Shipping Glossary

Essential shipping and logistics terminology explained. Learn the definitions behind dimensional weight, CBM, chargeable weight, and other key concepts used in freight and parcel shipping.

This glossary covers the most common terms used in international trade, customs clearance, and cross-border logistics. Each definition includes context for how the term affects import costs, shipping calculations, or customs declarations. Terms are sourced from official WCO, IATA, and carrier documentation and reviewed regularly for accuracy.

A

Actual Weight (Gross Weight)

The physical weight of a package measured on a scale.

B

Billable Weight

Synonym for chargeable weight—the weight used for billing.

Brokerage Fee

Fee charged by a customs broker to clear your goods.

C

Chargeable Weight

The weight carriers use to bill you—the greater of actual or dimensional weight.

CBM (Cubic Meter)

A volume measurement equal to 1m × 1m × 1m, used for freight.

Courier vs Freight

Two shipping modes with different pricing and handling methods.

Customs Value

The value used by customs to calculate import duties.

CIF (Cost, Insurance, Freight)

Customs valuation method including goods, shipping, and insurance.

D

Dimensional Weight

Weight calculated from package dimensions rather than actual weight.

Divisor (DIM Factor)

The number used to convert volume into dimensional weight.

Declared Value

The value stated on shipping documents for customs and insurance.

De Minimis

Value threshold below which imports are exempt from duty/tax.

F

FOB (Free On Board)

Customs valuation method based on goods value only, excluding freight.

G

GST (Goods and Services Tax)

Consumption tax similar to VAT, used in Australia, Canada, and others.

H

HS Code

International product classification code used for customs.

I

Incoterms

International rules defining buyer/seller responsibilities in trade.

Import Duty

Tax charged by customs on imported goods.

R

Rounding (Weight)

Carriers round weights up to standard increments for billing.

T

Tariff

A tax on imported goods, often used interchangeably with duty.

V

Volumetric Weight

Another name for dimensional weight, based on package volume.

VAT (Value Added Tax)

Consumption tax charged on imports in many countries.

Need to calculate shipping weights?

Use our free calculators to determine dimensional weight, CBM, or chargeable weight for your shipments.

Dimensional Weight Calculator CBM Calculator Chargeable Weight Calculator