Freight shipping has a language all its own. Whether you're arranging your first LTL shipment or managing complex supply chains, knowing the terminology helps you communicate clearly with carriers, avoid costly mistakes, and make smarter shipping decisions.
This freight terms glossary and logistics glossary covers 75+ essential shipping terms, freight definitions, and industry terminology, organized alphabetically for quick reference. Bookmark this page and come back whenever you encounter unfamiliar jargon in your shipping operations.
Jump to a section: A | B | C | D | E | F | G | H | I | L | M | N | O | P | R | S | T | W | Z
A
Accessorial Charges
Additional fees beyond the base freight rate for extra services or special circumstances. Common accessorials include detention, liftgate service, inside delivery, residential delivery, and redelivery fees. These charges aren't included in standard quotes and are billed separately. Understanding which accessorials apply to your shipments helps you budget accurately and avoid surprise charges.
Related: Inside Delivery, Liftgate, Detention
Appointment Delivery
A delivery scheduled for a specific date and time window, rather than whenever the carrier arrives in the area. Appointment deliveries typically incur additional fees but provide predictability for receiving operations. Many retail and distribution centers require appointments to manage dock capacity.
AWB (Air Waybill)
The bill of lading used for air freight shipments. Unlike ocean bills of lading, air waybills are always non-negotiable and cannot be used as documents of title. The AWB serves as a receipt of goods and contract of carriage between shipper and airline.
B
Backhaul
A return trip that generates revenue rather than running empty. When a truck delivers a load to a destination, a backhaul is a shipment picked up for the return journey. Backhaul freight is often discounted because the carrier needs to return regardless—savvy shippers can save money by positioning loads on backhaul lanes.
Bill of Lading (BOL)
The most important document in freight shipping. A bill of lading serves three functions: receipt of goods (proving the carrier received your freight), contract of carriage (establishing terms of transport), and in some cases, document of title (proving ownership). Every freight shipment requires a BOL. For a complete explanation, see our What is a Bill of Lading guide.
Blanket Rate
A single freight rate that applies across multiple destinations within a geographic zone, rather than pricing each destination individually. Blanket rates simplify pricing for shippers with multiple delivery points in a region.
Blind Shipment
A shipment where either the shipper's identity is hidden from the consignee, or the consignee's identity is hidden from the shipper. Blind shipments are common when intermediaries (like distributors or resellers) don't want their suppliers and customers to connect directly.
Bonded Warehouse
A secure storage facility authorized by customs to hold imported goods before duties and taxes are paid. Goods can remain in a bonded warehouse for extended periods, allowing importers to defer payment until the merchandise is needed.
Breakbulk Cargo
Cargo that isn't containerized—individual units loaded directly into a ship's hold or onto a truck. Examples include lumber, steel, machinery, and project cargo. Breakbulk shipping is more labor-intensive than containerized shipping but necessary for oversized or irregularly shaped freight.
Broker (Freight Broker)
An intermediary who connects shippers with carriers but doesn't own trucks or physically transport goods. Freight brokers are licensed by the FMCSA and earn revenue by charging a margin between what shippers pay and what carriers receive. Brokers can provide access to capacity and competitive rates, especially for occasional shippers.
C
Carrier
Any company that transports freight. Carriers include trucking companies, railroads, airlines, and steamship lines. Common carrier refers to transportation providers available to the general public with published rates. Contract carriers operate under specific agreements with individual shippers.
Cartage
Short-distance freight movement within a metropolitan area or between nearby facilities. Cartage is typically handled by local trucking companies specializing in urban delivery and pickup operations.
Chassis
A wheeled frame designed to support a shipping container for road transport. When containers arrive at ports or rail yards, they're loaded onto chassis for delivery by truck. Chassis can be owned by steamship lines, trucking companies, or chassis leasing pools.
Class (Freight Class)
A standardized classification system (Class 50 through Class 500) that categorizes commodities based on density, stowability, handling characteristics, and liability. Freight class directly affects LTL shipping rates—higher classes cost more. The National Motor Freight Traffic Association (NMFTA) maintains the freight class system. Use our freight class calculator to determine your shipment's class.
Clean Bill of Lading
A bill of lading without any notations about damage, shortage, or packaging defects. A clean BOL indicates the carrier received goods in apparent good order. Banks and buyers prefer clean bills of lading because they indicate the shipment started in good condition.
COD (Collect on Delivery)
A payment arrangement where the carrier collects payment from the consignee upon delivery. COD shipments require additional carrier handling and typically incur fees. Shippers use COD when they don't extend credit to buyers or when dealing with new customers.
Commodity
The type of goods being shipped, described by their nature and characteristics. Accurate commodity descriptions are essential for proper freight classification, insurance, and regulatory compliance.
Consignee
The party receiving a freight shipment—typically the buyer, their warehouse, or a designated delivery location. The consignee is named on the bill of lading and must be available (or have a representative available) to receive goods.
Consolidation
Combining multiple smaller shipments into a single larger load to reduce per-unit shipping costs. LTL carriers consolidate freight from many shippers onto shared trailers. Freight forwarders consolidate international shipments into shared containers.
Container
A standardized metal box used to transport freight by ship, rail, and truck. Standard sizes include 20-foot and 40-foot for international shipping, and 53-foot for domestic U.S. trucking. Containers protect freight from weather and theft while enabling efficient intermodal transfers.
Contract Carrier
A carrier that operates under individual agreements with specific shippers, rather than offering services to the general public. Contract carrier agreements often include negotiated rates, dedicated capacity, and customized service terms.
Cross-Docking
A logistics technique where incoming freight is transferred directly from receiving to shipping with minimal or no storage. Cross-docking reduces warehousing costs and speeds delivery but requires precise coordination of inbound and outbound schedules.
Cubic Capacity
The total volume of a trailer, container, or warehouse space, measured in cubic feet. Some shipments "cube out" (fill the available space) before "weighing out" (reaching weight limits). Understanding cubic capacity helps optimize trailer utilization.
Customs Broker
A licensed specialist who handles import/export documentation, tariff classification, and customs clearance. Customs brokers are licensed by U.S. Customs and Border Protection and represent importers/exporters in dealings with customs authorities.
D
Deadhead
A truck or trailer traveling empty—either repositioning for the next load or returning home after delivery. Deadhead miles generate no revenue, so carriers try to minimize them by finding backhaul freight.
Declared Value
The value a shipper assigns to freight for liability purposes. If freight is lost or damaged, carrier liability is typically limited to declared value or a maximum per-pound rate, whichever is less. Shippers can purchase excess valuation coverage for high-value freight.
Delivery Receipt (DR)
Documentation signed by the consignee acknowledging receipt of a shipment. Delivery receipts note the date, time, and condition of goods upon arrival. Any damage or shortage should be noted on the DR before signing—this documentation supports freight claims.
Demurrage
Charges assessed when shipping containers or rail cars aren't unloaded within the allowed free time at ports or terminals. Demurrage costs add up quickly—sometimes hundreds of dollars per container per day—so efficient receiving operations are essential for international shippers.
Density
The relationship between a shipment's weight and volume, calculated as pounds per cubic foot. Density is a key factor in freight classification and pricing. Higher-density freight typically qualifies for lower freight classes and rates.
Formula: Density = Weight (lbs) ÷ Volume (cubic feet)
Detention
Charges assessed when a driver and truck wait beyond the allowed free time (typically 2 hours) for loading or unloading. Detention compensates carriers for lost productivity while their equipment sits idle. Efficient dock operations and appointments help avoid detention fees.
Dimensional Weight (DIM Weight)
A pricing method that accounts for package size, not just actual weight. Dimensional weight equals length × width × height divided by a DIM factor. Carriers charge whichever is greater: actual weight or dimensional weight. DIM pricing affects lightweight, bulky shipments most.
Door-to-Door
A shipping service that includes pickup at the shipper's location and delivery to the consignee's location, as opposed to terminal-to-terminal service. Most LTL and truckload shipments are door-to-door by default.
Drayage
Short-distance freight movement, typically between ports, rail yards, and nearby warehouses or distribution centers. Drayage connects different modes of transportation—moving containers from ship to truck or from rail to warehouse.
Drop Trailer
A service where the carrier leaves an empty trailer at a shipper's facility for loading, then returns later to pick it up. Drop trailer programs provide flexibility for shippers with variable loading schedules but may incur trailer detention charges if equipment isn't returned promptly.
Dry Van
The most common trailer type—an enclosed, non-temperature-controlled box trailer. Dry vans protect freight from weather and are suitable for most manufactured goods, packaged products, and non-perishable commodities.
Dunnage
Materials used to protect and secure freight during transport. Dunnage includes blocking, bracing, airbags, straps, and padding that prevent cargo from shifting or sustaining damage in transit.
E
EDI (Electronic Data Interchange)
Standardized electronic communication between business systems. In freight, common EDI transactions include the 204 (load tender), 214 (shipment status), and 856 (advance ship notice). EDI enables automated order processing, tracking, and billing.
ETA (Estimated Time of Arrival)
The projected date and time a shipment will reach its destination. ETAs are estimates—actual delivery depends on routing, traffic, weather, and operational factors. Carriers update ETAs as shipments progress through their networks.
Exclusive Use
A service where a shipper pays for sole use of an entire trailer, even if their freight doesn't fill it. Exclusive use eliminates multiple stops, reduces handling, and speeds transit—but costs more than standard LTL service.
Expedited Shipping
Faster-than-standard shipping services, often involving dedicated vehicles, team drivers, or air freight. Expedited shipping costs more but provides guaranteed or accelerated transit times for time-critical shipments.
F
FAK (Freight All Kinds)
A pricing approach where all commodities in a shipment are rated at a single freight class, regardless of their actual individual classifications. FAK rates simplify pricing for shippers with mixed-commodity pallets.
FMCSA (Federal Motor Carrier Safety Administration)
The U.S. government agency that regulates interstate trucking. FMCSA sets safety standards, licenses carriers and brokers, and maintains the licensing database. Legitimate carriers and brokers must have active FMCSA authority.
FOB (Free On Board)
An Incoterm that defines when ownership and risk transfer from seller to buyer. FOB Origin means the buyer assumes responsibility when goods leave the shipper's dock. FOB Destination means the seller retains responsibility until goods arrive at the buyer's location.
Forwarder (Freight Forwarder)
A company that arranges freight transportation on behalf of shippers, often consolidating shipments and coordinating multi-modal transport. In international shipping, freight forwarders handle documentation, customs, and logistics coordination. Forwarders may issue their own house bills of lading.
Freight Bill
The carrier's invoice for transportation services. Freight bills detail charges, weights, accessorials, and payment terms. In LTL, freight bills may differ from original quotes if weights or classes are corrected.
FTL (Full Truckload)
A shipment that fills an entire trailer or is large enough that booking a dedicated trailer makes economic sense—typically 10,000+ pounds or 10+ pallets. FTL shipments travel directly from origin to destination without terminal handling or consolidation with other freight.
G
Gross Weight
The total weight of a shipment including all packaging, pallets, and dunnage. Gross weight determines freight charges and must be accurate on bills of lading to avoid billing corrections.
H
Handling Unit
A single unit as tendered to the carrier—typically a pallet, crate, or skid. Handling unit counts appear on bills of lading and affect pricing, especially in LTL where carriers charge based on how many individual pieces they must handle.
Hazmat (Hazardous Materials)
Substances that pose risks to health, safety, property, or the environment during transport. Hazmat shipments require special packaging, labeling, documentation, and placarding. Carriers must be hazmat-certified to transport dangerous goods.
Hub-and-Spoke
The network model used by LTL carriers, where local terminals (spokes) collect and deliver freight while central distribution centers (hubs) sort and route shipments between regions. Freight moves from origin terminal to hub, possibly through multiple hubs, then to destination terminal for final delivery.
I
Inbound Freight
Shipments arriving at a facility, as opposed to outbound shipments leaving. Inbound freight programs let receivers control carrier selection and routing to leverage volume discounts and preferred carriers.
Incoterms (International Commercial Terms)
Standardized trade terms published by the International Chamber of Commerce that define buyer and seller responsibilities in international transactions. Common Incoterms include FOB, CIF, DDP, and EXW. Each term specifies who pays for transport, insurance, and customs, and where risk transfers.
Inside Delivery
A service where the carrier brings freight beyond the loading dock into the building interior. Inside delivery typically requires advance arrangement and incurs additional fees. Some carriers won't provide inside delivery for heavy or bulky items.
Interline
A shipment that moves on two or more carriers to reach its destination. Carriers have interline agreements allowing them to hand off freight to partner carriers that serve territories they don't cover directly. Interline shipments may have longer transit times due to transfers.
Intermodal
Transportation using multiple modes (truck, rail, ship) under a single bill of lading, with freight remaining in the same container throughout. Intermodal shipping, particularly truck-rail combinations, offers cost savings for long-distance freight when transit time allows.
L
Lane
A specific origin-destination pair in freight transportation. Carriers price and plan capacity by lane, and shippers may have negotiated rates for their highest-volume lanes.
Liftgate
A hydraulic platform attached to the back of a truck that raises and lowers freight between ground level and truck bed height. Liftgate service is required when delivery locations lack loading docks. Liftgate fees are common accessorials.
Limited Access
A delivery location that's difficult for trucks to reach or navigate—including residential areas, construction sites, farms, churches, and facilities without proper dock equipment. Limited access locations typically incur accessorial fees.
Linehaul
The primary transportation between origin and destination terminals, as opposed to local pickup and delivery operations. Linehaul costs are the main component of freight rates and depend on distance and weight.
LTL (Less-Than-Truckload)
A shipping method for freight that doesn't require a full trailer—typically 150 to 10,000 pounds or 1 to 6 pallets. LTL carriers consolidate shipments from multiple shippers onto shared trailers, with each shipper paying only for their portion of the space. For a complete explanation, see our LTL shipping guide.
M
Manifest
A document listing all shipments on a particular truck, vessel, or aircraft. Manifests include consignee information, piece counts, and handling instructions for each shipment aboard.
Minimum Charge
The lowest amount a carrier will charge for a shipment, regardless of weight or distance. Even a small LTL shipment will incur at least the minimum charge—for very light freight, parcel shipping may be more economical.
Mixed Commodity
A shipment containing multiple types of goods with different freight classes. Mixed commodity pricing can use individual class ratings, weighted averages, or FAK (freight all kinds) rates depending on carrier agreements.
N
NMFC (National Motor Freight Classification)
The classification system maintained by the National Motor Freight Traffic Association that assigns freight classes to commodities. NMFC codes specify packaging requirements and determine the freight class used for LTL pricing.
Non-Negotiable Bill of Lading
A bill of lading that names a specific consignee and cannot be transferred to third parties. Most domestic freight moves on non-negotiable (also called "straight") bills of lading. Compare with negotiable bills of lading used in international trade.
Notify Party
A party listed on the bill of lading who should be contacted when a shipment arrives, even though they aren't the consignee. Notify parties are common in import shipments where a customs broker or logistics provider needs to be alerted upon arrival.
O
O/D (Origin and Destination)
The starting point and ending point of a shipment—the fundamental information needed for any freight quote.
OS&D (Over, Short, and Damaged)
A report documenting inventory discrepancies or damage discovered when receiving freight. OS&D reports are essential for filing freight claims and must be completed promptly—ideally before signing the delivery receipt.
Outbound Freight
Shipments leaving a facility, as opposed to inbound shipments arriving. Outbound freight programs focus on carrier selection, routing, and cost optimization for goods being shipped to customers or other locations.
Overweight
A shipment exceeding legal weight limits or carrier-specified maximums. Overweight shipments may be refused, require permits, or incur additional fees. Federal law limits gross vehicle weight to 80,000 pounds on interstate highways.
P
Pallet
A flat platform, typically wood, used to stack and transport freight. Standard pallet dimensions in the U.S. are 48" × 40" (GMA pallet). Palletized freight is easier to handle with forklifts and fits efficiently in trailers.
Partial Truckload
A shipment too large for LTL (typically over 6 pallets or 5,000 pounds) but not large enough to justify a full truckload. Partial services combine aspects of both modes, potentially offering better rates than either option alone.
Per Diem
Daily charges assessed for use of carrier equipment beyond allowed free time. Per diem applies to trailers, containers, and chassis and encourages shippers and receivers to process freight promptly.
Pickup and Delivery (P&D)
The local operations that collect freight from shippers and deliver it to consignees, as opposed to linehaul transportation between terminals. P&D drivers operate in local areas, making multiple stops each day.
Pier
A structure extending into water where vessels dock to load and unload cargo. Pier charges or wharfage may apply to freight passing through port facilities.
POD (Proof of Delivery)
Documentation confirming a shipment was delivered. POD typically includes the delivery receipt signed by the consignee, noting date, time, and condition of freight. Electronic POD systems capture signatures and photos digitally.
Prepaid
A freight payment term where the shipper pays transportation charges before or at the time of shipment. The opposite of "collect," where the consignee pays upon delivery.
PRO Number (Progressive Number)
The unique identifier a carrier assigns to each shipment for tracking and reference. PRO numbers appear on bills of lading, freight bills, and tracking systems. Each carrier has their own PRO number format.
R
Reefer
A temperature-controlled trailer or container with refrigeration equipment. Reefers transport perishable goods including food, pharmaceuticals, and chemicals that require specific temperature ranges throughout transit.
Reweigh
A carrier's verification of shipment weight. If reweigh weight differs significantly from the shipper's declared weight, the carrier will issue a billing correction. Accurate weights on original documents avoid reweigh fees and billing disputes.
RFP (Request for Proposal)
A formal solicitation sent to carriers requesting rates and service proposals for a shipper's freight. Large shippers conduct RFPs periodically to negotiate competitive pricing across their transportation network.
S
SCAC (Standard Carrier Alpha Code)
A unique two-to-four-letter code identifying each transportation company. SCACs appear on bills of lading, freight bills, and EDI transactions. The National Motor Freight Traffic Association assigns and maintains SCAC codes.
Seal
A numbered, tamper-evident device applied to trailer doors to secure freight and indicate whether the trailer has been opened. Seal numbers are recorded on bills of lading, and receivers verify seals are intact upon delivery.
Shipper
The party sending freight—typically the manufacturer, distributor, or warehouse fulfilling an order. The shipper prepares goods for transport, creates bills of lading, and tenders freight to carriers.
Skid
A platform without bottom deck boards, as opposed to a pallet which has both top and bottom deck boards. Skids can be dragged but are harder to lift with pallet jacks than full pallets.
Spot Rate
A one-time freight rate for a specific shipment, as opposed to contract rates established through longer-term agreements. Spot rates fluctuate with market conditions—capacity constraints drive rates up while excess capacity pushes them down.
Staging
Positioning freight in a designated area prior to loading or after unloading. Staging areas allow efficient organization of shipments before they're processed.
Straight Truck
A truck where the cab and cargo area are on the same chassis, as opposed to a tractor-trailer combination. Straight trucks are smaller and more maneuverable, often used for local delivery and pickup operations.
Surcharge
An additional fee added to base freight rates, typically reflecting variable costs like fuel or market conditions. Fuel surcharges are the most common, calculated as a percentage based on current diesel prices.
T
Tare Weight
The weight of an empty container, trailer, or packaging—without contents. Tare weight is subtracted from gross weight to determine net weight (the weight of goods alone).
Tariff
A published schedule of freight rates, rules, and charges. Historically, carriers filed tariffs with regulatory agencies. Today, tariffs often refer to carrier rate schedules and terms of service.
Terminal
A facility where carriers sort, consolidate, and transfer freight. In LTL, terminals serve as collection points for local freight and distribution points for inbound shipments. Larger terminals act as regional hubs.
Third-Party Logistics (3PL)
A company that provides outsourced logistics services including transportation management, warehousing, and fulfillment. 3PLs allow shippers to access expertise and capacity without building in-house logistics capabilities.
Through Bill of Lading
A single bill of lading covering freight that travels via multiple carriers or modes from origin to destination. Through bills simplify documentation for complex routings.
TL (Truckload)
See FTL (Full Truckload).
Tracking
The process of monitoring shipment location and status as freight moves through the transportation network. Carriers provide tracking via websites, mobile apps, and EDI. Real-time visibility helps shippers and receivers plan receiving operations.
Transit Time
The number of days between pickup and delivery. Transit time varies by origin-destination pair, carrier, and service level. LTL transit times typically range from 1 to 5 business days depending on distance.
W
Warehouse
A facility for storing goods before distribution or shipment. Warehouses may be shipper-owned, carrier-operated, or run by third-party logistics providers. Warehouse operations include receiving, storage, picking, packing, and shipping.
Waybill
A document accompanying freight that details the shipment, consignee, and routing. In rail and air transport, waybills serve similar functions to bills of lading in trucking.
Weight Break
A pricing threshold where the per-pound rate decreases. Shipping slightly more weight can sometimes reduce total cost if the shipment crosses a weight break—the lower per-pound rate offsets the additional weight.
White Glove Delivery
Premium delivery service that goes beyond standard dock-to-dock transport. White glove delivery typically includes inside placement, unpacking, assembly, and debris removal. For a complete explanation, see our white glove delivery guide.
Z
Zone
A geographic area used for pricing and transit time calculations. Carriers divide service territories into zones, with rates varying based on the origin and destination zones involved.
Zone Skip
A shipping strategy where freight is consolidated and transported to a regional distribution point before breaking down for final delivery, effectively "skipping" intermediate zones. Zone skipping can reduce per-package costs for high-volume shippers.
Keep Learning
Understanding freight terminology is the first step toward shipping smarter. For deeper dives into key topics, explore these resources:
- What is a Bill of Lading? — Complete guide to the most important shipping document
- LTL Shipping Explained — Everything you need to know about less-than-truckload freight
- Freight Class Calculator — Determine your shipment's NMFC classification
- White Glove Delivery Guide — When and why to use premium delivery services
Need a shipping quote? Our team helps businesses of all sizes ship freight across North America. Get a quote and let us show you how Pinnacle makes shipping simple.