The freight glossary.

Plain-English definitions for the acronyms and jargon you'll hit when you ship freight. Bookmark it.

A

ACI Advance Commercial Information: Canada's pre-arrival shipment data filing for inbound cargo. Must be submitted before the goods reach Canada.
AMS Automated Manifest System: US Customs' pre-arrival manifest filing system for ocean and air cargo bound for the United States.
AWB Air Waybill: The contract of carriage for air freight. Non-negotiable. Issued by the airline (master AWB) or forwarder (house AWB).

BAF Bunker Adjustment Factor: A surcharge that ocean carriers apply to cover fuel cost fluctuations on top of the base rate.
BOL / B/L Bill of Lading: The legal contract between shipper and carrier. For ocean it doubles as a document of title. Whoever holds the original can claim the cargo.
Bonded warehouse: A warehouse where imported goods can be stored without paying duty until they're released for consumption.

CBM Cubic Metre: The volume unit ocean LCL freight is priced on. 1 CBM = length × width × height in metres.
CBP US Customs and Border Protection: The US federal agency that admits cargo into the United States.
CBSA Canada Border Services Agency: The Canadian federal agency that admits cargo into Canada and collects duty and tax.
CETA Comprehensive Economic and Trade Agreement: The Canada-EU free trade agreement. Most qualifying goods clear duty-free in both directions.
Chargeable weight: The higher of actual weight and volumetric weight. Air freight is priced on it. Calculate it →
CIFFA Canadian International Freight Forwarders Association: The industry association for Canadian freight forwarders. Members operate under standard trading conditions.
Consolidation: Combining multiple LCL or LTL shipments into a single container or trailer for better rates.
C-TPAT Customs-Trade Partnership Against Terrorism: US trusted-trader programme. Members get expedited border processing and reduced inspection rates.
CUSMA / USMCA: The Canada-United States-Mexico Agreement (Canada: CUSMA, US: USMCA). Replaced NAFTA in 2020.

Demurrage: A daily charge from the ocean carrier when a container sits at the port past its free time.
Detention: A daily charge when an empty container isn't returned to the carrier on time, or when a truck is held at a dock past its free dwell.
DG Dangerous Goods: Cargo regulated under IMDG (ocean), IATA DGR (air), or TDG (Canadian road). Requires proper classification, packaging, and documentation.
Drayage: Short-distance trucking, typically port-to-warehouse, to move a container off the dock.
Duty drawback: A refund of duty paid on imported goods that are subsequently re-exported.

EDI Electronic Data Interchange: Standardised electronic messaging between shippers, carriers, and customs systems. Common formats: EDI 204 (tender), 214 (status), 210 (invoice).
ETA / ETD: Estimated Time of Arrival / Departure.

FAST Free and Secure Trade: Trusted-trader programme for Canada-US border crossings. Pre-cleared drivers get dedicated FAST lanes.
FCL Full Container Load: Ocean freight where you book and pay for the entire container.
FDA Prior Notice: Required US Food and Drug Administration filing before food/dietary supplement imports arrive in the US.
FMCSA Federal Motor Carrier Safety Administration: The US federal agency that licenses freight brokers and motor carriers.
FTL Full Truckload: Trucking where you book and pay for the entire trailer. Typically over 12 pallets or 10,000 kg.
Forwarder: The party that organises the shipment on behalf of the shipper. Books carrier space, prepares documents, coordinates customs. Setara is one.

GRI General Rate Increase: An across-the-board increase in ocean freight rates announced by carriers, typically with two-to-four weeks' notice.

HAWB House Air Waybill: The AWB issued by the freight forwarder to the shipper. Separate from the master AWB issued by the airline.
HBL House Bill of Lading: The BOL issued by the freight forwarder to the shipper, separate from the master BOL issued by the ocean carrier.
HS code Harmonized System: The 6-to-10 digit international classification code that determines duty rate and import controls for every product.

IMDG: International Maritime Dangerous Goods code. The rules for shipping hazardous cargo by ocean.
Incoterms: International Chamber of Commerce trade terms that define who pays for what and who carries risk at each step. Picker →
ISF Importer Security Filing (10+2): US security filing required at least 24 hours before an ocean container loads onto a US-bound vessel.

LCL Less than Container Load: Ocean freight that shares a container with other shippers. Priced per cubic metre.
LTL Less than Truckload: Trucking that shares a trailer with other shippers. Priced per pallet, weight, and class.

MAWB Master Air Waybill: The AWB issued by the airline to the freight forwarder. Pairs with HAWBs for the individual shippers in the consolidation.
MBL Master Bill of Lading: The BOL issued by the ocean carrier to the forwarder.
MC number: Motor Carrier authority number. Required for US for-hire interstate carriers.

NVOCC Non-Vessel Operating Common Carrier: A forwarder that issues its own ocean BOLs without owning the vessel.

OGD Other Government Department: Any non-customs regulator whose approval is required for entry. CFIA, Health Canada, FDA, USDA, etc.
OOG Out of Gauge: Cargo that exceeds standard container dimensions. Moved on flat-rack, open-top, or as breakbulk.

PAPS / PARS: Pre-Arrival Processing System. Barcoded shipment numbers used to pre-clear US-bound (PAPS) and Canada-bound (PARS) truck freight.
PIP Partners in Protection: Canada's trusted-trader programme, the equivalent of US C-TPAT.
POD Proof of Delivery: The signed receipt confirming the consignee received the cargo. Triggers payment in most contracts.
PRO number: The LTL carrier's internal tracking number for a shipment.

Reefer: A temperature-controlled container or trailer for chilled/frozen cargo.
RFQ Request for Quote: A formal quote request. Typically annual, route-by-route, for procurement contracts.

SCAC Standard Carrier Alpha Code: The 2-to-4 letter code identifying a motor carrier on documents and EDI messages.
Section 321: US de minimis rule. Imports valued ≤ USD 800 per addressee per day enter duty- and tax-free.
SmartWay: US EPA programme certifying carriers and forwarders that operate on fuel-efficient practices.

TEU Twenty-foot Equivalent Unit: The unit ocean container volume is measured in. A 20' container is 1 TEU; a 40' container is 2 TEU.
Tier-1 / Tier-2: Automotive supplier tiers. Tier-1 supplies the OEM directly; tier-2 supplies tier-1.
Transit time: The total time cargo spends moving from origin to destination, exclusive of customs and dwell.

Volumetric weight: Cargo weight calculated from dimensions, used for air freight pricing. Standard formula: (L × W × H in cm) ÷ 6000 = kg.

WMS Warehouse Management System: Software that runs warehouse inventory, picking, and shipping operations.

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