The Ultimate Freight Forwarding Glossary: 50+ Essential Shipping Terms Explained
Publish Time: 2025-07-01 Origin: Site
A-Z Freight Forwarding Terminology
A
Act of God: Force majeure (natural disasters, etc.)
AMS: Automated Manifest System ($25-50 per submission)
AWB: Air Waybill (non-negotiable)
B
BAF: Bunker Adjustment Factor (fuel surcharge)
B/L: Bill of Lading (3 types: Clean/Order/Through)
Broken Stowage: Unused container space (cost penalty)
C
CAF: Currency Adjustment Factor (exchange rate fluctuations)
CFS: Container Freight Station (LCL handling area)
CY: Container Yard (FCL handling area)
D
Demurrage: Container detention fee ($100-300/day)
DDP: Delivered Duty Paid (includes customs clearance)
DG: Dangerous Goods (9 hazard classes)
E-F
ETA/ETD: Estimated Time of Arrival/Departure
FEU: Forty-foot Equivalent Unit (2 TEU = 1 FEU)
FOB: Free On Board (risk transfer point)
G-L
HBL: House Bill of Lading (issued by NVOCC)
LCL: Less than Container Load (minimum 1 CBM)
LDP: Landed Duty Paid (US term)
M-P
NVOCC: Non-Vessel Operating Common Carrier (can issue B/L)
POD: Port of Discharge/Delivery Proof
PPD: Prepaid (common for FOB shipments)
Q-T
Reefer: Refrigerated Container (-25°C to +25°C)
TEU: Twenty-foot Equivalent Unit (33.2 m³ capacity)
THC: Terminal Handling Charge ($120-400/container)
U-W
VGM: Verified Gross Mass (SOLAS requirement)
W/M: Weight or Measurement (chargeable basis)
Key Concepts Deep Dive
1. The Big 3 Bill of Lading Types
| Type | Key Feature | When to Use |
|---|---|---|
| Clean B/L | No cargo defect remarks | LC payments required |
| Order B/L | Requires endorsement | Trade financing |
| Through B/L | Covers multi-modal transport | Inland destinations |
2. The 4 Major Surcharges
BAF: Tied to crude oil prices (monthly adjustments)
CAF: Common on USD routes (e.g., South America)
THC: Mandatory port fee (~$150 in Asia)
PSS: Peak Season Surcharge (Q3/Q4)
3. Container Specifications
20'GP: Max 28 tons / 33 CBM
40'HQ: Max 26.5 tons / 76 CBM
OT: Open Top (for oversized cargo)
Pro Tips
? For LCL shipments, always request Cargo Measurement Certificate
? US-bound cargo must comply with ISF and AMS deadlines
? Specify Set Point Temperature and Ventilation when booking reefers
"Understanding THC vs BAF can save 6% annually" — Maersk APAC Cost Advisor