Freight & Logistics Glossary

A — C

Air Waybill (AWB)
A transport document issued by an airline or freight forwarder that serves as a receipt for goods and a contract of carriage for air freight shipments. Unlike a bill of lading, an AWB is non-negotiable.

Bonded Warehouse
A secure warehouse approved by HMRC where imported goods can be stored without payment of customs duty or VAT until they are released for free circulation, re-exported, or otherwise disposed of.

Bill of Lading (B/L)
A legal document issued by a carrier to a shipper for sea freight. It serves three functions: receipt for goods shipped, evidence of the contract of carriage, and document of title to the goods.

Border Target Operating Model (BTOM)
The UK Government's framework for implementing full border controls on imports, introduced in phases following Brexit. It covers customs declarations, health certificates, and physical inspections.

CBM (Cubic Metre)
A unit of volume measurement used to calculate freight charges, particularly for sea freight LCL shipments. Volumetric weight may also be used for air freight pricing.

Customs Declaration Service (CDS)
HMRC's digital platform for submitting import and export customs declarations. CDS replaced the older CHIEF system for all UK customs processing.

CHED (Common Health Entry Document)
A document required for importing animals, animal products, plants, and food of non-animal origin into the UK. Different CHED types apply to different product categories.

CIF (Cost, Insurance and Freight)
An Incoterm for sea freight where the seller pays for carriage and insurance to the destination port. Risk transfers to the buyer when goods are loaded at the origin port.

Commodity Code
A numerical classification (HS code or tariff code) assigned to goods to determine applicable duty rates, trade restrictions, and statistical reporting requirements. Correct classification is essential for customs clearance.

Consignee
The person or company to whom goods are shipped and delivered — typically the buyer or their nominated agent.

Consignment
A batch of goods sent together as a single shipment under one transport document.

Consolidation
Combining multiple smaller shipments from different shippers into a single container or unit load for more efficient and cost-effective transport.

Customs Broker
A licensed professional who prepares and submits customs documentation, calculates duties, and ensures compliance with import and export regulations on behalf of importers and exporters. Gxpresss UK acts as a customs broker for its clients.

D — F

DAP (Delivered at Place)
An Incoterm where the seller delivers goods to a named destination, ready for unloading. The buyer is responsible for import clearance and duties.

DDP (Delivered Duty Paid)
An Incoterm placing maximum obligation on the seller, who delivers goods cleared for import with all duties and taxes paid.

Demurrage
A charge levied by a shipping line when a container is not returned within the agreed free time after being discharged from the vessel. Delays in customs clearance are a common cause of demurrage.

Detention
A charge for keeping a shipping container outside the port or terminal beyond the allowed free time — for example, while goods are being unpacked at the importer's premises.

DPU (Delivered at Place Unloaded)
An Incoterm where the seller delivers and unloads goods at the named destination. Formerly known as DAT.

Duty (Customs Duty)
A tax imposed by HMRC on imported goods, calculated as a percentage of the goods' customs value. Rates vary by commodity code and country of origin.

EORI Number
Economic Operators Registration and Identification number. Required for all UK businesses engaged in importing or exporting goods. UK EORI numbers begin with GB.

EXW (Ex Works)
An Incoterm where the seller makes goods available at their premises. The buyer bears all costs and risks from that point onwards.

FCL (Full Container Load)
A shipment that occupies an entire shipping container, typically a 20ft or 40ft unit. FCL is more cost-effective than LCL for larger volumes.

FOB (Free on Board)
An Incoterm for sea freight where the seller delivers goods on board the vessel at the port of shipment. The buyer arranges ocean freight and insurance.

Freight Forwarder
A company that organises the transport of goods on behalf of shippers. Freight forwarders arrange carriage, documentation, customs clearance, and insurance. Gxpresss UK operates as a full-service freight forwarder.

Free Trade Zone (FTZ)
A designated area where goods can be imported, stored, handled, and re-exported without being subject to customs duty. Also known as a free zone or foreign trade zone.

G — L

GDP (Good Distribution Practice)
Guidelines that ensure the quality and integrity of pharmaceutical products is maintained throughout the supply chain, from manufacturer to end user.

Groupage
Another term for LCL (Less than Container Load) — combining goods from multiple shippers into a shared container.

HS Code (Harmonised System Code)
An internationally standardised numerical classification for traded products. The first 6 digits are universal; additional digits are country-specific. Used to determine duty rates and trade statistics.

IATA
International Air Transport Association — the trade association for airlines that sets standards for air freight, including dangerous goods handling and documentation.

Incoterms
International Commercial Terms published by the ICC. A set of 11 rules defining buyer and seller responsibilities in trade contracts. See our full Incoterms 2020 Guide.

Intermodal Transport
The movement of goods using two or more modes of transport (e.g., sea + road, or rail + road) in a single journey, typically using standardised containers.

LCL (Less than Container Load)
A shipment that does not fill an entire container and is consolidated with other shippers' goods. LCL is suitable for smaller volumes but has longer transit times than FCL.

Letter of Credit (L/C)
A financial instrument issued by a bank guaranteeing payment to the seller, provided that specified shipping documents are presented. Common in international trade to reduce payment risk.

M — P

Manifest
A comprehensive list of all cargo carried on a vessel, aircraft, or vehicle. Used by customs authorities and carriers for cargo tracking and clearance.

MAWB (Master Air Waybill)
The air waybill issued by the airline covering a consolidated shipment. Individual consignments within the consolidation are covered by House Air Waybills (HAWBs).

NVOCC (Non-Vessel Operating Common Carrier)
A freight company that issues its own bills of lading but does not own or operate vessels. NVOCCs consolidate shipments and buy space on shipping lines.

Packing List
A document accompanying a shipment that details the contents of each package, including item descriptions, quantities, weights, and dimensions.

Pallet
A flat platform (typically wooden) used to support and transport goods. Standard UK/European pallets measure 1200mm x 800mm (EUR pallet) or 1200mm x 1000mm (UK pallet).

Port of Discharge
The port where goods are unloaded from the carrying vessel. For UK imports, common ports include Felixstowe, Southampton, London Gateway, and UK seaports.

Postponed VAT Accounting (PVA)
A UK scheme allowing VAT-registered businesses to account for import VAT on their VAT return rather than paying it at the border. Introduced to support trade after Brexit.

Pre-Clearance
Submitting customs declarations and documentation before goods arrive at the border, enabling faster release upon arrival. Gxpresss UK routinely pre-clears shipments to minimise delays.

Q — S

Quarantine
The isolation of imported goods (particularly animals, plants, and food products) pending inspection or testing by regulatory authorities.

Reefer Container
A refrigerated shipping container used for temperature-controlled transport of perishable goods such as food products and pharmaceuticals.

Ro-Ro (Roll-on/Roll-off)
A type of vessel designed to carry wheeled cargo such as vehicles, trailers, and heavy machinery. Vehicles drive on and off the ship via ramps.

SPS (Sanitary and Phytosanitary)
Measures applied to protect human, animal, and plant health. SPS checks are required for food, animal products, and plants entering the UK, particularly from the EU since Brexit.

Shunt
The movement of a container or trailer from one location to another within a port, terminal, or short distance. Gxpresss offers specialist shunt and devan services.

Stuffing / Destuffing
Loading (stuffing) or unloading (destuffing/devanning) goods into or out of a shipping container.

T — Z

TCA (Trade and Cooperation Agreement)
The UK-EU Trade and Cooperation Agreement signed in December 2020. It provides for zero tariffs and zero quotas on goods that meet rules of origin requirements. See our Post-Brexit Guide.

TEU (Twenty-foot Equivalent Unit)
A standard unit of measurement for container capacity. One TEU equals one 20ft container. A 40ft container equals 2 TEU.

THC (Terminal Handling Charge)
A fee charged at the port for handling containers — includes lifting, stacking, and moving containers within the terminal.

Trade Documentation
The collective term for all paperwork required for international trade, including invoices, packing lists, certificates, and declarations. Gxpresss provides full trade documentation services.

Transit Time
The total time from when goods leave the origin to when they arrive at the destination, including any transhipment or customs processing time.

Transhipment
The transfer of goods from one vessel or vehicle to another during transit, typically at an intermediate port or hub.

UK Single Trade Window
A planned government digital platform that will allow traders to submit all border-related data in one place, reducing duplication and streamlining the customs process.

WTO (World Trade Organisation)
The international body governing global trade rules. WTO tariff rates (Most Favoured Nation rates) apply when no preferential trade agreement is in place.