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Glossary

Accessorial

Any additional service required outside of the standard shipping procedure will require an additional fee from the carrier which is called an accessorial fee. These include extra services such as: Fuel Surcharge, Lift Gate Service, Inside Pick Up / Delivery, Residential Service, Tradeshow Service, Arrival Notification

Arrival Notification

This is when the carrier notifies the consignee (receiver) of a scheduled delivery date and time. Arrival notification is an accessorial service provided for an additional fee.

Blind Shipment

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.

BOL (Bill of Lading)

A document that establishes the terms and conditions of a contract between a shipper and a transportation company. It serves as a contract of carriage and a receipt for goods. The BOL is provided by the shipping company to the shipper and should be given to the driver upon freight pick up.

Bonded Carrier

A carrier licensed by U.S. Customs to carry Customs-controlled merchandise between Customs points.

Break bulk

To separate parts of a load into individual shipments for routing to different destinations

Break-bulk Terminal

Consolidation and distribution center

Broker

A broker is an independent contractor paid to arrange motor carrier transportation. A broker may work on behalf of a carrier or shipper

Carrier

Another name for the trucking company who transports freight

Claim

Cargo Claim -A “Cargo Claim” is a demand made upon a transportation company for payment, due to freight loss or damage alleged to have occurred while shipment was in the possession of carrier. Pursuant to the National Motor Freight Classification (NMFC) Uniform Bill of Lading, all cargo claims must be filed within 9 months.

COD

A shipment for which the carrier is responsible for collecting the sale price of the goods shipped prior to delivery.

Commodity

Any article of commerce, or 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 company receiving the shipment

Consignor

This is the person or company shipping the shipment.

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 freight can be loaded. Decks allow more freight to be loaded in the trailer, reduce damage, and speed loading and unloading.

Delivery Receipt

Document dated and signed by consignee or its agent at the time of delivery stating the condition of the goods at delivery. The signed delivery receipt is returned to the driver for retention at the terminal. The customer retains the remaining copy.

Dispatch

The act of sending a driver on his/her assigned route with instructions and required shipping papers.

Dock

A platform that is generally the same height as the trailer floor, used where trucks are loaded and unloaded.

Dolly (Jifflox)

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 or jifflox

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.

Exceptions

An exception is any delivery in which the receiver or driver notes a problem on the delivery receipt before signing it. Typically, exceptions concern shortages and damages.

Exclusive Use

Shipper pays a premium rate for the sole use of the 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

Commodities that are exempted from federal regulation, such as agricultural and forestry products.

Flatbed

A semi trailer with no sides and with the floor of the unit a standard height from the ground.

Free Along Side (F.A.S.)

A basis of pricing meaning the price of goods alongside a transport vessel at a specified location. The buyer is responsible for loading the goods onto the transport vessel and paying all the cost of shipping beyond that location.

Free On Board (F.O.B.)

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. Once delivery is complete, the title to all the goods and the risk of damage become the buyer’s.

F.O.B Origin

“F.O.B. Origin” means that title and risk pass to the buyer at the moment of the seller’s delivery to the carrier. The parties may agree to have title and risk pass at a different time or to allocate freight charges by a written agreement.

F.O.B. Destination

“F.O.B. Destination” changes the location where title and risk pass. Under this arrangement, title and risk remain with the seller until they have delivered the freight to the delivery location specified in the contract.

Freight Class

Refers to the National Motor Freight Classification (NMFC) and it is the category of your freight as defined by the National Motor Freight Traffic Association (NMFTA). Your shipment’s freight class determines the carrier’s shipping charges. It identifies the size, value and difficulty of transporting your freight.

FTL

FTL stands for Full Truck Load and refers to any shipment that takes up all or almost all of the truck’s space. A FTL shipment can range from 5000 lbs and up, although some FTL carriers have a minimum weight requirement of 10,000 lbs or more. There are 2 types of FTL shipments: Full Loads, which completely fill the entire truck and Partial Loads, which almost fill the entire truck.

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 cargo

Hazardous Material

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. For more general information, go to the U.S. DOT website at http://hazmat.dot.gov.

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 (also called Multimodal)

Shipment moves by more than one mode of transportation (ground, air, rail, ocean).

Inside Pickup and Inside Delivery

If the driver is required to go inside (beyond the front door or loading dock), to pick up or deliver your shipment, instead of remaining at the dock or truck, then additional fees will be charged.

Jifflox (also called Dolly)

Converter that provides an extra axle and fifth wheel and is used to connect multiple trailers.

Lift Gate service

When the shipping or receiving address does not have a loading dock, manual loading or unloading is necessary. A lift gate is a platform at the back of certain trucks that can raise and lower a shipment from the ground to the truck. Additional fees apply for this service.

Linehaul

The transportation of freight between cities especially the origin and destination terminal (excluding pickup and delivery service)

Less than Truckload (LTL)

LTL stands for Less Than Truckload, which means the shipment does not completely fill an entire truck. A LTL shipment typically ranges anywhere from 150 lbs to 10,000 lbs.

Minimum Charge

The lowest charge that a shipment will be assessed after the discount has been accounted for.

Multimodal Transportation (also called Intermodal)

Freight movement involving more than one mode of transportation (ground, air, rail, ocean).

National Motor Freight Classification (NMFC)

Industry standard tariff published by motor carriers containing rules, descriptions, and rating on all commodities moving in commerce; used to classify freight for the purpose of rating the freight bill. More information about freight classes and the NMFC can be found at www.nmfta.org.

NMFC Number

This is the item number that specifically identifies each type of product that can be shipped by a LTL carrier. The National Motor Freight Traffic Association (NMFTA) assigns NMFC item #’s to all products along with a freight class. The NMFC # identifies what you are shipping and its freight class.

PRO Number

This is the number that is assigned by the carrier to reference your shipment, which is also used for tracking your shipment.

Re-delivery or Re-consignment Fee

After a failed delivery attempt, the carrier will assess a fee for having to deliver the freight again. This fee is usually based on weight with a minimum charge.

Reefer

A reefer is a refrigerated trailer with insulated walls and a self powered refrigeration unit, most commonly used for transporting food.

Residential Delivery

Carriers defines a business zone as a location that opens and closes to the public at set times every day. If you are a business located in a residential zone, (among personal homes or dwellings) or are shipping to or from a residence, the carrier may charge an additional residential fee.

Reweigh and Inspection Fee

If the carrier suspects that the weight or class of your shipment is inaccurate, then they will charge a fee to reweigh and re-class your shipment.

Tariff

A “Tariff” is a document setting forth applicable rules, rates, and charges for the movement of goods. A tariff sets forth a contract of carriage for the shipper, the consignee, and the carrier. Since January 1, 1996, motor carriers are not required to “publish” tariffs. However, in accordance with federal law, tariffs must be provided to a shipper upon request.

Shipper’s Letter of Instruction

The Shipper’s Letter of Instruction, while not required by any Regulatory Agency, serves a very important function. Its purpose is to convey specific instructions from the exporter to his agent, usually an international freight forwarder. The SLI is used to advise the details of the inland movement to port of exit, communicate the necessary information to allow the freight forwarder to prepare the required export documentation package, including the SED, and instruct the freight forwarder on the distribution of the export documents as well as any other “standing instructions.”

Third Party Shipments

This is a shipment in which the person who arranges the shipment is neither the originating nor the receiving destination. The third party makes the arrangements for the shipper and receiver.

UN Number

An internationally accepted 4-digit number used to identify hazardous material.

Waybill

A “Waybill” is a non-negotiable document prepared by or on behalf of the carrier at the point of shipment origin. The document shows point of origin, destination, route, consignor, consignee, description of shipment, and amount charged for the transport service.