Shipping & Freight Glossary

Freight paperwork is dense. One quote can mention CBM, chargeable weight, THC, BAF, demurrage and a Master B/L — all in one line. This glossary keeps the definitions short, practical and grounded in how the terms are actually used on a working forwarder's desk.

Bookmark the page and jump straight to the term you need. Each entry links to the calculator or long-form guide where relevant.

AWB (Air Waybill)

The transport contract and receipt issued by an airline or air freight forwarder for a shipment. Non-negotiable, unlike an ocean bill of lading.

B/L (Bill of Lading)

The core ocean-freight document. Acts as a receipt for the cargo, evidence of the contract of carriage and — for an original B/L — a document of title.

BAF (Bunker Adjustment Factor)

Surcharge added by ocean carriers to cover fluctuations in fuel oil prices. Usually quoted per TEU or CBM.

CBM (Cubic Meter)

The standard unit of shipment volume — one cubic meter equals 1,000 liters or roughly 35.31 cubic feet. Calculated as length × width × height in meters.

CFT (Cubic Feet)

Volume unit used mainly in the US and UK. 1 CBM = 35.3147 CFT.

CFS (Container Freight Station)

Warehouse where LCL cargo is consolidated into containers for export or deconsolidated on import.

Chargeable Weight

The greater of actual gross weight and volumetric (dimensional) weight. Determines the freight bill for air, courier and often road shipments.

CIF (Cost, Insurance, Freight)

Incoterm where the seller pays cost, marine insurance and freight to the named destination port; risk transfers to the buyer at the origin port rail.

Commercial Invoice

Seller's bill to the buyer used by customs to assess duty and taxes. Must show incoterm, HS code, unit price and total value.

Consignee

Party named on the transport document as the receiver of the goods. Not always the buyer.

Consolidation

Combining multiple LCL shipments from different shippers into one full container to lower per-CBM freight cost.

Container (Dry)

Standard steel intermodal box. Common sizes: 20ft (~33 CBM), 40ft (~67 CBM), 40ft High Cube (~76 CBM), 45ft HC (~86 CBM).

CY (Container Yard)

Terminal area where full containers are stored before loading onto a vessel or after discharge.

Demurrage

Charge levied by the shipping line when a full container stays inside the terminal beyond the free days allowed.

Detention

Charge for holding the carrier's container outside the terminal (at your warehouse) beyond the free days.

DDP (Delivered Duty Paid)

Incoterm where the seller delivers goods to the buyer's premises with all duties, taxes and import clearance paid. Maximum seller obligation.

Dimensional Weight

Synonym for volumetric weight — a pricing weight derived from carton dimensions using a divisor (6000 air, 5000 courier, etc.).

EXW (Ex Works)

Incoterm where the seller only makes goods available at their premises. Buyer arranges and pays for everything else, including export clearance.

FCL (Full Container Load)

Ocean shipment that fills — or is booked to fill — one entire container, whether or not the container is physically full.

FOB (Free On Board)

Incoterm where the seller clears the goods for export and loads them on the buyer's nominated vessel. Risk transfers when goods are on board.

Freight Forwarder

Company that arranges shipments on behalf of shippers, negotiating with carriers, handling documentation and customs.

Gross Weight

Total weight of goods including packaging, pallets and any protective material — but excluding the container itself.

HS Code (Harmonized System Code)

International 6-digit product classification used to determine import duty rates. Countries add 2–4 digits for national tariff detail.

House B/L (HBL)

Bill of lading issued by a freight forwarder to the actual shipper. Runs in parallel with the Master B/L from the carrier to the forwarder.

IATA Divisor

The 6000 cm³/kg factor set by IATA to convert volume to chargeable weight for standard air freight.

Incoterms 2020

International Chamber of Commerce rules defining who pays for what and where risk transfers between seller and buyer. 11 rules split into sea-only and any-mode.

LCL (Less than Container Load)

Ocean shipment too small to justify booking a full container — combined with other shippers' cargo. Priced per CBM or per 1,000 kg, whichever is greater.

Master B/L (MBL)

Bill of lading issued by the ocean carrier to the freight forwarder (or NVOCC) that booked the container.

NVOCC (Non-Vessel Operating Common Carrier)

Freight forwarder that issues its own bills of lading and consolidates cargo but does not own the vessels.

Packing List

Document detailing carton count, dimensions, gross and net weight per package. Critical for customs and container planning.

Pallet

Wooden or plastic platform used to unitize cartons. Common footprints: EUR (1200×800 mm), Standard/GMA (48×40 in), CP series for chemicals.

Payload

Maximum weight of cargo a container can carry — the difference between its Maximum Gross Weight and Tare Weight.

POD (Port of Discharge)

The seaport where the container is unloaded from the vessel at destination.

POL (Port of Loading)

The seaport where the container is loaded onto the vessel at origin.

Reefer

Refrigerated container equipped with a powered cooling unit, used for perishable, frozen and temperature-sensitive cargo.

Shipper

The party sending the goods. Usually the seller but can be a third party under some Incoterms.

SOLAS VGM

IMO rule requiring the shipper to submit a verified gross mass of the packed container before it can be loaded on board.

Stuffing

The process of physically loading cargo into a container. Also called 'loading' or 'vanning'.

Tare Weight

Weight of the empty container itself, printed on the container door. Subtract from gross weight to find cargo weight.

TEU (Twenty-Foot Equivalent Unit)

Standard capacity unit for containers and vessels. One 20ft container = 1 TEU; one 40ft container = 2 TEU.

THC (Terminal Handling Charges)

Fees charged by ports and terminals for handling containers between the yard and the vessel.

Volumetric Weight

Pricing weight derived from dimensions rather than mass. Formula: (L × W × H in cm) ÷ divisor, where divisor is 6000 for air, 5000 for courier, 3000 for road, 1000 for sea LCL.

Missing a term?

This glossary is updated as new practices enter freight — SOLAS VGM, IMO 2020 low-sulphur surcharges, GRI cycles and post-pandemic detention rules all made the list only after they showed up on real invoices. If you rely on a term that isn't here, email support@cbmchecker.com and we'll add it in the next update.