Do shipping terms feel like another language? Let’s decode them properly.
Shipping — whether by sea, air, rail or road — runs on terminology that can feel like code only insiders understand. And unfortunately, misunderstanding even a single term can cause extra costs, delays or legal problems.
This Shipping Jargon Glossary is designed to:
- Help importers and exporters avoid costly mistakes
- Give e-commerce businesses confidence with cross-border shipping
- Provide real-world examples so terms stick
- Keep everything up to date for 2026 logistics
By the time you finish, you’ll understand logistics talk as well as your freight forwarder does.
Essential Terms You’ll See Every Time
| Term | Meaning & Why It Matters |
| B/L (Bill of Lading) | The most critical shipping document — acts as receipt, carriage contract & proof of title. Wrong info = delays. |
| Freight Forwarder | Your logistics coordinator — handles shipping, paperwork, clearances, carrier bookings. |
| Incoterms | Defines cost & risk handover between buyer/seller during shipping. Must be in every sales contract. |
| Customs Broker | Specialist who ensures your products legally enter the destination country. Prevents clearance delays. |
| TEU | A 20ft container unit. Used for freight capacity planning. |
| Demurrage | Port fee for keeping container too long. A top cause of avoidable shipping costs. |
| Carrier | Company physically transporting goods: shipping lines, airlines, haulage firms. |
| Port of Discharge | Final off-load port. Impacts customs, duties and delivery responsibility. |
| Cargo Manifest | Vessel breakdown of all goods onboard used by customs & port authority. |
| FCL / LCL | FCL = full container. LCL = shared container. Impacts cost, risk, speed. |
Intermediate Terms — Important to Learn Early
| Term | Meaning & Why It Matters |
| HS Code | Determines duties and legality of import. Mistake = fines, seizure or reclassification. |
| Waybill | Shipping document without transfer of title — quicker but not legally negotiable like a B/L. |
| Dead Freight | Fee for booking more space than used. Avoid by accurate planning. |
| Transshipment | Cargo switching vessel mid-journey — adds complexity, risk and sometimes time. |
| Palletisation | Improves handling. Required for many warehouses and customs checks. |
| Lead Time | Total transit duration from booking → delivery. Helps consumer promise accuracy. |
| DDP (Delivered Duty Paid) | Seller handles nearly everything. Buyers love it, sellers risk more. |
| EXW (Ex Works) | Buyer handles everything. Cheap for seller, risky for buyer. |
| FOB (Free on Board) | Risk transfers when goods loaded on vessel. Most used in sea freight deals. |
| Certificate of Origin | Needed to prove goods’ country of manufacture — influences tariffs. |
Advanced Logistics Terms — The Ones Pros Use
| Term | Insight |
| SOP (Standard Operating Procedure) | Shipping instruction document — reduces handling errors. |
| CTO / CTO | Container Terminal Operator — handles loading & unloading. |
| IATA | Governs global aviation freight compliance. |
| Intermodal | Seamless transport using multiple modes (sea + rail + road). |
| ETA / ETD | Estimated times — crucial for tracking and downstream supply chain planning. |
| RAL (Risk at Loading) | Determines who’s liable for loading damage. |
| CARGO WORTHY | Condition grade: safe for international shipping — clearer compliance. |
| WWT (Wind & Watertight) | Condition grade: safe for static storage, not cargo transport. |
| RORO (Roll-On / Roll-Off) | Vehicle-driven loading for machinery, trucks, cars. |
| Bonded Warehouse | Duty-free holding area until goods cleared by customs — helps cash-flow. |
| Free Time | The grace period before demurrage or detention fees. |
| Detention | Fee for keeping container outside port beyond allowed time. |
| Container Survey | Condition check pre-use — protects against wrongful damage claims. |
| Verified Gross Mass (VGM) | Legal requirement to weigh container pre-load (SOLAS regulation). |
| Dangerous Goods (DG) | Special compliance category for hazardous materials. |
| Piggybacking | Rail transport of loaded container trailers. |
| Cut-Off Time | Deadline for gate-in of containers before vessel loading. |
| Supply Chain Visibility | Tech-enhanced tracking showing full shipment status & risk alerts. |
| Origin Charges | Fees at start port — often misunderstood and underquoted. |
| Destination Charges | Fees billed on arrival — biggest surprise for beginners. |
That’s 40 key terms — and now you’ve mastered them.
Pro Tips to Avoid Jargon-Related Costly Mistakes
| Risk | What Happens | How to Prevent |
| Mis-used Incoterms | You unexpectedly pay for shipping & insurance | Confirm in writing in contracts |
| Wrong HS Code | Duty penalties, refusals | Double-check on UK Tariff database |
| Lost B/L | Cargo cannot be released | Use a Sea Waybill where possible |
| Poor volume planning | Dead freight or wasted money on LCL | Always measure + allow buffer |
| Missing free-time awareness | Huge demurrage bills | Track ETA + cut-offs closely |
UK-Specific Customs Insight (Updated for 2026)
- All UK imports must include EORI numbers
- Certain HS codes now require pre-lodged declarations
- Agricultural & food imports often need SPS (Sanitary & Phytosanitary) documentation
- Incorrect paperwork triggers Border Targeting Service flagging → inspection → delay
Every shipment document must match exactly:
- product
- quantity
- packaging
- HS code
- vessel/flight details
Even small discrepancies can cause Priority Hold status.
Case Study — Success by Speaking the Language
An e-commerce retailer imported electronics from Vietnam. At first:
❌ Wrong HS codes ⇒ extra duty applied
❌ No cargo insurance ⇒ one damaged pallet = straight loss
❌ Using EXW ⇒ they carried risk from factory gate → UK port
After training and adopting FOB + correct tariff classifications:
✔ Ports cleared shipments in 24–48 hours
✔ No demurrage charges
✔ Predictable transit time meant better customer delivery promises
Knowledge = profit.
