Glossary
Abbreviations and terms you will often meet in logistics and foreign trade.
- A.TR
- A movement certificate showing that industrial goods are in free circulation under the EU–Turkey Customs Union.
- AWB (Air Waybill)
- The transport document for air cargo. Unlike a bill of lading, it is not a document of title.
- B/L (Bill of Lading)
- The sea transport document that acknowledges receipt of cargo, evidences the contract of carriage and, in most cases, represents title to the goods.
- BAF (Bunker Adjustment Factor)
- A surcharge carriers apply to reflect fluctuations in fuel prices.
- CBM
- Cubic metre, the volume unit used for LCL sea freight and part-load road freight.
- CIF (Cost, Insurance and Freight)
- A sea freight Incoterm where the seller pays freight and minimum-cover insurance to the destination port, while risk passes to the buyer when goods are loaded at origin.
- CMR
- The consignment note for international road transport, issued under the CMR Convention.
- Chargeable Weight
- In air freight, the greater of actual gross weight and volumetric weight. Volumetric weight is commonly calculated as (L × W × H in cm) / 6000.
- DAP (Delivered at Place)
- An Incoterm where the seller delivers the goods, ready for unloading, at the named destination. Import clearance and duties remain with the buyer.
- DDP (Delivered Duty Paid)
- The Incoterm with maximum obligation for the seller, who bears all costs and risks including import clearance and duties.
- Demurrage
- A charge levied by the carrier when a container stays at the port or terminal beyond the free time.
- Detention
- A charge for keeping a container outside the port, at the consignee’s or shipper’s premises, beyond the free time.
- ETD / ETA
- Estimated time of departure and estimated time of arrival.
- EUR.1
- A movement certificate proving preferential origin under free trade agreements, allowing reduced or zero duty.
- EXW (Ex Works)
- An Incoterm under which the seller delivers by making the goods available at its own premises. The buyer handles loading, carriage and all customs formalities.
- FCL (Full Container Load)
- Sea freight where an entire container is used for a single shipper’s cargo.
- FOB (Free on Board)
- A sea and inland waterway Incoterm. Risk passes to the buyer once the goods are loaded on board at the port of loading; the buyer pays the main freight.
- Freight Forwarder
- A logistics company that arranges carriage on the shipper’s behalf, handling carrier contracts, bookings, documents and customs coordination.
- HS Code
- Harmonized System code used worldwide to classify goods and determine customs duties.
- Incoterms
- Standard trade rules published by the International Chamber of Commerce (ICC) that define where costs, risks and responsibilities pass from seller to buyer. The current edition is Incoterms 2020.
- LCL (Less than Container Load)
- Sea freight where cargo from several shippers is consolidated in one container. Charges are usually based on volume (m³) or weight.
- TEU
- Twenty-foot equivalent unit, the standard measure of container capacity. A 40-foot container counts as 2 TEU.
- THC (Terminal Handling Charge)
- A charge for loading, unloading and stacking containers at the terminal.
- Transit Time
- The estimated time cargo takes to travel from origin to destination.