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Freight glossary: shipping terms explained

The words you will meet in freight quotes and shipping documents, explained in plain language.

Reference · 6 min read

Documents

  • AWB (air waybill): the air freight transport document and receipt for the goods.
  • B/L (bill of lading): the sea freight transport document; an original B/L can also give title to the goods.
  • CMR: the consignment note for international road transport.
  • Commercial invoice: the seller’s invoice used for customs valuation.
  • Packing list: the contents, weights and dimensions of each package.

Charges

  • BAF (bunker adjustment factor): a fuel surcharge on sea freight.
  • THC (terminal handling charge): the fee for handling containers at the port terminal.
  • Demurrage: the charge when a container stays in the terminal beyond the free days.
  • Detention: the charge when you keep the carrier’s container outside the terminal beyond the free days.
  • Freight rate (in Italian “nolo”): the price of the main transport leg.

Cargo and capacity

  • CBM: cubic metre, the unit used to measure cargo volume.
  • Chargeable weight: the greater of actual and volumetric weight.
  • FCL / LCL: full container load / less than container load (groupage).
  • TEU: twenty-foot equivalent unit, a measure of container capacity.
  • Reefer: a temperature-controlled container.
  • W/M: weight or measure, the LCL pricing basis (1 m³ or 1,000 kg).

Places and people

  • CFS (container freight station): the warehouse where LCL cargo is consolidated and separated.
  • POL / POD: port of loading / port of discharge.
  • ETD / ETA: estimated time of departure / arrival.
  • Freight forwarder: the company that organises the shipment on your behalf.
  • Customs broker: the specialist who lodges customs declarations.

Customs and trade

  • EORI: the EU registration number required for customs operations.
  • HS code: the international commodity code used to classify goods.
  • TARIC: the EU database of duty rates and trade measures.
  • Incoterms®: ICC rules that split costs and risks between seller and buyer.

Frequently asked questions

What is the difference between demurrage and detention?

Demurrage applies while the full container waits in the terminal after the free days; detention applies while you keep the container outside the terminal beyond the free days.

What does THC mean in a freight quote?

Terminal handling charge: the fee for moving the container in the port terminal, charged at origin and at destination.

This guide gives general planning information. Confirm the requirements for your specific goods and route with your provider or customs broker.

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