Freight transport and forwarding glossary
Terms used in transport, forwarding, customs and insurance, explained briefly, with the Romanian equivalent.
The definitions are written by us, for people who ship or receive goods. For terms with legal effect (liability, customs, insurance), the definition is a starting point: the official source is the convention, regulation or law mentioned.
Translation traps
- “Expeditor” in Romanian means both the shipper and the freight forwarder. On this site the Romanian pages use “casă de expediții” for freight forwarder and “expeditor” for the shipper.
- “Demurrage” has two meanings: in chartering it is the charge for delaying the vessel beyond laytime, while for containers it is the charge for a container kept in the terminal beyond the free days.
- SDR, DST, DTS, SZR are the same IMF unit of account, abbreviated differently in each language.
Missing a term? Write to us and we will add it.
3
- 3PL / 4PL
- An external logistics provider that performs the operations (third-party logistics) or an integrator that coordinates several logistics providers for the customer (fourth-party logistics). See also: WMS
A
- Abnormal / oversized load
- A transport that exceeds the maximum dimensions or weights allowed on public roads and needs a special permit, sometimes also an escort. See also: CMR consignment note
- Actual carrier
- The party to whom the contractual carrier entrusts the performance of all or part of the sea carriage. See also: Carrier (sea)
- ADN
- The European Agreement concerning the International Carriage of Dangerous Goods by Inland Waterways. Included in the glossary only: Honexpres does not offer inland waterway transport. See also: CMNI , ADR
- ADR
- The European Agreement concerning the International Carriage of Dangerous Goods by Road. It sets classification, packaging, labelling, documents and equipment, and is republished every two years. See also: UN number , Packing group , Dangerous goods safety adviser (DGSA) , Limited quantities (LQ)
- AEO (authorised economic operator)
- An EU status granted to economic operators considered trustworthy, giving them easier customs and security controls. See also: EORI number
- Air waybill (AWB)
- The contract document for the carriage of goods by air; it is not a negotiable document of title. See also: MAWB / HAWB , e-AWB
- ATA carnet
- A customs document for the duty-free temporary admission of commercial samples, trade-fair exhibits or professional equipment. See also: TIR carnet
- ATP Agreement
- The agreement on the international carriage of perishable foodstuffs and on the special equipment used for it; it sets the classes of insulated and refrigerated equipment and their certification.
B
- BAF (bunker adjustment factor)
- The surcharge a shipping line uses to adjust ocean freight to the price of ship fuel. See also: Ocean freight , GRI (general rate increase)
- Bill of lading (B/L)
- The sea transport document issued by the carrier: a receipt for the goods loaded, evidence of the contract of carriage and, as a negotiable original, a document of title. See also: Negotiable (to order) bill of lading , Master bill of lading (MBL) , House bill of lading (HBL) , Sea waybill
- Binding tariff information (BTI)
- A decision by the customs authority, binding on it and on the holder, on the tariff classification of specific goods. See also: Commodity code (HS / CN / TARIC)
C
- Cargo booking note (CBN)
- A contract reserving a ship or space on a ship, with clauses on the cargo, operating times and freight. See also: Charter party
- Cargo insurance
- Insurance of the goods, up to the insured value, whether or not the carrier is at fault for the damage, within the policy’s terms. See also: CMR liability insurance , Institute Cargo Clauses (A), (B), (C) , Deductible
- Carrier (sea)
- The party that concludes the contract of carriage by sea with the shipper and is responsible for performing it. See also: Actual carrier , Shipper , Bill of lading (B/L)
- Certified true copy of the licence
- The copy of the transport licence issued for each vehicle a carrier uses, which must be kept on board. See also: Licence for road transport ancillary activities
- CFS (container freight station)
- The warehouse where LCL cargo is consolidated into containers for export or deconsolidated on import. See also: LCL (less than container load) , CY (container yard)
- Chargeable weight
- The higher of the actual weight and the volumetric weight (or, by road, the weight derived from loading metres), used to calculate the rate. See also: Volumetric weight , Loading metre (LDM)
- CIF (Cost, Insurance and Freight)
- An Incoterms® rule for sea transport only: the seller pays freight and minimum insurance to the port of destination, but risk passes to the buyer on board at the port of shipment. See also: Incoterms® 2020 , FOB (Free On Board)
- CIM (COTIF)
- The Uniform Rules concerning the contract of international carriage of goods by rail, an appendix to the COTIF Convention. See also: CIM consignment note , RID
- CIM consignment note
- The contract document for international rail freight, issued under the CIM rules. See also: CIM (COTIF) , CIM/SMGS consignment note
- CIM/SMGS consignment note
- A common consignment note for rail freight between CIM and SMGS countries, which does not need re-issuing when crossing between the two regimes. See also: CIM consignment note , SMGS
- CMNI
- The Budapest Convention on the contract for the carriage of goods by inland waterway. Included in the glossary only: Honexpres does not offer inland waterway transport. See also: ADN
- CMR consignment note
- The contract document for international road carriage of goods under the CMR Convention, usually issued in three originals: for the sender, the carrier and the consignee. See also: e-CMR , Reservations on the CMR , CMR liability limit
- CMR liability insurance
- The road carrier’s liability insurance, covering the compensation it owes under the CMR Convention, within the Convention’s limits, not the full value of the goods. See also: CMR liability limit , Cargo insurance
- CMR liability limit
- The cap on compensation owed by an international road carrier for loss of or damage to goods: 8.33 SDR per kilogram of gross weight lost or damaged, under the 1978 Protocol, with the exceptions set out in the Convention. See also: SDR (special drawing right) , CMR liability insurance , Cargo insurance
- Commodity code (HS / CN / TARIC)
- The classification code of the goods in the customs nomenclature, which determines the duties and measures that apply: HS worldwide, CN in the EU, TARIC for EU measures. See also: Binding tariff information (BTI) , Customs value
- Consignee
- The person entitled to receive the goods at destination, named in the transport document. See also: Shipper , CMR consignment note
- Consignment security declaration (CSD)
- The document certifying the security status of an air cargo consignment, issued after security controls. See also: Regulated agent / known consignor
- Container number
- The container’s unique identifier under ISO 6346: the owner code, a serial number and a check digit. See also: CSC safety approval plate , SOC / COC
- Cross-docking
- Moving goods directly from receiving to dispatch, without storage or with very short storage.
- CSC safety approval plate
- The plate on a container certifying that it complies with the International Convention for Safe Containers and showing its maximum permitted gross mass. See also: Container number , VGM (verified gross mass)
- Customs broker
- A company or specialist that prepares and lodges customs declarations on behalf of customers, as their customs representative. See also: Direct / indirect customs representation , EORI number
- Customs value
- The basis for calculating import duties: usually the price of the goods plus transport and insurance to the point of entry into the EU. See also: Commodity code (HS / CN / TARIC) , Incoterms® 2020
- Customs warehouse
- An authorised warehouse where non-EU goods can be kept without paying import duties until they are released for free circulation or re-exported. See also: Temporary storage
- Cut-off
- The deadline by which the container, the VGM declaration or the documents must be delivered to catch a particular vessel or flight. See also: VGM (verified gross mass) , ETD / ETA
- CY (container yard)
- The area of a terminal where full or empty containers are stored before loading on a ship or after discharge. See also: CFS (container freight station) , Free time
D
- Dangerous goods safety adviser (DGSA)
- The person appointed by a company involved in carrying dangerous goods to monitor compliance with ADR, RID or ADN and to prepare the annual report. See also: ADR , RID
- Deductible
- The part of a loss borne by the insured, set in the insurance policy. See also: Cargo insurance
- Demurrage (charter party)
- The amount owed to the shipowner for each day the ship’s operations exceed laytime. Not to be confused with demurrage on containers, which is a different charge. See also: Laytime , Demurrage (container)
- Demurrage (container)
- The charge made by the line or terminal for a full container kept in the terminal beyond the free days. See also: Detention , Free time , Demurrage (charter party)
- Despatch money
- A bonus paid by the shipowner to the charterer when loading or discharging finishes before laytime has run out. See also: Laytime , Demurrage (charter party)
- Detention
- The charge for a container kept outside the terminal (at the customer’s site or on the road) beyond the free time, until it is returned. See also: Demurrage (container) , Free time
- Direct / indirect customs representation
- In direct representation the representative acts in the customer’s name; in indirect representation it acts in its own name on the customer’s behalf and can also be liable for the customs debt. See also: Customs broker
- Door-to-door / port-to-port
- A service from the shipper’s door to the consignee’s door, as opposed to a service covering only the leg between ports. See also: Pre-carriage / on-carriage
E
- e-AWB
- An air cargo contract concluded electronically, without a paper air waybill. See also: Air waybill (AWB)
- e-CMR
- The CMR consignment note in electronic form, under the Additional Protocol to the CMR Convention, accepted between the countries that have acceded to it. See also: CMR consignment note
- EORI number
- The registration and identification number required for economic operators dealing with customs authorities in the EU. It can be checked with the European Commission’s official tool. See also: AEO (authorised economic operator) , Customs broker
- ETD / ETA
- Estimated time of departure (ETD) and estimated time of arrival (ETA) of a ship, aircraft or shipment. See also: Cut-off
- EUR pallet
- A standardised, exchangeable pallet of fixed dimensions, marked EPAL. Its dimensions are the basis for calculating how many pallets fit in a vehicle. See also: Loading metre (LDM)
F
- FBL
- The FIATA negotiable multimodal transport bill of lading, issued by a freight forwarder acting as a multimodal transport operator. See also: FWB , MTO (multimodal transport operator)
- FCL (full container load)
- A container used entirely by one shipper for its own goods. See also: LCL (less than container load) , TEU / FEU
- FCR
- The FIATA forwarder’s certificate of receipt, by which a freight forwarder confirms it has taken charge of the goods. See also: FCT , FFI
- FCT
- The FIATA forwarder’s certificate of transport, by which a freight forwarder undertakes to deliver the goods according to the instructions received. See also: FCR
- FFI
- The standard FIATA forwarding instructions form, completed by the customer for the freight forwarder. See also: Shipper’s letter of instruction (SLI) , FCR
- FOB (Free On Board)
- An Incoterms® rule for sea transport only: risk passes to the buyer when the export-cleared goods are loaded on board the vessel at the agreed port. See also: Incoterms® 2020 , CIF (Cost, Insurance and Freight)
- Forwarding contract
- The contract by which a freight forwarder undertakes to conclude the contract of carriage in its own name on the customer’s behalf and to carry out the related operations. Its exact regime is set by the applicable civil law. See also: Freight forwarder
- Free time
- The number of days a container or terminal space can be used free of charge before demurrage or detention applies. See also: Demurrage (container) , Detention
- Freight forwarder
- A company that organises transport and formalities for its customer under a forwarding contract: it chooses the carriers, coordinates documents and customs, and remains the customer’s point of contact. See also: Forwarding contract , Licence for road transport ancillary activities
- Freight prepaid / collect
- Notations on the bill of lading: freight paid at origin by the exporter (prepaid) or at destination by the importer (collect). See also: Ocean freight , Incoterms® 2020
- FTL / LTL (groupage)
- FTL: a full truck used by a single customer. LTL: several customers’ goods consolidated in the same truck, each paying for the space it uses. See also: Loading metre (LDM) , EUR pallet
- FWB
- The FIATA multimodal transport waybill, the non-negotiable counterpart of the FBL. See also: FBL
- FWR
- The FIATA warehouse receipt, issued by a freight forwarder for goods received into storage. See also: FCR
G
- General average
- An extraordinary sacrifice or expense made to save ship and cargo from a common danger, shared proportionally by all parties involved, including cargo owners. See also: Cargo insurance
- GRI (general rate increase)
- A general rate increase announced by a shipping line for certain routes from a given date. See also: BAF (bunker adjustment factor) , Ocean freight
- GSA (general sales agent)
- An airline’s commercial representative in a market, selling its cargo capacity.
H
- Hinterland
- The inland area that a port serves through road, rail or inland waterway links. See also: Port water area , Pre-carriage / on-carriage
- House bill of lading (HBL)
- The bill of lading issued by a freight forwarder or NVOCC to its own customer, for cargo carried under the line’s master bill. See also: Master bill of lading (MBL) , Bill of lading (B/L) , NVOCC
I
- IATA DGR
- IATA’s Dangerous Goods Regulations for air transport, published yearly on the basis of the ICAO Technical Instructions. See also: IMDG Code , ADR
- ICS2
- The EU Import Control System, through which safety and security information is sent before goods arrive (entry summary declaration). See also: EORI number
- IMDG Code
- The International Maritime Organization’s code for carrying dangerous goods by sea; it is updated periodically. See also: ADR , IATA DGR , RID
- Incoterms® 2020
- The International Chamber of Commerce’s 11 rules that allocate costs, risk and formalities for delivering goods between seller and buyer. Incoterms® is a trademark of the ICC. See also: FOB (Free On Board) , CIF (Cost, Insurance and Freight)
- Institute Cargo Clauses (A), (B), (C)
- Standard cargo insurance clauses used internationally: (A) covers all risks subject to exclusions, while (B) and (C) cover only named risks. See also: Cargo insurance
- Intermodal transport unit (ITU)
- A container, swap body or semi-trailer that can move from one transport mode to another without unloading the goods. See also: Multimodal, intermodal, combined transport
- IPID
- The standardised insurance product information document for general insurance, which the insurer provides before the policy is concluded. See also: Cargo insurance
- ISPS Code
- The IMO’s International Ship and Port Facility Security Code. Shipping lines often charge an ISPS surcharge. See also: THC (terminal handling charges)
L
- Laycan
- The window of days within which the ship must present itself for loading. If it arrives after the window, the charterer may cancel the contract. See also: Notice of Readiness (NOR) , Charter party
- Laytime
- The time agreed in the charter party for loading or discharging the ship, included in the freight. Exceeding it is paid as demurrage. See also: Demurrage (charter party) , Despatch money , Notice of Readiness (NOR)
- LCL (less than container load)
- Several shippers’ goods consolidated in the same container; each pays according to the volume or weight of its own goods. See also: FCL (full container load) , CFS (container freight station)
- Licence for road transport ancillary activities
- The licence issued by the Romanian Road Authority (ARR) to companies that broker road transport for reward, including freight forwarders. See also: Freight forwarder , Certified true copy of the licence
- Limited quantities (LQ)
- A simplified regime for dangerous goods packed in small inner packagings, marked with the LQ symbol; many ADR requirements no longer apply. See also: ADR
- Loading metre (LDM)
- One metre of a truck’s deck length across its full width. It is the unit used to price groupage; there is no single legal definition. See also: FTL / LTL (groupage) , EUR pallet
M
- Master bill of lading (MBL)
- The bill of lading issued by the shipping line to the freight forwarder or NVOCC, for cargo they consolidate or hand over. See also: House bill of lading (HBL) , Bill of lading (B/L) , NVOCC
- MAWB / HAWB
- The air waybill issued by the airline to the consolidator (master AWB) and the one issued by the consolidator to its own customer (house AWB). See also: Air waybill (AWB)
- Montreal Convention (MC99)
- The 1999 convention governing the liability of international air carriers; the limit for cargo is expressed in SDR per kilogram and is reviewed periodically. See also: SDR (special drawing right) , Air waybill (AWB)
- MRN
- The unique movement reference number assigned to an accepted customs or transit declaration. See also: NCTS
- MTO (multimodal transport operator)
- The party that takes responsibility for the entire multimodal transport, from taking charge of the goods to delivery, under a single contract. See also: FBL , Multimodal, intermodal, combined transport
- Multimodal, intermodal, combined transport
- Multimodal: several transport modes under one contract. Intermodal: the same loading unit moves between modes without the goods being handled. Combined: intermodal with the road leg kept as short as possible. See also: Intermodal transport unit (ITU) , Rolling motorway (RoLa) , MTO (multimodal transport operator)
N
- NCTS
- The EU’s electronic system for customs transit declarations (New Computerised Transit System). See also: T1 / T2 , MRN
- Negotiable (to order) bill of lading
- A bill of lading transferable by endorsement; the goods are released to whoever presents the original. Used mainly with letters of credit or when goods are sold in transit. See also: Bill of lading (B/L)
- NHM code
- The code from the harmonised commodity nomenclature used in rail documents and tariffs. See also: Commodity code (HS / CN / TARIC)
- Notice of Readiness (NOR)
- The notice by which the master declares that the ship is ready to load or discharge. Laytime usually starts counting from this notice. See also: Laytime , Laycan
- NVOCC
- A non-vessel operating common carrier: a sea carrier that operates no ships, issues its own bills of lading and buys space from shipping lines. See also: VOCC , House bill of lading (HBL)
O
- OTHC / DTHC
- Terminal handling charges at the port of loading (origin) and at the port of discharge (destination). Some lines also use the abbreviation THD. See also: THC (terminal handling charges)
P
- Packing group
- The degree of danger of a substance, which determines the packaging required: I for high danger, II for medium danger, III for low danger. See also: UN number , ADR
- Port water area
- The water area within the limits of a port: basins, access channels and berths. See also: Roadstead , Hinterland
- Pre-carriage / on-carriage
- The transport before the main leg (for example by truck to the port) and after it (from the port of discharge to the consignee). See also: Door-to-door / port-to-port , Hinterland
R
- Regulated agent / known consignor
- Entities approved by EU authorities that apply or guarantee security controls on air cargo, so that it can be loaded on an aircraft. See also: Consignment security declaration (CSD)
- Reservations on the CMR
- Reasoned remarks written on the consignment note about the condition of the goods or packaging, when the carrier takes them over or when the consignee receives them. See also: CMR consignment note
- RID
- The Regulations concerning the International Carriage of Dangerous Goods by Rail, an appendix to the COTIF Convention; the rail equivalent of ADR. See also: ADR , CIM (COTIF)
- RO e-Transport
- The Romanian tax authority’s (ANAF) system for monitoring road transport of goods; transports within its scope receive a UIT code that travels with the goods.
- Roadstead
- The anchorage area off a port where ships wait until they can enter and, sometimes, handle cargo. See also: Port water area
- Rolling motorway (RoLa)
- Accompanied combined transport: complete trucks driven onto rail wagons, with the drivers travelling on the same train. See also: Multimodal, intermodal, combined transport , Intermodal transport unit (ITU)
S
- SDR (special drawing right)
- The International Monetary Fund’s unit of account, in which transport conventions express compensation limits. The rate is published daily; other languages abbreviate it DST, DTS or SZR. See also: CMR liability limit , Montreal Convention (MC99)
- Sea waybill
- A non-negotiable sea transport document: it evidences the contract and receipt of the goods but is not a document of title; the goods are released to the named consignee without an original. See also: Bill of lading (B/L)
- SHC (special handling codes)
- Three-letter IATA codes for air cargo that needs special handling, for example live animals, perishables or cargo aircraft only. See also: IATA DGR
- Shipper
- The person who concludes the contract of carriage by sea with the carrier or who hands the goods over for carriage. See also: Carrier (sea) , Consignee
- Shipper’s letter of instruction (SLI)
- The shipper’s written instructions to the freight forwarder: what is shipped, where, how and with which documents. See also: FFI , Air waybill (AWB)
- SMGS
- The agreement on international rail freight applied in the OSJD area, which includes former Soviet Union and Asian countries. See also: CIM/SMGS consignment note
- SOC / COC
- A container owned by the shipper (shipper-owned container) or by the shipping line (carrier-owned container). See also: Container number
- Successive carriers
- Several carriers performing the same CMR contract one after another; the Convention sets how they are liable to the customer and among themselves. See also: CMR consignment note
T
- T1 / T2
- Customs transit procedures: T1 for non-EU goods moving under customs supervision, T2 for EU goods passing through third countries under certain procedures. See also: NCTS , MRN , TIR carnet
- TACT
- IATA’s publication of air cargo rules and rates (The Air Cargo Tariff). See also: Chargeable weight
- Temporary storage
- Keeping non-EU goods under customs supervision after arrival and until they are placed under a customs procedure. See also: Customs warehouse
- TEU / FEU
- Capacity units: a 20-foot container counts as one TEU, a 40-foot container as one FEU or two TEU. See also: FCL (full container load)
- THC (terminal handling charges)
- Charges for handling a container in the port terminal, billed separately from ocean freight. See also: OTHC / DTHC , Ocean freight
- TIR carnet
- An international customs transit document, backed by a guarantee, used by hauliers admitted to the TIR system under the TIR Convention. See also: T1 / T2 , NCTS
- Transshipment
- Moving cargo or a container from one ship to another at an intermediate port, before the final destination. See also: Pre-carriage / on-carriage
U
- ULD (unit load device)
- The aviation container or pallet onto which cargo is loaded in an aircraft.
- UN number
- The four-digit code that identifies a dangerous substance or article in transport regulations, for example on labels and in the transport document. See also: ADR , Packing group
V
- VGM (verified gross mass)
- The gross mass of a packed container, verified and declared by the shipper before loading on board, mandatory under the SOLAS Convention. See also: Cut-off , CSC safety approval plate
- VOCC
- A vessel operating common carrier: a shipping line that operates its own or chartered ships and sells space on them. See also: NVOCC , Shipowner
- Volumetric weight
- The volume of a package converted into kilograms by convention; in air cargo the usual convention is 6,000 cm³ = 1 kg. See also: Chargeable weight
W
- Wagon type code
- The UIC classification letters showing the type of freight wagon, for example flat, covered or open wagon.
- WMS
- The software that manages stock and operations in a warehouse (warehouse management system). See also: 3PL / 4PL