Tools / Glossary

Freight, customs and trade terms, explained.

230 terms

Numbers

20-foot standard container 20GP Also: 20DV, 20' container, 20ST Ocean freight: The smaller standard dry container: about 20 feet long and 8 feet 6 inches tall, with roughly 33 cubic meters of internal space. Good for heavy, dense cargo such as tiles or metal parts, which reach the weight limit before they fill a bigger box.; See also40-foot standard container Twenty-foot equivalent unit Load plan Container load calculator
24-hour rule Also: Advance manifest rule, AMS Ocean freight: A US rule that ocean carriers and NVOCCs must send CBP the cargo manifest at least 24 hours before a container is loaded on a US-bound ship at the foreign port. It is filed through the Automated Manifest System (AMS).; See alsoImporter Security Filing Customs and Border Protection
40-foot high cube 40HC Also: 40HQ, High cube, HC Ocean freight: A 40-foot container that is one foot taller than standard (9 feet 6 inches), giving roughly 76 cubic meters of internal space. The workhorse for light, bulky consumer goods from Asia. It usually costs little or nothing more than a standard 40.; See also40-foot standard container Load plan Container load calculator
40-foot standard container 40GP Also: 40DV, 40' container, 40ST Ocean freight: A standard dry container about 40 feet long and 8 feet 6 inches tall, with roughly 67 cubic meters of internal space.; See also40-foot high cube 20-foot standard container Forty-foot equivalent unit Container load calculator

A

Accessorial charges Also: Accessorials Destination, warehousing & trucking: Extra trucking and handling charges on top of the base rate, such as waiting time, chassis split, liftgate, inside delivery, storage or a dry run when cargo is not ready. Ask for an accessorial schedule with every quote: these charges often explain why the final invoice differs from the quote.; See alsoChassis split Live unload Fuel surcharge Landed cost Destination Management
Ad valorem Tariffs & trade compliance: A duty charged as a percentage of the goods’ customs value, the most common way US duties are calculated. Some duties are instead a fixed amount per unit, kilogram or liter.; See alsoDuty Customs valuation
Air Cargo Advance Screening ACAS Air freight: A US requirement for air carriers and forwarders to send CBP basic shipment data before US-bound cargo is loaded on the aircraft at the last foreign airport, so high-risk cargo can be flagged early.; See also24-hour rule Known shipper Customs and Border Protection
Air consolidation Also: Air consol Air freight: A forwarder grouping several shippers’ air cargo under one master air waybill to get better airline rates, then splitting it again at destination. Consolidated air is cheaper than a direct booking but may wait a day or two for a scheduled flight.; See alsoMaster air waybill House air waybill Consolidation Air Freight
Air waybill AWB Air freight: The transport document for air cargo. Unlike an ocean bill of lading, it is not a document of title: it is a receipt and contract of carriage, and the cargo is released to the named consignee.; See alsoMaster air waybill House air waybill Bill of lading Air Freight
All-in rate Also: All-inclusive rate Rates, contracts & insurance: A freight price that includes the base rate and the main surcharges, so you can compare quotes like for like. Always check exactly which charges are included.; See alsoBunker adjustment factor Terminal handling charge Landed cost
Antidumping and countervailing duties AD/CVD Also: Antidumping, Countervailing duties, ADD Tariffs & trade compliance: Extra duties on specific products from specific countries, set after US investigations find goods are sold below fair value (antidumping) or unfairly subsidized (countervailing). Rates vary by manufacturer and can be very high. Cases cover items such as aluminum extrusions, wooden cabinets and solar cells. Check scope before you source a new product or switch supplier.; See alsoDuty Country of origin Transshipment
Application programming interface API Technology & visibility: A way for software systems to request and share data with each other directly, often in real time, for example sending shipment updates from a logistics platform into your ERP.; See alsoElectronic data interchange Supply chain visibility OWL Vision
Arrival notice AN Shipping documents: A notice from the carrier or forwarder that a shipment is about to arrive, with the ETA, container details, location, charges due and free time. Read it on the day it arrives: it is your clock for customs, payment and pickup.; See alsoDelivery order Free time Notify party
Assists US customs & entry: Items or services the buyer provides free or at a discount to the overseas factory for making the goods, such as molds, tooling, materials or design work. Their value must be added to the customs value. Assists are easy to forget. Molds paid for separately are the classic example.; See alsoCustoms valuation Reasonable care
Automated Commercial Environment ACE US customs & entry: CBP’s electronic system for imports and exports. Brokers file entries through it, partner agencies receive data through it, and importers can open an ACE portal account to see their own entries and reports. An ACE portal account is free and gives you your own view of entries, duties and liquidations.; See alsoCustoms entry Partner government agency

B

Belly cargo Also: Bellyhold Air freight: Freight carried in the lower hold of passenger aircraft. A large share of the world’s air cargo travels this way, so air capacity rises and falls with passenger flights. The rest flies on dedicated freighter aircraft, which can take larger and taller pieces.; See alsoKnown shipper
Beneficial cargo owner BCO General: The company that actually owns the goods being shipped, such as an importer or retailer, as opposed to an intermediary like an NVOCC.; See alsoNamed account Shipper Service contract
Bill of lading B/L Also: BOL, BL Shipping documents: The main ocean transport document: a receipt for the cargo, the contract of carriage and, when issued as an original, a document of title that controls who can collect the goods. Check names, cargo details and marks on the draft B/L before it is issued. Corrections afterwards can cost time and money.; See alsoMaster bill of lading House bill of lading Original bill of lading Sea waybill Telex release Ocean Freight
Binding ruling Also: CBP ruling, Advance ruling US customs & entry: A written decision from CBP, requested before importing, on how a product will be treated, such as its classification, origin or valuation. CBP must follow it for that product. Published rulings are searchable in CBP’s CROSS database, a useful way to see how similar products have been classified.; See alsoHarmonized Tariff Schedule Country of origin Reasonable care
Blank sailing Also: Void sailing, Cancelled sailing Ocean freight: When a carrier cancels a scheduled voyage or skips a port, usually to cut capacity when demand is weak. Cargo booked on it has to move to another sailing.; See alsoRolled cargo Carrier alliance
Bonded warehouse US customs & entry: A CBP-approved warehouse where imported goods can be stored without paying duty until they are withdrawn for the US market, for up to five years.; See alsoForeign-trade zone General order In-bond movement
Booking Also: Shipping order, SO, Booking confirmation Origin & purchase orders: Reserving space on a vessel or flight for a shipment. The carrier or forwarder confirms with a booking number and the key dates, including cut-offs.; See alsoCargo ready date Cut-off Space allocation Origin Management
Bunker adjustment factor BAF Also: Bunker surcharge, Fuel surcharge (ocean), LSS, Low sulphur surcharge Rates, contracts & insurance: A surcharge that passes changes in ship fuel (bunker) costs on to shippers. It is recalculated regularly, often quarterly or monthly.; See alsoCurrency adjustment factor All-in rate Fuel surcharge
Buyer's consolidation Also: Buyers consol, Multi-vendor consolidation, Shipper consolidation Origin & purchase orders: Combining cargo from several of the same buyer’s suppliers into one full container at an origin warehouse, so the buyer ships FCL instead of several LCL shipments. It cuts freight cost per unit and handling at destination, and can arrive store-ready if cartons are sorted at origin.; See alsoConsolidation Full container load Container freight station Origin management services Origin Management

C

Cargo insurance Also: Marine cargo insurance, Freight insurance Rates, contracts & insurance: Insurance that covers the value of goods against loss or damage in transit. It is separate from the carrier’s limited legal liability and usually pays far more. Carrier liability is capped at low amounts per package or kilogram, so uninsured cargo is often under-protected. Check who arranges insurance under your Incoterm.; See alsoCarrier liability Institute Cargo Clauses General average Cost Insurance and Freight
Cargo ready date CRD Also: Ex-factory date, EXF, Goods ready date Origin & purchase orders: The date the supplier says goods will be finished, packed and available for pickup or delivery to the forwarder. Bookings are planned around it. CRDs often slip. Confirming them a week or two out avoids paying for space you cannot use.; See alsoBooking Purchase order Lead time Origin Management
Carriage and Insurance Paid To CIP Incoterms: Like CPT, but the seller must also buy broad cargo insurance (Institute Cargo Clauses A) for the buyer.; See CIP in the Incoterms explorer; See alsoIncoterms Carriage Paid To Institute Cargo Clauses
Carriage Paid To CPT Incoterms: The seller pays carriage to a named destination, but risk passes to the buyer when goods are handed to the first carrier at origin. Works for any mode.; See CPT in the Incoterms explorer; See alsoIncoterms Carriage and Insurance Paid To Cost and Freight
Carrier General: The company that physically moves the goods: a shipping line, airline, railroad or trucking company.; See alsoVessel operating common carrier Freight forwarder
Carrier alliance Also: Shipping alliance, Vessel sharing agreement, VSA Ocean freight: A group of ocean carriers that share space on each other’s ships to offer more routes and sailings. You may book with one carrier and sail on another’s vessel.; See alsoVessel operating common carrier Blank sailing
Carrier liability Rates, contracts & insurance: The carrier’s legal responsibility for loss or damage, limited by law and contract to fixed amounts per package or per kilogram. It rarely covers the full value of goods.; See alsoCargo insurance Freight claim
CBP Form 7501 Also: Entry summary, 7501 US customs & entry: The entry summary: the main record of an import, listing classification, value, origin and duties owed. It is generally due within 10 working days of release, with duty payment.; See alsoLiquidation Post-summary correction
Certificate of origin CO Also: C/O, Form A Shipping documents: A document, usually issued or stamped by a chamber of commerce or government body at origin, confirming where goods were made. Needed for some trade preference claims and requested in some origin reviews.; See alsoCountry of origin Free trade agreement
CET and MET exams Also: CET exam, MET exam, Contraband Enforcement Team US customs & entry: Exams by specialist CBP enforcement teams. A CET exam is run by a Contraband Enforcement Team looking for drugs, weapons or other contraband and usually means a physical inspection. MET is commonly used for a manifest-focused enforcement exam. Your broker will tell you which hold type applies; the type affects how long release is likely to take.; See alsoCustoms exam Intensive exam Customs hold
Chargeable weight Air freight: The weight an airline or forwarder actually bills: the greater of the actual gross weight and the volumetric weight. Light, bulky products pay for the space they take up. Tighter cartons and less void fill can lower your air bill noticeably.; See alsoVolumetric weight Weight or measure Air Freight
Chassis Ocean freight: The wheeled trailer frame a container sits on when it moves by truck. In the US, chassis are mostly supplied by leasing pools, and truckers pay a daily fee to use them.; See alsoChassis split Drayage Per diem
Chassis split Ocean freight: When the chassis is not kept where the container is, so the trucker has to collect a chassis from one location before picking up the container at another. It is billed as an extra charge.; See alsoChassis Drayage Accessorial charges
Children’s Product Certificate CPC Tariffs & trade compliance: A certificate the importer issues for products made mainly for children 12 and under, showing they meet the applicable CPSC rules based on testing by a CPSC-accepted third-party lab.; See alsoConsumer Product Safety Commission General Certificate of Conformity CPSC eFiling
China plus one Also: China+1, Supply chain diversification General: A sourcing strategy of adding suppliers in at least one other country, such as Vietnam, Thailand, Cambodia or India, alongside China to spread risk. Moving production changes your country of origin only if the product is genuinely made there. Plan for supplier development, new lead times and customs scrutiny.; See alsoCountry of origin Substantial transformation Vendor management Origin Management
Commercial invoice Also: CI Shipping documents: The seller’s invoice for the goods and the main document customs uses to value and classify them. It shows seller, buyer, a clear description, quantities, unit and total value, currency, origin and terms of sale. Vague descriptions (“parts”, “samples”) cause holds. Ask suppliers for invoices that match the product, the packing list and your PO.; See alsoPacking list Customs valuation Pro forma invoice Purchase order
Consignee General: The party the goods are shipped to, named on the bill of lading or air waybill, usually the buyer or its agent.; See alsoShipper Notify party Importer of record
Consolidation Also: Consol Origin & purchase orders: Combining several smaller shipments into one container or load to save cost and handling.; See alsoBuyer's consolidation Less than container load Deconsolidation Air consolidation Origin Management
Consumer Product Safety Commission CPSC Tariffs & trade compliance: The US agency that sets and enforces safety rules for consumer products, from toys and children’s products to furniture and electronics.; See alsoChildren’s Product Certificate General Certificate of Conformity CPSC eFiling Partner government agency
Container freight station CFS Ocean freight: A warehouse near a port where LCL cargo from several shippers is packed into containers at origin, or unpacked and sorted at destination.; See alsoLess than container load Consolidation Deconsolidation
Container loading supervision Also: Loading check, CLS Origin & purchase orders: An inspector watching a container being packed, checking quantities, carton condition and stowage, and recording the seal number with photos.; See alsoQuality control inspection Load plan Seal number
Container tracking Also: Shipment tracking Technology & visibility: Following a container’s status and location through key events such as gate in, loading, departure, transshipment, discharge and gate out.; See alsoMilestone Gate in and gate out OWL Vision
Container yard CY Ocean freight: The area at a port or inland terminal where full and empty containers are stored, received and released. “CY” on a booking means the container is handed over at the terminal, fully loaded.; See alsoContainer freight station Full container load Gate in and gate out
Continuous bond Also: Annual bond US customs & entry: A customs bond that covers all of an importer’s entries for a year and renews automatically. Its size is based on the duties, taxes and fees you paid over the previous year. If duties rise sharply, CBP may tell you your bond is insufficient. Review it whenever your tariff exposure changes.; See alsoCustoms bond Single transaction bond
Contract rate Also: Fixed rate Rates, contracts & insurance: A rate agreed in advance for a period, often a year, usually in return for a volume commitment. Fixed rates are not always fixed: surcharges can still change, and when spot rises well above contract, carriers may prioritize higher-paying cargo.; See alsoSpot rate Service contract Index-linked contract Minimum quantity commitment Ocean Freight
Control tower Origin & purchase orders: A central team, supported by a shared view of data, that monitors orders and shipments end to end, spots problems early and coordinates the response across suppliers, carriers and warehouses.; See alsoOrigin management services Exception management Supply chain visibility Origin Management
Cost and Freight CFR Also: C&F, CNF Incoterms: The seller pays ocean freight to the named destination port, but risk passes to the buyer once goods are on board at origin.; See CFR in the Incoterms explorer; See alsoIncoterms Cost Insurance and Freight Free On Board
Cost Insurance and Freight CIF Incoterms: Like CFR, but the seller also buys minimum cargo insurance (Institute Cargo Clauses C) for the buyer. Risk still passes once goods are on board at origin.; See CIF in the Incoterms explorer; See alsoIncoterms Cost and Freight Institute Cargo Clauses Cargo insurance
Country of origin COO US customs & entry: Where a product was made, or last substantially transformed, for customs purposes. It drives which duties and extra tariffs apply and how goods must be marked. Origin is decided by where the product is made, not where it ships from. Routing goods through another country does not change it.; See alsoSubstantial transformation Country of origin marking Certificate of origin Transshipment
Country of origin marking Also: Origin marking, Made in marking US customs & entry: The requirement that most imported goods, or their containers, show the country of origin in English, legibly and permanently, so the end buyer can see it.; See alsoCountry of origin Shipping marks
CPSC eFiling Tariffs & trade compliance: The requirement to file certificate data for CPSC-regulated products electronically with the customs entry, rather than only having the certificate on hand. It became mandatory for most regulated products in July 2026.; See alsoChildren’s Product Certificate General Certificate of Conformity Automated Commercial Environment
Cross-dock Also: Cross-docking Destination, warehousing & trucking: Moving goods straight from inbound to outbound trucks with little or no storage in between.; See alsoTransload Distribution center Destination Management
Cubic meter CBM Also: m3, Cube Ocean freight: The unit of volume used to measure ocean cargo: a space one meter long, wide and high. LCL rates and container capacity are both quoted in CBM. To work it out, multiply a carton’s length, width and height in meters, then multiply by the number of cartons.; See alsoWeight or measure Less than container load Load plan Container load calculator
Currency adjustment factor CAF Rates, contracts & insurance: A surcharge that offsets exchange-rate swings between the currency freight is billed in and the carrier’s costs.; See alsoBunker adjustment factor All-in rate
Customs and Border Protection CBP Also: US Customs US customs & entry: The US agency that controls goods entering the country: it collects duties, enforces trade laws, and releases or holds imported cargo.; See alsoPartner government agency Customs entry Automated Commercial Environment Destination Management
Customs bond Also: Import bond US customs & entry: A guarantee from a surety company to CBP that the importer will pay duties, taxes and penalties and follow the rules. It is required for formal entries and for ISF.; See alsoContinuous bond Single transaction bond Formal entry
Customs broker Also: Licensed customs broker, Broker US customs & entry: A professional licensed by CBP to prepare and file customs entries and pay duties on an importer’s behalf.; See alsoImporter of record Power of attorney Customs entry Destination Management
Customs entry Also: Entry, CBP Form 3461, Entry/immediate delivery US customs & entry: The filing that declares imported goods to CBP so they can be released. It is normally done in two parts: the release (entry) and the entry summary with duty payment. Entry generally must be filed within 15 days of arrival, or the goods can be sent to a general order warehouse.; See alsoFormal entry Informal entry CBP Form 7501 General order Destination Management
Customs exam Also: CBP exam, Inspection US customs & entry: A physical or X-ray inspection of imported cargo by CBP. Exams range from an X-ray scan to a full unload at an exam station, and the importer pays the costs. Exams are partly random. Clean, consistent documents and a good compliance record lower the odds, but nobody can guarantee you will never be examined.; See alsoVACIS exam Tailgate exam Intensive exam CET and MET exams Customs hold Destination Management
Customs hold Also: CBP hold, Hold US customs & entry: A stop placed on cargo by CBP or another agency so it cannot be released until documents are reviewed, an exam is done, or a problem is fixed. Free time keeps running during most holds, so storage charges can build up quickly.; See alsoCustoms exam Demurrage Partner government agency Destination Management
Customs Trade Partnership Against Terrorism CTPAT Also: C-TPAT Tariffs & trade compliance: A voluntary CBP program in which importers, carriers, brokers and logistics providers commit to supply chain security standards and are validated by CBP. Members may see fewer exams and priority processing.; See alsoCustoms exam Reasonable care
Customs valuation Also: Transaction value, Customs value US customs & entry: How the dutiable value of goods is worked out. In most cases it is the price actually paid for export to the US, plus certain additions such as assists, packing and some commissions, minus international freight and insurance.; See alsoAssists First sale rule Duty Commercial invoice
Cut-off Also: Cargo cut-off, CY cut-off, Documentation cut-off, SI cut-off, VGM cut-off Ocean freight: The deadline set by the carrier for each step before a sailing: delivering the container to the terminal, submitting shipping instructions, and declaring the VGM. Miss one and the cargo waits for the next ship.; See alsoVerified gross mass Rolled cargo Estimated time of departure

D

Dangerous goods DG Also: Hazmat, Hazardous materials, DGR Air freight: Cargo that can endanger health, safety or property in transport, such as lithium batteries, aerosols, paints, flammable liquids and some chemicals. It must be classified, packed, labeled and declared under strict rules. Air shipments follow the IATA Dangerous Goods Regulations; ocean shipments follow the IMDG Code. Undeclared DG can lead to fines and refused cargo, so tell your forwarder early, including about batteries inside products.; See alsoInternational Air Transport Association Safety data sheet Air Freight
Dashboard Technology & visibility: A screen that pulls key shipment, order and performance data into one view, often with charts and alerts, so teams can see status at a glance.; See alsoKey performance indicator Supply chain visibility OWL Vision
De minimis Also: Section 321, Type 86 entry, Entry type 86, $800 exemption US customs & entry: A US exemption that let shipments valued at $800 or less per person per day enter free of duty with minimal paperwork. As of late 2026 it is suspended for commercial imports by all modes, so low-value goods need an informal or formal entry and pay any duties owed. The rules here changed several times in 2025 and 2026. Check current CBP guidance before building a direct-to-consumer model around low-value parcels.; See alsoInformal entry Formal entry Express courier
Deconsolidation Also: Deconsol, Devanning, Destuffing, Unstuffing Destination, warehousing & trucking: Unloading a container at destination and sorting its contents by order, consignee or destination for onward delivery.; See alsoConsolidation Transload Container freight station Destination Management
Deferred air freight Also: Economy air, Standard air Air freight: An air service with a longer transit time than express or priority air, in return for a lower rate. Useful when ocean is too slow but next-day air is not needed.; See alsoSea-air Express courier Air Freight
Delivered at Place DAP Incoterms: The seller delivers goods to the named destination, ready for unloading. The buyer unloads, clears import customs and pays duties.; See DAP in the Incoterms explorer; See alsoIncoterms Delivered at Place Unloaded Delivered Duty Paid
Delivered at Place Unloaded DPU Also: DAT Incoterms: The seller delivers and unloads goods at the named destination. It replaced DAT (Delivered at Terminal) in Incoterms® 2020. The buyer clears import customs.; See DPU in the Incoterms explorer; See alsoIncoterms Delivered at Place
Delivered Duty Paid DDP Incoterms: The seller delivers to the named destination and handles import clearance and duties. For US imports this means the foreign seller acts as importer of record. You give up control of classification, valuation and compliance on goods entering under your brand. Many US importers avoid DDP for that reason.; See DDP in the Incoterms explorer; See alsoIncoterms Delivered at Place Importer of record
Delivery appointment Also: Appointment, Dock appointment Destination, warehousing & trucking: A booked time slot for a truck to deliver to, or collect from, a warehouse or terminal. Retailer and large DC appointments can be booked out days ahead, so request them early.; See alsoLive unload Accessorial charges Distribution center
Delivery order DO Shipping documents: The authorization that lets a trucker or warehouse collect cargo from the terminal or CFS once freight charges are paid and customs has released it.; See alsoArrival notice Drayage Telex release
Demurrage Also: D&D Ocean freight: A daily charge for leaving a full container at the port or terminal after the free time ends. Customs holds, exams and trucker shortages are the usual causes. Clearing customs before arrival and booking drayage early are the best defenses.; See alsoDetention Free time Last free day Per diem Customs hold Destination Management
Detention Also: D&D Ocean freight: A daily charge for keeping the carrier’s container outside the terminal (for example at your warehouse) beyond the free time, until the empty is returned.; See alsoDemurrage Per diem Free time Destination Management
Distribution center DC Destination, warehousing & trucking: A warehouse focused on receiving goods and sending them out quickly to stores, customers or other sites, rather than long-term storage.; See alsoCross-dock Fulfillment Slotting
Door-to-door Also: D2D General: A service that covers the whole journey from the supplier’s premises to the buyer’s door, including origin pickup, main transport, customs and final delivery. A port-to-port service, by contrast, covers only the main sea or air leg.; See alsoMultimodal transport Our services
Drawback Also: Duty drawback US customs & entry: A refund of most of the duties, taxes and fees paid on imported goods when those goods, or goods made from them, are later exported or destroyed.; See alsoForeign-trade zone Duty
Drayage Also: Dray, Cartage Destination, warehousing & trucking: Short-distance trucking of containers, typically between a port or rail ramp and a nearby warehouse. Book drayage before the vessel arrives. Trucker and chassis shortages are a common cause of demurrage.; See alsoChassis Pre-pull Demurrage Transload Destination Management
Drop and pick Also: Drop container, Drop and hook Destination, warehousing & trucking: When the trucker leaves a container at the warehouse to be unloaded later and collects the empty on a separate trip.; See alsoLive unload Detention Chassis
Duty Also: Import duty, Tariff, Customs duty Tariffs & trade compliance: A tax on imported goods, set by the product’s classification and country of origin and paid by the importer of record.; See alsoAd valorem Harmonized Tariff Schedule Tariff stacking Landed cost

E

Electronic bill of lading eBL Shipping documents: A digital bill of lading that can act as a document of title, issued and transferred through an approved platform instead of on paper. Adoption is growing as carriers and laws catch up.; See alsoOriginal bill of lading Electronic data interchange
Electronic data interchange EDI Technology & visibility: A long-established standard for exchanging business documents, such as purchase orders, invoices and shipment status messages, between companies’ systems in fixed formats.; See alsoApplication programming interface Transportation management system OWL Vision
Estimated time of arrival ETA Ocean freight: When a shipment is expected to arrive. Be clear which arrival is meant: at the port, at the rail ramp, or at your warehouse door can be days apart. Port ETA drives your customs, trucking and warehouse planning, so track changes to it closely.; See alsoEstimated time of departure ETA prediction Milestone
Estimated time of departure ETD Ocean freight: When the vessel or flight is expected to leave the origin port or airport. It can move as schedules change.; See alsoEstimated time of arrival Cut-off Milestone
ETA prediction Also: Predictive ETA, Dynamic ETA Technology & visibility: Estimating arrival times from live data such as vessel positions, port congestion and past performance, rather than relying on the carrier’s published schedule alone.; See alsoEstimated time of arrival Exception management OWL Vision
Ex Works EXW Incoterms: The seller makes goods available at its own premises, not loaded and not cleared for export. The buyer handles and pays for everything from there.; See EXW in the Incoterms explorer; See alsoIncoterms Free Carrier
Exception management Also: Exception alerts, Management by exception Technology & visibility: Spotting shipments that are off plan, such as a late cargo ready date, a rolled booking or a customs hold, and flagging them early so someone can act, rather than checking every shipment by hand.; See alsoControl tower Milestone ETA prediction OWL Vision
Express courier Also: Courier, Express parcel, Integrator Air freight: Door-to-door parcel services such as DHL, FedEx and UPS that handle collection, flight, customs and delivery in one service. Best for small, urgent shipments. Above a certain weight, standard air freight through a forwarder is usually cheaper.; See alsoDeferred air freight Volumetric weight Informal entry

F

FDA prior notice US customs & entry: Advance notice that must be sent to the US Food and Drug Administration before food or animal feed arrives in the US, within time windows that depend on the transport mode. The overseas facility that makes, processes or packs the food must also be registered with FDA.; See alsoPartner government agency Reefer container
Federal Maritime Commission FMC Ocean freight: The US agency that regulates ocean shipping in US trades: it licenses intermediaries, receives carrier service contracts, and enforces rules on practices such as demurrage and detention billing. If you think a demurrage or detention invoice is unreasonable, the FMC has a process for challenging it.; See alsoService contract Demurrage Detention
Final mile Also: Last mile, Final-mile delivery Destination, warehousing & trucking: The last leg of delivery to the end customer or store, often the most expensive part of the journey per unit.; See alsoFulfillment Less than truckload Proof of delivery Destination Management
First sale rule Also: First sale for export, First sale valuation US customs & entry: In a chain of sales (factory to middleman to US buyer), the right to declare the lower factory-to-middleman price as the customs value, as long as that sale was a genuine arm’s-length sale for export to the US. It can lower duty on every entry, but it needs strong paperwork from the middleman and factory. Talk to your broker or a customs attorney first.; See alsoCustoms valuation Duty
Floor-loaded cargo Also: Floor loaded, Loose loaded Destination, warehousing & trucking: Cartons stacked directly on the container floor rather than on pallets. It fits more in each container but takes longer to unload. Expect unloading or palletizing charges at the warehouse for floor-loaded containers.; See alsoPallet Load plan Live unload
Foreign-trade zone FTZ US customs & entry: A secure site in the US treated as outside US customs territory for duty purposes. Goods can be stored, assembled or processed there, with duty paid only when they leave for the US market, and none if they are re-exported. FTZ rules have been adjusted alongside recent tariff actions, so check how current tariffs treat zone admissions.; See alsoBonded warehouse Drawback
Formal entry Also: Type 01 entry, Consumption entry, Entry type 01 US customs & entry: The standard customs entry for commercial imports above the informal entry limit, or for goods that always need one. It requires a customs bond and a full entry summary.; See alsoInformal entry Customs bond CBP Form 7501 Liquidation Destination Management
Forty-foot equivalent unit FEU Ocean freight: One 40-foot container, equal to two TEU. Transpacific rates are often quoted per FEU.; See alsoTwenty-foot equivalent unit 40-foot standard container 40-foot high cube
Fourth-party logistics 4PL Also: Lead logistics provider, LLP Destination, warehousing & trucking: A provider that manages a company’s whole supply chain on its behalf, coordinating several 3PLs, carriers and systems rather than mainly running the operations itself.; See alsoThird-party logistics Control tower
Free Alongside Ship FAS Incoterms: The seller clears goods for export and places them beside the buyer’s vessel at the named port of shipment. Mainly used for bulk and heavy cargo, rarely for containers.; See FAS in the Incoterms explorer; See alsoIncoterms Free On Board
Free Carrier FCA Incoterms: The seller clears goods for export and hands them to the buyer’s carrier at a named place, such as its factory or the forwarder’s warehouse. Works for any transport mode.; See FCA in the Incoterms explorer; See alsoIncoterms Free On Board Ex Works
Free On Board FOB Incoterms: The seller clears goods for export and loads them onto the vessel the buyer has booked at the named port of shipment. Risk passes once the goods are on board. FOB is the most common term US importers use with Asian suppliers, though FCA fits containerized cargo better.; See FOB in the Incoterms explorer; See alsoIncoterms Free Carrier Cost and Freight
Free time Ocean freight: The number of days a carrier or terminal lets you keep a container, either at the terminal or out at your premises, before daily charges begin. Free time is negotiable in your contract. Plan pickups and returns against it, especially when you expect customs holds.; See alsoDemurrage Detention Last free day Destination Management
Free trade agreement FTA Tariffs & trade compliance: A trade deal that cuts or removes duties between member countries for goods that meet its rules of origin. The US has relatively few FTAs in Asia, with Singapore and Korea among them. Preference is not automatic: goods must meet the agreement’s rules and you need records to back the claim.; See alsoCertificate of origin Country of origin
Freight all kinds FAK Rates, contracts & insurance: A single rate that applies to most general cargo regardless of the commodity, rather than different rates for different products.; See alsoService contract Contract rate
Freight claim Also: Cargo claim Destination, warehousing & trucking: A formal request to a carrier for compensation for lost, damaged or delayed goods. Strict notice deadlines apply.; See alsoOS&D Carrier liability Cargo insurance
Freight class Also: NMFC, NMFC class Destination, warehousing & trucking: A US classification that rates LTL freight by density, handling, stowability and liability. Lower classes are cheaper; light, bulky or fragile freight gets a higher class. The wrong class on a shipment leads to re-billing. Measure and weigh pallets accurately.; See alsoLess than truckload Pallet
Freight forwarder Also: Forwarder, Logistics provider General: A company that arranges the movement of goods for shippers: booking carriers, preparing documents, coordinating customs and handling each leg of the journey.; See alsoNon-vessel operating common carrier Third-party logistics Customs broker Our services
Freight index Also: SCFI, WCI, FBX, Drewry WCI, Container rate index Rates, contracts & insurance: A published benchmark of container freight rates on major trade lanes, such as the Shanghai Containerized Freight Index (SCFI), Drewry World Container Index (WCI), Freightos Baltic Index (FBX) or NYSHEX’s NYFI. Indices differ in method: some use quoted rates, others actual shipped prices. Know which one you are benchmarking against.; See alsoIndex-linked contract NYSHEX Spot rate
Freight tender Also: Freight RFP, RFQ, Bid Rates, contracts & insurance: A formal process in which a shipper invites carriers or forwarders to bid on its freight for a period, usually by lane and volume. Ask about service, visibility and how exceptions are handled, not only price: the cheapest rate is not always the lowest cost.; See alsoContract rate Service contract Key performance indicator
Fuel surcharge FSC Rates, contracts & insurance: An extra charge that tracks fuel prices, common in air freight and trucking. Trucking fuel surcharges are often tied to a weekly published diesel price.; See alsoBunker adjustment factor Accessorial charges
Fulfillment Also: Order fulfillment, Pick and pack Destination, warehousing & trucking: Receiving, storing, picking, packing and shipping individual orders to customers or stores.; See alsoDistribution center Final mile Warehouse management system
Full container load FCL Ocean freight: A shipment that has a whole container to itself. You pay for the box, not the space inside it, and the container stays sealed from the origin to its destination. FCL usually becomes cheaper per unit than LCL once you have roughly half a container or more of cargo, and it is handled less, so there is less risk of damage.; See alsoLess than container load Twenty-foot equivalent unit Container yard Ocean Freight
Full truckload FTL Also: Truckload, TL Destination, warehousing & trucking: A truck shipment that uses a whole trailer, usually a 53-foot dry van in the US, going direct from pickup to delivery.; See alsoLess than truckload Transload Destination Management

G

Gate in and gate out Also: Gate in, Gate out Ocean freight: The terminal records of a container entering (gate in) or leaving (gate out) through the terminal gate. They are key tracking milestones and start or stop free-time clocks.; See alsoMilestone Container yard Free time
General average GA Rates, contracts & insurance: A maritime rule under which, if a ship’s cargo or equipment is sacrificed or extra costs are incurred to save the voyage (for example after a fire), every cargo owner on board shares the cost, even if their goods were not damaged. Without cargo insurance you may have to post a cash guarantee before your goods are released. Insurance normally covers it.; See alsoCargo insurance Carrier liability
General Certificate of Conformity GCC Tariffs & trade compliance: A certificate the importer issues for general-use (non-children’s) products covered by a CPSC safety rule, stating the product meets that rule based on testing or a reasonable testing program.; See alsoChildren’s Product Certificate Consumer Product Safety Commission CPSC eFiling
General order GO Also: G.O. warehouse US customs & entry: What happens to goods that are not entered with CBP in time: they are moved to a bonded general order warehouse at the importer’s expense and can eventually be sold if unclaimed.; See alsoCustoms entry Bonded warehouse
General rate increase GRI Rates, contracts & insurance: An across-the-board increase in base freight rates announced by a carrier for a trade lane from a certain date. Announced GRIs do not always stick in full. Your contract terms decide whether one applies to you.; See alsoPeak season surcharge Spot rate
Golden Week Also: National Day holiday Origin & purchase orders: China’s week-long National Day holiday in early October, when many factories and offices close. Carriers often cancel sailings around it.; See alsoLunar New Year Blank sailing Factory closure calendar
Guaranteed space Also: Premium service, Priority boarding, Guaranteed loading Rates, contracts & insurance: A paid option where the carrier commits to loading your container on a specific sailing, usually at a premium over the standard rate.; See alsoSpace allocation Rolled cargo Peak season

H

Harbor maintenance fee HMF Also: HMT, Harbor maintenance tax US customs & entry: A fee on cargo arriving by ocean at US ports, charged as a percentage of the goods’ value to fund harbor upkeep. Air shipments do not pay it.; See alsoMerchandise processing fee Duty
Harmonized Tariff Schedule HTS Also: HTSUS, Tariff code, HTS code, HS code, Harmonized System US customs & entry: The US list that classifies every imported product under a 10-digit number and sets its duty rate and any special rules. The first 6 digits follow the international HS code. Classification drives your duty, which extra tariffs apply and which agencies get involved, so it is worth getting right once and documenting.; See alsoBinding ruling Duty Section 301
House air waybill HAWB Air freight: The air waybill issued by a freight forwarder to an individual shipper when its cargo travels as part of a consolidation under a master air waybill.; See alsoMaster air waybill Air consolidation Air Freight
House bill of lading HBL Also: HB/L, Forwarder bill Shipping documents: The bill of lading issued by an NVOCC or forwarder to the actual shipper. The importer usually works with the house bill, while the master bill sits between the forwarder and the carrier.; See alsoMaster bill of lading Non-vessel operating common carrier Bill of lading

I

IEEPA tariffs Also: Reciprocal tariffs, IEEPA Tariffs & trade compliance: Tariffs imposed in 2025 under the International Emergency Economic Powers Act, including country-by-country “reciprocal” tariffs. In February 2026 the US Supreme Court ruled that IEEPA does not authorize tariffs, and refunds of those duties are being handled through CBP. Refund eligibility depends on each entry’s liquidation status. Ask your broker where your entries stand.; See alsoSection 122 Liquidation Protest Post-summary correction
Importer of record IOR US customs & entry: The party legally responsible for an import: making sure goods are correctly classified, valued and marked, and that all duties and fees are paid. Usually the US buyer. You stay responsible even when a customs broker files for you, so keep records and ask questions about anything you are unsure of.; See alsoCustoms broker Reasonable care Customs bond Delivered Duty Paid Destination Management
Importer Security Filing ISF Also: 10+2, ISF 10+2 US customs & entry: A filing of shipment data the importer (or its agent) must send to CBP at least 24 hours before ocean cargo is loaded on a US-bound vessel. The importer supplies 10 data elements, such as seller, buyer, manufacturer, ship-to party and HTS numbers; the carrier supplies 2 more. Late, wrong or missing ISFs can bring penalties and cargo holds, so collect supplier details at booking, not at sailing.; See also24-hour rule Customs bond Harmonized Tariff Schedule Origin Management
In-bond movement Also: In-bond, IT, Immediate transportation, T&E, Transportation and exportation US customs & entry: Moving imported goods within the US, or through it to another country, before they have cleared customs and paid duty. Used for inland clearance and for cargo passing through the US.; See alsoInland point intermodal Bonded warehouse
Incoterms Also: Incoterms 2020, Incoterms rules, Trade terms Incoterms: Standard three-letter trade terms published by the International Chamber of Commerce (ICC) that set out which tasks, costs and risks the seller and buyer each take on when goods are delivered. The current edition is Incoterms® 2020. Incoterms do not cover who owns the goods, payment, or what happens if the contract is breached. State the rule, the named place and the edition, for example “FOB Ho Chi Minh City, Incoterms® 2020”.; See alsoNamed place Free On Board Ex Works Delivered Duty Paid
Index-linked contract Also: Index-linked rate, ILC, Floating rate contract Rates, contracts & insurance: A freight contract where the rate moves with an agreed market index on a set schedule, for example the index plus or minus a fixed amount, in return for firmer space and service commitments. It keeps your rate close to the market both ways, which can mean fewer rolled containers when the market rises. OW Logistics uses NYSHEX’s NYFI index-linked contracts.; See alsoFreight index NYSHEX Contract rate Spot rate Ocean Freight
Informal entry Also: Type 11 entry, Entry type 11 US customs & entry: A simplified customs entry for lower-value shipments, generally up to $2,500, with no bond required and faster processing. Some goods need a formal entry whatever their value. With the de minimis exemption suspended, many small commercial shipments that used to clear duty-free now go through informal entry and pay duties.; See alsoFormal entry De minimis Express courier
Inland point intermodal IPI Also: Intermodal, Rail ramp Ocean freight: An ocean booking that continues by rail from the port to an inland ramp, such as Chicago, Dallas or Memphis, under one bill of lading. It can be the cheapest way to reach an inland warehouse, but rail congestion can add days. Check free time at the ramp too.; See alsoMultimodal transport Drayage Port of discharge Ocean Freight
Institute Cargo Clauses Also: ICC (A), ICC (B), ICC (C), All risks Rates, contracts & insurance: Standard marine cargo insurance terms used worldwide. Clauses (A) give the broadest, near “all risks” cover; (B) and (C) cover only listed events, with (C) the most limited.; See alsoCargo insurance Carriage and Insurance Paid To Cost Insurance and Freight
Intensive exam Also: CES exam, Centralized examination station US customs & entry: The most thorough CBP inspection: the container is trucked to a centralized examination station (CES), fully or partly unloaded, inspected and reloaded. It can take a week or more and the costs fall on the importer.; See alsoCustoms exam Tailgate exam Demurrage
International Air Transport Association IATA Air freight: The airline industry body that sets many air cargo standards, including the Dangerous Goods Regulations, air waybill formats and the three-letter airport codes.; See alsoDangerous goods Air waybill
ISPM 15 Also: Wood packaging rules, Heat-treated pallets Tariffs & trade compliance: The international standard for wooden pallets, crates and dunnage: the wood must be heat-treated or fumigated and stamped with an approved mark. Non-compliant wood packaging is refused entry to the US. Non-compliant packaging usually means the whole container is re-exported at your cost, so check pallet stamps at origin.; See alsoPallet Lacey Act

K

Key performance indicator KPI Technology & visibility: A measure used to track how well something is performing, such as on-time delivery, transit time, cost per unit or how often bookings are rolled.; See alsoOn-time in full Dashboard OWL Vision
Known shipper Also: Known consignor, Regulated agent Air freight: A shipper whose security procedures have been vetted under an aviation security program, so its cargo can be carried, including on passenger aircraft, without extra screening. In the US the TSA runs the program; other countries run similar schemes.; See alsoAir Cargo Advance Screening Belly cargo

L

Lacey Act Tariffs & trade compliance: A US law that bans trade in illegally harvested plants and wildlife. Importers of many wood and plant-based products, such as furniture, flooring and some paper goods, must file a plant product declaration.; See alsoPartner government agency ISPM 15
Landed cost Also: Total landed cost Technology & visibility: The full cost of getting a product to your warehouse: purchase price plus freight, insurance, duties, taxes, customs fees, handling and inland delivery, usually expressed per unit. Landed cost is how you compare suppliers, countries and routes fairly, especially when duties change.; See alsoDuty All-in rate Accessorial charges Tariff stacking OWL Vision
Last free day LFD Ocean freight: The final day you can pick up a container from the terminal (or return the empty) before demurrage or detention charges start.; See alsoFree time Demurrage Pre-pull
Lead time Origin & purchase orders: The total time from placing an order to having goods available to sell: production, origin handling, transit, customs and delivery.; See alsoCargo ready date Estimated time of arrival Landed cost
Less than container load LCL Ocean freight: A shipment too small to fill a container, so it shares one with other shippers’ cargo. It is priced by volume or weight, whichever is greater. LCL suits smaller or trial orders. Expect a few extra days at each end while the container is packed and unpacked at a container freight station.; See alsoFull container load Container freight station Weight or measure Consolidation Ocean Freight
Less than truckload LTL Destination, warehousing & trucking: A truck shipment that shares trailer space with other shippers’ freight, typically one to several pallets, priced by weight, distance and freight class.; See alsoFull truckload Freight class Pallet Destination Management
Letter of credit L/C Also: LC, Documentary credit Shipping documents: A bank’s promise to pay the seller once it presents documents that match the credit’s terms exactly, such as the invoice, packing list and original bill of lading. It protects both sides but adds cost and paperwork. Small document discrepancies can delay payment, so make sure the L/C terms match what your forwarder can actually issue.; See alsoOriginal bill of lading Pro forma invoice Commercial invoice
Liquidation US customs & entry: CBP’s final calculation of the duties owed on an entry, usually about 10 to 11 months after entry. After liquidation, changes need a formal protest.; See alsoPost-summary correction Protest CBP Form 7501
Live unload Also: Live unload/load Destination, warehousing & trucking: When the truck driver waits while the container is unloaded at the warehouse, then leaves with the empty. Truckers allow limited free waiting time, then bill by the hour.; See alsoDrop and pick Delivery appointment Accessorial charges
Load plan Also: Stowage plan, Container load plan Origin & purchase orders: A plan for how cartons or pallets will fit in a container, used to maximize space, keep weight balanced and stay within limits.; See alsoCubic meter 40-foot high cube Container loading supervision Container load calculator
Lunar New Year Also: Chinese New Year, CNY, Spring Festival, Tết Origin & purchase orders: The new year holiday across China, Vietnam and other parts of Asia, when many factories close for one to several weeks and workers travel home. Shipping demand spikes before it, production restarts slowly after it, and some workers do not return. Place orders and bookings early.; See alsoGolden Week Peak season Cargo ready date Factory closure calendar

M

Master air waybill MAWB Air freight: The air waybill issued by the airline to the forwarder for a consolidated shipment, covering all the smaller shipments grouped together.; See alsoHouse air waybill Air consolidation Air waybill Air Freight
Master bill of lading MBL Also: MB/L, Ocean bill, Carrier bill Shipping documents: The bill of lading issued by the ocean carrier, usually to the NVOCC or forwarder that booked the space.; See alsoHouse bill of lading Vessel operating common carrier Bill of lading
Merchandise processing fee MPF US customs & entry: A CBP user fee charged on most imports to cover the cost of processing entries. On formal entries it is a percentage of value, with a minimum and maximum per entry; informal entries pay a flat fee. MPF amounts are adjusted every fiscal year, so check the current figures.; See alsoHarbor maintenance fee Formal entry Duty
Milestone Also: Event, Tracking event Technology & visibility: A recorded event in a shipment’s journey, such as cargo received, loaded on vessel, departed, arrived, customs released or delivered.; See alsoContainer tracking Exception management Key performance indicator OWL Vision
Minimum quantity commitment MQC Rates, contracts & insurance: The minimum volume a shipper agrees to ship under a service contract during its term, usually counted in containers or TEU. Be realistic: carriers watch whether MQCs are met when they allocate space and set next year’s rates.; See alsoService contract Space allocation Twenty-foot equivalent unit
Multimodal transport Also: Intermodal transport, Combined transport General: Moving goods by more than one mode, such as ship, rail and truck, under a single contract or bill of lading.; See alsoInland point intermodal Sea-air Door-to-door

N

Named account Rates, contracts & insurance: A carrier contract arrangement that gives an NVOCC a rate and space specifically for a named importer’s cargo, rather than for its general freight. Named accounts can give an importer some of the priority of a direct carrier contract while keeping the forwarder’s service.; See alsoService contract Non-vessel operating common carrier Beneficial cargo owner
Named place Also: Named port, Delivery point Incoterms: The location stated after an Incoterm, such as “FCA Shenzhen” or “DAP Atlanta”, that fixes where the seller delivers or how far it pays carriage. Be as precise as possible: a full address is best.; See alsoIncoterms
Non-vessel operating common carrier NVOCC Also: NVO Ocean freight: A company that sells ocean transport and issues its own bills of lading but does not operate ships. It buys space from carriers and resells it to shippers. In the US, NVOCCs and ocean freight forwarders, together called ocean transportation intermediaries (OTIs), must be licensed or registered with the Federal Maritime Commission and hold a bond.; See alsoVessel operating common carrier House bill of lading Freight forwarder
Notify party General: The party named on the bill of lading to be told when cargo arrives, often the importer’s customs broker or forwarder.; See alsoConsignee Arrival notice
NYSHEX Also: New York Shipping Exchange, NYFI, NYSHEX Freight Indices Rates, contracts & insurance: A platform for ocean freight contracts that both sides commit to. It also publishes the NYSHEX Freight Indices (NYFI), built from invoiced, shipped transactions, which can be used to price index-linked contracts.; See alsoIndex-linked contract Freight index

O

On-time in full OTIF Technology & visibility: A KPI measuring the share of orders delivered on the agreed date and in the full quantity ordered. Many US retailers fine suppliers who miss OTIF targets.; See alsoKey performance indicator Delivery appointment
Origin management services OMS Origin & purchase orders: A logistics provider’s on-the-ground work at origin for the buyer: managing POs and suppliers, booking, consolidating, checking documents and reporting status before goods ship.; See alsoPO management Vendor management Control tower Buyer's consolidation Origin Management
Original bill of lading OBL Also: Negotiable bill of lading, To order bill of lading Shipping documents: A bill of lading issued as a paper set of originals that acts as a document of title: one original must be surrendered at destination before the cargo is released. Originals are common when payment is by letter of credit. Lost or late originals can strand cargo at port, so many importers prefer telex release or a sea waybill when payment terms allow.; See alsoTelex release Sea waybill Letter of credit Bill of lading
OS&D Also: Over, short and damaged Destination, warehousing & trucking: A report of discrepancies found when goods are received: too many (over), too few (short) or damaged. Note exceptions on the delivery receipt at the time, with photos. A clean signature makes claims much harder.; See alsoProof of delivery Freight claim

P

Packing list Also: PL Shipping documents: A list of what is in each carton or pallet: items, quantities, weights and dimensions. Customs, forwarders and your warehouse all use it to check the shipment.; See alsoCommercial invoice Shipping marks
Pallet Also: Skid, Palletized Destination, warehousing & trucking: A flat platform, usually wood or plastic, that cartons are stacked and wrapped on so they can be moved by forklift. The standard US pallet is 48 × 40 inches. Palletized cargo unloads faster but uses more container space than floor-loaded cartons. Wooden pallets must meet ISPM 15.; See alsoFloor-loaded cargo ISPM 15 Less than truckload
Partner government agency PGA Also: Other government agency, OGA US customs & entry: A US agency other than CBP with rules on certain imports, such as FDA (food, drugs, cosmetics, medical devices), USDA, EPA, CPSC, FCC and Fish and Wildlife. Their data is filed alongside the customs entry. A PGA hold can stop a container even after customs has cleared it, so know which agencies cover your products.; See alsoFDA prior notice Consumer Product Safety Commission Lacey Act Customs hold
Peak season General: The busiest shipping period on the transpacific, usually July to October as importers stock up for back-to-school and the holidays. Rates and the risk of rolled cargo rise.; See alsoPeak season surcharge Rolled cargo Transpacific eastbound Lunar New Year
Peak season surcharge PSS Rates, contracts & insurance: An extra charge carriers add during periods of high demand, typically late summer and autumn ahead of the holiday season.; See alsoPeak season General rate increase
Per diem Ocean freight: A daily charge for using carrier equipment outside the terminal. In the US it is often used to mean the same as detention, though some carriers bill it separately.; See alsoDetention Demurrage Chassis
PO management Also: Purchase order management, Order management Origin & purchase orders: Tracking and managing purchase orders at origin: confirming quantities and dates with suppliers, following production, flagging delays and planning bookings around them. Good PO management means you hear about a late order weeks before it becomes a missed sailing.; See alsoPurchase order Vendor management Control tower Cargo ready date Origin Management
Port of discharge POD Ocean freight: The port where cargo comes off the vessel at the end of the ocean leg, for example Los Angeles, Savannah or New York. Not to be confused with proof of delivery, which shares the abbreviation.; See alsoPort of loading Proof of delivery
Port of loading POL Ocean freight: The port where cargo is loaded onto the vessel for the ocean leg, for example Yantian, Ho Chi Minh City or Laem Chabang.; See alsoPort of discharge Transshipment
Post-summary correction PSC US customs & entry: An electronic correction to an entry summary filed before it liquidates, for example to fix a classification, value or origin error and pay or reclaim the difference.; See alsoLiquidation Protest Prior disclosure
Power of attorney POA US customs & entry: The authorization an importer signs so a customs broker can act for it with CBP. Brokers cannot file your entries without one.; See alsoCustoms broker
Pre-pull Also: Prepull Destination, warehousing & trucking: Picking up a container from the terminal before the warehouse is ready to receive it and storing it on a chassis in the trucker’s yard, to beat the last free day.; See alsoLast free day Demurrage Drayage
Prepaid and collect Also: Freight prepaid, Freight collect Rates, contracts & insurance: “Prepaid” means freight charges are paid at origin, usually by the shipper; “collect” means they are paid at destination, usually by the consignee.; See alsoIncoterms Arrival notice
Prior disclosure US customs & entry: Voluntarily telling CBP about errors or violations in past imports before CBP opens an investigation. It can substantially reduce penalties.; See alsoReasonable care Post-summary correction
Pro forma invoice Shipping documents: A preliminary invoice sent before goods ship, setting out the expected price and terms. It is often used to arrange payment or a letter of credit, and is replaced by the final commercial invoice.; See alsoCommercial invoice Letter of credit
Proof of delivery POD Destination, warehousing & trucking: A signed receipt or electronic record confirming that goods were delivered, when and to whom. Not to be confused with port of discharge.; See alsoFinal mile OS&D Port of discharge
Proposition 65 Also: Prop 65 Tariffs & trade compliance: A California law requiring a clear warning on products that can expose people to chemicals on the state’s list of those known to cause cancer or reproductive harm. It applies to products sold into California, which in practice means most national brands. Test materials and plan labeling before production.; See alsoQuality control inspection
Protest Also: CBP Form 19 US customs & entry: A formal challenge to a CBP decision, such as a liquidation, classification or exclusion, filed within 180 days of the decision.; See alsoLiquidation Post-summary correction
Purchase order PO Origin & purchase orders: The buyer’s formal order to a supplier, listing products, quantities, prices, delivery dates and terms. In logistics it is the reference used to track goods from factory to warehouse.; See alsoPO management Stock keeping unit Cargo ready date Origin Management

Q

Quality control inspection QC Also: Pre-shipment inspection, PSI, Final random inspection Origin & purchase orders: A check of goods at the factory, often by an independent inspector, before they ship, to confirm quantity, workmanship, packing and labeling against the order. Fixing problems at origin is far cheaper than finding them in a US warehouse.; See alsoVendor management Container loading supervision Origin Management

R

Reasonable care US customs & entry: The legal standard US importers must meet when declaring goods: taking the steps a careful importer would take to classify, value and describe them correctly. It comes from the 1993 Customs Modernization Act. Practical reasonable care means written procedures, good product records, and asking a broker or attorney when in doubt.; See alsoImporter of record Prior disclosure Binding ruling
Reefer container Also: Reefer, Refrigerated container Ocean freight: A refrigerated container with its own cooling unit, plugged into power on the ship and at the terminal. Used for food, pharmaceuticals and other temperature-sensitive goods. Reefer space is limited and priced higher than dry boxes, so book early in peak periods.; See alsoFull container load FDA prior notice
Rolled cargo Also: Rollover, Rolled container Ocean freight: Cargo that was booked on a vessel but left behind and moved to a later sailing, often because the ship was overbooked or a cut-off was missed. Rolling is more common in peak season and for cargo on low or spot rates. Strong carrier commitments and early bookings reduce the risk.; See alsoBlank sailing Cut-off Space allocation Peak season
Routing guide Also: Vendor routing guide, Shipping manual Origin & purchase orders: The buyer’s rulebook for suppliers: who to book with, how to pack, label and mark cartons, and which documents to send and when.; See alsoVendor management Shipping marks Booking Origin Management

S

Safety data sheet SDS Also: MSDS, Material safety data sheet Shipping documents: A standard document describing a product’s chemical makeup, hazards and safe handling. Forwarders use it to decide whether cargo counts as dangerous goods.; See alsoDangerous goods
Sea waybill SWB Also: Seaway bill, Express release, Express bill of lading Shipping documents: A non-negotiable transport document: no originals are issued and the cargo is released to the named consignee once charges are paid. It is the simplest option when goods are already paid for or sold on open account.; See alsoOriginal bill of lading Telex release Bill of lading
Sea-air Also: Sea/air Air freight: A combined service where cargo goes by ocean to a hub (for example Dubai or Singapore) and then by air to its destination. It is usually faster than ocean and cheaper than air.; See alsoMultimodal transport Deferred air freight Air Freight
Seal number Also: Container seal Ocean freight: The unique number on the tamper-evident bolt seal fitted to a loaded container’s doors. It is recorded on the bill of lading and checked on arrival. A broken or mismatched seal can trigger a customs inspection or a cargo claim, so record it at loading.; See alsoBill of lading Tailgate exam
Section 122 Tariffs & trade compliance: A provision of the Trade Act of 1974 that lets the President impose a temporary across-the-board import surcharge, capped in level and limited to 150 days unless Congress extends it. It was used in early 2026 after the IEEPA ruling. Its use has been challenged in court. Check the current status before costing new orders.; See alsoIEEPA tariffs Tariff stacking
Section 232 Tariffs & trade compliance: Extra US duties imposed on national security grounds under the Trade Expansion Act of 1962. They have covered products such as steel, aluminum, autos and parts, copper and timber, and some items made from them. Rules for derivative products, such as goods made of steel or aluminum, can be detailed. Check current scope against your HTS codes.; See alsoSection 301 Tariff stacking
Section 301 Tariffs & trade compliance: Extra US duties imposed by the US Trade Representative under the Trade Act of 1974 in response to unfair trade practices. Best known for the tariffs on many Chinese-origin goods in place since 2018. Coverage, rates and exclusions change. Check current lists against your HTS codes rather than relying on last year’s numbers.; See alsoTariff stacking Country of origin Section 232
Service contract SC Rates, contracts & insurance: A confidential contract between an ocean carrier and a shipper or NVOCC setting rates, volumes and service terms for a period. In US trades it must be filed with the Federal Maritime Commission.; See alsoContract rate Minimum quantity commitment Named account Federal Maritime Commission
Shipper Also: Consignor General: The party sending the goods, often the overseas supplier. In US industry use, “shipper” can also mean the company that owns the freight, including the importer.; See alsoConsignee Beneficial cargo owner
Shipping marks Also: Carton marks, Case marks Origin & purchase orders: The labels and markings on each carton, such as PO number, carton number, destination and handling symbols, that let everyone identify and route it.; See alsoRouting guide Packing list Country of origin marking
Single transaction bond STB Also: Single entry bond US customs & entry: A customs bond that covers one entry only. It suits occasional importers; regular importers usually find a continuous bond cheaper and simpler.; See alsoCustoms bond Continuous bond
SKU-level visibility Also: PO-level visibility, Item-level tracking, PO tracking Technology & visibility: Tracking not only the container but the purchase orders and individual products inside it, so you know when specific SKUs will be available to sell. Your team asks “where is my product?”, not “where is my container?” SKU-level data answers that directly.; See alsoStock keeping unit Purchase order Supply chain visibility OWL Vision
Slotting Destination, warehousing & trucking: Deciding where each SKU sits in a warehouse, with fast movers placed close to packing, to cut travel time and picking errors.; See alsoStock keeping unit Warehouse management system Distribution center
Space allocation Also: Allocation Rates, contracts & insurance: The share of space on each sailing a carrier reserves for a contract customer or forwarder. In tight markets, allocation decides whose cargo gets on board.; See alsoMinimum quantity commitment Rolled cargo Guaranteed space
Spot rate Also: Spot market, Spot Rates, contracts & insurance: A freight price quoted for one shipment at current market levels, usually valid for a short period. Spot can beat contract rates in a soft market, but space is not guaranteed and cargo on spot is more likely to be rolled when ships are full.; See alsoContract rate Index-linked contract Rolled cargo Ocean Freight
Stock keeping unit SKU Origin & purchase orders: A unique code for each distinct product variant you stock, such as a particular size and color.; See alsoPurchase order SKU-level visibility Slotting OWL Vision
Substantial transformation US customs & entry: The test CBP uses to decide origin when a product is made in more than one country: origin goes to the country where processing turned it into a new article with a different name, character or use. Simple assembly or repacking usually does not qualify. Ask for a binding ruling before you restructure a supply chain around origin.; See alsoCountry of origin Binding ruling
Supply chain visibility Also: Visibility, End-to-end visibility, Shipment visibility Technology & visibility: Being able to see where your orders and goods are, and what is happening to them, at every stage from supplier to final delivery, in one place and close to real time.; See alsoMilestone SKU-level visibility Container tracking Control tower OWL Vision

T

Tailgate exam US customs & entry: A CBP inspection where officers break the seal, open the container doors and look at, or pull out, some of the cargo at the terminal.; See alsoCustoms exam VACIS exam Intensive exam Seal number
Tariff stacking Tariffs & trade compliance: When several duties apply to the same product at once, such as the normal duty plus Section 301 or Section 232 duties. Some programs add together; others exclude each other. Your broker can show how each layer applies to each HTS line. Check the current rules, as stacking orders change.; See alsoDuty Section 301 Section 232 Landed cost
Telex release Also: Surrendered bill of lading, Telex Shipping documents: When the shipper hands the original bills of lading back to the carrier or forwarder at origin, which then tells its destination office to release the cargo without paper originals.; See alsoOriginal bill of lading Sea waybill Delivery order
Terminal handling charge THC Also: OTHC, DTHC, Origin terminal handling, Destination terminal handling Rates, contracts & insurance: The fee for handling a container at the port terminal, such as moving it between the yard and the ship. Origin THC is charged at the loading port and destination THC at the arrival port. Who pays each THC depends on your Incoterm and contract, so check both before comparing quotes.; See alsoAll-in rate Incoterms Accessorial charges
Third-party logistics 3PL Destination, warehousing & trucking: A company that runs logistics services for other businesses, such as transport, freight forwarding, customs, warehousing and fulfillment.; See alsoFourth-party logistics Freight forwarder Fulfillment Our services
Transload Also: Transloading Destination, warehousing & trucking: Moving cargo from an ocean container into a domestic truck or 53-foot trailer, usually near the port, before it travels inland. Three 40-foot containers fit into roughly two 53-foot trailers, so transloading can cut inland freight cost and frees the ocean container early.; See alsoCross-dock Deconsolidation Drayage Full truckload Destination Management
Transpacific eastbound TPEB Ocean freight: The ocean trade from Asia to North America, the main route for US importers sourcing from China and Southeast Asia.; See alsoPeak season Ocean Freight
Transportation management system TMS Technology & visibility: Software used to plan, book, track and pay for freight movements.; See alsoWarehouse management system Electronic data interchange
Transshipment Also: T/S Ocean freight: Moving cargo from one vessel to another at an intermediate port, such as Singapore or Busan, on the way to its destination. Many routes from smaller ports rely on it. Each transshipment adds time and a chance of delay. Separately, “illegal transshipment” means routing goods through a third country to disguise their true origin, which US Customs actively targets.; See alsoCountry of origin Port of loading
Twenty-foot equivalent unit TEU Ocean freight: The standard unit for counting containers: one 20-foot container is one TEU. A 40-foot container counts as two. Carrier and port capacity, contract volumes and vessel sizes are all quoted in TEU.; See alsoForty-foot equivalent unit 20-foot standard container

U

Unit load device ULD Also: Air pallet, Air container Air freight: A pallet or container shaped to fit an aircraft hold. Forwarders build cargo onto ULDs so it can be loaded quickly and securely.; See alsoAir consolidation
Uyghur Forced Labor Prevention Act UFLPA Tariffs & trade compliance: A US law, in force since June 2022, that presumes goods made wholly or partly in China’s Xinjiang region, or by listed entities, were made with forced labor, and bars them from entry unless the importer proves otherwise with clear and convincing evidence. CBP can detain goods and ask for full supply chain tracing back to raw materials, so keep supplier and material records ready, especially for cotton, solar, aluminum and PVC.; See alsoWithhold release order Vendor management Customs hold

V

VACIS exam Also: X-ray exam, NII exam, Non-intrusive inspection US customs & entry: An X-ray or gamma-ray scan of a sealed container using CBP’s Vehicle and Cargo Inspection System. It is the quickest exam; if the image looks fine the container is released, otherwise it may go to a more detailed exam.; See alsoCustoms exam Tailgate exam Intensive exam
Vendor management Also: Supplier management, Vendor compliance Origin & purchase orders: Working with overseas suppliers to make sure orders ship on time, correctly packed, labeled and documented, and in line with the buyer’s rules.; See alsoRouting guide PO management Origin management services Origin Management
Verified gross mass VGM Ocean freight: The confirmed total weight of a packed container, including cargo, packing and the container itself. Under international maritime safety (SOLAS) rules, the shipper must declare it before the container can be loaded on a ship. A missing or late VGM is a common reason containers miss their vessel.; See alsoCut-off Rolled cargo
Vessel operating common carrier VOCC Also: Ocean carrier, Steamship line, Shipping line Ocean freight: A shipping line that owns or operates the vessels, such as Maersk, MSC, CMA CGM or COSCO.; See alsoNon-vessel operating common carrier Carrier alliance Master bill of lading
Volumetric weight Also: Dimensional weight, DIM weight, Volume weight Air freight: A weight calculated from a shipment’s size rather than its mass. For air cargo it is commonly length × width × height in centimeters divided by 6,000, giving kilograms. Express couriers often use a smaller divisor, which makes their volumetric weight higher.; See alsoChargeable weight Express courier Air Freight

W

Warehouse management system WMS Technology & visibility: Software that runs warehouse operations: receiving, putaway, inventory, picking, packing and shipping.; See alsoTransportation management system Slotting Fulfillment
Weight or measure W/M Ocean freight: How LCL freight is charged: by cubic meters or by metric tons, whichever gives the higher figure. One metric ton is treated as one cubic meter.; See alsoCubic meter Less than container load Chargeable weight
Withhold release order WRO Tariffs & trade compliance: A CBP order, under Section 307 of the Tariff Act of 1930, that holds goods from a named company, product or region suspected of being made with forced labor.; See alsoUyghur Forced Labor Prevention Act Vendor management

Incoterms explained

Who pays.
Who’s liable.
Where it changes hands.

Incoterms® 2020 are the eleven trade terms that set what the seller and the buyer each do, pay for and carry the risk of. Pick one to see it step by step: filled steps are the seller’s, outlined steps are the buyer’s, and the red line is where the risk passes to the buyer.

Incoterms® 2020 is still the current ICC edition as of November 2026; ICC has started revising the rules, with Incoterms® 2030 currently planned for publication in late 2029, and contracts that name the 2020 edition remain valid.

Any mode

Sea only

EXW: Ex Works

Any mode of transport

The seller makes the goods available at its own premises; the buyer does everything else, including loading and export clearance.

01 Export packing Seller
02 Loading at origin Buyer The seller has no duty to load. If the seller does load in practice, it does so at the buyer’s risk.
03 Export clearance Buyer
04 Origin terminal Buyer
05 Main carriage Buyer
06 Cargo insurance Buyer Neither side must insure under this rule. The buyer carries the risk in transit, so the buyer should insure.
07 Destination terminal Buyer
08 Import clearance Buyer
09 Duties and taxes Buyer
10 Delivery to door Buyer
11 Unloading at the named place Buyer

Risk passes: Risk passes when the goods are placed at the buyer’s disposal at the seller’s premises, before they are loaded.
When it suits a US importer: Picking up from a supplier near your forwarder’s origin warehouse when your forwarder controls everything from the factory gate.
Watch out for: The buyer is responsible for export clearance in a country where it has no legal presence, which often is not workable in China or Vietnam. FCA is usually the better choice.

FCA: Free Carrier

Any mode of transport

The seller clears the goods for export and hands them to the buyer’s carrier or forwarder at a named place.

01 Export packing Seller
02 Loading at origin Seller
03 Export clearance Seller
04 Origin terminal Either The seller pays to get the goods to the named place; costs after handover, such as origin terminal handling, are the buyer’s. Name the place precisely.
05 Main carriage Buyer
06 Cargo insurance Buyer Neither side must insure under this rule. The buyer carries the risk in transit, so the buyer should insure.
07 Destination terminal Buyer
08 Import clearance Buyer
09 Duties and taxes Buyer
10 Delivery to door Buyer
11 Unloading at the named place Buyer

Risk passes: Risk passes on handover at the named place: once loaded onto the buyer’s vehicle if that place is the seller’s premises, or when the goods arrive on the seller’s vehicle ready for unloading if it is somewhere else, such as the forwarder’s warehouse.
When it suits a US importer: Containerized imports where your forwarder takes over at origin, including buyer’s consolidation. It is the rule ICC recommends for container cargo in place of FOB.
Watch out for: If your supplier’s bank needs an on-board bill of lading for a letter of credit, agree in the contract that you will instruct your carrier to issue one; Incoterms® 2020 allows for this.

CPT: Carriage Paid To

Any mode of transport

The seller pays carriage to a named destination, but risk passes to the buyer as soon as the goods are handed to the first carrier.

01 Export packing Seller
02 Loading at origin Seller
03 Export clearance Seller
04 Origin terminal Seller
05 Main carriage Seller
06 Cargo insurance Buyer Neither side must insure under this rule. The buyer carries the risk in transit, so the buyer should insure.
07 Destination terminal Either Buyer’s, unless the seller’s contract of carriage already includes them. Check the quote: destination terminal handling is often billed to the US consignee.
08 Import clearance Buyer
09 Duties and taxes Buyer
10 Delivery to door Either Seller’s if the named destination is your door and the carriage contract runs there; otherwise the buyer arranges the final leg.
11 Unloading at the named place Buyer

Risk passes: Risk passes at origin when the goods are handed to the first carrier, even though the seller is paying the freight to the destination.
When it suits a US importer: Air or multimodal shipments where the supplier gets a good freight rate and you are comfortable insuring the transit yourself.
Watch out for: Risk and cost transfer at different points. You bear transit risk on freight you did not book, so you have little control if the cargo is delayed or damaged.

CIP: Carriage and Insurance Paid To

Any mode of transport

As CPT, plus the seller must buy cargo insurance for the buyer at the broad Institute Cargo Clauses (A) level.

01 Export packing Seller
02 Loading at origin Seller
03 Export clearance Seller
04 Origin terminal Seller
05 Main carriage Seller
06 Cargo insurance Seller Required: Institute Cargo Clauses (A) or similar, for at least 110% of the contract value. The parties can agree lower cover.
07 Destination terminal Either Buyer’s, unless the seller’s contract of carriage already includes them.
08 Import clearance Buyer
09 Duties and taxes Buyer
10 Delivery to door Either Seller’s if the named destination is your door and the carriage contract runs there; otherwise the buyer arranges the final leg.
11 Unloading at the named place Buyer

Risk passes: Risk passes at origin when the goods are handed to the first carrier; the seller’s insurance protects the buyer from there.
When it suits a US importer: Higher-value goods, often by air, where the seller arranges freight and you want broad insurance included.
Watch out for: Claims run through the seller’s insurer, which may be overseas. Get a copy of the policy or certificate before the goods ship.

DAP: Delivered at Place

Any mode of transport

The seller delivers the goods to the named destination, ready for unloading; the buyer unloads, clears import customs and pays duties.

01 Export packing Seller
02 Loading at origin Seller
03 Export clearance Seller
04 Origin terminal Seller
05 Main carriage Seller
06 Cargo insurance Seller No insurance obligation, but the seller carries the risk until delivery, so the seller normally insures.
07 Destination terminal Seller
08 Import clearance Buyer
09 Duties and taxes Buyer
10 Delivery to door Seller Assumes the named place is your premises. If it is a port or terminal, the buyer handles the final leg.
11 Unloading at the named place Buyer

Risk passes: Risk passes when the goods arrive at the named destination on the seller’s transport, ready for unloading.
When it suits a US importer: Suppliers who manage freight well and quote a delivered price, while you keep control of customs as importer of record.
Watch out for: Customs must clear the goods before the seller’s truck can deliver. If your import clearance is late, demurrage builds up and the parties argue over who pays. Agree the timing up front.

DPU: Delivered at Place Unloaded

Any mode of transport

The seller delivers the goods and unloads them at the named destination; the buyer clears import customs and pays duties. Replaced DAT in the 2020 edition.

01 Export packing Seller
02 Loading at origin Seller
03 Export clearance Seller
04 Origin terminal Seller
05 Main carriage Seller
06 Cargo insurance Seller No insurance obligation, but the seller carries the risk until delivery, so the seller normally insures.
07 Destination terminal Seller
08 Import clearance Buyer
09 Duties and taxes Buyer
10 Delivery to door Seller Assumes the named place is your premises. If it is a terminal, the buyer handles the final leg.
11 Unloading at the named place Seller

Risk passes: Risk passes once the goods have been unloaded at the named destination.
When it suits a US importer: Deliveries where the seller is set up to unload at the destination, such as a terminal or project site.
Watch out for: It is the only rule where the seller must unload. Make sure the seller can actually unload at your named place, and as with DAP, your customs clearance must be ready on time.

DDP: Delivered Duty Paid

Any mode of transport

The seller delivers to the named destination, cleared for import with duties and taxes paid; the buyer only unloads.

01 Export packing Seller
02 Loading at origin Seller
03 Export clearance Seller
04 Origin terminal Seller
05 Main carriage Seller
06 Cargo insurance Seller No insurance obligation, but the seller carries the risk until delivery, so the seller normally insures.
07 Destination terminal Seller
08 Import clearance Seller
09 Duties and taxes Seller
10 Delivery to door Seller Assumes the named place is your premises.
11 Unloading at the named place Buyer

Risk passes: Risk passes when the goods arrive at the named destination, cleared for import and ready for unloading.
When it suits a US importer: Small or occasional purchases where you want one all-in delivered price and no customs work.
Watch out for: For US imports the foreign seller must act as importer of record, with its own customs bond and broker. You lose sight of how your goods are classified and valued, and enforcement problems can still reach your products and brand. Many US importers avoid it.

FAS: Free Alongside Ship

Sea and inland waterway only

The seller clears the goods for export and places them alongside the buyer’s vessel at the named port of shipment.

01 Export packing Seller
02 Loading at origin Seller
03 Export clearance Seller
04 Origin terminal Either The seller pays to bring the goods alongside the ship; loading onto the vessel is the buyer’s cost.
05 Main carriage Buyer
06 Cargo insurance Buyer Neither side must insure under this rule. The buyer carries the risk in transit, so the buyer should insure.
07 Destination terminal Buyer
08 Import clearance Buyer
09 Duties and taxes Buyer
10 Delivery to door Buyer
11 Unloading at the named place Buyer

Risk passes: Risk passes when the goods are placed alongside the vessel, for example on the quay, before loading.
When it suits a US importer: Bulk, heavy-lift or breakbulk cargo loaded directly from the quay.
Watch out for: Not suited to containers, which are handed over at a terminal before they reach the ship side. Use FCA instead.

FOB: Free On Board

Sea and inland waterway only

The seller clears the goods for export and loads them on board the vessel the buyer has booked at the named port of shipment.

01 Export packing Seller
02 Loading at origin Seller
03 Export clearance Seller
04 Origin terminal Seller
05 Main carriage Buyer
06 Cargo insurance Buyer Neither side must insure under this rule. The buyer carries the risk in transit, so the buyer should insure.
07 Destination terminal Buyer
08 Import clearance Buyer
09 Duties and taxes Buyer
10 Delivery to door Buyer
11 Unloading at the named place Buyer

Risk passes: Risk passes once the goods are on board the vessel at the port of shipment.
When it suits a US importer: The most common term for US importers buying from Asian factories: the supplier handles origin, and you control the ocean freight, routing and US side.
Watch out for: With containers, the seller hands over at the terminal days before loading but still carries the risk until the goods are on board. Agree in writing which origin charges are in the FOB price.

CFR: Cost and Freight

Sea and inland waterway only

The seller pays ocean freight to the named port of destination, but risk passes to the buyer once the goods are on board at origin.

01 Export packing Seller
02 Loading at origin Seller
03 Export clearance Seller
04 Origin terminal Seller
05 Main carriage Seller
06 Cargo insurance Buyer Neither side must insure under this rule. The buyer carries the risk in transit, so the buyer should insure.
07 Destination terminal Either Buyer’s, unless the seller’s contract of carriage already includes them. Destination terminal handling is often billed to the US consignee.
08 Import clearance Buyer
09 Duties and taxes Buyer
10 Delivery to door Buyer
11 Unloading at the named place Buyer

Risk passes: Risk passes once the goods are on board the vessel at the port of shipment, even though the seller pays freight to the destination port.
When it suits a US importer: Bulk or non-containerized ocean cargo when the supplier has better freight access than you.
Watch out for: You carry the transit risk on a booking you do not control, and low CFR prices are sometimes offset by high destination charges billed to you on arrival.

CIF: Cost Insurance and Freight

Sea and inland waterway only

As CFR, plus the seller must buy minimum cargo insurance (Institute Cargo Clauses C) for the buyer.

01 Export packing Seller
02 Loading at origin Seller
03 Export clearance Seller
04 Origin terminal Seller
05 Main carriage Seller
06 Cargo insurance Seller Required, but only Institute Cargo Clauses (C) or similar, the most limited cover, for at least 110% of the contract value. Consider buying broader cover yourself.
07 Destination terminal Either Buyer’s, unless the seller’s contract of carriage already includes them.
08 Import clearance Buyer
09 Duties and taxes Buyer
10 Delivery to door Buyer
11 Unloading at the named place Buyer

Risk passes: Risk passes once the goods are on board the vessel at the port of shipment; the seller’s insurance covers the buyer from there.
When it suits a US importer: Bulk ocean cargo and letter-of-credit deals where the bank expects the seller to provide insurance.
Watch out for: For containers, CIP is the better fit. The required cover is minimal, and claims run through the seller’s insurer.

Compare all eleven side by side

Who handles each step under each Incoterms rule. S is the seller, B is the buyer; the outlined cell is where risk passes.
Step	EXW	FCA	CPT	CIP	DAP	DPU	DDP	FAS	FOB	CFR	CIF
Export packing	S	S	S	S	S	S	S	S	S	S	S
Loading at origin	B	S	S	S	S	S	S	S	S	S	S
Export clearance	B	S	S	S	S	S	S	S	S	S	S
Origin terminal	B	S/B	S	S	S	S	S	S/B	S	S	S
Main carriage	B	B	S	S	S	S	S	B	B	S	S
Cargo insurance	B	B	B	S	S	S	S	B	B	B	S
Destination terminal	B	B	S/B	S/B	S	S	S	B	B	S/B	S/B
Import clearance	B	B	B	B	B	B	S	B	B	B	B
Duties and taxes	B	B	B	B	B	B	S	B	B	B	B
Delivery to door	B	B	S/B	S/B	S	S	S	B	B	B	B
Unloading at the named place	B	B	B	B	B	S	B	B	B	B	B

Aerial night view of a container ship being loaded at a brightly lit port

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Freight, customs and trade terms, explained.

#Numbers

A

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C

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Who pays. Who’s liable. Where it changes hands.

Rather we handled the jargon?

Numbers

Who pays.
Who’s liable.
Where it changes hands.