Reference · 24 terms

Freight forwarding glossary

The words that come up when you price air cargo, express and LCL sea freight, each with the rule or formula behind it. Linked terms open a free calculator with a worked example.

Actual weight

The weight of the cargo on the scale, gross, including packaging and pallets. Compared with the volumetric weight to find the chargeable weight.

Air waybill (AWB)

The transport document for air cargo, issued by the airline or its agent. The AWB fee is a fixed charge per shipment.

CBM

Cubic metre: length × width × height in centimetres ÷ 1,000,000. A pallet of 120 × 80 × 150 cm is 1.44 CBM. Calculator and examples.

CFS

Container freight station: the warehouse where LCL cargo is received, consolidated into containers or unpacked. CFS charges are usually per W/M with a minimum.

Chargeable weight

The weight the carrier bills: the greater of the actual weight and the volumetric weight. In air cargo it is rounded up to the next 0.5 kg. Calculator and examples.

Consolidator

A company that groups shipments from several shippers into one container (LCL) or one air cargo consignment, and sells space by W/M or by kg.

DIM divisor

The number used to turn volume into weight: 6000 or 5000 cm³ per kg, 166 or 139 in³ per lb. A smaller divisor gives a higher dimensional weight. Calculator and examples.

Dimensional weight

Another name for volumetric weight, common in the United States: L × W × H ÷ DIM divisor. Calculator and examples.

Express

Door-to-door courier service. Express rates usually apply the 5000 divisor per piece, each piece rounded up to 0.5 kg. Calculator and examples.

FCL

Full container load: the shipper pays for a whole 20 ft or 40 ft container, whatever the volume inside. Usually cheaper than LCL above about 13 to 15 CBM.

Freight forwarder

A company that organises transport for shippers, buys space from airlines, carriers and consolidators, and sells the service with a margin.

IATA divisor

The air cargo rule set by IATA: 1 kg for every 6000 cm³, which means 1 CBM counts as 166.67 kg. Calculator and examples.

Incoterms 2020

The 11 trade terms of the International Chamber of Commerce (EXW, FCA, CPT, CIP, DAP, DPU, DDP, FAS, FOB, CFR, CIF) that split costs and risks between seller and buyer. Calculator and examples.

LCL

Less than container load: several shippers share one container and each pays per W/M, usually with a 1 W/M minimum. Calculator and examples.

Margin

Profit as a share of the sell price: sell = cost ÷ (1 − margin). A 20% margin on a cost of 1,000 sells at 1,250. Calculator and examples.

Markup

Profit as a share of the cost: sell = cost × (1 + markup). A 20% markup on a cost of 1,000 sells at 1,200. Calculator and examples.

Minimum charge

The lowest amount billed for a rate line or a shipment. The line costs max(rate × chargeable units, minimum).

NVOCC

Non-vessel operating common carrier: a company that issues its own bills of lading and sells ocean transport without operating ships.

Rate per kg

Air freight price per chargeable kilogram, set by weight break (N, +45, +100, +300, +500, +1000 kg). The rate falls as the weight rises. Calculator and examples.

Surcharge

An extra charge added to the base rate, such as fuel (FSC) or security (SSC) in air cargo, usually per chargeable kg.

THC

Terminal handling charge: the cost of handling the container at the port terminal, at origin or destination.

Validity

How long a quote can be accepted at the stated price, often 7, 14 or 30 days, because carrier rates change.

Volumetric weight

A weight derived from the size of the cargo: L × W × H in cm ÷ 6000 for air cargo, ÷ 5000 for express. Calculator and examples.

W/M

Weight or measure, the LCL billing unit: the greater of the volume in CBM and the weight in metric tons. 1 W/M is 1 CBM or 1,000 kg. Calculator and examples.

Last updated 5 October 2026.