A
Accessorials
Fees and/or surcharges that go beyond the dock-to-dock transportation fee. Accessorials can be predictable, fuel charge is one or unpredictable, emergency surcharge (like during Covid).
ACE – Automated Commercial Environment
The system through which the trade community reports imports and exports and the government determines admissibility.
Ad Valorem
An import duty based on the value of the cargo that is being transported.
Additional Handling
An accessorial for oversized or heavy parcels. This type of surcharge is zone based.
Air Waybill (AWB)
A non-negotiable document that accompanies goods shipped by an international air courier. It is a means of receipt. It provides detailed information about the shipment and can be used to track its progress.
Automated Export System
Used by the U.S. government for calculating trade statistics and ensuring exporters adhere to local trade regulations.
Actual Weight/Actual Gross Weight
The Actual Weight is entered by the shipper, the Actual Gross Weight is the weight of the package when shipped and weighed by the carrier
Aggregation (shipment aggregation)
Allows customers to pay one base charge per invoice instead of one base charge per package. To utilize this feature, withhold payment until all the packages are available to check out.
Air Freight
Air cargo is used by global importers and exporters when they need to get goods somewhere quickly and reliably. Faster than ocean freight which is how an overall majority of shipping is done, air freight offers International Air Freight for larger shipments and Express Air Freight for smaller parcels usually handled by FedEx, UPS or DHL.
AMS – Automated Manifest System
The system used by US customs for submitting documents required to process shipments coming into the US from abroad. This system requires carriers to submit precise details of cargo arriving at US ports and airports. In most cases, this is completed by the freight forwarder.
Ancillary Fees
Extra fees for shipments requiring special clearance to enter a country. This fee may differ depending on additional processing required by local customs agents.
AES – Automated Export System
The system U.S. exporters use to electronically declare their international exports, known as Electronic Export Information (EEI), to the Census Bureau to help compile U.S. export and trade statistics.
Apparent Good Order
A request from the shipper to the buyer to acknowledge that the shipment arrived in good condition and order.
Arrival Notice
Like it sounds, a notice from the carrier that the shipment has arrived and will arrive at the specified location by a certain date.
Audit Trail
Manual or computerized tracing of the transactions affecting the contents or origin of a record. It is strongly recommended to maintain an audit trail documenting compliance check-ups to demonstrate due diligence in case an audit occurs. It may also help prevent fines in case of export compliance infringement.
Authorized Shipping Outlet
Independent shipping provider. Similar to a retail location where you can drop off packages to be picked up by UPS or FedEx.
B
Balloon Freight
This includes any freight that is light but takes up a lot of space.
BCO – Beneficial Cargo Owner
An importer that takes control of a shipment at the destination using their own logistics assets instead of utilizing a third-party source like a freight forwarder.
Bill of Lading
A legal document that details the type, quantity, and destination of the goods being carried in a shipment.
Billable Weight
A pricing technique used by carriers to calculate shipping rates. The Billable weight is the greater of dimensional weight or actual weight.
Blind Shipping
A shipment sent directly from the supplier to the customer hiding the name of the supplier.
Bonded Goods/Warehouse
Bonded Goods are imported shipments on which customs charges, including duties, taxes, and any penalties are still owing. Bonded goods are kept in an area of a warehouse controlled by customs authorities, called a bonded warehouse. When the bonded warehouse is managed by a third party, as in the US, importers are required to pay a customs bond in advance of import.
Broker/Shipping Broker
Acts as an agent for the exporter or importer. handles customs clearance, navigates delays and any shipping issues.
Bureau of Industry Security
An agency of the United States Department of Commerce that deals with issues involving national security and high technology in shipping.
Bulk Cargo
Loosely-shipped cargo not stored in containers for example oil, grain or coal.
C
Cargo
Goods or produce being transported from one place to another – by water, air or land.
Cargo Declaration
Information submitted prior to or on arrival or departure of a means of transport for commercial use that provides the particulars required by the local customs authority.
Cargo Insurance
Purchased to protect against damages, loss or theft in transit.
Cargo Manifest
Provides the commercial details of items in a package, such as: package type and quantity, transport documents, and description.
Carrier
Refers to the vehicle, vessel or aircraft transporting products.
COD – Cash on Delivery
Payment for a shipment made upon delivery.
Customs and Border Protection
United States Customs and Border Protection is the largest federal law enforcement agency of the United States Department of Homeland Security, and is the country’s primary border control organization. Is responsible for controlling the flow of people and products in and out of the U.S. as well as enforcing import and export regulations.
Certificate of Free Sale
Document indicating that a product is eligible to be sold within the U.S. or confirms to export standards. Generally relates to highly regulated items like medicines or medical devices that need FDA approval.
CoO
Certificate of Origin (CoO)
Evidence that the goods in a shipment were produced, manufactured, or processed in a particular country.
Certificate of Inspection
Indicates that a product is in adequate condition prior to shipment.
Claims
A legal demand by a shipper or consignee against a carrier for loss or damage to a shipment.
Commercial Invoice
Serves as a proof of sale and includes vital information like description of goods, information on buyer and seller, the value of the shipment and information where it is being delivered to.
Concealed loss/Concealed Damage
Damaged or missing goods that fail to be noticed upon delivery.
Container
Container with strength suitable to withstand shipment, storage, and handling, typically 20,000 LBS and above.
Consignor
Exporter of record on a shipment. Can be an agent, factory or warehouse.
Consignee
Importer of record on a shipment. Can be buyer of goods or agent to the buyer of goods.
Customs
Government agency responsible for collecting duty fees and enforcing import and export regulations.
Customs Bond
Issued to insure payment of all duties and fees to customs authority, aids in speeding up import process.
Customs Broker
Licensed logistics expert responsible for making sure all customs requirements, paperwork, regulations and fees are taken care of.
Custom Clearance Fee
Covers the cost of preparing documents to clear a shipment through customs.
Customs Value
Total invoice amount of international shipments.
Cutoff Time
Latest time cargo may be delivered to a terminal for loading.
D
D&H
Dangerous and Hazardous declaration that cargo is dangerous or hazardous
Dangerous Goods Declaration
Document providing information regarding dangerous and hazardous goods such as: corrosive, flammable, poisonous, toxic, or explosive.
Delivery Fee
Fee for delivery from a warehouse at the port of entry to your requested delivery point.
Demurrage/Detention Fees
Incurred after free grace period for holding shipment at port of entry or for returning empty container after delivery of goods to warehouse.
Destination Control Statement
A legal document stating that the goods you are exporting are destined to the country indicated in all the shipping documents.
DIM Divisor
Number used to divide results of the calculation length x height x width of a parcel. Current standard DIM Divisor is 139. The higher the DIM Divisor the lower the DIM Weight attributed to a parcel. (link to page on DIM Weight).
Dimensional Weight ( DIM weight)
The amount of space a parcel occupies in relation to its weight. (link to page on DIM Weight)
Dimension Range
Minimum to maximum height, length, and width of a parcel for shipment.
Drayage
The transport of freight from an ocean port to a destination, most likely a warehouse. It’s also known as the process of First Mile Transport.
Dunnage
Helps secure and support packages throughout the shipping process for example bubble wrap or styrofoam filler.
Duty
Taxes on imported goods.
E
ECCN – Electronic Control Classification Number
The ECCN is a five character identifier issued by the Department of Commerce (DoC) for certain items set to be exported. (link to page on ECCN).
ECO – Electronic Certificate of Origin
Digital customs document needed for export certification. Verifies where product being shipped originated from.
EDI – Electronic Data Interchange
The electronic exchange of business documents between two parties (companies) for the purposes of sending and receiving a shipment.
EEI – Electronic Export Information
Electronic declaration of merchandise leaving the U.S. for export to a foreign country.
End User
The ultimate recipient of a shipment, possibly the consignee.
Export Broker
An individual or firm assisting buyers and sellers navigate the process of shipping goods from one country to another.
Expedited Freight
Premium service to shorten the time of a shipment from Point A to Point B.
Export Declaration
Formal declaration to Customs listing items before being shipped out. Provides information about the goods being shipped, including type, number, and value.
Export License
Legal document granted by a government that permits the exports of specific items. Not every item requires a license.
F
FAK – Freight of all Kinds
Cargo that contains different kinds of goods but it is charged at one rate. A group of goods pooled together for shipping purposes with no regard to their class.
FCL – Full Container Load
Shipment mode where only one shipment, or part of a shipment, is included in a container. Its opposite is LCL – Less than a Container Load.
FCR – Forwarder’s Cargo Receipt
Document issued by a freight forwarder to the shipper that serves as certification of the receipt of cargo.
Federal Register
(US) Daily publication of the US government containing updated US government agency regulations and proposed rules and notices of interest to the public.
FTA – Free Trade Agreement
Trade deals between countries simplifying trade process and making it more efficient.
FTZ – Free Trade Zone
Area designated as being outside a country’s customs territory allowing goods to be imported without the requirement to pay customs or taxes.
FTR – Foreign Trade Regulations
Regulations placed on international trade.
Freight Carriers
Freight companies that physically transport freight on behalf of shippers.
Freight Class
Freight classification system. The three factors that determine freight class are stowability, handling and liability.
Freight Forwarder
Licensed experts who understand and execute the end to end shipping process and execute it on behalf of clients.
FTL – Full Truck Load
A truck carrying one dedicated shipment. For shipments that are large enough to fill or nearly fill an entire shipping container.
Fuel Surcharge
A fee that carrier companies charge to cover the fluctuating cost of fuel.
G
Ground Freight
Goods shipped in trucks.
Ground Shipping
Goods generally forwarded through carrier services such as FedEx and UPS and the like.
H
HazMat – Hazardous Material
Material that is in whole or contains anything with the following; Flammable liquid, flammable gas, flammable solids, explosives, poisonous, oxidized, radioactive, corrosive or other hazardous material.
HS – Harmonized System
HS Codes (or HTS Codes), also known as the Harmonized Commodity Description and Coding System, or simply the Harmonized System, are a standardized international system to classify globally traded products.
I
Import Duty
Levied on imported goods when they first enter the country. When a shipment of goods reaches the border, the owner, purchaser or a Customs broker (the importer of record) must file entry documents at the port of entry and pay the estimated duties to Customs.
Incoterms – International Commercial Terms
Freight incoterms (International Commercial Terms) are the standard terms used in sales contracts for importing and exporting. They spell out when responsibility for the goods transfers from the supplier to the buyer and also define who pays which costs for the goods and their transport.
Inland Haulage Charges
Transportation costs incurred when moving freight from a seaport to an inland container freight station, and vice versa.
Intended Returns
Shipments received by the customer and intended to be returned.
Inspection Certificate
Document used to signify that shipped goods have been inspected in order to certify that they conform with the terms stated on the sales contract. Not required for all goods.
Intermodal Shipping
Transportation by more than one form of carrier during a single journey, for example, a truck picking up a container from a warehouse, driving it to a railyard where it is loaded on a train for delivery.
International Courier Express
Most popular companies providing this service; UPS, FedEx, and DHL. For forwarders and carriers, these are the leaders in Express Freight. Most shippers (consignees and consignors) would refer to these companies as being international couriers.
International Mail Processing Center
Mail terminal responsible for processing and overseeing cross-border postal items.
IOR – Importer of Record
Term used in customs law, referring to an importer (entities and/or individuals), who are responsible to ensure that goods are imported in accordance with local laws. The IOR who can be the principal, broker or forwarder is also responsible for filing all legally required documents.
Invoice
A list of goods sent or services provided alongside a statement of the due payment.
ISF – Importer Security Filing
Document includes importing information from each point in the transit process.
L
Last Mile
The process when a carrier hands off the delivery of a parcel to a local courier fr efficiency and speed purposes.
Legal Weight
Total shipment weight (in kilograms) including all parts of the package and containers transporting the shipment.
Letter of Credit
An advance instruction by a bank to an overseas bank to guarantee payment to the seller once certain delivery conditions have been met.
LCL – Less than a Container Load
Shipment that does not take up the full capacity of a shipping container.
LTL – Less Than Truckload
Shipment weighing below that of one required to fill a whole truck.
M
Multicarrier Shipping
The use of more than one carrier, a frequently employed strategy during peak seasons to avoid delays, provide agility, or handle large volumes.
Multimodal Shipping
The movement of cargo from origin to destination by several modes of transport where each of these types have a different transport carrier responsible, However under a single contract or bill of lading.
N
NAFTA Certificate of Origin
Documentation used by the governments of the U.S., Mexico, Canada, and Puerto Rico to decide if imports qualify for price reductions or duty-free exemptions offered through the North American Free Trade Agreement, NAFTA.
Next Day Delivery
Delivery of a shipment the day following the initial purchase.
O
Ocean Freight
Ocean freight transport is the shipping of goods by sea via shipping containers.
Onboard Bill of Lading
Receipt given by the carrier when the shipment has been physically loaded onto a container ship (for ocean freight) or airplane (for air freight).
Order Bill of Lading
Where delivery is dependent on the seller being paid.
P
Packing List
Shows how the goods were packed for inspection and shipping purposes. Includes; Shipper, consignee, equipment, packing details, description of goods, HazMat details.
Packing Slip
Shows information like shipping and billing addresses, weight, dimensions and quantity.
Pallet
A small wooden, paper, or metal platform used for storing packages during freight shipments.
Pitney Bowes Shipping Index
Measures parcel volume and spend for business-to-business, business-to-consumer, consumer-to-business and consumer consigned shipments with weight up to 70 pounds across Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Norway, Sweden, the United Kingdom and the United States.
POD – Proof of Delivery
Signature upon delivery, can be an e-signature.
Postal Service Tracking ID
Unique number used to identify shipments. This number is assigned to each package and can be used to track it down on its way to the destination.
POA – Power of Attorney
Legal document used in shipping to grant a customs broker the authority to process Customs clearance on your behalf.
Q
Quota
Amount of goods that may be imported without the requirement to pay additional taxes.
Quotation
An offer for the sale of goods at a specific price in stated conditions (usually referred to as a “quote”).
R
Reverse Logistics
Set of activities that is conducted after the sale of a product. It typically involves returning a product to the seller.
S
Shipping Zones (Small Parcel Zones)
Used by the carriers to measure the distance a package is traveling so they can bill accordingly (Distance is only one factor in billing; size and weight also influence pricing). Zones differ by carrier. One might measure by mile, another by clustering together zip codes. Here is the current FedEx zone structure:
Zone 1: 0-50 miles.
Zone 2: 51-150 miles.
Zone 3: 151-300 miles.
Zone 4: 301-600 miles.
Zone 5: 601-1,000 miles.
Zone 6: 1,001-1,400 miles.
Zone 7: 1,401-1,800 miles.
Zone 8: 1,801+ miles.
SLI – Shipper’s Letter of Instruction
Note from the exporter to the freight forwarder with instructions on how a shipment is being sent and where it is going.
Supply Chain
An interlinked system of companies partaking in the movement of goods from retailers to their customer base.
Surcharge
Charges in addition to transportation and fuel charges.
T
Terms of Sale
Document outlining the rights and responsibilities of both the retailer and customer during the transport of goods.
Tracking Number
Carrier service that enables identification of packages en-route to their destination. Allows you to locate and verify arrival of your parcel along with other shipment details.
TMF – Traffic Mitigation Fee
Fee paid when a terminal becomes congested. It covers the added cost of workers to operate outside of normal hours to avoid delays and loss of business.
TMS – Traffic Management Software
Logistics software technology used to help businesses plan, execute, and optimize the physical movement of goods
U
Ultimate Consignee
Final destination of a shipment.
Unclaimed Freight
Goods that have arrived at their destination but have yet to be picked up by the individual/company responsible for the order.
Undeliverables
Items that can’t be delivered.
US CBP – US Customs and Border Protection
Law enforcement agency that regulates all goods shipped to the United States. The CBP facilitates lawful trade by inspecting cargo and collecting import duties when necessary.
V
Value Added Service
A service rendered to a shipment that can be charged back to the customer.
W
Weight Certificate
Document used during the shipping process that contains the package weight and other measurements.
Weight Threshold
The maximum weight of a shipment designated by a carrier. Packages exceeding this weight limit are billed an additional excess fee.
