Shipment Operations Glossary
A practical reference for the shipping, freight, customs and international-trade terms used by importers, exporters and logistics teams. Browse the six sections or jump directly to the term you need.
How should you use this glossary?
Use this glossary as a quick reference for parties, transport modes, shipping documents, Incoterms® 2020, customs and day-to-day shipment operations. Definitions are educational and neutral; actual requirements can vary by jurisdiction, carrier, contract and cargo type.
Browse by section: Parties & Roles · Transport Modes & Equipment · Shipping Documents · Incoterms® 2020 · Customs & Compliance · Core Shipment Operations, Milestones, Metrics & Charges
Parties & Roles
Beneficial Cargo Owner (BCO)
The party with the commercial interest in the cargo, often the importer, exporter or goods owner.
Carrier
The company responsible for transporting goods, such as an ocean carrier, airline or other transport provider.
Consignee
The party authorized to receive the goods at destination; this may be the buyer, importer or another receiving entity.
Consolidator
A provider that combines smaller shipments from different shippers into a larger consolidated movement.
Customs Broker
A specialist or company that supports customs filings and clearance documentation for imports or exports.
Exporter
A company or person that sells and ships goods to another country.
Freight Forwarder
A company that arranges freight movements and may coordinate carriers, bookings, documents and related logistics work.
Importer
A company or person that buys and receives goods from another country.
Importer of Record (IOR)
The entity legally responsible for meeting the customs obligations that apply to an import.
Non-Vessel Operating Common Carrier (NVOCC)
A company that issues its own bills of lading and arranges ocean carriage without operating the vessel itself.
Notify Party
The person or company named on a bill of lading to be informed about shipment arrival.
Shipper
The party sending the goods, often the seller, exporter or supplier.
Supplier
A company or person that provides goods and often supplies product details, readiness updates and supporting documents.
Third-Party Logistics Provider (3PL)
A contracted provider that manages transportation, warehousing or other logistics activities for another business.
Trading Company
A business that buys and sells goods and may coordinate shipments between suppliers and customers in different countries.
Transport Modes & Equipment
Air Freight
Goods transported by aircraft, typically chosen for faster or time-sensitive movements.
Break Bulk Cargo
Cargo shipped as individual units such as bags, crates, boxes or pallets rather than inside standard containers or as bulk cargo.
Container
A standardized transport unit used to move goods, especially in ocean freight.
Container Freight Station (CFS)
A facility where cargo is consolidated into or deconsolidated from containers, commonly for LCL shipments.
Container Yard (CY)
A port or terminal area where containers are held before loading or after discharge.
Cross-Trade Shipment
A shipment moving between two countries without passing through the country of the company managing the transaction.
Drayage
Short-distance container transport, often between a port or rail terminal and a nearby warehouse or distribution point.
Forty-foot Equivalent Unit (FEU)
A container-capacity measure equal to two TEUs and based on a standard 40-foot container.
Full Container Load (FCL)
A shipment that uses a full container for one shipper rather than sharing it with other cargo owners.
Full Truckload (FTL)
A road shipment booked for one shipper and large enough to use the full truck or trailer.
Inland Transportation
Movement of goods by road, rail or another inland mode before or after the international leg.
Intermodal Transport
Movement using two or more transport modes while the cargo stays in the same loading unit between modes.
Less than Container Load (LCL)
A shipment too small for a full container and normally consolidated with other cargo in the same container.
Less Than Truckload (LTL)
A road shipment that uses only part of a truck and is commonly combined with cargo from other shippers.
Multimodal Transport
Cargo movement performed under one transport contract while using more than one mode.
Ocean Freight
Goods transported by vessel, often used for international cargo with larger volume or lower time urgency.
Reefer Container
A refrigerated container designed to transport temperature-sensitive cargo under controlled conditions.
Roll-on/Roll-off (RoRo)
Ocean transport where wheeled cargo is driven onto and off the vessel rather than lifted by crane.
Transshipment
Transfer of cargo from one vessel or transport service to another, usually at an intermediate location.
Twenty-foot Equivalent Unit (TEU)
A standard capacity measure based on a 20-foot shipping container.
Shipping Documents
Air Waybill (AWB)
The transport document used for air freight and evidence that the carrier received the goods for carriage.
Arrival Notice
A notification from a carrier or forwarder that a shipment has arrived or is expected to arrive at destination.
Bill of Lading (B/L)
An ocean transport document that can serve as a cargo receipt, evidence of the carriage contract and, in some cases, a document of title.
Booking Confirmation
A carrier or forwarder confirmation that transport space has been reserved for a shipment.
Certificate of Origin
A document identifying the country where goods were produced or manufactured.
Commercial Invoice
The seller’s invoice to the buyer showing the commercial details of the transaction and goods.
Delivery Order
A document or instruction authorizing cargo release to the consignee or an appointed representative.
Dock Receipt
A receipt confirming that cargo was delivered to a terminal or warehouse before vessel loading.
House Bill of Lading (HBL)
A bill of lading issued by a forwarder or NVOCC to the shipper for a specific shipment.
Letter of Credit (LC)
A bank-issued payment instrument that supports payment between buyer and seller when agreed conditions are met.
Manifest
A record listing cargo or transport units carried on a particular vessel, aircraft or vehicle.
Master Bill of Lading (MBL)
A bill of lading issued by the ocean carrier to a forwarder or NVOCC under the carrier booking.
Notice of Readiness (NOR)
A vessel notice stating that it has arrived at the agreed location and is ready to load or discharge cargo.
Packing List
A document describing how the goods are packed, including quantities, packages, weights or dimensions where relevant.
Power of Attorney (POA)
An authorization allowing an appointed party, such as a customs broker, to act on behalf of the importer or exporter.
Proof of Delivery
A record confirming delivery or receipt at the stated destination and time; it may include recipient details or exceptions.
Purchase Order (PO)
A buyer-issued document confirming the products, quantities, prices and purchasing terms agreed with a supplier.
Sea Waybill
A non-negotiable sea transport document that does not function as a document of title.
Shipment Documents
The files and records used to support international trade, transport, customs and delivery activities for a shipment. See how importers manage shipment documents.
Shipper's Letter of Instruction (SLI)
Instructions from the shipper to a freight forwarder covering routing, documentation or handling requirements.
Telex Release
An instruction allowing cargo release at destination without presenting the original paper bill of lading.
Incoterms® 2020
Carriage and Insurance Paid To (CIP)
The seller pays carriage and required insurance to the named destination; risk transfers when the goods are handed to the first carrier.
Carriage Paid To (CPT)
The seller pays carriage to the named destination, while risk transfers when the goods are handed to the first carrier.
Cost and Freight (CFR)
For sea or inland waterway transport, the seller pays freight to the destination port while risk transfers once goods are on board.
Cost, Insurance and Freight (CIF)
For sea or inland waterway transport, the seller pays freight and insurance to the destination port while risk transfers on board.
Delivered at Place (DAP)
The seller bears cost and risk until the goods are placed at the named destination ready for unloading.
Delivered at Place Unloaded (DPU)
The seller bears cost and risk through delivery and unloading at the named destination.
Delivered Duty Paid (DDP)
The seller bears the agreed delivery costs and risks to destination, including import clearance and duties where applicable.
Ex Works (EXW)
The seller makes the goods available at its premises and the buyer takes on transport cost and risk from that point.
Free Alongside Ship (FAS)
For sea or inland waterway transport, the seller delivers goods alongside the vessel at the named port.
Free Carrier (FCA)
The seller delivers export-cleared goods to the carrier or location named by the buyer, where risk transfers.
Free on Board (FOB)
For sea or inland waterway transport, risk transfers after the seller places the goods on board the named vessel.
Incoterms® 2020
Eleven ICC rules that allocate buyer and seller responsibilities for delivery, costs and risk in sales contracts. Official ICC Incoterms® resources.
Customs & Compliance
Anti-Dumping Duty
An additional import duty that may be imposed on goods judged to be sold below normal value under applicable trade-remedy rules.
Authorized Economic Operator (AEO)
A customs status for businesses meeting defined compliance and security criteria; benefits vary by program and jurisdiction.
Automated Manifest System (AMS)
A U.S. Customs and Border Protection system used to receive electronic cargo-manifest information.
Bonded Warehouse
A customs-approved facility where goods can be stored under customs control before duties and taxes are settled or the goods are re-exported.
Countervailing Duty
An additional import duty used under applicable rules to offset certain foreign government subsidies.
Customs Bond
A financial guarantee used in some jurisdictions to secure payment of customs duties, taxes or other obligations.
Customs Clearance
The process of meeting customs requirements so goods can be imported, exported or released.
Customs Duty
A tax imposed by a government on specified imported or exported goods under the applicable tariff rules.
Dangerous Goods (DG)
Materials classified under transport regulations as presenting health, safety, property or environmental risks and requiring specific controls.
Denied Party Screening
Checking transaction parties against applicable sanctions, export-control or government watchlists.
Free Trade Zone (FTZ)
A designated area where customs treatment for stored, handled, manufactured or re-exported goods differs from the normal domestic customs regime.
HS Code
A standardized product-classification code used by customs authorities for tariffs, statistics and trade controls.
Importer Security Filing (ISF)
A U.S. filing requirement for specified vessel cargo, commonly called ISF or 10+2, with data submitted before loading deadlines.
Tariff
A schedule of duty rates applied by a customs authority according to product classification, origin and relevant trade rules.
Core Shipment Operations, Milestones, Metrics & Charges
Bunker Adjustment Factor (BAF)
An ocean-freight surcharge used to reflect changes in vessel fuel costs.
Chargeable Weight
The weight used for freight billing under the provider’s rules; in air freight it often considers actual and volumetric weight.
Currency Adjustment Factor (CAF)
A freight surcharge used to offset specified exchange-rate movements.
Demurrage
A charge that may apply when cargo or containers stay at a terminal beyond agreed free time; rules vary by contract, carrier and location.
Detention
A charge that may apply when carrier equipment is kept outside the terminal beyond agreed free time; rules vary by contract and location.
Estimated Time of Arrival (ETA)
The expected date and time a shipment, vessel, aircraft or transport movement will reach a destination.
Estimated Time of Departure (ETD)
The expected date and time a shipment, vessel, aircraft or transport movement will leave its origin point.
Free Time
The agreed period before specified demurrage, detention, storage or related charges begin; scope and timing vary by arrangement.
Freight Rate
The price charged for transporting cargo, usually influenced by mode, route, weight, volume and market conditions.
General Average (GA)
A maritime-law principle for sharing certain losses or costs arising from a deliberate sacrifice made to protect a common sea venture.
Gross Weight
The weight of goods plus their packaging and handling materials; container contexts may use additional specific definitions.
Lead Time
The elapsed time from the start of a process to its completion, such as from order placement to receipt.
Logistics
The planning and coordination of the movement, handling and supporting information required to move goods.
Net Weight
The weight of the goods themselves, excluding packaging, pallets and containers.
Peak Season Surcharge (PSS)
A temporary freight surcharge that carriers may apply during periods of unusually high demand.
Port of Discharge (POD)
The port where cargo is unloaded from the vessel.
Port of Loading (POL)
The port where cargo is loaded onto the vessel for the main ocean leg.
Shipment
A group of goods being transported from one location to another, with related documents, milestones and parties.
Shipment Lifecycle
The sequence from the initial order or shipment request through coordination, movement, documentation and delivery closure.
Shipment Management
The process of organizing shipment information, documents, milestones, communication, ownership and operational activity through the shipment lifecycle. Learn what shipment management software does.
Shipment Milestone
A significant shipment event, such as booking, departure, arrival, document completion, release or delivery.
Shipment Operations
The day-to-day work of coordinating milestones, documents, suppliers, logistics partners, responsibilities and follow-up around active shipments. See how shipment operations software supports this work.
Shipment Tracking
Monitoring a shipment’s location or status; it is one part of the broader shipment-management process.
Storage
A charge that may apply when cargo or containers remain at a port, terminal or facility beyond agreed free time; rules vary by provider, contract and location.
Supply Chain
The network of organizations, people, processes and information involved in producing, moving and delivering goods.
Tare Weight
The weight of an empty container, pallet or package before the goods are added.
Terminal Handling Charge (THC)
A charge covering specified cargo or container handling at a terminal; included services and billing arrangements vary.
Transit Time
The elapsed time between defined origin and destination points or transport milestones; what is included depends on the service definition.
Visibility
The ability to see and understand what is happening across shipments, documents, milestones and operational activity.
Volumetric Weight
A calculated weight based on shipment dimensions, commonly used for pricing cargo that occupies significant space relative to its actual weight.
Why does shared shipment terminology matter?
When importers, exporters, suppliers, freight partners and internal teams use the same language, handoffs and follow-up are easier to understand. This glossary gives teams a shared reference; it does not replace legal, customs or specialist advice.
Connect the term to the shipment context
Naviflow helps import and export teams keep shipment information, documents, milestones, communication and ownership in one operational record. It complements ERP, accounting, customs, warehouse and carrier systems rather than replacing them.