Shipping Terms: A Glossary of Common Industry Terminology
While it’s not expected for business owners to memorize shipping terms, it can help you better manage how your goods are transported throughout your supply chain. This glossary is a complete list of international and domestic shipping terminology to use as a reference.
That way, you can ensure your valuable commodities are transported safely and in compliance when you understand industry processes more.
A Complete Glossary of Domestic & International Shipping Terms: A-Z
3PL Logistics Company
A 3PL is an outsourced third-party logistics company responsible for handling e-commerce logistics processes for businesses, including inventory and warehouse management and order fulfillment.
Active Shipping
A type of temperature-controlled transportation that doesn’t require qualifications or approvals to maintain specific internal temperatures when shipping goods. These are typically trucks with advanced temperature controls and remain locked during transport.
Aggregate Shipment
A set of multiple shipments consolidated into a single larger one.
Air Waybill (AWB)
Also known as an air consignment note, AWB is a legally binding document issued by international airlines to provide details of their shipments.
Autoracks
A type of rail freight that transports vehicles, such as cars, vans, and light tracks.
Bill of Lading (BOL)
A legally binding document issued by a carrier to the shipper as a receipt for a cargo shipment.
Box Cars (Containers)
A type of rail fleet transporting large, structured, non-perishable freight via standard or double-stack container trains, such as machinery and packaged goods.
Box Trucks
A type of truck fleet transporting freight with an enclosed cargo space attached to the back, such as appliances and furniture.
Cargo Shipping
The shipments of commercial cargo via sea, air, or mail.
Centerbeams
A type of rail freight that transports bundled commodities, such as packaged wood and construction materials. Centerbeams require full capacity to balance freight evenly via forklifts.
Centralized Distribution
Centralized distribution is a singular hub for logistics operations, including headquarters, warehouse, and transportation services. It’s a centralized supply chain structure that flows all goods from the top down in one location without outsourcing external partners.
Certificate of Origin (CO)
A document used in international trade that verifies which country goods are being exported or imported from.
CFR (Cost and Freight)
An Incoterm used to describe sea and inland waterway transportation where the seller is liable for the freight shipping costs to the destination port.
CIF (Cost, Insurance, and Freight)
Similar to CFR, CIF is an Incoterm used to describe sea and inland waterway transportation, except the seller is also liable for specific insurance and related costs for their goods.
CIP (Carriage and Insurance Paid To)
An Incoterm used to describe any transportation mode, where the seller pays for transportation costs related to the delivery of goods and their insurance.
Coast-to-Coast Transport
A mode of shipping that transports freight between major ports.
Coil Cars
A type of rail fleet used to transport large cylindrical commodities, like copper coils and plastic tubing. Coil cars are a type of gondola that have an open top or covered metal hood.
Consignee
The assigned exporter or shipper who determines where goods originate from.
Consignor
The assigned exporter or shipper determining where goods originate from.
COP (Customs of the Port)
A shipping abbreviation used to reference the port’s regulations of shipments.
CPT (Carriage Paid To)
An Incoterm used to describe when the seller must make goods available at a buyer’s selected location.
Customs Clearance
A set of processes that ensure compliance with goods being internationally imported, per the country’s customs authority and regulations.
Customs-Trade Partnership Against Terrorism (C-TPAT)
The C-TPAT is a certification that demonstrates compliance with best supply chain security practices and commitment to reducing terrorism risks in international trade.
Country of Origin
The country where goods are being exported or imported from.
D&H (Dangerous and Hazardous Cargo)
A shipping abbreviation for “dangerous and hazardous cargo.”
DAP (Delivered at Place)
An Incoterm used to describe when the seller delivers goods at the destination assigned by the buyer.
DDP (Delivery Duty Paid)
An Incoterm used to describe when the seller must deliver goods to the buyer’s warehouse.
Decentralized Distribution
Decentralized distribution utilizes multiple hubs for logistics operations, including headquarters, warehouse, and transportation services. It’s a decentralized supply chain structure flowing goods via an agile approach for greater market access by outsourcing external partners.
Demurrage/Detention
Demurrage is when a shipper or consignee is charged as a penalty for cargo carrier delays. Detention is the same charge but for equipment delays.
Department of Transportation (DOT) Number
A form of identification used by the Department of Transportation (DOT) to verify a carrier’s safety records and compliance.
Door-to-Door Transportation
Door-to-door transportation is a mode of shipping commodities directly from the seller and delivering them to the customer’s home. It can transport consumer goods for international or economy standard shipping via one or multiple forms of transit, including rail, truck, and air.
Double Freight Broker
Also known as, double brokering, is when a freight broker reassigns a shipment to a different one without the knowledge or consent of the party that owns the cargo or the original broker. It happens when a secondary freight broker falsely represents themselves as a carrier before accepting cargo from the original brokerage. Double brokering isn’t a recommended shipping practice.
DPU (Delivered at Place Unloaded)
An Incoterm used to describe any mode of transport where the seller must pay for unloading goods.
Drayage
An intermodal mode of transport via trucks or rail to transport cargo containers over a short distance, commonly within a 50-mile radius. Drayage ships cargo between ports, terminals, and rail yards to distribution centers or warehouses.
Dry Vans
A type of truck fleet transporting commodities, such as clothing and electronics via a fully-enclosed van.
Dump Trucks
A type of truck fleet transporting freight with dump deliveries, such as debris and trash.
EAR (Export Administration Regulations)
The EAR is the U.S. Department of Commerce’s regulations for exporting dual commercial and military application goods.
Expedited Loads
A shipment that’s scheduled for quicker delivery and special handing on a specific time and date.
Export Subsidies
Government financial support that’s provided to domestic exporters to achieve specific export objectives, including direct payments, low-cost export loans, and rebates on raw materials.
EXW (ExWorks)
An Incoterm used to describe any mode of transport, where the seller must make their goods available for the buyer to pick up at a specific location and date, such as a warehouse or factory.
FAK (Freight All Kinds)
A freight abbreviation for “freight all kinds” that describes containers with mixed cargo.
FCA (Free Carrier)
An Incoterm used to describe any mode of transport, where the seller is responsible for making goods available in-house or at another location.
Federal Motor Carrier Safety Administration (FMSCA)
The FMSCA is a U.S. Department of Transportation (DOT) agency that regulates and oversees commercial motor vehicles.
Flatbed Transportation
Flatbed transportation is a mode of shipping larger, heavier hauls via trucks, such as scrap metal and machines. Flatbed trucks don’t have containers and are open to the elements that transport freight on a wooden platform supported by a strong aluminum frame.
Flatcars
A type of rail fleet used to transport long freight or uniquely shaped commodities, such as machinery equipment and steel beams. Flatcars are open, typically made of steel or wood, and often used in intermodal transport.
FOB (Free Carrier)
An Incoterm used to describe sea and inland waterway transport, where the seller clears goods for export and delivers them once onboard the vessel at a specific shipping port.
Freight Broker
A freight broker is the liaison between the shipping company and freight carriers. They oversee the transportation process and ensure the handoff of freight runs smoothly between them on an as-needed basis.
Freight Destination Handling
The process of how freight is distributed to its final destination, including transportation mode to import warehouses and scheduling the safe arrival of goods.
Freight Forwarder
A freight forwarder is the sole person responsible for the physical forwarding of commodities from start to finish in the supply chain. They don’t transport freight but work with the providers who do to ensure a seamless shipping process as an intermediary, including storage and shipping handling.
Freight Forwarding
The physical process of moving freight throughout each step of the supply chain.
Freight Origin Handling
The process of how freight is distributed from its original destination, including storing, packing, and shipping preparation.
Freight Shipping
The shipments of freight overland via trucks or trains and their associated costs.
Full Truckload (FTL) Shipping
FTL shipping reserves an entire trailer’s storage and uses direct shipments to deliver commodities faster. It transports large freight quantities on an individual truck trailer for a single shipper.
Gondolas
Similar to hoppers, gondolas are a type of rail fleet transporting large, loose, non-perishable freight. The difference is they don’t open from the sides or bottoms for deliveries and are manually unloaded. Gondolas also come with an open or closed top and are best for commodities unaffected by the outdoor elements, like gravel and sand.
Gooseneck Trucks
A type of truck fleet with a long, curved neck whereas other trailers have a simple hitch. Gooseneck trucks ship large commodities, like farming equipment and livestock.
Gross Axle Weight Rating (GAWR)
A unit of measure used to determine the maximum weight that a truck’s axle can carry.
Gross Combination Weight (GCW)
A unit of measure used to determine the maximum loaded weight a truck can carry, including its passengers, cargo, and trailer combined.
Gross Vehicle Weight Rating (GVWR)
A unit of measure used to determine the maximum loaded weight a truck trailer can carry, per the manufacturer.
Hazmat Commodities
A type of commodity requiring specialized freight carriers to transport safely and securely per federal regulations such as flammable materials and explosives.
Heavy Loads
Oversized cargo that exceeds the standard weight limits of traditional transportation vehicles.
Hopper Cars
Similar to box cars, hoppers are a type of rail fleet, except they transport loose, non-perishable freight, such as sugar and coal. Hoppers come with an open or covered top that dumps on the sides for easier bulk deliveries.
Hot Shot Trucks
A type of truck fleet transporting large freight to a single customer, such as boats and tow cars. Hot shot trucks take incomplete or less-than-truckload (LTL) loads to dedicated routes.
Incoterms (International Commercial Terms)
A set of rules that define the responsibilities of sellers and buyers in the export transaction, per the International Trade Administration.
Intermodal Transportation
A shipping mode that involves multiple forms of transit, such as air, rail, and trucks.
International Air Transport Association (IATA)
The IATA is a membership organization indicating adherence to best industry practices for air cargo handlers.
Less-Than-Truckload (LTL) Shipping
LTL shipping reserves a partial amount of trailer storage and makes multiple stops during transit. It transports smaller freight quantities that share the same truck space as other shippers.
Motor Carrier (MC) Number
An MC Number is a form of identification used by the Federal Motor Carrier Safety Administration (FMSCA) to validate interstate carriers in the U.S.
National Motor Freight Traffic Association (NMFTA)
A non-profit membership organization dedicated to representing the interests of LTL (less-than-truckload) carriers. The NMFTA’s members include motor carriers operating in interstate, intrastate, and foreign commerce.
OTR (Over-the-Road) Trucking Transportation
OTR transportation is a mode of long-distance truck shipping across the U.S. and Canada.
P&D
A logistics abbreviation for “pickup and delivery.”
Passive Shipping
A type of temperature-controlled transportation that anticipates the minimum and maximum temperatures used during shipment for shorter transit times.
Partial Truckload (PTL) Shipping
Similar to LTL, PTL shipping reserves a partial amount of trailer storage and makes multiple stops during transit. The difference is that it transports mid-size freight quantities that share the same truck space as other shippers.
Port-to-Door Transportation
A mode of shipping international cargo from a designated port or terminal and delivering it to the customer’s door. It can transport consumer goods via one or multiple forms of transit, including sea and trucks.
PRO or Tracking Number
A unique identifier of numbers used by carriers to reference a freight’s movement.
Product Classification
A set of 18 classifications that determine the category of goods based on their density, handling, stowability, and liability.
Rail Transportation
Rail transportation is a mode of long-distance shipping for heavy freight via trains for commercial use only.
Reefer Trucks
A type of truck fleet transporting perishable goods, such as flowers and frozen food via temperature-controlled containers.
Refrigerated Containers
A type of freight train with temperature-controlled containers to ship goods requiring cold climates during transit, such as pharmaceuticals and hazardous materials.
RMIS (Registry Monitoring Insurance Services)
The RMIS is a reputable database of certified and insured freight carriers and brokers to ensure their credibility.
SCAC (Standard Carrier Alpha Code)
SCAC is a unique two to four-letter code used by the National Motor Freight Traffic Association to identify transportation companies.
Specialty Transportation
Specialty transportation is a shipping mode that accommodates requests for unique or high-value commodities, like refrigerated foods and wide loads.
Step-Deck Transportation
Also known as a drop deck or lowboy trailer, step-deck transportation is a mode of truck shipping. It has an upper and lower deck trailer on the truck to transport tall cargo that exceeds legal height limits.
Tanker Transportation
A type of truck fleet transporting single or multiple loads for liquid commodities, like fuel and liquid petroleum gas. Tankers can be insulated, non-insulated, pressurized, and non-pressurized.
Transportation Intermediaries Association (TIA)
A membership organization dedicated to ethical and professional standards in the transportation industry.
Transportation Management System (TMS)
A type of transportation software used for managing freight movements across all modes.
Truckload Carriers Association (TCA)
The TCA is a membership organization that certifies logistics companies and freight carriers to industry-leading trucking standards.
Truck Payload Capacity
A truck’s payload capacity is a unit of measure used to determine the maximum weight it can trailer safely.
USFCR (United States Federal Contractor Registration)
A third-party registration system that certifies U.S. contractors and non-profits that bid for federal government contracts. The certification verifies the credibility, capability, and compliance of private companies that provide goods, services, or construction projects to the U.S. federal government.
Warehouse Management System (WMS)
A type of software used for managing daily warehouse operations, including inventory, staff schedules, pickups, deliveries, etc.
Working Load Limits (WLL)
A unit of measure used to determine the weight limit for lifting equipment when loading freight trucks, such as forklifts and cranes.
Yard
The intermediary location where cargo containers and trucking trailers are delivered for distribution.
Yard Management System
A type of software used for managing daily yard operations, including trailer movements, gates, docks, etc.
Shipping Terms Are Comprehensive: Partner with a Credible Freight Forwarder for a Better Peace of Mind
Although it’s important for business owners to understand shipping terms for efficient supply chain management, partnering with a reliable freight forwarder can bring you better peace of mind.
At Lone Star Logistics, we’re a federally certified freight forwarding company with notable accreditations, including the USFCR, TIA, and TCA. We have extensive experience forwarding freight in diverse industries with expanded service areas to resolve your logistics market challenges.
Learn more about our freight forwarding services or get a free quote today!
