A curated list of logistics, shipping and freight forwarding terms we regularly use in our work and client communication.
A statistical, random sample based on the lot size. This is the least tolerable process with an average rate that can still be considered acceptable. The resulting result provides information about the quality of the total quantity.
A contract between the sender and the carrier. It serves as confirmation of receipt of goods to be transported, as a dispatch note, as a transport cost calculation, and as proof of insurance. It serves customs authorities as proof of dispatch, transit and receipt of goods.
The most comprehensive form of insurance for the transportation of goods. It applies to damage or loss of goods caused by an accident.
A hedge provided by US Customs, effective over a 12-month period. It is a financial guarantee between three parties: the insurance company issuing the bonds, the principal, and the customs and border guards.
Provided to protect the U.S. manufacturing industry from foreign manufacturers who sell goods in the United States at less than real value.
A document from the International Convention used for the duty and tax free import of goods. It is a passport for goods, valid in all countries that have signed the agreement (75 countries, including all EU countries).
Airport terminal fees that arise during physical processing in the customs warehouse. They apply to both import and export goods.
The IT solution of the German customs administration ('Automated Tariff and Local Customs Processing System') for electronic customs clearance and monitoring of cross-border goods traffic. Companies must transmit import and export declarations electronically via ATLAS. It replaced paper-based customs clearance in July 2009.
Introduced in 2004 by US Customs. Airlines and shipping companies must provide accurate details of the cargo within a specified timeframe when shipping to US ports and airports.
Calculated by shipping companies based on fluctuating oil prices so that possible financial losses in fuel costs can be offset.
A document used as confirmation of the contract of carriage between the sender and the charterer. It serves as the main document for transportation and is required for customs clearance. Used only for ocean freight.
A list that describes each component and the quantity in a device. It is used as a recipe for a product and a tool for calculating costs.
A percentage surcharge for liner shipping intended to offset possible financial losses for the carrier due to fluctuating exchange rates.
The freight forwarder's right to keep delivered goods until they have been fully paid for transport. The goods may be used as security if payment is not made.
Responsible for settling invoices between the freight forwarder and the IATA (International Air Transport Association). Can also be used by airlines outside of IATA.
A commercial document that confirms a specific country as the country of origin or production of goods.
of packages, and description of goods.
Incurred at the delivery or receiving point (container freight station) of the ship's cargo at the destination port. A fee that depends on the container size.
An additional fee for renting the chassis required to carry and transport full container loads.
Occurs when the truck chassis is not located in the same place as the sea freight container. The trucking company may charge a chassis split fee for picking up or returning the chassis to a different terminal.
An additional fee that applies to retrofitted trucks in Long Beach, CA to reduce CO2 emissions and pollution. The fee is $20 for a 20-foot ISO container.
A date by which goods must be delivered to the port or department store in order to avoid additional charges.
The master shipper who allocates space for an LCL shipment.
A facility where shipments are checked and weighed before being loaded onto an airplane, ship, or truck for transport.
A U.S. bond that is legally binding for 12 months.
A person who transports goods to a buyer. Common modes of transport include air, sea, truck, and rail.
Provided to protect the U.S. manufacturing industry from foreign manufacturers. Apply when a foreign government provides sufficient subsidies enabling manufacturers to sell goods more cheaply than U.S. manufacturers.
Delivers documents between carriers or customs agents and ports or airlines.
The process of clearing shipments through customs authorities. Usually a service carried out by the freight forwarder or customs agent.
Goods for which customs duty has not yet been paid, subject to customs control until payment is made. Stored in a special customs warehouse.
Also called the goods number, forms the basis for identifying goods and for their correct customs clearance and taxation. Within the EU, customs tariff numbers have eight digits for exports and eleven digits for imports.
A procedure allowing goods from outside the EU to be stored in EU warehouses without incurring customs duties until they are removed from the warehouse.
The process of unpacking goods from a container or unloading them from a ship.
Authorizes the delivery of goods to be picked up by designated parties. Must be presented before collection.
A fee for collecting and delivering goods from the domestic port to the airport or final destination.
A document that authorizes a designated party to collect a delivery of goods. Must be presented before collection.
Covers the processing of the delivery of goods at the destination port.
An ocean freight insurance term meaning 'damage' to the goods being transported, in extreme cases also to the ship.
Occurs when the delivery trucker is required, due to time constraints, to drop off an FCL container at the warehouse to be unloaded and pick it up after unloading is complete.
A retail fulfillment method allowing the online seller to sell products without producing or storing them. The drop shipper takes the order, pays the manufacturer, and the manufacturer ships directly to the customer.
The process of the truck driver delivering goods to the destination, leaving the container for a few hours, and then taking it back to the warehouse.
The customs tariff applicable in Germany for handling imports and exports. Based on the Taric but also contains nationally valid data such as excise duties, import/export bans, and anti-dumping duties. Replaced printed customs tariff in 1999.
A system enabling traders to be clearly registered and identified in relation to customs. Customs authorities assign one EORI number to all companies and individuals who want to import or export goods. Valid across the EU.
The expected departure time of a goods delivery at the port of origin.
Incoterms conditions stipulating that the buyer is responsible for organizing collection of goods from the supplier's warehouse or plant and transit to the final destination.
Contains regulations on value-added tax that make it easier for German importers to import goods from third countries into Germany via another EU member state. Allows deferring VAT payment for a liquidity advantage.
Companies that take over the physical transport of cargo via aircraft, line freighters, trucks, etc. Often also offer comprehensive service packages including storage.
Transport contracts concluded on the basis of international freight law. Guarantee uniformity of rules, set minimum liability standards, and document rights of dealers, charterers, and contractual partners.
Companies that take care of shipping. They conclude contracts with shippers and ensure goods are moved from origin to destination.
Usually calculated for the fuel costs incurred by the carrier.
Full Truck Load – a quantity of goods representing the entire load of a truck. Contrasts with LTL (Less than Truck Load).
A delivery of goods large enough to fill a container for transit. Containers can be 20″ or 40″, referred to as FCL 20″ or FCL 40″.
A generator unit that attaches to a refrigerated (reefer) container for perishable goods transported overseas or by truck. Usually both electric and fuel powered.
The weight of a delivery including packaging. A container is weighed including cargo.
Created in 1986 to share the cost of US harbor maintenance. Calculated at 0.125% of the value of cargo shipped through identified seaports. Collected by CBP at the time of entry.
Fee for the transportation of containers around the port, as well as handling, storage and other services. Calculated per metric ton or cubic ton.
A bill of lading issued by the transport company once it has received the goods to be shipped from the shipper.
Product classification codes used by the World Customs Organization to identify and classify all types of commodities for customs procedures. A six-digit code used to standardize shipping worldwide.
A global merchant ship organization founded in 1921 and based in London. Around 80% of merchant ships are represented.
The entity or person who assumes responsibility for ensuring legal goods are imported in accordance with the laws of the destination country. Responsible for documentation, classification, valuation, and payment of duties.
A document requested by US authorities that must be submitted at least 24 hours before shipment begins.
The organization relating to materials or goods being brought to a manufacturer, supplier, warehouse or store. Focuses on planning, control, and provision.
International trading rules regarding purchase and shipping that determine which costs buyers and sellers are responsible for.
Part of multimodal transport; a multi-part transport chain in which freight is transported with two or more modes of transport without changing the transport container.
A UN specialized agency responsible for reducing marine pollution from ships and international regulation of merchant shipping matters.
Goods from third countries are imported into the EU to be processed, without customs duties on import. After processing, goods are either exported or released for free circulation within the EU.
A unique bond issued in conjunction with the ISF if the Annual Customs Bond has not yet been deposited for the importer.
A fee incurred by picking up and sending a delivery of goods from a domestic port or airport to the final destination.
Deliveries of goods not large enough to fill a container, consolidated and shipped together with other deliveries travelling the same route.
A carrier fee for moving a full container load from the truck to another location. With the RoRo process, cargo is driven onto the ship instead.
A cargo ship that continually arrives at ports at specified times to load or unload goods.
Original boxes that are not palletized. In air freight, loose cargo optimizes the cargo capacity of the aircraft.
A list of the cargo carried on board a ship, also known as the 'cargo list' or 'cargo manifest'. Required by customs for verification.
The load capacity of a ship including the crew. Units of measurement include metric tons and long tons.
A fee collected by US Customs and Border Protection on almost all imports into the United States. Assessed at 0.3464% of the overall value of merchandise for formal entries ($2,500 and above).
The lowest fee that a carrier charges for transportation between two ports.
The type of transportation used for freight. Main types are air, sea, truck, and rail transportation.
The weight of a delivery without the weight of the packaging.
The cost of weight and mass for the transportation of goods across the ocean.
A confirmation document that cargo has been loaded on board the ship named in the bill of lading as the official transport ship.
Loads whose dimensions are larger than the standard dimensions of a container. Special open top containers with excess height are used.
The organization of the transport of goods to the customer or end user. Also referred to as distribution or sales logistics.
A shipping company that does not belong to a conference.
Goods from the EU are temporarily exported to be processed in a non-EU country, then imported back. Only the added value (cost of finishing) is subject to customs duties on re-import.
When a truck driver picks up goods, they often bring pallets to exchange. If no pallets are brought, a fee is charged for the pallet exchange.
An additional temporary fee required during high season (usually August to October) when space on ships becomes scarce.
An additional charge if cargo is moved out of Los Angeles or Long Beach ports during peak daytime hours on weekdays. Part of the OffPeak Program to reduce traffic congestion. Current fee: $72.09 per TEU for FCL shipments.
The port in which the delivery is loaded onto the plane, ship, or truck.
The port in which the delivery is unloaded from the plane, ship, or truck.
A signed receipt for the delivery, issued by the transport company and signed by the recipient. Any defects or damage must be noted.
The direct cause of damage. The insurance company investigates the exact cause of damage or loss of goods.
Insulated containers equipped with cooling units. Used mainly for transportation of food and must meet ISO standards.
Customs fees paid for an export that was previously imported. Customs duties are ultimately eliminated since the goods are not consumed in the country.
The weight unit used to calculate the freight price. Usually a cubic meter or 1,000 kg.
Refers to the movement of a delivery of goods over a short distance, e.g. from the warehouse to the port or vice versa in the same urban area.
A document for all customs duties, valid in various parts of the world including the EU and China.
A two- to four-digit letter code that serves to identify the carrier.
A numbered metal bar used to seal cargo containers. The level of security depends on the type of seal.
An additional fee charged for sea and air transportation. For air transport, it depends on the weight of the freight; for sea transport, it depends on the container, unit of weight, or bill of lading.
Occurs when freight is already on the way to the recipient, but the recipient no longer needs the goods and takes back the order.
US customs commitments that are only valid for the processing of a single delivery of goods.
Includes the processing of a delivery of goods at the destination port.
Allows goods from non-European countries to be transported within the EU, EFTA countries, Turkey, North Macedonia, and Serbia without paying customs duties at individual border crossings. Customs duties only apply at the final destination.
A type of customs exam where a Customs officer opens the doors of a container and inspects the interior. Usually takes 5-6 days.
A container designed for the transport of liquids, gases, and powders.
The Integrated Tariff of the European Communities. Used for processing EU imports and exports. Uses a ten-digit code number to assign goods to respective tariff rates.
An electronic release of goods by the seller.
A fee incurred for the processing of goods deliveries at the destination port.
A route used by ocean freight to move goods from start to destination.
An insurance company's right of counterclaim. If goods are damaged or lost, the transport company can also be held responsible.
The travel time between the departure of the goods delivery from the place of origin and their arrival at the destination port.
Special containers and pallets used to load cargo into an aircraft. Made of aluminum, plastic, or a mixture. Used to save time and reduce the number of units to be loaded.
Taking a shipment of goods from a truck, ship, or plane.
Cargo worth $1,000 or more per kilogram, or containing valuable items such as metals, banknotes, pearls, diamonds, jewels, gold, checks, activated bank and credit cards, or platinum.
A rule that determines where freight insurance coverage ends, including a period after delivery of goods to their destination.
The unit of measure used to calculate the air freight or ocean freight rate.
A fee incurred for the processing of a delivery of goods at the destination port.
Liner fees charged for the transport of LCL and FCL containers.