Freight shipping glossary

The terms that come up most when shipping goods, explained in a sentence or two.

LTL (less than truckload): A shipment that doesn't fill a truck and shares space with other customers' goods. You pay only for the space or weight you use, usually by pallet.
FTL (full truckload): The whole truck is booked by one customer and goes from origin to destination without stops to load or unload other goods.
Incoterms: International Chamber of Commerce rules that set who pays for each leg, where risk passes and who handles customs. The version in force is Incoterms® 2020.
ETD / ETA: Estimated Time of Departure and Estimated Time of Arrival. They are forecasts, not commitments.
Bill of lading (B/L): The sea transport document issued by the carrier: it proves receipt of the goods, evidences the contract and, if negotiable, gives the right to collect them at destination. The HBL is issued by the forwarder and the MBL by the shipping line.
CMR consignment note: The document for international road transport under the CMR Convention. It travels with the goods and is where damage is noted on delivery.
HS code (tariff code): The code that classifies goods for customs. The first 6 digits are global (Harmonized System); the EU adds 2 (Combined Nomenclature) and TARIC goes to 10. Duties depend on it.
Certificate of origin: A document that proves where the goods were made. An EUR.1 or an origin declaration lets you pay lower duties where a trade agreement applies.
Customs clearance: The formalities for goods to leave (export) or enter (import) a customs territory legally: declaration, payment of duties and VAT, and checks.
SAD (Single Administrative Document): The customs declaration filed to export or import outside the EU.
EORI: The number that identifies a business to all EU customs authorities. Without it you cannot export or import outside the EU.
Freight prepaid / freight collect: Who pays for transport: the shipper (prepaid) or the consignee (collect).
Euro pallet: The standard 1200 × 800 mm pallet. Most groupage shipments in Europe are priced per euro pallet.
ADR: The European agreement that governs the carriage of dangerous goods by road: packaging, labels, documents and vehicle.