Freight & shipping glossary

Plain-English definitions of the terms that appear on every freight quote, bill of lading and customs entry. Each term links to the calculators that use it.

• CBM (Cubic Metre)

  CBM stands for cubic metre — the volume your cargo occupies, and the base unit used to price ocean LCL freight.

• Chargeable Weight

  Chargeable weight is the higher of a shipment's gross weight and its volumetric weight, and it is the figure carriers actually bi…

• Volumetric Weight (Dimensional Weight)

  Volumetric weight, also called dimensional weight, converts the volume of your cargo into a notional weight that carriers can com…

• LCL (Less than Container Load)

  LCL, or less than container load, means your cargo shares a container with other shippers and you pay only for the space you use.

• FCL (Full Container Load)

  FCL, or full container load, means you book an entire container exclusively for your own cargo, regardless of whether you fill it.

• Palletisation & Pallet Types

  Palletisation is the practice of stacking cartons onto a pallet so they can be moved as a single unit by forklift, and it affects…

• Incoterms

  Incoterms are the internationally recognised rules that define who pays for freight, insurance and duty, and where the risk trans…

• Customs Value (CIF vs FOB)

  Customs value is the figure your import duty is calculated from, and whether it is assessed on CIF or FOB changes what you pay.

• HS Code

  An HS code is the international classification number for a product, and it is what determines the duty rate your shipment attrac…

• Demurrage & Detention

  Demurrage is charged when a container sits too long inside the terminal; detention is charged when the empty equipment is kept ou…

• THC (Terminal Handling Charge)

  A terminal handling charge, or THC, covers the cost of moving your container through the port terminal at origin or destination.

• NMFC Freight Class

  Freight class is an 18-level standard used in US less-than-truckload shipping, running from class 50 for the densest cargo to cla…