Shipping terms can leave you scratching your head, particularly if you're operating an e-commerce business in Australia. By understanding the fundamentals, such as consignment notes, freight forwarding, volumetric weight, and delivery exceptions, you'll be able to compare quotes, prevent unexpected charges, and communicate more clearly with both carriers and customers.
This glossary covers 40 shipping and freight terms that Australian sellers often come across.
How to Use This Glossary
Keep this guide handy for quick reference when you book freight, compare carrier rates, prepare international shipments, or solve delivery problems. Some terms are about certain services, while others affect pricing, paperwork, or delivery.
Booking & Documentation Terms
1. What Is a Courier?
A courier is someone or a company that picks up and delivers parcels from one place to another. Courier services are generally used for smaller, time-sensitive shipments.
2. What Is a Consignment Note?
A consignment note is a document that contains essential shipment details, such as the names of the people sending and receiving the goods, a description of the items being shipped, and delivery instructions; it also indicates the freight given to the carrier.
3. Manifest
A manifest is a list or document that shows all shipments being transported together, making it easier for carriers to track and handle the freight.
4. Waybill
A waybill is a transportation document that has information about the shipment and its route. In some cases, it can also function as a tracking document, depending on the carrier and service.
5. Shipping Label
A shipping label is usually attached to a parcel or shipment and includes the information required for delivery, such as the sender's and recipient's addresses, a barcode, and a tracking number.
Freight & Capacity Terms
6. What Is Freight? / What Does Freight Mean?
Freight usually means goods being transported from one place to another, and it may also refer to the service or the cost of transporting those goods.
7. What Is Freight Forwarding?
Freight forwarding involves arranging the transportation of goods, usually through various carriers or modes of transport; a freight forwarder can handle collection, storage, customs clearance, and international shipping.
8. LTL
LTL stands for Less Than Truckload, and it applies when freight does not fill an entire truck, so shipments from multiple customers can be grouped together. This arrangement is useful when dealing with larger shipments that are not large enough to require a full truck.
9. FTL
FTL stands for Full Truckload, which means a single shipment takes up the entire truck. This is most suitable for large shipments or when you need direct delivery.
10. Pallet Rates
Pallet rates refer to the charges for shipping goods on pallets, and the cost may vary based on pallet size, weight, destination, required service level, and the number of pallets being sent.
Pricing & Weight Terms
11. Cubic Weight
Cubic weight refers to the space a shipment occupies, and it matters most when items are large but not very heavy.
12. Volumetric Weight
Volumetric weight, also known as dimensional weight, is calculated based on the shipment's dimensions. Carriers usually compare this volumetric weight with the actual weight to determine the charge.
13. Dead Weight
Dead weight is usually the actual physical weight of the goods together with the packaging, and this weight is determined using scales. You can compare it with volumetric weight when dealing with freight charges.
14. Chargeable Weight
Chargeable weight is the weight a carrier uses to calculate the freight charge; it can be based on the actual weight, the volumetric weight, or the greater of the two.
15. Fuel Levy
A fuel levy, or fuel surcharge, is an additional charge added to freight charges to cover fluctuating fuel costs; the amount may vary by carrier and can change over time.
16. Remote Area Surcharge
An extra charge known as a remote area surcharge is applied to deliveries in areas that are more difficult or expensive for carriers to access. In Australia, this usually applies to rural, regional and remote areas.
17. Residential Surcharge
A residential surcharge is an additional cost added when something is delivered to a private home rather than to a business address, since deliveries to homes might need special handling or pickup procedures.
18. What Does RRP Mean?
RRP stands for Recommended Retail Price. It’s the price a manufacturer or supplier recommends for selling a product. It’s mainly a retail term, not a freight charge, but sellers often encounter it when dealing with suppliers.
International & Customs Terms
19. What Is DDP Shipping?
DDP stands for Delivered Duty Paid; in the case of DDP, the seller generally handles the delivery and pays all the import duties and taxes up to the agreed destination.
20. DDP vs DDU
DDU stands for Delivered Duty Unpaid. This is when the buyer might have to pay import duties, taxes, and other charges when the goods arrive. With DDP, the seller is responsible for most of the cost.
21. What Is FOB in Shipping?
FOB stands for Free On Board and is used in international trade, meaning responsibility and risk pass to the buyer at the agreed-upon point, and the seller normally loads the goods onto the ship.
22. HS Codes
HS codes, also known as Harmonised System codes, are international codes used to identify goods in trade. They play a crucial role in customs documentation and in determining duties or restrictions.
23. Commercial Invoice
A commercial invoice is a document for international shipments that includes the items, their value, the seller's and buyer's names, and other details required by customs.
24. Incoterms
Incoterms are a set of international trade terms such as FOB and DDP that specify who bears the costs, transport, delivery, and risk between the buyer and the seller.
Delivery & Tracking Terms
25. ATL
ATL stands for Authority to Leave. This means a package can be left at the address without requiring a signature, provided the carrier's rules and instructions are followed. Proof of Delivery refers to evidence that a shipment has been delivered, which may take the form of a signature, electronic confirmation, or other delivery information.
27. Last-Mile Delivery
The last mile is the final stage in moving a shipment, typically involving transport from a local depot to the customer's address.
A delivery exception occurs when some event prevents a shipment from proceeding or being delivered as originally planned; this may be caused by a wrong address, a missed delivery, damaged goods, or transport problems.
29. Tracking Number
A tracking number is a special code assigned to a shipment that both customers and sellers use to monitor its progress in the carrier's tracking system.
30. Transit Time
Transit time is the time a shipment takes from pickup to delivery, and it generally does not include warehouse handling before collection.
31. Delivery Window
A delivery window refers to the estimated time by which a shipment should arrive, and it may be a range of dates or a specific time period.
32. Depot
A depot is a place in which freight or parcels are collected, sorted, stored or transported.
33. Linehaul
Linehaul refers to the principal section of the transportation movement between distribution points, for example between large cities or freight hubs.
34. Tailgate
A tailgate is a hydraulic platform fitted on certain delivery vehicles, and it aids in the loading and unloading of heavy or bulky freight when there is no other loading equipment available at the delivery site.
35. Dangerous Goods
Dangerous goods are items that pose a risk when transported, such as some chemicals, batteries, or any flammable substances. They usually require special packaging, labels, and compliance with transport regulations.
36. Oversized Freight
Oversized freight refers to cargo which is either larger or heavier than the carrier's normal limits; in such cases, you might have to pay additional fees or make use of special equipment or transport.
37. Residential Delivery
Residential delivery refers to goods delivered to a house or other residential address and may differ from business deliveries in the services required or the costs involved.
38. Signature on Delivery
Signature on delivery is a service that requires the recipient, or a person authorised on their behalf, to sign to confirm the package has been received.
39. Redelivery
Redelivery happens when a carrier must make another attempt to deliver the parcel after the first attempt has failed, for example, if no one was at home to receive it or if access was blocked.
40. Freight Quote
A freight quote estimates the cost of transporting goods from one place to another and can vary based on factors including dimensions, weight, pickup and delivery locations, service type, fuel charges, and any additional surcharges.
FAQs
Why is understanding freight terminology important for Australian sellers?
Knowing common freight terms helps you compare different carrier services, understand invoices, identify any additional charges, and be able to explain the various shipping options to your customers.
Why can two carriers charge different prices for the same parcel?
Carriers can use different pricing methods, volumetric calculations, service networks, surcharges, and delivery arrangements. The lowest base rate is not necessarily the final shipping cost.
What information should I have ready when requesting a freight quote?
Have the pickup and delivery postcodes, number of items, size, actual weight, packaging type, and any special requirements ready. With international shipments, you generally also need to provide additional customs and product information.
What should Australian sellers watch for when shipping internationally?
Watch out for customs paperwork, HS codes, Incoterms, duties and taxes, banned or restricted goods, and whether the quoted service covers customs charges.
Shipping terms do not have to be confusing. Once you know the difference between things like volumetric weight, freight forwarding, DDP, POD, and delivery exceptions, it is much easier to compare services and handle shipping for your business.
Unpack the definitions
If you're still uncertain about your shipping options, take the time to research what is a courier, as they can provide faster service for urgent shipments. Or you can reach out to Zappy today and get your shipping journey started.