InsightsContact LVTTransport glossary
Industry terms explained – short and precise
What do CMR, LDM, POD, Incoterms and tender mean? Short explanations of transport and logistics terms from LVT Transport.
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A
- ADR
- ADR is the European agreement on the international carriage of dangerous goods by road. It sets rules on classification, packaging, labelling, documents and requirements for vehicle and driver.Also called: dangerous goods, hazardous goods, UN number
- AEO (Authorised Economic Operator)
- AEO is an EU certification for companies with reliable customs and security procedures. It can mean fewer checks and faster handling.Also called: authorised economic operator
- Air Waybill (AWB)
- The Air Waybill (AWB) is the transport document for air freight. It evidences the contract of carriage and carries an 11-digit number used for tracking.Also called: AWB, air consignment note
B
- Bill of Lading (B/L)
- A bill of lading (B/L) is the transport document for ocean freight. It is a receipt for the goods, evidence of the contract of carriage and – as an original – a document of title giving the right to collect the goods.Also called: B/L, BOL, ocean bill of lading
C
- Cabotage
- Cabotage is domestic road haulage in an EU country carried out by a haulier from another country. It is allowed to a limited extent after an international trip.Also called: domestic haulage by foreign hauliers
- Cargo insurance
- Cargo insurance covers the value of the goods during transport – regardless of whether the carrier is liable.Also called: cargo insurance, goods in transit insurance
- Carrier liability
- Carrier liability is the carrier's responsibility for loss, damage and delay. In international road transport it follows the CMR Convention and is limited per kilo.Also called: liability limit, CMR liability
- CBM (cubic metre)
- CBM (cubic metre) is the volume of the goods in cubic metres: length × width × height in metres. It is used to price groupage, especially in ocean and air freight.Also called: cubic metre, m3, m³, volume
- Claim (damage report)
- A claim is the consignee's or shipper's notice of damage, shortage or delay. The deadlines are short, so act quickly.Also called: damage, damage report, claim
- CMR
- CMR is the 1956 international convention on contracts for the carriage of goods by road – and the name of the consignment note that travels with the goods.Also called: consignment note, waybill, CMR note
- Combined transport (intermodal)
- Combined transport moves goods by several modes in the same loading unit – for example a trailer that travels by rail for most of the journey.Also called: intermodal, multimodal, rail and road
- Cross-docking
- Cross-docking is the transfer of goods directly from one vehicle to another at a terminal – without putting them into storage.Also called: transshipment, terminal handling
- Customs clearance (customs declaration)
- Customs clearance is the filing of a customs declaration when goods enter or leave the EU. Only then are the goods released.Also called: customs clearance, customs declaration
D
- Demurrage and detention
- Demurrage and detention are charges for using a container longer than the free days granted by the shipping line.Also called: container rent, demurrage, detention
- Direct and indirect representation
- When a forwarder clears goods for you, it acts as a direct or indirect representative. The choice decides who is liable for the duty.Also called: customs representative, customs power of attorney
- Driving and rest times
- EU rules on driving and rest times set how long a truck driver may drive and how much rest is required. In practice they determine how far a truck can travel in a day.Also called: driving time, rest period, tachograph
- Dual-use and sanctions
- Dual-use items can be used for both civil and military purposes and often require an export licence. Sanctions may prohibit trade with certain countries, companies or persons.Also called: sanctions, export control, dual-use goods
E
- Empty running
- Empty running means driving without cargo – for example when a truck returns empty after a delivery or drives empty to its next collection.Also called: empty kilometres, backhaul, return load
- EORI number
- EORI is a registration number that businesses need in order to lodge customs declarations in the EU. In Denmark it is usually "DK" followed by the company's CVR number.Also called: EORI number, customs registration
F
- Freight forwarder
- A freight forwarder organises transport on behalf of others – choosing modes and carriers, handling documents and customs, and acting as the customer's single point of contact.Also called: forwarder, forwarding agent
- FTL (full truck load)
- FTL (full truck load) is a shipment where one customer hires the whole truck – whether or not it is completely full.Also called: full truckload, full load
G
- Groupage (LTL)
- Groupage covers smaller shipments – such as single pallets or packages – consolidated with other customers' goods in the same truck. It is also called LTL (less than truckload).Also called: groupage, LTL, less than truckload, part load
H
- HS code (commodity code)
- The HS code is the international numbering system for goods. It determines the duty rate and whether special rules apply to the goods.Also called: commodity code, tariff code
I
- Import VAT
- Import VAT is charged when goods are brought into the EU from a country outside the EU. It is calculated on the customs value of the goods plus duty and freight.Also called: VAT on imports
- Incoterms
- Incoterms are the ICC's international delivery terms. They define who pays for transport, customs and insurance – and when the risk passes from seller to buyer.Also called: delivery terms, EXW, FCA, DAP, DDP
L
- LDM (loading metre)
- LDM (loading metre) is one metre of the truck's load floor across its full width (approx. 2.4 m). It is used to price goods by the floor space they take up.Also called: loading metre, loading meter, ladmeter
N
- NSAB 2015
- NSAB are the general conditions of the Nordic freight forwarders. They typically govern the relationship between forwarder and customer unless something else has been agreed in writing.Also called: Nordic forwarding conditions
P
- POD (proof of delivery)
- A POD (proof of delivery) documents that the goods have been delivered – usually the consignee's signature with date and time, often with a photo.Also called: proof of delivery, delivery receipt
- Preferential origin
- Preferential origin means that goods meet the rules of a trade agreement and can therefore be imported at a reduced or zero duty rate.Also called: origin, EUR.1, free trade agreement
S
- SDR (Special Drawing Rights)
- SDR is a unit of account issued by the International Monetary Fund (IMF). Many transport conventions state liability limits in SDR.Also called: special drawing rights
- Shipper, consignee and carrier
- The three parties to a contract of carriage: the shipper sends the goods, the carrier transports them and the consignee receives them.Also called: shipper, consignee, carrier, haulier
T
- Tender
- A tender is a formal invitation to carriers to bid for a defined transport assignment – often a year's volume on many lanes.Also called: RFQ, bid, request for quotation
- Transit document (T1)
- A T1 document (common transit) allows goods not yet cleared through customs to move through the EU or transit countries without paying duties and VAT on the way.Also called: transit document, NCTS, T1 document
V
- VGM (Verified Gross Mass)
- VGM is the verified gross weight of a container. The shipper must provide it to the shipping line before a container may be loaded on a vessel.Also called: verified gross mass, SOLAS