The Freight Forwarding Wiki
Complete guide to freight forwarding terminology and concepts
Air Freight (Air Cargo)
Fast transit, high security, calculated by chargeable weight.
Documents & Contracts
MAWB (Master Air Waybill)
The contract of carriage issued by the airline (the main carrier) to the freight forwarder. It covers the consolidated cargo of multiple shippers.
HAWB (House Air Waybill)
The contract of carriage issued by the freight forwarder to the actual shipper. It identifies the specific goods of one customer within a consolidated shipment.
IATA (International Air Transport Association)
The trade association for the world's airlines, setting standards for safety, security, and efficiency.
AWB (Air Waybill)
A document that serves as a contract of carriage and receipt of goods for air freight shipments. It is not a document of title.
DGR (Dangerous Goods Regulations)
IATA regulations for transporting dangerous goods by air. All dangerous goods must be classified and labeled according to these regulations.
Equipment (ULDs - Unit Load Devices)
ULD
The general term for containers and pallets used to load luggage, freight, and mail on wide-body aircraft and specific narrow-body aircraft.
LD3 (AKE Container)
The most common air cargo container. It is half-width and fits in the lower deck of wide-body aircraft (like B747, B777, A330).
- Capacity: Approx. 4.3 m³ (159 ft³)
- Max Gross Weight: ~1,588 kg
PMC (Main Deck Pallet)
A standard 'cookie sheet' style pallet used for stacking cartons, secured by a net.
Cooltainer / Envirotainer
Specialized ULDs with active temperature control (batteries/dry ice) used for pharmaceuticals and perishables (like wine).
LD7 / PAG Pallet
Full-width pallet that fits in the main deck of wide-body aircraft. Capacity: Approx. 4.6 m³.
Operational Terms
Chargeable Weight
Airfreight is charged on whichever is higher: the actual gross weight or the volumetric weight.
Standard Formula: Length x Width x Height (cm) / 6000. (1 CBM = 167 KG).
CAO (Cargo Aircraft Only)
Goods classified as dangerous or too large for passenger planes, restricted to freighter aircraft.
PAX (Passenger Aircraft)
Cargo designated to fly in the belly of a commercial passenger flight.
Consolidation
Combining multiple shippers' cargo into a single shipment to reduce costs and optimize space utilization.
General Cargo
Standard, non-dangerous goods that are not temperature-sensitive, live animals, or valuable goods.
Road Freight (Trucking)
Flexible, door-to-door service, governed by regional conventions.
Documents & Contracts
CMR (Convention Relative au Contrat de Transport International de Marchandises par Route)
The standard consignment note for road transport in Europe and parts of Asia/Africa. It serves as proof of the contract of carriage and confirms the carrier has received the goods.
POD (Proof of Delivery)
A document signed by the consignee upon delivery, confirming goods were received in good condition.
TIR Carnet
A customs document allowing goods to travel across international borders without paying duties at each frontier (sealed trucks).
e-CMR
Electronic version of CMR, allowing digital signing and management of transport documents.
Equipment & Vehicle Types
Tilt Truck
A standard trailer covered by a canvas tarpaulin (tilt) supported by a frame.
Advantage: Can be loaded from the rear, side, or top (by crane).
Tautliner (Curtain-sider)
Similar to a tilt truck but with sliding curtain sides for easier side access. The roof is usually fixed.
Reefer Trailer
A refrigerated truck used for temperature-sensitive goods (wine, food, pharma).
Mega Trailer
A trailer with a lower floor height, allowing for higher internal volume (3 meters internal height) while staying within road regulations.
Flatbed Trailer
Open platform without side walls or roof, suitable for large, heavy, or non-standard shaped goods.
Box Truck / Van
Small or medium-sized cargo vehicle with fixed box body, suitable for small shipments and last-mile deliveries.
Operational Terms
FTL (Full Truck Load)
The shipper books the entire truck. Faster, as it goes directly from Point A to Point B.
LTL (Less than Truck Load)
The shipper books only a few pallets. The truck consolidates cargo from multiple shippers (Groupage).
Groupage
Combining multiple shippers' cargo into one vehicle to reduce costs.
Cabotage
The transport of goods between two places in the same country by a transport operator from another country. (Heavily regulated).
ADR
European agreement concerning the International Carriage of Dangerous Goods by Road.
Cross-Docking
Moving goods from incoming vehicle to outgoing vehicle with minimal or no warehouse time.
Milk Run
A transport route where one vehicle visits multiple pickup or delivery locations.
Sea Freight (Ocean Cargo)
Cost-effective for high volumes, slower transit, containerized.
Documents & Contracts
MBL (Master Bill of Lading)
Issued by the Shipping Line (Vessel Owner) to the Freight Forwarder.
HBL (House Bill of Lading)
Issued by the Freight Forwarder to the Shipper. (This is the equivalent of the HAWB in air freight).
Express Release / Telex Release
A digital message from the origin to the destination allowing the cargo to be released without submitting the original paper Bill of Lading.
Sea Waybill
Non-negotiable bill of lading that is not a document of title. Faster and simpler than traditional B/L.
Switch Bill of Lading
A second bill of lading issued to replace the original, typically to hide the initial shipper or consignee.
Equipment (Containers)
TEU (Twenty-foot Equivalent Unit)
The standard unit for describing a ship's cargo capacity. One 20ft container = 1 TEU.
FEU (Forty-foot Equivalent Unit)
A 40ft container, equal to 2 TEU.
FCL (Full Container Load)
The shipper uses the whole container (20' or 40').
LCL (Less than Container Load)
The shipper's cargo is consolidated with others in a single container.
Flexitank
A giant bladder/bag fitted inside a standard 20ft container to transport non-hazardous liquids (like wine or oils) in bulk.
Open Top Container
A container with a removable roof (tarp) for over-height cargo.
Flat Rack Container
Container without side walls and roof, suitable for heavy, large, or non-standard shaped goods.
Reefer Container
Refrigerated container with active temperature control for temperature-sensitive goods.
High Cube Container
40ft container with increased height (9'6" instead of standard 8'6"), providing more volume.
Operational Terms
Demurrage
Charges applied by the shipping line when a full container is kept inside the port terminal longer than the allowed free time.
Detention
Charges applied when the container is picked up, taken to the client's facility, and not returned to the port within the allowed free time.
VGM (Verified Gross Mass)
A mandatory safety requirement where the shipper must declare the accurate weight of the loaded container before it is loaded onto the vessel.
Free Time
Free period during which a container can be used without additional charges before demurrage or detention fees apply.
CY (Container Yard)
Port area where containers are stored and handled.
CFS (Container Freight Station)
Warehouse where LCL cargo is consolidated or deconsolidated.
Stuffing / Stripping
Stuffing is loading goods into a container; Stripping is unloading goods from a container.
Roll-on/Roll-off (Ro-Ro)
Type of vessel that allows vehicles to drive onto and off the ship rather than being lifted by crane.
General Shipping Terms
Transportation & Logistics Terms
Freight Forwarder
A company that organizes and coordinates cargo shipments across multiple transport modes on behalf of shippers to consignees.
Shipper / Consignor
The person or company that sends the goods.
Consignee
The person or company that receives the goods.
Notify Party
The person or company to be notified when goods arrive at destination.
Carrier
The company that actually performs the transportation of goods (airline, shipping line, trucking company).
Origin / Port of Loading
The location where goods are loaded onto the transport vehicle or vessel.
Destination / Port of Discharge
The location where goods are unloaded from the transport vehicle or vessel.
Transit Time
The time required for goods to travel from origin to destination.
Incoterms
Internationally recognized rules that define seller and buyer obligations in international transactions.
Customs & Documentation Terms
Customs Clearance
The formal procedure where customs authorities inspect and approve the import or export of goods.
Commercial Invoice
Document describing the goods sold, their quantity and price. Used for customs valuation.
Packing List
Detailed list of all boxes in a shipment, their contents and weight.
Certificate of Origin
Document certifying the country of origin of goods. Often required for tariff preferences.
EORI Number
European Economic Operator Registration and Identification number required for customs procedures in the EU.
HS Code (Harmonized System Code)
Standardized product classification code used in customs declarations worldwide.
Duty / Tariff
Tax imposed on imported goods.
VAT (Value Added Tax)
Value added tax applied to the value of goods plus customs duties.
Insurance & Liability Terms
Cargo Insurance
Insurance that covers loss or damage to goods during transportation.
Carrier Liability
Carrier's responsibility for loss or damage to goods. Usually limited by conventions (CMR, Montreal, Hague-Visby).
All Risks Insurance
Comprehensive insurance covering all risks except those specifically excluded.
General Average
Maritime law where all cargo owners and ship owner share losses incurred to save the ship and cargo.
Particular Average
Partial loss or damage affecting only one cargo owner.
Pricing & Payment Terms
Freight Charges
Charge for transporting goods from origin to destination.
Surcharge
Additional charge applied on top of base price (e.g., fuel surcharge, quarantine fee).
Prepaid / Collect
Prepaid means shipper pays; Collect means consignee pays.
THC (Terminal Handling Charge)
Fee for handling containers at port terminal.
BAF (Bunker Adjustment Factor)
Fuel cost surcharge for sea freight shipments.
CAF (Currency Adjustment Factor)
Currency fluctuation surcharge.
Need Help with Your Freight Shipments?
Our experienced team with 20+ years of experience is ready to help you with all your international freight shipments. Get a free quote today.