Freight Glossary: Terms You Need to Know

When managing freight transportation, there are many factors that must be considered. Among them, understanding the language of freight is crucial to ensure that your goods are shipped smoothly and cost-effectively. It is a long-standing joke that the logistics industry is littered with acronyms (especially for the names of logistics service providers – we are guilty of this ourselves). With abbreviations, acronyms and technical terms it can be very confusing to learn.

To help demystify this jargon and provide clarity to those new to the industry, we have created a comprehensive glossary of freight terms.

– A –

Accessorial

Accessorial refers to additional services requested or provided for a freight shipment, which incur an extra charge or fee. These services can vary based on the carrier and may include services like liftgate assistance, inside delivery, residential delivery, non-commercial destinations and more.

Air Cargo

Air Cargo refers to the transportation of goods or freight using airplanes as the mode of transport, as opposed to ships, trucks or trains. This method of shipping is known for its faster delivery times compared to other modes of transport, although it often comes with a higher cost.

Attempted Pickup

Attempted Pickup occurs when a carrier is sent to a location to collect freight, but the shipment is not prepared or available for pickup upon the carrier’s arrival. In such cases, LTL (Less-Than-Truckload) carriers often impose extra charges to compensate for the wasted time and expenses incurred while attempting to collect the shipment.

Auditing (Freight)

Freight auditing in the context of shipping refers to the process of carefully reviewing and verifying all aspects of a freight bill before it is issued to the customer. This includes checking for any additional charges, errors or discrepancies to ensure the accuracy and completeness of the final bill.

– B –

Backhaul (headhaul)

Backhaul, also known as “headhaul”, refers to the transportation of freight or cargo on a return trip after delivering a shipment to its destination. It involves utilizing the available space in a truck or vessel during the return journey to carry additional freight. Backhauling allows freight carriers to optimize their operations by maximizing load capacity and reducing empty miles, leading to greater efficiency and potentially lower costs for both shippers and carriers.

Base Shipping Rate (BSR) or Base Rates 

The Base Shipping Rate (BSR) refers to the standard, fixed cost charged by a freight carrier for the transportation of goods from one point to another. The BSR typically includes factors such as fuel surcharges, handling fees and other basic operational costs incurred by the carrier in providing transportation services.

Bill of Lading

Bill of Lading (BOL) is a legally binding contract between the shipper, consignee and carrier, outlining the terms and conditions of carriage. It serves as a document that is provided to the carrier by the shipper at the time of freight pickup, containing essential information such as pickup and delivery locations, weight, class, commodity and more. The BOL plays a crucial role in accurately defining the freight shipping arrangement and serves as a detailed description of the shipment and its intended recipient.

• Clean Bill of Lading: A Clean Bill of Lading is a document issued by a carrier that serves as a receipt for goods being shipped. It indicates that the goods have been received in good condition, without any damage or issues. It instills confidence in the shipper and serves as proof that the carrier has taken possession of the goods in the specified quantity and that they are in an acceptable state
• Corrected Bill of Lading (CBL): A Corrected Bill of Lading (CBL) is a document issued by the shipper to rectify any errors or discrepancies found in the initial bill of lading. It serves as an amendment or revision to the original document and contains corrected and accurate information regarding the shipment. The CBL is used to update or modify details such as the description of the goods, quantity, weight, consignee information or any other relevant information that was previously incorrect or incomplete.
• Through Bill of Lading: A through bill of lading is a legal document serving as a contract, receipt and shipping agreement for the transportation of goods from origin to destination. Unlike regular bills of lading, it covers the entire journey and multiple modes of transport without cargo transfer. Providing a comprehensive record, it serves as proof of ownership, receipt and delivery, commonly used in international and intermodal shipping.

Bonded Warehouse

A bonded warehouse is a facility that is authorized and regulated by customs authorities for the storage of imported goods that haven’t formally been filed with U.S. customs. The payment of duties is deferred until the goods are removed. Of note, the transportation to a bonded warehouse to defer payment must be transported “in-bond” for the inbound shipment. The goods stored in a bonded warehouse may be in transit or awaiting further processing or manufacturing. The importers can strip, re-package or manufacture the goods inside the bonded warehouse with prior approval from the customs authorities.

Box truck

Box trucks, also known as straight trucks, are medium-sized vehicles with an enclosed cargo area built onto the chassis. They are commonly used in the transportation of expedited freight, where small to medium-sized loads need to be moved quickly and securely. The cargo area of the 26-ft box truck (the most common size) is typically a rectangular-shaped box with a door at the back, like a large moving truck. Due to their enclosed nature and relatively small size, they are often used for local or regional transportation of goods. See Sprinter van for comparison/contrast.

Broker or Brokerage (Freight)

A broker is a third-party logistics provider that serves as an intermediary between customers and carriers. They facilitate the negotiation of freight pricing and services, enabling smooth transactions between shippers and carriers. Brokers play a crucial role in coordinating logistics operations, ensuring efficient and cost-effective movement of goods through the supply chain.

Bulk Freight

Bulk freight refers to large quantities of unpackaged cargo, such as grains, coal, ore or liquids, transported in bulk form without individual containers or packaging. This type of freight is typically loaded directly onto a ship, train or truck, and is usually measured and charged based on weight or volume. Bulk freight is commonly associated with commodities that are primarily traded in large quantities and are not easily handled or packaged individually.

– C –

Capacity

Capacity in truckload shipping is the measurement of available space or resources to accommodate the quantity of goods that need to be transported. It is influenced by two key factors: the volume of goods to be shipped and the number of carriers or trucks available for transportation. Capacity plays a significant role in determining truckload pricing, as limited capacity may result in higher rates due to increased demand such as during peak seasons.

Cargo Insurance

Cargo insurance provides coverage for loss or damage to goods or merchandise during transportation. Beyond basic claims insurance that may be provided, cargo insurance helps protect the financial interests of shippers and carriers by compensating for losses caused by events such as theft, accidents, natural disasters or other unforeseen circumstances while the cargo is in transit.

Carrier

A carrier refers to a company or operator that specializes in the freight transportation of goods from one location to another using trucks or trailers. They play a crucial role in the logistics industry by offering services for both Less Than Truckload (LTL) and full Truckload freight. Carriers are responsible for safely and efficiently moving goods, ensuring timely delivery and adherence to customer supply chain requirements.

Carrier Liability

Carrier liability refers to the legal and financial responsibility a carrier assumes for a shipment’s loss or damage during transit. The amount of liability that a carrier must assume typically varies based on the specific carrier and is often limited to a per-pound basis. Carrier liability provides financial protection for the shipper in case of unforeseen events or mishaps during shipping that cause damage or loss to the goods being transported.

CFS (Container freight station)

A Container Freight Station (CFS) is a facility where goods soon to be moved via container shipping are received, consolidated and loaded into shipping containers for transportation. It serves as a point for the temporary storage and handling of cargo before it is loaded onto vessels for export or after it is unloaded for import. CFS facilities are commonly used to streamline containerized cargo movements.

Chargebacks

A chargeback in freight transportation is a fee that a retailer or receiving company charges a supplier or shipper when they don’t comply with their transportation or logistics policies.

Chassis

A chassis is a specialized frame equipped with wheels and locking mechanisms that is used to secure containers during transportation. This term is commonly used in drayage shipping, rail shipping and intermodal transportation. The chassis provides a stable and secure platform for containers to be loaded and transported across different modes of transportation, such as trains, trucks or ships

Concealed Damage

Concealed Damage describes damage to the contents of a package that is not readily apparent from the exterior. Concealed damage typically only becomes apparent when the recipient opens the package and discovers the damage to the item(s) inside. This type of damage can be caused by mishandling or improper packaging during the transportation process. In the event of concealed damage, it is important for the recipient to document the damage and report it promptly to the carrier and the shipper to initiate the claims process.

Consignee

The consignee is the individual or business entity designated as the recipient of a shipment. In most cases, the consignee is the purchaser of the goods or the intended recipient. In the context of Less than Truckload (LTL) or truckload shipments, the consignee is the party who receives the shipment, contrasting with the “shipper” who initiates the transportation process.

Consignor

A consignor is a person or entity that ships goods, products or merchandise to be sold or transferred to a consignee. The consignor retains ownership of the goods until they are sold, at which point a portion of the proceeds is given to the consignor.

Container

A shipping container is a standardized, large metal box designed for the transport of goods by sea, land or rail. These containers come in different sizes, with the most common being the 20-foot and 40-foot varieties. They are used to securely pack and transport various types of cargo, providing protection from weather, damage and theft during shipping.

Cross-docking

Cross-docking is a logistics method involving direct transfer of inbound freight to outbound trucks without warehousing. This efficient process reduces time and costs, streamlines supply chains and enables faster delivery with less inventory holding. It promotes agile distribution by quickly sorting, consolidating and loading goods onto outbound trucks for immediate transport, which is especially beneficial for perishable or time-sensitive items.

Customs Broker

A Customs Broker, licensed by the U.S. Treasury Department, facilitates smooth movement of freight across international borders. They specialize in customs transactions, serving as intermediaries between importers, exporters and U.S. Customs officials. Their primary role is handling essential paperwork and procedures for customs clearance, ensuring compliance with legal and regulatory requirements. They provide expertise in classifying goods, calculating duties and taxes and completing necessary paperwork accurately and on time.

Customs Clearance

Customs clearance refers to the formal review process that takes place when goods are imported or exported across international borders. This process is conducted by government authorities (customs agencies) to ensure that the goods conform to legal and regulatory requirements. Customs clearance involves the assessment of duties, taxes, and fees related to the import or export of merchandise. The procedures may vary from country to country, but typically include document verification, inspection and payment of applicable fees.

– D –

Deadheading

Deadheading is the practice of operating a truck or vehicle without any cargo, often occurring after a delivery when the vehicle needs to return to its base or find new load opportunities. While less efficient in terms of fuel consumption and costs, it is sometimes unavoidable in logistics. Transportation companies aim to minimize deadhead miles by optimizing routes and coordinating shipments for cost-effective and sustainable resource use.

Declared Value

Declared Value indicates the value assigned to a freight shipment by the shipper or owner. It represents the estimated or declared worth of the goods being transported, which may be for resale purposes or for insurance purposes. The declared value is typically specified on the Bill of Lading (BOL) at the time of pickup, allowing carriers to understand the value of the shipment and potentially determine charges or insurance coverage. This value declaration is important for claims processing, as it helps establish the maximum liability of the carrier in case of loss or damage to the shipment during transit.

Dedicated Lane

A Dedicated Lane is a specific transportation route that is serviced on a regular basis. This logistics arrangement involves assigning a dedicated carrier to handle the transportation of goods on a particular route, usually between two fixed points. The carrier is responsible for providing consistent, reliable and timely deliveries along the dedicated lane, often under a contractual agreement with the shipper or consignee. Dedicated lanes can be established for a variety of reasons, such as high-volume shipping, specialized handling requirements or strategic partnerships between shippers and carriers.

Delivery Appointment

Delivery Appointment refers to a predetermined time slot that is arranged with the consignee for the delivery of a shipment of goods. In less-than-truckload (LTL) shipping, delivery appointments are usually considered accessorials and may require additional payment by the shipper or consignee. Having a delivery appointment can help prevent delays and ensure that the consignee is available to receive the shipment, increasing efficiency and reducing costs associated with redelivery attempts or missed deliveries.

Demurrage

Demurrage refers to charges levied on the holder or cargo vehicle for exceeding the allotted time for which they are authorized to be confined or detained. It is a financial penalty imposed by the owner of a facility, such as a port or terminal, when cargo or equipment is not picked up or returned within the agreed upon timeframe. Demurrage charges are designed to incentivize timely movement of goods and ensure efficient use of resources. Demurrage charges can vary depending on the type of cargo, the duration of the delay, and the specific terms and conditions outlined in the contract between the parties involved.

Density (LTL freight)

Density refers to the measurement of how much weight an item occupies per unit of volume, typically expressed as pounds per cubic foot. This measurement is important in estimating LTL shipping costs, as LTL carriers often base their rates on the density of the cargo. Items with higher densities are typically more compact and occupy less space relative to their weight, resulting in more cost-efficient shipping. Additionally, density plays a significant role in assigning the appropriate freight class for shipments.

Detention

Detention refers to a fee imposed by a carrier when a truck experiences extended delays during delivery or pickup, exceeding the allocated time for the service. It is an additional charge that applies when the loading or unloading of goods takes longer than the agreed-upon time limit. In less-than-truckload (LTL) shipping, carriers typically allow a complimentary 15-minute window for loading or unloading at each location. However, if the process exceeds this timeframe, the carrier may levy a detention fee. For full truckload shipments, the grace period is usually extended to 2 hours.

Drayage

Drayage services involve transporting freight over short distances within the intermodal shipping process, connecting transportation hubs like ports, rail yards or airports with nearby facilities such as warehouses or distribution centers. They play a crucial role in transferring goods between different modes of transportation, bridging the gap between long-haul shipments and final destinations. Drayage services ensure efficient and timely delivery of freight locally or regionally, enhancing overall supply chain movement. Stay informed and up to date on the latest drayage news.

Drop Deck

A drop deck, also called a step deck, is a specialized flatbed trailer designed for transporting taller cargo. It features a deck that drops down after the trailer’s tractor unit, providing extra height clearance. This design allows for transporting loads exceeding height limits, such as construction equipment and oversized machinery. Drop deck trailers offer a safer option for loading and unloading cargo without requiring cranes or other lifting equipment.

Drop Trailer

A drop trailer is a carrier trailer left at a designated location to be picked up later once filled with cargo, offering a storage solution for shippers to load at their own pace. Detached from the truck tractor, it remains stationary until ready for transport to the intended destination, enhancing scheduling flexibility and resource utilization. Drop trailers are advantageous for businesses with regular large shipments, streamlining logistics management in various industries.

Dry Van

A dry van is a standard fully enclosed trailer used in truckload shipping, commonly measuring 48 ft. or 53 ft. in length. It is used to transport cargo that doesn’t need temperature control, offering secure and efficient protection against weather, theft, or damage. Dry vans are versatile, suitable for shipping various goods over long distances. They are a cost-effective and reliable transportation solution preferred by businesses and carriers.

Dunnage

Dunnage is the material used to secure and protect cargo during transit, preventing movement within the trailer or shipping container. It is strategically placed between items or around fragile cargo to provide stability and cushioning, minimizing the risk of damage during transportation. Common types of dunnage materials include airbags, foam inserts, cardboard, wooden blocks and straps, selected based on the cargo’s nature, weight and fragility. Proper dunnage usage reduces product damage, increases stacking capability and improves cargo security, serving as a protective barrier throughout the transportation process.

– E –

Electronic Data Interchange (EDI)

Electronic Data Interchange (EDI) is a computer-to-computer transmission method used in the freight industry for scheduling pickups through a transportation management system. It streamlines communication and improves efficiency by exchanging standardized electronic business documents, such as purchase orders and invoices. EDI eliminates manual data entry, reduces errors and enhances supply chain productivity, serving as a reliable and secure means of exchanging critical information between partners.

Embargo

An embargo is a period when freight is halted due to conflict, sanctions, natural disasters or disruptions to transportation infrastructure. It affects air, sea and land transport, causing delays and suspensions in freight services. Embargoes have serious consequences for businesses and supply chains, requiring strategic management to minimize disruptions and reroute cargo.

Expedited

Expedited shipping is quicker than standard shipment, allowing urgent delivery or time-sensitive shipments, often at a higher cost. With a priority on speed and efficiency, expedited shipping offers faster transportation, streamlined customs and priority routing. While more expensive than standard delivery options, it lets businesses meet urgent customer demands, move inventory quickly and respond to time-critical situations quickly, minimizing supply chain disruptions.

Export

Export is the process of sending goods from one country to another, allowing businesses to access new markets and expand their customer base. It encompasses various commodities, both physical and intangible, contributing to global interconnectedness and economic growth. This endeavor involves complying with regulations, documentation and customs requirements, often requiring strategic planning, market research and efficient management of logistics and documentation for cross-border shipments.

– F –

Federal Motor Carrier Safety Administration (FMCSA)

The FMCSA regulates and oversees commercial motor vehicle safety, aiming to prevent crashes, injuries and fatalities. It enforces safety regulations, conducts inspections, provides safety education programs and maintains the Safety Management System (SMS) for assessing carrier safety performance and promoting compliance.

Flatbed

A flatbed is a type of equipment used in truckload shipping to move bulky or heavy items, as well as machinery. Unlike enclosed box trucks, flatbed shipping employs an open trailer to accommodate large or cumbersome freight that cannot be securely loaded in a closed space. Flatbeds are particularly suitable for items that need to be loaded from the sides onto a trailer.

Freight Claim

A claim refers to the formal process in which a shipper or recipient reports that a package has been either lost or damaged during shipment. It involves notifying the relevant party, usually the freight carrier, about the issue and requesting compensation for the loss or damage. By filing a claim, the shipper or recipient aims to receive appropriate reimbursement for the financial loss incurred due to the damaged or lost items.

Freight Class

Freight class is a standardized numerical classification from 50 to 500, assigned by the NMFC system to categorize commodities for shipping. It considers factors like density, stowability, handling and liability. Using consistent freight classes benefits consumers and carriers with a uniform pricing structure. Density plays a significant role, with easier-to-handle commodities assigned lower classes. Assigning freight classes creates fair pricing and transparency in the industry, streamlining the shipping process for all parties involved.

Freight Shipping Quote

A freight shipping quote is an estimated fee from a carrier or 3PL for transporting a shipment. It is based on factors like weight, volume, distance, mode of transportation and additional services. This quote helps the shipper or customer anticipate the cost of shipping their goods and make informed decisions.

FTL (Full Truckload)

FTL or Full Truckload refers to a shipping service where goods are transported in a trailer that can be loaded to its full weight and/or volume capacity, typically measuring 48′ or 53′ in length. In this mode of shipping, a single customer contracts the full use of the carrier’s trailer, ensuring exclusivity for their shipment. This method is preferable when shipping many pallets and LTL shipping is not practical or cost-effective. Various truckload equipment such as refrigerated trucks and dry van trucks are available to accommodate specific shipment needs.

Fuel Surcharge (FSC)

A fuel surcharge is an extra fee added by shipping companies to compensate for fuel price changes. It is calculated as a percentage of the base rate and adjusted regularly to reflect fuel cost fluctuations. This surcharge helps carriers cover additional fuel expenses and operate cost-effectively while serving customers.

– G –

General Rate Increase (GRI)

A General Rate Increase (GRI) refers to the annual adjustment made by freight transportation companies to their published base rates and additional fees applicable to all shippers. This increase is applied uniformly to the pricing structure and covers various aspects of the shipping services provided. It accounts for factors such as rising operational costs, inflation, fuel prices and other market conditions. The purpose of a GRI is to ensure that shipping companies can sustain their operations effectively, maintain service quality, and address the changing dynamics of the shipping industry. As a result, shippers should be aware of GRIs as they can influence the overall shipping costs and budgeting for their shipments.

– H –

Hazmat

Hazmat refers to hazardous materials that pose a potential risk to health, safety or property, subject to strict transportation regulations by entities such as the U.S. Department of Transportation. These regulations classify hazards based on materials characteristics, quantity and form, ensuring their safe handling and transportation using trained personnel, proper labeling and packaging requirements. As a result, hazmat compliance involves obtaining permits, using specific carriers and adhering to regulations to mitigate risks and protect individuals and the environment.

– I –

Import

Importing involves bringing goods into a country from abroad for use, sale or distribution. It covers transporting items across borders and complying with customs regulations, documentation and tariffs. Imports range from raw materials to consumer goods, helping countries access new resources, drive economic growth and meet consumer demands for diverse products globally.

Inbound Freight

Inbound freight is the transportation of essential goods for supply chain management, often received from vendors. It includes raw materials or finished products necessary for a company’s production or distribution. Managing inbound freight involves coordinating deliveries, organizing transportation and optimizing inventory. Effective management through the implementation of a Transportation Management System (TMS) enhances inventory control, reduces costs and improves operational efficiency.

Inside pickup and delivery

Inside pickup and delivery is for a freight shipment to or from an indoor location such as a business or garage. The driver helps load the freight if assisted. The pickup or delivery location must have accessible and nearby exits. This service streamlines logistics and ensures careful handling of the shipment.

Intermodal

Intermodal transports goods by seamlessly switching between multiple modes of transportation, like road, rail, air, and sea, for efficient movement. It transfers freight between different carriers or vehicles for the destination, such as van to train or shipping vessel. Intermodal commonly involves truck-rail-truck but can also include truck-air or truck-ship for international transport. This offers cost-effective, flexible and enhanced logistics capabilities, leveraging the strengths of different transportation modes for efficient freight delivery.

– L –

Lanes (Freight Lanes, Shipping Lanes or Trucking Lanes)

The specific routes that carriers regularly operate on. These lanes outline the geographical areas and specific routes where carriers routinely provide their transportation services. The term “carrier lanes” describes the predefined paths that carriers navigate as they transport goods from one location to another, ensuring efficient and reliable delivery along established routes.

Liftgate

Primarily found when moving freight via an LTL carrier, a liftgate is a specialized hydraulic lift that is installed at the rear of certain trucks to facilitate the loading and unloading of freight. Typically used as a substitute for a loading dock, it enables the freight to be raised from the ground up into the trailer. A request for a Liftgate is made when a loading dock is unavailable at the pickup or delivery location.

Load Board

A Load Board is an online platform or marketplace where loads are posted, enabling carriers and brokers to coordinate and schedule pickups and deliveries. It serves as a virtual message board where transportation professionals can access and exchange information about available loads, allowing them to efficiently match shipments with available carriers. Load Boards facilitate the connection between those in need of transportation services and those with capacity, streamlining the process of finding suitable freight to be transported. An example is Beon Carrier is NTG’s load board for carriers.

LTL (Less-Than-Truckload Freight)

Less-than-truckload (LTL) shipping transports cargo that is larger than parcels but doesn’t fill a full truck trailer. It is suitable for shipments weighing between 150 and 15,000 pounds. Shippers pay for the space their freight occupies in a truck trailer. Carriers consolidate multiple smaller loads into a single semi-truck for various destinations, providing unique pricing and services for smaller shipments compared to full truckload shipping.

Lumping

Lumping refers to the practice where a driver assists in the loading or unloading of a truck during pickup or delivery. In such cases, the driver actively participates in the physical labor of moving the cargo, which involves tasks like lifting, carrying, and arranging the freight. Lumping often occurs when there is no separate dedicated staff available for loading or unloading at the pickup or delivery location. By aiding in these tasks, the driver contributes to the efficient handling of the shipment, ensuring that it is properly loaded or unloaded at its designated destination.

– N –

National Motor Freight Classification (NMFC)

The National Motor Freight Classification (NMFC) provides detailed descriptions and regulations for shipping various commodities. It helps determine freight class, which determines shipping costs and handling requirements for LTL shipments. Including the NMFC number on the Bill of Lading is crucial to avoid re-classifications and additional charges. Understanding and applying the NMFC number correctly ensures a smooth and cost-effective shipping process.

Net Weight

Net weight refers to the weight of goods without including packaging or other materials. Not to be confused with shipping weight, which accounts for the weight of the goods and packing materials, net weight is used to calculate shipping costs, comply with weight restrictions and document the quantity of goods. Net weight helps determine freight charges, loading capacities and compliance with transportation regulations. It is crucial for accurately assessing the true weight of goods and ensuring efficient transportation operations.

– O –

Over, Short, and Damaged (OS&D)

Over, Short and Damaged (OS&D) is a carrier department that manages and resolves issues related to overages, shortages and damages in shipments. It investigates discrepancies in quantities, locates lost or missing freight and assists in filing freight claims for compensation. The department ensures that customers receive their goods in the expected quantity and quality.

Over –Dimensional Freight (Wide Load)

Over dimensional freight, also known as ‘Wide Load’ or overlength, refers to cargo that exceeds legal size limits, requiring special permits, routes and equipment for transport. It presents unique challenges, needing specialized planning and precautions. Carriers use specialized equipment, such as flatbed trailers and work with state authorities to obtain permits and plan safe routes for transportation.

Owner-Operator

An “Owner-Operator” is an individual or entity that owns and operates a commercial vehicle in the trucking industry. They are responsible for their own truck, permits and financial and operational aspects. They may lease their services to a company or function as an independent contract carrier, hauling freight for shippers or brokers. Owner-operators have more control over their business but also assume responsibilities such as maintenance, fuel expenses and compliance with regulations. They secure their own customers and play a crucial role in the logistics and supply chain by providing diverse transportation services.

– P –

Packing List

A packing list issued by the shipper to the carrier and/or Customs provides comprehensive information about the contents, quantities, dimensions, weights and special handling instructions for each package in a shipment. This document serves as a crucial reference for accurate handling and transportation, as well as for customs clearance. It plays a vital role in supply chain management, promoting efficient transportation, accurate inventory management and seamless coordination among all parties involved.

Pallet

A pallet is a versatile platform for storing and transporting materials, providing a sturdy and standard base for goods. Most standard pallet sizes are either 48” x 40” or 48” x 48” and made of wood, plastic or metal. They have a flat surface with entry points for lifting equipment. They offer stability, prevent damage and are widely used in industries for efficient movement of goods. Pallets optimize storage space, aid in loading and unloading and enhance overall logistics efficiency.

Partial

A “Partial” refers to a shipment that occupies only a portion of a trailer’s capacity, requiring less-than-truckload (LTL) shipping services. Unlike LTL shipments, however, Partial shipments do not have freight class requirements, making them ideal for smaller or irregular sized shipments that do not need a full truckload. The flexibility of Partial shipments can optimize transportation costs and offer more affordable shipping solutions for customers and businesses.

Peak Season

Peak Season is a period of high demand for transportation services, often during holidays or increased commercial activity, leading to a surge in shipment volume and resource demand. Factors like seasonal changes, retail events, and holidays drive peak season, such as the holiday season from November to December for industries like e-commerce and retail. Challenges during peak season include capacity constraints, carrier availability and higher costs for expedited shipping. Successful navigation requires advance planning, efficiency optimization, technology utilization and effective communication to manage disruptions.

POD (Proof of Delivery)

Proof of Delivery (POD) is a legal document confirming successful receipt of a shipment at its destination. Typically, it includes a signed Bill of Lading, serving as evidence of delivery to the carrier. In Full Truckload (FTL) shipping, the delivery signature is on the Bill of Lading, while in Less-than-Truckload (LTL) shipping, it appears on a pre-printed delivery receipt. The POD is essential in logistics, providing delivery confirmation and aiding in resolving disputes related to loss or damage during transportation. Properly documented PODs are vital for filing freight claims, as they establish evidence of delivery and goods condition.

PRO number

A PRO number, also known as a tracking number, is a unique identifier assigned by carriers to shipments for tracking purposes. This number is crucial for monitoring and tracing freight movement, linking different logistics systems for real-time monitoring, status updates and efficient supply chain management. Stakeholders can access key information about the shipment, including origin, destination, delivery status and shipping details, using the PRO number.

– R –

Reclass

Reclass occurs when a carrier invoices a shipment at a different freight class than stated on the Bill of Lading (BOL). This discrepancy can result from errors in item characteristics, documentation or shipping conditions. The carrier may need to reclassify the shipment and adjust the invoice accordingly. Prompt resolution of reclass issues is crucial for accurate billing and transparency in transportation processes.

Reconsignment

Reconsignment is a carrier-imposed charge for redirecting a shipment to a new delivery address after pickup. The cost varies based on the distance to the new location. While minimal for close destinations, it can be substantial for significantly different ones. Reconsignment is usually prompted by unexpected changes and requires early communication to minimize disruptions and expenses for the shipper.

Reefer (Refrigerated Freight)

A reefer is specialized equipment designed for transporting temperature-sensitive goods. It consists of an insulated trailer with a refrigeration unit that maintains specific temperatures during transit. Reefers are crucial for transporting perishable items like food and pharmaceuticals, ensuring safe delivery while controlling climate conditions in the supply chain.

Reweigh

A reweigh happens when the weight on the bill of lading differs from the carrier’s invoice weight. Carriers conduct a reweigh to confirm the actual weight of the shipment and adjust billing accordingly. This ensures accurate shipping charges based on the true weight of the goods transported.

– S –

Shipping Weight

Shipping weight refers to the total weight of a shipment, including the weight of all the associated packaging materials such as crates, boxes, containers and other necessary components.

Sort and Segregate (sort and seg)

Sort and segregate, also known as “sort and seg,” is a process carried out during delivery in which the driver of the transportation company, the receiving location or a third-party lumper organizes and categorizes each package or box as they are being unloaded from the truck. This involves carefully inspecting and counting each item to ensure accurate record-keeping and proper handling of the shipment. This can also be done once loads are unloaded at a cross-docking or transloading locations.

Sprinter Van

Unlike a box truck, a sprinter van is a smaller, more compact commercial vehicle with a cargo area that is typically integrated into the main body of the vehicle. Sprinter vans are used for transporting smaller expedited loads over short to medium distances with a focus on efficiency and maneuverability. They are often preferred for urban or suburban delivery routes and for transporting less bulky cargo. Unlike box trucks, sprinter vans are designed for smaller-scale transportation needs and are particularly well-suited for quick delivery services and local logistics operations due to their smaller size, flexibility, and ease of parking in urban areas.

Standard Carrier Alpha Code (SCAC)

The Standard Carrier Alpha Code (SCAC) is a distinctive alphanumeric code, typically consisting of 2-4 letters, that serves the purpose of identifying individual transportation companies. This code is issued by the Department of Transportation to ensure a unique identification for each cargo transporter, allowing for clear differentiation between them.

Step Deck

Step Deck trailers are specialized equipment for larger or oversized cargo in truckload shipping. They are designed with a lower deck for shorter cargo and an upper deck for taller freight that cannot be shipped on standard flatbed trailers. They are ideal for transporting large machines or heavy equipment, providing a secure and safe transport solution for oversized shipments.

Surcharges

A surcharge, an extra fee added to shipping costs, covers specific services or circumstances that incur additional charges. Examples include fees for services like residential delivery, handling large packages, weekend delivery and adult signature requirements. Surcharges reflect the added resources, time and effort needed for specialized services, increasing the overall shipment cost.

– T –

Time-Critical

Time-critical refers to a specific type of delivery that is prioritized for the earliest possible delivery time. Time-critical freight shipment delivery is arranged to accommodate specific shipping requirements and ensure that the shipment reaches its destination as quickly as possible. This prioritization is necessary to meet time-sensitive demands and minimize any potential delays.

Time-Definite

Time-definite refers to a delivery service that guarantees the occurrence of a delivery at a specific day and/or time. Time-definite deliveries provide a reliable assurance that the shipment will be delivered on a particular day or within a specific time window. This service is valuable for time-sensitive shipments that require prompt and precise delivery scheduling.

Transit Time

Transit Time is the duration it takes for freight to travel from the point of pickup at the origin location to its final destination. It encompasses the entire period from when the freight is collected for transportation until it is delivered to the designated delivery location. Transit time is a crucial factor in logistics planning as it helps determine the expected timeline for shipments, allowing businesses and customers to make appropriate arrangements and meet their required deadlines.

Transload

Trans-loading is the transfer of goods from one trailer to another to keep a shipment moving when a trailer switch is needed. This process ensures a smooth flow towards the destination by unloading and reloading goods efficiently and safely.

Transshipment

Transshipment is the transfer of goods between different transport modes during transit, often at hubs like ports or airports. This process ensures efficient movement of goods and can help cut transportation costs by eliminating detours or specialized shipping methods.

Truck ordered and not used (TONU)

Truck Ordered and Not Used (TONU) occurs when a carrier is dispatched for freight pickup but faces a cancellation or load unavailability upon arrival. This term is often related to full truckload carriers, who may charge extra if the truck order is not utilized per the contract. TONU is usually addressed in the contract with a specified cut-off time, and failure to use the truck order after this results in an additional fee for load cancellation or delay.

Twenty-Foot Equivalent Unit (TEU)

The Twenty-Foot Equivalent Unit (TEU) is a metric used to quantify the cargo-carrying capacity of a ship. It serves as a standardized measure to compare and estimate the volume of cargo container that a vessel can accommodate. One TEU represents the cargo capacity equivalent to that of a standard twenty-foot shipping container. This unit is widely used in the shipping industry to evaluate and express the size and efficiency of maritime transport vessels.

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Volume Rate

A volume rate is a pricing structure commonly utilized in Less Than Truckload (LTL) shipping that is contingent on a minimum shipment weight of 7,000 pounds or a cubic volume that exceeds 750 cubic feet and above. This type of rate enables shippers to transport larger quantities of freight at a discounted rate.

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Warehousing

Warehousing involves the process of temporarily storing goods within a designated facility for a predetermined period. It is a practice commonly adopted by freight shippers to hold their merchandise until they are prepared to transport it.

Waybill

Document used by the carrier containing relevant shipment information such as pickup and delivery locations. Also known as a Bill of Lading.