Understanding shipping and freight terminology is essential for maintaining an efficient supply chain. Use the table below to reference common industry terms used within the ShipHero platform and the broader logistics landscape.
| Shipping Term | Definition & Action |
| Accessorial Fee | A fee charged for carrier-provided services beyond standard pickup and delivery, such as address corrections. |
| Air Waybill | A document that indicates the destination address and includes contact information for both the consignor and consignee. |
| BOL (Bill of Lading) | A contract between the owner of the goods and the carrier. It details the type of goods, origin, and destination, serving as a receipt once the carrier picks up the shipment. |
| Commercial Invoice | A document for international transactions detailing the contents, shipper, and consignee. It serves as the basis for other customs documents. See also: Why are commercial invoices showing the full price instead of the lower customs value? |
| Commodity | Any commercial good being shipped. |
| Consignee | The receiver of the shipment. |
| Customs | The government agency responsible for enforcing import/export regulations and collecting duties and taxes. |
| Customs Broker | A professional or entity that helps shippers navigate complex customs requirements. |
| Customs Invoice | A document required by a country's customs authority. It is similar to a commercial invoice but specifically includes the Certificate of Origin (COO). |
| Customs Value Only | Statements required on invoices for shipments where no monetary transaction occurs, ensuring they remain subject to applicable duties and taxes. |
| Collect Shipment | A billing option where the consignee (receiver) is responsible for the freight charges. See also: How to Add FedEx Ground Collect. |
| Dimensions | The length, width, and height measurements of a shipment. |
| DIM Weight (Dimensional Weight) | A pricing technique using a shipment's volume. Calculated as (L x W x H) / Divisor. See also: How to calculate DIM weight. |
| Dunnage | Material used to stabilize and secure freight within a container or truck (also known as void fill). |
| Dangerous Goods | Materials that are corrosive, flammable, or toxic. These require specific documentation and packaging. See also: How to Ship Dangerous Goods. |
| Dangerous Goods Declaration | A form completed by the exporter detailing the hazardous materials in a shipment. |
| Drayage | The transport of goods over a short distance, typically moving a shipment from a port to a nearby warehouse. |
| Duties | Taxes or tariffs collected on the import and export of goods. |
| EDI (Electronic Data Interchange) | The electronic transmission of business documents like invoices and bills of lading. See also: How to Set Up EDI with UPS. |
| Freight Forwarder | A company that organizes the transportation and storage of goods on behalf of a shipper. |
| FTL (Full Truckload) | A shipping mode where a single customer contracts the entire capacity of a truck. |
| FOB (Free On Board) | A contract term where the seller delivers goods to a specific location. Responsibility transfers to the buyer once delivery is complete. |
| FOB Destination | Ownership and risk remain with the seller until the goods reach the buyer’s specified location. |
| FOB Origin | Ownership and risk transfer to the buyer the moment the carrier picks up the goods from the seller. |
| Harmonized System Code | An international standard for classifying goods for customs purposes. See also: How to use Tariff Codes (HS Codes) in ShipHero. |
| Last-mile Delivery | The final stage of the delivery process, moving goods from a distribution hub to the end customer. |
| LTL (Less than Truckload) | A shipping mode for medium-sized shipments where multiple customers share a truck's capacity. |
| LCL (Less than Container Load) | An ocean freight term for shipments that do not fill an entire shipping container. |
| Manifest | A comprehensive document listing all contents within a shipment. See also: Using DHL eCommerce in ShipHero. |
| NMFC (National Motor Freight Classification) | A standard used to classify goods based on their transportability to determine freight rates. |
| Origin | The location where a shipment first enters the carrier's network. |
| PRO (Progressive Rotating Order) | A unique 10-digit number assigned to a freight shipment, commonly used for tracking. |
| Surcharge | An additional fee applied by carriers to cover fluctuations in fuel costs or peak season operations. |
| Third-party Billing | A billing arrangement where shipping costs are paid by an entity other than the shipper or the receiver. |
| Zone Skipping | A strategy where multiple packages are consolidated and shipped directly to a destination zone's sorting facility to save time and cost. |