Shipping Terms Glossary

At Easyship, we know that the world of shipping can be filled with confusing words and phrases. That's why we wanted to create a glossary of key shipping terms. Now, whether you're speaking to a courier about rates and services or talking to customers about different delivery options, you'll always know what freight terms or shipping abbreviations to use. Now go forth and ship!

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3PL

A fourth-party logistics (4PL) provider handles the entire logistical operations for manufacturing companies, including managing resources, technology, infrastructure, and can include the oversight of external 3PLs. They design, build and provide supply chain solutions for medium and enterprise businesses.

4PL

A fourth-party logistics (4PL) provider handles the entire logistical operations for manufacturing companies, including managing resources, technology, infrastructure, and can include the oversight of external 3PLs. They design, build and provide supply chain solutions for medium and enterprise businesses.

A
API

An Application Program Interface (API) is a set of routines, protocols, and tools for building software applications. Basically, an API specifies how software components should interact.

Agent

In the operations of a port, a licensed agent transacts the cargo ship's business, such as insurance or documentation, for the owner.

Arrival Notice

Arrival Notice is a notification provided by the carrier when a shipment has arrived at it's destination.

B
Base Rate

A base rate is the shipping cost of a parcel before potential surcharges and fees (such as handling or residential) are applied.

Bill Of Lading

A legal document issued by couriers to shippers, that details the type, quantity and destination of the goods being carried.

Bonded Warehouse

A bonded warehouse is a warehouse operated by a private company in a foreign country.

Bulk Cargo

Bulk cargo is commodity cargo transported unpackaged in large quantities.

Bulk Shipping

A large quantity of goods shipped between geographical destinations.

C
CIF

Cost, insurance and freight(CIF) is an expense paid by a seller to cover the cost, insurance and freight of a buyer's order while it's in transit.

Carrier

A company or a person legally entitled to transport goods by land, water or air.

Carrier Liability

When a carrier is responsible for shipment losses, damages or delays

Certificate Of Origin

An important international document declaring the country a package was originaling exported.

Claim

A legal demand made by a shipper or consignee aganist a carrier in respect to damaged or lost packages.

Consignee

An entity of who is financially responsible for receipt of a shipment.

Courier

An individual or business responsible for the exchange of items between two or more parties.

Cross Border Shipping

When a goods are transported from one country to another country.

Customs Invoice

A document included with international parcels containing the required information about the goods inside the parcel.

Custom Clearance

The custom clearance process managed by counries of allowing import or export goods into and out of their country based on variable legal requirements

Customs

An offical government department that administers the import of goods into a country

Customs Broker

A licensed firm responsible for faciliating the shipment and delivery of goods accross borders.

Customs Duty

A tax imposed on the import and export of goods when they are transported across borders.

Crowdfunding

A method of raising small amounts of money from a large group of people for a project, product or business through the internet.

D
DDP

Delivery Duty Paid shipping is a type of delivery where the sellers takes responsibility for all the fees and risk of shipping goods.

DDU

Delivery Duty Unpaid is a type of delivery where buyers has to pay for all import customs clearance, duties, and taxes upon delivery.

Dimension Weight Charge

Shipment pricing method by couriers where the size of the package is charged over the weight.

Dispatch

Refers to a stage in shipping when a product is packed and ready to ship.

Distribution Center

A legal demand made by a shipper or consigneeA large warehouse hub specialized for retailers and wholesellers where goods are redistributed to other locations or customers. aganist a carrier in respect to damaged or lost packages.

Door-To-Door

A type of shipping container that will be picked up from a warehouse and delivered to the location decided by the customer.

Drayage

Shipping goods a short distance via ground freight.

Dropshipping

An individual or business responsible An online retail order fulfillment model where, instead of stocking products in a store, they are purchased directly from third-party suppliers and shipped directly to customers.for the exchange of items between two or more parties.

Duties And Taxes

Government charges collected on the importing and exporting goods.

E
ETA (Estimated Time Of Arrival)

The date or time that a shipment is predicted to arrive at the location a customer provides.

Exempt Carrier

A company operating vehicles performing services or carrying goods, that are not subject to the regulatory laws.

Expedited Shipping

A type of freight shipping where goods and shipments will be delivered at a faster time than standard shipping.

Export

The shipment of goods from one country to another country.

F
Final Mile

Final section of the parcel’s delivery journey, usually from the distribution warehouse to the location costomer provided.

Fob

A type of shipping where the supplier retains ownership and responsibility for goods until they are loaded ‘on board’ a shipping vessel

Free Trade Zone

A geographic area where goods may be landed, stored, handled, manufactured, reconfigured and re-exported.

Freight

The bulk commodities and goods located in a container shipped by truck, train, ship, or aircraft.

Freight Shipping

The physical process of transporting bulk commodities and goods by truck, train, ship, or aircraft.

Fuel Surcharge

An extra fee that trucking companies (or third parties) charge to cover the fluctuating cost of fuel

Fulfillment

The process of receiving, packaging and shipping goods.

Full Container Loaded (FCL)

All goods in the container are listed on a single Bill of Lading, and are owned by a single party.

Full Truck Loaded (FTL),

ull truck loaded, meaning shipment will take up an entire truck by itself.

G
Goods and Services Tax (GST)

A form of value-added tax levied by governments on most products sold to the general public.

Gross Weight

The entire weight of goods, packaging and container ready for shipment.

H
Harmonized Systems

An internationally standardized system of names and numbers to classify traded products.

Haulier

A business or a person that transports goods by road

Hazardous Material

A substance or material that determined is capable of posing risk to health.

I
In-Transit

The package is being transported

Inbound Logistics

Receiving, storing, and disseminating incoming goods or material for use.

Intermodal Transportation

Freight shipped using two or more modes of transportation.

Inventory Management

Supervision of inventory and replenishment of stock at optimal levels to make sure goods are always available for sale

Invoice

An accounting document used by businesses to provide a record of the products shipped from a seller to a buyer.

J
Just In Time

A method of inventory control where goods must arrive at the warehouse at a specific time before being sold.

K
Kilogram

The basic unit of mass in the International System of Units(SI)

Kitting

The process of taking different yet related SKUs and combining them in a pakage to create a new SKU.

L
LCL (Less than Container Load)

Sea shipping cargo loads that are not large enough to fill a full shipping container.

LTL (Less-than-truckload shipping)

A transportation of shipment or goods that does not require a full truckload.

Labels

A type of identification on a package describing what's inside a package, consisting of information like addresses, names, weight, and a tracking barcode.

Landed Costs

Total price of a good or shipment that has arrived to customer.

Landing Certificate

A document issued by Customs in a destination country confirming that a particular shipment was entered/cleared through Customs

Logistics

The overall process of how shipments are acquired, stored, and transported to final destination.

M
Manifest

A Transport document that gives a detailed summary of all bills of lading or air waybills issued by a carrier

Minimum Charge

The lowest charge that can be assessed to transport a shipment.

N
Net Weight

The base weight of a product by itself, excluding the package

O
Origin

The location where a shipment is first picked up for transportation and delivery.

Outbound Logistics

A process of storing, transporting and distributing goods and shipment to customers

P
Packing List

A document which details the contents, dimensions and weight, of each package.

Packing Slip

A packing slip is a document listing and recording the items sold which accompanies the goods in a parcel.

Payment Terms

Legal lenaguage describing how money will be paid in a transaction.

Pickup

A service of picking cargo up at shipper´s premises

Pod (Proof of delivery)

An essential document proving that a delivery has been completed.

Q
Quarantine

The process of setting aside goods until appropriate tests can certify the safety of the goods over a period of time.

Quota

A numerical limit on how much of a good or product can be imported during a specific time.

Quotation

An offer to sell goods at a stated price under stated conditions.

R
Rate Basis

The formula of specific factors that play a role in determining freight rates.

Residential Surcharge

A fee added to shipping services from shipping carriers to the delivery a package to a residential address, rather than a business address.

Return Address

The address of the sender of a parcel indicating where it should be returned if it cannot be delivered

S
SKU (Stock Keeping Unit)

Used by sellers to identify and track their inventory.

SMEs

Small and medium-sized businesses whose personnel numbers fewer than a certain limits

Shipper

A person or business responsible for preparing the shipment and cosigns the product to the carrier

Shipping Documents

Forms that accompany a shipment which included date and method of shipment and quantities and specifications of goods.

Shipping Order

A document issued by the carrier to specify what items are to be transferred and confirms a shipment's booking on a vessel

Software as service (SaaS)

Cloud software that is licensed on a subscription basis and delivered through the internet.

Supply Chain Management

A processes of creating and fulfilling demands for goods and services

Surcharges

An additional fee added to a shipping cost by the carrier.

Surtaxes

An additional tax on something already taxed

T
Tariff

Duties or taxes assessed by a government on goods as they enter a country.

Transit Time

The time needed for a shipment to be delivered once it has been picked up from the point of departure

U
Unloading Charges

A charge of removal of a shipment from a vessel.

V
Value Added Service

Additiona services provided by forwarders beyond the basic service, such as: customs clearance, door delivery, or repackaging

Variable Cost

A cost or expense that rises or falls in direct proportion to production volume.

W
Warehousing

A pyshical location for the storage, consolidation and distribution of cargo.

Waybill

Document issued by carrier that includes shipment details such as origin and destination addresses, shipping method, and tracking number.

X
Xray Charges

A freight forwarder fee charged for screening any air cargo for prohibited item.

Y
Yard

A storage or switching area for goods at a warehouse.

Z
Zone Rate

A freight rate based on the number of geographic areas that a packages has to pass through during delivery.