Shipping Terms – Abbreviations, Incoterms & Acronyms

Here are some common abbreviations used when shipping goods and items, especially when international travel is involved.

  • A/F (Advanced Freight) – Payment made before goods are shipped.
  • AWB (Air Waybill) – A document issued by an airline for goods transported by air.
  • B/L (Bill of Lading) – A legal document between the shipper and carrier detailing the shipment.
  • BAF (Bunker Adjustment Factor) – A surcharge applied to shipping rates based on fuel costs.
  • CIF (Cost, Insurance, and Freight) – The seller covers shipping, insurance, and freight costs until the destination port.
  • COC (Carrier-Owned Container) – A container owned by the shipping company rather than the customer.
  • CBM (Cubic Meter) – A measurement unit for cargo volume.
  • DDP (Delivered Duty Paid) – The seller covers all costs, including duties and taxes, until delivery.
  • DGR (Dangerous Goods Regulations) – Rules governing the transport of hazardous materials.
  • ETA (Estimated Time of Arrival) – The expected arrival time of a shipment.
  • ETD (Estimated Time of Departure) – The expected departure time of a shipment.
  • EXW (Ex works) The buyer receives the cargo directly from the factory and thereafter arranges shipment, insurance and other related services themselves.
  • FOB (Free on Board) – The seller delivers goods to the port, and the buyer takes responsibility from there.
  • FCA shipping term means that the seller will first send your goods to an agreed delivery location, usually the warehouse of your freight forwarder or agent, and deliver the goods there. Also, the seller has to deal with exporting customs declarations.
  • FCL (Full Container Load) – A shipment that fills an entire container.
  • FAK (Freight All Kinds) – A pricing method where different types of cargo are charged the same rate.
  • GRI (General Rate Increase) – A periodic increase in freight rates.
  • HBL (House Bill of Lading) – A bill of lading issued by a freight forwarder.
  • IMO (International Maritime Organization) – A global organization regulating shipping safety and environmental concerns.
  • INCOTERMS (International Commercial Terms) – Standardized trade terms defining responsibilities between buyers and sellers.
  • LCL (Less than Container Load) – A shipment that does not fill an entire container.
  • LOLO (Lift-On/Lift-Off) – A method where cargo is lifted on and off a vessel using cranes.
  • LTL (Less than Truckload) – A shipment that does not require a full truck.
  • MTO (Multimodal Transport Operator) – A company that handles multiple modes of transport.
  • NVOCC (Non-Vessel Operating Common Carrier) – A company that arranges ocean freight without owning ships.
  • OOG (Out of Gauge Cargo) – Cargo that exceeds standard container dimensions.
  • POD (Port of Discharge) – The port where cargo is unloaded.
  • POL (Port of Loading) – The port where cargo is loaded onto a vessel.
  • RORO (Roll-On/Roll-Off) – A method where vehicles are driven onto a ship rather than lifted.
  • SOC (Shipper-Owned Container) – A container owned by the customer rather than the carrier.
  • TEU (Twenty-Foot Equivalent Unit) – A standard measurement for container capacity.
  • ULD (Unit Load Device) – A container used for air cargo transportation.