Expertise Library / Glossary
The freight glossary.
The vocabulary of a shipping invoice — every fee, document and term defined in one line each, in plain English.
Fees & charges
Accessorial
Any charge on a drayage move beyond the base line haul and fuel — chassis, pre-pull, detention, storage, tolls, overweight, redelivery and the rest. Accessorials are where two drayage quotes with the same headline rate diverge, and where invoice-day surprises live. A transparent quote names every accessorial that could apply up front, even at zero, so nothing appears later that wasn’t disclosed.
Bunker adjustment factor (BAF)
A surcharge that lets carriers pass through changes in fuel ("bunker") costs on top of the base ocean rate. Because fuel moves, BAF is quoted as a separate, adjustable line rather than baked into the base — which is exactly why two quotes with the same base rate can land at very different totals. Always compare all-in, BAF included.
Congestion surcharge
An extra charge carriers or truckers add when a port is badly backed up and moves take longer than normal — dwell time, missed appointments and wasted trips all cost the trucker, and the surcharge passes some of that on. It’s a symptom of congestion, not a fixed line, and it’s one reason a low ocean rate into a congested port can end up costing more than a higher rate into a fluid one.
Currency adjustment factor (CAF)
A surcharge covering exchange-rate movement between the currency the carrier prices in and the currency it settles in, expressed as a percentage of the base rate. Like BAF, it is a pass-through line that can move between quote and invoice, so it belongs in any all-in comparison of two rates.
Demurrage
A charge the ocean carrier or terminal bills when your container sits inside the port past its allotted free time. The clock starts when the box is available for pickup and stops when it leaves the terminal. Demurrage is charged per container, per day, and rises steeply the longer the box stays — it is the single most common "surprise" fee on an import invoice. The fix is almost always faster drayage dispatch and clean customs release, not negotiation after the fact.
Detention
A charge for keeping the carrier’s container outside the terminal — at your dock or yard — longer than the free time allowed. Where demurrage is about the box sitting inside the port, detention is about the box (and often the chassis) sitting with you after it has been picked up. It is billed per container, per day. Booking enough unloading time and returning empties promptly is what keeps detention off the invoice.
Per diem
The daily rate a carrier charges for use of its equipment beyond free time. In US import practice "per diem" and "detention" are often used interchangeably for the container, while chassis providers bill their own per-diem for the chassis. Either way it is a per-day meter running against a piece of equipment you are holding — the way to control it is to unload and return promptly, not to argue the rate.
Pre-pull
Pulling a container out of the terminal before your delivery appointment and holding it at the trucker’s yard — usually to beat the last free day and stop demurrage, or because an appointment isn’t available in time. It adds a move and a day or two of yard storage, but on a tight free-time window a pre-pull can cost far less than the demurrage it prevents.
Terminal handling charge (THC)
The fee terminals charge for moving your container between the vessel and the yard — crane lifts, positioning and gate handling. It appears at both origin and destination and is billed per container. THC is a standard, unavoidable line on almost every ocean quote; what varies is whether a low "all-in" rate you were shown actually includes it or leaves it to appear later.
Documents
Bill of lading (B/L)
The core ocean shipping document, issued by the carrier, that does three jobs at once: a receipt for the goods, evidence of the contract of carriage, and — for an original "negotiable" B/L — a document of title that must be surrendered to release the cargo. Getting the consignee, notify party and description right on the B/L is what keeps release smooth at destination.
Commercial invoice
The seller’s bill for the goods and the primary document customs uses to assess value, classification and duty. It states the parties, a description of the goods, quantity, unit and total price, currency, Incoterm and country of origin. An accurate commercial invoice that matches the packing list and bill of lading is the single biggest factor in a clean, fast customs entry.
Telex release
An instruction that lets the carrier release cargo at destination without an original paper bill of lading, once the shipper has surrendered the originals at origin. It removes the wait for couriered documents and the risk of losing them — useful on fast trades — but it also means whoever is named as consignee can collect the goods, so it should only be used when payment terms allow it.
Modes & equipment
Bobtail
A truck driving with no chassis or container attached — just the tractor. Bobtailing is dead mileage: the driver isn’t moving freight but is still burning time and fuel, for instance going to fetch a chassis before a pickup. It’s one of the hidden costs behind chassis splits and congestion surcharges, since every bobtail move is time the trucker has to recover somewhere.
Chassis
The wheeled steel frame a container sits on to be trucked over the road. In much of the US the chassis is rented separately from the container, so a drayage quote carries its own chassis line — daily rate, who supplies it, and any "split" fee when the chassis and container are picked up in different locations. Overweight or specialized loads may need a tri-axle chassis at a higher rate.
Drayage
The short-haul trucking move that carries a container between the port or rail ramp and a nearby facility — your warehouse, a transload dock, or an empty return. It is a distinct, separately-priced leg of an ocean shipment, built from line haul plus accessorials like chassis, pre-pull and detention. Because drayage is where demurrage and per-diem clocks are won or lost, dispatch speed matters as much as the rate itself.
Drop-and-hook
A delivery where the driver drops the loaded container (on a chassis) at your dock and leaves, then returns later to collect the empty — as opposed to a live unload where the driver waits. Drop-and-hook frees the driver and avoids detention if you can’t unload immediately, but the container and often the chassis stay with you, so chassis per-diem and detention clocks keep running until pickup.
FCL (full container load)
A shipment that fills — or simply books — an entire container for one shipper, priced per container regardless of how full it is. FCL means your cargo is loaded once at origin and not touched until destination, which lowers handling risk and usually speeds transit versus consolidated freight. Above roughly 13–15 CBM it is typically cheaper than shipping the same volume loose.
LCL (less than container load)
A shipment too small to justify its own container, consolidated with other shippers’ cargo into one box and priced per cubic meter (or revenue ton). LCL is right-sized for small lots, but the per-CBM rate plus fixed destination handling fees means it loses its cost advantage as volume grows — and the extra consolidation and deconsolidation handling adds transit time and touch points.
Live unload
A delivery where the driver stays while the container is unloaded (or loaded) and takes it away the same visit. It avoids holding the box and chassis, but the driver is waiting — so it comes with free time (typically a couple of hours) after which driver detention accrues. Live unload works when you can turn the container fast; if you can’t, drop-and-hook is usually cheaper.
Overweight container
A loaded container that exceeds legal over-the-road weight limits on a standard chassis, requiring a tri-axle chassis, an overweight permit, and sometimes a specific routing. It’s common with dense cargo — machinery, minerals, liquids — and carries its own accessorial. Knowing the laden weight before dispatch avoids a truck being turned away at the scale and the move being re-quoted.
Dangerous goods
Class 9 (miscellaneous)
The dangerous-goods class for hazards that don’t fit classes 1–8: lithium batteries, dry ice, magnetized material, environmentally hazardous substances, elevated-temperature materials, and vehicles or engines with batteries or fuel. Because it’s the catch-all, Class 9 is where a huge share of modern freight lands — most of all lithium batteries, which is why so many "ordinary" electronics and equipment shipments are regulated.
Dangerous goods (DG)
Articles or substances that pose a risk to health, safety, property or the environment in transport, and are therefore regulated: assigned a UN number, a hazard class, and specific packing, marking and documentation rules. "Dangerous goods" is the sea/air term; US ground calls the same freight "hazardous materials" (hazmat). Lithium batteries, machinery with fuel systems, aerosols, paints and many everyday industrial products all fall under DG rules — often to shippers’ surprise.
Dangerous goods declaration (DGD)
The document in which the shipper formally declares dangerous goods and certifies they are correctly classified, packed, marked and labelled for transport. Air calls it the Shipper’s Declaration (IATA); sea, the Dangerous Goods Note. It must agree exactly with the safety data sheet, the package marks and the commercial documents — one mismatch (a wrong UN number, a missing packing instruction) is enough to hold the whole shipment.
Excepted quantity (EQ)
The smallest regulated tier of dangerous goods, allowing very limited amounts to ship with minimal requirements — an EQ mark and basic packaging — provided strict per-inner and per-package limits are met. Below the limited-quantity threshold, it’s the lightest-touch option for tiny amounts of qualifying products, but the quantities involved are genuinely small.
IATA DGR
The Dangerous Goods Regulations published annually by IATA — the working standard for shipping DG by air, built on the ICAO Technical Instructions. It defines what may fly, in what quantity and packaging, and how it must be declared. Air rules are tighter than sea, especially for lithium batteries, so a shipment acceptable by ocean under the IMDG Code may not be acceptable by air.
IMDG Code
The international rulebook for carrying dangerous goods by sea, published by the IMO. It sets classification, packing, marking, documentation, stowage and segregation requirements for ocean freight and is updated on a two-year cycle. Its air counterpart is the IATA Dangerous Goods Regulations; US ground follows 49 CFR. Booking DG by ocean means meeting the IMDG edition in force.
Limited quantity (LQ)
A relief that lets small inner-packaging amounts of certain dangerous goods ship under reduced requirements — a distinctive LQ mark instead of full labels and, often, no dangerous-goods declaration. It cuts cost and complexity for products that qualify, but the per-package limits are specific and enforced. Excepted quantities are an even smaller tier with further relief.
Lithium batteries
Class 9 dangerous goods, regulated by chemistry, watt-hour rating and whether they ship alone or with equipment. Lithium-ion alone is UN3480; in or packed with equipment, UN3481 (lithium-metal: UN3090 / UN3091). For air, cells and batteries shipped alone must be at a state of charge of 30% or less. The rules are strict and change often — this is the lane most forwarders decline and Kintech quotes weekly.
Packing group (PG)
A rating — I (high danger), II (medium) or III (low) — that sets how robustly a dangerous substance must be packaged. Not every entry has one: many Class 9 lithium batteries, for instance, are assigned no packing group but follow their own detailed packing instructions instead. Where a PG does apply, it determines the packaging performance standard the container must meet.
Proper shipping name (PSN)
The standardized name a dangerous substance or article must be declared under — not a brand or trade name. It appears with the UN number on the package and the dangerous-goods declaration, e.g. "Lithium ion batteries" for UN3480. Using a marketing name instead of the PSN is one of the most common reasons a DG booking is rejected at acceptance.
Safety data sheet (SDS)
A standardized document from the manufacturer describing a product’s hazards, composition and handling — including the transport section (14) that gives the UN number, proper shipping name, class and packing group. The SDS is the source the dangerous-goods declaration is built from, so an out-of-date or incomplete SDS is where DG problems usually begin. Every DG booking should start with a current one.
Segregation
The rules for keeping incompatible dangerous goods apart in transport so they can’t react if they leak or ignite — governing how far apart packages must be, and whether they can share a container or hold at all. Under the IMDG Code, segregation is set by a table of class-against-class relationships. Ignoring it is both unsafe and grounds for a carrier to refuse or offload the freight.
State of charge (SoC)
How full a lithium battery is, as a percentage of capacity. For air transport, lithium-ion cells and batteries shipped on their own (UN3480) must be at 30% state of charge or less — a hard acceptance rule aimed at reducing fire risk in the hold. Shipping at a lower charge is a compliance requirement, not a preference, and carriers will reject over-charged batteries at the counter.
UN number
A four-digit number, assigned by the UN, that identifies a dangerous substance or article in transport — e.g. UN3480 for lithium-ion batteries shipped alone. It pairs with a proper shipping name and drives the packing, marking and documentation that apply. The right UN number is the starting point of every DG shipment; the wrong one invalidates the whole declaration.
Project & heavy cargo
Breakbulk
Cargo shipped individually — crated, skidded, drummed or as bare machinery — rather than in a container, loaded and lashed directly in the vessel’s hold. Breakbulk is the route for pieces too big or heavy for even flat racks and open tops, using the ship’s own gear or shore cranes. It trades containerized convenience for the ability to move almost anything, and needs careful stowage, securing and often a heavy-lift plan.
Flat rack
A container base with no side walls and collapsible or fixed ends, used for cargo that’s too wide or heavy for a standard box — machinery, vehicles, structures. The load is set on the deck and lashed down, with over-width and over-height handled by blocking the adjacent slots. Flat racks keep oversized cargo in the container system (cranes, cell guides, standard handling) rather than moving to breakbulk.
Heavy lift
Cargo heavy enough that ordinary cranes and handling won’t safely move it, requiring a lift plan — rated cranes or the vessel’s heavy-lift gear, calculated rigging, and engineered pick points. Transformers, presses, vessels and large machinery fall here. The weight drives everything downstream: crane selection, chassis, permits and route, so an accurate weight and centre of gravity is the starting point, not a detail.
Lashing & securing
Fixing cargo against movement in transit — chains, straps, welded stoppers, blocking and dunnage — engineered to the forces the load will see at sea or on the road. On flat racks, breakbulk and heavy lift, correct lashing is a safety and acceptance requirement, not a formality: inadequate securing is grounds for a carrier to refuse the load, and a shifted load in a hold endangers the whole shipment.
Lowboy / RGN
A low-deck trailer for hauling tall, heavy machinery over the road. A removable-gooseneck (RGN) version detaches at the front so equipment can be driven straight onto the deck. The low deck height keeps over-tall loads within legal or permittable height and lowers the centre of gravity for stability. Lowboys are the inland workhorse for excavators, loaders and cranes moving from port to site.
Open top
A standard-footprint container with a removable tarpaulin roof instead of a solid top, so cargo can be loaded from above by crane and over-height loads can protrude under an out-of-gauge declaration. Open tops suit dense or tall cargo that’s awkward to load through end doors — the top comes off, the load drops in, the tarp goes back on. Over-height still ships as out-of-gauge.
Out-of-gauge (OOG)
Cargo that doesn’t fit within the internal dimensions of a standard container — too tall, too wide or too long, so it overhangs or sits above the container walls. OOG freight ships on flat racks or open tops (or as breakbulk) and is priced for the space it blocks around itself, not just the space it occupies. Declaring accurate over-dimensions early is what lets the carrier plan stowage and quote correctly.
Oversize / overweight permit
State-issued authorization to move a load that exceeds legal size or weight limits on public roads, specifying the allowed route, times of travel and any escort requirements. Permits are per-state, so a multi-state haul stacks several, each with lead time. The largest loads (superloads) can need bridge analysis and utility coordination. Permit lead time, not trucking availability, is often the real constraint on the schedule.
Project cargo
Freight that’s too large, heavy or complex to move as standard containerized cargo — machinery, industrial plant, generators, construction and mining equipment — usually shipped as one engineered move rather than a routine booking. Project cargo combines out-of-gauge or breakbulk ocean, permitted heavy haul inland, and tight scheduling, with a single coordinator owning the critical path so vessel cutoffs, permit lead times and site windows all line up.
RoRo (roll-on/roll-off)
An ocean method where wheeled or tracked cargo is driven or towed on and off a specialized vessel via a ramp, rather than lifted by crane. RoRo suits self-propelled and rolling equipment — vehicles, loaders, cranes, trailers — avoiding the lift risk and lashing of container or breakbulk moves. Sailings are route- and schedule-specific, so RoRo is a lane question as much as an equipment one.
Route survey
A pre-move check of the planned road route for an oversized load — bridge clearances and load ratings, overhead lines, turn radii, road width, and any construction or weight-restricted structures. For the largest moves it’s a physical drive-through. The survey decides whether a route is viable and what escorts, pole cars or utility lifts it needs, and it’s done before the permit, not after the truck is loaded.
Process & customs
Customs clearance
The process of getting imported goods released by the customs authority: filing the entry, declaring value and classification, paying duties and taxes, and satisfying any partner-agency requirements (FDA, EPA, DOT and others). Clearance can be started before the vessel arrives so release lines up with discharge — the alternative is a container sitting at the terminal accruing demurrage while paperwork catches up.
Free time
The window — usually a set number of calendar days — during which you can keep a container without incurring demurrage or per-diem charges. Free time for the box at the terminal and free time for the equipment once it leaves are tracked separately, and holidays and weekends usually still count. Knowing exactly how many free days a booking carries is the first step to avoiding accessorial charges.
HS code
The Harmonized System code — an internationally standardized number that classifies a product for customs. The first six digits are common worldwide; importing countries extend them (in the US, to the 10-digit HTS) to set the exact duty rate and any special requirements. The HS code drives duty, eligibility for trade programs, and which government agencies must clear the goods, so getting it right is worth real money.
Incoterms
A set of standard three-letter trade terms published by the ICC that define, for a sale, exactly where the seller’s responsibility ends and the buyer’s begins — who arranges carriage, who pays which leg, and where risk of loss transfers. Choosing the right Incoterm (EXW, FOB, CIF, DDP and the rest) decides who controls the freight and who is exposed if something goes wrong in transit.
ISF (Importer Security Filing)
A US Customs filing — also called "10+2" — that ocean importers must submit at least 24 hours before cargo is loaded onto the vessel abroad. It lists ten data elements from the importer plus two from the carrier. Late, inaccurate or missing ISF filings draw penalties of up to $5,000 per shipment, so the filing is tied to booking data and made early, not at arrival.
Last free day (LFD)
The final day you can pull a container from the terminal before demurrage starts. It’s set from when the box is available and discharged, adjusted for the free time on your booking, and it’s the single most important date in an import drayage move. Missing it — because of a customs hold, no appointment or slow dispatch — is what turns a clean shipment into a demurrage bill.
Street turn
Reusing an import container as an export empty without returning it to the terminal first — the box goes straight from an import unload to an export load. When the carrier allows it, a street turn saves a trip, cuts per-diem, and reduces terminal traffic. It needs the carrier’s approval and a matching export booking, so it’s an opportunity to ask about, not a given.
Transload
Moving cargo out of an ocean container into a domestic trailer (typically a 53′ van) near the port, so the import box can be returned quickly and the freight travels inland at domestic economics. Transloading adds a handling step but can stop demurrage and per-diem clocks and consolidate two 40′ containers into fewer domestic trailers — often a net saving on inland-heavy lanes.
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