International trade runs on language. Freight invoices, customs declarations, shipping instructions, and carrier contracts are packed with abbreviations and technical terms. If you don’t know what they mean, you risk making costly mistakes: wrong Incoterms, missed free time, unexpected duty bills. This glossary covers more than 100 shipping terms used in UK and international logistics. It is written for people new to the industry who need a reliable reference they can return to every week.
Each entry gives you the full term, its common abbreviation, and a plain-English definition. Where a term works differently in a UK context, for example after Brexit, that is noted clearly.
Use the contents links to jump to the right section. If you are looking for a specific term, use Ctrl+F (or Cmd+F on Mac) to search the page.
Some terms link to dedicated guides on ShippingEducation.co.uk. Those guides go much deeper if you need more than a quick definition.
This glossary covers sea freight, air freight, road freight, and customs terminology. It focuses on terms relevant to UK importers and exporters, but most definitions apply globally.
Actual Time of Arrival (ATA)
The real date and time a vessel or aircraft arrived at a port or airport. This differs from the estimated time of arrival (ETA), which is the forecasted arrival. ATAs matter for booking collection slots and calculating detention or demurrage clocks.
Actual Time of Departure (ATD)
The real date and time a vessel or aircraft left its origin port. ATD is used to calculate transit times and confirm that cargo has actually sailed. If a vessel misses its scheduled departure, the ATD will be later than the estimated time of departure (ETD).
Authorised Economic Operator (AEO)
A certification issued by HMRC in the UK (and equivalent bodies in other countries) that recognises a business as a trusted and compliant trader. AEO status can speed up customs clearance and reduce the frequency of physical checks. There are two main types: AEOC (Customs Simplifications) and AEOS (Security and Safety). See our full guide to AEO certification.
Air Waybill (AWB)
The transport document used for air freight shipments. The AWB is issued by the airline or freight forwarder and acts as a receipt for the goods, a contract of carriage, and a customs declaration trigger. Unlike a Bill of Lading, an AWB is non-negotiable. It cannot be used as a document of title.
Bill of Lading (B/L or BOL)
The most important document in sea freight. A Bill of Lading is issued by the shipping line and serves three functions: it is a receipt for goods loaded on board, a contract of carriage between shipper and carrier, and, if issued in negotiable form, a document of title. Whoever holds the original B/L has the right to claim the cargo at destination. See our full guide to Bills of Lading.
Bunker Adjustment Factor (BAF)
A surcharge added to sea freight rates to account for changes in fuel (bunker) costs. Fuel prices fluctuate significantly, so carriers apply BAF on top of the base rate. It is expressed as a monetary amount per container or per tonne. Sometimes called Fuel Adjustment Factor (FAF).
Bill of Entry
A formal customs declaration submitted to HMRC (or another customs authority) when goods are imported. In the UK, most import declarations are submitted electronically through the Customs Declaration Service (CDS). The Bill of Entry records the commodity code, customs value, and applicable duty.
Bonded Warehouse
A HMRC-approved storage facility where dutiable goods can be held without paying import duty or VAT until they are released for use in the UK. Goods can also be re-exported from a bonded warehouse without ever paying UK duties. This is a useful cash-flow tool for importers who are not sure of their exact UK sales volumes.
Break-Bulk
Cargo shipped as individual units, pallets, crates, drums, or bags rather than inside a container. Break-bulk is common for oversized or heavy items that do not fit standard containers. It is also used as a verb: to break bulk means to separate a large shipment into smaller parts.
Buyer’s Consolidation
An arrangement where a buyer instructs all of their suppliers to deliver goods to a single consolidation point. The cargo is then packed into one or more containers before shipment. This reduces per-unit freight costs and simplifies inbound logistics management.
Currency Adjustment Factor (CAF)
A surcharge applied by carriers to compensate for exchange rate fluctuations between the freight rate currency and the actual trading currency. CAF is expressed as a percentage of the base freight rate and changes periodically.
Cubic Metre (CBM)
The standard unit of volume measurement in freight. One CBM equals one cubic metre (1m x 1m x 1m). Freight rates for LCL (less than container load) and air freight are often charged per CBM or per tonne, whichever is greater. Knowing how to calculate CBM is an essential skill for any new shipping coordinator.
Container Freight Station (CFS)
A facility where LCL (groupage) cargo is consolidated into containers for export, or deconsolidated on arrival for import. The CFS is operated by the freight forwarder or a specialist operator. LCL shipments will typically pass through a CFS at both origin and destination.
Cost, Insurance and Freight (CIF)
An Incoterm used in sea freight only. Under CIF, the seller pays for the cost of the goods, marine insurance, and freight to the named destination port. Risk transfers from seller to buyer when the goods are loaded on board at the origin port, even though the seller pays the freight. CIF is commonly used in commodity trades. See our full guide to the CIF Incoterm.
Carriage and Insurance Paid To (CIP)
An Incoterm that works similarly to CIF but applies to all modes of transport. Under CIP, the seller delivers the goods to a named carrier at origin and pays freight and insurance to the named destination. Risk transfers at the first carrier handover. CIP requires a higher level of insurance coverage than CIF. See our full guide to the CIP Incoterm.
Convention Merchandises Routier (CMR)
The international road freight transport convention that governs cross-border road haulage in Europe and beyond. A CMR note (or consignment note) is the transport document used for road freight, equivalent to a Bill of Lading for sea freight. Post-Brexit, CMR notes are still used for UK–EU road shipments.
Commodity Code
A numerical code used to classify goods for customs purposes. In the UK and EU, commodity codes are based on the Harmonised System (HS) and extend to 10 digits for import and 8 digits for export. The commodity code determines the duty rate, VAT treatment, and any licensing requirements. See HS Code below and our full guide to HS codes.
Consignee
The person or company named on a shipping document as the recipient of the cargo. The consignee is responsible for collecting the goods and completing import formalities at destination. On a straight (non-negotiable) Bill of Lading, the consignee is named directly. On an order B/L, the consignee may be “to order”, meaning the holder of the original document.
Container
A standardised metal box used to carry cargo on ships, trains, and trucks. The two most common sizes are the 20-foot container (1 TEU) and the 40-foot container (1 FEU or 2 TEU). Containers come in various types: standard dry, high-cube, open-top, flat-rack, and refrigerated (reefer). See our guide to container types.
Certificate of Origin (CoO)
A document that declares the country in which goods were manufactured or substantially produced. CoOs are required by customs authorities to determine eligibility for preferential duty rates under trade agreements. In the UK, the main types are standard CoO, EUR.1 movement certificates, and supplier declarations. The issuing body in the UK is typically a Chamber of Commerce.
Carriage Paid To (CPT)
An Incoterm where the seller pays freight to a named destination but risk transfers to the buyer when goods are handed to the first carrier at origin. CPT applies to all modes of transport. It is often used for multimodal shipments where the seller wants to pay door-to-port or door-to-door freight costs. See our full guide to the CPT Incoterm.
Container Yard (CY)
An area within or adjacent to a port where full containers (FCL) are stored before loading onto a vessel or after discharge. FCL containers are typically picked up and returned directly to the CY, rather than passing through a CFS.
Delivered at Place (DAP)
An Incoterm where the seller delivers goods to a named destination, typically the buyer’s premises, without unloading. The seller pays all freight and is responsible for export clearance but not import duties or customs clearance at destination. See our full guide to the DAP Incoterm.
Delivered Duty Paid (DDP)
An Incoterm representing maximum seller responsibility. Under DDP, the seller delivers goods to the buyer’s named premises, cleared for import and with all duties and taxes paid. This is the most complex Incoterm for exporters because it requires them to handle import customs in a country where they may not be registered. See our full guide to the DDP Incoterm.
Demurrage
A charge levied by the shipping line when an importer keeps a container at the port beyond the agreed free time period. Demurrage applies while the container is still in the port terminal. Free time is typically 3–7 days, and demurrage rates escalate quickly, sometimes doubling after the first tier. Understanding demurrage is essential to avoid unexpected costs.
Detention
A charge levied by the shipping line when a container is kept outside the port, for example at a warehouse or the buyer’s premises, beyond the free time period. Detention is distinct from demurrage: demurrage is in-port, detention is out-of-port. Both clocks often run simultaneously in different phases of a shipment.
Delivered at Place Unloaded (DPU)
An Incoterm where the seller delivers goods to a named place and unloads them. DPU is unique because it is the only Incoterm that requires the seller to unload the goods. The seller bears all risk until the goods are unloaded at destination. See our full guide to the DPU Incoterm.
Drayage
The short-distance movement of a container by road, typically from a port or rail yard to a nearby warehouse or distribution centre. Also called local haulage or port haulage. In UK practice, the term “local haulage” is more commonly used than drayage, but both mean the same thing.
Duty
A tax levied by a government on imported (or sometimes exported) goods. Import duty in the UK is calculated as a percentage of the customs value (usually the CIF value). The applicable rate depends on the commodity code and the country of origin. Since Brexit, UK duty rates are set under the UK Global Tariff (UKGT), which is separate from the EU’s Common External Tariff.
Economic Operator Registration and Identification (EORI)
A unique identification number issued to businesses that import or export goods across UK or EU borders. UK EORI numbers start with “GB” followed by 12 digits. Since Brexit, UK businesses need a GB EORI to trade with the EU, and may also need an EU EORI if they are established in the EU or move goods into EU countries. See our full guide to EORI numbers.
Estimated Time of Arrival (ETA)
The forecasted date and time a vessel, aircraft, or vehicle is expected to arrive at its destination. ETAs change frequently, especially in ocean freight, due to weather, port congestion, and vessel schedule changes. Always treat an ETA as an estimate, not a guarantee.
Estimated Time of Departure (ETD)
The forecasted date and time a vessel or aircraft is expected to leave its origin port or airport. ETD is also sometimes called the sailing date or flight date. Like ETA, it is subject to change and should be monitored closely.
EUR.1 Movement Certificate (EUR1)
A preferential origin certificate used to claim reduced or zero duty rates under EU trade agreements. After Brexit, EUR.1 certificates are no longer used for UK–EU trade. For UK–EU shipments, origin is instead evidenced by a Statement on Origin (REX declaration) or a supplier declaration. EUR.1 certificates are still used for UK trade with countries that have legacy agreements recognising them.
Ex Works (EXW)
An Incoterm representing minimum seller responsibility. Under EXW, the seller makes goods available at their premises (factory, warehouse, etc.) and the buyer is responsible for everything, including loading, export customs clearance, and all freight costs. EXW is simple for the seller but places significant risk and complexity on the buyer. See our full guide to the EXW Incoterm.
Freight All Kinds (FAK)
A single freight rate that applies regardless of the commodity being shipped. FAK rates simplify pricing for carriers and are common in spot market ocean freight. They contrast with commodity-specific rates, where the freight rate varies by the type of goods.
Free Alongside Ship (FAS)
An Incoterm used in sea freight only. Under FAS, the seller delivers goods to the quayside alongside the vessel at the named origin port. Risk and costs transfer to the buyer at that point. FAS is mainly used for bulk commodities loaded by crane or elevator. See our full guide to the FAS Incoterm.
Free Carrier (FCA)
An Incoterm applicable to all modes of transport. Under FCA, the seller delivers goods to a named carrier or freight forwarder at an agreed point, which can be the seller’s premises, a port, or another location. Risk transfers at that handover point. FCA is flexible and widely recommended for containerised sea freight. See our full guide to the FCA Incoterm.
Full Container Load (FCL)
A shipment that fills an entire container, booked and used by a single shipper. The shipper has exclusive use of the container from loading to delivery. FCL is more cost-effective than LCL for large volumes and offers faster transit because there is no consolidation or deconsolidation at a CFS. See our full guide to FCL shipping.
First In, First Out (FIFO)
A stock management principle where the oldest inventory is used or shipped first. FIFO is particularly important for perishable or time-sensitive goods. It is also relevant in bonded warehouses to manage duty liability and expiry dates.
Free on Board (FOB)
One of the most widely used Incoterms in sea freight. Under FOB, the seller delivers goods on board the vessel at the named origin port. Risk and costs transfer from seller to buyer at that point. The buyer is responsible for arranging and paying the main sea freight and insurance from origin port onwards. See our full guide to the FOB Incoterm.
Freight
In a general sense, freight means goods being transported commercially. In a narrower sense, “the freight” refers to the cost of transport, what you pay to move cargo from one place to another. The term is used in both contexts throughout the industry, so pay attention to the surrounding language.
Free Time
The period during which a shipper or consignee can use a container or occupy a terminal berth without incurring demurrage or detention charges. Free time is granted by the shipping line and varies by trade lane and carrier. Once free time expires, charges begin, and they accumulate daily.
Harmonised System Code (HS Code)
A six-digit numerical code used globally to classify traded products. Developed by the World Customs Organisation (WCO), the HS is used in more than 200 countries. In the UK, HS codes are extended to 10 digits (for imports) and 8 digits (for exports) to form commodity codes. The correct HS code determines your duty rate, VAT treatment, trade restrictions, and eligibility for preferential tariffs. See our full guide to HS codes.
International Chamber of Commerce (ICC)
The body responsible for publishing and maintaining the Incoterms rules. The ICC is based in Paris and represents businesses globally. The current version of Incoterms is Incoterms 2020, published in 2019 and in force from 1 January 2020.
International Maritime Dangerous Goods Code (IMDG)
The international code governing the transport of dangerous goods by sea. Issued by the International Maritime Organisation (IMO), the IMDG Code classifies hazardous materials and sets packaging, labelling, marking, and stowage requirements. Shippers of dangerous goods must comply with the IMDG Code and provide the correct documentation. See our full guide to dangerous goods shipping.
Incoterms
A set of 11 standardised trade terms published by the International Chamber of Commerce (ICC). Each Incoterm defines the point at which risk and cost transfer from seller to buyer, and which party is responsible for freight, insurance, and customs clearance. Incoterms 2020 is the current version. They are not a substitute for a full sales contract. They only address delivery terms.
Inward Processing Relief (IPR)
A UK customs procedure that allows businesses to import goods from outside the UK, process or manufacture them, and then re-export the finished products without paying import duty on the raw materials. IPR is used by manufacturers who source components from non-UK countries. It must be authorised in advance by HMRC.
Less than Container Load (LCL)
A shipment that does not fill a full container. LCL cargo from multiple shippers is consolidated together into one container at a CFS. At destination, the container is deconsolidated and cargo is distributed to individual consignees. LCL is cost-effective for small shipments but involves longer transit times and higher handling risk than FCL.
Landed Cost
The total cost of a product once it has arrived at the buyer’s premises, including buy price, freight, insurance, customs duty, VAT, port handling, and delivery. Calculating landed cost accurately is essential for pricing decisions. Many importers underestimate landed cost by forgetting some elements, particularly VAT and duty.
Letter of Credit (L/C)
A financial instrument issued by a bank on behalf of a buyer, guaranteeing payment to a seller provided the seller presents the correct documents within a specified time. Letters of credit reduce payment risk in international trade, particularly with new or unfamiliar trading partners. They are common in commodity trades and high-value transactions.
Letter of Indemnity (LOI)
A document used to release cargo without the original Bill of Lading. An LOI indemnifies the carrier against any claims arising from releasing goods without the proper title documents. LOIs are sometimes necessary when original documents are delayed, but they carry legal risk and should be used carefully.
Master Bill of Lading (MBL)
A Bill of Lading issued by the shipping line (the ocean carrier) to the freight forwarder. In LCL or NVOCC shipments, the freight forwarder holds the MBL and issues House Bills of Lading (HBL) to individual shippers. The MBL governs the contract between the carrier and the forwarder.
House Bill of Lading (HBL)
A Bill of Lading issued by a freight forwarder or NVOCC to the individual shipper. The HBL covers the forwarder’s contract with the shipper. In a LCL shipment, multiple HBLs may sit under a single MBL. The HBL is what most shippers see and work with day to day.
Manifest
A document listing all cargo on board a vessel, aircraft, or vehicle. The cargo manifest is submitted to customs authorities before arrival to allow pre-arrival risk assessment. It typically includes shipper names, consignee names, commodity descriptions, weights, and B/L or AWB numbers.
Most Favoured Nation (MFN)
A principle in international trade law that requires a country to give all trading partners the same customs duty rate it gives to its most favoured trading partner, unless a preferential trade agreement applies. In the UK, MFN rates are the standard import duty rates applied to goods from countries without a preferential trade deal with the UK.
New Computerised Transit System (NCTS)
The electronic system used across the UK and EU to manage goods in customs transit. Under NCTS, a Transit Accompanying Document (TAD) is generated and travels with the goods. NCTS allows goods to move across borders without paying duty at each crossing, with duty suspended until the goods reach their final destination.
Notice of Readiness (NOR)
A formal notification from a ship’s master or agent to the charterer or cargo owner that the vessel has arrived at the port and is ready to load or discharge cargo. NOR triggers the start of the laytime (the time allowed for loading or discharging). It is most important in charter party contracts.
Non-Vessel Operating Common Carrier (NVOCC)
A freight forwarder or logistics company that issues its own Bills of Lading and acts as a carrier to its customers, but does not own or operate the ships. An NVOCC buys space from ocean carriers and resells it to shippers. Most international freight forwarders operate as NVOCCs on some lanes.
Own Premises Relief (OPR)
A UK excise duty procedure that allows eligible businesses to hold excise goods (such as alcohol or tobacco) on their own premises without paying excise duty until the goods are released for consumption. OPR is an alternative to using a licensed bonded warehouse for excise goods.
Per Diem
A daily charge. In freight, per diem most commonly refers to the daily detention charge levied by a shipping line for each day a container is kept beyond the free time period outside the port. Per diem rates are set in the carrier’s tariff and often increase in tiers over time.
Packing List
A document prepared by the shipper listing the contents of a shipment in detail, including carton numbers, item descriptions, quantities, weights, and dimensions. The packing list supports the commercial invoice and is used by customs and the consignee to verify the shipment. It is a required document in almost every international trade transaction.
Proof of Delivery (POD)
A document or electronic confirmation signed by the consignee (or their representative) confirming that the goods have been received in the stated condition. POD is used to close out a freight transaction and trigger final invoicing. In road freight, the signed CMR note often serves as the POD.
Port of Loading (POL)
The port where cargo is loaded onto the vessel. Also written as port of origin. The POL appears on the Bill of Lading and is used to determine the origin of the shipment for transit time and freight rate calculations.
Port of Discharge (POD)
The port where cargo is unloaded from the vessel. Note that POD is used for both Port of Discharge and Proof of Delivery; context determines which is meant. The port of discharge appears on the Bill of Lading alongside the port of loading.
Proforma Invoice
A preliminary invoice issued by a seller to a buyer before the goods are shipped. A proforma invoice is not a demand for payment. It sets out the expected price, quantity, and terms. Buyers use proforma invoices to arrange finance, letters of credit, or import licences.
Reefer
A refrigerated container used to transport temperature-sensitive cargo, including fresh produce, meat, dairy, pharmaceuticals, and chemicals. Reefers maintain a set temperature range throughout the journey and require power plugs at the port and on the vessel. Reefer freight rates are higher than standard dry container rates.
Registered Exporter (REX)
A system that allows approved exporters to self-certify the preferential origin of their goods using a Statement on Origin on a commercial invoice or other document. REX has replaced the EUR.1 certificate system for many UK and EU preferential trade agreements. Businesses must register with their customs authority to use REX.
Rules of Origin (RoO)
The criteria used to determine the country of origin of a product for trade agreement purposes. Rules of Origin define how much processing or manufacturing must take place in a country for goods to qualify as originating there. Under the UK–EU Trade and Cooperation Agreement (TCA), goods must meet specific RoO to qualify for zero tariffs. Getting RoO wrong can result in unexpected duty bills.
Simplified Customs Declaration Procedure (SCDP)
A UK customs procedure that allows authorised importers to make a simplified frontier declaration at the point of entry, followed by a supplementary declaration to HMRC at a later date, usually within the same calendar month. SCDP can improve cash flow and reduce port delays for regular importers. See our full guide to SCDP.
Safety Data Sheet (SDS)
A document required for hazardous chemical products under UK REACH and COSHH regulations. The SDS provides information on the substance’s properties, hazards, handling requirements, and emergency procedures. Customs may require an SDS for dangerous goods shipments. Also known as a Material Safety Data Sheet (MSDS).
Shipper’s Letter of Instruction (SLI)
A document provided by the shipper to the freight forwarder, setting out all the details needed to book and document the shipment, including commodity, weight, dimensions, Incoterm, destination, and any special handling requirements. The SLI is the starting point for the forwarder’s work on each shipment.
Shipper
The person or company that sends or consigns goods for transport. On a Bill of Lading, the shipper is named as the party who has contracted with the carrier to move the goods. In practice, the shipper is usually the exporter or seller, though under some Incoterms the buyer may control the freight booking.
Spot Rate
A one-off freight rate quoted by a carrier or broker for a specific shipment, valid for a short period (often 24–72 hours). Spot rates fluctuate with market supply and demand. They can be lower or higher than contract rates depending on current capacity levels and trade lane conditions.
Statement on Origin
A declaration made by an exporter on a commercial invoice (or other commercial document) confirming that goods meet the preferential origin rules for a specific trade agreement. Under the UK–EU TCA, exporters with annual exports above a threshold must be REX-registered to make this statement.
T1 Transit Document
A customs transit document used to move non-EU goods across the EU (or non-UK goods across the UK) without paying import duties at each border. The T1 suspends duty until the goods reach their declared destination or are cleared through customs. UK goods moving in transit through EU territory must travel under T1 status.
Trade and Cooperation Agreement (TCA)
The trade deal between the UK and the EU that came into force on 1 January 2021. The TCA provides for zero tariffs on goods traded between the UK and EU, but only if those goods meet the Rules of Origin requirements. The TCA also covers services, fisheries, and security cooperation, but does not eliminate customs formalities.
Twenty-Foot Equivalent Unit (TEU)
The standard unit used to measure container capacity. One TEU equals one 20-foot standard container. A 40-foot container equals 2 TEU (also called 1 FEU, Forty-Foot Equivalent Unit). Vessel capacity, port throughput, and freight volumes are all measured in TEU globally.
Forty-Foot Equivalent Unit (FEU)
One FEU equals one 40-foot container, or 2 TEU. Most ocean freight is now carried in 40-foot containers, which offer more cargo space per unit of cost than 20-foot boxes. High-cube 40-foot containers (9ft 6in tall) are increasingly the industry standard.
Transit
The movement of goods through a country or customs territory without those goods being cleared for domestic consumption. Goods in transit are covered by a customs transit procedure (such as T1 or NCTS) that suspends duty. Transit is also used more generally to describe the overall journey from origin to destination.
Transit Time
The number of days between cargo departure and arrival at destination. Transit times vary significantly by trade lane, shipping line, and mode of transport. Ocean freight from China to the UK typically takes 25–35 days. Air freight on the same lane is 3–7 days. Transit time does not include time at the CFS, port dwell, or last-mile delivery.
UN Number
A four-digit number assigned by the United Nations to dangerous goods and hazardous substances. UN numbers are used globally to identify hazardous materials in transport documentation, labelling, and emergency response. For example, UN 1203 is petrol. Any shipment of dangerous goods must include the correct UN number on the shipping documents and packaging.
Value Added Tax (VAT)
A consumption tax applied to goods and services in the UK and most other countries. Import VAT is charged on goods entering the UK, calculated on the customs value plus duty plus any other import charges. UK VAT-registered businesses can usually reclaim import VAT through their VAT return. Since 2021, the UK’s Postponed VAT Accounting (PVA) scheme allows most importers to account for import VAT on their VAT return rather than paying it upfront at the border.
Verified Gross Mass (VGM)
The verified total weight of a packed container, including the cargo, packaging, and the container itself (tare weight). Under the SOLAS convention, all containers must have a VGM declaration submitted before they are loaded onto a vessel. You can verify the VGM either by weighing the packed container on a calibrated scale or by calculating the sum of all individual item weights plus tare weight.
Warehouse
A building used for storing goods. In an international trade context, warehouses can be bonded (duty-suspended), customs controlled, or general commercial facilities. Different types serve different purposes: bonded warehouses for duty suspension, customs warehouses for non-UK goods awaiting clearance, and open warehouses for cleared goods.
Weight/Measure (W/M)
A freight pricing method used in ocean and air freight where the carrier charges whichever is greater, the actual weight or the volumetric (dimensional) weight. Volumetric weight is calculated by dividing the volume (in CBM) by a conversion factor. For ocean LCL freight, 1 CBM is typically treated as equivalent to 1,000 kg. For air freight, 1 CBM is usually equivalent to 167 kg or 200 kg depending on the carrier.
World Customs Organisation (WCO)
The intergovernmental body responsible for developing and maintaining the Harmonised System of tariff classification. The WCO sets global standards for customs procedures, trade facilitation, and cross-border enforcement. HMRC in the UK implements WCO standards through UK trade tariff legislation and customs policy.
Learning shipping terminology takes time. There are a few principles that will help you get there faster.
Terminology follows process. The best way to learn what terms mean is to follow a real shipment from order placement to delivery and look up each document and charge as it appears. Theory sticks better when you can attach it to a real transaction.
Incoterms underpin everything. Many of the most important conversations in international trade, about who pays freight, who arranges insurance, who handles customs, come back to Incoterms. Make sure you understand at least FOB, FCA, CIF, DAP, and DDP in depth.
Customs rules change. Since Brexit, the UK operates its own customs regime, separate from the EU. HMRC updates procedures regularly. Always check the current HMRC guidance for commodity codes, duty rates, and procedures rather than relying solely on older references.
Free time is money. Demurrage and detention charges can easily exceed the value of the freight on a slow-moving shipment. Always know your free time allowance and plan container returns and collections around it.
Documents matter. A missing packing list, a wrong HS code on a customs entry, or an incorrectly endorsed Bill of Lading can hold up a shipment for days and trigger fines. Take the time to understand what each document does and who is responsible for producing it.
This glossary gives you a working definition of each term. For deeper reading, explore these guides on the site:
Last updated: June 2026. This glossary is for general information. Always seek professional advice for specific customs, legal, or tax matters.
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