Shipping Glossary

A US Customs form used for transportation in bond (T&E, IT, or IE) — allows goods to move through the US without paying duties.

The CBSA manifest document for cargo control used for truck shipments entering Canada.

The lowest price a carrier will accept for any shipment, regardless of weight or distance.

Extra fees charged by carriers for services beyond standard pickup and delivery, such as liftgates, residential delivery, or inside delivery.

The US CBP system used for processing electronic manifests and trade data for imports and exports.

Canada’s pre-arrival cargo reporting system — electronic data must be sent to CBSA before the shipment arrives at the border.

A customs duty or tax calculated as a percentage of the value of the goods.

Checking a delivery address against a postal database to confirm it is correct before shipping.

The body of laws governing maritime activities, ships, and shipping.

A contract for hiring a ship or part of a ship to carry goods.

A person or company authorized to act on behalf of another party in shipping transactions.

A discount offered when multiple shipments are tendered to a carrier at the same time.

Any goods or property carried on an aircraft.

The service of transporting goods by aircraft — faster than ocean but more expensive.

A suspension system on a trailer that uses air bags instead of springs to protect fragile freight from road vibration.

A non-negotiable document issued by an air carrier that serves as a receipt, contract of carriage, and customs declaration for air freight.

A freight quote that includes all surcharges (fuel, security, etc.) in a single price — no hidden fees.

A block of space reserved in advance on a vessel or aircraft by a freight forwarder.

Goods placed on the dock or pier within reach of a ship’s loading equipment.

The CBSA system for issuing financial penalties to importers and carriers for non-compliance with customs regulations.

A special tariff imposed on imported goods that are priced below fair market value to protect domestic industries.

The distribution of costs, liabilities, or charges among multiple parties.

A method of settling a shipping or trade dispute outside of court using a neutral third party.

A notification sent by a carrier or agent to the consignee when a shipment has arrived at its destination.

An electronic notification sent to a receiver before a shipment arrives, detailing contents, quantities, and packaging.

Toward the rear of a ship.

In maritime law, a loss or damage to a ship or its cargo — “General Average” means all parties share the loss.

The maximum weight permitted on a single axle of a commercial vehicle under federal or provincial/state regulations.

The Canadian Export Declaration form required for goods leaving Canada valued over $2,000 CAD or controlled goods.

The return trip of a truck from its delivery destination back to its origin — often offered at a lower rate.

An order placed for a product that is currently out of stock and will ship when available.

Heavy material placed in a ship to improve stability when it is not carrying cargo.

A flat-bottomed vessel used to carry freight on rivers, canals, and coastal waterways.

A warehouse method where a picker collects items for multiple orders at the same time to improve efficiency.

Strips of wood or metal used to secure cargo inside a container or on a flatbed trailer.

The width of a ship at its widest point.

Freight carried in the lower hold of a passenger aircraft, below the passenger cabin.

The company or individual that ultimately owns the goods being shipped — as opposed to a freight forwarder acting on their behalf.

A designated place in a port where a ship docks to load or unload cargo.

The primary legal document in freight shipping — acts as a receipt, contract of carriage, and description of the goods.

A document that transfers ownership of goods from one party to another.

The lowest part of a ship’s hull where water collects.

A small, designated storage location within a warehouse.

An inventory count where the counter is not told the expected quantity — ensures an unbiased count.

A shipment where the shipper and receiver are kept unaware of each other’s identity — common in drop shipping.

The closing of a port or border by force to prevent goods from entering or leaving.

A tractor (semi-truck) driving without a trailer attached.

A set of wheels on a trailer that can be adjusted to distribute weight properly.

A financial guarantee posted with customs ensuring that duties and taxes will be paid.

A secure facility where imported goods can be stored without paying duties until they are removed for sale or export.

A reservation for space on a carrier — vessel, aircraft, or truck.

The front of a ship.

Cargo that is not containerized — shipped as individual pieces such as crates, drums, or rolls.

Federal regulations in the US and Canada that govern the allowable distance between axles on a commercial vehicle.

A licensed middleman who connects shippers with carriers — does not own the trucks.

The fee charged by a customs broker for preparing and filing customs documents on behalf of an importer.

Extra inventory held as a safety cushion to prevent stockouts during supply chain disruptions.

Unpackaged goods shipped in large quantities — such as grain, coal, oil, or sand.

A dividing wall inside a ship, container, or trailer used to separate or secure cargo.

A floating surcharge added by ocean carriers to offset changes in fuel (bunker) prices.

A 9-digit number assigned by the CRA and used by Canadian businesses for CBSA import/export accounts.

Customs-Trade Partnership Against Terrorism — a voluntary US supply chain security program that offers expedited border processing to certified companies.

The transport of goods between two points within the same country by a foreign carrier — generally restricted in Canada and the US.

The CBSA system used for electronic accounting and duty payment by importers.

A specific invoice format required by CBSA for commercial shipments into Canada valued over $2,500 CAD.

The maximum weight or volume a vehicle, container, or warehouse can hold.

Goods or products being transported by any mode of transport.

A formal demand for compensation due to loss, damage, or delay of freight during transit.

Insurance that protects against physical loss or damage to freight during transport.

Canada’s new digital platform modernizing the collection of duties and taxes at the border.

The company physically moving the freight — a trucking company, airline, or steamship line.

The legal right of a carrier to hold cargo until the freight charges are paid.

Local hauling of goods within a city or metropolitan area.

A payment method where the buyer pays for goods when they receive the shipping documents.

Payment is collected from the receiver at the time of delivery.

The standard unit of volume measurement used in international ocean and air freight.

US Customs and Border Protection — the agency responsible for regulating imports and exports at US borders.

Canada Border Services Agency — responsible for border enforcement, customs, and trade compliance in Canada.

The required license for operating a commercial truck in the US or Canada.

A document certifying that goods have been inspected and meet required quality or safety standards.

A document certifying that goods have been manufactured and are ready for shipment.

A document certifying the country where the goods were manufactured — required for customs and trade agreements.

Hiring an entire ship or aircraft for a specific voyage or period.

A written contract between a shipowner and a charterer for the hire of a vessel.

A specialized trailer frame used to transport ocean or rail containers by road.

A block placed under wheels or cargo to prevent movement during transport.

An Incoterm where the seller pays for transport and insurance to the destination port — risk transfers when goods are loaded on the vessel.

A formal demand for payment due to loss or damage of freight.

The party making a freight or insurance claim.

Assigning an HS code or NMFC freight class to a product for customs or pricing purposes.

An organization that sets and verifies standards for ship construction and maintenance.

A BOL signed by the carrier with no notations of damage or shortage — goods received in good condition.

Official permission from customs for goods to enter a country or for a ship to leave port.

Combining freight from multiple forwarders into one container to reduce costs.

Shipping goods between ports within the same country.

Freight charges to be paid by the consignee (receiver) upon delivery.

A freight rate created by combining two or more separate published rates.

The primary document used by customs to determine the value, description, and origin of imported goods.

Goods imported for the purpose of soliciting orders — not for resale.

The type of goods being shipped (e.g., electronics, lumber, food products).

A carrier that offers transportation services to the general public at published rates.

Damage to freight that is not visible at delivery but is discovered after the driver has left.

Missing goods discovered after delivery when the packaging appears intact.

An association of ocean carriers that agree on rates and service conditions.

The person or company receiving the shipment — the buyer or end receiver.

The person or company sending the shipment — the seller or shipper.

Combining multiple small shipments into one larger load to reduce costs.

A government official residing in a foreign city who assists with trade and travel documentation.

An invoice certified by the consul of the importing country — required by some countries.

A standard metal box (20′, 40′, 45′, or 53′) used for intermodal transport by ship, rail, or truck.

The use of standardized containers to simplify and speed up the loading, transport, and unloading of goods.

A carrier that operates under specific long-term contracts rather than serving the general public.

Goods that are illegal to import, export, or possess.

The vehicle or vessel used to transport goods.

An Incoterm where the seller pays freight to the destination port but risk transfers when goods are loaded on the vessel.

A tariff imposed to offset subsidies given by a foreign government to its exporters.

A company or person that delivers small parcels and documents, typically with fast transit times.

Moving freight directly from an inbound truck to an outbound truck with minimal or no storage time.

Customs-Trade Partnership Against Terrorism — a US voluntary security program for supply chain partners.

The Canada-United States-Mexico Agreement — the trade deal replacing NAFTA, governing tariffs and trade rules between the three countries.

The government office where customs duties are collected and import/export paperwork is processed.

A licensed professional who prepares and files customs documents to clear goods through the border on behalf of an importer.

A physical or document inspection of goods by border agents to verify compliance.

A government schedule listing the duties applicable to specific imported goods.

The declared value of goods used by customs to calculate applicable duties and taxes.

A unit of weight equal to 100 lbs — commonly used in LTL and parcel pricing tiers.

A method of inventory management where a small portion of stock is counted on a rotating basis.

Physical harm to goods during transit — can be noted on the BOL at delivery.

Hazardous materials that require special handling, labeling, and documentation during transport.

An Incoterm where the seller is responsible for all costs including freight, insurance, and import duties to the buyer’s location.

The weight of the empty vehicle or container itself, not including cargo.

Driving a commercial truck without any cargo on board.

The maximum weight a ship can safely carry, including cargo, fuel, and crew.

A formal statement made to customs describing the goods being imported or exported.

A service that provides proof that a parcel or shipment was successfully delivered.

A document signed by the consignee confirming they received the shipment.

A fee charged by a port or terminal when a container is left past its allotted free time.

The weight of a shipment divided by its volume — used to determine LTL freight class.

A facility used for storing goods, vehicles, or equipment.

A fee charged when a driver is kept waiting at a pickup or delivery location beyond the allowed free time.

The process of unloading goods from a container — also called “stripping.”

A departure from the agreed or planned shipping route.

IATA rules governing the transport of hazardous materials by air.

A pricing method where carriers charge based on the volume of a package when it is large but light.

A shipment that moves from origin to destination without stopping at intermediate terminals.

The unloading of cargo from a ship, aircraft, or truck.

The person who coordinates truck movements, assigns loads, and communicates with drivers.

The process of delivering goods from a warehouse or DC to customers or retail locations.

A warehouse focused on receiving, sorting, and shipping goods to retailers or consumers.

A platform or bay where trucks are loaded and unloaded at a warehouse or terminal.

A receipt issued when goods are delivered to a port or terminal for loading onto a vessel.

Any written or electronic record used in the shipping process (BOL, invoice, packing list, etc.).

Shipping within the same country — not crossing an international border.

A shipping service that picks up from the shipper’s location and delivers to the receiver’s door.

A trailer with a lowered center section used for hauling tall or oversized equipment.

A tractor pulling two trailers at the same time — common in LTL linehaul operations.

The depth of water a ship needs to float — important for port access.

A refund of customs duties paid on goods that are later exported from the country.

Short-distance trucking, typically moving containers between a port, rail ramp, and a nearby warehouse.

When a truck driver helps load or unload freight — usually an accessorial charge.

Shipping goods directly from the manufacturer or supplier to the end customer without the retailer handling the product.

Leaving a trailer at a shipper or receiver’s facility for loading or unloading at their convenience.

Goods that are not liquid or refrigerated — standard general freight.

A standard enclosed trailer used to protect freight from weather — the most common trailer type.

Material such as wood, air bags, or foam used to secure and protect cargo inside a truck or container.

A government tax imposed on imported or exported goods.

A US classification number for goods subject to export controls under the Export Administration Regulations.

A device installed in commercial trucks that automatically records a driver’s hours of service (HOS).

A government-imposed ban on trade with a specific country or on specific goods.

The electronic transmission of cargo and driver data to CBSA or CBP before arriving at the border.

In transit — on the way to the destination.

The formal process of declaring goods to customs for clearance into a country.

The US CBP document that details the value, classification, and duty owed on an import.

Estimated Time of Arrival / Estimated Time of Departure.

An Incoterm where the buyer is responsible for all costs and risks from the moment goods leave the seller’s premises.

The value of one currency expressed in terms of another — affects landed cost on cross-border shipments.

Goods or carriers not subject to certain regulations or tariffs.

A faster-than-standard shipping service, often at a premium price.

Sending goods from one country to another.

A premium fast-delivery service offered by couriers and carriers.

An Incoterm where the seller delivers goods to a carrier named by the buyer at a specified location.

Using an entire 20′ or 40′ ocean container for a single shipper’s goods.

A smaller ship that transports containers between smaller ports and a main hub port.

A vessel that transports passengers, vehicles, and cargo across a body of water.

An inventory method where the oldest stock is sold or used first.

An open trailer without sides or a roof — used for oversized, heavy, or awkward freight.

An ocean container without side walls, used for oversized or heavy cargo.

A group of trucks, ships, or aircraft owned or operated by one company.

An Incoterm defining the point at which risk transfers from seller to buyer — typically when goods are loaded on the vessel.

A contract clause that excuses a party from performance due to extraordinary events like natural disasters or war.

A powered vehicle used to lift and move pallets and heavy goods in a warehouse or dock.

The amount of time a carrier allows for loading or unloading before detention or demurrage fees begin.

A designated area where goods can be stored, handled, or processed without paying customs duties.

Goods transported by a carrier — also refers to the cost of transporting those goods.

An invoice issued by a carrier for transportation services rendered.

A number (50–500) assigned by the NMFC to LTL freight based on density, stowability, handling, and liability.

A company that organizes the shipment of goods on behalf of shippers — does not own the transport equipment.

Shipping that uses the entire capacity of a 53′ trailer for one shipper’s goods.

A variable fee added by carriers to offset changes in fuel prices — usually a percentage of the base rate.

The complete process of receiving, picking, packing, and shipping customer orders.

A major port, airport, or hub city that serves as a central point for routing freight.

A maritime principle where all parties in a voyage share the cost of losses from a voluntary sacrifice (e.g., jettisoning cargo to save the ship).

Goods that are not bulk, liquid, or hazardous — standard packaged freight.

The measurement around the thickest part of a package — used in parcel size calculations.

An across-the-board price increase announced by carriers, common in ocean freight.

The total weight of the goods plus all packaging and the vehicle or container.

An internationally standardized 6–10 digit code used to classify goods for customs duties and trade statistics.

Hazardous materials — goods that require special handling, labeling, and permits during transport.

A container or trailer that is taller than the standard height — provides extra volume capacity.

The enclosed cargo area inside a ship.

An expedited delivery using a smaller truck or pickup with a trailer — used for urgent, time-sensitive loads.

The main body of a ship.

International Air Transport Association — sets global standards for air freight and passenger travel.

International Civil Aviation Organization — the UN agency that sets international aviation standards.

Bringing goods into a country from abroad.

A government document authorizing the import of restricted or controlled goods.

Goods moving under customs control without duties being paid — typically for transit or storage.

International rules published by the ICC that define the responsibilities of buyers and sellers for the delivery of goods.

Away from the coast — refers to transport or locations not at a port.

A service where the driver moves freight inside a building, past the threshold — an accessorial charge.

A review of goods by customs or a third party to verify compliance, quality, or quantity.

Financial protection against loss, damage, or delay of goods during transit.

The transfer of freight or equipment between two carriers.

Using two or more carriers to complete a single shipment.

Using two or more modes of transport (e.g., ship + rail + truck) for a single shipment.

A rail facility where containers are transferred between trains and trucks.

The goods a company has in stock at any given time.

A measure of how many times a company sells and replaces its inventory in a given period.

A bill from the seller to the buyer listing goods, quantities, and prices.

Importer Security Filing — required for ocean imports into the US, filed 24 hours before loading.

The act of throwing cargo overboard to lighten a ship in an emergency.

A supply chain strategy where goods are received only as they are needed in production — minimizes inventory costs.

Assembling individual items into a single packaged “kit” or SKU for sale or shipment.

A unit of speed for ships — equal to one nautical mile per hour.

A tag or sticker on a package containing shipping, handling, or hazmat information.

The cargo loaded onto a ship or truck — as in “Bill of Lading.”

Using overland transport (rail or truck) between two ocean legs of a shipment.

The total cost of a product including purchase price, freight, insurance, duties, and taxes.

The final leg of a delivery from a distribution hub to the end customer.

Securing cargo with ropes, chains, or straps to prevent movement during transport.

When a driver is required to stay overnight due to delays or hours-of-service rules.

Sharing an ocean container with other shippers — goods from multiple companies fill one container.

A bank guarantee that a seller will receive payment once shipping documents are presented.

Legal responsibility for loss, damage, or delay of goods.

Government permission to import, export, or operate as a carrier or broker.

A legal claim on goods until a debt (such as freight charges) is paid.

An inventory method where the newest stock is sold or used first.

A hydraulic platform on the back of a truck used to raise or lower freight when no loading dock is available.

A flat-bottomed barge used to transfer cargo between a ship and the shore.

The movement of freight between cities or terminals — the main transport leg.

The percentage of available space or capacity being used on a vehicle or vessel.

The management of the flow of goods, information, and resources from origin to destination.

Goods that are missing or destroyed during transit.

A trailer with a very low deck height, used for hauling tall or heavy equipment.

Shipping small amounts of freight that share truck space with other shippers — priced by class, weight, and distance.

The upper cargo deck of a freighter aircraft.

A complete list of all cargo on a specific vehicle, vessel, or aircraft.

Related to the sea or ocean shipping.

The “Made in [Country]” label or other required markings on imported goods.

The captain of a ship.

The dimensions or weight of a shipment used for pricing.

A regular route that makes multiple pickups or deliveries at different stops.

The type of transport used — truck, rail, ocean, or air.

The North American Free Trade Agreement — replaced by CUSMA/USMCA in 2020.

The weight of the goods only, excluding packaging and the container.

The North American standard for classifying LTL freight — assigns a class (50–500) based on density, handling, and liability.

A point in a supply chain network such as a warehouse, port, or terminal.

A foreign company that imports goods into Canada without having a physical presence there.

The person or company to be notified when a shipment arrives at its destination.

A freight forwarder that issues its own bills of lading but does not own ships.

A container with a removable roof, used for cargo that must be loaded from above.

Selecting items from warehouse shelves to fulfill a customer order.

The starting point of a shipment.

Transport by road or rail rather than sea or air.

A shipment that exceeds standard size or weight limits — requires special permits or equipment.

A shipment exceeding legal weight limits — requires special permits.

A document detailing the contents, quantities, and weights of each package in a shipment.

A wooden or plastic platform used to stack and move goods with a forklift or pallet jack.

A manual or powered tool used to lift and move pallets.

The US CBP system for pre-clearing truck shipments before they arrive at the border.

The CBSA system for pre-clearing truck shipments before they arrive at the Canadian border.

The weight of the cargo being carried, not including the vehicle.

A daily fee charged for the use of a carrier’s container or chassis beyond the free period.

A fulfillment service where items are picked from inventory and packed into shipping boxes.

The theft of small quantities of goods from a shipment.

Documentation confirming delivery — includes date, time, receiver name, and signature.

The port where a ship’s cargo is unloaded.

The official location where goods and people enter a country.

The port where cargo is loaded onto a vessel.

A legal document authorizing a customs broker to act on behalf of an importer.

Freight charges paid by the shipper before or at the time of shipment.

A carrier-assigned tracking number for an LTL shipment.

A preliminary invoice sent before goods are shipped — used for customs or financing purposes.

The process of moving received goods to their designated storage location in a warehouse.

A government-imposed limit on the quantity of a specific good that can be imported or exported.

A carrier adjustment to the freight class when the declared class does not match the actual goods.

A refrigerated container or trailer used for temperature-sensitive goods.

When customs officially allows goods to enter the commerce of the country.

Delivery to a home address — typically incurs an extra surcharge from the carrier.

An extra fee for delivering a parcel or freight to a residential address.

The process of handling customer returns — also called Reverse Logistics.

A carrier adjustment when the actual weight of a shipment differs from what was declared.

Wireless scanning technology used in warehouses for inventory tracking.

A ship designed to carry wheeled cargo such as cars and trucks that drive on and off.

Extra inventory held to protect against unexpected demand or supply chain disruptions.

A unique 4-letter code assigned to identify a transportation company in North America.

A US de minimis provision allowing duty-free entry for shipments valued under $800 USD.

The person or company sending the goods — also called the consignor.

A delivery service where the receiver must sign to confirm receipt of the package.

A unique code assigned to a specific product for inventory tracking.

A BOL notation indicating the carrier did not verify the piece count inside a sealed container.

Organizing a warehouse to place high-volume items in the most accessible locations.

A one-time freight rate negotiated for a specific shipment — not a contract rate.

A person or company that loads and unloads ships at a port.

An extra fee added to the base freight rate for specific conditions or services.

A government tax on imported goods — also refers to a carrier’s published rate schedule.

A number used by the IRS (US) or CRA (Canada) to identify a business for tax purposes.

The standard unit for measuring container capacity — one 20′ container equals one TEU.

Outsourcing warehousing, fulfillment, and logistics operations to a specialized provider.

A unique ID assigned to a shipment used to monitor its location and status.

A unique 14-digit number assigned to a Canadian customs entry.

Moving cargo from one vessel or vehicle to another at an intermediate point.

The final recipient of the goods in the destination country.

A container or pallet used to load luggage and cargo onto an aircraft.

A consumption tax applied at each stage of production — similar to GST/HST in Canada.

A ship or large boat used for transporting cargo.

An insurance surcharge for shipping through areas affected by conflict or war.

A customs entry for goods to be stored in a bonded warehouse without immediate duty payment.

A fee charged by a port for using its piers or wharves.

When a customer picks up their freight directly from a carrier terminal instead of having it delivered.

Software used to manage and optimize warehouse operations including receiving, picking, and shipping.

A logistics strategy where goods are transferred directly from inbound to outbound trucks with no storage.

The revenue earned by a carrier per unit of traffic — used to measure profitability.

Goods that are taxable at a 0% rate — common in Canadian GST for basic groceries and exports.

A geographic area used by carriers to determine shipping rates — the farther the zone, the higher the rate.

A warehouse method where pickers are assigned to specific zones and only pick items in their area.