Glossary
Shipping terms, in plain English
Freight has a vocabulary of its own, and none of it is obvious the first time. Here is what each term means and why it affects what you pay — no prior knowledge assumed.
AEOAuthorised Economic Operator
A customs accreditation showing a business meets recognised standards for security and compliance, which can mean fewer inspections and faster clearance.
AWBAir Waybill
The contract and receipt for an air shipment, and the number you track it by — the air-freight equivalent of a bill of lading.
BAFBunker Adjustment Factor
A fuel surcharge carriers add on top of the freight rate. It moves with the oil price, which is why a quote is held for a limited period.
CAFCurrency Adjustment Factor
A surcharge covering exchange-rate movement between the currency the carrier prices in and the one you are billed in.
CBMcubic metre
The volume of your cargo — length × width × height in metres. Shared-container and air shipments are priced by it, so a 1.2m × 0.8m × 1m pallet is 0.96 CBM.
chargeable weight
Air freight is billed on whichever is greater: what the cargo actually weighs, or what its size implies. Light, bulky goods are charged on volume.
cross-trade
A shipment between two countries where neither end is our own — China to the United States, say. We arrange it through our overseas partner network.
demurrage
A daily charge that starts once your container has sat at the destination port beyond its free days. Clearing customs promptly is what avoids it.
EORIEconomic Operator Registration and Identification number
The reference customs uses to identify a business importing or exporting. You need one to clear goods — we can tell you how to register if you do not have one.
FCLFull Container Load
You have exclusive use of a whole container, priced per container however full it is. Usually the better value once your cargo passes roughly 15 CBM.
groupage
Consolidating several shippers' cargo into one shared container. The same thing as LCL, seen from the operator's side.
Incoterms
The standard three-letter codes in a sales contract that fix who pays for each leg of a shipment and where the risk passes from seller to buyer.
ISFImporter Security Filing
A data filing US customs requires before a vessel loads for the United States. Missing the deadline carries a penalty, so it is prepared well ahead of sailing.
LCLLess than Container Load
Your cargo shares a container with other shippers' goods and you pay only for the space it takes, priced per cubic metre.
THCTerminal Handling Charge
What the port charges to move your container between the quay and the vessel. It applies at both ends and is billed separately from the sea freight.
UN/LOCODEUnited Nations Code for Trade and Transport Locations
The standard five-letter code for a port or terminal — two letters for the country, three for the place. GBFXT is Felixstowe, United Kingdom.
W/Mweight or measurement
Shared-container cargo is charged on whichever is greater: its volume in cubic metres, or its weight in tonnes. Dense cargo pays on weight, bulky cargo on volume.
Still unsure about something on a quote? Ask us — First Base Freight would rather explain a term than have you guess at what you are agreeing to.
Clear on the terms? Get a quote.
Any country to any country, import or export — send us the origin, destination and cargo details and we'll come back with a competitive rate within one business day.