Glossary - LTL Shipping Terms

Generic Shipping Terms | LTL Terms | UPS Terms

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

A

Accessorial Charges (also called "Assessorial Charges") – Charges made for performing services beyond normal pickup and delivery such as inside delivery or storage charges.

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 used by the airlines. 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, a description of the commodity, 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 commodities with values in excess of a specified amount.

B

Bill of Lading (B/L) – A bill of lading is a binding contract that serves three main purposes: (1) a receipt for the goods delivered to the carrier for shipment; (2) a definition or description of the goods; and (3) evidence of title to the relative goods, if "negotiable".

Bill of Lading Exceptions – The terms and conditions of most bills of lading release carriers from liability for loss or damage arising from: (1) an Act of God, (2) the public enemy, (3) the authority of law, or (4) the act or default of the shipper. In addition, except in the case of negligence, a carrier will not be liable for loss, damage, or delay caused by: (1) the property being stopped and held in transit upon the request of the shipper, owner, or party entitled to make such request, (2) lack of capacity of a highway, bridge or ferry, (3) a defect or vice in the property, or (4) riots or strikes.

Bonded Carrier – A carrier licensed by US Customs to carry Customs-controlled merchandise between Customs points.

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

Breakbulk Terminal – Consolidation and distribution center. A facility in the system that unloads and consolidates shipments received from both its smaller terminals and from other breakbulks. This facility may have its own city operation.

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

C

Carmack – An industry term regarding loss or damage of cargo. Carmack is governed by 49 U.S.C 14706, which states that a motor carrier must (1) issue the Bill of Lading and (2) pay the actual loss or injury to the property. However, carriers do limit their liability for release value commodities, and can limit their damages to $25.00 per pound or $100,000 per shipment.

Cartage Agent – A carrier who performs pickup or delivery in areas that the primary carrierr does not service.

Cartage agents use their own paper work while transporting the shipment.
Usually the primary carrier does not track the shipment while it is in the cartage agent's possession.
When the primary carrier gives a shipment to a cartage agent for delivery, the shipment is considered to be "delivered" in some of primary carriers’ tracking tools.

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.

Claim (Overcharge/Undercharge Claim) – Overcharge or Undercharge Claims are demands upon a transportation company for the refund of an overcharge from the erroneous application of rates, weights, and assessment of freight charges.

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. 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 freight is addressed.

D

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. Contact is maintained with the driver throughout the day via 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 (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.

E

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 exempt from federal regulation, such as agricultural and forestry products.

F

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 – Any commodity being transported.

Freight Bill – Shipping document to confirm delivery of the freight and indicate the terms of payment (prepaid or collect). Gives 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.

Freight Broker – Any person who sells transportation without actually providing it. The term usually refers to an agent for TL shipments, matching small shippers with carriers. Freight brokers often do not accept any responsibility for their shipments. (Also see Freight Forwarder and Shipper's Agent.)

Freight Forwarder – A freight forwarder combines less-than-truckload (LTL) or less-than-carload (LCL) shipments into truckload or carload lots. Freight forwarders are designated as common carriers. They also issue bills of lading and accept responsibility for cargo. The term may also refer to the company that fills railroad trains with trailers. (Also see Freight Forwarder and Shipper's Agent.)

G

Gross Vehicle Weight (GVW) – The combined weight of the vehicle (tractor and trailers) and its cargo.

H

Hazardous Material – Hazardous materials are defined by the US 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.

I

In Bond – Shipments move under bond from point of entry to an interior US 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).

J

Jifflox (also called Dolly) – Converter that provides an extra axle and fifth wheel and is used to connect multiple trailers.

K

L

Less-Than-Truckload (LTL) – Freight, typically less than 10,000 pounds, from several shippers loaded onto one trailer.

Linehaul – Movement of freight between cities or between facilities, especially origin terminal and destination terminal (excluding pickup and delivery service).

M

Minimum Charge – The lowest charge for which a shipment will be handled after discount and/or adjustment.

Multimodal Transportation (also called Intermodal) – Freight movement involving more than one mode of transportation (ground, air, rail, ocean).

N

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.

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.

O

Order Notify (also called Negotiable Bill of Lading) – A shipment requiring the consignee to surrender the original endorsed bill of lading at the time of delivery. This is a method for the shipper to use to guarantee payment for goods shipped. More commonly used with truckload shipments.

Origin – Location at which the shipment first enters the 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 more info is received while the driver is out.

Overcharge Claims – The payor of the freight charges files an overcharge claim to dispute a discrepancy in charges that can stem from overpayment, weight or description corrections, etc.

P

Payment Terms – Generally, the shipper is responsible for payment of prepaid shipments and the consignee is responsible on collect shipments unless a third party is indicated as payor on the shipping papers.

PRO – An acronym for "progressive rotating order"; it is a ten-digit number assigned to each shipment and serves as a tracking number and a YRC invoice number.

Pickup & Delivery (P&D) – Local movement of freight between the shipper (or pickup point) and the origin terminal or between the destination terminal and the consignee (or delivery point).

Q

R

Revenue – Freight charges received by carrier for transportation of freight.

S

Service Center – A facility.

Shipper's Agent – A Shipper's Agent is not a carrier, freight forwarder, or broker. Shipper's agents generally arrange for the transportation of truckload or container load shipments. Shipper's agents commonly provide services related to warehousing or loading and unloading. (See also "Freight Forwarder" and "Broker")

Shipping Documents – Papers accompanying a shipment as it moves through the system, including bills of lading (PDF), packing slips (PDF), customs paperwork, manifests and shipment bills.

Shortage – The number of units received is less than quantity shown on shipping documents. The outstanding shipment may be delivered later.

T

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.

Third-Party – Third-party other than the shipper or consignee that is ultimately responsible for paying the shipment charges.

Truckload (TL) – Large-volume shipment from a single customer that weighs over 10,000 pounds or takes up the trailer space so no other shipment can be loaded.

Truck Tonnage – The weight (in tons) of shipment transported by truck.

U

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

V

W

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.