Freight glossary

Freight & shipping terms, in plain English

Shipping runs on jargon. Here's what the important terms actually mean — and why each one changes what your shipment costs or how fast it moves.

Freight forwarder

A company that arranges the movement of goods across borders on your behalf — booking transport, handling customs, insurance and the final mile.

FCL vs LCL

FCL (full container load) is a whole container that's yours; LCL (less-than-container load) shares a container with other shippers' cargo.

Bill of lading (BOL)

The core shipping document — a receipt for the cargo, a contract of carriage, and a document of title all in one.

HS code

The Harmonized System code — a 6-to-10 digit number that classifies a product for customs and sets its duty rate.

Chargeable weight

The greater of a shipment's actual weight and its volumetric (dimensional) weight — what carriers actually bill.

Incoterms

Standardized trade terms (EXW, FOB, CIF, DDP…) that define who pays for and who is responsible for each leg of a shipment.

Customs broker

A licensed specialist who files your import entry with customs, classifies goods and calculates duties and taxes.

De-minimis

The shipment value below which a country waives duty (and sometimes import tax).

Drayage

The short-haul trucking of a container between a port or rail terminal and a nearby warehouse or the next leg.

Demurrage & detention

Penalty fees for keeping a container or using port space beyond the free time allowed.

LTL vs FTL

LTL (less-than-truckload) shares a truck with other freight; FTL (full truckload) is a whole truck for your shipment.

Door-to-door

A shipment managed end to end — from the seller's door to yours — including freight, customs and both final miles.