Glossary of Freight Terms

A licensed carrier that issues bills of lading and accepts responsibility for cargo, but doesn't own ocean vessels. NVOCCs contract with ocean carriers (VOCCs) and operate under FMC tariffs in the United States. Conveyco is a licensed NVOCC.

Umbrella term used by the FMC for both NVOCCs and ocean freight forwarders. OTIs are licensed entities that facilitate ocean shipments without operating vessels themselves.

The actual ocean carriers that own and operate container vessels — Maersk, MSC, CMA CGM, Hapag-Lloyd, ONE, ZIM, and others. NVOCCs contract space with VOCCs to move cargo.

The US federal agency that regulates ocean transportation. The FMC licenses NVOCCs and freight forwarders, publishes tariffs, and oversees shipping practices in US foreign trade.

A licensed agent that arranges international shipments on behalf of the shipper but doesn't take responsibility as a carrier. Forwarders coordinate booking, documentation, and routing but don't issue their own bills of lading. Conveyco operates as both a freight forwarder and an NVOCC.

A licensed individual or company that handles customs clearance for imports — preparing entries, paying duties, and ensuring regulatory compliance. Customs brokers are licensed separately from freight forwarders, though many companies offer both services.

Short-distance trucking of containers between ports, rail terminals, and warehouses. Most drayage moves are within 100 miles of a port or rail ramp.

Moving cargo from one container or equipment type to another at an intermediate point. Common when ocean containers need to be unloaded to domestic trailers for inland delivery, or to consolidate multiple shipments.

Cargo movement that uses multiple modes of transport — typically ocean + rail + truck — without unloading the cargo between modes. Containers move from ship to rail car to chassis without being opened.

Carrier haulage = the ocean carrier arranges the inland transportation (truck or rail) at the destination. Merchant haulage = the shipper (or their forwarder) arranges inland transport separately. Each option has different costs, control levels, and equipment availability.

Another term for an ocean carrier or VOCC. Refers to the companies that operate container vessels on regular schedules between ports.

A broad term for companies that handle logistics services on behalf of shippers — warehousing, transportation, fulfillment, and supply chain management. NVOCCs and freight forwarders are types of 3PLs focused on international ocean shipping.

A rate classification where the carrier charges one rate regardless of the actual commodity in the container. Often used for mixed-commodity shipments or when commodity-specific rates aren't necessary.

Service level designations. Port-to-Port = origin port to destination port only. Door-to-Door = pickup from the shipper's facility through delivery to the consignee's facility. Door-to-Port = pickup from shipper but delivery only to destination port. Choose based on which legs your shipper or consignee can handle.

The primary shipping document. Functions as a receipt for cargo, a contract of carriage, and a document of title. Required for every ocean shipment. The original bill of lading typically must be surrendered to release cargo at destination.

Master BL (MBL) = issued by the ocean carrier (VOCC) to the NVOCC. House BL (HBL) = issued by the NVOCC to the shipper. Both cover the same cargo but represent different contractual relationships. Customers usually receive the House BL.

A non-negotiable transport document issued for air freight shipments, similar in function to a bill of lading. Acts as a receipt of goods, a contract of carriage, and a record of the shipment. Conveyco arranges air freight through specialized air consolidators (such as Air Menzies and Shipco), and their AWBs show the customer as shipper and the final consignee as consignee. In customer correspondence, these are typically referred to simply as AWBs or MAWBs.

A commercial document issued by the seller to the buyer showing the cargo, prices, and terms of sale. Required for customs clearance and used to determine duties and taxes at destination.

A document listing the contents of each package, carton, or pallet in a shipment. Used by customs, carriers, and consignees to verify cargo and resolve discrepancies.

Document certifying where the goods were manufactured or produced. Required for customs clearance, duty calculation, and qualifying for free trade agreement preferences.

Official certificates issued by USDA (and equivalent foreign agencies) confirming that agricultural and food products meet the importing country's sanitary and health requirements. Different types exist for different commodities — phytosanitary certificates for plants and plant products, veterinary health certificates for animal products, dairy-specific certificates, etc. Format requirements vary by destination country. Obtaining these certificates is the responsibility of the shipper, who must coordinate directly with the appropriate USDA entity (typically APHIS) and ensure all pre-loading inspection requirements have been met. Conveyco coordinates timing and documentation flow but does not issue these certificates.

Required filing for US imports. Importers must submit 10 data elements about the shipment to US Customs at least 24 hours before the cargo is loaded on the vessel at origin. Failure to file or late filing results in fines.

A payment instrument issued by the buyer's bank guaranteeing payment to the seller once specific shipping documents are presented. Common in international trade where buyer and seller don't have established credit relationships. Documentation must match the LC terms exactly.

A release type for master bills of lading (MBLs) issued by ocean carriers, functioning similarly to a sea waybill. Most commonly used when an original MBL has been held for payment per the shipper's request, then released electronically once payment is confirmed. Conveyco does not issue telex releases for our house bills of lading (HBLs), but our partner ocean carriers can typically issue telex releases for MBLs when needed. More accurately described as a solution to a payment timing constraint than a true release type.

A non-negotiable shipping document used instead of a traditional Bill of Lading. Names the consignee directly and doesn't function as a document of title — so no original copy needs to surrender to release cargo. Used when the consignee is known and payment isn't contingent on document presentation.

A document issued by the carrier or terminal confirming receipt of cargo at the origin port. Typically the precursor to issuing the Bill of Lading.

International Standards for Phytosanitary Measures No. 15. Global standard requiring wood packaging materials (pallets, crates, dunnage) used in international shipments to be heat-treated or fumigated and stamped with the IPPC mark. Cargo arriving on non-compliant wood pallets is typically rejected at destination customs.

The international stamp required on ISPM-15 compliant wood packaging. Identifies the country of treatment, the treatment method (HT for heat treatment, MB for methyl bromide fumigation), and the producer's certification number. Must be visible on at least two sides of the pallet to satisfy customs inspection.

The standard method for ISPM-15 compliance. Wood pallets are heated to a core temperature of at least 56°C (132.8°F) for at least 30 minutes. Effectively eliminates wood-borne pests. The most common compliance method globally, preferred over chemical fumigation.

Egypt's mandatory advance cargo declaration system, in effect since April 2021. Importers must register and submit cargo information to Egyptian Customs (via the Nafeza platform) before goods are shipped to Egypt. The ACID number must appear on the bill of lading and commercial documents. Failure to comply can result in cargo being refused entry. Conveyco coordinates ACID compliance with our customs partners for shipments destined to Egypt.

A unique 14-digit number issued by the US Automated Export System (AES) confirming successful filing of Electronic Export Information (EEI). Required for US exports valued over $2,500 per Schedule B number, or for any shipment requiring an export license. The ITN must appear on the bill of lading or air waybill as proof of filing. Format: 'AES X' followed by 14 digits (e.g., AES X20260519143025).

Japan Customs requirement that ocean carriers and NVOCCs electronically file cargo information at least 24 hours before vessel departure from the port of loading. Sometimes called the 'Japan 24-Hour Rule.' Mandatory since March 2014 for all sea freight containerized cargo bound for Japanese ports. Non-compliance penalties include fines up to JPY 500,000 or cargo refused loading. Conveyco files AFR directly for our Japan-bound shipments.

US Customs' electronic system for receiving cargo manifest data from carriers. Manifests must be filed before cargo arrives at US ports. NVOCCs and carriers transmit through AMS to comply with US customs requirements.

The US federal agency that handles customs clearance, inspections, and enforcement at US ports of entry. CBP determines duty rates, inspects cargo, and enforces import/export regulations.

Canada Border Services Agency's mandatory electronic export reporting portal. Replaced the paper-based Canadian Automated Export Declaration (CAED) system in 2020. Required for goods exported from Canada valued over CAD $2,000 or otherwise restricted. Notable exception: most goods exported to the United States are exempt. Reporting deadlines vary by transport mode (e.g., 48 hours before vessel loading for marine; 2 hours for air).

The country where goods were manufactured, produced, or substantially transformed. Determines duty rates, marking requirements, and eligibility for free trade agreement preferences. Goods must be marked with country of origin in most jurisdictions.

A financial guarantee required for importing goods into the United States. Ensures payment of duties, taxes, and compliance with customs regulations. Can be a single-entry bond (one shipment) or continuous bond (multiple shipments over time).

A duty refund program allowing importers to recover duties paid on imported goods that are subsequently exported (or used to produce exported goods). Complex eligibility requirements but valuable for re-exporters.

Often used interchangeably, but distinct. Tariff = the published rate schedule (e.g., the HTS). Duty = the actual tax paid on imported goods based on that tariff. Tariff rates can change through trade policy decisions; duties are calculated and paid per shipment.

A mandatory waiver certificate required for maritime imports into 25+ African countries. Goes by different names depending on the destination: ECTN (Electronic Cargo Tracking Note), BESC (Bordereau Électronique de Suivi des Cargaisons), FERI (DR Congo), BIETC (Gabon), or CNCA (Angola). Customs authorities at the destination use it to track and verify shipments before arrival. Missing or invalid ECTN can result in cargo being held, fined, or returned. Required for shipments to Angola, Benin, Burkina Faso, Burundi, Cameroon, Central African Republic, Chad, DR Congo, Djibouti, Equatorial Guinea, Gabon, Ghana, Guinea-Bissau, Ivory Coast, Liberia, Madagascar, Mali, Niger, Republic of Congo, Republic of Guinea, Senegal, Sierra Leone, Somalia, South Sudan, Sudan, Togo, and others. Conveyco coordinates ECTN issuance through our destination partners.

Required filing for shipments entering the European Union. Carriers must submit cargo data to EU customs at least 24 hours before vessel arrival (or earlier for certain trade routes). Similar in purpose to the US ISF requirement.

Standardized classification codes for traded goods. HS Code = the 6-digit international classification. HTS = the 10-digit US-specific classification used for customs entry. Correct classification determines duty rates and regulatory requirements.

The legal entity responsible for ensuring imported goods comply with customs regulations, paying duties, and maintaining import records. Usually the consignee, but can be a third party (e.g., a US-based subsidiary or licensed broker).

The UAE's advance cargo information requirement, administered by the National Advance Information Centre (NAIC). Effective July 31, 2025 with a grace period extending to March 31, 2026, MPCI requires shipping lines, freight forwarders, and NVOCCs to file detailed cargo information for all containerized cargo bound to or transshipping through the UAE. Each filer needs an MPCI Party ID. NAIC issues a status response: ACT (cleared to load), DNL (do not load), or other codes.

A legal authorization allowing a customs broker or freight forwarder to act on behalf of the importer or exporter for customs and shipping purposes. Required for brokers to file customs entries on a client's behalf.

A proposed US Customs and Border Protection (CBP) rule that would require advance electronic submission of export manifest data for ocean vessel cargo departing the United States. Published as a Notice of Proposed Rulemaking on February 10, 2026, with comments accepted through April 13, 2026. If finalized, EEM filing would be required 24 hours before cargo loading (similar to import AMS). NVOCCs, freight forwarders, and customs brokers may file directly if they have direct knowledge of the manifest data. The rule is currently in development and not yet mandatory. Conveyco is tracking EEM developments and will be ready to file when the rule takes effect.

Standard units for measuring container volumes and vessel capacities. 1 TEU = one 20-foot container. 1 FEU = one 40-foot container (or 2 TEU). Vessel capacities and port throughput are typically reported in TEU.

Refrigerated container with built-in temperature control. Used for cargo requiring temperature management — dairy products, fresh produce, frozen goods, chemicals with temperature sensitivity, pharmaceuticals. Temperature range typically -25°C to +25°C.

A diesel generator that powers a reefer container during overland transport when the container isn't plugged into terminal power. Required for reefer cargo on truck and rail moves. Either truck-mounted or container-mounted.

Mandatory inspection of a reefer container's refrigeration unit before loading. Verifies the unit is operating correctly and can maintain the required temperature throughout transit. Must be documented before cargo is loaded.

A heavy poly liner installed inside a container before loading bulk dry cargo (pulses, grains, animal feed, polymers). Protects cargo from moisture, contamination, and contact with container walls. Filled via top spout.

Large woven polypropylene bags that hold 1–2 metric tons of bulk material. Common for pulses, grains, minerals, and powdered products. Loaded directly into containers, typically with corner protection and top netting.

The wheeled frame used to carry a container on a truck. Tandem chassis (2 axles) is standard for most container moves. Triaxle chassis (3 axles) allows heavier 20-foot loads to comply with axle weight limits. Most US chassis are owned by leasing pools (e.g., TRAC, DCLI).

A chassis with three axles, used for hauling heavy 20-foot containers. Spreads cargo weight across more axles, allowing payload up to approximately 44,000 lbs while staying within axle weight limits. Standard 40-foot chassis use tandem (2-axle) configuration only.

A specialty container with no roof and collapsible end walls. Used for oversized, heavy, or irregularly-shaped cargo that doesn't fit in standard containers — machinery, vehicles, large industrial equipment. Loaded from above or the sides.

A container with no permanent roof — covered by a removable tarpaulin. Used for cargo that can't be loaded through standard doors or exceeds container height. Common for tall machinery and oversized cargo.

A container that is one foot taller than standard (9'6" vs 8'6"). Same length and width as a standard container but ~12% more volume. Common in 40' size; widely used for light, voluminous cargo.

The most common container type — a fully enclosed steel container with standard 8'6" height. Available in 20', 40', and 40' high cube sizes. Used for general dry cargo that doesn't require specialty equipment.

The weight of an empty container. Typically 2,300 kg (5,071 lbs) for a 20-foot standard container and 3,750 kg (8,267 lbs) for a 40-foot standard. Reefer and specialty containers weigh more. Used to calculate maximum payload.

The maximum total weight (container tare + cargo) allowed for a container, set by ISO standards. Typically 30,480 kg (67,200 lbs) for 20-foot and 32,500 kg (71,650 lbs) for 40-foot containers. Stamped on the CSC plate on every container.

SOC = the shipper owns the container outright and is responsible for it. COC = the ocean carrier owns the container and provides it to the shipper for the shipment. Most ocean shipments use COC. SOC is more common in specialty cargo or where container availability is constrained.

A charge assessed by the port terminal when a container sits at the port longer than the allowed free time. Daily rate. Paid by the consignee (or freight forwarder) for delays at destination. Can also apply at origin if a container isn't loaded within free time.

A charge assessed by the carrier when a container is kept beyond the allowed free time for using the equipment (after pickup from the port). Daily rate. Encourages prompt return of containers to the carrier's pool.

The period during which demurrage and detention don't apply. Typically 4–7 days at the port for unloading, and 4–7 days for container return. Varies by carrier, port, and cargo type. Reefer containers often have shorter free time.

Separate from free time — refers to specific terminal-set free days for cargo pickup or container return. Some terminals offer additional free days for certain cargo types, expedited handling, or volume customers.

Daily rate charged for using equipment beyond free time — most commonly applied to chassis, containers, and reefer gen-sets. Charges accumulate quickly if equipment isn't returned promptly.

A fee charged by the port terminal for handling cargo through the dock. Calculated per ton or per container depending on the terminal. Usually included in the carrier's THC charge but sometimes billed separately.

Fee charged by the port terminal for loading or unloading containers from vessels. Charged at both origin and destination. Usually billed by the carrier and passed through to the shipper.

A fuel surcharge applied to ocean freight rates to account for changes in bunker (fuel) prices. Adjusted regularly by carriers. Can be a fixed amount or percentage of the base rate.

A surcharge applied to ocean freight rates to account for currency fluctuations between the carrier's billing currency and the customer's payment currency. Less common in USD-denominated trades.

Industry terms for loading (stuffing) and unloading (unstuffing) a container. Used in conjunction with terms like CY (Container Yard) and CFS (Container Freight Station) to describe where the work happens.

Required under the SOLAS (Safety of Life at Sea) convention. The shipper must declare and verify the total weight of a packed container (container + cargo + dunnage) before the cargo is loaded onto a vessel. Failure to submit VGM results in shipment delays.

A traffic mitigation program at the Ports of Los Angeles and Long Beach. Charges a fee on inbound containers entering the ports during peak hours, funding extended terminal hours. Often passed through to importers.

A charge when the chassis pool doesn't have a chassis available at the requested terminal — the driver must drive to another location to pick one up. Adds time and cost to the drayage move. Has become more common with port congestion and pool consolidation.

A periodic increase in ocean freight rates announced by carriers, typically applied across all customers on a specific trade lane. Usually happens 1–2 times per year on transpacific routes during peak season.

A surcharge applied during high-demand shipping periods, typically June–November on transpacific routes. Reflects the higher demand for capacity during back-to-school and holiday seasons.

Deadlines for booking and documentation. Vessel cut-off = last time cargo can be received at the port for loading on the vessel. Documentation cut-off = deadline for submitting required customs and shipping paperwork. ERD (Earliest Receiving Date) = first day the port will accept the cargo. Missing any cut-off can result in shipment delay.

FCL = a single shipper fills an entire container. LCL = multiple shippers share container space, with cargo consolidated at origin and deconsolidated at destination. LCL is rated by volume (cubic meters) rather than full container price; useful for smaller shipments.

FTL = a single shipper fills an entire trailer. LTL = multiple shippers share trailer space. The trucking equivalent of FCL/LCL. LTL has different operational characteristics — multiple stops, more handling — but works for smaller domestic loads.

International Commercial Terms (Incoterms 2020) define responsibilities between buyer and seller in international trade — who pays for shipping, insurance, and customs, and where risk transfers. See our Incoterms 2020 reference for a detailed breakdown.

CY = the port terminal area where full containers are stored before loading and after discharge. CFS = a facility where LCL cargo is consolidated into containers (origin) or deconsolidated from containers (destination). Determines where cargo is received and released.

POL = the port where cargo is loaded onto the vessel. POD = the port where cargo is discharged from the vessel. Different from origin and destination, which may be inland.

Fees charged at each end of the shipment for port-related services. Origin charges include carrier loading, documentation, customs clearance. Destination charges include unloading, terminal handling, and any inland transport. Important to know who pays under your Incoterm.

Insurance covering damage, loss, or theft of cargo during transit. Different from carrier liability (which is limited by international conventions). Customers buy cargo insurance separately to protect against the full value of their cargo. Strongly recommended for high-value or critical shipments.

Cargo insurance specifically for ocean transit. Covers vessel-related risks including general average (when cargo is sacrificed to save the ship), perils of the sea, and other ocean-specific risks. Required if shipping under CIF or CIP Incoterms.

Unpackaged cargo loaded loose into a container or vessel hold — pulses, grains, minerals, chemicals. Distinct from breakbulk (packaged but not containerized) and containerized cargo (in standard containers). Bulk dry cargo is often loaded with container liner bags for protection.

Non-containerized cargo loaded individually onto a vessel — pieces of machinery, vehicles, lumber, steel coils, project cargo. Slower to load and unload than containers, but necessary for cargo that doesn't fit in standard equipment.

Oversized, heavy, or specialized cargo requiring custom handling and routing — wind turbine components, refinery equipment, manufacturing machinery. Often moved via breakbulk vessels, flat racks, or specialized equipment. Requires careful planning and routing coordination.

A warehouse authorized by customs to store imported goods without paying duties until the goods are released for domestic use. Allows importers to defer duty payment, re-export goods without duty obligation, or transform goods before release.

A facility where LCL cargo is consolidated into containers (at origin) or deconsolidated from containers (at destination). The point where multiple shipments come together or separate. Cargo at a CFS is typically held until it can be combined into a full container or distributed to consignees.