Resources
Freight forwarding and customs glossary.
Plain-English definitions for the terms a freight back office runs on. Each term has a diagram and a link to the agent that handles it.
Customs
ACE (Automated Commercial Environment)
The Automated Commercial Environment is the U.S. government's single-window system for processing import and e…
CBP (U.S. Customs and Border Protection)
U.S. Customs and Border Protection is the federal agency responsible for regulating and facilitating internati…
Customs Broker
A customs broker is a person or firm licensed by U.S. Customs and Border Protection to file customs entries an…
Customs Entry
A customs entry is the formal declaration filed with CBP to import goods into the United States. It includes t…
HTS Code (Harmonized Tariff Schedule)
The Harmonized Tariff Schedule of the United States is the classification system that assigns a numeric code t…
ISF (Importer Security Filing)
An Importer Security Filing, often called ISF-10 or the "10+2", is a U.S. Customs and Border Protection requir…
Operations
Blank Sailing
A blank sailing is a scheduled vessel departure that the carrier cancels, removing that capacity from the mark…
Demurrage
Demurrage is a charge the carrier or terminal levies when a container stays at the port beyond the allotted fr…
Detention
Detention is a charge the carrier levies when a container is kept outside the port or terminal beyond the allo…
Drayage
Drayage is the short-distance trucking of a container, typically between a port or rail terminal and a nearby …
FCL (Full Container Load)
Full Container Load is a shipping arrangement where a single shipper's cargo fills an entire container. The sh…
Freight Forwarder
A freight forwarder arranges the movement of cargo on behalf of shippers, coordinating carriers, documentation…
General Rate Increase
A General Rate Increase is a carrier-announced increase to ocean freight rates across a trade lane, effective …
Last Free Day
Last Free Day is the final day a container can remain at the port terminal or with the consignee without incur…
LCL (Less Than Container Load)
Less Than Container Load is a shipping arrangement where multiple shippers' cargo is consolidated into a singl…
NVOCC (Non-Vessel Operating Common Carrier)
An NVOCC is a carrier that provides ocean freight services and issues bills of lading but does not operate its…
Pre-Alert
A pre-alert is the package of documents an overseas agent or origin office sends ahead of a shipment's arrival…
TEU (Twenty-Foot Equivalent Unit)
A Twenty-Foot Equivalent Unit is the standard measure of container shipping capacity. One TEU equals one 20-fo…
Vessel Rollover
A vessel rollover happens when booked cargo is not loaded onto its scheduled vessel and is moved to a later sa…
Documents
Advance Ship Notice (ASN)
An Advance Ship Notice (ASN) is an electronic message a supplier sends to a buyer, warehouse, or 3PL before a …
Arrival Notice
An arrival notice is the document the carrier or forwarder sends to inform the consignee that a shipment has a…
Bill of Lading
A bill of lading is the contract of carriage between the shipper and the carrier. It serves as a receipt for t…
Commercial Invoice
A commercial invoice is the seller's bill for the goods. It states the buyer and seller, description, quantity…
Packing List
A packing list is the document that itemizes the contents, weight, dimensions, and packaging of a shipment. It…
Trade
CIF (Cost, Insurance and Freight)
Cost, Insurance and Freight is an Incoterm for sea transport where the seller pays the cost and freight to bri…
FOB (Free On Board)
Free On Board is an Incoterm for sea and inland waterway transport. Under FOB, the seller delivers the goods o…
Incoterms
Incoterms are the standardized international commercial terms published by the International Chamber of Commer…
Trucking
Accessorial Charges
Accessorial charges are fees a trucking carrier adds for services beyond moving freight from one dock to anoth…
Check Call
A check call is a contact a freight broker or dispatcher makes with a carrier or driver to confirm where a loa…
Freight Class
Freight class is the number an LTL carrier uses to price a shipment by how hard it is to carry. There are 18 c…
FTL (Full Truckload)
FTL, or full truckload, is freight shipping where one shipper's freight takes the whole trailer. The truck goe…
LTL (Less Than Truckload)
LTL, or less than truckload, is freight shipping for loads too big for parcel and too small to fill a trailer.…
NMFC (National Motor Freight Classification)
The National Motor Freight Classification (NMFC) is the standard that groups every kind of freight into a numb…
OS&D (Overage, Shortage and Damage)
OS&D stands for overage, shortage and damage. It is the term carriers, warehouses and brokers use for any diff…
Partial Truckload (PTL)
Partial truckload is a shipment too large for standard LTL and too small to need a whole trailer. The shipper …
PRO Number
A PRO number is the tracking number an LTL carrier assigns to a shipment. The driver usually applies it as a b…
Proof of Delivery (POD)
A proof of delivery (POD) is the document showing that freight was delivered, to whom and in what condition. O…
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