Here we have compiled the terminology and abbreviations used in the transport industry that you may encounter on a daily basis when dealing with freight transportation. Some of these terms apply to practically all types of freight transport – air, road and sea. Therefore, particular attention should be paid to the nuances and explanations to understand when a specific term applies to the type of freight transportation you are planning.

All-in – “All included” means that the freight transportation price includes all additional costs associated with the transportation of the cargo.

ATA (Actual Time of Arrival) – The actual time of arrival.

ATD (Actual Time of Departure) – The actual time of departure.

AWB (Air Waybill) – An air waybill issued when the cargo is handed over to the airline.

B/L (Bill of Lading) – A bill of lading is a transport contract between the carrier and the cargo owner used for sea freight transportation. It confirms that the specified cargo has been accepted for transportation. In international trade, this document serves several purposes, and the shipper is responsible for completing it correctly. The document must be presented to the consignee at the port. Most often, clients choose to receive the original or a copy of the document as proof of ownership of the specific cargo.

BAF (Bunker Adjustment Factor) – A variable fuel surcharge added to the freight rate, depending on fluctuations in fuel prices on the international market.

B/G (Bonded Goods) – Cargo stored in a customs warehouse that has not yet undergone the customs clearance process.

Bonded Warehouse – A warehouse, customs warehouse or temporary storage warehouse under customs supervision where cargo is stored without the applicable state taxes having yet been paid.

Booking Note – A transport booking request used to reserve the necessary space and equipment. The information provided in the request should not be considered the definitive information to be used for completing the bill of lading. The party submitting the booking request is responsible for the accuracy of the information provided, the readiness of the cargo and the availability of suitable transport for the required shipment.

Bulk Cargo (BLK) – Bulk cargo.

Break Bulk – Transportation of a cargo shipment without using a container.

Breakbulk Vessel – A vessel specifically equipped with the appropriate machinery to independently load and unload unpackaged and bulk cargo.

CAF (Currency Adjustment Factor) – A currency adjustment factor, or variable surcharge added to the basic freight rate, directly dependent on international currency fluctuations and exchange rates. This factor is calculated as a percentage in proportion to the cargo. In some cases, an emergency currency adjustment factor (ECAF) may also apply. This is used when the currency of the originally agreed freight rate experiences a prolonged or rapid decline in value due to economic or other circumstances.

CBM – Cubic metre.

CMR – An international freight document used for road transportation. A CMR consignment note serves as both a transport contract and a document accompanying the goods. Under Section 2330 of the Civil Law, a transport contract obliges the carrier to transport the goods handed over by the shipper from one location to the specified delivery location for the agreed fee and to hand them over to the consignee. Article 5 of the CMR Convention stipulates that the CMR consignment note must be signed by both the shipper and the carrier.

CIF (Cost, Insurance and Freight) – A term applicable to sea and inland waterway transportation. The seller/shipper covers the cargo insurance and transportation costs up to the specified port, while taxes are not covered by the seller and are instead paid by the buyer. The seller/shipper is not responsible for additional expenses that may arise during the loading and dispatch of the goods. Once the cargo has been fully loaded onto the vessel, the risk transfers from the seller to the buyer.

If customs formalities are required, the seller is responsible for export customs formalities, while the buyer is responsible for import customs formalities.

CFR (Cost and Freight) – A term applicable to sea and inland waterway transportation. The seller/shipper covers the transportation costs up to delivery of the cargo to the specified port, before payment of taxes. The seller/shipper is not responsible for additional expenses that may arise during loading and dispatch. Once the cargo has been fully loaded onto the vessel, the risk transfers from the seller to the buyer. If customs formalities are required, the seller is responsible for export customs formalities, while the buyer is responsible for import customs formalities.

CFS (Container Freight Station) – A warehouse where cargo consolidation and the loading/unloading of cargo into and out of containers are organised.

COC (Carrier’s Owned Container) – A container owned by the carrier; the cost of using the container is included in the freight rate.

CNEE (Consignee) – The consignee or the person to whom the cargo is delivered at the specified destination.

1. FT. (Cubic Foot/Feet) – Cubic feet.

CUT-OFF TIME – The deadline for delivering cargo to the terminal and completing the required documentation for the specified sailing.

CY (Container Yard) – A container terminal or location where containers are stored before and after onward transportation. Under transport conditions specified at the time of dispatch or delivery, the freight forwarder assumes responsibility for transporting the container to or from the CY. Transportation costs include all services provided between the origin/destination and the CY, such as freight, loading/unloading and CY storage.

Combi Aircraft – An aircraft capable of carrying both passengers and cargo simultaneously on the main deck.

Consolidation – The consolidation of cargo. To efficiently handle a large volume of small shipments and make the process cost-effective, a transport company collects small shipments from individual shippers, transports them to a designated location and then dispatches all shipments together from that warehouse to the relevant courier or carrier. This avoids sending each small shipment separately. Ultimately, multiple shipments are transported together under one document (HAWB), making cargo tracking easier.

Customs – The customs authority responsible for collecting taxes and supervising import and export cargo transportation.

Customs Clearance – The customs clearance process. Customs clearance includes all necessary procedures required to clear cargo through customs, such as checking the presence of import licences or permits, payment of taxes, presentation of conformity, origin and quality certificates, and verification of other relevant documents. Depending on the relevant authority, the customs clearance process may also involve many other procedures.

Customs Broker – A private individual or company licensed by the relevant state authority to carry out customs clearance and handle the customs clearance of import/export cargo.

DAP (Delivered at Place) – The cargo is delivered to the specified place. This transport term can be used regardless of the mode of transportation or type of transport vehicle. DAP is one of the Incoterms currently used instead of former Incoterms such as DAF, DES and DDU. Under DAP, the seller delivers the cargo to the specified place and covers the transportation costs, except for costs related to the preparation of the import declaration. The seller assumes all risks until the cargo is unloaded. The buyer organises and carries out unloading. If customs formalities are required, the seller is responsible for both export and import customs formalities.

DAT (Delivered at Terminal) – The cargo is delivered to the terminal. DAT was an Incoterm used instead of the former DEQ term. This transport term could be used regardless of the mode of transportation or type of transport vehicle. Under this term, the seller/shipper delivers the cargo to the specified terminal, and the risk transfers to the buyer once the cargo has been delivered to and unloaded at the specified terminal. If customs formalities are required, the seller is responsible for export customs formalities, while the buyer is responsible for import customs formalities.

DC (Dry Container) – A dry container suitable for transporting general cargo.

DDP (Delivered Duty Paid) – Delivery of cargo with duties paid. This is an Incoterm applicable to all types of transport. It stipulates that the seller is responsible for delivering the cargo to the specified destination and paying the applicable duties and taxes. The risk transfers to the buyer when the cargo is made available to the buyer at the specified unloading location. The seller is responsible for both export and import customs formalities.

DDU (Delivered Duty Unpaid) – Delivery of cargo without duties paid. In this case, the seller assumes all risks. The DDU Incoterm has been removed from the list and is no longer used in international delivery arrangements.

Demurrage – Detention/downtime. Time incurred in a port when a vessel is delayed due to loading operations. Normally, a certain number of hours is allocated for vessel loading free of charge. Once the free time limit is exceeded, a penalty is charged for each additional hour. The port owner pays the penalty resulting from the delay.

DES (Delivered Ex Ship) – No longer used.

DEQ (Delivered Ex Quay – Duty Paid) – No longer used.

DOOR TO DOOR – Delivery from door to door. Transport conditions applicable to the dispatch and delivery of cargo, under which the freight forwarder undertakes to organise transportation from/to the shipper’s/consignee’s door or warehouse. The transportation price already includes the full cost of the service. The client or shipper does not need to separately order or organise cargo collection or delivery to/from the door.

Drop-off Charge – A charge for collecting designated containers for return when a different address is specified in the transport bill of lading than the existing address.

Drawback – Refund of import duties or refundable customs duties. A customs duty refund may apply when goods or materials on which import duties have been paid are subsequently exported. The document authorising such a payment may sometimes also be referred to as a customs bond.

Dangerous Goods – Goods classified as dangerous based on their properties and characteristics and which may pose a risk to the surrounding environment. The United Nations has developed hazard criteria according to which dangerous goods are classified. When transporting such cargo, dangerous goods transportation regulations must be followed, as failure to comply may endanger human life and health and cause damage to the environment.

Duty – A tax or customs duty applied to imported shipments by the customs authority of the relevant country. The amount depends on the value of the goods as well as various other factors, such as weight or quantity, which may be subject to a specific duty.

Delivery Instructions – Instructions providing specific information to a domestic carrier for delivering cargo to a port or shipping line. Delivery Instructions should not be confused with a Delivery Order, which is used for import cargo transportation.

EDI (Electronic Data Interchange) – Electronic exchange of information. EDI enables standard business documents to be exchanged electronically between business partners, replacing postal mail, fax and email.

ETA (Estimated Time of Arrival) – The estimated time of a vessel’s arrival at the port.

ETD (Estimated Time of Departure) – The estimated time of a vessel’s departure from the port.

EXW (Ex Works) – A transport Incoterm. This trade term places the greatest responsibility on the buyer, while the seller has minimal obligations. EXW is often used when preparing an initial quotation without including additional costs associated with transporting and delivering the cargo to the customer.

FCL (Full Container Load) – A full container loaded by a single shipper and delivered to a single consignee. The risks associated with loading and unloading the container are therefore assigned to one shipper and one consignee.

Feeder – A vessel, shipping line or service provider that serves ports located away from major transport hubs.

FEU – Equivalent to the capacity of a 40-foot container.

Freight Collect – The freight charges are paid by the consignee.

Freight Prepaid – The freight charges are paid by the shipper.

FR (Flat Rack) – A platform container equipped with front and rear end walls. A flat rack has no side walls or roof. It is suitable for transporting heavy and oversized objects such as machinery, buses, aircraft engines, trucks and other cargo.

FSC (Fuel Surcharge) – A fuel surcharge factor primarily used in the air freight sector.

FTL (Full Truck/Trailer Load) – Organisation of a full truck/trailer shipment. When placing a transport order, the client specifies that the entire truck is required and will be loaded with cargo occupying the full vehicle.

FCA (Free Carrier) – Applicable to all modes of transport. The seller delivers the goods to the carrier or another party nominated by the buyer. When using this transport term, the buyer specifies the carrier, delivery time and place to the seller/shipper when concluding the transport contract. Under FCA, the buyer assumes the risk for the goods once the seller/shipper has handed them over to the designated carrier. If customs formalities are required, the seller is responsible for export customs formalities, while the buyer is responsible for import customs formalities.

FAS (Free Alongside Ship) – A term applicable to sea and inland waterway transportation. The seller/shipper is responsible for delivering the cargo alongside the vessel. The buyer is responsible for selecting the carrier, delivery location and time. Once the cargo has been delivered alongside the vessel, the risk transfers from the seller to the buyer. If customs formalities are required, the seller is responsible for export customs formalities, while the buyer is responsible for import customs formalities.

FOB (Free on Board) – A term applicable to sea and inland waterway transportation. The seller/shipper is responsible for delivering the cargo onto the vessel. The buyer is responsible for selecting the carrier, location, port and time. Once the cargo has been loaded onto the vessel, the risk immediately transfers from the seller to the buyer. If customs formalities are required, the seller is responsible for export customs formalities, while the buyer is responsible for import customs formalities.

FI (Free In) – A sea freight term meaning free of loading charges. The transport conditions at the point of dispatch mean that the freight rate does not include the costs associated with loading the cargo onto the vessel.

FIO (Free In and Out) – A sea freight term. The costs incurred for loading cargo onto and unloading cargo from the vessel are not included in the freight rate.

FO (Free Out) – A sea freight term meaning free of unloading charges. The transport terms at the specified destination mean that the freight rate does not include the costs of unloading cargo from the vessel.

FOR (Free on Rail) – Free on rail/platform. The agreed transportation price does not include the costs of loading or unloading cargo onto/from the platform or railcar, cleaning the railcars or other related services.

FOT (Free on Track) – The purchase price of the cargo includes the costs of loading the cargo onto the transport vehicle. Transportation and other costs are paid by the buyer.

Freight Collect – Freight costs are paid by the consignee.

Freight Prepaid – Freight costs are paid by the shipper.

GP (General Purpose) – A standard container suitable for general cargo.

General Cargo – General cargo that can be counted, i.e. cargo packed in packaging or piece cargo, including boxes, bags, drums, bales, containers and other units.

GRI (General Rate Increase) – An additional surcharge added to the basic freight rate, applied according to the policies of shipping lines. It is generally a one-time increase applicable for a specific period and may also have a seasonal character.

GST (Goods and Services Tax) – A goods and services tax applied to imported cargo, commonly associated with the CIF value. GST is calculated as follows: (purchase price of goods + duties + insurance + transportation costs) × GST.

HC (High Cube) – A container with increased height, approximately one foot higher than a standard container.

Harmonised System (HS) – A system for describing and coding goods used to classify products in international trade. The system was developed in accordance with the rules of the Customs Cooperation Council. On 1 January 1989, the new HS numbers replaced the previous classification in more than 50 countries, including the United States.

In-Bond – Cargo that has not undergone the customs clearance process.

Intermodal – Transportation of cargo using more than one mode of transport, such as aircraft, truck, railway or vessel. For example, cargo transported from Germany to Lithuania may be transported by air, while the route from Lithuania to Latvia may be completed by road.

Incoterms – Incoterms are used in international trade and focus on the seller’s obligations regarding delivery. They precisely define the division of responsibilities between the buyer and seller in relation to the delivery of goods, helping to avoid complications during the delivery process.

Import Certificate – An import certificate is a means by which the destination country exercises legal control over cargo and its origin when the goods are subject to an import procedure.

LCL (Less than Container Load) – Cargo whose volume and weight are less than the capacity of a full container. Cargo from several shippers is loaded into the same container so that the container is filled according to its available volume/weight capacity.

LTL (Less than Truck Load) – Cargo whose volume is smaller than the total capacity of a truck trailer.

LI (Line In) – Line terms for cargo dispatch. These terms mean that the freight forwarder provides the following services, which are included in the agreed freight rate: removing the container from the transport vehicle (truck or railway), placing it in the terminal and loading it onto the vessel.

LO (Line Out) – Line terms for cargo receipt. These terms mean that the freight forwarder provides the following services, which are included in the agreed freight rate: unloading the cargo from the vessel, placing it in the terminal and loading it onto the transport vehicle (truck or railway).

Mother Vessel – A mainline vessel that serves only the largest ports with high cargo volumes.

MT (Metric Ton) – One metric ton = 1,000 kg.

Marine Cargo Insurance – Marine cargo insurance. Insurance covers the risk of loss or damage to cargo. It may cover losses resulting from fire, piracy and other hazards. The three most commonly used types of marine cargo insurance are FPA (Free of Particular Average), W.A. (With Average) and All Risks Coverage.

NVD (No Value Declared) – No shipment value declared.

NVOCC (Non-Vessel Operating Common Carrier) – A carrier that has an agreement with a vessel owner and shipping line for the use of a specified amount of space for its cargo. This space is guaranteed on each sailing, allowing the carrier to rely on its availability. Depending on the terms of the agreement, the carrier may also issue bills of lading itself, which would not otherwise be possible.

OGC – Oversized cargo.

OT (Open Top) – A container with an open top.

POD – This abbreviation can refer to two different terms: Port of Destination and Proof of Delivery. A Proof of Delivery is a delivery confirmation document bearing the consignee’s signature, confirming that the cargo has been delivered. Proof of Delivery is used in courier services and increasingly in air freight delivery processes as well.

Packing List – A cargo dispatch document prepared by the shipper and handed over to the carrier together with the cargo. It contains information such as the number of packages, product details, item numbers, units, quantities, the weight of each unit and other information required according to the shipper’s specifications.

Pro Forma Invoice – An invoice issued by the shipper/supplier before the cargo is dispatched, intended to inform the buyer about the type and quantity of goods planned for shipment. The document contains information about the value of the cargo and important specifications such as weight, dimensions, characteristics, ADR class, UN number and other details. When an importer uses a letter of credit as the payment method, the Pro Forma Invoice is required for submission to the bank.

POL (Port of Loading) – The port where cargo is loaded.

PSI (Port Security Charge – Import) – Port security costs for import cargo.

PSS (Peak Season Surcharge) – A surcharge added to the freight rate, most commonly applied during the summer-autumn period due to a rapid increase in cargo volumes.

RAMP – A specialised device used for transferring cargo from one type of transport to another. Transport conditions at loading/unloading mean that the freight forwarder is responsible for organising transportation to/from the nearest ramp of the shipper/consignee. Transportation costs include the expenses incurred when moving the cargo to/from the ramp, including freight, loading/unloading from the vessel, terminal charges, loading onto the transport vehicle and delivery to/from the nearest ramp of the consignee/shipper.

REPO – The return of an empty container to the nearest carrier’s depot after unloading.

RF (Refrigerated Container) – A refrigerated container.

RO/RO (Roll-on/Roll-off) – A Ro-Ro vessel with a horizontal loading/unloading system.

SER Carrier Security Charge – Cargo security costs during transportation.

Shipper – A natural or legal person who actually or indirectly hands over cargo for shipment. The shipper is also the party that provides cargo transportation instructions and informs the carrier if any additional services or special transport conditions are required.

Shipping Request – Cargo shipping instructions that form the basis for completing the bill of lading.

SOC (Shipper’s Owned Container) – A container owned by the shipper/customer.

Stuffing – Loading cargo into a container.

Shipping Mark – Letters, numbers or other symbols placed on cargo packaging to identify the specific shipment.

Shipping Weight – An indicator showing the gross weight of the cargo, including moisture content, packaging, boxes and containers.

TEU – Equivalent to a 20-foot container.

THC (Terminal Handling Charges) – Terminal cargo handling services. Any terminal services related to cargo handling, including loading/unloading from a vessel, moving cargo, releasing cargo and other related operations.

Transhipment – Changing shipping lines at a transit port to enable delivery to or from ports that are not directly served by the relevant line.

UN Code – A four-digit number used to classify a substance or group of substances in accordance with dangerous goods regulations. The UN number identifies dangerous substances and products, such as explosives, flammable liquids, toxic substances and others. Some dangerous substances have their own UN number, such as acrylamide (UN2074), while other groups of similar products may be assigned a common UN number. For example, flammable liquids that are not otherwise classified may be assigned UN1993. UN numbers range from UN0001 to UN3518, and this classification is approved by the United Nations Committee of Experts on the Transport of Dangerous Goods.

UN numbers do not apply to ordinary cargo that is not dangerous to people or the environment.

Waybill – A transport document. Like a bill of lading, it confirms that cargo has been accepted for transportation by sea. This document must be presented to the consignee at the specified port. The shipper is responsible for completing it correctly. The waybill accompanies the cargo during transportation. Unlike a bill of lading, a waybill is only a transport document and does not provide legal title to the cargo or the right to conduct a sale/purchase transaction involving the cargo, as may be possible with an original bill of lading.

WM – The basis for calculating freight: weight or volume. The applicable basis depends on which measurement – weight or volume – is greater.

WNS (Winter Surcharge) – A surcharge added to the freight rate during the winter period from 1 December to 31 March due to freezing waters in ports, intended to ensure uninterrupted vessel movement during the winter period.

FIOS (Free In/Out) – Loading and unloading costs are paid by the shipper.

FILO (Free In/Liner Out) – Loading costs are paid by the shipper, while unloading costs are paid by the shipping line.

LIFO (Liner In/Free Out) – Loading costs are paid by the shipping line, while unloading costs are paid by the shipper.

LI-Door (Liner In/Door) – Loading costs at the port are paid by the shipping line, while the cargo is delivered to the consignee’s door.

LILO (Liner In/Out) – Loading and unloading costs are paid by the shipping line; full liner terms apply.

BFR – Sea freight.

C.O.C. (Carrier’s Owned Container) – The container is owned by the carrier.

CUC (Chassis Using Charge) – A charge for using a chassis.

DOCS (Documentation) –  A documentation fee.

FCL (Full Container Load) – A full container.

FICY (Free In/Container Yard) – Free of loading charges at the port/to the container yard.

ETD (Estimated Time of Departure) – The estimated time of a vessel’s departure.

ETA (Estimated Time of Arrival) – The estimated time of a vessel’s arrival.

ISPS – A surcharge for cargo security at the port.

LCL (Less Container Loading) – A consolidated cargo container.

POL (Port of Loading) – The port where cargo is loaded.

POD (Port of Delivery) – The port where cargo is received/delivered.

SEA (Seafreight), O/F (Oceanfreight) – Sea freight.

S.O.C. (Shipper’s Owned Container) – The container is owned by the customer.

S.T.C. (Said to Contain) – Indicates what the cargo is declared to contain.

THC (Terminal Handling Charges) – Cargo handling at the port.

Wharfage – Port dues and charges.