Freight conversations become easier when everyone uses the same definitions. A buyer asking for an 'all-in price' may mean something different from a carrier quoting linehaul, and a customs HS code does not mean the same thing as a US LTL freight class. This glossary explains terms that affect actual shipping decisions.
25 essential logistics terms
- Air waybill (AWB): Air transport document setting out shipment carriage details.
- Bill of lading (BOL): Transport document used in ocean and other carriage arrangements; its functions depend on the form.
- FCL: Full container load: a container shipping arrangement typically used for one shipper’s cargo.
- LCL: Less than container load: cargo consolidated with other shipments.
- FTL: Full truckload: a trucking movement arranged for a dedicated load or vehicle.
- LTL: Less than truckload: freight sharing truck capacity with other shipments.
- POD: Proof of delivery: evidence of the final handoff or receipt.
- CFS: Container freight station: a facility handling consolidated container cargo.
- CY: Container yard: a location where containers are held and handled.
- Drayage: Short-distance container transport associated with ports, rail terminals or nearby facilities.
- Cross-docking: Transferring freight through a facility with limited long-term storage.
- Transloading: Moving goods from one transport equipment type or mode to another.
- Demurrage: Charges tied to container or cargo time at a terminal under applicable terms.
- Detention: Charges commonly associated with holding carrier equipment beyond allowed free time.
- HS code: A Harmonized System goods classification code used in customs.
- CBSA: Canada Border Services Agency.
- CARM: CBSA Assessment and Revenue Management system for commercial customs accounting and revenue.
- BN15: Fifteen-character business and program account identifier used for the importer RM account.
- Incoterms 2020: ICC trade rules allocating certain seller and buyer delivery responsibilities, costs and risk.
- Consignee: The person or business named to receive the goods under a transport arrangement.
- Importer of record: The person identified as importer on a customs accounting declaration.
- Chargeable weight: Transport billing weight, which may account for volume and actual scale weight.
- Reefer: Refrigerated or temperature-controlled freight equipment.
- Freight forwarder: A provider that coordinates transport and related logistics services.
- Customs broker: An authorized professional or business carrying out eligible customs activities for a client.
Five terms that deserve extra attention
Start with Incoterms: they allocate delivery tasks, costs and risk between buyer and seller but do not determine title. Next, distinguish consignee from importer of record; the receiving party and customs-liable entity may differ. Then separate ETD and ETA from a guaranteed delivery promise. Understand chargeable weight in air freight, which may be based on volume rather than scale weight. Finally, distinguish demurrage from detention according to the applicable ocean or terminal tariff.
Use definitions in the actual quotation and booking. If a proposal refers to LCL, confirm its weight/measure basis and destination handling; if it refers to FCL, clarify the equipment and free-time rules. If a warehouse asks for a POD, confirm whether it means proof of delivery rather than a shipping terminal. A short shared vocabulary prevents expensive assumptions across purchasing, freight and accounting teams.
Frequently asked questions
Is a bill of lading the same as a customs declaration?
No. A bill of lading is a transport document; customs declarations satisfy separate government reporting and accounting requirements.
Do terms mean exactly the same thing in every contract?
Not always. Confirm the definitions and tariff or service terms that govern the particular shipment.
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