Freight transportation and logistics terminology

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. 

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.
 

Bill of Lading (BOL) - The bill of lading (BOL) is 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. 

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. 

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. 

Cartage - A trucking term that refers to shipping freight within the same city or area.
 

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.

Commodity- Refers to the goods being shipped. These could be any article of commerce.

Common Carrier - An LTL common consolidates and deconsolidates freight for multiple companies or brands while offering a set route and rate. They are often motor carriers, trucking companies or freight service providers that operate on a similar schedule with a strict set of guidelines. 

Concealed Damage - Concealed damage is damage not visible to the item(s) until the package is opened. 

Consignee - The individual who is financially responsible for the receipt of a freight shipment. This person is usually the receiver of the shipment as well. 

Consignor - 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 truck trailer with no wheels and is now among the most common freight shipping methods in the United States and abroad. Containers are used for intermodal shipping and come in standard sizes to ensure they fit on standard trucks, rail cars and container ships.

Delivery Receipt (DR) - Also known as a Proof of Delivery (POD). Document signed at time of delivery notating if the freight is accepted in good condition. Most often used for claims purposes

Density- Measurement of an item's pounds per cubic foot. Important for freight quotes, and density-based freight class. 

Detention- Fee assessed by a carrier when a truck is held up at delivery or pickup longer than the time allotted for the service.

Dolly- An auxiliary axle assembly having a fifth wheel used for purpose of converting a semitrailer to a full trailer. Dollies can be used to haul multiple trailers behind a singlepower unit.(also referred to as Bogie) . Converter that provides an extra axle and fifth wheel and is used to connect multiple trailers.

Dunnage - Packing material used to protect freight in the trailer during transit.

Electronic Data Interchange (EDI)- Computer to computer transmission used primarily in freight to schedule pickups with carriers through a transportation management system.

ETA - Estimated time of arrival.

ETD - Estimated time of departure.

Exceptions – errors observed at the hour of trade or delivery and are identified with the physical qualities or number of bits of the cargo.

Expedited Shipment - Freight that is delivered faster than a standard shipment, for an additional fee.

Flatbed - Equipment used in truckload shipping to transport large items or machinery.

Freight Bill- Shipping document used to confirm delivery of the freight and indicate the terms of payment. They are given to the motor carrier. The freight bill gives description of the freight, its weight, amount of charges, taxes, and whether collect or prepaid. Charges paid in advance are called prepaid freight bills. They give a description of the freight, its weight, amount of charges, taxes, and whether the bill is collect or prepaid. If bill is prepaid, freight charges are paid by shipper. If bill is collect, freight charges are paid by the receiver of the goods.

Handling - A factor in determining an item's freight class. Items that are fragile or over-sized are often hard to handle, resulting in a higher freight class.

Less Than Truckload (LTL) - A form of freight shipping focused on moving freight that takes up less space than a full truckload. LTL has different pricing and functions than full truckload freight shipping.

Load Board - Online message board where jobs/loads are posted allowing carriers and brokers to schedule pickups and deliveries.

Lumping - When the driver helps load or unload the truck at pickup or delivery.

National Motor Freight Classification (NMFC) - Tariff containing descriptions, classifications, and rules for shipping commodities. NMFC codes are tied to freight class.

This shipping term is often used in context of the NMFC number which helps to determine class for all LTL shipments.

Freight class is an especially complicated part of the shipping/freight process, but know that each and every LTL shipment will have an NMFC number and without it on the BOL, you're more likely to get hit with a Re-Class.

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.

Net Weight - Weight of a shipment not including packaging.

Pallet – a stage that is versatile and holds materials for capacity or transportation.

Pallet Deck – a metal support that enables two pallets of freight to be stacked on top of each other in a trailer. Pallet decks are usually used in line haul movements.

Port of Entry – an administration assigned port where remote merchandise are assessed before being conceded into a nation.

Pro Number - Tracking and identification number given to freight once it is picked up and in transit.

Proof of Delivery (POD) - Also known as a Delivery Receipt (DR). Document signed at the time of delivery notating damage or loss, or if the freight is delivered as expected. PODs are valuable in the filing of freight claims.

Reclass - Invoice discrepancy where the carrier invoices the shipment at a higher or lower class than notated on the BOL.

Reefer - Type of equipment that is temperature controlled, most often a refrigerated truck used to transport perishable items.

Safety Rating – estimates the security of a company. A security rating depends on what number of miles have been driven between any forms of accident.

Step Deck - Type of equipment used in truckload shipping for larger pieces.

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.

Tractor – A tractor is the power unit that pulls trailers. There are two kinds of tractors: single axle and double axle. Single axle tractors are normally utilized for pickup and delivery while double axle tractors are ordinarily utilized for line hauls.

Transit Time - The time between when a shipment is picked up and delivered. Standard LTL shipments have estimated transit times.

Transportation Management System (TMS) - A web-based tool that assists customers in scheduling pickups, creating BOLs, tracking shipments, and more.

Truckload (TL) - Truckload shipping can be defined as the transportation of goods that will fill up a 48’ or 53’ trailer by volume or weight.  Full truckload (FTL) shipping typically is contracted to one customer gaining full and exclusive use of the carrier’s trailer. 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 refrigerated trucks and dry van trucks.

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.