Freight & trade glossary
Cut through the jargon. Search plain-English definitions of the freight, customs, and trade terms you'll meet along the way.
24 terms
Air Waybill (AWB)
A transport document for air cargo that serves as a receipt and contract of carriage between shipper and airline.
Assessable Value
The value of imported goods on which customs duty is calculated, typically the CIF value plus applicable charges.
Bill of Lading (BL)
A document issued by a carrier acknowledging receipt of cargo and setting out the terms of ocean transport.
Bonded Warehouse
A secured facility where imported goods may be stored without paying duty until they are cleared for the domestic market.
CIF
Cost, Insurance, and Freight — an Incoterm where the seller covers cost, insurance, and freight to the destination port.
Consolidation
Combining several smaller shipments into one larger load to reduce cost and improve efficiency.
Customs Broker
A licensed professional who clears goods through customs on behalf of importers and exporters.
Drayage
Short-distance trucking of containers, typically between a port or rail ramp and a nearby warehouse.
Duty Drawback
A refund of customs duties paid on imported inputs when the finished goods are subsequently exported.
Demurrage
A charge levied when a container stays at a port or terminal beyond the allowed free time.
FCL
Full Container Load — a shipment that occupies an entire container exclusively for one consignee.
FOB
Free On Board — an Incoterm where the seller's responsibility ends once goods are loaded onto the vessel.
Freight Forwarder
A company that organises and coordinates the movement of goods on behalf of shippers across carriers and modes.
HS Code
The Harmonized System code — a standardized numerical classification used worldwide to identify traded products.
Incoterms
Internationally recognised trade terms defining the responsibilities of buyers and sellers in a transaction.
IGST
Integrated Goods and Services Tax levied on inter-state supplies and imports in India, generally recoverable on exports.
LCL
Less than Container Load — a shipment that shares container space with cargo from other consignees.
Letter of Credit (LC)
A bank guarantee ensuring the seller receives payment provided the agreed shipping documents are presented.
Multimodal Transport
Moving cargo using two or more modes of transport under a single contract.
Packing List
A document detailing the contents, quantities, and packaging of a shipment for handling and customs.
Port of Discharge
The port where cargo is unloaded from the vessel at its destination.
Proforma Invoice
A preliminary invoice sent to a buyer before shipment, outlining goods, prices, and terms.
Transloading
Transferring cargo from one mode or container to another during transit to optimise routing.
Transit Time
The total time a shipment takes to travel from origin to destination.
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