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Shipping glossary

The words you will see on quotes, bookings and invoices, without the jargon.

Air waybill (AWB)
The transport document for air cargo. It is a receipt and contract, but not a document of title.
Bill of lading (B/L)
The transport document for sea cargo: a receipt, evidence of the contract and, in negotiable form, a document of title.
Breakbulk
Cargo loaded piece by piece rather than in containers.
Bunker adjustment factor (BAF)
A surcharge that reflects changes in the price of ship fuel.
CBM
Cubic metre, the standard unit of volume for freight.
Chargeable weight
The weight an air shipment is billed on: the greater of actual and volumetric weight.
Consignee
The party named to receive the cargo.
Cut-off
The deadline for delivering cargo or documents before a vessel sails.
Demurrage
Charges for leaving a full container at the terminal beyond the free time.
Detention
Charges for keeping a carrier-owned container outside the terminal beyond the free time.
FCL
Full container load. One shipper books the whole container.
Flat rack
A container with no roof or sides, for oversized cargo.
Freight forwarder
A company that arranges the movement of cargo for shippers using carriers and other providers.
HS code
A standard international number that classifies goods for customs.
Incoterms
Standard trade terms that set out the costs, tasks and risks of buyer and seller.
ISPM 15
The international standard for treating and marking timber packaging.
LCL
Less than container load. Several shippers share one container.
Out-of-gauge (OOG)
Cargo that exceeds the dimensions of a standard container.
Packing list
A document detailing the contents, packaging and weights of a shipment.
Reefer
A refrigerated container.
RoRo
Roll-on roll-off. Vehicles are driven on and off the ship.
Shipper
The party sending the cargo.
TEU
Twenty-foot equivalent unit, the standard measure of container capacity.
Telex release
An instruction allowing cargo to be collected without presenting an original bill of lading.
Transshipment
Moving cargo from one vessel to another at an intermediate port.
VGM
Verified gross mass. The confirmed weight of a packed container, required before loading.
W/M
Weight or measure. LCL charges are based on whichever is greater.