Shipping terms and definitions
Shipping terms and definitions
Shipping terms and definitions
A
Air freight
International air freight shipping allows you to import and export shipments weighing more than 150 lbs. With our international service options, you can ship to up to 130 countries and territories and get time-definite delivery.
Air waybill
An air waybill, also known as a waybill or shipping label, is a contract between the shipper and the carrier. It provides key information for the shipper and is also used for tracking the shipment and contains barcodes to identify the shipment electronically.
It's easy to create an air waybill online for FedEx shipments. All you need to do is follow the prompts on our website and print your label at home. Or you can choose to print your label at a convenient FedEx location. Your online shipping label will be documented in your FedEx account for reference.
Ancillary Fee
Additional costs which may apply when you select a value-added solution to manage a shipment’s special clearance needs. The specific solutions may differ by country, depending on if additional processing is required by a local regulatory agency or if you or your importer request special processing from a FedEx customs broker.
Automated commercial environment (ACE)
A commercial trade processing system used by U.S. Customs to automate border processing, enhance border security, and support economic security with lawful international trade and travel. This system helps enforce trade and contraband laws and efficiently process goods to expedite the customs process.
Automated export system (AES)
The system used by the U.S. government to collect data on exports. Exporters are legally required to use it when filing Electronic Export Information for each shipment.
B
Bill of Lading (BOL)
It’s a document used to ship less-than-truckload (LTL) freight. You can also create a freight label online, which means easier record keeping and shipment tracking.
A Bill of Lading has several purposes:
• It acts as your receipt and shipping label.
• It contains the details of your shipment, including content, origin, and destination.
• It serves as a legal contract of carriage with terms and conditions of FedEx Freight® shipments.
• It’s used to calculate charges.
• It includes the purchase order number, other reference numbers, and freight classification.
FedEx Freight is the first nationwide LTL carrier to not require a handwritten bill of lading (except for shipments containing hazardous materials). You can download a blank Bill of Lading form, complete the editable fields, and print it. Or you can print it and fill it out by hand. You give the Bill of Lading to the FedEx driver who picks up your freight shipment. They give it to your recipient upon delivery.
Billing address
The address connected to a customer’s payment account.
Bonded warehouse
The customs-controlled facility used for the retention of imported goods upon their entry into the country. Goods that have not been formally cleared by customs are held here until the duty fee is paid. These facilities are used by businesses to help improve cash flows, since the assessment of duty and tax is applied once an order is ready to leave the location.
Broker
An individual or party that acts as a professional agent for the exporter and/or importer, facilitating the customs clearance process on their behalf and working to resolve delays or issues if they arise.
Bureau of Industry and Security
A federal agency under the U.S. Department of Commerce which regulates the export of most commercial items.
C
Caged shipment
A shipment in a secure holding area at customs, where it remains until the correct information is obtained to finalize customs clearance.
Carriage value
See definition for Declared Value.
Certificate of origin
A document that certifies the country/territory where the product was made (i.e., its origin). This common export document is needed when shipping to many international markets. It may be required in order to obtain preferential tariff treatment under several Free Trade Agreements.
Claim
If a package is lost, damaged, or missing items, the shipper can file a claim. FedEx may initiate a trace to locate the package or determine when it was damaged. The shipper can log in to their account to track the claim.
Clearance entry fee (CEF)
A fee that is charged when a FedEx International Ground shipment to or from Canada is processed as a brokerage-inclusive shipment and FedEx arranges for customs clearance services. This fee is charged in addition to any applicable duties and taxes.
Commerce control list
A list maintained by the Bureau of Industry and Security, designed to identify whether or not your product has an Export Control Classification Number (ECCN).
Commercial invoice (CI)
The primary document used by most international customs agencies for import control, valuation and duty determination. This document is prepared by the shipment’s exporter. Shipment importers require this document to prove ownership and arrange payment of duties and taxes.
Commodity
An item that has commercial value, and is reasonably interchangeable with other items of the same type. Most non-document shipments are commodities, and therefore require a Commercial Invoice for customs clearance.
Compliance
The state of adhering to all the rules and regulations that govern the exporting and importing of goods across borders, as determined by government agencies.
Compliance plan
A documented process that is company-specific and outlines how the business will operate within the required governmental rules and regulations. Plans usually contain standard operating procedures (SOPs), training materials and frequency schedules, key contacts, current commodity lists, and more.
Consignee
A person or company who receives the shipment.
Custom packaging
A package specially designed by a customer. FedEx helps customers design custom shipping packaging, including specific dimensions and packaging materials. Learn more by visiting our FedEx Packaging Lab page.
Customs broker
An agent that works on behalf of the exporter and/or importer to help shipments clear customs by minimizing delays and holdups. If a delay does occur, this agent works to resolve it, saving the exporter and/or importer the hassle of resolving it themselves.
Customs clearance
The process in which customs, the government service responsible for administering international trade laws, inspects and regulates every shipment to make sure the contents comply with the importing country or territory’s regulations. Every time you ship internationally, you’ll need to take a few additional steps to prepare your shipment for the customs clearance process.
Customs declaration
A document that traditionally accompanies exported goods and includes information such as the nature of the goods, their value, the recipient and the shipment’s ultimate destination. This document accompanies all controlled goods being exported under the appropriate permit.
Customs hold
A pause or stop in a shipment’s progress through the customs clearance process, enacted by customs agents who require additional information or wish to examine the shipment further. Final clearance remains pending for shipments while in this state. A hold can occur for a variety of reasons: Additional documents may be required or customs officials may need a further explanation of the shipment contents and/or their intended use. An intentional or random shipment inspection may also occur during this state.
Customs self assessment (CSA)
A streamlined clearance program available to low-risk, pre-approved importers, carriers and registered drivers when shipping eligible goods. This program simplifies some border requirements, allowing some shipments to be processed more efficiently.
Customs value
The total value of all items in a shipment, which determines how much the recipient must pay in duties. For example, if the exporter is shipping 5 handbags each valued at $200 USD, they should enter a customs value of $1,000 USD.
D
Dangerous goods
Dangerous Goods are commodities that, when transported, pose some form of danger to people, animals, the environment, or the carrier. Dangerous goods can be either acceptable or unacceptable for shipping. The latest list of Dangerous Goods can be accessed at www.iata.org.
There are nine classifications of Dangerous Goods that identify the type of danger each possesses. These are grouped into categories called accessible and inaccessible which determine the FedEx Service you can ship with.
Declared value
The maximum liability FedEx assumes in connection with a shipment, including loss, damage, delay, misdelivery, nondelivery, misinformation, any failure to provide information, or misdelivery of information relating to the shipment.
It is the shipper’s responsibility to declare value, and that is our maximum liability. It is also the shipper's responsibility to prove actual damages. Any loss in excess of the declared value is assumed by the shipper.
You may transfer this risk to an insurance carrier of your choice through the purchase of an insurance policy. FedEx does not provide insurance coverage of any kind.
Delivery exception
FedEx updates the status of a package during shipping and delivery. A customer can look up the status of their package on our website or FedEx Delivery Manager. The status "delivery exception" means that a package is temporarily delayed while in transit. The reason could be inclement weather, a natural disaster, a vehicle issue like a flat tire, or other conditions.
Delivery now pending
FedEx updates the status of a package during shipping and delivery. A customer can look up the status of their package on our website or FedEx Delivery Manager. The status "delivery now pending" means that delivery commitments were changed based on some type of delay.
Denied parties
Individuals, companies and organizations whose export privileges have been denied by the Department of Commerce’s Bureau of Industry and Security. These parties appear on the bureau’s Denied Persons List. American companies and individuals may not participate in export transactions with these parties.
Density
Density is defined as weight per volume and is usually expressed in pounds per cubic foot. Density is also described as the heaviness of an object compared to its size (dimensions). For example, a car engine is more dense than a Styrofoam block of the same dimensions.
Density is the main characteristic used to classify shipments for rating purposes. A shipment's density calculation helps the carrier bill for the shipment's weight and the amount of space it uses in the truck.
A low-density shipment (large but lightweight) may be billed at a higher rate than if the shipment were billed by its weight alone.
Dimensional weight (dim weight)
Dim weight is the amount of space a package occupies in relation to its actual weight. For each shipment, you are charged based on the dimensional weight or actual weight of the package—whichever is greater.
Documents and forms
Also known as customs documents, these include information needed for international shipping. Depending on what and where a customer is shipping, certain documents may be required. For example, a Commercial Invoice that is used by most international customs agencies for import control.
FedEx allows shippers to upload their documents via FedEx® Electronic Trades Documents to avoid delays at customs.
Domestic shipping
Domestic shipping refers to shipping a package via a carrier within a country's borders. For example, in the U.S., this includes shipments sent within all 50 states, DC, and Puerto Rico, as it is considered a U.S. territory.
Drop Box
FedEx Drop Boxes offer customers a convenient, no-cost alternative to on-call pickups. Drop Boxes accept FedEx Express and FedEx Ground shipments and returns.
There are thousands of FedEx Drop Boxes available nationwide. Find one at a shopping center, grocery store, or FedEx Office location near you. All drop boxes are designed to accept packages up to 20"x 12" x 6".
Drop off
FedEx locations in retail stores and independently-owned shipping centers where you can drop off FedEx shipments. Locations include:
• FedEx Office
• FedEx Ship Center®
• FedEx at Walgreens
• FedEx at Dollar General
• FedEx Office inside Walmart
• Office Depot® and Office Max®
• FedEx Authorized ShipCenter®
• FedEx® Drop Box
Drop shipping
Drop shipping is a form of retail business wherein the seller accepts customer orders without keeping stock on hand.
Dual-use item
An item that has both a commercial use and a potential military application, as determined from a political or diplomatic perspective.
Duties and taxes
Fees collected on importing and exporting goods. Duty is charged to keep competition fair by bringing the cost of imported goods up to the same cost as those produced within the importing country. The person or business receiving the shipment is legally obliged to pay duties unless the sender has agreed to accept these charges in the contract of sale. Duties are also sometimes known as tariffs.
E
Electronic export information (EEI)
The electronic data that serves as a declaration of merchandise leaving the U.S. for export to a foreign country. This data is filed in the Automatic Export System (AES) and includes information about the sender, recipient and goods being exported. The EEI is used for export control and official U.S. export statistics.
Electronic trade documents (ETD)
An automated international shipping solution that allows you to submit your customs documentation electronically so you no longer need to print multiple copies.
Employer identification number (EIN)
A nine-digit number assigned to a business by the IRS, used to confirm the business’s license and identify it for tax purposes. A business may need to obtain an EIN for a variety of reasons, including (but not limited to) if it has employees, operates as partnerships or corporations, has tax-deferred pensions plans or operates under a number of other circumstances.
End of business day
When business operations close for the day. FedEx usually stops delivering at 8 p.m.
Estimated delivery
FedEx updates the status of a package during shipping and delivery. A customer can look up the status of their package on our website or FedEx Delivery Manager. The status "estimated delivery" refers to the time window when a package is scheduled to arrive. Estimated delivery isn’t guaranteed and can be affected by weather, natural disasters, and other conditions.
Export
A shipment transported out of a country/territory.
Export administration regulations (EAR)
Laws that govern the export of items that are intended for commercial use, but could potentially be used for military purposes.
Export broker
See definition for Customs Broker.
Export control classification numbers (ECCN)
Alphanumeric codes used to identify “dual-use items,” or items that have both a commercial use and a potential military application. Knowing the correct ECCN for a commodity can help you determine whether or not you need an export license in order to ship it internationally.
Export license
A government document permitting participation in the export of designated goods to certain destinations.
F
FedEx Express
A fast FedEx service that includes same-day, overnight, 2-day, and 3-day shipping.
FedEx Freight® box
A durable container that encloses and protects freight during shipment. Our flat-rate packaging option is an easy way for businesses to ship and return less-than-truckload (LTL) freight. Freight boxes may also be called shipping cartons or pallet boxes.
FedEx Ground
A ground FedEx shipping service that delivers packages 150 lbs. or less to businesses or commercial addresses Monday through Friday, to all 50 states and all U.S. business addresses. Shipments are carried over-the-road in trucks. Delivery within the contiguous U.S. takes 1-5 business days. Shipping to and from Alaska and Hawaii takes 3-7 business days.
FedEx Home Delivery®
A FedEx Ground shipping service. It’s faster to more residential locations than UPS Ground. FedEx Home Delivery also delivers to more residential locations than UPS Ground on the weekend.
FedEx overnight shipping
A FedEx next-day shipping service that delivers packages and freight in the U.S. Monday through Friday. You can choose early morning, mid-morning, or afternoon delivery.
FedEx Packaging Lab
A FedEx facility that offers package, freight, and material testing. Advanced packaging design services are also available to increase package durability and protection during transit. The FedEx Packaging Lab offers free packaging testing to any FedEx account holders.
FedEx SmartPost
Now known as FedEx Ground® Economy. A cost- effective U.S. residential shipping option for low-weight, non- urgent, high-volume shipments that utilizes the FedEx Ground delivery network. FedEx Ground Economy provides efficient package delivery to all U.S. residential addresses.
Free trade zone (FTZ)
A geographic area where goods may be landed, stored, handled, manufactured or reconfigured and re-exported under specific customs regulations, generally without being subject to customs duty.
Freight
Any shipment over 150 lbs. is considered freight. Freight shipping is the transportation of goods, commodities and cargo in bulk by ship, aircraft, truck or intermodal via train and road. It can be transported domestically or internationally by land, air, or sea.
Freight forwarder
A company that gathers shipments from many companies, consolidates them and purchases space on ocean carriers and/or airlines to move the collection as one large shipment. These companies can arrange the entire shipment movement from pickup to end delivery, complete with prepaid shipment labels, required customs documentation and customs brokerage.
Fulfillment center
Location where a product is packaged and made ready for delivery.
H
Harmonized code
A six-digit code belonging to an international nomenclature system (The Harmonized System) designed to classify traded goods on a common basis for customs purposes. Including the correct Harmonized Code on your Commercial Invoice for international shipments can help prevent delays, fines and/or more expensive tariffs.
Hazardous materials
Hazardous materials, also called hazmat, are substances or chemicals that pose a health hazard, a physical hazard, or harm to the environment. Hazardous materials are defined and regulated by the U.S. Environmental Protection Agency (EPA), U.S. Occupational Safety and Health Administration (OSHA), U.S. Department of Transportation (DOT), and U.S. Nuclear Regulatory Commission (NRC).
High-value shipping
If you're shipping items like valuable artwork or jewelry, your declared value will be higher. See the FedEx Service Guide for more information on declared value maximum liability. If the declared value of your shipment is over $500, a signature is required upon delivery.
Hold at location
A request submitted by a customer to keep a package at a FedEx location for up to 7 days before being returned to the shipper.
I
Import
A shipment brought into one country/territory from another.
Importer of record
The entity or individual responsible for ensuring that legal goods are brought into a country/territory in accordance with the given region’s laws. This party is also responsible for filing the required customs documents.
In transit
FedEx updates the status of a package during shipping and delivery. A customer can look up the status of their package on our website or FedEx Delivery Manager. The status "in transit" means that your package is on its way to its final destination. It does not necessarily mean that your package is in a moving vehicle such as an aircraft or truck. It may be at a FedEx facility.
Incoterms
A set of rules published by the International Chamber of Commerce (ICC) to define the responsibility of sellers and buyers during international transactions. This term is an abbreviated way to say “International Commerce Terms.”
Insulated shipping
Packaging used to ship temperature-sensitive products, like food, to deliver product freshness. For more information, refer to the FedEx perishable shipping page.
International air waybill
Another term for the FedEx shipping label required for all international shipments. This label captures all the key details about the contents of the shipment, its destination and the means of delivery. You can fill one out online using a FedEx Ship Manager® platform or fill it out by hand.
International traffic in arms regulations (ITAR)
Laws governing the export of items created as military/defense items and space-related technology.
L
Landed cost
This is the total cost of a landed shipment to a buyer. It includes the purchase price of the item, transportation cost, insurance, and duties and taxes up to the port of destination. Landed costs are also known as 'total landed costs' and 'delivered price.'
Lead time
The time it takes for a package to arrive from point A to point B. For example: The time from a customer placing an order, to the arrival of that order at the customer’s doorstep. This includes order processing, manufacturing, and shipping time. Our shipping service portals can help lead you to specific transit information.
Less-than-truckload (LTL)
An LTL (less-than-truckload) freight shipment consists of goods, commodities or cargo that weighs more than 150 lbs. It's usually palletized. And as its name suggests, it's shipped via truck and requires only a portion of the trailer space.
Logistics
The coordination of transportation and storage of goods from the origin location to the delivery location. Analyze what you’re shipping, where it’s going, and when it needs to be there to create a logistics scenario that meets your schedule and your budget.
M
Mockup/prototype
Trial packages used to test the integrity of the package and products before taking the product to market in production packaging.
Multiweight shipments
Multiweight pricing automatically compares the total cost of sending multiple shipments versus treating all the packages as a single shipment. Then it automatically applies the lower pricing. You can enable multiweight pricing in your account once and it will be applied to all shipments.
N
NAFTA certificate of origin
A document used by Canada, Mexico, Puerto Rico and the United States to determine if imported goods qualify for reduced or duty-free entry.
Non-resident importer (NRI)
A company or organization located outside of Canada that ships goods to customers in Canada and assumes responsibility for customs clearance and other import-related requirements. Non-resident importer status allows non-Canadian companies to become approved importers of record for goods brought into Canada and pay any assessed duties and/or taxes.
O
Off-the-shelf packaging
Packaging supplies that businesses can purchase and use directly.
Order fulfillment
Order fulfillment is the complete process from point of sales inquiry to delivery of a product to the customer. Sometimes, it describes the narrower act of distribution or the logistics function. In the broader sense, it refers to the way firms respond to customer orders.
Other regulatory agencies (ORA)
A designation of governmental agencies that help govern the importing and/or exporting of goods, but are not customs agencies themselves. For example, the U.S. Food and Drug Administration and the U.S. Fish and Wildlife Service both shape international trade through non-customs roles.
Out for delivery
FedEx updates the status of a package during shipping and delivery. A customer can look up the status of their package on our website or FedEx Delivery Manager. The status "out for delivery" means your package was scanned by a package handler and placed on a pallet to be loaded on a vehicle for delivery. You can check the estimated delivery window online.
P
Package design
The custom solution created to fit your packaging needs to prevent damage or loss when shipping.
Packaging
Packaging is the process of providing a protective and informative covering to the product in such a way that it protects the product during material handling, storage, and movement and provides useful information to all the concerned parties about the content of the package.
Packaging optimization
Changing the size and shape of packaging to reduce wasted space.
Packing list
A document prepared by the exporter that lists detailed packing information about the goods being shipped. It usually includes the dimensions and weight of the package contents, as well as information about how the goods were packed.
Pallet
Pallets are portable platforms used for handling, storing, and shipping products. A pallet provides a sturdy base for stacking multiple items, and it’s constructed to make it easy to move with a forklift or pallet jack. Pallets can be made of wood or plastic.
Parcel
A package or envelope under 150 pounds and includes anything that isn’t freight.
Peak season
In our industry, we refer to the period between the beginning of November and the end of December as peak season. Inside of peak season, there is a critical three to four weeks—roughly from Thanksgiving to Christmas—of exceptional package volume.
For our LTL freight customers, there are two peak seasons. Their busiest months are April through May and September through October.
Pending
FedEx updates the status of a package during shipping and delivery. A customer can look up the status of their package on our website or FedEx Delivery Manager. The status "pending" means that delivery commitments were changed based on some type of delay and our efforts to mitigate that delay. You can track your package, or you can use FedEx Delivery Manager® to access the most up-to-date information regarding your package.
Perishable shipment
The International Air Transport Association (IATA) defines a shipment as perishable if its contents will deteriorate over a given period of time if exposed to harsh environmental conditions, such as extreme temperatures or humidity. Seafood, dairy, plants, meat, fruits and vegetables, and live tropical fish are all examples of perishable shipments.
Pickup
Request from a customer for FedEx to pick up a shipment from a specific location.
Picture proof of delivery
A photograph that shows where a residential package was delivered at the recipient's address. Visual confirmation of the delivery helps reduce customer service calls to your business. Customers need only to track their package to see their picture proof of delivery.
Power of attorney (POA)
A legal document that authorizes one party to act on another’s behalf in private affairs, business, and other legal matters. This document is sometimes also known as a Letter of Attorney.
Pro forma invoice
A document prepared by the exporter prior to sending out a shipment, informing the buyer of the goods to be sent, their value, and other key specifications.
R
Recipient
A person or business that is receiving a package. The recipient can make changes to the shipments they are expecting using FedEx Delivery Manager®. We offer tools that business owners can use to inform customers (recipients) about the benefits of FedEx Delivery Manager.
Redirect address
Sending a package that has already shipped to a different location than the original destination. Customers can choose to redirect their shipment to a different address or to hold at a nearby FedEx location for pick up.
Retail packaging
The original packaging used when purchased from a retailer. This is meant for on-the-shelf applications, not shipping applications.
Return label
A shipping label created to return a package to the shipper.
S
Schedule B code
A 10-digit number based on the Harmonized Commodity Description and Coding System (HS), which is used to classify physical goods for export to another country. Every physical product has a Schedule B code.
Service alerts
Notifications on the FedEx website, through email or text, that indicate service disruption due to weather, natural disaster, or other circumstances.
Shipper's export declaration (SED)
Now known as Electronic Export Information. An official U.S. government document that assists in trade regulation and serves as a census record of U.S. exports. This form is required for all U.S. exports with commodities valued at US $2,500 or higher. The shipper fills out this form with the value, weight, consignee, destination, and other details about their export shipment, as well as Schedule B identification numbers.
Shipping label
A shipping label contains the information a carrier needs to get your package from its origin to its destination. It includes a scannable barcode with a tracking number that enables the carrier to provide delivery updates.
Find more info and create a shipping label.
Signature required
Certain packages require a signature to be delivered to the recipient.
• Indirect signature: FedEx will obtain a signature from someone at the delivery address or from somebody nearby, such as a neighbor or building manager
• Adult signature: FedEx obtains a signature from someone at the delivery address who is at least the age of majority (no longer a minor) in the destination country. In the U.S., that age is 21.
• Direct signature: someone at the recipient's address must sign for the delivery
Certain packages require a signature to be delivered to the recipient.
• Indirect signature: FedEx will obtain a signature from someone at the delivery address or from somebody nearby, such as a neighbor or building manager
• Adult signature: FedEx obtains a signature from someone at the delivery address who is at least the age of majority (no longer a minor) in the destination country. In the U.S., that age is 21.
• Direct signature: someone at the recipient's address must sign for the delivery
Surcharge
A surcharge is an additional charge added to a good or service to the initial price. For example, surcharges are applied to shipping during peak season.
Sustainable packaging
Environmentally-friendly packaging that causes less waste or damage to the environment throughout its lifecycle. This can mean the packaging is sourced responsibly using materials like bamboo that regrow quickly and/or materials whose farming and manufacturing are done without exploiting workers. It can also mean the sustainable packaging is recyclable and/or non-toxic.
T
Tariff
Also called customs duty, a tariff is a tax levied upon goods as they cross national boundaries, usually by the government of the importing country. The words tariff, duty, and customs can be used interchangeably.
Temperature-controlled shipping
Maintaining a certain temperature range during shipping for products like pharmaceuticals and perishables. FedEx offers a range of temperature-controlled services, including room-temperature shipping, refrigerated/cold shipping, frozen shipping, and deep-frozen shipping.
Terms of sale
The point at which a product’s sellers have fulfilled their obligations to a shipment, so the shipment is said to have been delivered to the buyer. Terms of sale are shorthand expressions that set out the rights and obligations of each party when transporting the goods.
Thermal packaging
Packaging that maintains a specific temperature during transportation. See our temperature-controlled shipping options for more information. Purchase thermal-insulated boxes through our cold shipping solution.
Tracking
The process of capturing, reporting, and identifying where a package is in the shipping process. Tracking usually involves a code composed of numbers and/or letters that is unique to the package, which can be entered into the tracking system to check the status of the shipment.
U
Unboxing
The unpacking of new products usually performed by the package recipient. Unboxing is sometimes captured on video and uploaded online to show other consumers the product and any accessories included.