Shipment Operations Glossary
This shipment operations glossary explains the most common logistics, shipping and international trade terms used by importers, exporters and logistics teams. Whether you are new to shipment management or looking for a quick reference, these definitions provide clear explanations to help you better understand shipment operations and industry terminology.
Key logistics and shipment management terms for importers, exporters and trading companies
Parties & Roles
Beneficial Cargo Owner (BCO)
A beneficial cargo owner is the party with the beneficial interest in the cargo, commonly the importer, exporter or owner of the goods. A BCO may book directly with an ocean carrier or use a freight forwarder, NVOCC or logistics provider.
Carrier
A carrier is the company responsible for transporting goods. Depending on the shipment, this may include an ocean carrier, airline or transport provider.
Consignee
The consignee is the party receiving the goods at destination. This may be the buyer, importer or another authorized receiving party.
Consolidator
A consolidator (also called a co-loader) combines multiple smaller shipments from different shippers into a single larger shipment, such as a full container load, to reduce cost and improve efficiency for each party involved.
Customs Broker
A customs broker is a specialist or company that helps prepare and submit customs-related information and documents for import or export clearance.
Exporter
An exporter is a company or individual that sells and ships goods to another country.
Freight Forwarder
A freight forwarder is a company that helps arrange the transportation of goods. Freight forwarders may coordinate carriers, documents, bookings and other logistics activities on behalf of shippers.
Importer
An importer is a company or individual that buys and receives goods from another country.
Importer of Record (IOR)
The importer of record is the entity legally responsible for ensuring that an imported shipment complies with customs laws, including filing accurate documentation and paying applicable duties and taxes.
Non-Vessel Operating Common Carrier (NVOCC)
An NVOCC is a company that consolidates and ships cargo under its own bills of lading without owning the vessels it uses, acting as a carrier to its customers and a shipper to the actual ocean carrier.
Notify Party
The notify party is the person or company named on a bill of lading who should be informed when a shipment arrives at its destination, often the consignee, customs broker or a bank.
Shipper
The shipper is the party sending the goods. This is often the seller, exporter or supplier.
Supplier
A supplier is a company or individual that provides goods to a buyer. In international shipment operations, suppliers often provide product details, shipment updates and required documents.
Third-Party Logistics Provider (3PL)
A third-party logistics provider is a company that manages transportation, warehousing or other supply chain functions on behalf of another business, typically under a contracted service agreement.
Trading Company
A trading company buys and sells goods, often coordinating shipments between suppliers and customers across different countries.
Transport Modes & Equipment
Air Freight
Air freight refers to goods transported by aircraft. It is commonly used when shipments need to move faster than sea freight, especially for urgent, high-value or time-sensitive cargo.
Break Bulk Cargo
Break bulk cargo refers to goods that are shipped individually, in bags, boxes, crates or on pallets, rather than in shipping containers or in bulk form.
Container
A container is a standardized unit used to transport goods, especially by sea. Common container types include 20-foot containers, 40-foot containers and refrigerated containers.
Container Freight Station (CFS)
A container freight station is a facility where cargo from multiple shippers is consolidated into or deconsolidated out of shipping containers, typically used for less than container load shipments.
Container Yard (CY)
A container yard is a storage area at a port or terminal where containers are held before loading onto a vessel or after discharge, awaiting pickup or onward transport.
Cross-Trade Shipment
A cross-trade shipment is a shipment where goods move between two countries without passing through the country of the company managing the transaction. Trading companies often manage cross-trade shipments.
Drayage
Drayage is the short-distance transport of containerized cargo, typically by truck, between a port or rail terminal and a nearby warehouse, distribution center or rail yard.
Forty-foot Equivalent Unit (FEU)
A forty-foot equivalent unit is a measure equal to two TEUs, based on the volume of a standard 40-foot shipping container, and is commonly used to price and track container shipments.
Full Container Load (FCL)
Full container load refers to a shipment where one shipper uses the full container. It is commonly used when the shipment volume is large enough to justify a dedicated container.
Full Truckload (FTL)
Full truckload shipping refers to a shipment large enough to fill an entire truck or trailer, booked exclusively for one shipper’s cargo from pickup to delivery.
Inland Transportation
Inland transportation refers to the movement of goods within a country, usually by road or rail, before or after an international shipment.
Intermodal Transport
Intermodal transport is the movement of cargo using two or more modes of transport, such as ship, rail and truck, within the same container without the cargo itself being handled between modes.
Less than Container Load (LCL)
Less than container load refers to a shipment that does not fill an entire container. The cargo is usually consolidated with other shipments inside the same container.
Less Than Truckload (LTL)
Less than truckload shipping combines cargo from multiple shippers that does not fill a full truck, allowing each shipper to pay only for the space and weight their goods occupy.
Multimodal Transport
Multimodal transport is the movement of cargo under a single contract and a single responsible carrier, even though multiple transport modes are used to complete the journey.
Ocean Freight
Ocean freight, also called sea freight, refers to goods transported by vessel. It is commonly used for international shipments involving larger volumes or lower urgency compared with air freight.
Reefer Container
A reefer container is a refrigerated shipping container used to transport temperature-sensitive cargo, such as fresh produce, pharmaceuticals or chemicals, at a controlled temperature.
Roll-on/Roll-off (RoRo)
Roll-on/roll-off refers to a method of ocean shipping in which wheeled cargo, such as vehicles and trailers, is driven directly on and off the vessel rather than being lifted by crane.
Transshipment
Transshipment is the process of unloading cargo from one vessel or mode of transport and reloading it onto another to reach its final destination, often at an intermediate port.
Twenty-foot Equivalent Unit (TEU)
A twenty-foot equivalent unit is a standard measure used to describe the cargo capacity of container ships and terminals, based on the volume of a standard 20-foot shipping container.
Shipping Documents
Air Waybill (AWB)
An air waybill is a transport document used for air freight shipments. It includes shipment details and acts as evidence that the airline or air carrier has received the goods for transport.
Arrival Notice
An arrival notice is a notification sent by a carrier or forwarder to the consignee or notify party confirming that a shipment has arrived, or is due to arrive, at the destination port.
Bill of Lading (B/L)
A bill of lading is one of the most important shipping documents in international trade. It acts as a receipt for the goods, evidence of the transport contract and, in some cases, a document of title.
Booking Confirmation
A booking confirmation is a document issued by a carrier or forwarder confirming that space has been reserved for a shipment, including vessel, voyage, container and routing details.
Certificate of Origin
A certificate of origin is a document that identifies where goods were produced or manufactured. It may be required for customs clearance, trade agreements or buyer requirements.
Commercial Invoice
A commercial invoice is a document issued by the seller to the buyer. It includes shipment and transaction details such as product description, quantity, value, currency, seller information and buyer information.
Delivery Order
A delivery order is a document that authorizes the release of cargo to the consignee or their appointed representative.
Dock Receipt
A dock receipt is a document issued when cargo is delivered to a carrier’s terminal or warehouse, confirming receipt of the goods before they are loaded onto a vessel.
House Bill of Lading (HBL)
A house bill of lading is issued by a freight forwarder or NVOCC to the shipper for a specific shipment. The related master bill is issued by the actual carrier to the forwarder or NVOCC and may cover one or multiple house shipments.
Letter of Credit (LC)
A letter of credit is a payment instrument issued by a bank that helps secure payment between buyer and seller under agreed trade conditions.
Manifest
A manifest is a document listing all cargo, containers or passengers carried on a specific vessel, aircraft or vehicle for a given voyage, used by carriers and customs authorities to track shipments.
Master Bill of Lading (MBL)
A master bill of lading is issued by an ocean carrier to a freight forwarder or NVOCC for cargo moving under the carrier booking. It may relate to one or more house bills and does not necessarily represent a full-container shipment.
Packing List
A packing list is a shipping document that describes how goods are packed. It usually includes item descriptions, quantities, weights, dimensions and package counts.
Power of Attorney (POA)
In customs clearance, a power of attorney is a document authorizing a customs broker to act on behalf of an importer or exporter when filing entries and other paperwork with customs authorities.
Proof of Delivery
Proof of delivery is a record confirming that a shipment was delivered or received at the stated destination and time. It may include the recipient’s name or signature and any recorded delivery exceptions; it does not by itself guarantee acceptance of condition or quantity.
Purchase Order (PO)
A purchase order is a document issued by a buyer to a supplier confirming the products, quantities, prices and terms of a purchase.
Sea Waybill
A sea waybill is a shipping document similar to a bill of lading, except it is not a document of title, meaning the consignee can collect the cargo without presenting the original document.
Shipment Documents
Shipment documents are the files and records needed to support international trade and transport. These may include bills of lading, air waybills, commercial invoices, packing lists, certificates of origin and delivery documents.
Shipper’s Letter of Instruction (SLI)
A shipper’s letter of instruction is a document a shipper provides to their freight forwarder detailing how a shipment should be handled, including routing, documentation and special requirements.
Telex Release
A telex release is an instruction that allows cargo to be released at destination without requiring the original bill of lading to be physically presented.
Incoterms® 2020
Carriage and Insurance Paid To (CIP)
CIP is an Incoterm under which the seller pays for carriage and insurance to a named destination, while risk transfers to the buyer once the goods are handed to the first carrier.
Carriage Paid To (CPT)
CPT is an Incoterm under which the seller pays for carriage to a named destination, but risk transfers to the buyer once the goods are handed to the first carrier.
Cost and Freight (CFR)
CFR is an Incoterm, used only for sea or inland waterway transport, under which the seller pays for transport to the named port of destination, but risk transfers to the buyer once the goods are on board the vessel.
Cost, Insurance and Freight (CIF)
CIF is an Incoterm, used only for sea or inland waterway transport, under which the seller pays for transport and insurance to the named port of destination, while risk transfers to the buyer once the goods are on board the vessel.
Delivered at Place (DAP)
DAP is an Incoterm under which the seller is responsible for delivering the goods, ready for unloading, to a named destination, bearing all risk and cost until that point.
Delivered at Place Unloaded (DPU)
DPU is an Incoterm under which the seller delivers and unloads the goods at a named destination, taking on all risk and cost of transport and unloading until delivery is complete.
Delivered Duty Paid (DDP)
DDP is an Incoterm under which the seller bears all costs and risks of delivering the goods to a named destination, including import duties, taxes and customs clearance.
Ex Works (EXW)
EXW is an Incoterm under which the seller makes the goods available at their own premises, and the buyer takes on all costs and risks of transport from that point onward.
Free Alongside Ship (FAS)
FAS is an Incoterm, used only for sea or inland waterway transport, under which the seller delivers the goods alongside the vessel at the named port, after which the buyer bears all costs and risks.
Free Carrier (FCA)
FCA is an Incoterm under which the seller delivers the goods, cleared for export, to a carrier or location named by the buyer, at which point risk transfers to the buyer.
Free on Board (FOB)
FOB is an Incoterm, used only for sea or inland waterway transport, under which the seller delivers the goods on board the vessel named by the buyer, after which risk transfers to the buyer.
Incoterms® 2020
Incoterms® 2020 are 11 international commercial rules published by the International Chamber of Commerce. They define the responsibilities of buyers and sellers for delivery, cost and risk in international trade transactions.
Customs & Compliance
Anti-Dumping Duty
An anti-dumping duty is an additional import duty imposed on goods sold in a foreign market at a price below their normal value, intended to protect domestic industries from unfair competition.
Authorized Economic Operator (AEO)
An authorized economic operator is a status granted by a customs authority to a business that meets specified compliance and security requirements. Available simplifications and facilitation benefits vary by jurisdiction and program.
Automated Manifest System (AMS)
The Automated Manifest System is a U.S. Customs and Border Protection system used to receive electronic cargo manifest information. Requirements and message formats vary by transport mode and should be checked against current CBP guidance.
Bonded Warehouse
A bonded warehouse is a secure facility, approved by customs authorities, where imported goods can be stored without payment of duties and taxes until they are released for domestic sale, re-exported or otherwise cleared.
Countervailing Duty
A countervailing duty is an additional import duty imposed on goods that have benefited from government subsidies in their country of origin, intended to offset the unfair price advantage created by those subsidies.
Customs Bond
A customs bond is a financial guarantee, often provided by a surety company, that ensures an importer will pay all duties, taxes and fees owed to customs authorities.
Customs Clearance
Customs clearance is the process of getting goods approved by customs authorities before they can enter or leave a country. This usually involves submitting required documents and meeting regulatory requirements.
Customs Duty
Customs duty is a tax charged by a government on goods imported into or exported out of a country, usually calculated as a percentage of the customs value based on the good’s HS code and country of origin.
Dangerous Goods (DG)
Dangerous goods are materials classified by international regulations as posing a risk to health, safety, property or the environment during transport, requiring special packaging, labeling and documentation.
Denied Party Screening
Denied party screening is the process of checking the parties involved in a shipment, such as buyers, sellers and carriers, against government watchlists to ensure a transaction does not violate trade sanctions or export controls.
Free Trade Zone (FTZ)
A free trade zone is a designated area where goods can be imported, stored, handled, manufactured or re-exported without the immediate application of standard customs duties and taxes.
HS Code
An HS code is a standardized product classification code used in international trade. It helps customs authorities identify goods for duties, taxes and trade regulations.
Importer Security Filing (ISF)
Importer Security Filing, commonly called ISF or 10+2, is a U.S. Customs and Border Protection filing requirement for specified cargo arriving in the United States by vessel. Required data must be submitted within the applicable pre-loading deadlines.
Tariff
A tariff is a schedule of duty rates that a customs authority applies to imported or exported goods, often varying by product classification, country of origin and applicable trade agreements.
Core Shipment Operations, Milestones, Metrics & Charges
Bunker Adjustment Factor (BAF)
A bunker adjustment factor is a surcharge added to ocean freight rates to account for fluctuations in the price of fuel, or bunker, used by vessels.
Chargeable Weight
Chargeable weight is the billing weight calculated under the carrier’s or service provider’s rules. In air freight and courier services, it is often the greater of actual gross weight and volumetric weight, but the calculation varies by mode and tariff.
Currency Adjustment Factor (CAF)
A currency adjustment factor is a surcharge added to freight rates to offset the impact of exchange rate fluctuations between the currency a carrier’s costs are incurred in and the currency freight is billed in.
Demurrage
Demurrage is a charge that may apply when cargo or containers remain at a terminal longer than the agreed free time. The applicable rules, timing and billing party vary by carrier, terminal, contract and location.
Detention
Detention is a charge that may apply when a carrier’s container or equipment is kept outside the terminal beyond the agreed free time. The applicable rules, timing and billing party vary by carrier, contract and location.
Estimated Time of Arrival (ETA)
Estimated time of arrival is the expected date and time a shipment, vessel, aircraft or transport movement will arrive at a destination.
Estimated Time of Departure (ETD)
Estimated time of departure is the expected date and time a shipment, vessel, aircraft or transport movement will leave its origin point.
Free Time
Free time is the agreed period during which specified cargo storage or carrier-equipment use does not incur demurrage, detention or related charges. Its scope, start point and duration vary by carrier, terminal, contract and location.
Freight Rate
A freight rate is the price charged by a carrier or forwarder to transport a shipment, typically based on factors such as weight, volume, distance, mode of transport and current market conditions.
General Average (GA)
General average is a maritime law principle under which all parties in a sea venture share proportionally in any loss or cost resulting from a voluntary sacrifice made to save the vessel and cargo from a common danger.
Gross Weight
Gross weight is the weight of the goods plus their packaging, pallets and other handling materials. When the term refers to verified gross mass for a packed container, the container’s tare weight is also included.
Lead Time
Lead time is the amount of time between the start of a process and its completion. In shipment operations, it may refer to the time between placing an order and receiving the goods.
Logistics
Logistics refers to the planning, coordination and movement of goods from one location to another. It can include transport, documents, storage, coordination and shipment visibility.
Net Weight
Net weight is the weight of goods alone, excluding any packaging, pallets or containers used for shipping.
Peak Season Surcharge (PSS)
A peak season surcharge is a temporary fee added to freight rates by carriers during periods of high demand, such as ahead of major holidays, to reflect tighter capacity.
Port of Discharge (POD)
Port of discharge is the port where cargo is unloaded from the vessel.
Port of Loading (POL)
The port of loading is the port where cargo is loaded onto the vessel that will carry it on the main leg of its international journey.
Shipment
A shipment is a group of goods being transported from one location to another. A shipment may involve multiple documents, milestones, suppliers and logistics partners.
Shipment Lifecycle
The shipment lifecycle refers to the full journey of a shipment from the initial purchase order or shipment request through coordination, movement, documentation and delivery confirmation.
Shipment Management
Shipment management is the process of organizing and managing shipment information, documents, milestones, communication and operational activities throughout the shipment lifecycle.
Shipment Milestone
A shipment milestone is a key event in the shipment lifecycle, such as order created, shipment booked, departed origin, arrived at destination, documents received or delivery confirmation completed.
Shipment Operations
Clear terminology helps teams communicate better.
When importers, exporters, suppliers, freight partners and internal teams use the same language, shipment operations become easier to manage.
A shared understanding of logistics and shipment management terms can reduce confusion, improve collaboration and help teams work more efficiently across international shipments.
Naviflow helps importers, exporters and trading companies manage international shipment operations from one connected platform.
It brings together shipment information, documents, collaboration and AI-powered access to operational context so teams can work with better visibility and control.
If your team is managing shipment updates, documents and follow-ups across disconnected tools, Naviflow can help centralize shipment operations from purchase order through delivery confirmation.