Lost in Shipping Jargon? Here’s the Ultimate Guide to Acronyms You Must Know
Shipping is full of confusing acronyms — but it doesn’t have to be. In this ultimate guide, we break down common shipping terms like ETA, FOB, CIF, TEU, and more so clients and partners can navigate logistics with confidence.
The shipping industry is one of the busiest and most globalized sectors in the world — but it also comes with a language of its own. Acronyms like ETA, FOB, CIF, BOL, and TEU often appear in contracts, emails, and conversations, leaving many clients and even new professionals scratching their heads. While these abbreviations make communication faster for industry insiders, they can feel overwhelming for those outside the shipping circle.
That’s why we’ve created this guide — a simple yet comprehensive breakdown of the most common shipping acronyms you’re likely to encounter. Whether you’re a client, a business partner, or someone new to logistics, this resource will help you decode the jargon, avoid costly misunderstandings, and build confidence in every shipping conversation.
Commonly Used Shipping Acronyms
1. ETA (Estimated Time of Arrival)
The expected date and time a ship, cargo, or consignment is scheduled to arrive at its destination.
2. ETD (Estimated Time of Departure)
The planned date and time when a ship or cargo leaves a port.
3. BOL / B/L (Bill of Lading)
A critical legal document issued by a carrier to acknowledge receipt of cargo. It acts as a shipment contract and a title of goods.
4. FOB (Free on Board)
A trade term that specifies when the ownership and risk of goods transfer from the seller to the buyer — usually when goods are loaded onto the ship.
5. CIF (Cost, Insurance, and Freight)
Indicates that the seller covers cost, insurance, and freight up to the destination port.
6. TEU (Twenty-foot Equivalent Unit)
The standard unit for measuring a ship’s cargo capacity. One TEU equals the space of a 20-foot container.
Example: The vessel can carry up to 18,000 TEUs.
7. FCL (Full Container Load)
When a single shipper uses the entire container for their cargo.
8. LCL (Less than Container Load)
When cargo from multiple shippers is consolidated into one container.
9. DEM (Demurrage)
A fee charged when a container is not picked up or returned within the agreed free time.
10. FEU (Forty-foot Equivalent Unit)
A measurement representing a 40-foot shipping container, equal to two TEUs.
Bonus Acronyms You’ll Hear Often
IMO – International Maritime Organization (global shipping regulator)
VGM – Verified Gross Mass (mandatory container weight declaration)
OOG – Out of Gauge (oversized cargo that doesn’t fit in a standard container)
POD – Port of Discharge (where cargo is unloaded)
POL – Port of Loading (where cargo is loaded)
The next time you receive an email filled with acronyms, you won’t be left guessing. Instead, you’ll recognize exactly what they mean and how they impact your shipment. From ETA (Estimated Time of Arrival) to TEU (Twenty-foot Equivalent Unit), these abbreviations are more than just shortcuts — they are the backbone of international trade and logistics. By learning them, you’re not just decoding industry jargon; you’re gaining the ability to communicate clearly, make informed decisions, and confidently navigate the complex world of global commerce.
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