way to release cargo without handing over an original bill of lading. The shipper surrenders the originals to the carrier at origin, and the carrier authorises release at destination electronically.
Terminal operator
The company that runs a port terminal, handling vessel berthing, container loading and discharge, and yard storage.
TEUTwenty-foot equivalent unit
The standard unit for measuring container capacity, based on one 20-foot container. A 40-foot container counts as 2 TEU, and vessel capacity and port volumes are usually quoted in TEU.
THCTerminal handling charges
Fees for moving a container between the vessel and the terminal yard, collected by the carrier. They're quoted separately at origin (OTHC) and at destination (DTHC).
Third-party logistics3PL
A company that runs logistics tasks such as warehousing, transport and distribution on behalf of another business.
Track and trace
Following a shipment's location and status along its journey, such as vessel departure, transshipment, arrival and gate-out, using container, bill of lading or air waybill numbers. Good tracking gives reliable ETAs and early warning of delays.
Transit time
The number of days between a shipment leaving the port of loading and arriving at the port of discharge. Door-to-door transit time also includes inland legs, handling and customs.
Transshipment
Transferring cargo from one vessel or aircraft to another at an intermediate port on the way to its destination. It can add days and the risk of delay compared with a direct service.
Terms starting with U
ULDUnit load device
A pallet or container built to fit an aircraft's hold, used to load air cargo in standardised units.
UN number
A four-digit number the United Nations assigns to a specific dangerous substance or group of substances in transport. For example, UN 1203 is gasoline.
Terms starting with V
Verified gross massVGM
The total weight of a packed container, covering cargo, packing and the container's own tare weight, that the shipper must declare to the carrier before loading under the SOLAS rule in force since 1 July 2016. Containers without a VGM can be refused.
Volumetric weight
A weight calculated from a shipment's size, used for light, bulky cargo. The IATA standard divides length x width x height in centimetres by 6,000; couriers often divide by 5,000.
No terms match your search
Try a shorter word, check the spelling, or clear the filters to see every term.
Ready to Save Time,
Reduce Cost & Simplify Freight?
Transform. Scale. Succeed.
Book A Demo
Reduce Cost & Simplify Freight?
Transform. Scale. Succeed.
With Kappal by your side
Book A Demo
