Breaking Down the Acronyms Behind Every Shipment
Freight acronyms can seem confusing, but they’re key to navigating the world of shipping and logistics. These terms help simplify processes, reduce confusion, and keep things running smoothly. Knowing them makes managing shipments easier and more efficient.
AEO (Authorized Economic Operator) is a certification for businesses that meet customs security and compliance standards. It helps them enjoy faster customs processes and trade advantages with countries that recognise the status.
AOG (Aircraft on Ground) refers to a situation where an aircraft is grounded due to maintenance, repair, or parts shortages, preventing it from flying until the issue is resolved.
AVI (Live Animal) refers to the transportation or shipment of live animals, often used in the context of international trade and logistics. It ensures that the animals are transported safely and in compliance with relevant regulations and welfare standards.
A Bill of Lading (B/L or BOL) is a document that proves a carrier has received goods for shipment. It acts as a contract between the shipper and the carrier, and also as a receipt for the goods. It can be used to claim the goods when they arrive at their destination.
BAF (Bunker Adjustment Factor) is a fee added to shipping costs to account for fluctuations in fuel prices. Since fuel is a major part of shipping expenses, this adjustment helps carriers manage the rising or falling costs of fuel, ensuring they can maintain stable pricing for their services.
CAO (Cargo Aircraft Only) refers to aircraft that are specifically designed or designated to carry cargo, not passengers. These planes are used solely for transporting goods and are typically equipped with features that make loading and unloading easier, such as large cargo doors.
CAF (Currency Adjustment Factor) is a fee applied to shipping costs to account for fluctuations in exchange rates. When currencies change in value, this adjustment helps shipping companies offset the impact on their pricing, ensuring they maintain stable charges across different countries.
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CFSP (Customs Freight Simplified Procedures) makes importing and exporting easier by letting businesses submit customs declarations after goods arrive, rather than before. This helps reduce delays and cuts down on paperwork
C88 is a form used in the UK for customs declarations, specifically for import and export shipments. It provides detailed information about the goods being moved, such as their origin, value, and classification, and is required for clearing goods through UK customs. The C88 form helps ensure that the correct duties and taxes are paid and that the goods comply with regulations.
A DGN (Dangerous Goods Note) is a document required for the transportation of hazardous materials. It provides essential information about the dangerous goods being shipped, such as their classification, handling instructions, and emergency response details. The DGN ensures that carriers, handlers, and emergency services are aware of the risks and can take appropriate precautions during transport.
DIP (Diplomatic Mail) refers to mail and parcels sent by or to diplomatic missions, such as embassies or consulates. These items are given special handling and exemption from certain customs procedures, ensuring secure and privileged delivery. Diplomatic mail is protected by international agreements and is used for official correspondence and documents related to diplomatic activities.
DTHC (Destination Terminal Handling Charge) is a fee charged by shipping companies for handling cargo at the destination port or terminal. It covers the costs of unloading, storing, and moving goods within the terminal before they are delivered to their final destination. This charge is typically paid by the consignee (receiver) of the goods.
EAD (Export Accompanying Document) is a customs document required for goods being exported from a country. It provides details about the shipment, such as the nature of the goods, their value, and the exporter’s information. The EAD ensures that goods comply with export regulations and helps streamline the customs clearance process. It is often used for goods moving within or outside the European Union.
An EORI number (Economic Operators Registration and Identification number) is a unique identification number assigned to businesses and individuals involved in importing or exporting goods within the European Union. It is required for customs procedures, allowing customs authorities to track shipments and ensure compliance with trade regulations. The EORI number simplifies customs processes and helps facilitate smoother trade across EU borders.
The Entry Summary Declaration (ENS) is a customs requirement that must be submitted before goods arrive at the border, usually 24 hours ahead of time. It provides key details about the shipment to help customs assess any security risks. If it’s not submitted on time or contains errors, it can lead to delays or penalties.
An External Temporary Storage Facility (ETSF) is a designated area outside of customs-controlled zones where goods can be stored temporarily while awaiting customs clearance or further processing. These facilities are often used for goods that have not yet been cleared by customs or are pending inspection. The ETSF allows goods to remain in a secured area for a limited time, helping facilitate smoother logistics and border management. It is commonly used in international trade to manage the flow of goods before they enter the country’s official customs procedures.
Explosive Trace Detection (ETD) is a security method used to detect trace amounts of explosives on people, luggage, or cargo. It involves using specialised equipment to scan surfaces and air for microscopic particles of explosives. ETD is commonly used in airports, borders, and other security sensitive areas to help prevent the transportation of dangerous materials.
A Fiscal Representative is an individual or company authorised to act on behalf of a business for tax related matters in a foreign country. They help ensure compliance with local tax regulations, such as VAT (Value Added Tax), by handling tax filings, payments, and reporting. This role is often required for businesses that don’t have a physical presence in the country but need to operate there legally.
Fuel Surcharge (FSC) is an additional fee added to shipping or transportation costs to cover fluctuations in fuel prices. This surcharge helps carriers offset rising fuel costs and is typically calculated based on the current price of fuel. It is commonly applied in air, sea, and road freight services.
A Ground Handling Agent (GHA) is a company that takes care of tasks at the airport, like loading and unloading cargo, handling baggage, fueling aircraft, and ensuring everything is ready for takeoff. They play a key role in making sure flights and cargo operations go smoothly on the ground.
A Goods Movement Reference (GMR) number is a unique identifier assigned to a shipment or movement of goods, often used for tracking and customs purposes. It helps authorities and logistics providers track the flow of goods across borders and within a country, ensuring proper documentation and compliance with regulations.
GRI (General Rate Increase) is when shipping companies raise their rates, usually to cover rising costs like fuel or labor. It affects the price of shipments across different routes.
GVMS (Goods Vehicle Movement Service) is a system used in the UK to track and manage the movement of goods vehicles across borders. It ensures that all required customs declarations are made before vehicles can move through ports, helping to streamline the process and ensure compliance with regulations.
HAZ (Hazardous Cargo) refers to goods or materials that are potentially dangerous or harmful during transportation. These items can be flammable, toxic, explosive, corrosive, or pose other risks to health, safety, or the environment, and require special handling, packaging, and documentation when shipped.
HEA (Heavy Cargo) refers to goods that are exceptionally large or heavy, often requiring special equipment, handling, and transportation arrangements. These items typically exceed standard weight limits or dimensions and may include machinery, vehicles, or large industrial equipment.
Heat-treated pallets are wooden pallets that have been treated with heat to kill pests, insects, and bacteria, making them safe for international shipping. This process meets the international standards set by the IPPC (International Plant Protection Convention) and helps prevent the spread of harmful organisms across borders. The pallets are often marked with a stamp to indicate they have been heat-treated.
HUM (Human Remains) refers to the deceased human body or parts of it being transported. In the shipping and logistics context, it involves special handling, documentation, and compliance with legal and regulatory requirements to ensure respectful and safe transport.
ICE (Dry Ice) refers to solid carbon dioxide (CO2) used as a cooling agent. It is commonly used in shipping to keep products, especially perishables or pharmaceuticals, at low temperatures. Dry ice sublimes (turns directly from solid to gas) without leaving any liquid residue, making it ideal for temperature sensitive transport.
Incoterms are global trade terms that define who is responsible for shipping, costs, and risks when goods are sold internationally. They clarify things like who pays for shipping, insurance, and when the responsibility for the goods shifts from seller to buyer. Examples include FOB, CIF, and DAP.
KC (Known Consignor) refers to a company or individual authorised by aviation security authorities to ship air cargo without requiring routine screening. These consignors meet specific security standards, allowing for faster and more efficient handling of shipments.
LC (Letter of Credit) is a financial document issued by a bank that guarantees payment to a seller, provided they meet the specified terms and conditions. It’s commonly used in international trade to reduce the risk for both buyers and sellers.
LCL (Less than Container Load) is a shipping term used when a shipment doesn’t fill a whole container. Multiple customers’ goods are consolidated into one container, helping reduce costs by sharing the space with others. It’s ideal for smaller shipments that don’t require a full container.
Direct Customs Agent: This agent has full authority to manage all customs processes, including submitting import/export declarations, paying duties, and making sure everything complies with the law. They act as the company’s go-to person for all customs matters.
Indirect Customs Agent: This agent’s role is more limited. They may help with tasks like preparing paperwork or advising on customs rules but aren’t responsible for managing the entire customs process.
This letter is important for clearly defining what the agent can and can’t do on the company’s behalf.
LO/LO (Lift on Lift off) is a shipping method where cargo is loaded and unloaded from a ship using cranes. This method is typically used for containerised cargo that cannot be rolled on or off the vessel (like RoRo), requiring cranes to lift the goods on and off the ship.
