Free Reference Resource

The UK Freight & Logistics Glossary

Plain-English definitions of 100+ freight, customs, airfreight and supply chain terms — written by a UK freight forwarder with 32 years of industry experience. Plus 18 deep-dive guides and 5 free UK calculators.

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110+ terms across airfreight, sea freight, customs & logistics — plus 18 dedicated guides and 5 free calculators

How these terms show up in real shipments: a supplier quote might say FOB Ningbo, the airline paperwork might show a MAWB and HAWB, the UK entry might depend on a commodity code and customs value, and the final invoice may include THC, demurrage or delivery charges. Use the glossary to connect the word to the shipment stage, then follow the deeper guides for the terms that affect cost, risk or customs liability.
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Freight glossary A-Z

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A
Air Waybill (AWB)
Airfreight · Documentation

A non-negotiable transport document issued by or on behalf of a carrier for the carriage of cargo by air. It serves as a receipt for goods, a contract of carriage, and a customs declaration. Unlike a Bill of Lading, an AWB is not a document of title.

Shipment example: Example: if an airline asks for the AWB number, quote the number on the air transport document, not the supplier invoice or purchase order.

See also: Master Air Waybill (MAWB), House Air Waybill (HAWB)

Agent (Freight Agent)
General · Roles

A company or individual authorised to act on behalf of a shipper or consignee to arrange the transportation of goods. Freight agents do not typically take title to the goods; they facilitate the movement on behalf of their principal.

Arrival Notice
Sea Freight · Documentation

A notification sent by the carrier or their agent to the consignee (and/or notify party) advising that the shipment has arrived or is due to arrive at the destination port. It typically includes the vessel name, voyage number, estimated arrival date, and any charges due.

Shipment example: Example: treat the arrival notice as the trigger to prepare customs clearance, delivery instructions and payment of destination charges before free time runs out.

Ad Valorem
Customs · Duties

Latin for "according to value." A type of customs duty or freight rate calculated as a percentage of the declared value of the goods, rather than by weight or volume. For example, a 5% ad valorem duty on goods valued at £10,000 would be £500.

AEO — Authorised Economic Operator
Customs · UK Trade

A status granted by HMRC to businesses that demonstrate high standards of customs compliance, security, and financial solvency. AEO benefits include faster customs processing, fewer physical and documentary checks, and mutual recognition with partner countries (US, Japan, Switzerland, others). Two types: AEOC (Customs Simplifications) and AEOS (Security and Safety). Application takes 6–12 months but materially reduces ongoing customs friction for high-volume importers.

ATA Carnet
Customs · Temporary Movement

An international customs document allowing goods to be temporarily imported into a country without paying duty or VAT, on condition they are re-exported within 12 months. Common uses: exhibition stands, commercial samples, professional equipment (cameras, broadcasting gear, musical instruments, surgical tools). Issued in the UK by the London Chamber of Commerce and Industry (LCCI). Accepted in 80+ countries under the ATA Convention.

Anti-dumping Duty
Customs · Duties

An additional customs duty applied to imports deemed to be "dumped" — sold below fair value in the exporting country, causing material injury to UK industry. UK anti-dumping rates are set by the Trade Remedies Authority and can be 30%+ on top of standard duty. Currently applied to bicycles, ceramic tableware, certain fasteners, and steel products from China. Always check the UK Trade Tariff measures section for your commodity code and origin combination.

Apostille / Document Legalisation
General · Documentation

Authentication of UK commercial documents for legal use abroad. An apostille (Hague Convention 1961) is accepted by ~120 countries — issued in the UK by the FCDO Legalisation Office. For non-Hague countries, full legalisation via the destination embassy is required. Common for Certificates of Origin, commercial invoices, and powers of attorney destined for Middle Eastern and African markets.

B
Bill of Lading (B/L)
Sea Freight · Documentation

A legal document issued by a carrier to a shipper acknowledging receipt of cargo for shipment. Unlike an AWB, a negotiable Bill of Lading is a document of title — whoever holds the original can claim the goods. It also serves as a contract of carriage and a receipt.

Shipment example: Example: if originals are still with the bank, a UK port can have the container on the quay but the buyer still cannot obtain release.

See also: Master Bill of Lading, House Bill of Lading, Sea Waybill

Bonded Warehouse
Customs · Storage

A secure storage facility, approved by HMRC, where dutiable goods can be stored without payment of import duties until the goods are removed for home use, re-exported, or transferred to another customs procedure. Common for wines, spirits, tobacco and high-value goods.

Shipment example: Example: an alcohol importer may hold stock under bond and only pay duty and VAT when cases are released for UK sale.

Breakbulk
Sea Freight · Cargo Types

Cargo that is loaded individually onto a vessel, rather than in containers. This includes items such as steel coils, timber, machinery, and project cargo that are too large or oddly shaped to fit in standard containers.

BAF — Bunker Adjustment Factor
Sea Freight · Surcharges

A sea freight surcharge compensating the shipping line for fluctuations in marine fuel (bunker) prices. Usually quoted per TEU, sometimes as a percentage of the base freight. Updated monthly by most lines. Since the IMO 2020 low-sulphur fuel rules, BAF has been structurally higher than the pre-2020 baseline.

Booking Confirmation
General · Documentation

The document issued by a carrier (or freight forwarder) confirming that space has been reserved for a specific shipment on a named vessel, flight or vehicle. Includes the booking reference, vessel/flight number, cut-off times, sailing/departure date, and agreed rates. The starting point for every freight movement — without a confirmed booking, your cargo has no allocated capacity.

Shipment example: Example: a booking confirmation normally gives the cargo cut-off; missing that cut-off can roll the container to the next sailing.

C
CIF – Cost, Insurance & Freight
Incoterms · Sea Freight

An Incoterm under which the seller pays the costs and freight to deliver goods to the destination port, and also procures marine insurance against the buyer's risk of loss or damage. Risk transfers to the buyer once goods are on board the vessel at origin.

Shipment example: Example: a CIF Felixstowe price may include ocean freight and basic insurance, but UK destination charges and customs costs can still be payable by the buyer.

See also: Incoterms, FOB, CIP

Customs Entry / Import Declaration
Customs · UK Trade

A formal declaration submitted to HMRC (via the Customs Declaration Service, CDS) giving details of goods being imported into the UK. It is used to calculate and collect import duties and VAT. Most commercial imports require a full import declaration.

Consolidation (LCL / Groupage)
Sea Freight · Airfreight

The process of combining multiple small shipments from different shippers into a single container or ULD for transport. Consolidation allows smaller shippers to benefit from lower per-unit freight rates. The opposite is FCL (Full Container Load) or a dedicated charter.

Chargeable Weight
Airfreight · Rating

The weight used by an airline or freight forwarder to calculate the freight charge. It is the greater of the actual gross weight and the volumetric weight (calculated as Length × Width × Height in cm ÷ 6000). This prevents shippers gaming rates with bulky light cargo.

CBM — Cubic Metre
Sea Freight · Measurement

The standard unit of volume in sea freight, equal to one cubic metre (1 m × 1 m × 1 m). Used to quote LCL freight rates and measure container utilisation. Calculated as Length × Width × Height in metres, or (L × W × H in cm) ÷ 1,000,000. For LCL pricing, 1 CBM = 1 tonne chargeable weight.

See also: CBM Calculator

CDS — Customs Declaration Service
Customs · UK Systems

HMRC's current customs IT platform for lodging UK import and export declarations, replacing the legacy CHIEF system (retired for imports in 2023). CDS uses a structured data format based on the EU's Union Customs Code. Accessed by customs brokers and freight forwarders via approved third-party software — most importers never interact with CDS directly.

Certificate of Origin (CoO)
Customs · Documentation

A document certifying the country where goods were manufactured or substantially transformed. Required in many trade lanes to qualify for preferential duty rates under trade agreements (e.g. UK–EU TCA, UK–Japan EPA). Issued by chambers of commerce, government bodies, or self-certified by approved exporters. Format varies by trade agreement.

Charter (Air Charter)
Airfreight · Operations

The exclusive booking of an entire aircraft for a single shipment or customer, outside of scheduled airline services. Used for oversized, time-critical, or exceptionally high-volume consignments — humanitarian aid, automotive production parts, full aircraft loads of pharmaceuticals. Rates negotiated directly with aircraft operators. Cost: typically £200,000–£500,000+ depending on aircraft type and route.

Charter Party Bill of Lading
Sea Freight · Documentation

A B/L issued under a charter party (a contract for hire of an entire vessel). Almost exclusively seen in bulk and tanker trades — grain, oil, ore — never in containerised commerce. Banks generally refuse charter party B/Ls under letters of credit because they reference an underlying charter party contract the bank doesn't have.

CMR Note
Road Freight · Documentation

The international consignment note used for road freight under the CMR Convention (Convention on the Contract for the International Carriage of Goods by Road, 1956). Functions like a Sea Waybill or AWB for road movements — receipt for the goods, contract of carriage, but not a document of title. Standard for UK–EU and pan-European road freight.

Container Yard (CY)
Sea Freight · Operations

The area within a port terminal (or off-port depot) where containers are stored, sorted, and made ready for loading or collection. "CY/CY" on a B/L indicates the shipper delivers to the origin container yard and the consignee collects from the destination container yard — the standard arrangement for FCL shipments.

Customs Broker
Customs · Roles

A licensed third party authorised to lodge customs declarations with HMRC on behalf of an importer or exporter. In the UK, customs brokers are typically part of freight forwarders' service offerings, though many operate standalone. They take operational responsibility for accurate declarations but the legal liability remains with the importer of record.

Customs Warehouse
Customs · Procedures

An HMRC-approved facility where non-UK goods can be stored without paying import duty or VAT until they are released into free circulation, re-exported, or moved to another customs procedure. Two types: public (used by multiple traders) and private (single trader). Widely used for wines, spirits, tobacco, and high-value goods where cash flow management matters. Synonymous with "bonded warehouse".

D
DAP – Delivered at Place
Incoterms · All Modes

An Incoterm where the seller is responsible for delivering goods to the named place at destination, ready for unloading. The seller bears all risk and cost of transport to that point but does not pay import duties or taxes — these remain the buyer's responsibility.

Demurrage & Detention
Sea Freight · Charges

Demurrage is a charge levied by a shipping line when a container is held at the port beyond the free days allowed before collection. Detention is charged when the container is held outside the port (e.g. at a warehouse) beyond the allowed free days. Both can accumulate rapidly.

DDU – Delivered Duty Unpaid
Incoterms · Legacy

A legacy Incoterm (replaced by DAP in Incoterms 2010) where the seller delivers goods to the destination country, but the buyer is responsible for paying import duties and taxes. The term is still commonly used in older contracts and informally by traders.

Dangerous Goods (DG / HAZMAT)
All Modes · Compliance

Substances or articles capable of posing a risk to health, safety, property or the environment when transported. Classified by the UN into 9 hazard classes: 1 Explosives, 2 Gases, 3 Flammable liquids, 4 Flammable solids, 5 Oxidisers, 6 Toxic, 7 Radioactive, 8 Corrosives, 9 Miscellaneous (including lithium batteries, dry ice). Each mode has its own DG regulations: IATA DGR for air, IMDG Code for sea, ADR for road. Failing to declare is a criminal offence.

Detention
Sea Freight · Charges

A daily charge levied by a shipping line when a container is held outside the port — typically at the consignee's warehouse — beyond the agreed free days for empty return. Distinct from demurrage (which applies inside the port). Detention escalates in tiers similar to demurrage. Some lines combine both into a single "combined free time" tariff.

See also: Demurrage explained

Duty Deferment Account (DDA)
Customs · UK Trade

An HMRC-authorised account allowing importers (or their brokers) to defer payment of customs duty until the 15th of the following month, settled via a single direct debit. Requires a Customs Comprehensive Guarantee (CCG) or, under simplified rules introduced in 2020, financial standing as evidenced by HMRC. Particularly useful for high-volume importers. Often used alongside PVA — DDA for duty, PVA for VAT.

Deferred Duty
Customs · UK Trade

UK customs duty payment that is postponed via a Duty Deferment Account rather than paid at the point of import. Smooths cash flow by aggregating monthly duty into one payment on the 15th of the following month. Available to UK-established businesses with appropriate financial standing or a Customs Comprehensive Guarantee.

E
EXW – Ex Works
Incoterms · All Modes

The Incoterm that places the maximum obligation on the buyer. The seller makes goods available at their premises (factory, warehouse, etc.) and the buyer is responsible for all costs and risks from that point — including loading, export clearance, international freight, and import duties.

ETD / ETA
General · Shipping

ETD (Estimated Time of Departure) and ETA (Estimated Time of Arrival) are the expected departure and arrival times for a vessel, aircraft, or vehicle. These are estimates based on schedules and can change due to weather, congestion, or operational delays.

EORI Number
Customs · UK Trade

Economic Operator Registration and Identification number — the unique customs identifier needed by any UK business importing or exporting goods. UK EORI numbers start with "GB" followed by your VAT number (or a unique HMRC-assigned number for non-VAT-registered businesses) plus 000. Free to apply via gov.uk; takes a few working days. No EORI = no customs declaration possible.

ENS — Entry Summary Declaration
Customs · Pre-arrival

A safety and security declaration lodged with UK customs before goods physically arrive at the UK border, allowing pre-arrival risk assessment. Required for most non-UK origin shipments by sea, air, road and rail. Time limits vary by mode: deep-sea container 24 hours before loading at origin; short-sea 2 hours before arrival; air typically by wheels-up of the inbound flight. Normally lodged by the carrier or freight forwarder.

EUR1 Movement Certificate
Customs · Documentation

A movement certificate proving the origin of goods, used under specific trade agreements to claim preferential (reduced or zero) duty rates. Issued by the exporter and endorsed by the customs authority of the exporting country. Under the UK-EU Trade and Cooperation Agreement, EUR1 has largely been replaced by a self-declared "statement on origin", but EUR1 is still required for some trade agreements (notably with certain Mediterranean countries under the PEM Convention).

Excise Duty
Customs · UK Tax

A specific UK tax applied to certain categories of goods regardless of where they're produced — primarily alcohol, tobacco, hydrocarbon oils (fuel), and gambling. Excise duty is separate from customs duty and applies to both UK-produced and imported goods. Often the largest cost component in importing wine, spirits, or tobacco. Goods can be held under "duty suspension" in an HMRC-approved excise warehouse.

Export Declaration
Customs · UK Trade

A declaration submitted to HMRC for goods being exported from the UK. Required for goods leaving to non-GB destinations (including the EU post-Brexit, in most cases). Used to obtain proof of export for VAT zero-rating, comply with export controls, and provide trade statistics. Typically lodged by the exporter's customs broker or freight forwarder via CDS.

F
FOB – Free On Board
Incoterms · Sea Freight

An Incoterm where the seller delivers goods on board the vessel at the named port of shipment, cleared for export. Risk transfers from seller to buyer at this point. The buyer then contracts and pays for the main carriage (ocean freight) and insurance. Widely used for sea freight transactions.

Shipment example: Example: under FOB Shanghai, the seller gets the goods on board; the UK buyer normally controls ocean freight, insurance, destination charges and customs clearance.

See also: CIF, CFR, Incoterms

Freight Forwarder
General · Roles

An intermediary that organises the transportation of goods on behalf of shippers. Freight forwarders arrange transport across multiple modes, handle documentation (AWBs, Bills of Lading), book space with carriers, and coordinate customs clearance. They typically earn revenue through service fees and margin on freight rates.

FCA – Free Carrier
Incoterms · All Modes

An Incoterm where the seller delivers the goods to a named place (e.g. their premises, a carrier's terminal), cleared for export. Risk transfers once the goods are handed to the first carrier. FCA is often preferred over EXW and FOB for containerised sea freight as it better reflects modern logistics practice.

FCL – Full Container Load
Sea Freight · Container

A shipment that fills an entire container, booked exclusively by one shipper. FCL is typically more cost-effective than LCL for larger volumes and offers faster transit times as the container moves directly to destination without consolidation/deconsolidation.

See also: LCL

FAS – Free Alongside Ship
Incoterms · Sea Freight

A sea-freight Incoterm where the seller delivers goods alongside the vessel at the named port of shipment. Risk transfers when goods are placed alongside (on the quay or in a lighter). The buyer handles loading and all subsequent costs. Suitable for bulk or breakbulk cargo where the goods are loaded by the vessel's own gear, not for containers.

See also: Incoterms 2020 Guide

Free Time
Sea Freight · Charges

The number of calendar days a container may remain at the port (and/or at the consignee's premises) before demurrage and detention charges start to accrue. Standard UK import free time: 5–7 days for dry containers, 3–5 days for reefer. Some lines combine port + off-port free time into a single pool of 10–14 "combined" days. Negotiable on regular contracts.

See also: Demurrage explained

G
Gross Weight
General · Cargo

The total weight of a shipment including the goods, packaging, and pallet or skid. Gross weight is distinct from net weight (goods only) and tare weight (packaging/container only). It is used in freight calculations, weight limits, and customs declarations.

Groupage
Road Freight · Sea Freight

The process of combining multiple smaller consignments from different customers into a single vehicle or container for transport. Common in European road freight. Also used interchangeably with LCL (Less than Container Load) in sea freight contexts.

General Average
Sea Freight · Marine Law

An ancient principle of maritime law where all parties with cargo on a vessel share proportionally in any losses voluntarily incurred to save the vessel and remaining cargo (e.g. jettisoning cargo in a storm, or extraordinary expenses in port after a casualty). General Average is declared by the shipowner and managed by an adjuster; cargo owners must post security (usually via marine cargo insurance) before goods are released. A real reason to carry comprehensive marine cargo insurance.

H
HAWB – House Air Waybill
Airfreight · Documentation

An Air Waybill issued by a freight forwarder or consolidator (as opposed to the airline). It covers the individual shipper's goods within a consolidated shipment. The forwarder holds a Master Air Waybill (MAWB) from the airline, and issues individual HAWBs to each shipper within the consolidation.

See also: AWB, MAWB

HS Code / Commodity Code
Customs · Classification

A standardised numerical code used internationally to classify traded goods. The Harmonised System (HS) is maintained by the World Customs Organisation. UK commodity codes have 10 digits and are used on import/export declarations to determine applicable duty rates, VAT, and restrictions. Getting the right code is a legal obligation.

See also: UK import duty & commodity codes

HAZMAT
All Modes · Compliance

Hazardous Materials — US/global term synonymous with Dangerous Goods (DG). Subject to mode-specific regulations: IATA DGR for air, IMDG Code for sea, ADR for road, RID for rail. Handling, packaging, labelling, documentation, and personnel training requirements apply across the supply chain. See Dangerous Goods entry for the 9-class UN classification.

HBL — House Bill of Lading
Sea Freight · Documentation

A Bill of Lading issued by a freight forwarder to an individual shipper, covering that shipper's specific cargo within a larger consolidated shipment (or as a forwarder-managed FCL). The forwarder holds a Master Bill of Lading (MBL) from the shipping line. For UK importers, the HBL is the operational document — your tracking number and contract with the forwarder.

See also: Bill of Lading types

I
Incoterms
General · Trade Terms

A set of 11 internationally recognised trade terms published by the International Chamber of Commerce (ICC). Incoterms define the responsibilities of buyers and sellers for the delivery of goods under sales contracts — including who pays freight, who arranges insurance, and where risk transfers. The current version is Incoterms 2020.

Import VAT
Customs · UK Tax

VAT charged on goods imported into the UK, typically at the standard rate of 20%. Since January 2021, UK VAT-registered businesses can use Postponed VAT Accounting (PVA) to account for import VAT on their VAT return rather than paying it upfront at the border, which improves cash flow.

See also: Postponed VAT (PVA)

ICS2 — Import Control System 2
Customs · Pre-arrival

The EU's upgraded pre-arrival safety and security data system, replacing the original ICS in phases from 2021. ICS2 requires more detailed cargo data (HS code to 6 digits, accurate goods description, consignor/consignee details) to be lodged earlier in the supply chain. Although a Brexit-relevant EU system, ICS2 affects UK exporters sending goods into the EU and UK forwarders handling EU-bound cargo via UK ports.

Import Declaration
Customs · UK Trade

A formal declaration submitted to HMRC (via the Customs Declaration Service) declaring goods being imported into the UK. Records the commodity code, customs value, country of origin, and applicable duty/VAT. Most commercial imports require a full declaration, lodged before or at the time of import. A customs broker or freight forwarder typically handles this on the importer's behalf, but legal responsibility for accuracy stays with the importer of record.

Inland Container Depot (ICD)
Sea Freight · Operations

A container handling facility located inland (away from a seaport), providing container storage, customs clearance, and rail/road connection to the port. Common in mainland Europe; less established in the UK, though some UK facilities (e.g. Birmingham Intermodal Freight Terminal, Daventry) provide similar functions. Reduces port congestion and offers regional importers shorter trucking legs.

Inward Processing (IP)
Customs · Procedures

A customs procedure allowing goods to be imported into the UK for processing, manufacturing or repair, and then re-exported without paying import duty on the input materials. If the finished goods are released into the UK market instead of being exported, duties become payable. Requires prior HMRC authorisation. Useful for UK manufacturers using imported raw materials for export markets.

IPAFFS
Customs · UK Trade

Import of Products, Animals, Food and Feed System — the UK's pre-notification platform for sanitary and phytosanitary (SPS) imports. Required for live animals, animal products, plants and plant products, and certain food/feed imports. Pre-notification must be lodged before the goods arrive; failure means the goods can be refused at the border. Operated by Defra/APHA.

J
Just-in-Time (JIT)
Supply Chain · Inventory

A supply chain methodology where inventory is ordered to arrive exactly when needed for production or sale, rather than held in stock. JIT minimises warehousing cost and tied-up working capital, but exposes the business to transit delays and supply shocks. Heavily dependent on reliable freight transit times — one delayed sea shipment can halt a JIT production line.

Jet Fuel Surcharge
Airfreight · Charges

An airfreight surcharge (more commonly called FSC, Fuel Surcharge, or FAF — Fuel Adjustment Factor) applied on top of the base freight rate to recover fluctuations in jet fuel prices. Usually the largest single surcharge on an airfreight quote, ranging from $0.50 to $2.50 per kilogram depending on market conditions and trade lane.

K
Knot
Sea Freight · Vessel Operations

A unit of speed equal to one nautical mile per hour (approximately 1.852 km/h or 1.151 mph). Used universally in maritime and aviation contexts. A modern container vessel typically cruises at 18–22 knots, though "slow steaming" at 14–17 knots has been adopted on many lanes to reduce fuel consumption and emissions.

Kingpin
Road Freight · Equipment

The coupling pin on a semi-trailer that locks into the fifth wheel of a tractor unit, allowing the trailer to be towed. The kingpin setting (distance from the front of the trailer) is a regulated dimension affecting weight distribution and turning radius — relevant when matching trailers to specific tractor units, particularly for international road haulage between UK and EU.

L
LCL – Less than Container Load
Sea Freight · Container

A sea freight shipment that does not fill an entire container. The cargo is consolidated with other shippers' goods at a CFS (Container Freight Station) into a shared container. LCL rates are typically quoted per cubic metre (CBM) and suit smaller, less frequent shipments.

See also: FCL, Consolidation

LC — Letter of Credit
General · Trade Finance

A bank guarantee of payment used in international trade. The buyer's bank promises to pay the seller a specified amount on presentation of a defined set of documents (typically commercial invoice, packing list, B/L, insurance certificate, origin certificate). Used to mitigate payment risk in trade with unfamiliar partners or politically/financially uncertain markets. Governed by UCP 600. Requires very precise documentation — discrepancies allow the bank to refuse payment.

LDM — Loading Metre
Road Freight · Pricing

A unit of measurement used in European road groupage and full-trailer freight, representing 1 linear metre of trailer floor space at full width and standard height. Used to price part-loads where actual weight and volume don't reflect the trailer space occupied. Critical for pricing long, narrow cargo (e.g. timber, steel sections) that takes up floor space without filling the trailer.

LOI — Letter of Indemnity
Sea Freight · Documentation

A document by which one party indemnifies another against potential loss arising from a specific action. In sea freight, most commonly used when original Bills of Lading are unavailable at destination — the consignee provides an LOI (often backed by a bank guarantee) so the carrier will release goods without B/L presentation. Carriers dislike LOIs; processes are slow and expensive. Best avoided by using sea waybill or telex release instead.

M
MAWB – Master Air Waybill
Airfreight · Documentation

The Air Waybill issued by the airline to the freight forwarder or consolidator for the consolidated shipment. It covers the entire consignment on the aircraft. Individual shippers within the consolidation have their own House Air Waybills (HAWBs) issued by the forwarder.

See also: HAWB, AWB

Multimodal / Intermodal Transport
General · Logistics

The movement of goods using more than one mode of transport (e.g. road + rail + sea) under a single contract of carriage. Intermodal specifically refers to use of a standardised unit (e.g. container) that transfers between modes without the goods being rehandled.

Manifest
All Modes · Documentation

A document listing all consignments carried on a specific vessel, flight or vehicle, compiled by the carrier or its agent. Includes B/L or AWB numbers, shipper/consignee details, weights, descriptions. Provided to destination customs authorities for pre-arrival risk assessment (now largely electronic via ENS / ICS2). Discrepancies between the manifest and individual transport documents can hold up clearance.

MPIVS — Monthly Postponed Import VAT Statement
Customs · UK Tax

HMRC's monthly statement listing all imports for which the importer used Postponed VAT Accounting (PVA). Published around the 6th of each month via the importer's CDS dashboard. The MPIVS total is the figure to enter on the VAT return (Box 1 + Box 4) — it replaces the C79 certificate for PVA imports. Keep PDF copies for at least 6 years as VAT evidence.

See also: Postponed VAT (PVA)

N
Notify Party
Sea Freight · Documentation

A party named on a Bill of Lading or Air Waybill who is to be notified when the goods arrive at destination. This is often the buyer, their customs broker, or freight agent. The notify party is not necessarily the consignee and has no automatic legal rights over the goods.

Net Weight
General · Cargo

The weight of the goods alone, excluding packaging, pallets and container. Distinct from gross weight (goods + all packaging) and tare weight (packaging alone). Net weight is used in customs declarations for specific-duty goods (e.g. excise products charged per kg) and for some regulatory purposes. Gross weight is what's used for freight rating.

NVOCC — Non-Vessel Operating Common Carrier
Sea Freight · Roles

A freight forwarder that issues its own Bills of Lading, contractually acting as a carrier even though it doesn't own ships. NVOCCs typically aggregate cargo from multiple shippers and book space with the actual shipping line under their own master B/L. Most major international forwarders (DHL, Kuehne+Nagel, DSV, Expeditors) operate as NVOCCs in sea freight.

See also: Freight forwarder

O
Origin / Destination Charges
Freight Charges · General

Local charges applied at the port or airport of origin or destination. These include terminal handling charges (THC), documentation fees, customs examination fees, and delivery charges. Origin/destination charges are often excluded from quoted freight rates and can significantly affect the total landed cost.

Outward Processing (OP)
Customs · Procedures

A customs procedure allowing UK goods to be temporarily exported for processing or repair abroad, then re-imported with duty only payable on the value added by the processing (not the full re-imported value). The opposite of Inward Processing. Requires prior HMRC authorisation. Useful for UK manufacturers sending semi-finished goods abroad for specialist processing.

On-Board Bill of Lading
Sea Freight · Documentation

A B/L specifically marked "shipped on board" with the date of vessel loading. Distinct from a "received for shipment" B/L which only confirms cargo receipt at the terminal. Most letters of credit require an on-board B/L; a received-for-shipment B/L will be rejected. Incoterms 2020 added an FCA option allowing the buyer to instruct the carrier to issue an on-board B/L for FCA shipments, solving a long-standing LC compatibility issue.

P
Postponed VAT Accounting (PVA)
Customs · UK Tax

A UK mechanism introduced in January 2021 allowing VAT-registered businesses to account for import VAT on their VAT return rather than paying it at the point of import. PVA improves cash flow as businesses do not need to fund the VAT upfront. It is available for most goods imported from anywhere in the world.

Shipment example: Example: PVA can remove the import VAT cash payment at the border for VAT-registered businesses, but the VAT still has to be accounted for on the VAT return.

Packing List
General · Documentation

A document prepared by the shipper listing the contents of each package in a shipment — including item descriptions, quantities, weights, and dimensions. It supplements the commercial invoice and is used by customs authorities, carriers, and the consignee to verify the shipment's contents.

PSS — Peak Season Surcharge
Sea Freight · Airfreight · Surcharges

A surcharge applied by sea or air carriers during periods of high demand, typically Aug–Nov on Asia–UK trade lanes ahead of the Christmas peak. Designed to ration capacity and capture margin during constrained periods. Can be substantial — £300–£800 per TEU in sea freight, $0.30–$1.00/kg in airfreight, depending on the year.

Pre-Alert
General · Operations

Notification sent by the origin forwarder (or shipper) to the destination party — typically the buyer's freight forwarder or customs broker — providing shipment details before the goods arrive. Includes B/L or AWB copies, commercial invoice, packing list, and any required certificates. Essential for the destination side to prepare the customs entry before vessel/flight arrival, avoiding clearance delays and demurrage.

Proforma Invoice
General · Documentation

A preliminary invoice issued by a seller before goods are dispatched, used to confirm the commercial terms of the sale. Not a final invoice — payment is not yet due. Used by buyers to arrange import licences, letters of credit, advance payments, or import permits. Once the goods are shipped, a final commercial invoice replaces the proforma.

Q
Quotation / RFQ
General · Pricing

A Quotation is a written offer from a freight forwarder or carrier specifying the rate, terms and validity period for a proposed shipment or contract. An RFQ (Request For Quote / Request For Quotation) is the buyer-side instruction asking multiple providers to bid for a piece of business. Quotations should specify Incoterms, origin/destination, weights and volumes, commodity description, and crucially what charges are included and excluded.

Quay / Quayside
Sea Freight · Port Operations

The wharf or dock structure alongside which vessels berth at a port. Quayside operations include loading and discharging cargo, ship-to-shore crane work, and customs inspection of certain cargo types. "Free Alongside Ship" (FAS Incoterm) refers to goods placed on the quayside ready for loading.

R
RoRo – Roll-on/Roll-off
Sea Freight · Vessel Types

A type of vessel designed to carry wheeled cargo (vehicles, trailers, heavy equipment) that is driven on and off under its own power. RoRo is the dominant mode for cross-Channel freight between the UK and Europe, with trailers loaded at port and transported on ferries.

Rate of Exchange (ROE) / FX Rate
General · Pricing

The exchange rate used to convert between currencies in international trade. Often quoted in USD for sea/air freight, then converted to GBP at point of invoicing. For UK customs, HMRC publishes monthly exchange rates used to convert invoice values to GBP for duty/VAT calculation. Currency fluctuations between booking and payment can materially affect landed cost — hedging or forward FX contracts mitigate this for regular importers.

Reefer Container
Sea Freight · Container Types

A refrigerated shipping container with an integrated cooling unit, used to transport temperature-sensitive cargo — perishable food, pharmaceuticals, chemicals, biological samples. Available in 20ft and 40ft High Cube. Plugged into vessel/terminal power throughout the voyage. Specific temperature, humidity and ventilation can be controlled. Reefer freight rates and demurrage are significantly higher than dry containers; reefer free time is shorter (often 3–5 days vs 5–7 for dry).

Returned Goods Relief (RGR)
Customs · UK Trade

A UK customs relief allowing goods previously exported from the UK to be re-imported without paying import duty and (often) VAT, provided they are returned in the same state as when exported and within 3 years. Common uses: rejected exports, returned goods, professional equipment returning after temporary use abroad. Requires evidence of the original export (export declaration, commercial invoice) and a claim on the import declaration.

S
Sea Waybill (SWB)
Sea Freight · Documentation

A non-negotiable sea freight document that serves as a receipt for goods and a contract of carriage but is NOT a document of title. The consignee named on the SWB can take delivery without presenting the original document — making it faster and simpler than a negotiable Bill of Lading, but unsuitable where the goods are being traded during transit.

Surcharges (BAF, CAF, GRI, PSS)
Freight Charges · Sea Freight

Additional charges applied by carriers on top of base freight rates. Common surcharges include: BAF (Bunker Adjustment Factor) for fuel costs; CAF (Currency Adjustment Factor) for exchange rate fluctuations; GRI (General Rate Increase) for market-wide rate rises; and PSS (Peak Season Surcharge) during high-demand periods.

SAD — Single Administrative Document
Customs · Documentation

The standardised paper form (C88 in the UK) historically used to declare goods to customs across the EU and UK. Replaced for most purposes by electronic CDS declarations in the UK and DUE/AES in the EU. The SAD data set still underpins the structure of modern electronic customs declarations. You may still encounter SAD references in legacy systems and older trade documentation.

Shipper
General · Roles

The party that physically sends goods — typically the seller, exporter or manufacturer. Named on the B/L, AWB or CMR as the consignor. Distinct from the "beneficial owner" or buyer, who may be different parties. In international trade, the shipper is responsible for accurate cargo description, packaging, labelling, and (where applicable) dangerous goods declarations.

Shipping Mark
General · Cargo

Identifying marks painted, stencilled or labelled on the outer packaging of shipped goods to identify the consignment in transit. Typically include the consignee name (or initials), destination port/airport, package number, and any handling instructions (this way up, fragile, keep dry). Standard practice on breakbulk cargo and LCL consignments where pieces may travel via mixed handling stages.

Stuffing
Sea Freight · Operations

The process of loading cargo into a container. Carried out at the shipper's premises (for FCL door-pickup), at a Container Freight Station (for LCL consolidation), or at a Container Yard. Efficient stuffing — using the available space safely, securing the load against shifting — directly affects cost per unit and damage rate. The opposite process at destination is "destuffing" or "devanning".

Switch Bill of Lading
Sea Freight · Documentation

A second set of original B/Ls issued by the carrier to replace the original set. Used to: hide the identity of the original shipper from the final buyer (re-sale or trans-shipment trades), change the named consignee, or change the port of discharge. The original B/Ls must be surrendered before switch B/Ls are issued. Carrier must agree; additional fees typically apply.

See also: Bill of Lading types

T
THC – Terminal Handling Charge
Sea Freight · Charges

A fee charged by a port terminal operator for the handling of a container at origin or destination — covering activities such as loading/unloading from the vessel, storage, and movement within the terminal. THC is typically charged separately from the ocean freight rate.

Shipment example: Example: THC can appear at origin, destination or both, so compare quotes on the same basis before deciding one is cheaper.

Transit Time
General · Logistics

The total time taken for a shipment to move from origin to destination, measured from pickup or departure to delivery. Transit times vary by mode (airfreight: 1–5 days internationally; sea freight: days to weeks depending on routing) and are subject to delays caused by weather, port congestion, and customs holds.

T1 Transit Document
Customs · Procedures

A customs transit document used under the Common Transit Convention (CTC) for the movement of non-Union goods (or goods not in free circulation) between or through CTC countries — including UK to EU and vice versa post-Brexit. The T1 allows goods to move under customs supervision without paying duty at each border crossing, provided a financial guarantee covers the potential duty. Particularly important for UK road freight via the EU into a third country.

T2 Transit Document
Customs · Procedures

A customs transit document used for the movement of Union (EU) goods through non-EU customs territories under the Common Transit Convention. Less common than T1 in UK freight contexts, but used for EU-origin goods transiting third countries en route to another EU destination — for example, EU goods transiting Switzerland or Norway. Like T1, requires a guarantee.

TARIC
Customs · EU Trade

The Integrated Tariff of the European Union — the EU's online tariff database providing the 10-digit Combined Nomenclature codes, duty rates, anti-dumping duties, preferences, suspensions and other measures applicable to goods imported into the EU. Useful reference for UK exporters checking duty exposure on EU-bound goods. The UK Trade Tariff is the equivalent for UK imports.

TEU — Twenty-foot Equivalent Unit
Sea Freight · Measurement

The standard unit of container measurement. A 20ft container is 1 TEU; a 40ft container is 2 TEU. Used by shipping lines and ports to measure vessel capacity, throughput, and route volumes. A modern Ultra Large Container Vessel (ULCV) carries 18,000–24,000 TEU. Felixstowe handles around 3.8 million TEU per year — the UK's busiest container port.

Transit Procedure / Common Transit (CTC)
Customs · Procedures

A customs procedure allowing goods to move between countries or customs territories without paying duties at each border, provided a guarantee covers the potential duty liability. The UK operates its own Common Transit Convention (CTC) procedures, which are critical for road freight moving between the UK and the EU post-Brexit. Goods move under cover of a T1 or T2 declaration with a registered office of departure and destination.

Trans-shipment
Sea Freight · Operations

The transfer of cargo from one vessel to another during transit, typically at a major hub port (Rotterdam, Singapore, Algeciras, Salalah, Tanger Med). Most Asia–UK container cargo is trans-shipped at least once. Adds 1–4 days of transit and a small risk of damage/loss during the transfer. Not a customs event; goods remain "in transit" throughout.

U
ULD – Unit Load Device
Airfreight · Equipment

A container or pallet used to consolidate cargo for loading onto an aircraft. ULDs are designed to fit the contours of specific aircraft fuselages and are tracked as airline equipment. Common types include LD3 (belly container), LD7 (main deck pallet) and AKE containers.

UN Number
All Modes · Dangerous Goods

A four-digit identifier assigned by the United Nations to dangerous goods and hazardous substances (e.g. UN1230 = Methanol, UN3480 = Lithium ion batteries). Used on shipping documents, packaging labels, and the Shipper's Declaration for Dangerous Goods. The UN Number identifies the substance; the hazard class (1–9) identifies the risk profile. Both required on all DG shipments by air, sea and road.

V
Volumetric Weight (Dim Weight)
Airfreight · Road Freight · Rating

A calculated weight used in freight pricing that accounts for the space a shipment occupies relative to its actual weight. For airfreight: (L × W × H in cm) ÷ 6,000. For courier/road: typically ÷ 5,000. If volumetric weight exceeds actual weight, the higher figure is used as the chargeable weight.

See also: Chargeable Weight, full guide + calculator

Vessel Manifest
Sea Freight · Documentation

The carrier's master list of all cargo loaded on a specific vessel for a specific voyage. Compiled by the shipping line, lodged with destination customs authorities via electronic systems (in the UK, via the carrier's pre-arrival data submission). Discrepancies between the vessel manifest and the individual B/Ls or customs declarations are a leading cause of clearance delays.

W
Waybill
General · Documentation

A non-negotiable transport document that accompanies a shipment. Unlike a negotiable Bill of Lading, a waybill is not a document of title — the named consignee simply presents ID to collect the goods. See also: Air Waybill, Sea Waybill, CMR (road).

Warehousing
Logistics · Storage

The storage of goods in a controlled facility, ranging from basic pallet storage to value-added services (pick-and-pack, kitting, labelling, returns processing). Provided by third-party logistics (3PL) operators or in-house. Distinct from a "customs warehouse" (which is a specific HMRC-authorised duty-suspension regime) — general commercial warehousing carries no customs status and goods stored there have already cleared customs.

X
X-ray Screening
Airfreight · Security

A mandatory security inspection process for airfreight cargo, using X-ray imaging to detect prohibited items, explosives, or undeclared dangerous goods before loading onto aircraft. Required for all cargo carried on passenger aircraft (and most freighter cargo) under UK CAA and EU aviation security regulations. Carried out by Known Consignors, Regulated Agents, or at airline cargo terminals. Charged via the Security Surcharge (SCC).

Y
Yard / Container Yard (CY)
Sea Freight · Container Operations

The area within a port terminal (or off-port depot) where containers are stored, sorted, and made ready for loading or collection. "CY/CY" on a Bill of Lading indicates that the shipper delivers to the origin container yard and the consignee collects from the destination container yard — the most common arrangement for FCL sea freight.

Z
Zone Rate / Zone Pricing
General · Pricing

A freight pricing structure where the rate is determined by which geographic "zone" the destination falls into, rather than calculated per individual postcode or address. Widely used in domestic UK parcel and pallet networks, and in international courier tariffs. Zone pricing simplifies quoting and billing but can produce surprising results where two nearby addresses fall in different zones.

Longer reads

Practical UK Freight Guides

Beyond the glossary: step-by-step walk-throughs of the situations UK importers actually face. Written from experience, not theory.

UK Import Customs Clearance: Step-by-Step
What actually happens between the container being lifted off the ship and the goods arriving on your loading bay. CDS entry, routing, release, delivery.
UK Import Documents Checklist
Every document a UK importer needs — invoices, packing lists, bills of lading, preference certificates, licences. Use it as a supplier briefing.
FOB China to UK Shipment Timeline
Week-by-week walk-through of a realistic 40' container from Shanghai to the Midlands. Ten to twelve weeks door-to-door, and what happens in each of them.
UK Destination Charges Explained
Why "shipping included" under CIF still leaves you with an £800 invoice at the UK end. THC, doc fees, ISPS, port health — and how to avoid the surprise.
How to Avoid Demurrage on UK Imports
The four things that trigger demurrage at UK ports, the free times at Felixstowe and Southampton, and what to do if the clock is already running.
First-Time UK Importer Guide
EORI, Incoterms, choosing a forwarder, duty and VAT, and the beginner mistakes to avoid on your first shipment. Plain English.