A
- Air Waybill (AWB)
- The transport document for air freight — equivalent to a Bill of Lading for sea freight. The AWB serves as a receipt, a contract of carriage, and a customs declaration document. Unlike a Bill of Lading, the AWB is non-negotiable and does not function as a document of title.
- Arrival Notice
- A notification sent by the shipping line or freight forwarder to the consignee informing them that their cargo has arrived at the destination port and is ready for customs clearance and collection.
- Anti-Dumping Duty (ADD)
- An additional customs duty imposed by an importing country on goods that are believed to be priced unfairly low (below market value or production cost) in the exporting country. Applies to specific categories of Chinese goods entering the EU, USA, and other markets.
B
- Bill of Lading (BL / B/L)
- The key document in sea freight. Serves as: (1) a receipt confirming the shipping line has received the cargo; (2) the contract of carriage; (3) a document of title — whoever holds the original BL can claim the cargo. Original BLs must be surrendered at destination to release cargo.
- Bonded Warehouse
- A secure storage facility where imported goods can be stored without paying customs duty or import tax until they are released for domestic consumption or re-exported. Common in Hong Kong and free trade zones.
- Breakbulk
- Cargo that is too large or awkward to fit into standard shipping containers and is shipped as individual pieces (loose cargo) on a vessel. Examples include large machinery, steel structures, and project cargo items.
C
- CBM (Cubic Metre)
- The standard unit of volume measurement used in shipping. Calculated as Length (m) × Width (m) × Height (m). Used for LCL sea freight pricing, warehouse storage rates, and container capacity calculations.
- Certificate of Origin (CO)
- A document certifying the country in which goods were manufactured or produced. Required for customs clearance in many countries to determine applicable duty rates, trade agreement eligibility, or compliance with origin rules.
- CFS (Container Freight Station)
- A facility where LCL (Less than Container Load) cargo from multiple shippers is consolidated into shared containers (stuffing/loading) or deconsolidated from containers (stripping/unloading). LCL shipments are processed at a CFS at both origin and destination.
- Chargeable Weight
- In air freight, the weight used to calculate freight charges — the higher of actual gross weight or volumetric weight. Volumetric weight = (L × W × H in cm) ÷ 6000. If cargo is bulky but light, the volumetric weight will be used for charging.
- CIF (Cost, Insurance and Freight)
- An Incoterm under which the seller is responsible for cost, insurance, and freight to the destination port. Risk transfers from seller to buyer when goods are loaded on the vessel at origin. The buyer is responsible for import customs and delivery from the destination port.
- Consignee
- The party named in the shipping documents as the recipient of the cargo at destination. The consignee is responsible for customs clearance and taking delivery of the goods at the destination.
- Customs Entry / Import Declaration
- The formal document submitted to customs authorities to declare imported goods, their value, origin, and HS classification. Required for all commercial imports. In the USA this is the CBP Entry; in the EU it is the SAD; in the UK it is the CDS declaration.
D
- DDP (Delivered Duty Paid)
- An Incoterm under which the seller is responsible for all costs and risks, including import customs duty and delivery to the named destination address. The seller bears maximum responsibility under DDP — nothing is left for the buyer to arrange.
- Demurrage
- A charge imposed by the shipping line when an importer fails to return an empty container within the free time allowed at destination. Accumulates daily. Also used loosely to refer to charges for cargo that stays at a port terminal beyond the free storage period.
- Door-to-Door
- A freight service where the forwarder handles the entire journey from pickup at the origin address to delivery at the destination address — including export customs, international freight, import customs, and last-mile delivery.
E
- EORI Number
- Economic Operators Registration and Identification number — a unique identifier assigned to businesses importing or exporting goods in the EU or UK. Required to file customs declarations. EU EORI and UK EORI are separate registrations since Brexit.
- EXW (Ex Works)
- An Incoterm where the seller's responsibility ends at their factory or warehouse. The buyer arranges and pays for all transportation, export customs, international freight, import customs, and delivery from the seller's premises. Maximum responsibility for the buyer.
F
- FCL (Full Container Load)
- A sea freight shipment where the entire container is booked exclusively for one shipper's cargo. The container is loaded, sealed, and not opened until destination. More cost-effective than LCL for shipments over 12–15 CBM, and provides faster transit as no CFS consolidation is needed.
- FOB (Free On Board)
- An Incoterm where the seller is responsible for delivering goods on board the vessel at the named origin port. Risk and costs transfer to the buyer once the goods are loaded. The buyer arranges and pays for international freight, insurance, and import clearance.
- Free Time
- The period (measured in days) allowed by the shipping line for a container to be collected from the terminal (import) or returned empty (export) without incurring demurrage or detention charges. Free time periods vary by shipping line and port.
- Freight Forwarder
- A company that organises the international transportation of goods on behalf of importers and exporters. Acts as an intermediary between the shipper and various transportation providers (shipping lines, airlines, trucking companies). Handles bookings, documentation, customs clearance coordination, and cargo tracking.
- FSC (Fuel Surcharge)
- A variable surcharge applied on top of the base freight rate to account for changes in fuel costs. Common in both sea freight (Bunker Adjustment Factor / BAF) and air freight. Rates are published periodically by carriers and fluctuate with fuel prices.
G
- General Average (GA)
- A principle of maritime law where all parties with cargo on a vessel share proportionally in the losses arising from a voluntary sacrifice made to save the vessel and cargo (e.g., cargo jettisoned during an emergency). Cargo insurance typically covers General Average contributions — another reason to insure every shipment.
- GBA (the region)
- The economic region in southern China comprising Hong Kong, Macau, and nine cities in the region (including major hubs, Foshan, Zhuhai, and others). One of the world's most productive manufacturing and export regions, and the primary sourcing area for goods exported via Hong Kong.
H
- HS Code (Harmonized System)
- A standardised international product classification system maintained by the World Customs Organization (WCO). Every traded product is assigned an HS code of at least 6 digits. The HS code determines applicable customs duty rates, import restrictions, and required permits at destination. All countries that are WCO members use the same 6-digit base codes.
- HKIA (Hong Kong International Airport)
- Hong Kong International Airport — the world's #1 cargo airport by annual freight throughput for over 15 consecutive years. Handles 4+ million tonnes of air cargo per year with connections to 100+ countries.
I
- IATA (International Air Transport Association)
- The global trade association for the world's airlines. IATA sets standards for air transport, including air freight documentation (AWB format), dangerous goods regulations (DGR), and cargo agent accreditation. IATA-accredited freight agents can issue AWBs and book cargo directly with member airlines.
- IMDG Code
- International Maritime Dangerous Goods Code — the internationally recognised regulations governing the safe transport of dangerous goods by sea. All shippers of hazardous materials by sea must comply with IMDG requirements for classification, packing, marking, labelling, and documentation.
- Incoterms
- International Commercial Terms — a set of 11 internationally standardised trade terms published by the International Chamber of Commerce (ICC) that define the respective responsibilities of sellers and buyers in international transactions. Current version: Incoterms 2020. Key terms: EXW, FCA, CPT, CIP, DAP, DPU, DDP (any mode); FAS, FOB, CFR, CIF (sea/inland waterway only).
- ISF (Importer Security Filing)
- Also called "10+2" — a US CBP (Customs and Border Protection) requirement for sea freight shipments to the USA. The ISF must be filed at least 24 hours before the vessel departs the origin port. Failure to file results in a USD $5,000 penalty per violation. AGLog Cargo coordinates ISF filing through US customs broker partners for all any origin-to-USA sea freight.
- IOR (Importer of Record)
- The entity legally responsible for the importation of goods into a country — including ensuring compliance with all import laws and regulations, paying applicable duties and taxes, and maintaining import records. In most countries, only a locally registered entity can act as IOR for commercial imports.
L
- LCL (Less than Container Load)
- A sea freight method where multiple shippers share space inside one container. Each shipper pays only for the cubic metres (CBM) their cargo occupies. LCL cargo is consolidated at the origin CFS and deconsolidated at the destination CFS. Suitable for shipments under 12–15 CBM.
- Letter of Credit (LC / L/C)
- A financial instrument issued by a bank guaranteeing payment to a seller provided that the seller presents specified documents (typically including a Bill of Lading, commercial invoice, packing list, and certificate of origin) that comply with the LC terms. Common in international trade to mitigate payment risk between unknown parties.
M
- Manifest
- A document listing all cargo (or passengers) on a vessel or aircraft. The cargo manifest includes shipper/consignee details, description of goods, container/AWB numbers, weight, and volume for all shipments on board. Filed with customs authorities at both origin and destination.
- MFN (Most Favoured Nation)
- The standard tariff rate applied by a WTO member country to imports from other WTO members, absent any preferential trade agreement. China's MFN import duty rates are the baseline rates applied to most goods entering China from countries without a bilateral FTA.
N
- Notify Party
- A party listed on the Bill of Lading who must be notified when the cargo arrives at the destination port. Often a customs broker or freight agent who will handle import clearance on behalf of the consignee.
- NVOCCs (Non-Vessel Operating Common Carrier)
- A freight forwarder or consolidator that issues Bills of Lading and acts as a carrier to shippers, but does not own or operate vessels. NVOCCs contract with actual shipping lines for space. Many freight forwarders, including those operating LCL consolidation services, function as NVOCCs.
O
- OBL (Original Bill of Lading)
- The physical original copy of the Bill of Lading. Required to be surrendered at the destination port to release the cargo. Original BLs are negotiable instruments — they can be endorsed and transferred to allow a third party to take possession of the cargo.
- OOG (Out of Gauge)
- Cargo that exceeds the standard internal dimensions of a shipping container — typically in height, width, or length. OOG cargo requires specialised equipment such as flat rack or open top containers, and may incur additional fees from carriers and terminal operators.
P
- Packing List
- A detailed document accompanying a commercial invoice that lists each individual package/carton in the shipment — including dimensions, weight, contents, and marking. Required by customs authorities and the carrier for sea and air freight.
- Port of Discharge (POD)
- The port where cargo is unloaded from the vessel. Listed on the Bill of Lading as the destination port.
- Port of Loading (POL)
- The port where cargo is loaded onto the vessel. Listed on the Bill of Lading as the origin port.
- PRD (the region)
- The manufacturing heartland of Southern China — encompassing major manufacturing hubs, Zhuhai, and surrounding areas. The is one of the world's most productive export manufacturing regions and the primary origin for goods shipped from South China and Hong Kong.
R
- Reefer Container
- A temperature-controlled shipping container used for perishable cargo (food, flowers, pharmaceuticals, chemicals) that must be maintained within a specific temperature range during transport. Reefers plug into power at the port terminal and on the vessel.
S
- Shipper
- The party who sends or ships cargo — typically the seller or exporter. Named on the Bill of Lading as the party responsible for delivering goods to the carrier.
- Surrender / Telex Release
- When the original Bill of Lading is surrendered at origin (rather than being sent to destination), the shipping line issues a "telex release" (or electronic release) to the destination agent — allowing the consignee to collect cargo without presenting an original BL. Common for trusted long-term trade relationships.
T
- TEU (Twenty-foot Equivalent Unit)
- The standard unit of measurement for container capacity. One 20-foot container = 1 TEU. One 40-foot container = 2 TEUs. Port throughput and vessel capacity are measured in TEUs.
- Transit Time
- The time taken for cargo to travel from origin to destination. Vessel transit time (port-to-port) and door-to-door transit time are different — door-to-door adds pickup at origin and delivery at destination, plus customs clearance at both ends.
V
- Volumetric Weight
- Also called dimensional weight — used in air freight to account for bulky but light cargo. Formula: (Length × Width × Height in cm) ÷ 6000. If the volumetric weight exceeds the actual gross weight, air freight is charged based on volumetric weight.
W
- Waybill
- A non-negotiable transport document (Air Waybill for air freight, Sea Waybill for sea freight). Unlike an original Bill of Lading, a waybill cannot be traded or transferred — delivery is made directly to the named consignee without surrendering a document. Used when the speed of electronic documentation is preferred over the negotiability of original BLs.
- WCA (World Cargo Alliance)
- One of the world's largest freight forwarding networks, connecting independent freight forwarders and logistics companies globally. WCA membership enables forwarders to find trusted local agent partners in destinations worldwide for door-to-door services.