Contact Information
Location
Aver Logistics Ltd
Chenies Manor House
Chenies
Buckinghamshire
WD3 6EP
Knowledge Base
Freight & shipping glossary
Plain-English definitions of the freight, shipping and customs terms you’ll come across when moving cargo.
AEO (Authorised Economic Operator)
A trusted-trader status granted by customs authorities. AEO businesses benefit from simplified procedures and faster clearance, recognising reliable, compliant supply-chain operators.
Air Waybill (AWB)
The transport document for an air freight shipment. It acts as a receipt for the goods and a contract of carriage between shipper and airline, but is not a document of title.
Bill of Lading (B/L)
The key ocean freight document. It serves as a receipt for the cargo, evidence of the contract of carriage and a document of title that can be used to claim the goods.
Bonded Warehouse
A secure facility where imported goods can be stored without duty and VAT being paid, until they are released for sale or re-exported.
CBM (Cubic Metre)
The standard unit for measuring cargo volume — one metre by one metre by one metre. It is used to calculate freight space and cost.
Chargeable Weight
The weight a shipment is billed on — the greater of its actual (gross) weight and its volumetric weight. Light, bulky cargo is usually charged on volume.
CIF (Cost, Insurance and Freight)
An Incoterm where the seller pays the cost, insurance and freight to the destination port. Risk transfers to the buyer once the goods are loaded.
Commercial Invoice
The seller’s bill for the goods. Customs use it to assess duty and VAT, so it must accurately state the value, description and origin of the cargo.
Consignee
The party named to receive a shipment — usually the importer or buyer.
Consignor / Shipper
The party sending a shipment — usually the exporter or seller.
Customs Clearance
The process of getting goods through customs: submitting declarations, classifying the cargo and paying any duty and VAT due.
Customs Declaration
The formal statement submitted to customs detailing imported or exported goods — their value, classification and origin.
Customs Duty
A tax on imported goods, charged as a percentage of their customs value. The rate depends on the commodity’s HS code and country of origin.
DAP (Delivered At Place)
An Incoterm where the seller delivers the goods to a named destination, ready for unloading. The buyer handles import clearance, duty and VAT.
DDP (Delivered Duty Paid)
An Incoterm where the seller takes on maximum responsibility, delivering the goods cleared for import with all duties and taxes paid.
Demurrage
A charge applied when a container stays inside the port or terminal longer than the allowed free time.
Detention
A charge applied when a container is kept outside the port — for example at your premises — beyond the allowed free time.
EORI Number
An Economic Operators Registration and Identification number. Businesses need one to import or export goods to or from the UK.
EXW (Ex Works)
An Incoterm where the buyer takes on almost all responsibility, collecting the goods from the seller’s premises and arranging all transport and clearance.
FCL (Full Container Load)
A shipment that fills, or is booked as, an entire container. Best value once you have enough cargo to justify a full container.
FOB (Free On Board)
A common Incoterm where the seller delivers the goods onto the vessel. Risk and cost then transfer to the buyer for the main carriage.
Freight Forwarder
A company that organises the shipment of goods on behalf of importers and exporters — arranging transport, documentation and customs clearance.
Gross Weight
The total weight of a shipment including the goods, packaging and pallet.
Groupage
Combining shipments from several customers into one load to share the cost — the road and air equivalent of LCL.
HS Code (Commodity Code)
An internationally standardised number that classifies a product for customs. It determines the duty rate and any import controls that apply.
Import VAT
Value Added Tax charged on goods imported into the UK, calculated on the customs value plus duty and freight.
Incoterms
A set of international trade rules defining who is responsible for cost, risk and tasks at each stage of a shipment — for example EXW, FOB, CIF, DAP and DDP.
LCL (Less than Container Load)
A shipment too small to fill a container, so it shares container space with other cargo. You pay only for the space you use.
Lead Time
The total time from placing an order to receiving the goods, including production and freight transit.
Packing List
A document detailing the contents, weights and dimensions of each package in a shipment, used for handling and customs.
Port of Discharge
The port where cargo is unloaded from the vessel at destination.
Port of Loading
The port where cargo is loaded onto the vessel for the main sea journey.
Reefer
A refrigerated container used to transport temperature-controlled cargo such as food and pharmaceuticals.
TEU (Twenty-foot Equivalent Unit)
The standard unit for measuring container capacity. One 20ft container is 1 TEU; a 40ft container is 2 TEU.
Transit Time
The time a shipment takes to travel from origin to destination — quoted either port-to-port or full door-to-door.
Volumetric Weight
A weight calculated from a shipment’s size rather than its actual weight, used by carriers to price light, bulky cargo fairly.
No terms match your search — try another word.
Still have a freight question?
Our team is happy to explain anything — and to give you a clear, jargon-free quote.