GLOSSARY OF FREIGHT TERMS
Click on a letter below to jump to that section:
A
Accessorial Charges – Fees that the transportation carriers charge in addition to regular transit charges. These are for additional services provided, such as delivering to a residence, using a liftgate, doing an inside delivery, going up multiple flights of stairs, etc.
Add Ons – An ocean related charge above ocean freight.
Adjustments – Costs incurred after a shipment has delivered. These costs can be added for a discrepancy between the freight characteristics quoted and the delivered shipment details of weight, class and dimensions, or may be accrued for additional services performed such as a liftgate. Learn how to avoid adjustments.
Agent – A person who transacts business on behalf of another person or company with full or limited decision-making authority. In shipping, an agent may supervise customs procedures, documentation, or insurance. This person may also receive a portion of any monetary gain from a transaction as payment.
Aggregated Shipments – Aggregated shipments consist of multiple shipments that are shipped as a single consignment, often as a container load.
Air Freight – Transportation of goods or product by airplane. Lower shipping costs may apply for certain commodities and destinations.
Air Waybill (Airbill) – A shipping document that is a non-negotiable Bill of Lading. This serves as 1) receipt of goods by an airline (carrier) and 2) as a contract of carriage between the shipper and carrier. It includes (a) conditions of carriage that define (among other terms and conditions) the carrier’s limits of liability and claims procedures, (b) a Definition of the goods, and (c) applicable charges. The airline industry has adopted a standard format for AWB which is used throughout the world for both domestic and international traffic. Unlike a bill of lading, an AWB is a non-negotiable instrument, does not specify on which flight the shipment will be sent, or when it will reach its destination.
Ancillary Charges – Supplemental or additional charges levied over and above the quoted freight rate for transportation. Ancillary charges range from services such as two-man pick-up or delivery, lift-gate, and inside customs clearance, bunker adjustment fees, currency adjustment fees, on-carriage and value added taxes.
Axle Load – The axle load refers to the weight each axle puts on the nation’s highways.
B
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.
Billed Weight (or Chargeable Weight) – The actual or designated weight of a shipment as shown on a waybill and/or (freight) bill of lading.
Bill of Lading (BOL) – The Bill of Lading is a document issued by a carrier, or its agent, to the shipper as a contract of carriage of goods. It is also a receipt for cargo accepted for transportation, and must be presented for taking delivery at the destination. Among other items of information, a BOL contains (1) consignor’s and consignee’s name, (2) names of the ports of departure and destination, (3) name of the vessel, (4) dates of departure and arrival, (5) itemized list of goods being transported with number of packages and kind of packaging, (6) marks and numbers on the packages, (7) weight and/or volume of the cargo, (8) freight rate and amount. It serves as a proof of ownership (title) of the cargo, and may be issued either in a negotiable or non-negotiable form. In negotiable form, it is commonly used in letter of credit transactions, and may be bought, sold, or traded; or used as security for borrowing money. A BOL is required in all claims for compensation for any damage, delay, or loss; and for the resolution of disputes regarding ownership of the cargo.
Blocking and bracing – This term refers to wood or other supports used to keep shipments in place on trailers or in containers throughout the shipping process. This technique is widely used by expert shippers to secure their freight shipment. Learn the best practices for blocking and bracing.
Blind Shipment – When the shipper and receiver are not aware 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.
Box Weight – A lump sum charged to move cargo in various size containers from origin to destination.
Brokerage License – A brokerage license is a legally required document that a broker obtains in order to have the ability to make land, sea and air freight shipping arrangements. Brokerage licenses are different for both transportation and customs. To make sea shipping arrangements, an NVOCC (Non-Vessel Operating Common Carrier) license is required. To make air shipping arrangements, an IAC (Indirect Air Carrier) license is required and obtained through the International Air Transport Association.
Bulk Freight – Freight that is not contained within packages or containers is referred to as bulk freight. Often times, bulk freight comes in the form of liquid or a granular form such as sand or crude oil.
C
C & F (or CNF, CNR) – Cost and freight.
CAF – Currency Adjustment Factor, typically based on a percentage of the freight cost.
Canada Customs Invoice – A Canada Customs Invoice is a type of document, required by Canadian Customs officials to validate the value, quantity, and nature of the shipment, describing the shipment of goods and showing information such as the consignor, consignee, and value of the shipment. The Canada Customs Invoice is required on all export shipments passing through customs on its way to Canada. Commercial shipments to Canada, which are valued at more than $1,600 (Canadian funds), may be subject to duties and sales taxes and must be accompanied by a Canada Customs Invoice. The invoice can be prepared either by the exporter/importer or their agents.
Cargo – All articles, goods, materials, merchandise, or wares carried on-board an aircraft, ship, train, or truck, and for which an air waybill, or bill of lading, or other receipt is issued by the carrier.
Cargo Bay – A dock with doors in a warehouse where vehicles back up to load/unload cargo.
Cargo Insurance – Insurance against loss and loss-by-damage to, or destruction of, cargo. Covers risks to goods and means of transportation involved in the transporting of goods over land or by inland waterways. Insurance on land-only shipments by truck or train, to or from places in the US, is usually considered to be inland marine insurance.
Cargo Manifest – An invoice of all cargo loaded on board a vessel. Listing of all cargo on board a vessel is required by the relevant local authorities.
Cargo Ton – Ocean freight is billed either in weight tons or volume (measurement) tons, depending on the density of the material or the manner in which it is shipped (containerized, break bulk, bulk). Weight ton equals (1) 2,000 pounds (short ton), (2) 2,240 pounds (long ton), or (3) 1,000 Kilo or 2,204.68 pounds (metric ton). Measurement ton equals (1) 40 cubic feet (1.12 cubic meters), or (2) 1 cubic meter (35.3 cubic feet).
Carrier – A company that owns their own equipment and transports freight across the country using drivers, dispatchers, and terminals.
Carrier Certificate and Release Order – A document used to advise Customs of the shipment’s details. The carrier certifies that the firm or individual named in the certificate is the owner or consignee of the cargo.
Cartage – A trucking term that refers to shipping freight within the same city or area.
CBM – Cubic Meter (35.314 cubic Feet = 1 CBM). 1 cubic meter = 35.314 cubic feet.
Certificate of Origin – A document used to assure the buying country precisely which country produced the goods being shipped. A Certificate of Origin is commonly issued by a trade promotion office, or a chamber of commerce in the exporting country. A Certificate of Origin may be required by a foreign government for control purposes or by the foreign importer to ensure that he receives U.S. goods. Specific C/Os are required for duty reductions with Canada (U.S./Canada Free Trade Agreement) and Israel (U.S./Israel Free Trade Area).
CFS/CFS – Container Freight Station to Container Freight Station. A type of steamship line service in which cargo is transported between container freight stations, where containers may be stuffed, stripped, or consolidated. Usually used for less-than-container load shipments.
CFT (or CBF) – Cubic Feet.
Chargeable Weight – The gross weight of a shipment on which freight charges are computed.
Classification – A freight classification is assigned to a shipment for the purpose of applying transportation charges. Freight classifications are used for less than truckload (LTL) shipments.
COD – Cash on delivery is a type of transaction in which the recipient makes payment for a good at the time of delivery. If the purchaser does not make payment when the good is delivered, then the good is returned to the seller.
Commercial Invoice – A document required by customs that provides information about the shipment, including a complete Definition of the goods, an identification of the buyer and seller, the date and terms of sale, quantity, weight and volume of the shipment, type of packaging, the value of the goods, and shipper information. A commercial invoice is a part of export and import documentation and may be used by customs authorities to assess applicable taxes and duties.
Concealed Damage – Concealed damage is damage not visible to the item(s) until the package is opened.
Consignee – The person or company to whom goods are shipped. The receiver of a shipment or the company or place where the goods are delivered.
Consignor – The person or company shipping the goods. The company or place from where the goods are shipped. 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. Combining several smaller shipments into a full container load to obtain a better per-unit cost for shipping. Also called groupage.
Consular Invoice – An invoice covering a shipment of goods, usually required to be certified by the counsel/consulate of the country for which the merchandise is destined. It may be required to be on a special form and be subject to the payment of special fees.
Consularization – A document certified by the Consular of some foreign countries verifying the value, quantity and nature of a shipment.
Container – A standard sized box, primarily designed for the shipment of freight, for products shipped by vessel, air, truck or rail. International shipping containers are generally 20 or 40 feet long: (1) Twenty-footer (typical capacity 33.2 cubic meter or 1,172 cubic feet, maximum payload 28,180 kilogram or 62,130 pounds) and (2) Forty-footer (typical capacity 67.7 cubic meter or 2,392 cubic feet, maximum payload 28,750 kilogram or 63,380 pounds). The typical dimensions of a 20-foot container are: internal length 5.90 meter (19 feet 4 inches), internal width 2.35 meter (7 feet 9 inches), internal height 2.40 meter (7 feet 10 inches). Of a 40-foot container they are: internal length 12.03 meter (39 feet 6 inches), internal width 2.35 meter (7 feet 9 inches), internal height 2.4 meter (7 feet 10 inches). They conform to International Standards Organization (ISO) standards and are designed to fit in ships’ holds. Containers are transported on public roads atop a container chassis towed by a tractor. Domestic containers, up to 53 feet long and of lighter construction, are designed for rail and highway use only.
Container (air) – Air freight containers or ULDs (unit load devices) are made in different sizes and shapes to fit unique requirements of airplane holds. They conform to standards established by the International Airline Transport Association (IATA).
Container (ocean) – Ocean shipping containers are generally 10, 20, 30 or 40 feet in length, 8 feet wide and 8 or 8, 5 feet high and conform to International Standards Organization (ISO) standards. Container types include: standard, high cube, hard top, open top, flat, platform, ventilated, insulated, refrigerated, and bulk.
Containerized Cargo – Cargo that is transported in standardized containers for efficient shipping and handling.
Country of Transshipment – The country through which a shipment must pass and be re-sorted to reach its ultimate destination.
Cross Docking – When merchandise is moved directly from the receiving dock to the shipping dock, eliminating the need to place the merchandise in storage.
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 which cannot be legally exceeded. Violations of cubic capacity occur when the shipment’s size violates a carrier’s cubic capacity rules. Learn how to avoid violations of cubic capacity.
Curbside + Liftgate – A type of delivery service where the driver transports the items to the curb and uses a liftgate to remove the items from the truck to the curb. A liftgate should be used 1) if any single item in the shipment weighs more than 70 pounds; 2) if any single item is particularly awkward or bulky; and 3) the customer lacks the manpower to lift the item from the truck.
Curbside Delivery – A type of delivery service where the driver transports the items to the curb. The customer is responsible for unloading the item from the back of the truck and carrying it into their home or office. When any single piece in a shipment weighs over 70 pounds, a lift-gate is required.
Customs Broker – A firm that represents importers in dealings with Customs. Normally responsible for obtaining and submitting all documents for clearing merchandise through Customs, arranging inland transport, and paying all charges related to these functions.
Customs Clearance – The process of declaring and clearing cargoes through customs to gain authorized entry of those goods into or out of a country.
Customs Entry – Consumption Entry Form required by U.S. Customs for importing goods into the United States. The form contains information as to the origin of the cargo, a Definition of the merchandise and estimated duties applicable to the particular commodity. Estimated duties must be paid at the time the entry is filed.
Customs Invoice – Similar to a commercial invoice, a customs invoice is a special invoice in which the exporter states the Definition, quantity and selling price, freight, insurance, and packaging costs, terms of delivery and payment, weight and volume of the goods for the purpose of determining customs import value at the port of destination. The Canadian Customs Invoice is the most popular of this type.
Customs Value – The value of a shipment as declared by the shipper or appraised by customs as the basis for determining the amount of import duty and other taxes. The value may be determined in several ways, but the most-preferred method is transaction-value which (in addition to the price paid by a buyer to a seller) includes other costs incurred by the buyer, such as packing costs, license fee or royalty, and any other sum(s) that accrue to the seller. It is the customs officer (and not the importer, exporter, or customs broker) who has the final say in assigning this value.
CY/CY Container Yard to Container Yard – A type of steamship line service in which freight is transported from origin container yard to destination container yard.
D
Density – A number signifying an item’s pounds per cubic foot. Density is determined using the length, width, height, and weight of an item. Density is used to determine freight classing and pricing, and is one of the most important aspects of LTL shipping.
Dispatcher – Carrier department that coordinates driver routes including pickups and deliveries. They work closely with carrier customer service representatives and communicate directly with drivers throughout the day.
Dock – A loading or unloading platform at an industrial location or terminal. The space or waterway between piers for receiving a ship.
Dock Workers – Carrier department in charge of loading and unloading freight from carrier terminals. They can also scan PRO numbers into the carrier system.
Door to Airport – Shipping service from shipper’s door to the destination airport for pick up by consignee.
Door to Door – Shipping service from shipper’s door to the destination door. The originating carrier may spot (place) a container outside of shipper’s facility for loading by and at the expense of the shipper. The delivering carrier may place the container or goods outside of the consignee’s facility for unloading by and at the expense of the consignee.
Door to Port – Shipping service from shipper’s door to port of destination. The originating carrier may spot (place) a container outside of shipper’s facility for loading by and at the expense of the shipper. The container will be transported by the shipper to the nearest agreed upon destination port or port of discharge. Not to be confused with destination, this may be a point inland.
Driver – Carrier department of drivers who operate the trucks used to pickup and deliver freight. They work closely with dispatchers to coordinate pickup and delivery routes on a daily basis.
Drop Trailer Consignee – Carrier will drop or spot trailers or vehicles at the Consignee’s facility so the receiver may unload the trailers or vehicles.
Drop Trailer Shipper – When prearranged with Carrier’s local operations, Carrier will spot or drop trailer at the Shipper’s loading facility so the Shipper may load the trailers or vehicles at its convenience.
Dry Run Fee – A Dry Run Fee is a charge assessed by the freight carrier when a pickup is missed because the freight wasn’t ready to ship, the shipper had no knowledge of the pickup, or any reason that results in no freight being picked up. A dry run fee happens when a pickup is scheduled, but does not happen on account of the shipper. The additional charge is assessed for the driver’s time, gas spent on the pickup, etc. Most of these fees are not contingent on any of these factors, so the dry run fee is not more or less expensive if the pickup was one, or twenty, miles from the freight terminal.
Dry Van – Standard equipment for Truckload and LTL shipments. A 53 or 48 ft. trailer that is neither heated nor cooled, used to transport freight.
Dunnage – Loose packaging material such as cardboard, pallets, plywood, foam rubber, air bags, etc. that is used to secure and protect while cargo is in route.
Durable Goods – Generally, any goods (particularly heavy goods) intended to last three or more years. Also called hard goods or consumer durables.
E
Economy Three to Five Day – Also referred to as deferred air usually moves on a space available basis and is not guaranteed to arrive on a given date or time.
Embargo – An embargo is any event that prevents the freight from being accepted or handled. Most often, an embargo is due to international conflict or sanctions imposed on a particular country or group of people. However, embargo events may also include floods, tornadoes or congested highways.
E-Track – is the metal railing that runs horizontally (or vertically) along the inside walls of almost every semi-truck trailer you pass on the interstate. It is approximately 5″ wide, various lengths, with a slot stamped out about every 2″ the entire length. The slots are the key to the entire e-track system. These slots accept special fittings that lock in and are incredibly strong.
Exceptions – When a problem such as shortage or damage is noted at the time of delivery, an exception is noted on the bill of lading before it is signed to designate there was a problem with the shipment.
Export – An export includes all product, good, or commodity, transported from one country to another country in a legitimate manner. Export of goods requires involvement of Customs and other Government authorities in both the country of export and import.
Export Control Classification Number (ECCN) – Identifies controlled items that appear on the Commerce Control List. When commodities are exported from the United States, each item must be classified to determine if an export license is required from any U.S. Government agency. The Commerce Control List is composed of any items which are designated as controlled.
Export Declarations – A list of items you are shipping internationally. It is meant to serve two major purposes: (1) to provide information on amount, nature, and value of exports to the statistical office for compilation of foreign trade data, and (2) to serve as an export control document. In some cases, an export license and/or a certificate of origin is also required to be attached.
Export Documents – All documentation needing completion for an international shipment, including the invoice, the Shipper’s Export Declaration, export license, etc., as required by customs in the importing and exporting countries.
Export License – A document issued by the government of the shipper’s export country which permits the licensee to participate in the export of designated goods to certain destinations. The Export License must accompany the Application for Import Permit.
Export Packing List – An export packing list is more detailed than a domestic packing list. The list contains itemized information in each individual package and indicates the type of package such as a corrugated box, wood crate, or drum. The list also shows the individual net, legal tare and gross weights and measurements for each package. Package markings should be noted with shipper’s and buyer’s references. U.S. and foreign customs officials may refer to the list to check the accuracy of the cargo.
F
FAK (Freight of All Kinds) – Freight of all kinds, usually meaning consolidated cargo. Goods classified FAK are usually charged higher rates than those marked with a specific classification and are frequently in a FFE Forty-foot Equivalent Unit. The standard measurement unit of containerized cargo.
Flatbed – Equipment used in truckload shipping that has no top or side panels, thereby providing no protection to freight. Generally used on large freight items that cannot fit in a standard dry van.
Forwarding Agent – The person in the United States who is authorized by a principal party in interest to perform the services required to facilitate the export of items from the United States. This may include air couriers or carriers.
Free Trade Zone – An area or zone set aside at or near a port or airport, under the control of the U.S. Customs Service, for holding goods duty-free pending customs clearance. Also called foreign trade zone or free zone.
Freight – Any commodity or cargo that is transported by a commercial carrier. Items shipped fall into various categories depending on item definition, size and weight.
Freight Bill – Document for a common carrier shipment that gives a Definition of the freight, its weight, amount of charges, taxes, and whether collect or prepaid. Charges paid in advance are called prepaid freight bills. Charges collected at the destination are called destination or collect freight bills.
Freight Broker – A third party company that supplies shipping rates and service to customers, and acts a bridge between carrier and customer. A full-service broker provides complete shipping service (often using TMS) to their customers on top of lower shipping rates.
Freight Class – A number assigned to freight shipments to identify that item’s transportability. Freight class is used to determine shipping cost and pricing, and is notated on the BOL by the NMFC number.
Freight Consolidation – Cargo consolidation service provided by a freight forwarder in which several smaller shipments are assembled and shipped together to achieve better freight rates and security of cargo.
Freight Forwarder – A person or company whose business is to act as an agent on behalf of a shipper. A freight forwarder frequently consolidates shipments from several shippers and coordinates booking reservations.
Freight Shipping – The transportation of goods from one location to another, usually by a commercial carrier.
Full Container Load (FCL) – A shipment of cargo that fills a container by bulk or load. The term typically refers to ocean containers.
Full Truckload (FTL) or (TL) – A type of freight shipping specializing in moving freight that will fill up a 48’ or 53’ trailer by volume or weight. Full truckload shipping typically is contracted to one customer gaining full and exclusive use of the carrier’s trailer. This aspect of freight is wholly different from LTL and has its own carrier and broker structure. A truckload is ideal for anyone shipping multiple full pallets of freight and LTL shipping isn’t cost efficient. There are multiple pieces of truckload equipment such as dry van, flatbed, and reefer (refrigerated) trucks.
G
H
Handling – A factor in determining an item’s freight class. Items that are fragile or over-sized are often harder to handle, resulting in a higher freight class.
Hazardous Material – A substance or material which the Department of Transportation has determined to be capable of posing a risk to health, safety, and property when stored or transported in commerce.
Household Goods – Personal property within a home such as appliances, books, clothing, furnishings, and furniture.
I
IDE (Immediate Delivery Entry) – Immediate Delivery Entry is used to expedite clearance of cargo. It allows up to ten days for the payment of estimated duty and processing of the consumption entry. In addition, it permits the delivery of the cargo prior to payment of the estimated duty and then allows for the subsequent filing of the consumption entry and duty. Also known as an ID entry.
Inbound Freight – An integral part of supply chain management, inbound freight are shipments coming from vendors.
Inherent Vice – Hidden defect (or the very nature) of a good or property which of itself is the cause of (or contributes to) its deterioration, damage, or wastage. Such characteristics or defects make the item an unacceptable risk to a carrier or insurer. If the characteristic or defect is not visible, and if the carrier or the insurer has not been warned of it, neither of them may be liable for any claim arising solely out of the inherent vice.
Interline – This shipping term is used when the initial carrier of a freight shipment transfers the freight to another carrier to get it to its final destination.
Intermodal Transportation – When freight is shipped using two or more modes of transportation. Intermodal transportation typically refers to truck-rail-truck shipments but may also include truck to air shipping or truck to ship in the event freight is being shipped overseas.
ITE (Immediate Transportation Entry) – Immediate Transportation Entry allows the cargo to be moved from the pier to an inland destination via a bonded carrier without the payment of duties or finalization of the entry at the port of arrival. Known as an IT entry.
Just-In-Time (JIT) – Cargo or components that must be at a destination at the exact time needed.
L
Less Than Container Load (LCL) – A shipment of cargo that does not fill a standard 20’ or 40’ ocean container. Ocean rates for LCL are commonly higher on a per-unit basis than for a full container load. Thus, consolidation of several LCL loads from different places or shippers into a full container can save on costs.
Less Than Truckload (LTL) – A type of freight shipping focused on moving shipments that take up less than a full truckload. LTL has its own structure for pricing, and quoting (including volume quotes). In addition, LTL has its own carrier and broker structure, separate from Truckload shipping. LTL represents the majority of “freight” shipments and are often referred to as “motor freight.”
Liability – Used to determine an item’s freight class by ascertaining the item’s probability of damage or theft.
Liftgate – A lift attached to the back of some carrier trucks that assist with loading and unloading freight when a dock or forklift is not available. Often used for residential deliveries and pickups.
Limited Access Pickup/Delivery: Similar to a residential charge, limited access applies to any location that is outside of a normal shipping business. This charge includes locations such as: Government buildings, schools, universities, prisons, farms, ranches, airports, and shipping ports (among others). This service will also need to be included for any location that is literally “limited” in its accessibility. This includes unusually small parking lots, guard gates, fenced locations, etc. Any place that it would be difficult to maneuver a 53ft. or 48ft. semi-truck will need to be considered for Limited Access. This charge can be very subjective, so it’s best to ask the carrier or your broker if the location will be limited access if you think there might be a chance.
Live Entry – Requires that the commercial invoice, original export license (if applicable), customs entry, and estimated duties must be submitted to U.S. Customs and Border Protection before the shipment can be released.
Load Board – An online message board used by truckload brokers and carriers to assign jobs, pickups, and deliveries.
Load Locks – Also called load distribution bars or cargo load locks, are square bars with an extendible fitting on each end that lock into a track system on the interior of a trailer. Load locks for trailers are made of steel or high performance aluminum.
Load Stabilizer – A wide variety of materials and methods are used to stabilize the load during handling and transportation; in order to minimize shifting which would subject the product and or equipment to damages. Stretch-wrapping, heat-shrink, metal and nylon banding, adhesives, air bags, slip sheets, kick-blocks, and bracing are some of the methods.
Logistics – Logistics is the overall management of relocating resources to where they are required. It involves the integration of transportation, inventory, warehousing, handling, packaging, crating, pick-up and delivery.
Long Haul – A long move that is usually more than 1000 miles.
M
Manifest – A transportation document that lists all cargo on board a vessel as required by the relevant local authorities e.g. customs. Same as cargo manifest.
Motor Carrier – A motor carrier refers to an individual, partnership, or a corporation that is engaged in the transportation of goods. A motor carrier is an enterprise that offers service via motor carriage (truck).
Motor Freight – Motor freight is the transport of freight or goods by truck or motor vehicle.
Motor Property Broker – A freight broker is a person who makes freight shipping arrangements on behalf of a person or company. The broker determines the needs of the client, has experience in the industry and negotiates shipping rates with a carrier who can meet the client’s requirements.
MT (Metric Ton) – 1 MT = 2,204.62 lbs.
N
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 as a result.
Next Day – The act of transporting cargo or freight overnight for delivery or availability the following (next) day; next day usually moves by air but may be accomplished by ground (hot shot) depending on the distance.
NMFC Code (or Number) – National Motor Freight Classification System number that notates an item’s class on the BOL.
Notify Consignee – Accessorial available for purchase on shipments that need an appointment for delivery.
Not Otherwise Indicated (NOI) – A general class rate or NOI is assigned to any freight that has 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, freight stowability, ease of handling, and liability.
O
Ocean Freight – A form of shipping from one location to another via sea on a vessel, barge or steamship.
Ocean Freight Forwarder (OFF) – An Ocean Freight Forwarder (OFF) is an individual or company located in the U.S. which:
- Arranges cargo movement to an international destination.
- Dispatches shipments from the United States via common carriers and books or otherwise arranges space for those shipments on behalf of shippers.
- Prepares and processes the documentation and performs related activities pertaining to those shipments.
Prior to Offering Services in the U.S. Trades, OFFs:
- Are required to obtain a license from the FMC.
- Are required to submit proof of financial responsibility for payment of claims arising from transportation-related activities.
Ocean Freight or Sea Cargo – A freight service for transporting your products over the sea or ocean by vessel commonly referred to as a steamship. The three means of shipping products by ocean vessel are; bulk, break-bulk, and containerized. The means you select depends on the type of cargo you are shipping, the size of the shipment and the handling. Ocean transportation takes longer than shipments by air, but the cost of transportation can be lower.
Ocean (Marine) Insurance (OMI) – OMI covers the interests of shippers, consignees, distributors, and others in goods and merchandise shipped primarily by water or, if in foreign trade, also by air. Note: In the us, marine insurance is defined so broadly as to have resulted in a division of the field into 2 branches- inland (or dry) marine and ocean (or wet) marine. What is called “ocean marine insurance” in the US is known internationally as “marine insurance. OMI (ocean marine insurance) is principally associated with oceangoing vessels and their cargoes. It also covers international air shipments as well as transportation by land or air that connects with an international ocean or air shipment.
Off Site – The product is picked up (as is) without packaging and transported to our warehouse facility where the preparation and packaging for transportation takes place.
On Site – The act of performing all preparation, packaging and crating of the item/s or freight at their place of origin; such as a factory, plant, warehouse, office or medical facility.
OS&D Department – Carrier department in charge of overages, shortages, and damage.
Overage – The actual piece count is greater than the piece count shown on the document accompanying the shipment.
P
Packing List – A document that more thoroughly identifies the goods to be delivered than a bill of lading. A list of packages for each shipment, showing individual breakdown in weights/measure and quantity. A document prepared by the shipper listing the kinds, quantities and values of the merchandise in a particular shipment. A copy is required for all shipments domestic and international and a copy is usually sent to the consignee. The packing list sometimes called an inventory is instrumental for establishing type, quantity and value of the shipment.
Pallet – A reusable platform, usually made of wood, on which freight is loaded. Pallets are used to load/unload goods using a forklift. A pallet can carry a typical load of one metric ton (1,000 kilograms or about 2,200 pounds).
Pallet Exchange – Pallet exchange is when a carrier is expected to bring the amount of pallets with him or her upon pickup and exchange them with the shipper for pallets loaded with freight. Upon unloading the same role is expected with the consignee.
Pallet Size – Although they come in various sizes, the standard size is 48 inches X 48 inches.
Port Authority – A state or local government that owns, operates, or otherwise provides wharf, dock, and other terminal investments at ports.
Port of Discharge – A port where a vessel is off loaded and cargo discharged.
Port of Entry – A place where imported goods are admitted into the legal frontiers of the importing country. It may or may not be same as the port of destination.
Port of Loading – A port where a vessel is loaded and cargo stowed for transporting to another country.
Port of Origin (same as Port of Loading) – A place where a shipment actually originated or began its journey towards its destination.
Power Only Trucking Service – With power only trucking, a semi-truck (the powered unit) and driver are hired to transport your semi-trailer (the unpowered unit) and products to your specified destination. The power only cab service isn’t only limited to a single trailer shipment, this service can provide a team of drivers depending on load size, number of trailers, and logistical needs.
Product and Transportation Analysis – The study of the products characteristics which include size, weight and weight distribution, internal and external materials, susceptibility to abrasion and corrosion, the effect and characteristics of compression, vibration and shock, and its fragility. Also, the consideration of handling, distribution, mode of transportation, and origin and destination factors are used to develop product specific engineered packaging.
PRO Number – Identification number assigned to freight after it has been picked up by carrier that allows for tracking/tracing.
Proof of Delivery (POD) – Document signed at time of delivery by consignee, notating freight received in good form as well as time of delivery and name of receiver. Also known as a Delivery Receipt (DR).
R
Reclass – Invoice discrepancy when a carrier invoices a shipment at a higher or lower class than noted on the BOL.
Reefer – Equipment used to transport freight that needs to be temperature controlled during transit.
Reweigh – Invoice discrepancy when a carrier invoices a shipment at a higher or lower weight than noted on the BOL.
Roll-on/Roll-off (ro/ro) Cargo – Wheeled cargo, such as automobiles, or cargo carried on chassis that can be rolled on or off vehicles, vessels or aircraft without using cargo handling equipment.
S
Same Day – The act of pick-up, packaging if required, transportation and delivery of product or goods during the same day.
Schedule B – Schedule B codes are used to classify the different types of products exported from the United States. Every export item is assigned a unique 10-digit identification code and every 10-digit item is part of a series of progressively broader product categories. Schedule B numbers are required for all export items.
Shipper – Party responsible for initiating a shipment. The origin location of a freight shipment. Opposite of consignee. They are responsible for handing over the freight along with the BOL to the carrier.
Shippers Export Declaration (SED) – The Shippers Export Declaration (SED) is a form required by the export authorities to document an export of goods. This form is required for all U.S. Export shipments with a declared value greater than $2,500.00. Also required for shipments requiring a U.S. Department of Commerce validated export license or U.S. Department of State License regardless of value.
Shippers Letter of Instruction (SLI) – The Shippers Letter of Instruction (SLI) is a Form used by the shipper to authorize a carrier to issue a bill of lading or an air waybill on the shipper’s behalf. The form contains all details of the shipment and authorizes the carrier to sign the bill of lading in the name of the shipper.
Shipping Manifest – A document that lists the pieces in a shipment.
Short Haul – A short move that is usually under 1000 miles.
Step Deck – Equipment used in Truckload shipping, similar to a flatbed trailer but with a lowered deck portion that allows for greater freight height possibility.
Storage in Transit (SIT) – An accessorial that is incurred when a shipment is either requested to be put in temporary storage or is required to be put in temporary storage because it cannot be delivered.
Stowability – Used to determine an item’s freight class by ascertaining the ability of the freight to be stowed alongside other freight in the carrier’s truck. Similar to “handling.”
T
Tariff – A tax assessed by a government on goods entering or leaving a country. The term is also used in transportation in reference to the fees and rules applied by a carrier for its services.
Team (Driver Team): Team of two drivers who alternate driving and resting. This practice is typically used for expedited shipments but will have a greater cost.
Terminal – Carrier hub where LTL shipments are moved during transit. Carrier terminals are situated across the country and come in varying sizes.
Terminal Delivery – An inexpensive delivery option where an item is delivered to a freight terminal for customer pickup.
TEU (Twenty-Foot Equivalent Unit) – The 8-foot by 8-foot by 20-foot intermodal container is used as a basic measure in many statistics and is the standard measure used for containerized cargo.1 x Forty-Foot Equivalent Unit = 2 TEU’s.
Third Party Logistics – A specialist in logistics who may provide a variety of transportation, warehousing, and logistics-related services to buyers or sellers.
Through Rate – A through rate applies to the distance between the point of origin and the delivery destination.
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.
Transit Time (or Time-In-Transit) – The number of days, excluding weekends and holidays, that a package is in transit from pickup to delivery.
Transportation Charges – These represent the base shipping costs for a package. Transportation Charges do not include declared value fees, adjustments or refunds.
Transportation Management System (TMS) – Online freight system used by carriers and freight brokers to coordinate and organize customer shipping needs, including but not limited to: building BOLs, creating shipments, tracking shipments, and invoicing customers.
Truckload (TL) or (FTL) – A type of freight shipping specializing in moving freight that will fill up a 48’ or 53’ trailer by volume or weight. Full truckload shipping typically is contracted to one customer gaining full and exclusive use of the carrier’s trailer. This aspect of freight is wholly different from LTL and has its own carrier and broker structure. A truckload is ideal for anyone shipping multiple full pallets of freight and LTL shipping isn’t cost efficient. There are multiple pieces of truckload equipment such as dry van, flatbed, and reefer (refrigerated) trucks.
Two Day – The act of transporting cargo or freight for delivery or availability on the second business day; two day usually moves by air but may move by ground depending on the distance.
V
Volume Quote – A type of LTL freight quote needed when the shipment is outside the parameters of a standard LTL shipment in regards to weight or size. The quote must be visible on the BOL used by the shipper to be applicable to the shipment.
Volume Rate – A less than truckload (LTL) shipping term for rates that are made subject to a minimum weight of 7,000 pounds or more, or cubic volume exceeding 750 cubic feet.
W
W&I Certificate – Weight and Inspection certificate created by the carrier when a shipment is reweighed or reclassed.
Warehousing – Warehousing refers to the storage of goods in a facility for a specified period of time. Freight shippers usually store their goods at warehouses until they’re ready to ship.
Waybill – A waybill is a Definition of goods with a carrier freight shipment.
White Glove Services – White Glove Services are designed around your custom critical needs and may include the following services: same day pick-up, crating and packaging, or transportation and delivery. The service may also include additional manpower at the origin or destination, lift-gate, inside delivery, floor and room specific, stairs, specialized equipment, unpack and debris removal, and placement of the products.
Wood Crates – A wood crate is a structural framework of members fastened together to form a rigid enclosure, which protects the contents during handling, shipping and storage. The enclosure is usually of square or rectangular design and may or may not be sheathed. With design and structural criteria based on strength, transportation hazards, lumber, fasteners, and space for product requirements, the effective engineering of crates for specific purposes becomes effective.
Z
Zone – A service area on which shipping rates are based.
