Logistics glossary

The terms you will find in quotes, bookings and trade documents.

A

AES / EEI: The Automated Export System is where Electronic Export Information is filed with U.S. Census for exports that require it, such as shipments over certain values or that need an export license.
Air Waybill (AWB): The transport document for air cargo. It works as a receipt and contract of carriage but, unlike an ocean B/L, it is not a document of title.

Bill of Lading (B/L): The ocean transport document issued by the carrier or its agent. It is a receipt for the cargo, evidence of the contract of carriage and, when negotiable, a document of title.
Bonded warehouse: A facility authorized and bonded by U.S. Customs and Border Protection where imported goods can be stored without paying duties until they are withdrawn for consumption.
Breakbulk: Cargo loaded piece by piece rather than in containers, such as steel, machinery or large crates.

Certificate of Origin: A document that states the country where goods were produced. It may be required by the importing country or to claim preferential duty treatment.
CFS: Container Freight Station: the warehouse where LCL cargo is consolidated before departure or deconsolidated after arrival.
Chargeable weight: In air freight, the greater of the actual gross weight and the volumetric weight. It is the weight used to calculate the freight.
Commercial invoice: The seller's invoice to the buyer. Customs uses it to determine the value, description and origin of the goods.
Consignee: The party to whom the cargo is delivered, usually the buyer or importer.
Cross-docking: Transferring cargo from inbound to outbound transport with little or no storage time.
Customs broker: A licensed professional authorized to clear goods through customs on behalf of the importer or exporter.

Dangerous goods (DG / Hazmat): Cargo that can pose a risk to health, safety or property. It must be classified, packed, labeled and declared under the applicable regulations.
Demurrage and detention: Charges applied when containers stay at the terminal (demurrage) or outside it (detention) beyond the free time allowed by the carrier.

FCL: Full Container Load: one shipper uses an entire container.
Flat rack: A container with no roof or side walls, used for cargo that is too wide, too tall or too heavy for standard containers.
Freight forwarder: A company that organizes and coordinates the transportation of cargo on behalf of the shipper, working with carriers and other providers.
FTZ: Foreign-Trade Zone: a site in the United States, authorized by the FTZ Board and supervised by CBP, where goods can be stored or processed with deferred or reduced duties.

HS code: The Harmonized System number that classifies goods for customs. The first six digits are international; countries add more digits.

Incoterms®: Rules published by the International Chamber of Commerce that define the responsibilities, costs and risks of seller and buyer in a sale, such as FOB, CIF or DAP.

LCL: Less than Container Load: cargo from several shippers shares one container.
Lowboy: A trailer with a very low deck used to transport tall or heavy equipment by road.

NVOCC: Non-Vessel Operating Common Carrier: a company that issues its own bills of lading for ocean transport without operating vessels.

OOG: Out of Gauge: cargo whose dimensions exceed the limits of a standard container.
Open top: A container without a rigid roof, loaded from above with a crane, for tall cargo.

Packing list: A document that details the contents, packaging, weights and dimensions of each package in a shipment.
Port of discharge (POD): The port where the cargo is unloaded from the vessel.
Port of loading (POL): The port where the cargo is loaded onto the vessel.

Ro-Ro: Roll-on/Roll-off: vessels designed for cargo that rolls aboard, such as vehicles and machinery on wheels or tracks.

Transloading: Transferring cargo from one mode or type of equipment to another, for example from a container to a truck.

Volumetric weight: A weight calculated from the dimensions of a package. In air freight it is commonly length × width × height in centimeters divided by 6,000.

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