In 2026, the language of logistics has evolved, and if you don’t understand the terminology, you can’t fully understand your shipping data.
This updated parcel shipping glossary explains the terms shaping modern shipping operations, so you can move from definitions to decisions.
A
Accessorial
An additional charge applied for services beyond standard transportation, such as residential delivery or special handling.
Access Point
A carrier-authorized location where customers can pick up or drop off shipments, offering an alternative to residential delivery.
Additional Handling Surcharge
A fee charged when a package exceeds specific weight, dimension, or packaging thresholds that require manual handling.
Address Correction Fee
Applied when a shipment contains incomplete or inaccurate delivery information that must be corrected by the carrier.
Actual Weight
The physical weight of a shipment as measured on a scale; does not encompass the size or volume.
B
Base Rate
The standard transportation charge before surcharges and accessorial fees are applied.
Billable Weight
The greater of actual weight or dimensional weight; used by carriers to calculate shipping cost.
BOPIS (Buy Online, Pick Up In Store)
A fulfillment method allowing customers to order online and retrieve items at a physical retail location.
C
Carrier
A company responsible for transporting goods from origin to destination.
Carrier Diversification
A strategy of using multiple carriers to reduce risk, improve service coverage, and manage costs.
Claim
A formal request submitted to a carrier for reimbursement due to a lost, damaged, or delayed shipment.
Commercial Invoice
A required document for international shipments detailing goods, value, and country of origin.
Consignee
The person or business receiving a shipment.
Cross-Docking
A logistics strategy where inbound shipments are transferred directly to outbound transportation with minimal storage.
D
Declared Value
The monetary value assigned to a shipment for liability and insurance purposes.
Delivery Area Surcharge (DAS)
A fee applied to shipments delivered to ZIP codes designated as remote or extended service areas.
Demand Surcharge (Peak Surcharge)
Temporary pricing adjustments implemented during high-volume shipping periods.
De Minimis
A value threshold under which imported goods may enter a country duty-free.
Dimensional Weight (DIM Weight)
A pricing method where cost is calculated based on package size or volume rather than actual weight.
Disbursement Fee
A fee charged when a carrier advances duties or taxes on behalf of the importer.
Distribution Center (DC)
Facility where products are received, stored temporarily, and shipped to customers or retail locations. Prioritizes fast order processing and outbound movement rather than long-term storage.
Duty
A government tax applied to imported goods based on their classification, value, and country of origin.
E
Earned Discount
A pricing incentive based on shipping volume or revenue tiers.
Extended Delivery Area
A geographic location outside a carrier’s standard delivery footprint that triggers additional fees.
Express Delivery
Expedited shipping service; guarantees faster transit times than ground service.
F
Final Mile (Last-Mile Delivery)
The final stage of shipment from a local hub to the end customer.
Freight
Goods transported in bulk, typically larger than parcel shipments.
Fuel Surcharges
Additional fees added to the base rate to account for the regional or seasonal changes in fuel prices. This extra charge is intended to pass on the fluctuations in fuel costs to the customer.
G
General Rate Increase (GRI)
An annual adjustment to carrier base rates, typically implemented at the start of the year.
Gross Weight
The total weight of a shipment, including the product, packaging, and any pallets or containers.
Ground Shipping
Economy transportation service using ground networks.
H
Harmonized Tariff Schedule (HTS) Code
A classification number used to determine tariff rates on imported goods.
Hub-and-Spoke Network
A distribution model where shipments move through centralized hubs before final delivery.
I
Inbound Logistics
Movement of goods from suppliers into a warehouse or facility.
Intermodal Transportation
Freight movement using multiple transportation modes.
L
Landed Cost
The total cost of a product including transportation, duties, taxes, and fees.
Large Package Surcharge
Applied when shipments exceed carrier dimension thresholds.
Linehaul
The long-distance transportation of freight between hubs.
Logistics Intelligence
Data-driven insight into shipping cost, performance, and operational trends used to support smarter supply chain decisions.
LTL (Less-Than-Truckload)
Freight service for shipments that do not require a full truck.
M
Manifest
A document listing shipments included in a carrier pickup.
Minimum Net Charge
The lowest amount a carrier will charge after discounts.
O
Outbound Logistics
Movement of finished goods from a facility to customers or retail locations.
Oversize Package Surcharges
Applies to packages that don’t meet the dimensions or weight limits set by shipping carriers.
P
Parcel
A small package typically weighing less than 150 pounds.
Parcel Locker
A secure, self-service kiosk where customers can pick up or return packages at a designated location.
Parcel Spend Optimization
The process of analyzing shipping data to reduce costs by improving service mix, minimizing surcharges, and aligning carrier usage with business needs.
Peak Season
A high-volume shipping period that may trigger temporary surcharges.
Proof of Delivery (POD)
Documentation confirming that a shipment was delivery; includes delivery date, time, recipient signature, photo confirmation, etc.
Published Rate
The standard rate set by a carrier before discounts.
R
Regional Carrier
A carrier operating within a defined geographic footprint.
Residential Delivery Surcharge
Applied when delivering to a residential address instead of a commercial location.
Return to Sender (RTS)
A shipment returned to the original shipper due to delivery failure.
S
Service Level
The speed and delivery commitment associated with a shipment.
Shipper
The individual or company sending goods.
Signature Required
An optional service requiring recipient signature upon delivery.
Signature Upon Delivery Surcharges
Service fee added to the shipping charges if you choose to require a signature upon delivery.
Surcharge
An additional fee beyond the base transportation rate.
T
Tariff
A government-imposed tax on imported goods.
Tracking Number
A unique identifier used to monitor shipment progress.
Transit Time
The total time required for a shipment to reach its destination.
W
Warehouse Management System (WMS)
Software used to manage inventory, fulfillment, and warehouse operations.
Z
Zone
A geographic distance category used by carriers to determine shipping rates, based on how far a package travels from origin to destination.
Understanding the Terms Is Step One
In today’s shipping environment, complexity is constant. Tariff shifts, evolving surcharge structures, fuel volatility, and changing carrier policies can alter your cost structure quickly.
Understanding the terminology behind your shipping data is the foundation for making confident decisions in a rapidly changing market.
Sifted helps bring clarity to that complexity, turning shipping terms into actionable insight inside the SiftedAI platform.
