Speak the language of logistics.

Clear, practical definitions for freight and shipping.

01

Routes & schedules

12 essential terms

POL

Port of Loading

Port where cargo is loaded onto the vessel.

POD

Port of Discharge

Port where cargo is unloaded from the vessel.

ETA

Estimated Time of Arrival

Expected date and time of arrival.

ETD

Estimated Time of Departure

Expected date and time of departure.

ATA

Actual Time of Arrival

Recorded date and time of arrival.

ATD

Actual Time of Departure

Recorded date and time of departure.

Transit Time

Journey duration

Time required to move cargo between origin and destination.

Direct Service

Direct ocean service

Cargo remains on the same vessel without transshipment.

Transshipment

Vessel transfer

Cargo is transferred to another vessel at an intermediate port.

Pre-carriage

Origin inland transport

Transport from collection point to departure terminal.

On-carriage

Destination inland transport

Transport from arrival terminal to final delivery point.

Port Pair

Origin & destination

The two ports that define a shipping route.

02

Loads & equipment

8 essential terms

FCL

Full Container Load

A container booked for one shipment.

LCL

Less than Container Load

Smaller shipments consolidated in one container.

FTL

Full Truckload

A truck or trailer dedicated to one shipment.

LTL

Less than Truckload

Smaller freight sharing available truck capacity.

TEU

Twenty-foot Equivalent Unit

Capacity equal to one standard 20-foot container.

ULD

Unit Load Device

Aircraft container or pallet used to group cargo.

CY

Container Yard

Terminal area where full containers are received and stored.

CFS

Container Freight Station

Facility where LCL cargo is consolidated or deconsolidated.

03

Freight charges

6 essential terms

CAF

Currency Adjustment Factor

Adjustment reflecting exchange-rate movements.

FSC

Fuel Surcharge

Additional charge reflecting fuel costs.

SSC

Security Surcharge

Charge covering cargo security measures.

Demurrage

Terminal overstay charge

Charge when a container remains at the terminal beyond free time.

Detention

Equipment overstay charge

Charge for keeping carrier equipment outside the terminal beyond free time.

Storage

Cargo storage charge

Charge for storing cargo or containers at a facility.

04

Shipping documents

7 essential terms

AWB

Air Waybill

Air transport document identifying the shipment and carriage details.

B/L

Bill of Lading

Sea transport document acknowledging receipt and carriage details.

CMR

International Road Consignment Note

Standard consignment note for international road carriage.

Commercial Invoice

Commercial shipment invoice

Document stating goods, value, seller and buyer.

Packing List

Shipment packing details

Itemised list of packages, quantities, weights and dimensions.

Certificate of Origin

Country-of-origin certificate

Document certifying the country where goods were produced.

HS Code

Harmonized System Code

International product classification code used by customs.

05

Parties to a shipment

7 essential terms

Shipper

Sending party

Party identified as sender in the transport document.

Consignee

Receiving party

Party named to receive the cargo.

Notify Party

Arrival notification contact

Party to be notified when cargo arrives.

BCO

Beneficial Cargo Owner

Business shipping its own goods rather than acting as intermediary.

NVOCC

Non-Vessel Operating Common Carrier

Ocean carrier issuing bills of lading without operating vessels.

Freight Forwarder

Shipment organiser

Provider arranging transport and related logistics for customers.

Customs Broker

Customs clearance agent

Agent handling customs formalities for importer or exporter.

Incoterms® 2020: meaning and complete list

Incoterms® are eleven internationally recognised rules published by the International Chamber of Commerce. They clarify the tasks, costs and risks shared by buyers and sellers when goods are delivered.

01

For any mode of transport

Seven rules suitable for road, air, rail, sea or multimodal shipments.

EXW

Ex Works

Buyer assumes most transport responsibility.
FCA

Free Carrier

Seller delivers to the nominated carrier.
CPT

Carriage Paid To

Seller pays carriage to destination.
CIP

Carriage & Insurance Paid To

Carriage and insurance arranged by seller.
DAP

Delivered At Place

Delivered ready for unloading.
DPU

Delivered at Place Unloaded

Seller delivers and unloads the goods.
DDP

Delivered Duty Paid

Seller carries the maximum obligation.
02

For sea and inland waterways

Four rules intended specifically for port-to-port movement.

FAS

Free Alongside Ship

Goods delivered alongside the vessel.
FOB

Free on Board

Risk transfers once goods are on board.
CFR

Cost and Freight

Seller pays freight to destination port.
CIF

Cost, Insurance & Freight

Seller pays freight and minimum insurance.
What changed in Incoterms® 2020Latest official edition
01

DAT became DPU

Delivered at Terminal was renamed Delivered at Place Unloaded.

02

Stronger CIP insurance

CIP normally requires broader insurance cover.

03

FCA and bills of lading

Parties may agree on an on-board bill of lading.

04

Security and own transport

Security obligations and own transport are addressed more clearly.

Official ICC Incoterms® 2020 source
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Choosing the correct Incoterm depends on the route, transport mode and commercial agreement. Ask our team before confirming your shipment terms.

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