Glossary

Find definitions of common terms used in shipping, logistics, and international trade.

A

ACE Analysis
ACE Analysis is the review of data within the Automated Commercial Environment, a system used by U.S. Customs to process imports and manage cargo release.

Air Waybill (AWB)
An Air Waybill is a document issued by an airline that confirms shipment details and serves as a receipt for goods transported by air.

All-Risk Coverage
All-Risk Coverage is a type of insurance that protects shipments against most types of damage or loss during transport.

Anti-dumping Duties (AD)
Anti-dumping Duties are additional taxes placed on imported goods that are sold at unusually low prices to protect local businesses.

Automated Export System (AES)
The Automated Export System is an electronic system used to file export information before goods leave a country.

Automated Manifest System (AMS)
The Automated Manifest System is used to submit shipment details to customs before cargo arrives.

B

Bill of Lading (BOL or B/L)
A Bill of Lading is a document that outlines the terms of a shipment and confirms that goods have been received for transport.

Bonded Warehouse
A Bonded Warehouse is a secure facility where imported goods can be stored without paying duties until they are released.

Break Bulk
Break Bulk refers to cargo that is transported individually rather than in containers.

Bulk Cargo
Bulk Cargo consists of large quantities of unpackaged goods, such as grains or raw materials.

C

Cargo Insurance
Cargo Insurance provides financial protection against loss or damage to goods while they are being transported.

Carrier
A Carrier is a company responsible for moving goods from one place to another.

Commercial Invoice
A Commercial Invoice is a document that lists the value, quantity, and description of goods being sold.

Consignee
The Consignee is the person or business that receives the shipment.

Container
A Container is a standardized box used to transport goods across different modes of transportation.

Customs Broker
A Customs Broker is a licensed professional who helps manage paperwork and ensures goods meet import and export requirements.

Customs Clearance
Customs Clearance is the process of getting approval from authorities to move goods across borders.

Customs Bond
A Customs Bond is a guarantee that duties and taxes owed on imported goods will be paid.

D

Demurrage
Demurrage is a fee charged when cargo stays at a port or terminal longer than allowed.

Detention
Detention is a charge for keeping a container outside a terminal beyond the agreed time.

Drayage
Drayage is the short-distance transport of goods, often between ports and nearby facilities.

Duty
Duty is a tax placed on goods when they are imported into a country.

Duty Drawback
Duty Drawback is a refund of duties paid on imported goods that are later exported.

E

EORI (Economic Operator Registration and Identification)
An EORI number is a unique identifier required for businesses that import or export goods in certain regions.

Export License
An Export License is official permission needed to ship certain controlled goods to another country.

EXW (Ex Works)
EXW is a shipping term where the buyer takes responsibility for goods once they leave the seller’s location.

F

FCL (Full Container Load)
FCL refers to a shipment that uses an entire container for one customer.

FOB (Free on Board)
FOB is a shipping term where the seller is responsible for goods until they are loaded onto a vessel.

FTA (Free Trade Agreement)
An FTA is an agreement between countries that reduces or removes trade barriers.

FTL (Full Truckload)
FTL refers to a shipment that fills an entire truck.

G

General Average
General Average is a principle where all parties share losses if part of a shipment is sacrificed to save the rest.

GRI (General Rate Increase)
GRI is a price increase applied by carriers.

H

HS Codes (Harmonized System Codes)
HS Codes are standardized numbers used to classify products for customs purposes.

Hazmat
Hazmat refers to materials that are considered hazardous and require special handling.

I

Importer of Record
The Importer of Record is the entity responsible for ensuring goods meet import regulations and for paying any duties.

Incoterms®
Incoterms are a set of rules that define responsibilities between buyers and sellers during shipping.

ISF (Importer Security Filing)
ISF is a required filing submitted before goods arrive to provide shipment details to authorities.

L

LCL (Less than Container Load)
LCL refers to shipments that share container space with other goods.

LTL (Less than Truckload)
LTL refers to shipments that share space on a truck.

M

MSDS (Material Safety Data Sheet)
An MSDS provides information about handling and safety for certain materials.

N

NVOCC (Non-Vessel Operating Common Carrier)
An NVOCC is a company that arranges shipments but does not operate the vessels used for transport.

Notify Party
The Notify Party is the person or business that is informed when a shipment arrives.

O

Origin Charge
Origin Charges are fees related to handling goods at the starting point of a shipment.

Overweight Surcharge (OWS)
OWS is an extra fee applied when cargo exceeds weight limits.

P

Packing List (PL)
A Packing List is a document that details the contents of a shipment.

Pallet
A Pallet is a platform used to store and move goods.

Peak Season Surcharge (PSS)
PSS is an extra fee applied during busy shipping periods.

Port Filing
Port Filing is the submission of shipment details to port authorities before cargo moves.

R

Rules of Origin
Rules of Origin determine where a product was made.

Rolled Cargo
Rolled Cargo refers to shipments that are delayed and moved to a later departure.

S

Shipper’s Letter of Instruction (SLI)
An SLI provides instructions from the shipper to the party handling the shipment.

Storage Charges
Storage Charges are fees for keeping goods in a facility beyond the allowed time.

T

Tariff
A Tariff is a tax applied to goods being imported or exported.

TEU (Twenty-foot Equivalent Unit)
TEU is a standard unit used to measure container capacity.

Transloading
Transloading is the process of transferring goods from one mode of transport to another.

U

Ultimate Consignee
The Ultimate Consignee is the final recipient of a shipment.

V

VAT (Value Added Tax)
VAT is a tax applied to goods and services at each stage of production or distribution.

W

Wharfage
Wharfage is a fee charged for handling cargo at a port.

Y

Yard Storage
Yard Storage refers to fees for storing containers at a port or terminal.

Z

Zone Rate
Zone Rate is a pricing method based on distance or delivery area.