A US Customs requirement to file cargo manifest details electronically before ocean cargo is loaded at the origin port. Filed by the carrier or NVOCC. Penalties for late or missing AMS can reach $5,000 per bill.
Emergency air freight for spare parts to a grounded aircraft. Highest-priority lane in air cargo — parts move within hours, often by next available passenger flight, sometimes by charter.
The contract of carriage for air freight. Unlike an ocean Bill of Lading, an AWB is a non-negotiable receipt — title doesn't transfer with the document. Issued in 11-digit format by IATA-member carriers.
A surcharge ocean carriers add to compensate for fuel (bunker) price volatility. Recalculated monthly or quarterly based on actual fuel costs. Always listed separately on invoices — never bundled into the base rate.
The foundational document of ocean freight — simultaneously a receipt for cargo, a contract of carriage, and (when negotiable) a document of title. Issued by the carrier to the shipper, surrendered by the consignee at destination to take delivery.
A customs-controlled storage facility where imported goods can be held duty-deferred for up to 5 years (US). Useful for re-export goods, slow-moving inventory, or when you want to defer paying duty until goods leave the warehouse.
Seller pays for freight to the destination port. Risk transfers to the buyer once cargo is loaded at origin. Buyer arranges and pays for insurance (this is the difference from CIF).
Same as CFR, plus seller arranges minimum marine cargo insurance. Risk still transfers at origin loading. CIF is the most quoted Incoterm in China-to-export trade — but note the insurance is minimum coverage only; many buyers add their own.
Declaration of where the goods were manufactured, issued by the exporter or local Chamber of Commerce. Required for FTA duty preferences (USMCA, RCEP, CPTPP, etc.) — without the right C/O, you pay full duty.
Inbound containers are unloaded and immediately reloaded onto outbound trucks — minimizing or eliminating warehouse storage time. Common for FBA delivery, fast-moving consumer goods, and time-critical distribution.
A licensed agent who files import declarations on your behalf with the destination customs authority. In the US, brokers are licensed by CBP. They classify your goods (HS code), calculate duty, and shepherd the entry through inspection.
Seller delivers goods to the named destination, cleared for import — including customs, duties, and taxes. Buyer just receives the truck. The most buyer-friendly Incoterm, often used for Amazon FBA shipments and e-commerce.
A penalty charged by the port/terminal when a loaded container sits past its free time waiting to be picked up. Different from detention. Usually $50-200/day per container after the free period (typically 3-7 days). Aggregate quickly — track them.
A penalty charged by the ocean carrier when an empty container is returned late after pickup (unloading took too long). Different from demurrage (which is at the terminal). Often confused — the practical difference is who's charging you.
A refund of import duty when goods are subsequently re-exported (in the same or modified form). Up to 99% of duty paid is refundable in the US. Useful for goods that move through your warehouse but ultimately leave the country.
The EU equivalent of the US ISF — pre-arrival cargo manifest filed before goods enter the EU. Required for all imports into the EU from non-EU origins.
Carrier's estimate of when the vessel/flight arrives at destination (ETA) or departs from origin (ETD). Always an estimate — actual times shift based on weather, port congestion, transshipment delays. Real operators track ATD (Actual Time of Departure) too.
Buyer takes possession at the seller's premises. Buyer arranges and pays for everything — pickup, export customs, freight, import customs, delivery. The most seller-friendly Incoterm — but the buyer-side burden is high.
Amazon's program where sellers ship inventory to Amazon's warehouses and Amazon handles pick, pack, ship, and customer service. FBA inbound has strict labeling, palletization, and appointment requirements — most freight forwarders offer "FBA prep" service.
An entire shipping container booked for a single shipper. Common sizes: 20GP (20ft), 40GP (40ft), 40HQ (40ft high cube), 45HQ. FCL is faster and lower risk than LCL since the container isn't opened until destination.
Seller delivers goods loaded on the vessel at the named port of shipment. Risk transfers to buyer once goods are on board. The most-quoted Incoterm in trade — clean handover, ocean only.
A designated area where goods can be stored, handled, or processed without paying import duty until they leave the zone. Useful for transshipment, value-add processing, and managing cash flow on slow-moving inventory.
An across-the-board freight rate increase announced by ocean carriers, typically once a quarter on major lanes. Carriers post intended GRIs 30 days ahead; the actual increase that "sticks" depends on market demand. Affects all shippers without locked-in rates.
The Bill of Lading issued by an NVOCC or freight forwarder to the actual shipper. Used in conjunction with the MBL (Master B/L) issued by the steamship line to the forwarder. Practical effect: shipper sees only their HBL, not the underlying MBL.
A 6-to-10-digit international classification code that identifies traded products. Determines applicable duty rates, FTA eligibility, and regulatory requirements. The first 6 digits are global; countries add 2-4 more digits for granularity. Mis-classification is the #1 source of customs delays.
International Commercial Terms — a standardized set of 11 abbreviations (EXW, FCA, FAS, FOB, CFR, CIF, CPT, CIP, DAP, DPU, DDP) defining who pays for what, who bears risk where, and where responsibility transfers. Updated periodically by the ICC; current version is Incoterms 2020.
A US Customs requirement: 10 data elements from the importer + 2 from the carrier, filed at least 24 hours before cargo is loaded at origin. Late filings carry penalties up to $5,000 per shipment. Required for all ocean imports into the US.
Cargo that shares container space with other shippers' goods. Charged by CBM (cubic meter). Longer transit and more handling than FCL, but economical for shipments under ~15 CBM. Consolidated at origin CFS, deconsolidated at destination CFS.
The Bill of Lading issued by the actual ocean carrier (steamship line) to the NVOCC or forwarder. Used alongside one or more HBLs that the forwarder then issues to underlying shippers. Shippers usually don't see the MBL directly.
Signed receipt confirming the consignee received the shipment. Closes the freight file. Note: "POD" sometimes also means Port of Discharge — context determines which.
The port where cargo is loaded onto the ocean vessel. Listed on the B/L. For China exports, common POLs include Yantian, Shekou, Shanghai, Ningbo, Qingdao, Tianjin.
Oversized, heavy-lift, or otherwise non-standard cargo that requires custom routing, equipment, and permits. Examples: wind turbines, refinery equipment, mining machinery, full container houses. Often moved on flat-rack or open-top containers, or as break-bulk.
A surcharge ocean carriers add during high-demand seasons (typically August-October for transpacific eastbound, ahead of Western holiday retail). Announced 30 days ahead; usually $200-1,000 per container.
A refrigerated container with its own power supply and temperature control (typically -25°C to +25°C). Used for perishables, pharma, lithium batteries, fine chemicals. Premium over dry container, with stricter handling and plug-in requirements at port.
Fee charged by the port terminal for loading or unloading containers from the vessel. Origin THC at POL, destination THC at POD. Some carriers bundle THC into the ocean freight rate; some bill separately — always check.
An external partner that handles some or all of your logistics functions — warehousing, fulfillment, transportation, returns. Distinct from a freight forwarder (which moves freight between ports/airports). Many forwarders also offer 3PL services at destination.
Cargo is unloaded from one vessel and reloaded onto another at an intermediate port, rather than going on a single direct vessel. Common transshipment hubs: Singapore, Hong Kong, Busan, Rotterdam. Adds transit time and one more handling risk.
Term we missed? Email us and we'll add it. This glossary is updated as the industry's acronyms multiply.
