Glossary of Basic Domestic U.S. Freight Terms
Introduction
Welcome to the world of logistics and freight! This glossary is your key to understanding the language of shipping and transportation. Whether you’re new to this field or a seasoned pro, you’ll find explanations for terms like “Bill of Lading” and “Truckload” made easy. We’re here to help you decode the words that make the wheels of commerce turn.
Accessorials: The freight term describes accessorial services that require more than dock-to-dock transportation. Accessorials commonly include the need for special equipment and services like liftgates, non-commercial destinations, and inside pickup and delivery.
Adjustments: (also known as Balance Due or billing adjustment): Costs incurred after a shipment has been delivered. These costs can be added for a discrepancy between the quoted freight characteristics and the provided shipment details of weight, class, and dimensions or may be accrued for additional services such as a liftgate.
Agent: A person who transacts business on behalf of another person or company with full or limited decision-making authority. An agent may supervise customs procedures, documentation, or insurance in shipping. This person may also receive a portion of any monetary gain from a transaction as payment.
Axle Load: The axle load refers to each axle’s weight on the nation’s highways.
Back Haul: The return trip of a truck transporting cargo or freight. It may be a return to the origin of the freight hauled in which the carrier is willing to offer a discount to secure freight for the trip.
Beneficial Owner: This is a legal term where specific property rights belong to a person even though the legal title of the property belongs to another person. This term is often used in rail or ocean freight and refers to the actual owner of the freight being shipped despite the title of the freight being in another party’s name. (Usually used in rail only)
Bill of Lading (BOL): The legally binding contract between the shipper and the carrier, broker, or agent that defines all aspects of the freight shipping arrangement, including what is being shipped and to whom.
Blanket Wrap: The process of wrapping thick blanket wraps around goods to cover and cushion them during shipment. This is usually associated with “whiteglove” shipments or commercial movers.
Blocking and Bracing: This term refers to wood or other supports (see dunnage) used to keep shipments in place on trailers or in containers throughout the shipping process. Expert shippers widely use this technique to secure their freight shipment.
Blind Shipment: When the shipper and/or receiver are unaware of one another, the freight shipment is called a blind shipment. In such cases, the bill of lading lists the party that paid for the shipment as the shipper or receiver of the freight shipment.
Bogie: This rail shipping term refers to a frame with wheels on which a container is mounted for over-the-road transport.
Brokerage License: A brokerage license is a legally required document that a broker obtains to have the ability to make land, sea, and air freight shipping arrangements.
Bulk Freight: Freight not contained within packages or containers is called bulk freight. Frequently, bulk freight comes in liquid or a granular form, such as sand or crude oil.
Cartage: A trucking term for shipping freight within the same city or area. It generally refers to short hauls moving cargo containers.
Chassis: A rail shipping term that refers to a frame with wheels and locking devices to secure a container during shipping.
Classification: A freight classification is assigned to a shipment to apply transportation charges. Freight classifications are used for less-than-truckload (LTL) shipments.
Common Carrier: An LTL common carrier consolidates and re-consolidates freight for multiple companies or brands while offering a set route and rate.
Concealed Damage: Concealed damage is damage not visible to the item(s) until the package is opened.
Consignee: The individual who is responsible for receiving a freight shipment.
Consignor (aka shipper): An individual (usually the seller) who sends goods to the consignee and is the legal owner until the consignee pays them in full.
Consolidation: A consolidated shipment is when two or more shipments are combined to save money on freight shipping costs. This shipping method is used in less-than-truckload shipping with multiple stops before reaching the final destination.
Container: A container looks like a standard trailer with no wheels and is now among the most common freight shipping methods in the United States and abroad. Containers for intermodal shipping come in standard sizes to ensure they fit on classic trucks, rail cars, and container ships. Containers may be ventilated, insulated, refrigerated, open-top, liquid-fill body, or equipped with other devices or racks.
Crating Services: A container constructed of wood and affixed to a pallet is used to transport fragile, unboxed items.
Cross-Town: A shipping term used when a container or trailer is delivered from one railroad as part of the shipping route; the move is called cross-town shipping.
Cubic Capacity: The total freight load capacity of any truck, train, or ship is measured in cubic feet. The cubic capacity is the total load in cubic feet that cannot be legally exceeded.
Customs Broker: A person or company that the U.S. Treasury Department licenses to act on behalf of freight importers and exporters for U.S. Customs transactions.
Curbside: A shipment service description that does not include inside pickup or delivery. It generally refers to approximately 6 feet from the back of the delivery vehicle.
Double-stack: Rail car movement of containers stacked two high.
Drayage: Transporting rail or ocean freight by truck to an intermediate or final destination; typically a charge for pickup/delivery of goods moving short distances (e.g., from marine terminal to warehouse).
Demurrage: The carrier charges applied when rail freight cars and ships are retained beyond a specific loading or unloading time.
Density Calculator: A Density Calculator determines a shipment’s density, an essential factor in a shipment’s freight class.
Detention Fee: Charges applied when rail freight cars, ships, and carriers are retained beyond a specified loading or unloading time.
Direct-to-store: Process of shipping directly from a manufacturer’s plant or distribution center to the customer’s retail store, thus bypassing any intermediaries such as a distribution center.
Dispatcher: An oft-tortured soul tasked to assign available transportation loads to open carriers.
Distribution Center (D.C.): A warehouse which holds inventory from manufacturing pending distribution to the appropriate stores.
Dock: A space used for receiving merchandise at a freight terminal or warehouse.Generally 48” off the ground at standard trailer height for easy loading/unloading of freight.
Domestic Freight: Shipments transported within the continental United States.
DOT: The Department of Transportation is the governing body in US responsible for overseeing the safe, efficient, sustainable and equitable movement of goods and people.
Drayage: A freight term commonly used to mean two very different things.
Drop: A situation in which an equipment operator detaches and leaves a trailer or boxcar at a facility at which it is to be loaded or unloaded.
Drop Deck: Specialized truckload equipment has a lower deck system that rolls onto an upper deck.
Drop Shipping: When the goods are shipped from the manufacturer, wholesaler, or another retailer (like Amazon), which sends the goods to the end customer on behalf of the consignor.
Dry Van: An enclosed cargo trailer is used to transport goods that do not require refrigeration or other devices.
Dunnage: The material used to block and brace shipments on trailers or in containers throughout the shipping process. Usually refers to wood, pallets/skids, air pillows and fiberboard.
Durable Goods: Generally, any goods with continuous serviceability will likely exceed three years.
Embargo: An embargo is any event that prevents the freight from being accepted or handled. A ban is often due to international conflict or sanctions imposed on a particular country or group of people. However, embargo events may include floods, tornadoes, or congested highways.
Exempt Carrier: A for-hire carrier that is free from economic regulation. Trucks hauling certain commodities are exempt from Interstate Commerce Commission financial regulation. The most significant portion of exempt pages transports agricultural commodities or seafood.
Expedited Freight: Time-sensitive freight that utilizes guaranteed and time-critical services to meet fast delivery windows.
Freight All Kinds (FAK): Goods classified by FAK are usually charged higher rates than those marked with a specific classification and are frequently in a container that includes various classes of cargo.
Final Mile: The final leg of a shipment involving multiple carriers. Generally this is performed by a local company. This service can also include other services such as inside delivery, install and debris removal.
First Mile: The first leg of a shipment involving multiple carriers performed by a local pickup agent. This service can also include inside pickup from the origin and packaging. After the Freight is picked up and packaged, another carrier partner will take it to its destination.
Flatbed: A trailer without sides for hauling machinery or other bulky items.
For-hire Carrier: Carrier that provides transportation service to the public on a fee basis.
Freeze Protection: A service many carriers provide to prevent Freight from being exposed to frigid temperatures. This can range from heated trailers to devices such as a thermal blanket and using such things as a “hot room”.
Freight: Boxed, crated, or palletized shipments weighing more than 150 lbs or more.
Freight Bill Audit: An inspection of an invoice to determine a remaining balance or difference in the cost of services rendered.
Freight Broker: A non-asset based company that arranges transportation of goods on behalf of customers and is under contract with asset-based carriers and transportation companies.
Freight Carrier: An asset based transportation company. Other terms are common carrier, freight company, or trucking company.
Freight Class: A number between 50 and 500 which classifies or codes the goods inside a shipment.
Freight Forwarder: A 3rd party company that acts on behalf of another business to transport goods overseas or across multiple modes.A freight forwarder frequently consolidates shipments from several shippers and coordinates booking reservations.
Freight Lines: Another name for a transportation company.
Freight Matching: Automation that pairs the details of a shipment with the capabilities of a freight company.
Freight Quote: An estimated cost of shipping goods before pickup is made and the shipment is measured and weighed.
Freight Rate Calculator: An online quoting system connected to carrier rates by EDI/API for instantaneous quotes.
Freight Rates: The base tariff or contract rate charged by a carrier.
Freight Services: Brokers, forwarders offer the service and asset-based carriers to transport goods by various modes such as LTL, TL, rail/intermodal, cargo container, and air freight.
Freight Shipping: See Freight. A service that transports goods weighing more than 150 lbs or more.
Freight Shipping Calculator: A calculator you can place on any eCommerce site so customers can calculate shipping charges.
Freight Shipping Cost: The actual cost of shipping cargo.
Freight Shipping Rates: The cost of shipping goods via freight service.
Freight Shipping Services: Services that transport goods and packages weighing over 150 lbs or more or with a dimension greater than 4 feet in most cases.
Freight Terminal: Where a carrier receives incoming Freight that is then prepared for reloading into a truck, rail car, vessel, or plane.
Freight Transportation: See Freight Shipping. A service that transports goods weighing more than 150 lbs or more or with a dimension greater than 4 feet in most cases.
Freight Quote: An estimated cost of shipping goods before pickup is made and the shipment is measured and weighed.
Government Shipping: Both military and non-military agencies require Government shipping services.
Gross Vehicle Weight Rating: The rating refers to the vehicle’s maximum operating weight as specified by the manufacturer. The weight includes the driver, fuel, engine, body, chassis, and cargo but excludes the importance of a trailer.
Ground Freight: Service that involves transporting goods by truck over surface roads.
Exceptions: When a problem such as shortage or damage is noted at delivery, an exception is stated on the bill of lading before it is signed to designate a problem with the shipment.
Handling Unit: Every distinct piece of packaged Freight that will be moved with a forklift, pallet jack, or by hand is a handling unit.
Hazmat: (Also known as “Hazardous material”) Goods determined by the DOT to have the capability to cause an unreasonable risk to human health or safety or the environment when transported in commerce used incorrectly or if not properly stored or contained is considered hazardous. Hazardous materials include fuels, bio-chemicals, and pharmaceuticals.
Heavy Haul Freight: Freight weighing over 44,000 lbs exceeds the legal maximum and requires special permits and equipment.
Hot room: A storage room at a carrier’s terminal that maintains above freezing temperatures used to assist in freeze protection during transit when heated assets are unavailable.
Hours of Service: Ruling stipulates how much time a driver is allotted to work.
Hub: A distribution center within a carrier’s network of terminals.
In-bond Shipment: A shipment status in which goods are permitted to enter a country and temporarily stored for transport to a final destination where the duty will be paid.
Inbound Freight: An integral part of supply chain management, inbound freight is shipments from vendors.
Inbound Logistics: The movement of materials from shippers and vendors into production processes or storage facilities.
Inside Delivery & Pickup: Standard freight pickup and delivery are loading dock to loading dock or curb to curb. Inside pickup and delivery go beyond the curb.
Interstate Freight: Interstate Freight is any freight shipment that moves from one state to another, whether a full truckload or less than a truckload.
Interline: This shipping term is used when the initial carrier of a freight shipment transfers the freight to another provider or company to get it to its final destination.
Intermodal Terminal: A location where links between transportation modes and networks connect. They are using more than one transportation mode to move persons and goods. For example, a shipment over 1000 miles could travel by truck for one portion of the trip and then transfer to rail at a designated terminal.
Intermodal Transportation: When freight is shipped using two or more modes of transportation. Intermodal transportation typically refers to truck-rail-truck shipments but may include truck-to-air shipping or truck-to-ship if freight is shipped overseas.
Inventory: The number of units and value of the stock of goods a company holds
Just-in-Time (JIT): Cargo or components must be at a destination at the exact time needed. The container or vehicle is the movable warehouse.
Lanes: They are also known as freight lanes, shipping lanes, and trucking lanes. Lanes are the different origin and destination pairings and can be referred to by zip code, city, state or region.
Leadtime: The time that elapses between an order’s placement and receipt of the goods. It includes the time required for order transmittal, processing, preparation, and transit.
Lift Gate: A mechanical plate that raises/lowers freight to/from ground to the level of the truck. A lift gate will be required if the pickup or delivery site does not have a loading dock and the cargo weighs too much for an individual to handle.
Limited Access: Trucks do not have clear and unfettered access (Ex., security checkpoint, gates) to the exact pickup or delivery spot at a restricted access location, such as a school, self-storage unit or an airport.
Line Haul: The movement of freight over the road/rail from the origin terminal to the destination terminal, usually over long distances. Notably this excludes first and final mile transit.
Live Load: A situation in which the equipment operator stays with the trailer or boxcar while being loaded or unloaded.
Load: Another term for a shipment.
Logbook: A daily record of the hours an interstate driver spends driving, off-duty, sleeping in the berth, or on duty, not moving.
Logistics: All activities involved in the coordination of product movement
Logistics Company (aka Freight Broker): Logistics companies are non-asset based entities that arrange the transportation of goods on behalf of businesses to streamline their supply chain.
LTL: Abbreviation for “Less than Truckload.”
LTL Transportation: The movement of loads belonging to multiple customers consolidated to occupy the space of a single dry van trailer. LTL shipments generally do not go directly from A to B but rather move within a network of terminals and with a number of different drivers and equipment.
LTL Trucking: Defined as transporting freight more oversized than a parcel and smaller than a truckload, LTL shipments usually weigh more than 150 lbs but less than 20,000 lbs.
Lumpers: Individuals that assist a motor carrier owner-operator in unloading property; quite commonly used in the food industry.
Mode: The type of service used. For example, Over the road, Rail, Sea or Air Freight. This can also refer to the different subsets of a particular mode. For Ex., LTL, Volume, Truckload, Partial, Whiteglove, Final Mile are examples of over-the-road service modes.
Motor Carrier: The term “motor carrier” defines a person providing motor vehicle transportation for compensation.
Motor Freight Companies: Asset based carriers that transport goods by truck and trailer over public highways.
Moving Companies: A company that relocates household or commercial property over short or long distances.
Nested: A term used in less-than-truckload (LTL freight) shipping in which materials are stacked so that one item goes inside another. Nested freight reduces the amount of space taken up by the combined freight and makes LTL shipping more efficient.
NMFC: The National Motor Freight Classification System. The 12 tier system used by LTL carriers to designate the shipability of all goods.
Not Otherwise Indicated (NOI): A general class rate or NOI is assigned to any freight with no rate listed in the NMFC. The NMFC numbers dictate the freight rating that is assigned to freight. A freight rating is based on density, stowability, ease of handling, and liability.
On-dock Rail: Direct shipside rail service. Includes the ability to load and unload containers/breakbulk directly from rail car to vessel.
Operating Ratio: A measure of operational efficiency defined as (Operating Expenses/Operation Revenues) x 100.
OS&D: Over, short, and damaged. This is an LTL term for a department/position which handles shipments that are damaged, “over” meaning too many or “short” meaning not enough (lost). A report is issued at the point of discovery; a claim is usually filed with the carrier.
Outbound Logistics: The process related to moving and storing products from the end of the production line to the end user.
Oversize Freight: This refers to transporting goods that are longer, wider, or taller than the footprint of a standard trailer.
Overweight or Heavy Freight: See Heavy Freight—shipments weighing more than 44,000 lbs occupy the truck’s entire legal weight limit.
Owner-operator: Trucking operation in which the truck’s owner is also the driver.
Parcel Shipping: A parcel company like the United States Parcel Service transports a standard small package usually weighing less than 150 lbs and smaller than 108” in overall length and girth.
Personal Effects: Another term used for household goods or personal property.
Pounds per Cubic Foot (PCF): Density (the number of pounds occupying a cubic foot of space) is essential for calculating freight class.
Proof of Delivery (POD): Also known as the Delivery Receipt, the Proof of Delivery serves as the legal proof of receipt by the consignee and a completion of the shipment. The consignee should be sure to write any notes regarding the condition of the shipment directly on the driver’s copy of the POD. The POD should contain the name of the person who signed for the shipment, the time and date of delivery, and other shipment delivery-related information.
Placard: A label that identifies a hazardous material shipment and the hazards present.
Piggyback: A rail/truck service. A shipper loads a highway trailer, and a carrier drives it to a rail terminal and loads it on a flatcar; the railroad moves the trailer-on-flatcar combination to the destination terminal, where the carrier offloads the trailer and delivers it to the consignee.
Pool/Drop Trailers: Trailers staged at facilities for preloading purposes.
Port Authority: A state or local government that owns, operates, or provides pier, dock, and other terminal investments at ports.
Private Carrier: A carrier that provides transportation service to the firm that owns or leases the vehicles and does not charge a fee.
Private Warehouse: A company-owned warehouse.
Prepaid: A freight term that indicates charges are to be paid by the shipper (or a 3rd party). Prepaid shipping charges may be added to the customer invoice, or the cost may be bundled into the product’s pricing.
Pull Logistics System: A “Just in Time” logistics system driven by customer demand and enabled by telecommunications and information systems rather than by manufacturing process and inventory stockpiling.
Purchase Order (P.O.): The purchaser’s authorization formalizes a purchase transaction with a supplier. The physical form or electronic transaction a buyer uses when placing an order for merchandise.
Push Logistics System: An inventory-based logistics system characterized by regularly scheduled flows of products and high inventory levels.
Rates: Prices are charged by freight carriers based on various factors.
Reverse Logistics: A specialized logistics segment focusing on the movement and management of products and resources after the sale and delivery to the customer. Includes product returns and repair for credit.
Receiving: The function encompasses the physical receipt of material, the shipment inspection for conformance with the purchase order (quantity and damage), the identification and delivery to the destination, and the preparation of receiving reports.
Reefer: A refrigerated truck or trailer unit commonly used to transport perishable goods.
Refrigerated Freight: Goods that require refrigeration or freezing.
Return to Vendor (RTV): Material rejected by the customer or buyer’s inspection department and awaiting shipment back to the supplier for repair or replacement.
Seasonality: A repetitive pattern of demand from year to year (or other repeating time intervals), with some periods considerably higher than others. Seasonality explains the fluctuation in demand for various recreational products used during different seasons.
Shipper: The party that tenders goods for transportation.
Shipping Companies: Another name for a company that transports goods on behalf of a customer.
Shipping Labels: Shipping labels help ensure your cargo is delivered to the correct location.
Shipping Manifest: A document that lists the pieces in a shipment.
Sleeper Team: Two drivers operate a truck with a sleeper berth. In contrast, one driver sleeps in the berth to accumulate mandatory off-duty time; the other works the vehicle.
Stop-Off Charge: A charge associated with a load with multiple drop-off points. Typically, the first stop of a multistop load is included, and the remaining stop-offs entail a cost.
Supply Chain: The series of activities and processes moving a product from the supplier to the customer.
Supply Chain Logistics: Times change. The right Supply Chain Logistics plan responds to those changes.
Supply Chain Management: Supply chain management encompasses the planning and managing of all activities involved in sourcing, procurement, conversion, and logistics management.
Tank Container: A container with a tank surrounded by an outer protective shell.
Tanker: A trailer with a large tank for hauling bulk commodities
Tariff: A tariff establishes the cost and contract of a freight shipment for the shipper and the carrier.
Teamster: A union member or truck driver.
Third-Party Logistics (3PL): Outsourced provider of freight brokerage and supply chain services. Also known as a “freight broker”. A 3PL may be a single provider (i.e., transportation or warehouse function) or an entire system composed of several providers.
Time-Critical: A time-critical freight shipment delivery is set to the earliest possible delivery time to accommodate particular shipping requirements.
Time-Definite: Time-definite deliveries guarantee that the delivery will occur on a specific day or time of day.
Tradeshow Shipping: The process of coordinating and transporting a shipment to a tradeshow which can include choosing specific carriers for time sensitivity, shipping to an advance warehouse or direct to a show.
Transportation Companies: A term in the freight industry refers to a common carrier or trucking company.
Trucking: Transporting goods over the road (OTR) via truck.
Trucking Companies: A transportation company that services ground Freight.
Tractor: A vehicle designated for hauling freight. It is a unit consisting of the driver’s compartment, one or more axles, and one or more drive axles.
Transloading: The process of transferring goods from one mode of transportation to another (e.g., truck to ship).
Transportation Management System (TMS): A computer system that manages transportation operations.
Transportation Planner: An individual who aids in determining transportation routing and scheduling, taking into account the needs of the customer and the capabilities of the available facilities.
Truckload (T.L.): Truckload shipping can be defined as transporting goods that will fill up a 48’ or 53’ trailer by volume or weight. An entire truckload is typically contracted to one customer, gaining complete and exclusive use of the carrier’s trailer. A truckload is ideal for anyone shipping large amounts (16+)of pallets, and other modes (LTL, volume, partial) shipping isn’t cost-efficient. Numerous pieces of truckload equipment exist, such as refrigerated trucks and dry van trucks.
Uniform Intermodal Interchange Agreement (UIIA): An agreement that standardizes the interchange contract for equipment interchange between ocean carriers, railroads, and trucking companies.
Van Trailer: A vehicle enclosed by sides and a roof to protect the cargo from weather. Also referred to as a “dry van”.
Vendor: A business that sells products or goods to someone else.
Vessel: A large boat or ship carrying people or goods across the sea or ocean.
Volume Rate: A less than truckload (LTL) shipping term for rates subject to a minimum weight of (generally) 7,000 pounds or more or cubic volume exceeding 750 cubic feet.
Warehousing: The storage of goods. Warehouses that store goods for the company and other firms on a contractual basis are called public warehouses.Freight shippers usually hold their interests at warehouses until they’re ready to ship.
Warehouse: A building for storing goods or products.
Waybill: Also known as a “housebill”, a document provided by a carrier to a shipper that details the shipment and serves as a receipt for the goods; it also indicates the delivery terms.
Weight-break: A transportation term referring to weight at which different rates apply.
Weight Class Rating: A rating method that assesses the cost of shipping based on the weight of the cargo and the distance it travels.
Wheelbase: The distance between the centers of the front and rear wheel sets.
Whiteglove: This service involves inside delivery, light installation, and packaging/removal. It is often performed by moving companies but also by LTL carriers or local delivery companies.
Conclusion
As we wrap up this glossary, we hope it has been a valuable tool for demystifying the world of logistics and freight. From “Intermodal Terminal” to “Just-in-Time,” we’ve simplified the language to make it accessible to everyone.
Whether you’re a newbie or an industry veteran, remember that understanding these terms can empower you in shipping and transportation. So, keep this glossary handy as you explore the fascinating realm of logistics and freight.