Freight & AI Glossary

Welcome to Starboard’s Glossary—a curated collection of essential terms in freight forwarding and artificial intelligence (AI). Whether you’re a logistics professional, tech enthusiast, or someone exploring these fields, this glossary provides clear and concise definitions to enhance your understanding and keep you informed.

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Freight Forwarding Terms

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3PL (Third-Party Logistics)

A logistics provider that manages outsourced supply chain functions, including transportation, warehousing, and distribution. Businesses use 3PLs to streamline shipping operations and reduce logistics costs.

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Accessorial Charges

Additional fees for services beyond standard freight transportation such as inside delivery, liftgate service, storage, or waiting time at pickup or delivery locations.

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Air Waybill (AWB)

A non-negotiable shipping document issued by an airline that serves as a contract of carriage and a receipt for goods. It includes tracking details and customs information for international air freight.

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Bill of Lading (BOL)

A legally binding document between a shipper and a carrier that details the type, quantity, and destination of goods. A BOL acts as proof of shipment and is required for freight claims or disputes.

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Cargo Manifest

A detailed list of all cargo loaded onto a ship, airplane, or truck. It includes shipment details such as weight, destination, and consignee information, aiding customs clearance and inventory tracking.

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Consignee / Consignor

Consignee: The person or company receiving a shipment.

Consignor: The sender or exporter of goods.

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Customs Broker

A licensed professional who helps importers and exporters comply with customs regulations, ensuring shipments clear customs smoothly and legally.

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Demurrage

A fee charged when cargo remains at a port or terminal beyond the allotted free time, compensating carriers for equipment and storage use.

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Drop Shipping

A fulfillment model where businesses sell products without holding inventory. Instead, a supplier ships orders directly to customers on behalf of the seller.

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Duties & Tariffs

Government-imposed fees on imported and exported goods. Duties and tariffs affect the total landed cost of international shipments and vary by country and product category.

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EDI (Electronic Data Interchange)

A system that automates freight communication between shippers, carriers, and customs agencies, reducing manual paperwork and improving supply chain efficiency.

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Freight Class

A classification system used in LTL shipping to determine freight pricing based on weight, density, handling difficulty, and liability risks.

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Freight Forwarder

A logistics service provider that arranges shipping for businesses, handling documentation, carrier selection, customs clearance, and freight tracking for domestic and international shipments.

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Incoterms (International Commercial Terms)

Standardized trade terms published by the International Chamber of Commerce (ICC) that define the buyer and seller responsibilities in international trade, including who pays for shipping, insurance, and duties.

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Intermodal Freight

A shipping method that uses multiple modes of transportation (e.g., truck, rail, and ocean) without handling the freight itself when switching between transport types.

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Less Than Truckload (LTL)

A freight shipping method where multiple businesses share space in a single truckload. LTL is cost-effective for smaller shipments that don’t require a full truck.

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TEU (Twenty-Foot Equivalent Unit)

A standard measurement in container shipping, representing the capacity of a 20-foot shipping container. Large vessels and ports measure cargo capacity in TEUs.

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AI & Tech Terms

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AI (Artificial Intelligence)

A branch of computer science that enables machines to perform tasks that typically require human intelligence, such as decision-making, speech recognition, and problem-solving.

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AI Agent

An autonomous AI-powered system that observes its environment, makes decisions, and takes actions to achieve specific goals, often in logistics automation.

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Algorithm

A set of programmed rules or instructions that help computers process data, make decisions, and execute specific tasks efficiently.

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Bot

A software application that performs automated tasks online, such as customer service chatbots, data scraping, or transaction processing.

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ERP (Enterprise Resource Planning)

Software that integrates and manages core business functions, such as finance, supply chain management, and HR, in a unified system.

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Hallucination

When an AI model generates incorrect, misleading, or nonsensical information that is not supported by the input data.

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LLM (Large Language Model)

A type of advanced AI model trained on massive amounts of text data to perform language-based tasks such as text generation, translation, and question answering.

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ML (Machine Learning)

A subset of AI where computers analyze data, recognize patterns, and improve their performance over time without explicit programming.

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NLP (Natural Language Processing)

A field of AI that enables computers to understand, interpret, and generate human language, powering applications like chatbots and voice assistants.

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OS (Operating System)

The foundational software that manages computer hardware and software resources, allowing users and applications to interact with a device (e.g., Windows, macOS, Linux).

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Platform

A digital ecosystem that enables different software applications and users to interact, often providing core services such as APIs, data processing, and user management.

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Rule-Based Coding

A traditional programming method where software follows predefined rules to make decisions, in contrast to machine learning models that learn from data.

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SaaS (Software as a Service)

A cloud-based software distribution model where users access applications via the internet without needing on-premise installations. Examples include CRM platforms and TMS solutions.

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TMS (Transportation Management System)

A logistics software solution that helps freight forwarders and shippers optimize route planning, carrier selection, shipment tracking, and freight cost management.

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This glossary breaks down key freight and AI terms in a simple, no-nonsense way, making it easier for professionals and businesses to keep up with the industry. As logistics and technology evolve, knowing the right terms helps you stay ahead and make smarter decisions.

Bookmark this page and check back for updates as new terms emerge in the ever-changing world of global trade and artificial intelligence.

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