A comprehensive glossary of shipping, freight, and customs clearing terminology used in South Africa and international trade.
A
Ad Valorem Duty — Customs duty calculated as a percentage of the goods' value. Example: 25% ad valorem on clothing.
Airway Bill (AWB) — The air freight equivalent of a bill of lading. A receipt and contract for air cargo.
B
BAF (Bunker Adjustment Factor) — Fuel surcharge applied by shipping lines to cover fluctuating oil prices.
Bill of Lading (B/L) — The most important sea freight document. Functions as receipt, contract, and document of title. Learn more →
Bonded Warehouse — An approved storage facility where imported goods are held without paying duty or VAT. Learn more →
Breakbulk — Cargo that's not containerised — loaded individually onto vessels. Learn more →
C
CAF (Currency Adjustment Factor) — Surcharge to offset exchange rate fluctuations.
CBCU (Customs Border Control Unit) — SARS division responsible for physical inspection of imports. Learn more →
CBM (Cubic Metre) — Standard unit for measuring cargo volume. Key for LCL pricing.
CIF (Cost, Insurance, Freight) — Incoterm where the seller pays freight and insurance to the destination port.
Clearing Agent — A licensed professional who handles customs clearance documentation with SARS. Learn more →
Consignee — The receiver/importer of goods.
Container — Standardised steel box for shipping. Common sizes: 20ft, 40ft, 40ft HC. Sizes reference →
D
Demurrage — Charges for keeping a container at the port beyond the free storage days.
Detention — Charges for keeping a container outside the port beyond the free period.
Duty — Tax on imported goods. How duty works →
E
EDI (Electronic Data Interchange) — Electronic system V & S Freight uses to submit customs entries to SARS.
ETA (Estimated Time of Arrival) — When a vessel is expected to arrive at port.
ETD (Estimated Time of Departure) — When a vessel is expected to depart origin.
F
FCL (Full Container Load) — An entire container booked for one shipper. Learn more →
FOB (Free on Board) — Incoterm where the seller's responsibility ends when goods are loaded on the vessel.
Freight Forwarder — A company that organises the transportation of goods. Learn more →
G-H
Gross Weight — Total weight including packaging and container.
HS Code (Harmonised System) — International product classification number for customs. Full guide →
I
IMDG Code — International Maritime Dangerous Goods Code for dangerous goods by sea.
Incoterms — International trade terms defining buyer/seller responsibilities. Full guide →
ITAC — International Trade Administration Commission. Issues import permits.
L
LCL (Less than Container Load) — Shared container space for smaller shipments. Learn more →
Letter of Credit (L/C) — Bank-guaranteed payment instrument. Trade finance guide →
M-N
Manifest — List of all cargo onboard a vessel.
NRCS — National Regulator for Compulsory Specifications. Certifies products meet SA safety standards.
Notify Party — Person/company to be notified when cargo arrives.
P-R
Packing List — Document detailing the contents of each package in a shipment.
POD (Port of Discharge) — Port where cargo is unloaded (e.g., Durban Port).
POL (Port of Loading) — Port where cargo is loaded (e.g., Shanghai, Rotterdam).
RoRo (Roll-on Roll-off) — Vessel type for wheeled cargo. Guide →
S
SAD500 — South African customs declaration form for imports.
SADC — Southern African Development Community. Trade agreements →
SARS — South African Revenue Service. Administers customs and collects duty and VAT.
SEZ — Special Economic Zone. Guide →
Shipper — The sender/exporter of goods.
T
TEU (Twenty-foot Equivalent Unit) — Standard unit for counting containers. 1 TEU = one 20ft container.
THC (Terminal Handling Charge) — Port charge for handling containers at the terminal.
Telex Release — Electronic release of cargo without original bill of lading.
Transhipment — Transferring cargo from one vessel to another at an intermediate port.
V-W
VAT (Value Added Tax) — 15% tax on imports. How import VAT works →
Wharfage — Charge for using port infrastructure.
Questions about any of these terms? Contact V & S Freight → | Call: 076 982 0036