Terms |
Description |
Accessorial charges (also called assessorial charges) |
Fees for performing services beyond standard pickup and delivery. Examples would be: inside delivery, storage charges, lift gate, residential pickup or delivery. |
Air freight forwarder |
An air freight forwarder or "indirect air carriers" provides pickup and delivery service under their own tariff, and consolidates shipments into larger units. They prepare shipping documentation and tenders shipments to the airlines. Typically, they don't operate their own aircraft. Since the forwarder tenders the shipment, the airlines consider the forwarder to be the shipper. |
Air Waybill |
An air waybill is a shipping document that an airlines uses which is very similar to a bill of lading. Air waybill is really an agreement between the shipper and airline that states the terms and conditions of transportation. It will also contains shipping instructions, product descriptions, and relevant transportation charges. |
A Waybill |
Non-negotiable document prepared by or on behalf of the carrier at origin. The document specifies the origin point, the destination points, the route, shipper, consignee, cargo description and charges for the transportation service. |
Articles of Extraordinary Value |
Carriers are not liable for "documents, coin money, or articles of extraordinary value" unless the items are specifically rated in published classifications or tariffs. Exceptions may be made by special contracts. Any agreement has to stipulate the value of the articles and it must be endorsed on the bill of lading. Articles can include precious stones, jewels and currency, however, many include restrictions on goods with values in excess of a specified amount. In many cases where the value is not defined, the carriers have valuation based on the NMFC classification of the item. |
Bill of lading (BOL or B/L) |
Bill of Lading servers as a receipt for the goods delivered to the transportation provider for shipment; a definition or description of the goods; evidence of title to the relative goods, if "negotiable". It is probably the most important legal document in any movement of freight. |
Bill of lading exceptions |
The exceptions that typically are defined in a bill of lading. They release the transportation provider from liability for loss or damaged arising from special circumstances like:
|
Bonded carrier |
Transportation provider that is granted by the U.S Customs to carry customs-controlled cargo between various customs points. |
Break bulk |
Separating parts of a load to be routed to various destinations. |
Break bulk terminal |
Basically a consolidation or distribution centers. Freight coming from various locations to a centralized location to be loaded together in a trailer/container going to a similar destination. Or, inbound freight that has to be distributed to local customers. |
Broker |
Independent contractor that arranges the transportation. A typical broker has access to multitude of transportation companies that could assist a client in providing cost comparisons or service related requirements. |
Carmack |
Industry terms for loss or damages to the cargo that was tendered to a transportation company. It basically states that a motor carrier must issue a bill of lading and pay the actual loss or injury to the property. It also specifies limits that a carrier can be liable for. Carriers can limit their damages to $25 per pound or $100,000 a shipment. |
Cartage agent |
Carriers who perform the pickup and delivery for the other trucking companies and air lines. Cartage agents typical use their own paperwork. |
Claim |
A cargo claim is filled by either the shipper or the consignee for damages caused by the transportation company for payment towards the goods that were allegedly lost or damaged while the cargo was in the transportation provider's possession. Pursuant to the National Motor Freight Classifications Uniform Bill of Lading, all claims must be filed within nine months of the initial transaction. |
COD |
Cash on Delivery-This could mean that either the freight charges are to be paid when the cargo is being delivered or the transportation provider is instructed to collect the sales price of the goods declared by the shipper. |
Commodity |
The content(s) description of the shipment. |
Common carrier |
For Hire transportation provider. These are transportation providers that can be hired to transport goods that do not belong to them for compensation. They are like the Taxis of cargo/shipment. |
Concealed loss |
Shortage of cargo/shipment or damages that were not noticed during the delivery. |
Consignee |
The last stop or the last transfer of the cargo/shipment. This is usually the individual or an organization that the goods are addressed to. |
Deck trailers |
Trailers that have rows of tracking on each sidewall. Load bars are placed into the tracks to form a "deck" which the goods and be loaded. They allow more goods to be loaded in a trailer and reduce the possibility of damage to the cargo. |
Delivery receipt |
Signed receipt or document by the consignee or agent that states the condition and package count of the cargo at each step of the cargo transfer to unrelated party. |
Dispatch |
To send a driver with instructions and required paperwork for pickup or delivery of cargo. |
Dock |
A platform that is the same height as the trailer/container used to load and unload without an assistance of lift gate. The most common dock height is between 48-52 inches. |
Dolly |
Converter that provides an extra axle and fifth wheel and is used to connect multiple trailers. |
Doubles |
Vehicle configuration in which a tractor pulls two trailers connected by a dolly. |
Drayage |
Typically, a drayage applies to rail and ocean containers that are being pulled from a port or a railway terminal. This is transporting an empty container to a location where goods will be shipped from. It could also be hauling a load by a cart with detachable sides. |
Electronic data interchange (EDI) |
Digital transmission between various parties. These could also be purchase orders, invoices, bills of ladings, dispatch for pickup, and tracking. |
Exceptions |
Anytime a delivery in which the recipient or driver notes a problem on the delivery receipt before signing it. |
Exclusive use |
Sole use of a trailer or container. The container or trailer is sealed at loading and the seal number is recorded on a the manifest. The seal number is verified at the destination where the cargo is to be unloaded. When and exclusive use of an equipment is requested, no other freight can be added to the equipment. Exclusive use requests are priced higher. |
Exempt product |
Products that except from any federal regulations. These products are usually agricultural or forestry products. |
FOB destination |
The risk and the title of goods are with the seller until it has been delivered to the location specified in the bill of lading. |
FOB origin |
The risk and title of goods are passed to the buyer when the seller hands over the goods to the transportation provider. Parties may have an arrangement where the title and risk pass at different time or designate the shipping charges by a written agreement. |
Free along side (FAS) |
Price of goods alongside a transport vessel at a specified location. The buyer is the responsible party for loading the goods and paying all the shipping costs beyond the initial location. |
Free on board (FOB) |
The term is used in a sales contract. The seller agrees to deliver the merchandise to the specified place in the contract at the seller's expense. when the delivery is completed, the tile of the goods and any damage becomes the buyer's responsibility. |
Freight |
Products, goods, cargo; Anything being transported. |
Freight bill |
Invoice for the transportation costs. This typically has the information of the shipper, consignee, weight, and commodity. The bill is marked prepaid or collect. If it is marked prepaid, the shipper is the one paying the shipping costs. If collect, the consignee is the one responsible for the shipping charges. |
Freight broker |
An individual or an entity that arranges the transportation of cargo without actually providing the equipment, truck, or the driver handling the transportation. |
Freight forwarder |
A freight forwarder consolidates less-than-truckload (LTL) or (LCL) shipments into container or trailer. Freight forwarders are designated as common carriers. They can issue bills of lading and accept responsibility for goods. |
Gross vehicle weight (GVW) |
This the combined weight of the object rolling down the road. Basically adding the weight of the trailer/container, cargo inside, and the tractor hauling it. |
Hazardous material |
Materials that are defined by the U.S Department of Transportation (DOT) as substances that are hazardous in a particular amount or form which can pose an unreasonable amount of risk to health and safety and/or other property. They typically include: explosives, radioactive material, etiologic agents, flammable/combustible liquid or solid; poison; oxidizing or corrosive material; and compressed gas. |
In bond |
Shipments moving under bond from point of entry to an interior U.S. destination for clearance or to another border location for clearance. |
Intermodal |
Shipments that move by more than one specific mode of transpiration. |
Jifflox |
Equipment that provides an extra axle or fifth wheel that can be used to connect multiple trailers. |
Less-than-truckload (LTL) |
Cargo that will occupy less than a truckload/trailer load. Anything that takes up less than 14 linear fee or weighs less than 10,000 lbs. |
Linehaul |
Movement of cargo from the origin terminal all the way to the destination terminal. This term is usually used with LTL carriers and does not include the pickup and delivery. |
Minimum charge |
The lowest possible charge for a shipment. |
Multi-modal transportation |
Shipments that move by more than one specific mode of transpiration. |
National Motor Freight Classification (NMFC) |
Industry standard tariff published by motor carriers containing rules, descriptions and rating on all products moving in commerce; used to classify goods to rate the freight bill. |
Non-vessel operating common carriers (NVOCC) |
A type of ocean freight forwarder. NVOCCs book space in large quantities. NVOCCs can directly obtain rates from the vessel operator where as a Freight Forwarder would need to utilize an NVOCC to move freight internationally. NVOCC's bond and licensing requirements are more stringent than of a Freight Forwarder. |
Order notify |
This is where a shipment requiring the consignee to surrender the original endorsed bill of lading at delivery. A shipper may use this method to guarantee payment for goods shipped. It's most commonly used with truckload shipments. |
Origin |
The place where the shipment is typically picked up from. |
Overage |
Units received is in excess of the quantity shown on the bill of lading. |
Overcharge claims |
Discrepancy in charges that can stem from over payment, weight, class, dimensions, or description correction. |
Payment terms |
Shipper is responsible for payment for prepaid shipments, and the consignee is responsible for payment for collect shipments unless a third party is indicated as payer on the shipping papers. This could also mean that the responsible paying party has credit terms or the charges needs to be collected at the delivery. |
Pickup and delivery (P&D) |
Where the cargo is picked up from and delivered to. It could be also between the origin of the cargo and carrier's terminal or the destination terminal and the consignee. |
PRO |
progressive rotating order. This is also referred to as the tracking number. It should by a 10 digit number that is assigned to each shipment. |
Rail |
Cargo that is transported onto a train/rail yard. |
Shipper’s agent |
Typically a freight forwarder or broker. Shipper's agents generally arrange for truckload or container load shipment transportation. Shipper's agents commonly provide services related to warehousing or loading and unloading. |
Shipping documents |
Papers accompanying a shipment. |
Shortage |
The number of units received is less than the quantity shown on shipping documents. The outstanding units may be delivered later. |
Tariff |
A Tariff is a document setting forth applicable rules, rates and charges to move goods. A tariff sets forth a contract for the shipper, the consignee and the carrier. Since Jan. 1, 1996, motor carriers are not required to publish tariffs. However, in accordance with federal law, tariffs must be provided to a shipper on request. |
Terminal |
Shipments being pickup from local shippers, prepared for local delivery or moving to other terminals. |
Third party |
Any other party besides the shipper or the consignee responsible for the shipping charges. |
Truck tonnage |
Weight in tons. |
Truckload (TL) |
The opposite of LTL where a freight/cargo utilizes more than 14 feet or 10,000 lbs. |
UN Number |
An accepted 4 digit number used internationally to identify hazardous goods/cargo. |