TERMINOLOGY

Accessorial Charges:  charges assessed by a carrier for services provided in addition to basic transportation, such as extra pick ups (usually $25 - $40), loading and unloading (usually $50-$150).

Air Ride:  a trailers built to reduce road shock and designed to carry fragile items; the suspension system supports the load on air-filled rubber bags rather than steel springs.

Backhaul:   the return trip of a vehicle from the destination back to the origin (less pay usually).  a freight movement in a direction (or lane) of secondary importance or light demand. 

Bill Of Lading:   a document that serves as the contract of carriage between the shipper and the carrier (paper given to driver at the time of loading to prove what was put on truck).

Bobtail:   a tractor operating without a trailer (cab only).

Bracing:  a securing item inside a vehicle to prevent damage.

Break-Bulk:  the separation of a load into smaller shipments for delivery to ultimate consignees.

Chute:  a fabric that runs the length of a refer trailer on the ceiling to evenly spread the cool air.

Claim:   a charge made against a carrier for loss, damage, or overcharge.

Class Rate:   a rate constructed from a classification and a uniform distance system..

Commercial Zone:   the area surrounding a city or town to which rates quoted for the city or town also apply.

Common Carrier:   any person or agency publicly engaged in the business of transporting passengers of freight, common carriers are subject to two stringent obligations: compulsory service and liability for loss or damage goods (Carrier Company).

Consignee:   the receiver of a freight shipment, usually the buyer (where freight goes to).

Consignor:   the sender of a freight shipment, usually the seller.

Consolidation:   the collection of smaller shipments to form a larger quantity to get lower transportation rates.

Container:   (shipping containers) standard size rectangular box used to transport freight by ship, rail or motor carrier.

Contract Carrier:   a company that transport freight under contract with one shipper or a limited number of shippers.

Cost Per Hundred Weight:    (CWT)  an amount charged per hundred weight of freight.

Covered Wagon:  flatbed trailer with a side kit.  Which is side boards and usually require a tarp over the top.

Cross Dock:  transportation terminal in which received items transferred directly from inbound to the outbound shipping dock, with storage only occurring temporarily during unloading and loading.  No long-tern storage is provided.  Usually used only for vehicle transfer.  Often owned and operated by large shippers.  Examples: Home Depot, Food Services.

Density:   a physical characteristic of a commodity, which is important in rate making since density affects vehicle utilization:  determining density requires measuring the mass per unit , per volume, or pounds per foot.

Deadhead:  a portion of a transportation trip in which no freight is convyed;  an empty move. 

Detention:   the charge assessed by the carrier when the ship or receiver holds a truck or trailer beyond the time allowed for loading or unloading ( you can request monies from shipper for driver sitting to long or over night).

Diversion / Re-Consignment:  diversion is a tactic used by shippers to change the destination (consignee) of freight while the goods are in transit.  The shipper will notify the carrier prior to the arrival of freight at the destination of the new consignee, and the carrier will at that time re-adjust freight charges.

Doubles:   (twine, twin trailers)  a trailer and two semitrailers that are connected.

Drayage:  a motor carrier that operates locally, providing a pickup and delivery service.

Driver Assist:  when a driver is asked to assist in the loading or unloading process sometimes treated as an extra charge or a per-hour or flat rate (varies).

Driver’s Log Sheet:  a log of miles traveled, hours of driving, off-time, and rest period that drivers are required to keep.

Dry Van:  a  non-refrigerated, non-insulted semitrailer handling general commodities of freight that cannot withstand outside temperatures without suffering damage.

Empty Backhaul:  when a truck returns empty from the destination to the pointed origin and therefore does not generate return-trip revenues.

Exclusive Use:   a request made by shippers that means their freight is the only freight on the truck.

Exempt Carrier:   a for-hire carrier that is exempt from economic regulations.

Expediting:  determining where a shipment is during transit and attempting to speed up its delivery.  Many big companies have expeditors on staff who do this full time.

Flats:   (flatbeds)  a flat, solidly-built trailer, designed to handle heavier and bulkier loads, such as metals, equipment and machinery, than a dry van.

FOB (free-on-board):  point at which ownership of freight changes hands from shipper to consignee.  FOB ORIGIN - indicates that consignee owns the goods in transit;  FOB DESTINATION indicates that shipper owns goods in transit.  Owner of goods in transit is liable for loss and damage to freight, and thus should provide insurance.

Freight FOB term-of sale:  indicates (1) who arranges for transport and carrier, (2) who pays for transport, (3) where/when does title (ownership) of goods transfer from seller to buyer (FOB point).  Freight charges:  collect, prepaid, prepaid and charge back.  Collect:  buyer pays the freight charges.  Prepaid:  seller pays.  Prepaid and charged back: seller prepays (bears). bill buyer for the charges. 

EXAMPLE: 

    1. FOB ORIGIN: Freight collect: consignee pays freight charges and owns goods in transit.

    2. FOB DESTINATION:  Freight prepaid: shipper pays freight charges and owns goods in transit.

    3.  FOB DESTINATION: Freight prepaid and charges back:  shipper owns goods in transit, pays for freight but bills consignee for the charges.

For - Hire Carrier:   a company that provides truck transportation of cargo belonging to others and is paid for doing so.

Freight Bill:   the carrier’s invoice for transportation charges for a particular shipment.

Freight Forwarder:  an agency that receives from a shipper and then arranges for transportation with one or more carriers for transport to the consignee.  Often used for international shipping.  Will usually consolidate freight from many shippers to obtain low, large-volume transportation rates from carriers (through a contact).  Often owns some pickup and delivery equipment; use to transport freight to/from consolidation facilities.  Also provides other shipping services: packaging, temporary freight storage, customs clearing.

Freight Broker:  the middle person who connects shippers and carriers.

Freight Payable:  technically, a freight bill that needs to be paid; in common use, it also refers to the special payables department large shippers may have that is dedicated to paying freight bills.

Freight Pools:  a collection of trailers loads waiting for assignment to a driver and tractor.

Front Haul:  the initial movement of the vehicle from the origin to the destination.

Full Truckload :  (FTL) a shipment occupying the entire trailer, typically with a weight of 30,000 pounds or more.

Gross Weight:  the total weight of the goods being shipped, including packing and packaging materials.

Hazmat:  Hazardous materials, as classified by the U.S. Environmental Protection Agency (EPA).

Incentive Rate:   a rate designed to encourage shippers to ship heavier volumes per shipment.

Interline:   two or more motor carriers working together to haul a shipment.

Intermodal:   combining two or more modes of transportation, such as truck and rail, truck and air or rail and ocean.

Interstate Commerce Commission (ICC):   a federal regulatory agency that was abolished in 1955.

Joint Rate:  a rate over a route that involves two or more carriers transporting the shipment.

Long Haul:  sometimes referred to a linehaul: terminal to terminal freight movements in transportation.  Such long distance moves are distinguished from local freight movements.

Loss and Damage:  loss and damage of freight shipments while in transit or in a carrier-operated warehouse.  Terms for the handling of claims are usually stipulated in the freight bill.  Shippers and/or Consignees usually take out insurance against L&D with premiums a function of the value of the value of goods shipped, and the likelihood of L&D.

Layover:  a delay preventing a driver from unloading as scheduled at destination.  Some carriers charge an additional fee for this.  Example:  If set appointment and driver sits over an hour a carrier will request sometimes that you call shipper and ask for detention time for sitting passed appointed time.  If not appointment usually if a driver sits over 3-4 hours will request more funds too.

LTL - Less Than Truckload:  a shipment occupying less that the entire trailer, typically with a weight of less than 30,000 pounds.  It can be combined with other shipments to make up a dull truckload.

MC  -  Motor Carrier:  a company that provides truck transportation.

Multiple Drops:   a delivery requiring more than one stop.  Other than original pick and and original drop.

Net Weight:   the weight of the goods being shipped, excluding the packaging and packing materials.

OS&D:   an acronym for:  overage, shortage or damaged.

Overage:   when the piece count of a shipment is more than what is indicated on the bill of lading.

Over-The-Road:   a motor carrier operation that reflects long distance.  Intercity moves, the opposite of local operations.

Owner-Operator:  a trucker who owns and operates his own truck (s).

P&D:  pickup and delivery

Pallets:  a movable platform, usually made of wood, for the storage or transportation of goods.  Weighs about 70 pounds.  A small platform 40X48 inches usually. 

Pallet Exchange:   the process of replacing a shipper’s pallets. Leaving an equitable number of empty pallets when picking up goods loaded on pallets, then picking up a comparable number of empty pallets from the consignee when the freight is delivered.

Payload:   the weight of the cargo being hauled.

Peddle Run:  a truck route with frequent delivery stops.

Private Carrier:  a carrier that provides transportation service of its own cargo to the firm that owns or leases the vehicle and does not charge a fee.  Examples: UPS, FEDEX.

Postponement:  a deliberate delay in committing inventory to shipment by a shipper. 

Process Agents:   a representative upon whom court papers may be served in any proceeding brought against a motor carrier, broker, or freight forwarder freight brokers are required to list with the FHWA the names of process agents in agents in each state in which they have an office and in which they write contracts.

( P.O.) Purchase Order Number:  a numbers buyers assign to their purchase orders that shippers will usually include on their documents to consignee can easily identify the load when it is delivered.

Ragtop:  a box-like trailer open at the top, on which a large canvas is spread to protect cargo from the elements;  primarily used for large, bulky bales or boxes, loose material, and sometimes for nursery stock shipments.

Reasonable Rate:  a rare high enough to cover the carrier’s cost but not so high that it enables the carrier to realize monopolistic profits.

Reefer:  a refrigerated, insulted semitrailer. 

Round Trip:  when a driver moves a load to a specific point, reloads at the point, and returns to the original point of pickup.

Semitrailer:  a truck trailer supported at the rear by its own wheels and at the front by a fifth wheel mounted to a tractor or dolly.

Shippers Associations:  not-for-profit association of shippers using collective bargaining and freight consolidation to obtain lower, high-volume transportation rates; similar to freight forwarding with out profit.

Shipper Order Number  (PU#):  a number assigned to a load or shipment: by the shipper for tracking purposes; this number should be referred to on invoices and any other documents concerning the shipment.

Shipping Weight:  the gross weight of a shipment, including products, packaging, and packing materials.

Shortage:  when the piece count of a shipment is less than indicated on the bill of lading.

Short-Haul Discrimination:  charging more for a shorter haul than a longer haul over the same route, in the same direction, and for the same commodity, this is an accept industry practice since certain fixed costs apply no matter how long the trip is.

Skid:  a pallet.

Split Pickup:  a pickup requiring more than one stop.

Tanker:  a trailer shaped like a huge tank designed to handle liquid and loose, fine bulk materials.

Tariff:  a publication that contains a carrier’s rates, accessorial charges, and rules.

Tend To Load:  when the drivers attend to the loading and unloading of their trailers.

Truckload Carrier:  a trucking company that dedicates trailers to a single shipper’s cargo, as opposed to an LTL (less than truckload) carrier, which transports the consolidated cargo of several shippers and makes multiple deliveries. 

TOFC (Trailer on Flatcar):  a method of moving cargo that involves transporting semitrailers on railroad flatcars.

Ton Miles Taxes:   taxes based on the weight (tonnage) of the shipment and the number of miles it travels (tax per ton, per miles).

Tracing:  determining where a shipment is during the course of the move.

Tractor Trailer:  a tractor and semitrailer combination.

Tractor:  a truck designed primarily to pull a semitrailer by means of a fifth wheel mounted over the rear axle(s); sometimes called a truck tractor or highway tractor to differentiate it from a farm tractor.

Traffic Management:  the management of the various activities associated with buying and controlling transportation services for a shipper or consignee or both.

Transit Time:  the total time that elapses from pickup to delivery of a shipment.

Transportation Broker:  an agency that obtains negotiated large-volume transportation rates from carriers, and resells this capacity to shippers.  Unlike freight forwarders, will not handle freight and owns no pickup/delivery equipment or storage facilities.

Trip Leasing:  leasing a company’s vehicle to another transportation provider for a single trip.

Truckload (TL):  the quantity of freight required to fill a trailer, usually over 10,000 pounds.

TL Carrier:  a trucking company that hauls a full trailer.

Weight Per Case:  the total or gross weight per case, carton or box.