Navigating international shipping documents and quotes can feel like deciphering a secret code. Misunderstanding a single acronym can lead to unexpected costs, delays, and frustrations. This definitive glossary cuts through the jargon, giving you the clear definitions you need to manage your supply chain effectively and communicate with partners like a pro.

Core Parties & Documents

• Freight Forwarder: Your primary logistics partner; coordinates the entire shipping process.

• Customs Broker: Licensed specialist who handles customs clearance in the destination country.

• Shipping Line / Carrier: The company that operates the vessels (ships) for ocean transport.

• Trucking Company: Provides land transportation to and from ports/warehouses.

• Overseas Agent: Your forwarder’s partner agency in the destination country.

• Shipper: The exporter/seller who originates the shipment.

• Consignee: The entity listed on the Bill of Lading as the final recipient of the goods.

• Notify Party: The party to be notified upon the shipment’s arrival.

• Master Bill of Lading (MBL): The Bill of Lading issued by the shipping line (carrier).

• House Bill of Lading (HBL): The Bill of Lading issued by the freight forwarder.

• Original Bill of Lading: A negotiable original shipping document.

• Telex Release: A procedure to release cargo without the original Bill of Lading, using an electronic message.

• Air Waybill (AWB): The non-negotiable contract for air freight.

Key Locations & Schedules

• Port of Loading (POL): The port where goods are loaded onto the vessel.

• Port of Discharge (POD): The port where goods are unloaded from the vessel.

• Port of Transit: An intermediate port where transshipment occurs.

• Estimated Time of Departure (ETD): The planned departure date of a vessel.

• Estimated Time of Arrival (ETA): The planned arrival date of a vessel.

• Customs Cut-off: The deadline for cargo to be cleared by customs for loading.

• Vessel & Voyage Number: The ship’s name and its specific journey identifier.

• Schedule: The published timetable of vessel departures and arrivals.

• Transit Time: The total time taken from origin to destination.

Cargo & Pricing Details

• Shipping Marks: Identifying symbols and numbers on shipping packages.

• Package: The individual units or cartons containing the goods.

• Weight & Measurement: The gross weight and cubic volume of the shipment.

• Full Container Load (FCL): A shipment utilizing an entire container.

• Less than Container Load (LCL): A shipment that doesn’t fill a container, consolidated with other cargo.

• Dimensional Weight: The chargeable weight based on cargo volume, not actual weight (common in air freight).

• Ocean Freight: The base cost for sea transportation.

Common Surcharges & Fees (Crucial for Costing)

• Terminal Handling Charge (THC): Fee for handling the container at the port terminal.

• Origin Receipt Charge (ORC): A surcharge applied at the port of origin, common in Asia.

• Automated Manifest System (AMS): US & Canada advance cargo declaration fee.

• Destination Delivery Charge (DDC): A fee applied for handling at the US destination port.

• Bunker Adjustment Factor (BAF): Carrier fuel surcharge.

• Currency Adjustment Factor (CAF): Surcharge to balance currency fluctuations.

• Merchandise Processing Fee (MPF): US Customs fee for formal import entries.

• Harbor Maintenance Fee (HMF): US fee for port infrastructure maintenance.

• Documentation Fee (DOC): Fee for preparing shipping documents.

Specialized Terms & Processes

• Customs Clearance: The official process of getting goods through customs.

• Insurance: Coverage for loss or damage to the cargo during transit.

• Demurrage: A charge for containers left at the port beyond the free time.

• Free Time: The period cargo can remain at the terminal before incurring charges.

• Harmonized System Code (HTS): An international code for classifying traded products.

• Letter of Credit (L/C): A bank guarantee of payment from the importer to the exporter.

• Certificate of Origin (C/O): A document declaring the country where the goods were manufactured.

• Duty Drawback: A refund of duties paid on imported goods that are later exported.

• Continuous Bond: An annual guarantee for US imports, covering all shipments for the year.

• Single Entry Bond: A one-time bond for a single US import entry.

Stop Guessing, Start Mastering Your Shipping

Don’t let complex terminology create costly misunderstandings. A true logistics partner doesn’t just move your goods—they empower you with clarity.

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