Freight Glossary — Key Terms Explained

All key freight and logistics terms explained in plain language.

FTL LTL CMR ADR INCOTERMS EXW DAP DDP
FTL

Full Truck Load. The entire trailer is booked for a single shipment. Recommended from ~18 pallets or 10,000 kg. Faster and more direct than LTL.

LTL

Less Than Truck Load (groupage). Your shipment shares the vehicle with others. Cost-effective for 1–15 pallets. +1-2 days transit vs. FTL.

CMR

Convention on the Contract for International Carriage of Goods by Road. The primary legal document for road freight. Establishes carrier liability limited to 8.33 SDR per kg.

ADR

European Agreement concerning International Carriage of Dangerous Goods by Road. Regulates transport of hazardous materials across 9 classes.

INCOTERMS

International Commercial Terms (ICC). Define who bears transport costs and risk: EXW, FCA, CPT, CIP, DAP, DPU, DDP and others.

EXW

Ex Works. Buyer organises all transport from seller's premises. Maximum seller obligation minimum.

DAP

Delivered At Place. Seller delivers to named destination; buyer handles import duties.

DDP

Delivered Duty Paid. Seller bears all costs and risks to buyer's door — including customs.

TIR

Transports Internationaux Routiers. International customs convention for trucks transiting non-EU countries (Turkey, Ukraine etc.).

Cross-Docking

Goods transferred directly from incoming to outgoing vehicles at a logistics hub without storage.

Freight Forwarder

Company that arranges transport on behalf of shippers. Combines own assets with a carrier network to provide flexible capacity.

Spot Rate

Market rate for a single shipment. Fluctuates by season and capacity. vs. contract rates (long-term fixed pricing).

Cabotage

Domestic transport within a country by a foreign-registered truck. Strictly regulated in the EU.

Bill of Lading

Formal transport document. In road freight: CMR waybill. Confirms cargo handover to carrier.

Dispatch

Coordination of transport operations. Available 8:00–18:00 at Spedition.

Questions about freight terms? We can help.

Have questions? Our dispatch team is available 8:00–18:00.

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