Shipping glossary

100 freight, container and Indian customs terms explained in plain English, each with its own page.

Search 100 terms

A B C D E F G H I L M N O P R S T U V W

A

AD code: Authorised Dealer code: your bank’s 14-digit code registered with customs at each port.
Air waybill (AWB): The transport document for air cargo, issued by the airline or its agent.
All-in rate: A freight price that already includes surcharges such as BAF and CAF.
Arrival notice: A message from the shipping line telling the consignee that cargo is about to arrive.
Assessable value: The value on which Indian customs calculates import duty — usually the CIF value in rupees.

B

BAF: Bunker adjustment factor: a fuel surcharge added to sea freight.
BCD: Basic customs duty: the main import duty, set per HS code in the Customs Tariff.
Bill of entry: The import declaration filed with Indian customs for goods arriving in India.
Bill of lading (B/L): The document a shipping line issues for sea cargo: receipt, contract and title to the goods.
Bonded warehouse: A customs-controlled warehouse where imported goods can be stored without paying duty yet.
Booking: A reservation of space on a ship or plane for your cargo.
Break bulk: Cargo shipped as individual pieces rather than in containers — machinery, steel, timber.
Bulk cargo: Unpacked cargo loaded straight into a ship’s hold: coal, ore, grain, oil.
Bulk carrier: A ship built to carry loose dry cargo such as coal, iron ore or grain in large holds.

C

CAF: Currency adjustment factor: a surcharge covering exchange-rate changes.
Capesize: The largest dry bulk carriers, about 180,000 deadweight tonnes and 290 m long.
CBM: Cubic metre: length × width × height in metres, the standard measure of cargo volume.
CFS: Container freight station: a facility where LCL cargo is packed into and unpacked from containers.
CHA: Customs house agent — now called a licensed customs broker.
Chargeable weight: The weight you are billed on: the higher of actual and volumetric weight.
CIF: Cost, Insurance and Freight: the seller pays freight and insurance to the destination port.
Consignee: The person or company the goods are sent to.
Consolidation: Combining many small shipments into one container or air pallet.
Container number: An 11-character code on every container: 4 letters, 6 digits and a check digit.
Customs broker: A licensed agent who clears goods through customs for importers and exporters.
Cut-off: The deadline for delivering cargo, documents or VGM before a ship sails.

D

DAP: Delivered at Place: the seller delivers to the named place, unloading is the buyer’s job.
DDP: Delivered Duty Paid: the seller delivers to the buyer and pays import duty and taxes.
Deadweight (DWT): How much a ship can carry, in tonnes, including cargo, fuel, water and stores.
Delivery order (DO): The shipping line’s release note that lets the importer take the container from the terminal.
Demurrage: A daily charge for leaving a full container at the port or terminal beyond the free days.
Destuffing: Unloading cargo from a container.
Detention: A daily charge for keeping the shipping line’s container outside the port beyond the free days.
Drawback: A refund of customs duty paid on imported inputs used to make exported goods.

E

E-BRC: Electronic bank realisation certificate: proof that export payment was received.
E-way bill: An electronic permit for moving goods worth over ₹50,000 by road within India.
Empty pickup: Collecting an empty container from the line’s depot to stuff your cargo.
Empty return: Returning the empty container to the shipping line’s depot after unloading.
ETA / ETD: Estimated time of arrival / departure of a vessel or flight.
EXW: Ex Works: the buyer collects the goods at the seller’s premises and pays for everything after that.

F

FCA: Free Carrier: the seller hands export-cleared goods to the buyer’s carrier at a named place.
FCL: Full container load: one shipper uses the whole container.
Feeder vessel: A smaller container ship that carries boxes between smaller ports and big hub ports.
FEU: Forty-foot equivalent unit: one 40-foot container (2 TEU).
Flat rack: A container with no roof or side walls, for heavy or oversized cargo.
FOB: Free On Board: the seller loads the goods on the ship; the buyer pays freight and insurance.
Free time: The number of days a container may stay at the port or with you before charges start.
Freight forwarder: A company that arranges transport for shippers, booking space with carriers.

G

Gross weight: The total weight of the goods including all packing.
GST on exports (LUT): Exports are zero-rated: you can export without IGST under a Letter of Undertaking.

H

High cube (HC): A container about 30 cm taller than standard: 2.9 m outside, about 2.7 m inside.
House bill of lading (HBL): A bill of lading issued by a freight forwarder or NVOCC to its own customer.
HS code: The Harmonized System number that classifies every product for customs.

I

ICD: Inland container depot: a “dry port” away from the coast where customs clearance happens.
ICEGATE: The Indian customs electronic gateway for filing declarations and paying duty.
IEC: Importer-Exporter Code: a 10-character code from DGFT required for commercial imports and exports.
IGST on imports: Integrated GST charged by customs on imports, on the value plus customs duties.
Incoterms: Eleven standard trade terms (2020 edition) that say who pays for what and when risk passes.

L

LCL: Less than container load: your cargo shares a container with other shippers.
Letter of credit (LC): A bank’s promise to pay the seller once the right documents are presented.

M

Manifest: The list of all cargo on a ship or flight, filed with customs.
Master bill of lading (MBL): The bill of lading issued by the shipping line to the freight forwarder or NVOCC.
Mother vessel: A large mainline container ship sailing between hub ports on long routes.

N

Neo-Panamax: Ships sized for the expanded Panama Canal locks: up to 366 m long and 51 m wide.
Net weight: The weight of the goods alone, without packing.
Notify party: The person the shipping line informs when cargo arrives, often the buyer or their broker.
NVOCC: Non-vessel-operating common carrier: a company that sells container shipping without owning ships.

O

Ocean freight: The charge for carrying a container or cargo by sea from port to port.
OOG: Out of gauge: cargo bigger than a standard container’s dimensions.
Open top: A container with a removable tarpaulin roof, loaded from above by crane.
Out of charge (OOC): Indian customs’ final clearance order allowing imported goods to be removed.

P

Packing list: A list of what is in each package, with weights and dimensions.
Panamax: The largest ship that fitted the original Panama Canal locks: 294 m long, 32.3 m wide.
Port storage: A charge by the terminal or CFS for cargo kept beyond its free period.
Pre-shipment inspection: A check of goods before shipping, often by a third party, for quality or compliance.
Project cargo: Large, heavy or complex shipments for industrial projects — turbines, transformers, plant.
PSS: Peak season surcharge: extra freight charged when demand is high.

R

Reefer: A refrigerated container with its own cooling unit, for food, medicines and flowers.
Ro-Ro: Roll-on/roll-off: ships that carry wheeled cargo such as cars and trucks, driven on board.
RoDTEP: Remission of Duties and Taxes on Exported Products: an Indian export incentive.
Rollover: When a booked container is moved to a later ship, often because the ship is full.

S

Sea waybill: A non-negotiable transport document: the consignee can collect cargo without an original.
Seal: A numbered high-security bolt seal fixed to the container doors after loading.
Shipper: The person or company sending the goods, usually the seller.
Shipping bill: The export declaration filed with Indian customs before goods leave India.
Stuffing: Loading cargo into a container.
SWS: Social welfare surcharge: 10% of the basic customs duty on most imports.

T

Tanker: A ship that carries liquid cargo such as crude oil, products, chemicals or gas.
Tare weight: The weight of an empty container (or packaging) on its own.
Telex release: Release of cargo without the original bill of lading, after the shipper surrenders it at origin.
TEU: Twenty-foot equivalent unit: one 20-foot container. A 40-foot container is 2 TEU.
THC: Terminal handling charges: fees for moving containers within the port terminal.
Transit time: How long cargo takes from origin to destination.
Transshipment: Moving cargo from one ship to another at an intermediate hub port.

U

ULCV: Ultra large container vessel: ships over about 14,500 TEU, up to around 24,000 TEU and 400 m long.
UN/LOCODE: A five-letter code for every port and trade location, e.g. INNSA for Nhava Sheva.

V

VGM: Verified gross mass: the certified total weight of a packed container, required before loading.
VLCC: Very large crude carrier: an oil tanker of about 300,000 deadweight tonnes, about 330 m long.
Volumetric weight: A weight based on a package’s size: L × W × H ÷ a divisor.

W

W/M: Weight or measurement: LCL is charged on the larger of tonnes and cubic metres.

About this glossary

Shipping has its own language, and a misunderstood term can cost real money — a missed VGM cut-off rolls your container to the next ship, and unclear free time turns into demurrage. Each entry gives a one-line meaning and a short explanation of how it works in practice in India, with links to related terms and to free calculators.

Questions

What is the difference between demurrage and detention?

Demurrage is charged while a full container stays at the port beyond the free days; detention is charged while the line’s container is outside the port beyond the free days, until the empty is returned.

What does TEU mean?

Twenty-foot equivalent unit: one 20-foot container. A 40-foot container counts as 2 TEU.

What is the difference between FCL and LCL?

FCL is a full container used by one shipper; LCL means your cargo shares a container with others and is charged by volume or weight.

Sources

Last checked 2026-11-11. Free to use; please check important details before you rely on them.

Shipping glossary

A

B

C

D

E

F

G

H

I

L

M

N

O

P

R

S

T

U

V

W

About this glossary

Questions

Sources

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