Freight Glossary

Freight & Logistics Glossary: 72 Shipping Terms

Plain definitions of 72 freight and logistics terms, including bill of lading, HS code, customs clearance, freight forwarder, and demurrage.

This glossary explains 72 terms used in freight forwarding, customs, ocean shipping, and air cargo. Each entry has a definition and examples.

Common terms

Freight Forwarder: A company that arranges cargo transportation on behalf of shippers, coordinating logistics across multiple carriers.
NVOCC: Non-Vessel Operating Common Carrier - a company that consolidates cargo and issues its own bills of lading without owning ships.
Third-Party Logistics (3PL): A company that provides outsourced logistics services including transportation, warehousing, and fulfillment.
Fourth-Party Logistics (4PL): A logistics integrator that manages the entire supply chain including coordinating multiple 3PLs.
Carrier: A company that physically transports cargo using ships, aircraft, trucks, or trains.
Shipper: The party that sends or originates a shipment, typically the seller or exporter.
Consignee: The party to whom goods are shipped and delivered, typically the buyer or importer.
Supply Chain: The entire network of organizations, activities, and resources involved in creating and delivering products.
Logistics: The process of planning, implementing, and controlling the movement and storage of goods.
Full Container Load: A shipment that occupies an entire shipping container, with one shipper's cargo only.
Less than Container Load: A shipment that is consolidated with other shippers' cargo to share container space.
Twenty-Foot Equivalent Unit: A standard unit of measurement for container capacity based on a 20-foot shipping container.

What is a freight forwarder?

A company that arranges cargo transportation on behalf of shippers, coordinating logistics across multiple carriers.

What is customs clearance?

The process of getting permission from customs to import or export goods.