Freight forwarding glossary: technical terms explained clearly

A direct transport is a shipment in which one vehicle runs exclusively for a single consignment – without transhipment, without stops at handling depots. This minimises transport damage and delivers the shortest possible transit time, ideal for urgent or sensitive goods.

One consignment occupies the entire vehicle. A standard articulated lorry holds around 33 euro pallets, 13.6 loading metres and, depending on the vehicle, up to about 24 tonnes of payload. FTL runs directly from the sender to the recipient.

Less than Truck Load: several larger consignments share one vehicle without passing through handling hubs. Cheaper than a full load, faster and gentler than groupage – typically from about 4 to 7 loading metres.

The unit of measure for occupied loading space in a truck: one loading metre equals one metre of length across the full vehicle width. A euro pallet (1.2 × 0.8 m) stowed crosswise occupies 0.4 loading metres; a standard semi-trailer has 13.6 loading metres.

In air freight the higher of actual and volumetric weight applies. The rule of thumb: 1 cubic metre equals 167 kilograms. Light, voluminous goods therefore pay by volume, not by the scale.

The two endpoints of the Incoterms scale: under EXW (Ex Works) the buyer bears all costs and risks from the factory, under DDP (Delivered Duty Paid) the seller delivers duty-paid to the recipient’s door – including all charges in the destination country.

The electronic customs declaration for exports from the EU to non-EU countries, mandatory from EUR 1,000 goods value or 1,000 kg. The Export Accompanying Document (ABD) accompanies the shipment to the EU exit customs office.

The registration number for economic operators in EU customs. Every company that exports or imports needs one – in Germany it is applied for free of charge at the Directorate General of Customs.

Customs transit procedures: T1 for non-Union goods and non-EU transits, T2 for Union goods passing through non-EU territory (e.g. Switzerland). The goods travel under customs seal to the destination customs office.

An international customs document for transit journeys through several countries without border clearance – standard on the routes via Türkiye, the Caucasus and to Central Asia.

The customs document for temporary export, e.g. of trade-fair goods or tools: export and re-import duty-free for up to twelve months. Issued by the chamber of commerce.

The preferential document of the EU–Türkiye customs union: industrial goods with an A.TR are duty-free on import into Türkiye. Agricultural products are not covered and require proofs of origin such as EUR.1.

The European agreement on the carriage of dangerous goods by road. It governs classification (classes 1–9), packaging, marking, driver training and equipment. Small quantities may fall under the 1,000-point rule.

The EU guidelines for the good distribution practice of medicinal products: uninterrupted temperature control, qualified vehicles, documented handovers. Pharma transports must be handled in a GDP-compliant manner.

The international consignment note in road freight under the CMR Convention. It documents sender, recipient, goods and condition on takeover – and is the basis for the carrier’s liability (8.33 special drawing rights per kg).

Any country outside the EU customs union. Transports to non-EU countries require an export declaration, where applicable preferential proofs, and import clearance in the destination country – unlike the document-free EU single market traffic.

The route from Europe to Central Asia bypassing Russia: via Türkiye or the Caucasus, by ferry across the Caspian Sea and on to Kazakhstan and Uzbekistan. Since the EU sanctions the most important sanction-free connection.

Domestic transports performed by a foreign transport company. Permitted in the EU but limited: a maximum of three carriages within seven days after a cross-border unloading.

The forwarder organises the transport (dispatch, documents, customs) and owes its procurement; the carrier physically performs the carriage and is liable for the goods during transport. A forwarding company can be both at once (self-entry).

German Freight Forwarders’ Standard Terms and Conditions: the customary terms of business in the German forwarding sector. They govern, among other things, liability limits (regularly 8.33 SDR/kg, capped by amount for loss in custody) and are usually agreed as the contractual basis.

The movement certificate for preferential origin: it reduces or eliminates import duties in the destination country where a free-trade agreement exists between the EU and that country. Issued by customs on the basis of a proof of origin.

The internationally harmonised commodity number that uniquely classifies every good in customs. It determines the duty rate, import VAT and any licensing requirements – a wrong number is the most common cause of customs delays.

The value-added tax due on import from a non-EU country, which works like domestic VAT. Businesses entitled to input tax deduction can generally reclaim it.

Individually handleable consignments (pallets, crates) below a part or full load, bundled via handling depots. Cheap, but with more handling and longer transit times than a direct transport.

A smaller consignment is taken along on the free loading space of a lorry that is running anyway. Inexpensive and flexible, but less fixed in scheduling than a booked direct transport.

A standardised, parkable swap superstructure that can be separated from the chassis without a crane. It decouples loading/unloading from the vehicle and thus speeds up handling.

The common body types: the curtainsider for lateral loading, the closed box for moisture-/theft-sensitive goods and the insulated reefer with a refrigeration unit for temperature-controlled transports.

The distance-based road-use charge for heavy commercial vehicles. Amount and levy differ by country (in Germany by number of axles, weight and emission class) and feed into the freight calculation.

The advance notice of a delivery, often with a firmly booked time slot at the ramp. Missing or missed notification leads to waiting times, demurrage and postponed appointments.

Presenting goods to the competent customs office so that it can examine the declaration. Without proper presentation, non-EU goods may be neither exported nor imported.

The customs origin of goods under the rules of a free-trade agreement. Only goods with preferential origin benefit from reduced import duties – evidenced by EUR.1, A.TR or a declaration of origin.

The unit of account of the International Monetary Fund to which the liability limits in CMR traffic are linked: 8.33 SDR per kilogram of gross weight. The SDR rate fluctuates and is converted at the daily rate.

An authorised service provider that submits the customs declaration in the name of (direct) or in its own name on behalf of (indirect representation) the customer. Speed Logistics handles the customs formalities in full on request.