Freight Terminology

At Hyland Shipping, we understand that the world of freight and logistics can sometimes feel overwhelming, especially with all the industry-specific terminology. Whether you're new to freight forwarding or looking to deepen your understanding, we’re here to make the process as seamless as possible. That’s why we’ve compiled this comprehensive list of freight forwarding terms and their meanings.

Our goal is to enhance your experience by simplifying complex concepts. This glossary is designed to empower you with the knowledge you need to make informed decisions about your shipping and logistics needs.

A-C

  • Air Freight: The transportation of goods by aircraft, typically for time-sensitive or high-value shipments.

  • Bill of Lading (BOL): A legal document issued by a carrier to the shipper, detailing the type, quantity, and destination of the goods being transported.

  • Carrier: A company that transports goods by land, sea, or air.

  • Cargo Insurance: A policy protecting the owner of goods against loss or damage during transit.

  • Consignee: The person or entity to whom goods are shipped and who is the receiver.

  • Consolidation: Combining smaller shipments from different shippers into a single shipment to save costs.

  • Customs Clearance: The process of clearing goods through customs authorities to enter or exit a country.

D-F

  • Demurrage: Charges incurred when cargo is not cleared from the port or terminal within the agreed-upon time.

  • Door-to-Door Shipping: A logistics service where the freight is picked up from the shipper's location and delivered directly to the consignee's address.

  • Drayage: Short-distance transportation of goods, typically between ports, warehouses, or terminals.

  • ETA (Estimated Time of Arrival): The expected time a shipment will reach its destination.

  • Export License: A document granting permission to export specific goods to a foreign country.

  • FOB (Free on Board): An Incoterm indicating that the seller delivers goods onto the ship, and the buyer assumes risk from that point onward.

  • Freight Forwarder: A company that arranges the shipping and logistics of goods on behalf of a shipper.

G-I

  • Gross Weight: The total weight of goods, including packaging and pallet, before deductions.

  • Groupage: The consolidation of multiple smaller shipments into a single container or truck to optimize costs.

  • Incoterms (International Commercial Terms): A set of standardized trade terms that define responsibilities between buyers and sellers.

  • Intermodal Transport: The use of multiple modes of transport (e.g., truck, ship, rail) in a single journey without handling the cargo itself.

L-O

  • Land Freight: Transportation of goods overland, typically by truck or rail.

  • Less Than Truckload (LTL): A shipment that does not require a full truckload and is combined with other shipments.

  • Manifest: A document listing all cargo on a vessel, truck, or aircraft.

  • Ocean Freight: The transportation of goods by sea, typically in containers.

  • Origin Port: The port where goods are loaded onto a vessel for export.

P-S

  • Palletisation: The process of placing goods on pallets for easier handling and transport.

  • Proof of Delivery (POD): A document signed by the consignee confirming receipt of the goods.

  • Reefer Container: A refrigerated shipping container used to transport temperature-sensitive goods.

  • Roll-On/Roll-Off (RoRo): A shipping method where vehicles are driven onto a vessel and secured for transport.

  • Supply Chain: The entire process of producing and delivering goods, from raw materials to final delivery.

T-Z

  • Tariff: A tax imposed on goods imported into or exported from a country.

  • TEU (Twenty-Foot Equivalent Unit): A measurement used to describe the capacity of container ships or terminals, based on the size of a standard 20-foot container.

  • Transit Time: The time taken for goods to travel from the origin to the destination.

  • Transshipment: The transfer of cargo from one vessel to another during the journey to its final destination.

  • Warehouse Receipt: A document that provides proof that goods are stored in a warehouse.

  • Waybill: A document accompanying a shipment, providing details such as origin, destination, and consignee information.

  • Zone Rate: A freight charge determined by the distance between the origin and destination within a particular "zone."