Simplifying the jargon in freight shipping

Eliminating the jargon headache

As one of the oldest and most immutable industries, shipping was always bound to have a complex language system.

From HS codes to FCLs to TEUs to Incoterms... shipping jargon can often be quite daunting, particularly because it can differ based on a variety of factors that are peculiar to your shipments such as mode of transportation, product category, and so on.

No need to fret, however... we're here to help simplify some of these terms and make sure your next shipment is as easy and smooth as possible. After all, what is PalletPal if not the digital solution making freight shipping headache free.

Shipment Volumes: TEUs & FEUs

TEU: Twenty Foot Equivalent

• Unit of measurement in terms of a full 20-foot long container
• Say your company ships two 20' containers a week between India & UAE - you'd say "we move 104 TEUs from Mumbai to Dubai each year"
• Large ships can carry >18,000 TEUs

FEU: Forty Foot Equivalent

• Unit of measurement in terms of 40-foot long containers
• For reference: 2 TEUs = 1 FEU

These measurement units are particularly relevant when moving ocean or sea freight.

Full & Less-than Container Loads

FCL: Full Container Load

• An ocean shipment for which your cargo occupies the entirety of a container of any size (such as 20', 40', 40' HC, 45' HC)

LCL: Less-than-Container Load

• An ocean shipment for which your cargo occupies a portion of a container - the remainder of which is shared with other shippers

Full & Less-than Truckloads

FTL: Full Truckload

• A road shipment for which your cargo occupies the entirety of a truck of a certain size (generally a 53 foot long trailer)

LTL: Less-than-Truckload

• Similarly to an LCL, an LTL is a road shipment for which your cargo occupies a portion of the trailer
• LTLs often lead to longer transit times due to additional stops or pickups along the way

Customs: HS & HTS codes

HS Code: Harmonized Commodity Description & Coding System

• Six-digit product classification codes used by members of WCO (World Customs Organization)
• Broken down into 3 distinctive parts referring to specific sections within WCO's HS Nomenclature

HTS: Harmonized Tariff Schedule

• Product classification codes used to provide additional classification information (HS code + 2-4 digits)
• Administered by U.S. International Trade Commission - international variants of HTS codes exist (i.e. the additional digits are country specific)

Trade & cross-border shipping operations

Incoterms®: International Commercial Terms

• Commercial agreement between buyer and seller outlining responsibility for payments and handling of goods at every stage
• Characterized by 3-letter words (e.g. EXW, FOB, FCA...)
• Incoterms® are set and revised by the International Chamber of Commerce - last updated in 2020
• P.S. we'll be releasing a container covering all standard Incoterms®