Common Shipping Terms – Freight Forwarding Knowledge Hub

Introduction

The logistics and freight forwarding industry uses a wide range of abbreviations and shipping terms to communicate efficiently across the global supply chain. Understanding these terms is essential for freight forwarders, exporters, importers, shipping lines, customs brokers, transporters, and customers.

This guide explains the most commonly used shipping terms, their meanings, and where they are typically used during the shipping process.

Vessel & Sailing Terms

ETD – Estimated Time of Departure

Definition

The expected date and time when a vessel, aircraft, or truck will depart from the port or terminal.

Why It Matters

• Helps plan cargo movement.
• Allows exporters to schedule cargo delivery to the port.
• Supports production and dispatch planning.

Example

ETD: 15 August 2026 from Nhava Sheva Port.

ETA – Estimated Time of Arrival

Definition

The expected date and time when a vessel, aircraft, or truck will arrive at the destination port or terminal.

Why It Matters

• Helps importers prepare for customs clearance.
• Assists transport planning for final delivery.
• Improves customer communication.

Example

ETA: 30 August 2026 at Jebel Ali Port.

ATD – Actual Time of Departure

The actual date and time when the vessel or aircraft departed from the origin port.

ATA – Actual Time of Arrival

The actual date and time when the shipment arrived at the destination port.

Transit Time

The total number of days required for cargo to move from the origin port to the destination port, excluding customs clearance and inland transportation.

Port & Terminal Terms

POL – Port of Loading

The port where the cargo is loaded onto the vessel for international transportation.

Example: POL: Nhava Sheva, India

POD – Port of Discharge

The destination port where the cargo is unloaded from the vessel.

Example: POD: Rotterdam, Netherlands

POR – Place of Receipt

The location where the shipping line or freight forwarder first receives the cargo before it reaches the port of loading.

FPOD – Final Port of Destination

The final port mentioned in the transport document where the cargo is to be delivered before inland transportation, if applicable.

CY – Container Yard

A Container Yard is a storage area inside a port or terminal where full containers are stored before loading or after discharge.

Functions

• Container storage
• Container pickup
• Container drop-off
• Inspection
• Equipment handling

CFS – Container Freight Station

A Container Freight Station is used primarily for handling Less than Container Load (LCL) cargo.

Activities

• Cargo consolidation
• Cargo deconsolidation
• Customs examination
• Stuffing
• Destuffing

ICD – Inland Container Depot

An Inland Container Depot is a customs-approved facility located away from the seaport where import and export containers are handled.

Benefits include reduced congestion at seaports and easier customs processing closer to the cargo origin or destination.

Container & Equipment Terms

FCL – Full Container Load

A shipment where one customer uses the entire container.

Advantages

• Faster handling
• Better cargo security
• Reduced cargo damage risk
• Cost-effective for large shipments

LCL – Less than Container Load

A shipment where multiple customers share one container.

Advantages

• Lower shipping cost for small consignments
• Flexible for smaller cargo volumes

TEU – Twenty-foot Equivalent Unit

A standard measurement used to describe container capacity.

1 × 20-foot container = 1 TEU

Ports and shipping lines often use TEUs to measure cargo volume and terminal capacity.

FEU – Forty-foot Equivalent Unit

A 40-foot container equals 2 TEUs.

SOC – Shipper Owned Container

A container owned or leased by the shipper instead of the shipping line.

COC – Carrier Owned Container

A container owned by the shipping line and provided for transporting cargo.

Freight & Cost Terms

Ocean Freight

The transportation charge for moving cargo by sea between ports.

Air Freight

The transportation charge for moving cargo by air.

THC – Terminal Handling Charges

Charges levied by the terminal for handling containers during loading, unloading, and storage operations.

BAF – Bunker Adjustment Factor

A surcharge applied to account for fluctuations in marine fuel prices.

CAF – Currency Adjustment Factor

A surcharge applied to compensate for changes in exchange rates affecting shipping costs.

Documentation Charges

Fees for preparing shipping documents such as the Bill of Lading, manifests, customs documentation, and certificates.

Time & Storage Charges

Demurrage

Charges incurred when a container remains inside the port or terminal beyond the free storage period.

Detention

Charges incurred when a container is taken out of the terminal but not returned within the allowed free time.

Storage Charges

Fees charged by the terminal or warehouse for storing cargo beyond the permitted free period.

Documentation Terms

B/L – Bill of Lading

A legal document issued by the carrier confirming receipt of cargo and the contract of carriage. It also serves as a document of title for sea shipments.

AWB – Air Waybill

A transport document used for air shipments. It serves as a receipt and transport contract but is not a document of title.

Commercial Invoice

A document issued by the seller detailing the goods sold, their value, quantity, and terms of sale. It is essential for customs clearance.

Packing List

A document providing detailed information about the shipment’s packaging, including the number of packages, dimensions, weight, and contents.

Certificate of Origin (COO)

A certificate declaring the country where the goods were manufactured. It may be required for customs clearance or to claim preferential duty benefits under trade agreements.

Customs Terms

IEC – Import Export Code

A business identification number required by Indian companies to engage in import and export activities.

HS Code – Harmonized System Code

An internationally standardized product classification code used to identify goods for customs duty, taxation, and trade statistics.

Bill of Entry

A customs document filed by the importer to obtain clearance for imported goods.

Shipping Bill

A customs document filed by the exporter to obtain permission for exporting goods from the country.

Operational Terms

Stuffing

The process of loading cargo into a shipping container.

Destuffing

The process of unloading cargo from a shipping container.

VGM – Verified Gross Mass

The certified total weight of a packed container, including cargo, packaging, and the container itself. Providing an accurate VGM is mandatory before a container can be loaded onto a vessel.

Freight Collect

Freight charges are paid by the consignee at the destination.

Freight Prepaid

Freight charges are paid by the shipper before the shipment departs.

Consignor (Shipper)

The person or company sending the goods.

Consignee

The person or company receiving the goods at the destination.

Notify Party

The individual or company to be informed when the shipment arrives at its destination. This party may be different from the consignee.

Quick Reference Table

Key Takeaways

A strong understanding of shipping terminology is essential for smooth communication and efficient freight operations.These terms are used daily in booking cargo, preparing shipping documents, coordinating with carriers, handling customs procedures, and tracking shipments. Familiarity with them helps reduce errors, speeds up decision-making, and enhances collaboration across the global supply chain.