Freight, Maritime & Customs Glossary
Plain-language definitions of the terms that show up in freight forwarding, maritime, NVOCC, ground handling, customs and EDI workflows — with diagrams, formulas and real examples, written by people who run these workflows.
106 terms defined
7 categories
20 letters covered
Freight & NVOCC
37 terms
The language of freight forwarding, NVOCC and multimodal transport — bills of lading, container loads, charges and the documents that move cargo by sea, road and rail.
Maritime & Ship Management
27 terms
Ship management, chartering, class and compliance — the terms behind vessel operations, from charter parties and dry-docking to ISM, SOLAS and MARPOL.
Supply Chain & Inventory
8 terms
The concepts and metrics of supply chain and inventory management — safety stock, reorder points, EOQ, inventory turnover, OTIF and the bullwhip effect.
Customs & Compliance
11 terms
Customs clearance and trade compliance — HS codes, AEO, free trade zones and the frameworks that govern goods crossing borders.
Air Cargo & Ground Handling
8 terms
Air freight and ground handling — air waybills, ULDs, dangerous goods and the acceptance and handling of cargo through the airport.
EDI & Standards
7 terms
Electronic data interchange standards — the message formats (EDIFACT, ANSI X12, BAPLIE, COPRAR) that let carriers, ports and customs exchange data.
AI & Analytics
8 terms
The AI and analytics ideas behind modern logistics software — machine learning, predictive and prescriptive analytics, document AI, agents and anomaly detection.
A
AEOAuthorised Economic Operator
A trusted-trader status granted by customs to operators meeting compliance and security standards.
Customs & Compliance
AI Agent
Software given a goal that plans and carries out multi-step tasks on its own, using data and tools.
AI & Analytics
Anomaly Detection
AI that flags data points or events that deviate from the norm — used for fraud, errors and risk.
AI & Analytics
ANSI X12American National Standards Institute X12
The dominant EDI standard in North America, used for trade, transport, healthcare and finance.
EDI & Standards
ASNAdvanced Shipment Notice
An electronic message that pre-announces a shipment to the receiver, listing what is en route.
Freight & NVOCC
ATA Carnet
An international customs document allowing temporary import/export of goods without paying duty.
Customs & Compliance
AWBAir Waybill
The standard transport document for international air cargo, issued by the airline (or its agent).
Air Cargo & Ground Handling
B
BAPLIEBay Plan / Stowage Plan Occupied and Empty Locations Message
The UN/EDIFACT message that communicates a container vessel's full stowage plan (which container in which slot).
EDI & Standards
Bareboat CharterDemise Charter
A charter where the charterer takes a vessel without crew or provisions and operates it as if owner.
Maritime & Ship Management
Bill of Lading (BL)
A legal document acknowledging receipt of cargo for shipment, serving as a receipt, contract, and (often) document of title.
Freight & NVOCC
BOMBill of Materials
A structured list of components, sub-assemblies, and raw materials needed to manufacture a product.
Freight & NVOCC
Bonded Warehouse
A customs-controlled facility where imported goods are stored without paying duty until they are withdrawn.
Customs & Compliance
Bullwhip Effect
The amplification of demand variability as it moves up the supply chain from customer to supplier.
Supply Chain & Inventory
Bunker
The fuel oil used by a ship's engines; "bunkering" is the act of refuelling.
Maritime & Ship Management
C
Cargo-IMPCargo Interchange Message Procedures
The legacy IATA EDI message standard for air cargo, being replaced by Cargo-XML.
EDI & Standards
CBMCubic Meter
The cubic-metre measure of a shipment's volume — the basis for pricing LCL and air freight.
Freight & NVOCC
Certificate of Origin (CO)
A document certifying the country where goods were manufactured, used for tariffs and trade-agreement eligibility.
Customs & Compliance
CFRCost and Freight
An Incoterm where the seller pays cost and freight to destination, but buyer assumes risk at the load port.
Freight & NVOCC
CFSContainer Freight Station
A warehouse facility where LCL shipments are consolidated into containers (export) or de-consolidated (import).
Freight & NVOCC
Chargeable Weight
The weight a carrier bills on — the greater of actual weight and volumetric (dimensional) weight.
Air Cargo & Ground Handling
Charter Party
A contract under which a shipowner hires out a vessel to a charterer for the carriage of cargo.
Maritime & Ship Management
CIFCost, Insurance and Freight
An Incoterm where the seller pays cost, insurance, and freight to the destination port; risk transfers at the load port.
Freight & NVOCC
CIICarbon Intensity Indicator
The IMO's mandatory rating of a ship's operational carbon intensity, A (best) to E (worst).
Maritime & Ship Management
Classification Society
A non-governmental organisation that surveys ships to verify they meet construction, equipment and operational standards.
Maritime & Ship Management
COAContract of Affreightment
A long-term contract committing a shipowner to carry a series of cargoes over a defined period.
Maritime & Ship Management
COARRIContainer Discharge / Loading Confirmation Message
The UN/EDIFACT message that confirms a container has been discharged from (or loaded to) a vessel.
EDI & Standards
Cold Chain
The temperature-controlled logistics chain for perishable goods — pharma, fresh produce, meat, dairy, biotech.
Freight & NVOCC
COPRARContainer Pre-Arrival Message
The UN/EDIFACT message that pre-announces a container's arrival to a terminal or port community.
EDI & Standards
CROCargo Release Order
A shipping line's authorisation to release a container at the destination terminal to the named consignee.
Freight & NVOCC
CUSCARCustoms Cargo Report Message
The UN/EDIFACT message used by carriers to report cargo to customs authorities before arrival.
EDI & Standards
Customs Bond
A financial guarantee that an importer will pay the duties, taxes and penalties owed to customs.
Customs & Compliance
Customs Broker
A licensed professional or company that handles customs entry filings on behalf of importers and exporters.
Customs & Compliance
D
DDPDelivered Duty Paid
An Incoterm where the seller delivers goods to the buyer's premises with all costs and duties paid.
Freight & NVOCC
De Minimis
The value threshold below which imported goods are exempt from duty and often import tax.
Customs & Compliance
Demise Charter
A synonym for bareboat charter — the charterer takes the vessel without crew and operates as if owner.
Maritime & Ship Management
Demurrage
A penalty charge for keeping a container or vessel longer than the agreed free time at a port or terminal.
Freight & NVOCC
Detention
A penalty charge for holding a shipping line's container too long after it has left the port.
Freight & NVOCC
DG (Dangerous Goods)Dangerous Goods
Cargo that poses a risk to safety or the environment, regulated by IATA DGR (air) or IMDG (sea).
Air Cargo & Ground Handling
Digital Twin
A live virtual model of a physical asset or operation, kept in sync with real data for monitoring and simulation.
AI & Analytics
Dry Dock
A specialised dock that can be drained of water so a ship's hull can be inspected and worked on out of the water.
Maritime & Ship Management
Duty Drawback
A refund of customs duties paid on imported goods that are subsequently re-exported or used to make exports.
Customs & Compliance
E
e-AWBElectronic Air Waybill
The paperless replacement for the traditional paper AWB, exchanged via EDI between forwarders and airlines.
Air Cargo & Ground Handling
EOQEconomic Order Quantity
The order quantity that minimises the combined cost of ordering and holding inventory.
Supply Chain & Inventory
ERPEnterprise Resource Planning
Integrated software for managing the back-office of a business — finance, HR, procurement, inventory, manufacturing, sales.
Freight & NVOCC
F
FCLFull Container Load
A shipment that occupies an entire container, dedicated to one shipper.
Freight & NVOCC
FDAFinal Disbursement Account
The final statement of port-call costs, reconciled against actuals, replacing the proforma DA.
Maritime & Ship Management
Feeder Operator
A shipping line that operates short-sea services connecting smaller ports to major hub ports.
Freight & NVOCC
FEUForty-foot Equivalent Unit
A container capacity unit equal to one 40-foot container, or two TEU.
Freight & NVOCC
FOBFree On Board
An Incoterm where the seller delivers goods on board the vessel at the load port; buyer pays freight, insurance, and assumes risk from there.
Freight & NVOCC
Free Trade Zone (FTZ)
A designated area where goods can be imported, stored, processed and re-exported without normal customs duties.
Customs & Compliance
FTLFull Truck Load
Road freight where one shipper books an entire truck exclusively for their cargo.
Freight & NVOCC
G
GHAGround Handling Agent
A company that provides cargo handling, passenger handling, and aircraft servicing on behalf of airlines at airports.
Air Cargo & Ground Handling
GRNGoods Receipt Note
A document recording the actual receipt of goods into a warehouse — quantities, condition, discrepancies.
Freight & NVOCC
H
H&MHull and Machinery Insurance
Marine insurance covering physical damage to the ship's hull, machinery, and equipment.
Maritime & Ship Management
HBLHouse Bill of Lading
A bill of lading issued by a freight forwarder or NVOCC to the actual shipper of the cargo.
Freight & NVOCC
HS CodeHarmonized System Code
The international standardised numeric code that classifies traded products for customs duty, statistics and regulation.
Customs & Compliance
I
IACSInternational Association of Classification Societies
The association of the 12 major classification societies that collectively classify 90%+ of world tonnage.
Maritime & Ship Management
IATA DGRIATA Dangerous Goods Regulations
The IATA manual governing the safe transport of dangerous goods by air.
Air Cargo & Ground Handling
IMOInternational Maritime Organization
The UN agency responsible for international shipping safety, security, and environmental performance.
Maritime & Ship Management
IncotermsInternational Commercial Terms
A set of standardised three-letter trade terms (EXW, FOB, CIF, DDP, etc.) defining responsibilities between buyer and seller.
Freight & NVOCC
Inventory Turnover
How many times inventory is sold and replaced over a period — a core measure of inventory efficiency.
Supply Chain & Inventory
ISM CodeInternational Safety Management Code
The mandatory IMO standard for the safe management and operation of ships.
Maritime & Ship Management
ISPS CodeInternational Ship and Port Facility Security Code
The mandatory IMO security framework for ships and port facilities, introduced after 9/11.
Maritime & Ship Management
L
Last Mile
The final segment of a delivery — from local hub to end customer's door.
Freight & NVOCC
Lay-canLaydays / Cancelling Date
The agreed window during which a vessel must arrive at the load port to be acceptable under a charter.
Maritime & Ship Management
Laytime
The time allowed in a charter party to load or discharge a vessel before demurrage applies.
Maritime & Ship Management
LCLLess than Container Load
A shipment that occupies less than a full container; multiple LCL shipments are consolidated together.
Freight & NVOCC
Lead Time
The total elapsed time between placing an order and receiving it — a key driver of inventory levels.
Supply Chain & Inventory
LLMLarge Language Model
An AI model trained on vast text that can understand and generate language — the basis of document AI and assistants.
AI & Analytics
LTLLess than Truck Load
Road freight that consolidates smaller shipments from several shippers into one truck.
Freight & NVOCC
M
Machine Learning (ML)
A branch of AI where systems learn patterns from data to make predictions or decisions, rather than following fixed rules.
AI & Analytics
MARPOLInternational Convention for the Prevention of Pollution from Ships
The IMO treaty regulating pollution from ships — oil, chemicals, sewage, garbage, air emissions.
Maritime & Ship Management
MBLMaster Bill of Lading
A bill of lading issued by the shipping line to the freight forwarder or NVOCC who booked the container.
Freight & NVOCC
MLC 2006Maritime Labour Convention
The ILO convention establishing minimum working and living conditions for seafarers, often called the "seafarers' bill of rights".
Maritime & Ship Management
MRPMaterial Requirements Planning
A planning method that calculates what materials to purchase or produce, in what quantity, by when, to meet demand.
Freight & NVOCC
N
NVOCCNon-Vessel Operating Common Carrier
A logistics company that issues its own bills of lading and consolidates shipments without owning vessels.
Freight & NVOCC
O
OCROptical Character Recognition
Technology that converts images of text into machine-readable text — the precursor to modern Document AI.
AI & Analytics
Off-hire
The period during which a time-chartered vessel is not earning hire because of an event outside the charterer's control.
Maritime & Ship Management
OTIFOn-Time In-Full
The percentage of orders delivered both on time and complete — a key customer-service metric.
Supply Chain & Inventory
P
3PLThird-Party Logistics
A company that provides outsourced logistics services — typically warehousing, fulfilment, transportation and customs.
Freight & NVOCC
P&IProtection and Indemnity Insurance
Third-party liability insurance for shipowners, covering cargo damage, crew injury, pollution, and other risks not covered by hull insurance.
Maritime & Ship Management
PMSPlanned Maintenance System
A computerised system for scheduling and tracking maintenance tasks across a vessel's machinery and equipment.
Maritime & Ship Management
PODProof of Delivery
Evidence that a shipment was delivered — typically a signed receipt or digital signature plus photo.
Freight & NVOCC
Port DAPort Disbursement Account
The statement of all port-call costs that a ship agent collects from the shipowner or operator.
Maritime & Ship Management
Predictive Analytics
Using historical data and models to forecast what is likely to happen next.
AI & Analytics
Prescriptive Analytics
Analytics that recommends the best action to take, going beyond predicting what will happen.
AI & Analytics
Project Cargo
Oversized, heavy, or complex cargo that requires specialised planning, equipment, and multi-leg transport coordination.
Freight & NVOCC
R
ReeferRefrigerated Container
A refrigerated container with its own machinery, used for temperature-controlled ocean and intermodal transport.
Freight & NVOCC
Reorder Point (ROP)
The inventory level at which a replenishment order should be placed.
Supply Chain & Inventory
RFIDRadio-Frequency Identification
Wireless technology for identifying tagged items at distance — used widely in WMS and supply chain tracking.
Freight & NVOCC
RORORoll-on / Roll-off
A vessel type (and freight mode) where wheeled cargo drives on and off the ship under its own power or via tugmasters.
Freight & NVOCC
S
Safety Stock
Buffer inventory held to absorb variability in demand and lead time and prevent stock-outs.
Supply Chain & Inventory
SOLASSafety of Life at Sea
The IMO's most important treaty, regulating minimum safety standards for commercial ships worldwide.
Maritime & Ship Management
STCWStandards of Training, Certification and Watchkeeping for Seafarers
The IMO convention setting minimum training and certification standards for ship's crew worldwide.
Maritime & Ship Management
Supply Chain
The end-to-end network that moves a product from raw material to customer — sourcing, manufacturing, warehousing, transport and returns.
Supply Chain & Inventory
T
Tariff
A tax imposed on imported (or exported) goods, set by the tariff schedule against the HS code.
Customs & Compliance
TEUTwenty-foot Equivalent Unit
The standard unit for measuring container ship and terminal capacity, based on a 20-foot container.
Freight & NVOCC
Time Charter
A charter where the charterer hires a vessel for a defined period, paying a daily hire rate.
Maritime & Ship Management
TMSTransport Management System
Software for planning, executing, and optimising the movement of goods — typically road but also rail/air/sea.
Freight & NVOCC
Transit Time (T/T)Transit Time
The total time cargo takes to travel from origin to destination — port to port or door to door.
Freight & NVOCC
U
ULDUnit Load Device
A pallet or container used to load air cargo onto wide-body aircraft.
Air Cargo & Ground Handling
UN/EDIFACTUnited Nations Electronic Data Interchange for Administration, Commerce and Transport
The dominant international EDI standard for cross-border trade messages, used widely in maritime, customs and freight.
EDI & Standards
V
VCHSValuable Cargo Handling System
A secure-cargo workflow for high-value shipments — precious metals, currency, jewellery, art, controlled substances.
Air Cargo & Ground Handling
VGMVerified Gross Mass
The mandatory verified total weight of a packed container, required before it can be loaded aboard a vessel.
Maritime & Ship Management
Voyage Charter
A charter where the shipowner is paid to carry a specific cargo on a specific voyage between named ports.
Maritime & Ship Management
W
WMSWarehouse Management System
Software for managing warehouse operations — inbound, storage, picking, packing, dispatch, inventory accuracy.
Freight & NVOCC
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