Shipping Terms and Definitions: A–Z Glossary

Shipping terms and definitions are the standard vocabulary of parcel, freight and international shipping, from “accessorial” to “zone,” each with a fixed meaning that carriers, customs officials and trading partners all rely on. This A–Z glossary defines the terms you’ll meet most often on carrier price lists, labels, tracking pages, freight quotes and customs forms, in plain language.

Each entry is a short definition. For the same vocabulary organized by topic (pricing, weight, labels, tracking, freight and customs) with practical context, see the shipping terms guide by category, and for a list of every glossary article on the site, browse the shipping terms glossary A–Z index.

Which Letters Does This Glossary Cover?

• Shipping terms A–C
• Shipping terms D–F
• Shipping terms G–L
• Shipping terms M–P
• Shipping terms R–Z
• Incoterms 2020 at a glance

What Do Shipping Terms from A to C Mean?

Accessorial charge: a fee for a service beyond standard pickup and delivery, such as a liftgate, inside delivery, residential delivery or an appointment. Freight carriers and parcel carriers both use the term; parcel carriers often call them surcharges.

Actual weight: what a package weighs on a scale. UPS and USPS round any fraction up to the next whole pound before pricing.

Additional handling: a UPS surcharge for packages that can’t run through automated sorting, for example when the longest side exceeds 48 inches, the second-longest side exceeds 30 inches, or the package weighs more than 50 lb.

Air waybill (AWB): the non-negotiable transport document and receipt for air cargo. Unlike an ocean bill of lading, it is not a document of title.

Bill of lading (BOL): the document a freight carrier issues to the shipper. It works as a receipt for the goods, evidence of the transport contract and, for ocean shipments, a document of title.

Billable weight: the weight a carrier charges for, which is the greater of actual weight and dimensional weight.

Carrier: the company that physically moves the shipment, such as USPS, UPS or an LTL trucking line.

Chargeable weight: the air and ocean freight equivalent of billable weight, the greater of actual and volumetric weight.

Commercial invoice: the document customs uses to value and classify an international shipment. It lists each item, its value, quantity, country of origin and tariff code.

Consignee: the person or business receiving the shipment. Consignor (or shipper): the party sending it.

Customs clearance: the process of having goods approved by the destination country’s customs authority, including paying any duties and taxes. A UPS tracking status of clearance in progress means the package is in that step.

What Do Shipping Terms from D to F Mean?

De minimis: the shipment value below which a country waives import duty. The U.S. suspended its de minimis exemption for imports from all countries on August 29, 2025, so low-value imports into the U.S. are now subject to applicable duties, taxes and fees.

Declared value: the value a shipper states for a package, which sets the carrier’s liability limit or the customs value. UPS includes a base level of carrier liability on every package and lets shippers declare a higher value for added coverage.

Delivery exception: a tracking status meaning an unexpected event, such as a damaged label, weather or an incorrect address, is delaying delivery.

Dimensional (DIM) weight: a calculated weight based on package size, found by multiplying length × width × height in inches and dividing by a DIM divisor. UPS uses 139 for daily rates, and USPS adopted 139 on July 12, 2026 for parcels larger than 1 cubic foot.

Drayage: the short truck move of a shipping container between a port or rail yard and a nearby warehouse.

Duties and taxes: charges a destination country collects on imports, based on the product’s tariff classification, value and origin.

Freight class: a rating from 50 to 500 under the National Motor Freight Classification (NMFC) that sets LTL pricing according to density, handling, stowability and liability. Lower classes are denser and cheaper per pound.

Freight forwarder: a company that arranges international transport on a shipper’s behalf, booking carriers, preparing documents and coordinating customs clearance.

FOB (Free on Board): under Incoterms 2020, a sea-freight rule where risk passes to the buyer once goods are loaded on board the vessel. In U.S. domestic contracts, FOB origin and FOB destination set where ownership and freight responsibility transfer; the guide to FOB meaning, origin vs destination explains both uses.

What Do Shipping Terms from G to L Mean?

General rate increase (GRI): a carrier’s annual price change, usually announced as an average percentage across services.

Girth: the distance around a package’s thickest part, calculated as 2 × width + 2 × height. Length plus girth determines oversize status; UPS accepts up to 165 inches and USPS up to 108 inches for most services (130 inches for USPS Ground Advantage).

Ground shipping: delivery by truck on a business-day schedule, such as UPS Ground (1–5 business days) or USPS Ground Advantage (2–5 business days).

Harmonized System (HS) code: the 6-digit international product classification customs authorities use to apply duties. U.S. exports use 10-digit Schedule B numbers built on the HS code.

Incoterms: the 11 trade rules published by the International Chamber of Commerce that assign costs, risk and customs duties between buyer and seller. Incoterms 2020 is the current edition.

Insurance (shipping): coverage that reimburses the shipper if a package is lost or damaged. USPS includes some insurance on Priority Mail and Priority Mail Express, and the guide to USPS insurance coverage and claims covers how much is included and how to file.

Last mile: the final delivery leg from a local facility to the recipient’s door.

Liftgate: a hydraulic platform on a truck that lowers freight to the ground at locations without a loading dock.

LTL (less than truckload): freight shipping where several shippers’ pallets share one trailer, typically for shipments from about 150 lb up to several pallets. The LTL freight and logistics guide covers classes, pallets and pickups.

What Do Shipping Terms from M to P Mean?

Manifest: a list of all the packages or freight handed to a carrier in one pickup or load.

NDA (Next Day Air): UPS’s overnight service family, including UPS Next Day Air Early, Next Day Air and Next Day Air Saver. In other contexts NDA means a non-disclosure agreement; the explainer on what NDA shipping means sorts out both.

Packing list: an itemized list of what is in each package or pallet, with quantities and weights, used by freight carriers and customs. The parcel version for customers is the packing slip.

Packing slip: a document inside the box listing the items in the order, without prices, so the recipient can check the shipment is complete. The packing slip guide covers what to include.

Pallet: a flat platform that freight is stacked and strapped to for forklift handling; the standard U.S. size is 48 × 40 inches. A skid is a similar platform without a bottom deck.

Parcel: a package that a small-parcel carrier can handle without freight equipment. UPS accepts parcels up to 150 lb and USPS up to 70 lb.

Proof of delivery (POD): the carrier’s record that a shipment was delivered, often including the time, location and a signature.

PRO number: the progressive tracking number an LTL carrier assigns to a freight shipment.

What Do Shipping Terms from R to Z Mean?

Residential surcharge: an extra charge UPS applies to deliveries to homes, including businesses operated from a home. USPS does not charge different prices for residential and business addresses.

Return to sender (RTS): a package sent back to the shipper because it could not be delivered or was refused.

Shipper number: the account number a carrier assigns to a shipper, printed on labels and used for billing.

Signature confirmation: a service that requires a person at the delivery address to sign for the package.

Surcharge: an extra charge added to the base rate for a specific condition, such as fuel, a remote ZIP code, a residential address or additional handling.

Tracking number: the unique number on a shipping label used to follow a package through the carrier’s network.

Transit time: the number of business days a service takes from pickup to delivery, not counting the day of pickup.

UPS: United Parcel Service, a private carrier and not part of the U.S. Postal Service. The UPS shipping guide covers its services and tracking.

Volumetric weight: the international term for dimensional weight, usually calculated in centimeters and kilograms.

Zone: a number representing the distance between origin and destination ZIP codes that carriers use to set domestic prices. Zones run from 1 (local) to 8 across the contiguous U.S., with higher zones for Alaska, Hawaii and U.S. territories.

What Do the 11 Incoterms 2020 Rules Mean?

Incoterms 2020 contains 11 rules: seven that work for any mode of transport and four that apply only to sea and inland waterway shipments. Each rule sets the point where risk passes from seller to buyer and who pays for transport, insurance and customs clearance.

Incoterms 2020 replaced the old DAT (Delivered at Terminal) rule with DPU, so DAT should no longer appear in new contracts. Under CIP the seller must buy broad all-risks cover (Institute Cargo Clauses A), while CIF still requires only the minimum cover (Clauses C). The DDP shipping guide explains what the seller takes on when it agrees to deliver duty paid.

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Frequently Asked Questions

What are shipping terms and definitions?

Shipping terms and definitions are the standard words used to describe how shipments are priced, documented, moved and delivered, such as billable weight, bill of lading, zone and Incoterms. Each term has an agreed meaning, so a carrier, a customs officer and a trading partner all read the same word the same way.

What is the difference between dimensional weight and actual weight?

Actual weight is what the package weighs on a scale. Dimensional weight is length × width × height divided by the carrier’s divisor, which is 139 for UPS daily rates and for USPS since July 12, 2026. Carriers charge for whichever of the two is greater, called the billable weight.

How many Incoterms are there?

There are 11 Incoterms in the current Incoterms 2020 edition from the International Chamber of Commerce. Seven apply to any mode of transport (EXW, FCA, CPT, CIP, DAP, DPU and DDP), and four apply only to sea and inland waterway transport (FAS, FOB, CFR and CIF).

What is the difference between a bill of lading and a packing slip?

A bill of lading is the contract and receipt between a freight shipper and the carrier, and for ocean shipments it is also a document of title. A packing slip is an unpriced list of items placed inside a parcel so the customer can check the order. They serve different parties and purposes.

Sources

• Incoterms 2020 overview (International Chamber of Commerce rules)
• USPS Postal Bulletin 22705: dimensional weight changes effective July 12, 2026
• USPS: Mail and shipping services
• UPS: Package dimensions and weight
• U.S. Customs and Border Protection: Suspension of duty-free de minimis treatment (fact sheet)
• National Motor Freight Traffic Association: NMFC freight classification