Steplane › Guides › Freight forwarding glossary
Freight forwarding and trucking glossary: 60 terms in plain English
Updated 19 October 2026 · Written by Paul, founder of Steplane, a logistics process specialist with over 13 years in logistics, including at some of the biggest freight forwarders in the world.
In short: A POD is the signed proof of delivery, a BOL or CMR is the transport document, detention and demurrage are charges for keeping a truck or container beyond the free time, and an accessorial is any charge on top of the line-haul rate. Below are 60 freight terms in plain English, with EU, UK and US differences.
Key facts
- 60 terms, A to Z, each with a 1–2 sentence definition.
- CMR limits road carrier liability to 8.33 SDR per kg of gross weight (art. 23).
- Under the Carmack Amendment a US motor carrier may not set less than 9 months to file a claim (49 U.S.C. 14706).
- US brokers keep a record of each transaction for 3 years (49 CFR 371.3) and hold a $75,000 bond or trust fund (49 CFR 387.307).
- Incoterms 2020 has 11 rules.
Terms A to Z
Each term has a short definition, a note where EU, UK and US usage differ, and a link to our guide where there is one.
A · B · C · D · E · F · G · H · I · L · M · N · P · Q · R · S · T · W
A
- Accessorial charge
- A charge on top of the line-haul rate for extra work, such as waiting time, liftgate, inside delivery or storage. EU/UK/US: US term; in Europe usually called extras or additional charges. Read more
- ADR
- The UN agreement on the international carriage of dangerous goods by road, applied across Europe and in some other countries. It sets packaging, labelling, documents and driver training rules. EU/UK/US: EU/UK; the US equivalent is the hazmat rules in 49 CFR.
- AEO (Authorised Economic Operator)
- A customs status for trusted traders and forwarders that gives simpler and faster customs treatment. EU/UK/US: EU and UK; the closest US programme is CTPAT. Read more
- Air waybill (AWB)
- The transport document for air freight. It is a receipt and evidence of the contract, but not a document of title. Read more
- All-in rate
- A price that includes the freight and the usual surcharges, so the customer sees one number. Read more
B
- Bill of lading (BOL, B/L)
- The transport document issued by the carrier as a receipt for the goods and evidence of the contract. In sea freight a negotiable bill of lading is also a document of title. EU/UK/US: In US trucking the BOL is the main road document; in European road transport the CMR note plays that role. Read more
- Blind shipment
- A shipment where the shipper and consignee are not shown each other's details, usually because a broker or reseller is in the middle. EU/UK/US: Mainly US usage.
- Bonded warehouse
- A warehouse approved by customs where goods can be stored without paying duty and import taxes until they are released. EU/UK/US: EU/UK: customs warehousing procedure; US: CBP bonded warehouse.
- Booking confirmation
- The written confirmation of a transport booking with the agreed date, route, equipment and price. Read more
C
- Carmack Amendment
- The US law (49 U.S.C. 14706) that makes interstate motor carriers liable for loss and damage, with at least 9 months to file a claim. EU/UK/US: US only. Read more
- Carrier
- The company that physically moves the goods, or that contracts to do so and takes carrier liability. Read more
- Carrier packet
- The set of documents a broker or forwarder collects from a new carrier: authority, insurance, tax form, bank details and signed agreement. EU/UK/US: US term; in Europe usually called carrier onboarding documents. Read more
- Chargeable weight
- The weight used to price a shipment: the higher of the actual gross weight and the volumetric weight. EU/UK/US: Air freight commonly uses 6,000 cm³ per kg; road conversion factors differ by country and carrier.
- CMR
- The Convention on the Contract for the International Carriage of Goods by Road, and the consignment note used under it. It limits carrier liability to 8.33 SDR per kg. EU/UK/US: EU/UK and other signatory countries; not used in the US. Read more
- Commercial invoice
- The seller's invoice for the goods, used by customs to set the value, origin and duty. Read more
- Consignee
- The party the goods are delivered to. Read more
- Consignor
- The party that hands the goods over for transport, often the seller. EU/UK/US: US usage often says shipper for the same party.
- Consolidation (groupage)
- Combining shipments from several customers into one container, trailer or air shipment to share the cost. EU/UK/US: Groupage is the usual European word; consolidation is used everywhere.
- Credit application
- The form a new customer fills in so you can check them and set payment terms and a credit limit. A good place to have your trading conditions signed. Read more
- Customs broker
- A licensed or authorised party that makes customs declarations for the importer or exporter. EU/UK/US: US: licensed customs broker; EU/UK: customs agent or representative (direct or indirect). Read more
- Customs declaration
- The formal statement to customs of the goods, their value, origin and the procedure requested. EU/UK/US: EU/UK: declaration under the customs code; US: entry filed with CBP.
D
- Demurrage
- A charge for keeping a container in the port terminal beyond the free days, or for holding a railcar or vessel beyond the agreed time. EU/UK/US: In US trucking the word is sometimes used loosely for truck waiting time; detention is the more common term there. Read more
- Detention
- For trucks, pay for waiting at pickup or delivery beyond the free time. For containers, a charge for keeping the box outside the terminal beyond the free days. EU/UK/US: In the US, container detention is also called per diem. Read more
- Double brokering
- Re-brokering a load to another carrier without the shipper's or broker's consent, often under a stolen identity. Brokering without registration is unlawful in the US. EU/UK/US: US term. Read more
- Drayage
- Short-distance trucking of containers between a port or rail terminal and a nearby warehouse. EU/UK/US: US term; in Europe usually called container haulage or pre- and on-carriage.
- Dry van
- An enclosed, non-refrigerated trailer for general freight. EU/UK/US: US term; the European equivalent is a box trailer. The curtainsider (tautliner) common in Europe is a different design.
E
- EORI number
- The identification number a business needs to lodge customs declarations when moving goods into or out of the EU or UK customs territory. EU/UK/US: EU and UK; the US uses an importer of record number with CBP.
- ETA / ETD
- Estimated time of arrival and estimated time of departure.
F
- FCL (full container load)
- A container booked and filled by one shipper. Read more
- Freight broker
- A company that arranges transport by carriers for a fee, without moving the goods itself. EU/UK/US: US: needs FMCSA broker authority and a $75,000 bond or trust fund; in Europe the role is usually done by forwarders. Read more
- Freight claim
- A written demand to the carrier or forwarder for payment for loss, damage or delay. EU/UK/US: EU road: CMR rules; US road: Carmack and 49 CFR 370. Read more
- Freight forwarder
- A company that organises the transport of goods for a customer, choosing and booking carriers, and often handling documents and customs. Read more
- Freight invoice
- The invoice for transport services, listing the freight and every extra charge. EU/UK/US: EU: VAT rules apply; US: often called a freight bill. Read more
- FTL (full truckload)
- A truck used for one customer's goods from pickup to delivery. EU/UK/US: Europe also says full load or complete load.
- Fuel surcharge
- An extra charge that moves with the fuel price, usually set by a published index and table.
G
- General average
- A sea-freight principle under which the shipowner and all cargo owners share, in proportion to their values, the cost of a sacrifice made to save the voyage. Cargo owners usually must give security before their goods are released.
H
- House bill of lading (HBL)
- A bill of lading issued by a forwarder or NVOCC to its own customer, the shipper. The ocean carrier issues the master bill to the forwarder or NVOCC. Read more
I
- Incoterms
- The ICC rules that set out the seller's and buyer's tasks for delivery: where the goods are delivered, when risk passes, who pays which costs and who clears customs. They do not deal with ownership or payment. The 2020 edition has 11 rules.
- Intermodal
- Moving goods in one container or trailer by two or more modes, such as rail and truck, without handling the goods themselves.
L
- Layover
- Pay to a driver or carrier when a truck has to wait overnight or longer because the load is not ready. EU/UK/US: Mainly US term. Read more
- LCL (less than container load)
- A shipment that shares a container with other customers' goods.
- Lien
- The right to hold a customer's goods until charges are paid. BIFA STC, for example, include one (clause 8). Read more
- LTL (less than truckload)
- A shipment that shares a truck with other customers' goods, usually moved through terminals. EU/UK/US: Europe usually says part load or groupage.
- Lumper fee
- A charge for third-party labour that unloads a truck at the consignee. EU/UK/US: US term. Read more
M
- Manifest
- The list of all shipments or consignments on one vehicle, container, flight or vessel.
- Master bill of lading (MBL)
- The bill of lading issued by the ocean carrier to the forwarder or NVOCC.
- MC number
- The docket number FMCSA gives a carrier or broker with operating authority. EU/UK/US: US only; FMCSA also issues a USDOT number. Read more
N
- NVOCC
- A non-vessel-operating common carrier: a company that issues its own bills of lading for sea freight but does not run ships. EU/UK/US: US term (licensed or registered with the FMC); in Europe the role is usually part of forwarding.
P
- Pallet exchange
- An arrangement where the carrier swaps empty pallets for the loaded ones it delivers. EU/UK/US: Common in Europe with standard pallets; less common in the US.
- POD (proof of delivery)
- The signed document or record showing who received the goods, when, and in what condition. EU/UK/US: EU road: the signed CMR is often the POD; US: the signed delivery receipt or BOL. Read more
Q
- Quote
- The written price offer for a shipment, with what is included, what is extra and the terms that apply. Read more
R
- Rate confirmation
- The document a broker sends a carrier to confirm the load, rate and terms. EU/UK/US: US term; in Europe the transport order does the same job. Read more
- Reefer
- A refrigerated trailer or container.
S
- SDR (Special Drawing Right)
- An IMF unit of account used to express liability limits in transport conventions and trading conditions. EU/UK/US: Converted to local currency at the rate of the relevant day. Read more
- SOP (standard operating procedure)
- A written procedure that says who does what, in which order, and what records to keep. Read more
- Standard trading conditions
- The terms a forwarder works under, usually published by a national association, that limit liability and set claim time limits. EU/UK/US: UK: BIFA STC; Netherlands: FENEX conditions; Nordics: NSAB 2015; Germany: ADSp; US: NCBFAA terms. Read more
- Storage charge
- A charge for keeping goods in a warehouse or terminal beyond the free time. Read more
T
- T1 transit document
- A customs transit declaration that lets non-Union goods move under customs control, with duties and taxes suspended, to another customs office. It is processed in NCTS. EU/UK/US: EU and common transit countries, including the UK. Read more
- TONU (truck ordered not used)
- A fee paid to a carrier when a truck arrives or is dispatched for a load that is cancelled. EU/UK/US: US term; Europe often says cancellation fee or dead freight. Read more
W
- Waiting time
- Time a truck waits at loading or unloading beyond the agreed free time, often charged per hour. EU/UK/US: Europe says waiting time; US says detention. Read more
Get all 6 process kits for €199
Every core process of a freight or transport company, written the same way: quote to invoice, booking and carrier, carrier onboarding, claims and damage, customer onboarding and credit, and shipment documents and customs. Editable Word and Excel files in EU and US versions.
See all 6 kits
€49 (about $55) per kit, one-time. EU and US versions. Any 3 kits €99, all 6 kits €199. 14-day money-back guarantee.
Questions
What is a POD in shipping?
Proof of delivery: the signed document or electronic record showing who received the goods, when and in what condition. Carriers and forwarders usually need it before they invoice.
What is the difference between detention and demurrage?
For containers, demurrage is charged while the box stays in the terminal beyond the free days and detention while it is outside the terminal. In trucking, detention is pay for a truck kept waiting beyond the free time.
What is a CMR?
The international road transport convention and the consignment note used under it. It sets carrier liability at 8.33 SDR per kg and short notice periods for damage and delay.
What is the difference between a BOL and a CMR?
A bill of lading is the transport document in sea freight and the main road document in US trucking. The CMR note is the consignment note for international road transport in Europe and other CMR countries.
What is an accessorial charge?
Any charge on top of the base freight rate for extra work, such as waiting time, liftgate, inside delivery, storage or a truck ordered not used.
What is the difference between a freight forwarder and a freight broker?
A forwarder organises the whole movement, often across modes and with customs. A US freight broker arranges trucking by motor carriers and needs FMCSA broker authority.
What does LTL mean?
Less than truckload: a shipment that shares a truck with other customers' goods. In Europe it is usually called a part load or groupage.
See your own quote-to-invoice process in about 10 minutes
Answer simple questions about how your company works today. You get the process map with owners, triggers and records, the money leaks with estimates and a written procedure. Free, no sign-up.
Start the free check