In container logistics, one misunderstood abbreviation can cost a client thousands of dollars in penalties — and a freight forwarder their reputation. The market doesn't tolerate guesswork: if you confuse demurrage with detention or don't know what EIR means, you're working blind.
This glossary isn't compiled from textbooks — it's based on real 2026 cases. Here you'll find only the terms you encounter daily, along with their practical impact on your bottom line.
Time and Money: Where Margin Burns
Free Time. The number of days the carrier or terminal gives you for free to use the container or store it. Always clarify: are these calendar days or business days? (Spoiler: almost always calendar days).
Demurrage. A penalty for container idle time inside the port or terminal beyond the Free Time limit. Paid to the shipping line. The carrier's goal: force you to pick up the cargo faster and free up space at the congested yard.
Detention. A penalty for holding the container outside the port (at your warehouse, in transit) beyond the Free Time limit. Paid to the shipping line. The carrier's goal: get the equipment back into circulation.
Storage. A fee paid to the terminal (port or rail station) for the container physically occupying space on their land. Don't confuse with Demurrage! Often these penalties accrue in parallel, doubling your losses.
THC (Terminal Handling Charge). Terminal handling fee. Payment for loading and unloading operations with the container at the port of origin or destination. Always check whether THC is included in your freight (All-in) or billed separately.
Container Status and Ownership
COC (Carrier Owned Container). A container owned by the shipping line. You pay for its use (freight + D&D) but aren't responsible for major repairs. The standard choice for 90% of cargo.
SOC (Shipper Owned Container). A container owned by the shipper (or a leasing company, such as MyContainers). You're responsible for its technical condition, repairs, and return. Profitable for one-way shipments or specific cargo types, but requires smart repositioning management.
TEU (Twenty-foot Equivalent Unit). A standard capacity unit. 1 TEU = one 20-foot container. A 40-foot container = 2 TEU. Used to assess port and vessel capacity.
FEU (Forty-foot Equivalent Unit). 1 FEU = one 40-foot container (or two 20-foot containers).
Documents Without Which Cargo Won't Move
B/L (Bill of Lading). The primary title document. Confirms that the carrier has accepted the cargo and serves as the contract of carriage. Can be original (Original) or telex release (Telex Release / Surrendered) to speed up cargo release.
EIR (Equipment Interchange Receipt). The container's "passport" at the terminal gate. It records all defects (dents, rust) at the moment the equipment is handed over from the carrier to the forwarder or vice versa. Rule: if a defect isn't noted in the EIR upon receipt, it can be attributed to you when returning the empty box, and you'll receive a repair bill.
VGM (Verified Gross Mass). The confirmed total mass of the loaded container. A mandatory SOLAS requirement. If VGM isn't submitted or differs from the actual weight by more than the allowable limit (usually 5-10%), the container simply won't be loaded onto the vessel.
Cut-off. Deadline. There are several types:
CY Cut-off: deadline for delivering the loaded container to the terminal.
SI Cut-off (Shipping Instructions): deadline for submitting data for Bill of Lading preparation. Missing the SI Cut-off = penalty for manual document processing (Amendment fee).
Operational Slang and Specifics
Stuffing / Stripping. Loading cargo into a container and unloading (unpacking) it.
Repositioning (Repo). Moving an empty container from a surplus zone to a deficit zone. Carriers often offer preferential rates (repo rates) for such shipments to balance their fleet.
Dead Freight. A penalty paid by the shipper if they booked space on a vessel (e.g., an entire 40-foot container) but didn't provide the cargo or provided less volume without notifying the carrier in time. The full cost of the booked space is paid.
Rolled Cargo. A situation where your container wasn't loaded onto the planned vessel (due to carrier overbooking, customs issues, or late arrival) and was transferred to the next sailing.
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