Freight Forwarding Glossary
Freight has its own vocabulary. Here are the terms that come up on almost every quote and booking, defined in plain language.
Load & volume
FCL (Full Container Load): you book a whole container. LCL (Less than Container Load): your cargo shares a container with others, priced per CBM.
CBM (cubic metre): the volume of your cargo, length × width × height in metres. Chargeable weight: the greater of actual and volumetric weight, used to price air and some road freight.
Charges you’ll see on a quote
THC (Terminal Handling Charge): fees for moving the container at the port terminal. Demurrage and detention: penalties for keeping a container at the port, or off-port, longer than the free days allowed.
BAF/CAF: fuel and currency adjustment surcharges layered on the base ocean rate.
Documents & compliance
B/L (Bill of Lading): the sea contract of carriage and, in negotiable form, a document of title. HS code: the harmonised commodity code that sets duty rates and controls.
Incoterm: the three-letter rule (EXW, FOB, DDP…) that splits cost and risk between buyer and seller.
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What does CBM mean?
CBM is cubic metres — your cargo’s volume, calculated as length × width × height in metres. It drives LCL sea pricing and volumetric weight.
What is demurrage?
A charge the carrier levies when a container stays at the port terminal beyond the free time — distinct from detention, which applies once the container leaves the port.