Shipping vocabulary can feel like its own language. Learn the essentials and you save time, avoid mistakes, and cut costs. This guide explains common shipping terminology and shipping terms and meanings in plain language. You will find short definitions, practical examples, and notes on where each term matters in the supply chain. 

Use the glossary when you read contracts or check shipping documents. Match terms to your role as shipper, consignee or freight partner and you will make better decisions on transit, cost, and risk.

How to Use This Glossary

This glossary is simple to follow. Each term includes a short definition and, where helpful, an example of how it is used in shipping. You can scroll through the list or look for a specific word when reading quotes, invoices, or contracts.

If you work in logistics, freight forwarding services in Dubai, or e-commerce, use this as a quick reference whenever a term seems unclear.

Essential Delivery & Incoterms You Must Know

Delivery terms, or Incoterms, define who is responsible for shipping, insurance, customs clearance responsibilities, and risk during transport. They are the foundation of international trade agreements and appear in almost every sales contract. Understanding them helps you know where your responsibility begins and ends.

Here are some of the most common Incoterms used in shipping:

EXW (Ex Works) 

 The seller makes goods available at their location. The buyer handles transport, export clearance, and all costs after pickup.

FCA (Free Carrier)

The seller delivers goods to a carrier chosen by the buyer. Risk transfers once the goods are handed over.

CPT (Carriage Paid To)

The seller pays transport costs to the destination, but risk passes to the buyer once goods are handed to the carrier.

CIP (Carriage and Insurance Paid To)

 Similar to CPT, but the seller also provides insurance for the goods during transit.

DAP (Delivered at Place)

The seller delivers goods to the buyer’s location, but unloading is not included.

DDP (Delivered Duty Paid) 

The seller takes full responsibility for delivery, including customs duties, taxes, and transport costs.

FOB (Free on Board)

The seller loads goods on the buyer’s chosen vessel. Risk transfers once the goods are on board.

CIF (Cost, Insurance and Freight)

 The seller covers shipping, insurance, and freight until the goods reach the destination port.

Each term shifts cost and risk differently between the buyer and seller. Choosing the right one avoids confusion and protects both parties during international trade.

Common Container & Line Abbreviations

Shipping often uses short forms to describe how containers are moved or handled. These abbreviations appear in booking notes, bills of lading, and freight invoices. Knowing what they mean helps avoid confusion and plan shipments correctly.

Here are some of the most common ones you’ll see:

CY (Container Yard)

The area within a port or terminal where full containers are received or delivered.

CFS (Container Freight Station)

 A warehouse or facility where goods are consolidated or unpacked from containers.

CY–CY 

Shipment moves from one container yard to another, meaning both origin and destination are ports or terminals.

CY–Door 

Shipment starts from the container yard and ends at the consignee’s door.

Door–Door

 The container is picked up and delivered directly between shipper and receiver.

FIOS (Free In and Out Stowed)

 The freight rate doesn’t include loading or unloading costs; these are paid separately.

FIFO / LIFO

 Stands for “First In, First Out” or “Last In, First Out,” referring to loading and unloading order.

FO (Free Out)

 The seller pays to load cargo, while the buyer covers unloading costs at the destination port.

These abbreviations simplify communication between carriers, forwarders, and shippers. Understanding them helps you read shipping documents faster and plan deliveries with confidence.

Shipping Acronyms Cheat Sheet

Shipping documents are full of abbreviations. They save space but can be confusing if you don’t see them often. This quick list explains the most common acronyms you’ll come across in logistics and trade

Acronym	Meaning
FOB	Free on Board – goods are loaded onto the vessel and risk passes to the buyer.
CIF	Cost, Insurance and Freight – seller pays transport and insurance up to the destination port.
EXW	Ex Works – buyer takes responsibility once goods are available at the seller’s location.
AWB	Air Waybill – proof that goods were accepted for air transport.
B/L	Bill of Lading – document confirming goods were loaded for shipment by sea.
ETA	Estimated Time of Arrival – expected date and time when a shipment will reach its destination.
ETD	Estimated Time of Departure – expected date when the shipment leaves the origin port.
LCL	Less than Container Load – smaller shipments that share container space with others.
FCL	Full Container Load – entire container booked by one shipper.
FTL	Full Truck Load – a truck carrying goods for one customer only.
LTL	Less than Truck Load – multiple shipments combined in one truck.
POD	Proof of Delivery – signed confirmation that goods arrived in good condition.

Real-World Scenarios: Which Terms Matter When

Knowing these terms helps you understand how freight moves through the supply chain, from booking and documentation to delivery and proof of receipt. Here are a few common examples you’ll come across in everyday shipping.

1. Importing goods from another country

A business in India buys raw materials from Germany. The contract uses CIF (Cost, Insurance and Freight), meaning the seller covers freight and insurance until the shipment reaches the Indian port. Once it arrives, the buyer handles customs and delivery.

2. Shipping temperature-sensitive products

A company exporting frozen food uses reefer containers under FOB terms. The seller loads the goods and clears them for export. After that, the buyer manages the voyage and delivery. Understanding FOB helps both sides know exactly when responsibility shifts.

3. Managing e-commerce orders

An online store partners with a 3PL (Third-Party Logistics) company. The 3PL handles order fulfillment, warehousing, and last-mile delivery. Knowing these terms helps the retailer track shipments accurately and plan better for delivery timelines.

How to Learn More / Tools & Resources

Shipping terms can feel endless, but learning a few each week makes them easier to remember. Keep this glossary as a quick guide and build on it as you work with different shipments.

You can also check trusted sources like the International Chamber of Commerce (ICC) for the official Incoterms, or visit freight carriers’ websites for updated shipping definitions. Freight forwarders and 3PL companies often share free guides that explain delivery terms, freight charges, and sea freight terms in simple language.

ProConnect Integrated Logistics – A Freight Forwarding & 3PL company

There are many 3PL & freight brokers in the industry, it is important for you to choose the right partner for your shipment. Your shipment is valuable, and we ensure we treat it like ours. ProConnect Integrated Logistics gets its expertise, experience and value of working from its group company – Redington. Over the years, ProConnect has established itself as the most reliable freight forwarder and logistics partner for many companies in the UAE and Saudi Arabia, catering to a variety of industries.

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