Reference

Freight & Logistics
Glossary.

Plain-English definitions of every freight term you'll encounter — from RFQ and FCL/LCL to Incoterms, HS codes, and THC. Written for shippers, not freight professionals.

A

Air Waybill

AWB

A document issued by an airline or air freight agent that serves as a receipt for the shipper and as a contract between the shipper and carrier. Unlike a Bill of Lading, an AWB is non-negotiable — it cannot be used as a document of title or endorsed to a third party.

Air Freight

The transport of goods by aircraft. Air freight is significantly faster than sea freight — typical transit times are 1–7 days versus 15–40 days by sea — but costs 4–6× more per kg. Best suited for high-value, time-sensitive, or perishable cargo.

All-In Rate

A freight quote that includes all charges — base freight, fuel surcharge, handling, documentation fees — in a single price. Contrast with a base rate, which excludes surcharges. Always confirm whether a vendor quote is all-in or base-only when comparing.

Arrival Notice

A notification sent by the carrier or freight forwarder to the consignee (receiver) advising that cargo has arrived or is about to arrive at the destination port. Used to initiate customs clearance and arrange inland delivery.

B

Bill of Lading

B/L or BL

The most important document in sea freight. It is simultaneously: (1) a receipt proving the carrier has taken the goods, (2) a contract of carriage between the shipper and the carrier, and (3) a document of title — whoever holds the original BL legally owns the cargo. Required for customs clearance at destination.

Booking Confirmation

A document from the shipping line or carrier confirming that space has been reserved for your cargo on a specific vessel or flight. The booking confirmation includes the vessel name, voyage number, container type, and sailing date.

Break Bulk

General cargo that is not containerised — loaded individually into the ship's hold rather than placed in a container. Examples include machinery, vehicles, and oversized industrial equipment. Requires specialised vessels and handling.

C

CBM

CBM

Cubic Metre — the standard unit of volume measurement for cargo. Calculated as Length × Width × Height in metres. CBM is used to determine whether a shipment is charged by weight or volume (whichever is greater), and to determine whether cargo fits in a given container. Logwo's RFQ builder calculates CBM automatically.

Certificate of Origin

COO

A document certifying the country in which the goods were manufactured. Required for customs clearance in most countries, and may affect duty rates under free trade agreements. The COO must be issued and stamped by an authorised chamber of commerce.

Chargeable Weight

The weight (actual or volumetric) used to calculate air freight charges. Carriers charge whichever is higher: actual gross weight, or volumetric weight (CBM × 167, or CBM × 1000 kg/m³ for sea). Light but bulky cargo is often charged at volumetric weight.

CIF

CIF (Cost, Insurance and Freight)

An Incoterm in which the seller pays for the cost of goods, freight, and marine insurance to the destination port. Risk transfers to the buyer once goods are loaded on the vessel at origin. CIF is common in UAE import trade.

Customs Clearance

The process of having cargo officially pass through a country's customs authority — submitting required documentation, paying applicable duties and taxes, and obtaining release of the goods. In the UAE, this involves Dubai Customs or Abu Dhabi Customs, depending on the port of entry.

D

DAP

DAP (Delivered at Place)

An Incoterm where the seller delivers goods to a named destination and bears all risk and cost (except import customs duties) until goods arrive at the destination. Popular for door-to-door e-commerce shipments.

DDP

DDP (Delivered Duty Paid)

An Incoterm where the seller takes maximum responsibility — delivering goods to the named place, clearing customs, and paying all duties and taxes. The buyer's only obligation is to unload the goods.

Drayage

The short-distance inland transport of shipping containers — typically from a port to a nearby warehouse or distribution centre, or between ports. Often the first or last mile of a sea freight shipment.

E

ETA

ETA (Estimated Time of Arrival)

The forecasted date and time a vessel, aircraft, or truck is expected to arrive at its destination. ETAs are subject to change due to weather, port congestion, and carrier delays. Live carrier tracking in Logwo pushes ETA updates automatically.

ETD

ETD (Estimated Time of Departure)

The forecasted date and time a vessel, aircraft, or truck is expected to depart from its origin port. ETD is confirmed by the carrier in the Booking Confirmation.

EXW

EXW (Ex Works)

An Incoterm where the seller makes goods available at their premises and the buyer bears all costs and risks from that point — including export customs, freight, and import duties. Maximum responsibility for the buyer.

F

FCL

FCL (Full Container Load)

A sea freight shipment where your cargo fills an entire container — a 20-foot (20ft) or 40-foot (40ft) TEU. FCL is faster than LCL (no consolidation delay), more secure (only your cargo is in the container), and cost-effective for shipments above ~12–15 CBM.

FOB

FOB (Free on Board)

An Incoterm where the seller delivers goods onto the vessel at the origin port. Risk and cost transfer to the buyer at the point of loading. FOB is the most common Incoterm in Asia-UAE trade (e.g., "FOB Shanghai").

Freight Forwarder

An intermediary who arranges the transportation of goods on behalf of a shipper. Freight forwarders negotiate rates with shipping lines, airlines, and truckers; handle documentation; arrange customs clearance; and coordinate the overall movement of cargo. They typically do not own the ships or planes.

FTL

FTL (Full Truck Load)

A road freight shipment where your cargo fills an entire truck. The road equivalent of FCL — faster and more direct than LTL, appropriate for large volumes on a single lane.

H

HS Code

HS Code (Harmonised System Code)

An internationally standardised six-digit code classifying traded goods, maintained by the World Customs Organisation. Customs authorities use HS codes to determine applicable import duties and regulations. Importers are responsible for using the correct HS code — misclassification can result in penalties or goods being held at customs.

I

Incoterms

International Commercial Terms — a set of standardised trade terms published by the International Chamber of Commerce (ICC) that define the responsibilities, costs, and risks between buyers and sellers in international trade. Currently 11 Incoterms (2020 edition). The most common are EXW, FOB, CIF, DAP, and DDP. Always agree on Incoterms before placing an order — they determine who pays for freight, insurance, and customs duties.

L

LCL

LCL (Less than Container Load)

A sea freight shipment where your cargo shares a container with other shippers' goods. A consolidator combines multiple LCL shipments into one FCL container. LCL is economical for smaller volumes (typically under 10–12 CBM) but slower than FCL due to consolidation and deconsolidation at each end.

LTL

LTL (Less than Truck Load)

A road freight shipment where your cargo shares a truck with other shippers. The road equivalent of LCL — appropriate for smaller volumes where a full truck is unnecessary.

P

POD

POD (Proof of Delivery)

A document signed by the consignee (receiver) confirming that goods have been received in good condition. POD is the final milestone in a shipment's lifecycle and is required to complete the payment process in many trade arrangements.

R

RFQ

RFQ (Request for Quotation)

A formal document sent to freight forwarders or carriers inviting them to submit a price quote for transporting your cargo. A freight RFQ specifies: origin, destination, freight mode, cargo details (commodity, weight, CBM, package count), Incoterms, required services, and quote deadline. Logwo's RFQ builder generates structured, vendor-ready RFQs in minutes.

T

TEU

TEU (Twenty-foot Equivalent Unit)

The standard unit for measuring container capacity. A standard 20-foot container equals 1 TEU; a 40-foot container equals 2 TEUs. Port throughput statistics (e.g., "Jebel Ali handles 14 million TEUs per year") are measured in TEUs.

THC

THC (Terminal Handling Charge)

A charge levied by the port or shipping terminal for handling cargo — loading/unloading containers to/from the vessel, and moving them within the terminal. THC applies at both origin and destination ports and is sometimes not included in base freight quotes. Always check whether a vendor quote includes or excludes THC.

Transit Time

The time (in days) from when cargo is loaded at origin to when it arrives at the destination port or delivery address. Transit time is one of the key criteria when comparing freight quotes — alongside price, reliability, and carrier reputation.

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