Shipping items from point A to point B may appear straightforward at first glance, but there is a whole network of touchpoints, language, checks and balances and “paperwork” to ensure your shipments arrive at their destination. Depending on how much you need to ship, you can send small items like trinkets to your grandmother, or multiple shipments to a department store, or ship large crates filled with electronics and even an emergency shipment filled with medical equipment needed for tomorrow’s surgery. Regardless of the shipment’s contents, there is a standard set of regulations, language and terminology in the logistics and transportation industry.
The whole world of these logistics terminologies can feel overwhelming. That’s why we’ve put together this glossary of shipping and logistics terms to help you understand and eliminate some of the confusion when shipping items.
A
Accessorial Charges: Additional fees or services beyond the standard transportation charges, such as liftgate delivery, inside delivery, or storage charges.
ACI (Advance Commercial Information): A system used by Canada’s customs authority to collect data on goods before they arrive in the country. It helps enhance security measures and allows for better risk assessment before the goods reach the border.
Adult Signature Required (ASR): A delivery option requiring the signature of an adult at the destination to release the shipment. Different provinces have different age restrictions. Learn more about the ASR requirements and restrictions.
Anti-Dumping Duty: A duty imposed on imported goods sold at a price below their fair market value in the exporting country, causing injury to domestic producers.
Air Charter: The hiring or renting of an entire aircraft for a specific flight, catering to individual needs rather than adhering to a fixed schedule like commercial airlines.
Air Linehaul: The transportation of goods via air over long distances, usually involving scheduled flights between major destinations.
Air Waybill (AWB): The AWB is a document that controls the routing of an exporter’s cargo while it is in the hands of the air carrier or a consolidator. It is a contract for carriage; however, it cannot be negotiated.
B
Beyond Points: Additional locations or destinations that extend beyond the primary transportation route, often providing supplementary services or connections.
Bonded Shipment: A shipment under customs control that has not yet paid any or all duties or taxes.
Bill of Lading (BOL): A legal document issued by the carrier that outlines the details of the shipment, including the type of goods, quantity, destination, and terms of transportation. The consignor’s (shipper’s) receipt of goods shipped, the Bill of Lading, or BoL, is a legal document that authorizes the carrier to execute the movement of goods on the consignor’s behalf.
C
Canadian International Trade Tribunal (CITT): An independent quasi-judicial body that adjudicates disputes related to customs duties, trade remedies, and other trade matters.
Carrier: A company or individual that transports goods or cargo.
Chain of Signature (COS): A record of all individuals who have taken custody of a shipment throughout its delivery process.
Claim: The demand made upon a carrier for payment due to loss, damage, delay or overcharge alleged to have occurred in the course of carrier transportation
CARM: CARM stands for the CBSA Assessment and Revenue Management project. It’s an initiative by the Canada Border Services Agency (CBSA) aimed at modernizing and streamlining the process of importing goods into Canada. Learn more
CBA (Cost-Benefit Analysis): A methodical approach to assessing the pros and cons of a project or decision by comparing its costs against the anticipated benefits to determine its feasibility or value.
CBSA (Canada Border Services Agency): The federal agency responsible for administering customs, immigration, and border security regulations in Canada.
Certificate of Origin: A document that certifies the country of origin of goods, which may be required for preferential duty rates under free trade agreements or to comply with import regulations.
Cross-Border Shipping: The transportation of goods between different countries, involving compliance with customs regulations and documentation.
Consignee: The individual or company to whom a shipment is being delivered.
Consignor: The individual or company who is shipping the goods.
Collect on Delivery (COD): A service where the courier collects payment for goods at the time of delivery.
Commercial Invoice: A document containing the information required for customs clearance and to determine appropriate tariffs. Entries include contact details for the consignor (shipper) and consignee (receiver) as well as a description of the contents, quantity, value, country of origin and other important details
Courier: A company that specializes in express or small package delivery services, typically for shipments weighing under a certain threshold.
Courier Delivery Attempt (CDA): When a courier attempts to deliver a shipment but is unable to complete the delivery for some reason.
Courier Insurance: Insurance coverage that protects against loss, damage, or theft of shipments during transit.
CPTPP: The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a trade agreement among 11 Asia-Pacific countries promoting economic integration and trade liberalization. It originated from the TPP after the US withdrawal. Learn more about CPTPP
Cross-Docking: A logistics practice where incoming goods from different sources are sorted and then directly transferred to outbound vehicles, reducing the need for storage.
Customs: The government agency responsible for regulating and controlling the flow of goods across the Canadian border otherwise known as CBSA [Canadian Border Services Agency].
Customs Broker: An individual or firm that assists with the clearance of goods through customs on behalf of importers or exporters.
Customs Clearance: The process of complying with customs regulations to allow the import or export of goods across borders.
Customs Valuation: The process of determining the customs value of imported goods to calculate duties and taxes.
Cube Factor: The measurement of cargo volume relative to its weight, influencing transportation costs based on space occupancy.
D
Dangerous Goods (DG): Dangerous goods are substances or articles that are capable of posing a risk to health, safety, property or the environment. They can be explosives, flammable, toxic, radioactive, infectious or corrosive properties.
Delivered Duty Unpaid (DDU): A term used in international shipping where the seller is responsible for ensuring goods arrive at a destination, but the buyer is responsible for import duties.
Delivered Duty Paid (DDP): Refers to a shipping agreement where the seller assumes all the risk and expense associated with transporting goods until they are received by the buyer.
Digital Commercial Invoice (DCI): A digital document provided by the exporter to the buyer that includes details of the goods being exported, such as description, quantity, price, and terms of sale.
DIM Weight (Dimensional Weight): A pricing method considering the volume or size of cargo in addition to its actual weight when determining shipping costs.
Dimensional Weight: A calculated weight based on the size of a package rather than its actual weight. Used to determine shipping charges when the dimensional weight exceeds the actual weight.
Duty: A tax imposed on imported goods based on their classification and customs valuation.
Duties and Taxes: Fees levied by the government on imported or exported goods, which may include customs duties, sales tax, or value-added tax (VAT).
Door Knocker: A notice left by couriers when they attempt delivery but no one is available to receive the shipment.
Dropbox: A secure box where customers can deposit outbound shipments for the courier to collect.
Duty Drawback: Duty drawback is a refund of certain duties, taxes, or fees paid on imported goods that are subsequently exported or used in the production of exported goods. Learn more
E
EDI (Electronic Data Interchange): The computer-to-computer exchange of business documents in a standard electronic format between business partners.
ESS (E-ship Server): Purolator’s server-based shipping solution that allows businesses to integrate shipping processes into their existing systems.
ESO (E-ship Online): Purolator’s online shipping platform that provides tools and services for managing shipments.
EWS (E-ship Web Services): Purolator’s web-based tool for managing shipments and accessing shipping functions for order fulfillment online.
Excise Tax: A tax imposed on specific goods, such as alcohol, tobacco, and petroleum products, that are produced or imported into Canada.
Express Delivery: A service that guarantees the quick delivery of shipments within a specified time frame.
Exporter: The person or entity responsible for shipping goods from their country of origin to another country.
Export Controls: Government regulations or restrictions on the exportation of certain goods, technologies, or services for reasons of national security, foreign policy, or trade agreements.
Export Declaration: A document or electronic filing submitted to the U.S. Census Bureau or the Automated Export System (AES) to provide statistical information on exported goods.
Export Insurance: Insurance coverage that protects exporters against the risk of non-payment, loss, or damage to goods during transit.
Export License: A document issued by the government granting permission to export specific goods out of a country.
Export Packing List: A document that provides detailed information about the contents, packaging, and shipment of goods being exported, including item descriptions, quantities, weights, and dimensions.
F
Free Trade Agreement (FTA): An agreement between two or more countries that eliminates or reduces trade barriers, such as tariffs, between the participating nations.
Freight: Goods or cargo transported in bulk by land, sea, or air.
Freight Forwarder: A company that organizes shipments for individuals or businesses, typically acting as an intermediary between the shipper and carrier. They handle logistics, documentation, and customs clearance.
Freight Class: A numerical rating system used to determine the shipping cost based on the density, handling, stowability, and liability of the goods being shipped.
Freight Forwarding Agent: An individual or company that assists in the logistics and coordination of freight shipments.
Freight Rate: The price charged by a carrier for transporting goods from one location to another.
FSC [Fuel Surcharge]: An additional fee charged in transportation to compensate for increased fuel costs, commonly found in air and freight services.
FTL (Full Truckload): FTL (Full Truckload) is when a shipment fills an entire truck, ideal for larger quantities from one source to one destination, ensuring cost-efficiency and quicker delivery. Learn more about Full Truckload
Fuel Surcharge: An additional charge added to the cost of transport to cover the fluctuating price of fuel.
Fully Regulated DG [Dangerous Goods]: Dangerous goods prepared in compliance with Transport Canada’s regulations, for which no exemption is used.
First-Mile of Delivery: First-mile delivery is the initial stage of logistics where goods are collected from the point of origin, like a warehouse or manufacturing facility, to begin their journey through the supply chain. Learn more about First-mile delivery
G
Goods and Services Tax (GST): A federal tax levied on most goods and services in Canada, including imported goods.
Guaranteed Shipment: A service where the courier guarantees delivery by a certain time or date.
H
Harmonized System (HS) Code: A standardized international system for classifying goods, enabling uniformity in customs procedures and tariffs.
Hub and Spoke network: A hub-and-spoke network is a transportation, distribution, or communication system where a central hub is connected to several smaller entities or locations, known as spokes. Learn more
Hundred Weight Price per Hundred Pounds: A pricing model used in transportation and logistics, charging based on weight per hundred pounds, commonly used in freight services.
HWB (House Airway Bill): A document issued by a freight forwarder, detailing the specifics of air cargo transportation.
I
Import Controls: Government regulations or restrictions on the importation of certain goods, such as firearms, endangered species, or hazardous materials.
Induction Facility: A location where goods are received, sorted, and prepared for transportation, often a preliminary step in the logistics process.
Importer: The person or entity responsible for bringing goods into Canada from another country.
Importer of Record: The person or entity responsible for ensuring that imported goods comply with all customs regulations and for paying applicable duties and taxes.
Import License: A document issued by the government authorizing the importation of specific goods into a country.
Import Permit: A document issued by a regulatory agency that authorizes the importation of specific goods subject to regulatory control, such as pharmaceuticals or chemicals.
Incoterms: A set of international rules defining the responsibilities of buyers and sellers in international trade, including the allocation of costs and risks.
Intermodal Transportation: The use of multiple modes of transportation, such as truck, rail, and ship, to move goods from origin to destination.
L
Label: A label or document providing information essential to accurate and efficient transportation of a shipment. At minimum, information includes name and address of the consignor (shipper), the name and address of the consignee (receiver), the origin and destination. More detailed information is required for shipping internationally to facilitate customs review.
Label Free: A service that allows customers to send shipments without a printed label, using a mobile QR or alternative identification method.
Last-Mile Delivery: Last-mile delivery is the final step, delivering goods from a distribution center to the end consumer’s doorstep or business location, optimizing customer satisfaction and efficient logistics. How To Win Customers with Your Last-Mile Logistics [Ebook]
Letter of Credit (LC): A financial instrument issued by a bank on behalf of the buyer that guarantees payment to the exporter upon presentation of specified documents and compliance with the terms and conditions of the LC.
Liability Claim: A demand for payment based on the carrier’s responsibility for lost, damaged, or delayed shipments.
Limited Quantity DG: Dangerous goods (other than explosives) in one or more means of containment with a gross mass ≤30 kg each; prepared using the provisions of Section 1.17 of Transport Canada’s Transportation of Dangerous Goods Regulations (TDGR);
LTL (Less-than-Truckload): The transportation of a palletized shipment utilizing only a portion of the full trailer
M
Manifest or shipping manifest): A document providing a detailed description of a shipment’s contents.
Mission Critical: Critical shipments require our “Mission Critical” service. This highly adaptable expedited shipping solution guarantees optimal routing for your most time-sensitive deliveries. Learn more about Mission Critical
Middle-Mile of Delivery: “Middle-mile delivery” refers to the intermediate stage of the transportation and logistics process. It involves the movement of goods from a distribution center, warehouse, or hub to local distribution points, which are typically closer to the final destination.
Learn more about middle mile delivery
MWB (Master Way Bill): A summary document that consolidates multiple House Airway Bills for ease of management and tracking during air cargo transportation.
N
Next-Day Shipping: In logistics, the term ‘next day delivery’ refers to the prompt delivery of goods to customers, following the motto ‘ordered today, delivered tomorrow.
Northbound: Goods or transportation moving from the United States into Canada. It signifies the direction from the southern border of the United States towards the northern border shared with Canada.
Non-Tariff Barriers: Trade restrictions other than tariffs, such as import quotas, licensing requirements, or technical regulations, that may affect the importation of goods.
Non-Resident Importer (NRI): An NRI, or Non-Resident Importer, refers to a business or individual who imports goods into a country where they are not physically located or don’t have a permanent residence. Learn more
O
Over Max: A term used for shipments that exceed a courier’s specified size or weight limits for standard service.
Out for Delivery (OFD): A status indicating that a shipment has left the shipping facility and is on its way to the recipient.
Overnight Delivery: A service that guarantees delivery of shipments the next business day after pickup.
On-Time Performance (OTP): A metric that measures the percentage of shipments delivered within the scheduled delivery time.
P
Packing Slip: A document included with a shipment that lists the items included in the package.
Pallet: A flat structure used to stack and wrap freight to support goods during transportation, often made of wood, plastic, or metal.
PARS (Pre-Arrival Release System): A system facilitating the release of goods at the border before their physical arrival in Canada, expediting customs clearance processes.
PASS Clearance: Customs clearance procedures ensuring compliance with regulations, confirming that goods meet necessary standards before being allowed entry.
Partner Government Agency: Refers to governmental bodies or entities that collaborate with customs authorities to enforce various trade-related regulations, ensuring compliance with specific import or export requirements.
Parcel: A small package or container used for shipment that is under 150 pounds.
Peak Surcharge: A peak surcharge is an additional fee that courier and logistics companies may apply to shipments during certain periods of high demand, such as the holiday season, special events, or during a sudden surge in shipping volumes.
Proof of Delivery (POD): A document or electronic record that confirms the successful delivery of a shipment and includes recipient’s signature a photo of the shipment delivery to its final destination.
PUD (Pickup and Delivery): Services involving the collection and delivery of goods to and from designated locations.
Purolator: Purolator is a leading integrated freight, package and logistics provider, delivering packages to, from and within Canada for over 60 years. With one of the most extensive networks in Canada and our U.S. and international shipping expertise, we drive results through our customized shipping and supply chain solutions. Purolator offers a comprehensive range of services, including intra-Canada shipping services, Freight (LTL) services, returns management, imports and exports, and shipping connections with the rest of the world. Purolator is distinguished by its commitment to specialized services tailored to various industries, encompassing small business solutions, retail e-commerce, healthcare, industrial, technology, and more. Headquartered in Mississauga, Ontario, Canada, Purolator operates with a substantial network, boasting 176 operations facilities and over 2500 access points for its customers.
Purolator Your Way (PYW): Monitor your parcels using Purolator Your Way, our adaptable delivery solution designed to elevate and personalize the ecommerce delivery experience according to your preferences. Explore more about Purolator Your Way
Purolator Trade Assistant: Our self-serve online tool makes it easy to ensure your shipments are compliant for cross-border shipping, with customs requirements guidance and information
Q
QST (Quebec Sales Tax): A tax charged on most goods and services in Quebec, Canada.
R
Reconciliation: The process of adjusting the declared value, tariff classification, or origin of imported goods within a specified period after the goods have been released by customs.
Reefer: A refrigerated container or trailer used to transport goods requiring temperature-controlled conditions.
Restricted Goods: Goods that require special permits, licenses, or approvals to be imported or exported due to their nature, origin, or destination.
Reverse Logistics: Reverse logistics involves the management of products, goods, or materials moving backward in the supply chain—from customers back to the point of origin. It encompasses processes like returns, exchanges, repairs, and recycling, aiming to optimize value recovery and reduce waste. Learn more about reverse or return management
S
Same-Day Delivery: A service that ensures the delivery of shipments on the same day they are picked up.
Special Handling Service (SHS): Refers to additional services offered by couriers for shipments that require special care, such as fragile or hazardous materials.
Section 321: Section 321 is a U.S. Customs and Border Protection provision allowing for duty-free entry of low-value shipments valued at $800 or less. It facilitates faster clearance and delivery of small goods to consumers. Learn more about Section 321
Southbound: Goods or transportation moving from Canada into the United States. It signifies the direction from the northern border of Canada towards the southern border shared with the United States.
Shipper: The individual or company responsible for initiating the shipment.
Shipper of Record: The shipper of record is defined as the party who contracts with a carrier service to transport goods into another country.
Shipment: A collection of goods being transported from one location to another.
Shipment PIN: A Parcel Identification Number (PIN) assigned to a shipment for tracking and record-keeping purposes.
T
Tariff: A schedule of duties and taxes imposed on specific goods imported into Canada.
Tailgate: A delivery service feature where goods are unloaded from the vehicle to the ground level; may involve an additional fee for heavy or bulky items.
Third-party billing: Billing of shipping costs to a third-party that is not the consignor (shipper) or consignee (receiver.)
Tracking Number or PIN: A unique alphanumeric code assigned to a shipment that allows the sender and recipient to track its progress during transit.
Transit Time: The duration it takes for a shipment to travel from the origin to the destination, excluding any delays or additional services.
Transportation of Dangerous Goods Regulations (TDGR): the regulations that govern the transport of dangerous goods by all modes of transport in Canada.
Ts and Cs (Terms and Conditions): The stipulations and contractual agreements governing transactions, outlining rights, responsibilities, and obligations.
U
USMCA/CUSMA: U.S. – MEXICO – CANADA Agreement is a free-trade agreement between those countries Learn more about USMCA/CUSMA
UOM (Unit of Measurement): The standard dimension, quantity, or capacity by which a substance or object is measured or quantified
V
Value Added Tax (VAT): A provincial tax imposed on goods and services in some provinces in Canada, such as Quebec (known as the Quebec Sales Tax or QST).
Volume Weight: Similar to dimensional weight, it is a calculated weight based on the size of a shipment, often used for lightweight, bulky items.
W
Waybill: A document accompanying a shipment that contains details about the goods being transported, including origin, destination, consignee, and shipper information.
Weight Break: A pricing structure in transportation and logistics that offers different rates based on various weight ranges for shipments.
Mastering logistics terminology and understanding specific terminologies is crucial for any business striving for seamless shipping operations. Understanding common terminologies can remove the complexities in the shipping and logistics market and help support a seamless customer experience. As the industry evolves and complexity arises with shipping and logistics, it’s always beneficial to partner with a reliable trusted leader in the market who understands the complexities, can remove barriers in your supply chain and can provide customized solutions to support your business goals.