Logistics and trade glossary

MultimodalMultimodal transport

Transport using at least two modes under one contract, with one party responsible for the whole route. Learn moreGeneral

AS/RSAutomated Storage and Retrieval System

High-bay racking with robots or automated cranes moving goods in and out; saves floor space. Learn moreInfrastructure

AWBAir Waybill

Air transport document, non-transferable; comprises the master air waybill (MAWB) and the house air waybill (HAWB). Learn moreDocuments

B/LBill of Lading — ocean transport document

Document issued by the carrier: a receipt for the cargo and evidence of the contract of carriage; the to-order type is transferable. Learn moreDocuments

C/OCertificate of Origin

Document certifying the country of origin of the goods; a condition for preferential tariff rates under trade agreements. Learn moreTrading

CBMCubic Metre

Cargo volume = length × width × height (m) × number of packages. Used to calculate LCL freight and to choose the container type. Learn moreGeneral

CFSContainer Freight Station — LCL warehouse

Warehouse for consolidating and deconsolidating LCL cargo: stuffing several shipments into one container or unstuffing LCL cargo for delivery.Infrastructure

TransshipmentTransshipment

Cargo is transferred from one vessel, aircraft or vehicle to another at an intermediate point before reaching its destination.General

CIF / CIPCost, Insurance and Freight / Carriage and Insurance Paid To

The seller pays freight and buys insurance to the destination; risk still transfers in the export country. CIP requires a higher level of insurance cover than CIF. Learn moreTrading

CO₂eCarbon dioxide equivalent

CO₂ equivalent — converts other greenhouse gases into CO₂ so they can be added together; used when calculating transport emissions. Learn moreGeneral

Cut-offClosing time for cargo and documents

The final deadline to gate in containers, submit documents or deliver cargo to the air cargo terminal before the sailing or flight.General

D/ODelivery Order

Document issued by the shipping line or its agent allowing the consignee to collect the cargo at the port or warehouse.Documents

DAP / DDPDelivered At Place / Delivered Duty Paid

The seller bears risk to the destination; under DDP the seller also handles import clearance and import duties. Learn moreTrading

DEMDemurrage — container charge inside the port

Charge applied when a laden container remains in the port yard beyond the free days. Learn moreCharges

DETDetention — container charge outside the port

Charge applied when the shipper keeps a container outside the port (at the warehouse) beyond the free days before returning the empty. Learn moreCharges

Door-to-doorFrom the shipper's door to the consignee's door

Service scope from the shipper's warehouse to the consignee's warehouse, including all legs and formalities in between. Learn moreGeneral

ETD / ETAEstimated Time of Departure / Arrival

Estimated time of departure / arrival of the vessel, aircraft or vehicle. Learn moreGeneral

EVMEarned Value Management

Method for tracking project schedule and cost against plan using indices such as SPI and CPI. Learn moreInfrastructure

FCLFull Container Load

A single shipper books an entire container; the container is stuffed and sealed at the shipper's warehouse and opened only at the consignee's warehouse. Learn moreSea

FOB / FCAFree On Board / Free Carrier

FOB: risk transfers once the cargo is on board the vessel (sea and inland waterway only). FCA: risk transfers on handover to the carrier — suited to containers and all modes. Learn moreTrading

FTAFree Trade Agreement

Agreement between countries allowing import duties to be reduced or eliminated for goods that meet the rules of origin. Learn moreTrading

Landed costLanded cost

Total cost of bringing goods to the warehouse: purchase price, freight, insurance, duties, port charges, customs clearance and inland transport. Learn moreTrading

Oversized and heavy-lift cargoOut of gauge / heavy lift

Cargo exceeding the normal dimensions or load capacity of a vehicle; requires a route survey and a road permit. Learn moreRoad

ICDInland Container Depot

Inland customs clearance and container consolidation point, connected to seaports by road, rail or inland waterway. Learn moreInfrastructure

Incoterms®ICC rules for delivery terms

A set of rules defining the place of delivery, the point of risk transfer, and which party pays freight, insurance and customs clearance between seller and buyer. Learn moreTrading

IntermodalIntermodal transport

Cargo travels by several modes in the same loading unit (usually a container) without being unloaded when the mode changes. Learn moreGeneral

ISO 6346Container identification code

Standard for container codes: owner code, serial number and check digit, together with size and type codes. Learn moreSea

Track gaugeTrack gauge

The distance between the two rails; networks with different gauges require transshipment or dual-gauge track at the connection point. Learn moreRail

LCLLess than Container Load

Several shippers share one container; the cargo is consolidated and deconsolidated at a CFS. Freight is charged per freight unit (W/M). Learn moreSea

Rail through transportThrough transport (rail)

Cargo moves by rail across borders on a single document under the agreement applicable to the route; it may be transshipped at a border station. Learn moreRail

HS codeHarmonized System code

Internationally shared goods classification code; determines tariff rates, regulatory policy and specialised inspection requirements. Learn moreTrading

MBL / HBLMaster / House Bill of Lading

The master B/L is issued by the shipping line to the consolidator; the house B/L is issued by the consolidator to each shipper. Learn moreDocuments

MTOMultimodal Transport Operator

Operator of multimodal transport — signs one contract and issues documents for the whole route; a licence is required. Learn moreGeneral

Border infrastructure feeBorder infrastructure fee

Local fee levied on vehicles and goods passing through road border gates. Learn moreRoad

ReeferRefrigerated container

Container with a refrigeration unit to keep cargo at a set temperature; requires power in the yard and on board and temperature control throughout the journey. Learn moreSea

BargeBarge

Inland waterway craft carrying containers or bulk cargo between seaports, river ports and ICDs. Learn moreInland waterway

Sea-airCombined sea and air

Cargo goes by ship to a transshipment port, then flies the remaining leg; time and cost fall between the two modes. Learn moreGeneral

Sea waybillNon-negotiable ocean transport document

A non-transferable transport document; the consignee named on it collects the cargo without presenting an original. Learn moreDocuments

StoragePort storage charge

Charge collected by the port when cargo or containers remain in the yard beyond the free time; distinct from DEM, which is collected by the shipping line. Learn moreCharges

Telex releaseRelease of cargo without an original B/L

The shipping line surrenders the original bill of lading at origin and instructs its destination agent to release the cargo without an original.Documents

THCTerminal Handling Charge

Charge collected by the shipping line from the shipper to recover container handling costs at the ports of loading and discharge. Learn moreCharges

Transit timeTime in transit

Time from when the vessel, aircraft or vehicle leaves the origin until it arrives at the destination; differs from door-to-door time. Learn moreGeneral

Chargeable weightChargeable weight

The greater of actual weight and volumetric weight; light, bulky cargo is charged by volume. Learn moreAir

ULDUnit Load Device — air cargo pallet or container

Specialised aircraft loading equipment (pallets, containers) used to load cargo into the hold. Learn moreAir

UN/LOCODECode for trade and transport locations

The United Nations' 5-character code for ports, airports, stations and trade locations. Learn moreGeneral

VGMVerified Gross Mass

The mass of a packed container must be verified and declared before loading on board, under the SOLAS convention. Learn moreSea

W/MWeight or Measurement — LCL freight unit

LCL freight is charged on the greater of weight (tonnes) and converted volume (m³). Learn moreSea

Well-to-wheelFrom fuel production to combustion

An emissions accounting method that includes fuel production and transport, not just combustion. Learn moreGeneral

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Explanations for quick reference; specific rules follow the contract, the rules of the issuing organisation and current regulations.