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20695 S. Western Ave, Suite 241
Torrance, CA 90501


Terminology You Should Know

20’ ocean container unit (TEU) Standard 20’ container: Measuring capacity for a vessel.

3PL: A 3rd party outsourced logistic company (warehousing & distribution)

40’ ocean container (FEU): Standard or High Cube container: Measuring capacity for a vessel

Alliance: airlines or steam lines coordinating each other’ s schedules and selling capacity

Break-bulk cargo: Each piece is handled by the terminal handler (stevedore)

Bulk Cargo: vehicles, tank, grain moved by bulk-ship types

Carrier: A transportation provider (truckers, railroad, airline, steam line)

Common Carrier: Transportation providers

Consignee: A person ora company receiving the freight (the receiver)

Consolidation services: NVOCC re-group shipments into a warehouse from various shippers, load a full container load, ship to a destination port to their agent known as the break-bulk agent that will segregate the each shipment readying it for its final destination (refer to your shipping terms)

Container leasing: supplied by the carriers to shippers for the duration of the voyage

Cost of freight (C & F) or Cost of Freight + Insurance (CIF): Freight charges payable by shipper & up to the destination port / airport only. (Always refer to Baum Shipping disclosure / information sheet)

Cross-dock: A terminal receiving (inbound), storing & exporting (outbound)

Customhouse broker: A clearing house through Customs for importers

Detention / Demurrage: Assessed by the carriers to the shipper / consignee for keeping a shipment longer than the authorized time.

Diversion / Re-consignment: Change of consignee name on the bill of lading while the freight is in transit (cost associated with it)

Door to Door: Transportation services from the origin / destination curb sides (duty paid or unpaid to be defined). The originator of the request (shipper or the consignee) is responsible to pay all charges. (Always refer to Baum Shipping disclosure / information sheet)

Drayage: Local trucking

Dunnage: Materials inside a container used to secure (IE# bracing & blocking a vehicle)

Free on Board (FOB): ex-factory charges up to the origin port / airport are for the shipper’s account. Consignees are responsible once delivered to the port / airport of origin all the way to their site.

Freight bill of lading: A legal shipping document between a shipper and a carrier for the transportation of freight (reflect all parties involved and shipping terms of sales)

Freight forwarder: A booking agent on behalf of the shippers handles the export declaration to the USA Customs and other logistical freight services

Freight weight measures: Short ton (American) 2000 lbs. Long ton (English) 2240 lbs. Metric ton (1000 kg. 2.2046 lbs.

Full container Load (FCL): exclusive use of 1×20’ or 1×40’ ocean containers

Full Truck Load (FTL): using the whole trailer (53’)

Interline Shipment: When more than one carrier is used during transportation to move a container from the destination port to a door location (IE# Hong Kong to Chicago via Long Beach)

Less Than a Container Load (LCL): Consolidated shipments into a full container load Intermodal: Ocean containers transferred onto a truck chassis or railroad for final or depot delivery

Less Than A Truck Load (LTL): Consolidating a shipment with others into a truck.

Line-haul: Trucking from depot to airlines warehouses

Liner shipping: regular sailing schedules between specified ports

Lo-Lo: lift on & lift off for conventional container cargo ships. Cranes are used on the quay to load /unload.

Long-haul: Long distance from terminal to terminal

Loss or damage cargo: While in transit in a carrier’s possession will fall under the terms & conditions of the carriers’ liability coverage, as shown on their terms & conditions. If am insurance coverage is purchased through Baum Shipping & a claim is filed timely with the carriers with supporting documents, the insurer will handle the insurance refund.

Non Vessel Operating Common Carrier: Wholesaler of space. Buy from carriers’yearly space in bulk.

Ocean conference: cartel of vessels sharing trade points with set rates

Pallet or Skid: a 48” x 42” heat treated (HT stamped for export) wooden platform on studs

Reefer: Refrigerated ocean container

Ro-Ro: roll on, roll off. A method by which the cargo is wheeled on & off a Ro-Ro ship

Slot: Location of a container on a ship

Stock-keeping unit (SKU): A line-item of inventory that is a different type or size of good.

Terminal / Deport: Where cargo is shipped or picked-up from.

Tramp shipping: irregular sailing schedules (IE# Bulk ship)

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20695 South Western Ave, Suite 241
Torrance, CA 90501
(800) 383-3157
Office Hours
Monday – Friday, 7:00 am – 5:30 pm

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