LTL Freight Terms and Definitions
Accessorial charges
Charges made for performing services beyond
normal pickup and delivery, such as inside delivery or storage charges.
Agent
A person who transacts business on behalf of another person or
company with full or limited decision-making authority.
Air freight forwarder
An air freight forwarder provides pickup and delivery
service under its own tariff, consolidates shipments into larger units, prepares
shipping documentation and tenders shipments to the airlines. Air freight
forwarders do not generally operate their own aircraft and may therefore be
called “indirect air carriers.” Because the air freight forwarder tenders the
shipment, the airlines consider the forwarder to be the shipper.
Air Waybill
An air waybill is a shipping document airlines use. Similar to a
bill of lading, the air waybill is a contract between the shipper and airline
that states the terms and conditions of transportation. The air waybill also
contains shipping instructions, product descriptions, and transportation
charges
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 agreement. If an
agreement is made, the stipulated value of the articles must be endorsed on the bill of
lading. Articles may include precious stones, jewels and currency. Many tariffs include
restrictions on goods with values in excess of a specified amount
Axle
Each freight shipping transport has a weight limit. The axle load refers
to the weight limit permitted for each axle over the nation’s highways.
Back Haul
The second half of a carrier’s round trip in which the freight
shipping cost is less than the first half. The second half can be referred to as
the back haul rate.
Beneficial Owner
This is a rail term that refers to the actual owner of the
lading being shipped.
Bill of lading (BOL or B/L)
1. A bill of lading is a binding contract that serves three main
purposes: a
receipt for the goods delivered to the transportation
provider for shipment;
2. A definition or description of the goods; and
3. Evidence of title to the relative goods, if “negotiable”.
Blocking
Also known as bracing, refers to wood or other supports used to
keep shipments in place on trailers or in containers.
Blind Shipment
When the customer has contracted with the carrier so that
the shipper or consignee information is not given. This keeps the origin
location and receiving destination unaware of each other and provides two
separate Bills of Lading in which both show the carrier’s terminal as the
shipper and the receiver.
Bogie
This is a rail term that refers to a frame with wheels on which a container
is mounted for over-the-road transport.
Bonded carrier
A transportation provider U.S. Customs allows to carry
customs-controlled merchandise between customs points.
Break bulk
To separate parts of a load into individual shipments for routing to
different destinations.
Breakbulk terminal
Consolidation and distribution center. A terminal that
unloads and consolidates shipments received from its smaller terminals and from
other breakbulks. This terminal may have its own city operation.
Example: Freight destined for Texas from several New England states may be
consolidated at a Philadelphia breakbulk terminal for forwarding to Texas.
Broker
A broker is an independent contractor paid to arrange motor-carrier
transportation. A broker may work on the carrier’s or shipper’s behalf.
Bulk Freight
Freight that is not contained within packages or containers is
referred to as bulk freight
Carrier
A person or company who transports freight for a fee.
Cartage
A trucking term that refers to shipping freight within the same city
or area
Cartage agent
A carrier who performs pickup or delivery in areas that a
carrier does not serve. Cartage agents use their own paperwork while
transporting the shipment.
Chassis
A rail term that refers to a frame with wheels and locking devices to
secure a container during shipping.
Claim
is filed to request payment from a carrier due to loss or damage
alleged to have occurred while they possessed the shipment
Classification
A freight classification assigned to an article for the purpose
of applying transportation charges. This is used for less that truckload (LTL)
shipments.
C.O.D.
is a request to the carrier from the shipper. This request is for the
carrier to pick up a check upon delivery that is payment for the goods being
delivered. A C.O.D. request will be stated on the bill of lading and will state
accepted forms of payment (company check or cashier’s check).
Concealed damage
consists of damage to the contents of a package without
the damage being apparent externally.
Consignee
The person or company receiving the shipment. (Receiver)
Consignor
The person or company shipping the shipment. (Shipper)
Claim
Cargo
A Cargo Claim is a demand made on a transportation company for payment
for goods allegedly lost or damaged while the shipment was in the transportation
provider’s possession. Pursuant to the National Motor Freight Classification (NMFC)
Uniform Bill of Lading, all cargo claims must be filed within nine months.
Overcharge/Undercharge
Overcharge or undercharge claims are demands on a
transportation company for a refund of an overcharge from the erroneous application
of rates, weights and/or assessment of freight charges.
COD
A shipment for which the transportation provider is responsible for collecting
the sale price of the goods shipped before delivery.
Commodity—Any article of commerce. Goods shipped.
Common carrier
Company that provides transportation services to the public in
return for compensation.
Concealed loss
Shortage or damage not evident at delivery.
Consignee
The person or place where a shipment will be transferred for the last time
(destination); the individual or organization to whom the goods are addressed.
Cubic Capacity
The total freight load capacity of any truck, train or ship is measured in
cubic feet, and therefore the carrying capacity is known in the industry as cubic capacity.
Customs Broker
A person or company who is licensed by the U.S. Treasury Department to
act on behalf of freight importers and exporters with respect to U.S. Customs transactions.
Deck trailers
Trailers with rows of tracking on each sidewall and deck load bars. The load
bars fit into the tracks to form temporary “decks” on which goods can be loaded. Decks
allow more goods to be loaded in the trailer, reduce damage and speed loading and
unloading.
Delivery receipt
Document a consignee or its agent dates and signs at delivery, stating the
condition of the goods at delivery. The driver takes the signed delivery receipt to the terminal
for retention. The customer retains the remaining copy.
Density
is the measurement of the volume of a shipment. The calculation for density is
equal to the weight of the product divided by (length x width x height / 1728). Density is
measured in pounds/cubic foot. DPCF Equals [Weight/(LXWXH/1728)]
Dispatch
The act of sending a driver on his/her assigned route with instructions and
required shipping papers. Carriers maintain contact with drivers throughout the day by
phone, pager, radio, satellite communication or cellular phone.
Dock
A platform, generally the same height as the trailer floor, where trucks are loaded and
unloaded.
Dolly
Converter that provides an extra axle and fifth wheel and is used to connect multiple
trailers.
Doubles (Trailers)
Vehicle configuration in which a tractor pulls two trailers connected by
a dolly.
Drayage
Also known as connecting road haulage.
*The hauling of a load by a cart with detachable sides (dray).
*Road transportation between the nearest railway terminal and the stuffing place.
Electronic data interchange (EDI)
The electronic transmission of routine
business documents, such as purchase orders, invoices and bills of lading,
between computers in a standard format. The data formats, or transaction sets, are
usually sent between mainframe computers.
Embargo
An embargo is any event that prevents the freight from being accepted
or handled. Embargo events include floods, tornadoes or congested highways.
Exceptions
An exception is any delivery in which the recipient or driver notes a
problem on the delivery receipt before signing it. Typically, exceptions concern
shortage and/or damage (Claims)
Exclusive use
A shipper pays a premium rate for the sole use of a trailer. The
trailer will be sealed at loading, and the seal number is recorded on the manifest.
The seal number is verified before the trailer is unloaded at destination. When a
shipper requests an exclusive-use trailer, no other freight may be added to the unit
even if space permits.
Exempt Commodity
Products that are exempt from federal regulation, such as
agricultural and forestry products.
Free astray
A shipment that was unloaded at or miscarried to the wrong terminal
and is then billed and forwarded to the correct terminal for free. Or a shipment
that was damaged in transit and return to the shipper for free.
Free time
The amount of time that freight is held before storage charges begin
accruing. Or the amount of time a driver waits to load/unload before charges
accrue
FOB destination
Under this arrangement, title and risk remain with the seller
until it has delivered the goods to the location specified in the contract.
FOB origin
Title and risk pass to the buyer at the moment the seller delivers the
goods to the carrier. The parties may agree to have title and risk pass at a different
time or to allocate shipping charges by a written agreement.
Free on board (FOB)
An acronym for free on board when used in a sales
contract. The seller agrees to deliver merchandise, free of all transportation
expense, to the place specified by the contract. After delivery is complete, the title
to all the goods and the risk of damage become the buyer’s.
Freight
Any product being transported.
Freight bill
Shipping document that a carrier prepares to confirm shipment
delivery and indicate payment terms (prepaid or collect). The document describes
the shipment, its weight, the amount of charges and taxes and whether the bill is
collect or prepaid. If the bill is prepaid, the shipper pays the shipping charges. If
the bill is collect, the consignee pays the shipping charges. (Also see PRO)
Freight broker
Any person that sells transportation without actually providing
it. The term usually refers to an agent for truckload shipments, matching small
shippers with carriers. Freight brokers often do not accept any responsibility for
their shipments.
Freight charge
The amount that is due for freight transportation.
Freight forwarder
A freight forwarder combines less-than-truckload (LTL) or
less-than-carload (LCL) shipments into carload or truckload lots. Freight forwarders
are designated as common carriers. They also issue bills of lading and accept
responsibility for goods. The term may also refer to the company that fills railroad
trains with trailers. (See also freight broker and shipper’s agent.)
Freight forwarder is a company that consolidates freight for shippers, manages
shipments through LTL carriers, and forwards on lower rates to customers due to a
higher volume of shipments than individual shippers obtain.
Fuel Surcharge
An extra charge imposed by the carriers due to the excessive costs
for diesel gas. The charge is a % based upon the U.S. National Average Diesel Fuel
Index. The fuel surcharge will remain in effect as long as the U.S. National Average
Diesel Fuel index remains at or above $1.10 per gallon
Gross vehicle weight (GVW)–The combined weight of the vehicle (tractor and
trailers) and its goods.
Hazardous material
Hazardous materials are defined by the U.S. Department of
Transportation Hazardous materials are defined by the U.S. Department of
Transportation in accordance with the Federal Hazardous Material Law. A substance
or material may be designated as hazardous if the transportation of the material in a
particular amount and form poses an unreasonable risk to health and safety or
property. Hazardous material may include: an explosive, radioactive material;
etiologic agent; flammable or combustible liquid or solid; poison; oxidizing or
corrosive material; and compressed gas
In bond
Shipments move under bond from point of entry to an interior U.S.
destination for clearance or to another border location for clearance.
Intermodal
Shipment moves by more than one mode of transportation (ground,
air, rail or ocean). See also multimodal.
Jifflox
Converter that provides an extra axle and fifth wheel and is used to
connect multiple trailers. See also dolly.
Less-than-truckload (LTL)
Goods weighing less than 10,000 pounds from
several shippers loaded onto one trailer.
Less than truckload (LTL) is an amount of freight that is less than what is
required for the application of truckload rates. LTL freight shipping is the easiest
and most economical way to move large and bulky items.
Linehaul
Movement of goods between cities or between YRC Freight terminals,
particularly between origin terminal and destination terminal, excluding pickup
and delivery service.
Minimum charge
The lowest charge for which a shipment will be handled after discount
and/or adjustment.
Multimodal transportation
Shipment moves by more than one mode of transportation
(ground, air, rail or ocean). See also intermodal.
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. You can obtain more information
about shipment classes and the NMFC. To determine your shipment’s classification, check
the NMFC guide.
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.
Non-vessel operating common carriers (NVOCC)
A type of ocean freight
forwarder. NVOCCs book space in large quantities for a reduced rate, then sell space
to shippers in lesser amounts. NVOCCs consolidate smaller shipments into a
container load that ships under one bill of lading.
Not Otherwise Indicated (NOI)
A general class rate or NOI is assigned to any
freight that has no rate listed in the NMFC.
Order Notify
Also called negotiable bill of lading, this is 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
Site where the shipment first enters the carrier’s system
Overage
Number of units received is in excess of the quantity shown on shipping
documents. Overages should not be delivered to a customer. They’re returned to the
terminal unless the terminal receives more information while the driver is making
pickups and deliveries.
Overcharge claims
The payor of the shipping charges files an overcharge claim to
dispute a discrepancy in charges that can stem from overpayment, weight or
description corrections, etc.
Payment terms
Generally, the 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 payor on the shipping papers.
PRO
An acronym for progressive rotating order; it is a multi-digit number
assigned to each shipment and is a tracking number and a carrier freight invoice
number.
Revenue
Shipping charges the transportation provider receives for transporting
goods.
Shipper’s agent
A shipper’s agent is not a carrier, freight forwarder or broker.
Shipping documents
Papers accompanying a shipment as it moves through the
carrier’s system, include bills of lading (PDF), packing slips (PDF), customs
paperwork, manifests and shipment bills.
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
Freight building and grounds where shipments are prepared for local
delivery or transportation to other terminals.
Time-Critical
When a freight shipment delivery is set to the earliest possible time.
Time-Definite
Time-definite deliveries guarantee that the delivery will occur on a
specific day or time of day.
Transit Time
The total time from pick up to delivery.
Third party
A party other than the shipper or consignee that is ultimately
responsible for paying the shipment charges.
Truck tonnage–The weight (in tons) of a shipment transported by truck.
Truckload (TL)
Large-volume shipment from a single customer that takes up all the
trailer space so no other shipment can be loaded. Typically a 48 or 53 foot trailer.
UN number
An internationally accepted four-digit number used to identify
hazardous material.
Volume Rate
A less than truckload (LTL) term for rates that are typically made
subject to a minimum weight of 7,000 pounds or more, or cubic volume exceeding
750 cubic feet.
Waybill–A “Waybill”
is a non-negotiable document prepared by or on behalf of the
carrier at origin. The document shows origin point, destination, route, consignor,
consignee, shipment description and amount charged for the transportation service.
See also air waybill.