Shipping Terms Glossary

This glossary explains common terms used in shipping, freight, logistics, and international trade operations. It is designed to help importers, exporters, and logistics teams better understand key terminology used across transport, documentation, customs, warehousing, cargo handling, and commercial operations.

A. Transport & Freight Terms

• Air Waybill
  An Air Waybill, or AWB, is a required air cargo transport document that forms the contract of carriage between the shipper and the air carrier. It also serves as a shipment record, proof of receipt, tracking document, and source of key cargo information such as shipper, consignee, origin, destination, weight, charges, and handling instructions.
• Bill of Lading
  A Bill of Lading, or B/L, is a legal shipping document issued by a carrier to confirm receipt of cargo and record the contract of carriage. In sea freight, it may also function as a document of title, allowing the lawful holder of the original B/L to claim or transfer rights to the goods.
• FCL
  FCL stands for Full Container Load and refers to a container shipment booked for the exclusive use of one shipper, even if the container is not completely full. Because the container normally remains sealed from origin to destination, FCL is often preferred for larger, high-value, sensitive, or time-critical shipments.
• LCL
  LCL stands for Less than Container Load and refers to a containerized shipping method in which cargo from multiple shippers is consolidated in one container. It is commonly used for smaller shipments, with freight usually charged based on the volume or space used rather than the full container.
• Feeder Service
  A feeder service is a short-sea or regional transport service that connects smaller ports with major deep-sea hub ports. It is used to consolidate cargo toward a mainline ocean service or redistribute cargo from a hub port to secondary ports.
• Transshipment
  Transshipment is the transfer of cargo or containers from one vessel or means of transport to another during the journey to the final destination. In customs and port operations, it normally takes place under control procedures, and the goods should remain in the same condition before and after transfer.
• Through B/L
  A Through Bill of Lading is a bill of lading covering the movement of goods from the point of origin to the final destination, often across more than one transport leg, carrier, or mode. Depending on its terms, it may cover the whole route as one transport document, although the issuing carrier’s responsibility should always be checked against the specific B/L conditions.

B. Cargo Handling, Stowage & Equipment

• Container
  A container is a standardized intermodal freight unit designed to carry goods safely across sea, road, rail, or multimodal transport routes. It allows cargo to be transferred between different modes of transport without unloading and reloading the goods themselves.
• Reefer
  A reefer is a refrigerated container equipped with a temperature-control system for cargo that must be kept within a specific temperature range. It is commonly used for perishable, pharmaceutical, chemical, and other temperature-sensitive goods.
• Pallet
  A pallet is a flat transport platform used to unitize, store, handle, and move goods more efficiently. It enables safer and faster handling by forklifts, pallet jacks, and other warehouse or transport equipment.
• Stuffing
  Stuffing is the process of loading cargo into a shipping container before transport. It involves arranging, distributing, and securing the goods properly to optimize space and reduce the risk of cargo damage during transit.
• Destuffing
  Destuffing is the process of removing cargo from a shipping container after arrival or before onward distribution. It may include unloading, checking, sorting, and preparing the goods for storage, delivery, or further transportation.
• Under Deck Stowage
  Under deck stowage refers to cargo stowed below the vessel’s deck, usually inside the ship’s cargo hold. This type of stowage provides greater protection from weather, sea exposure, and external handling risks compared with cargo carried on deck.
• Heavy-Lift Charges
  Heavy-lift charges are additional handling fees applied when cargo is too heavy or oversized to be handled with standard lifting equipment. These charges usually cover the use of special cranes, rigging, manpower, or other handling resources required for safe movement.
• Stowage
  Stowage is the proper placement, distribution, and securing of cargo inside a vessel, container, vehicle, or transport unit to support safe carriage and reduce the risk of shifting, damage, or instability.

C. Shipping, Customs & Trade Documents

• Certificate of Origin
  A Certificate of Origin is a trade document that states the country where the goods originate. It is often required by customs authorities, buyers, banks, or trade partners for import clearance, tariff treatment, or trade documentation.
• Consular Invoice
  A Consular Invoice is an invoice for an international shipment that is certified or endorsed by the destination country’s consulate and used by customs to verify shipment details such as value, quantity, and description of goods.
• Legalized Invoice
  A Legalized Invoice is a commercial invoice whose signature, authenticity, or official status has been certified and legalized by the required authority, chamber, embassy, or consulate so it can be accepted in the destination country.
• Delivery Order
  A Delivery Order is a document issued by a carrier, shipping agent, or authorized logistics party that permits the release of cargo to the consignee or another designated representative.
• Delivery Note
  A Delivery Note is a document used at delivery to identify the goods delivered, confirm receipt, and record any visible shortage, damage, overage, wrong delivery, or other discrepancy.
• Letter of Credit
  A Letter of Credit is a bank-issued written payment undertaking in which the issuing bank agrees to pay the seller, on behalf of the buyer, when the required documents are presented in compliance with the agreed terms.
• Clean B/L
  A Clean Bill of Lading is a bill of lading issued without any clause or notation that expressly states a defective condition of the goods or their packaging. The word “clean” does not always need to appear on the document if no such defect or reservation is recorded.
• Negotiable / Non-negotiable B/L
  A negotiable Bill of Lading can be transferred to another party and may allow the lawful holder to claim the goods through endorsement or delivery terms. A non-negotiable Bill of Lading names a specific consignee and generally cannot be used to transfer title or ownership rights to a third party.

D. Warehousing & Storage

• Warehouse
  A warehouse is a planned facility where goods are received, stored, handled, prepared, and dispatched as part of the supply chain.
• Bonded Warehouse
  A bonded warehouse is a customs-controlled storage facility where imported or transit goods can be kept under customs supervision before duties, taxes, or clearance formalities are completed.
• Storage
  Storage is the activity of keeping goods in a warehouse, terminal, logistics center, or other facility until they are needed for movement, release, distribution, or further processing.

E. Commercial, Cost & Operational Terms

• Demurrage
  Demurrage is a time-related charge applied when cargo, containers, or vessel operations exceed the agreed free time or laytime. In container shipping, it usually applies when a loaded container remains at a marine terminal beyond the allowed free period before pickup, customs clearance, or release.
• Detention
  Detention is a time-related charge that usually applies when a container is kept outside the terminal beyond the agreed free period. It is commonly charged after the consignee has picked up the container but has not returned the empty container within the allowed time.
• Commodity Rate
  A commodity rate is a freight rate applied to a specific type or category of goods on a defined route or between designated transport points. It is commonly used when the cargo qualifies under a published tariff or carrier rate for that commodity instead of a general cargo rate.
• Incoterms
  Incoterms are internationally recognized trade rules that define the main responsibilities of buyers and sellers in the delivery of goods. They clarify how costs, risks, transport arrangements, insurance, export clearance, and import responsibilities are allocated in international trade transactions.
• Cut-off Date / Closing Date
  A cut-off date, also known as a closing date or cut-off time, is the latest deadline by which cargo, containers, or required shipping documents must be submitted for a scheduled departure. Missing this deadline may result in the cargo being rolled to a later vessel, flight, or transport schedule.