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International Shipping Terms Glossary: 30+ Key Terms Explained

ShipGlobal Team 2026-04-05 10 min read
glossary education incoterms

Common Shipping Terms

BOL (Bill of Lading)


A legal document issued by a carrier that details the type, quantity, and destination of goods being shipped. It serves as a receipt, a contract of carriage, and a document of title.

CBM (Cubic Meter)


The standard unit used to measure the volume of LCL cargo. Calculated as Length × Width × Height (in meters).

CIF (Cost, Insurance, and Freight)


An Incoterm where the seller pays for the cost of goods, insurance, and freight to the destination port.

Demurrage


Charges applied when a container is not returned within the free period at the destination port.

ETD / ETA


Estimated Time of Departure / Estimated Time of Arrival.

FOB (Free on Board)


An Incoterm where the seller delivers goods on board the vessel. The buyer bears all costs from that point.

Freight Forwarder


An agent who arranges the transportation of goods on behalf of shippers.

HS Code (Harmonized System Code)


An internationally standardized system of numbers for classifying traded products.

Incoterm


International Commercial Terms published by ICC that define responsibilities of buyers and sellers.

TEU (Twenty-foot Equivalent Unit)


A standard measurement unit for container capacity. One 40ft container = 2 TEU.

Customs Clearance


The process of getting goods through customs so they can enter or leave a country.

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