A transportation glossary is a collection of terms, abbreviations, and phrases used to describe the movement of goods from one location to another. It serves as a fundamental infrastructure for operational efficiency, legal clarity, and financial integrity within the complex logistics ecosystem. Mastering these terms is essential for businesses to avoid costly errors, such as paying for unused truck space, and to resolve delivery disputes faster.
For clarity, these terms are organized by category to help you understand where they fit in the shipping lifecycle.
1. Shipment Modes & Services
Key terms describing how freight is physically moved.
- Full Truck Load (FTL): A shipping mode where a single shipment occupies an entire truck trailer. FTL is faster and safer than LTL because the truck goes directly from pickup to delivery without stopping at terminals to sort freight. It is typically used for large shipments (often over 10 pallets or 15,000 lbs) or high-value goods requiring exclusive use of the trailer.
- Less Than Truckload (LTL): A shipping mode for freight that does not require a full trailer. Multiple shipments from different customers are consolidated onto one truck. These trucks stop at terminals to transfer freight, making LTL slower but more cost-effective for smaller loads (typically 1–6 pallets).
- Intermodal: The transportation of freight in an intermodal container or vehicle using multiple modes of transportation (e.g., rail, ship, and truck) without any handling of the freight itself when changing modes.
- Expedited Freight: Time-sensitive shipments that must be delivered faster than standard transit times, often using team drivers (non-stop driving) or air freight.
- Drayage: A short-distance transport of goods, often connecting ocean ports or rail terminals to a nearby warehouse or distribution center.
2. Essential Documentation
Paperwork that acts as contracts, receipts, and proof.
- POD (Proof of Delivery): A document signed by the consignee (receiver) at the time of delivery. It serves as legal evidence that the goods were delivered in good condition and on time. If there is damage, it must be noted on the POD; otherwise, it is difficult to file a freight claim later.
- BOL (Bill of Lading): The master contract between the shipper and the carrier. It outlines what is being shipped, from where, to whom, and how it is billed. It serves three roles: a receipt for goods, a contract of carriage, and a document of title.
- Freight Bill: An invoice from the carrier to the shipper for the cost of transportation. It includes details like weight, class, and accessorial charges.
- Delivery Receipt (DR): Similar to a POD, this document is signed by the receiver to confirm the delivery is complete.
3. Key Players
The people and companies involved in the transaction.
- Consignor (Shipper): The person or company sending the shipment.
- Consignee (Receiver): The person or company receiving the shipment.
- Carrier: The company that physically transports the goods (e.g., UPS, FedEx, or a trucking company like Old Dominion or Swift).
- 3PL (Third-Party Logistics): A provider that manages logistics services for a company, such as warehousing, transportation management, and fulfillment, often acting as a middleman between shippers and carriers.
- Freight Broker: An intermediary who connects shippers with carriers but does not own their own trucks or assets.
4. Rates & Charges
Terms related to pricing and extra fees.
- Accessorials: Extra fees charged by carriers for services beyond standard pickup and delivery. Common examples include:
- Liftgate: A hydraulic platform on the back of a truck used to lower freight to the ground if the receiver has no loading dock.
- Inside Delivery: A fee for the driver bringing freight inside the building rather than leaving it at the dock or curb.
- Detention: A penalty fee charged if the driver is kept waiting at a pickup or delivery location longer than the allotted free time (usually 2 hours).
- Freight Class: A standardized category (ranging from 50 to 500) defined by the NMFC (National Motor Freight Classification) used to determine LTL rates. It is based on four factors: density, stowability, handling, and liability. Lower classes (e.g., Class 50, like bricks) are cheaper to ship; higher classes (e.g., Class 500, like ping pong balls) are more expensive.
- Fuel Surcharge (FSC): An extra fee added to the freight rate to cover the fluctuating cost of diesel fuel.
5. Operational Terms
Jargon used during the movement of freight.
- Backhaul: The return trip of a commercial truck transporting cargo or freight back to or near its home base. Carriers often offer lower rates for backhauls to avoid driving empty (“deadheading”).
- Deadhead: Driving a truck with an empty trailer. This is lost revenue for a carrier, so they try to minimize it.
- Blind Shipment: A shipment where the shipper and receiver are not aware of each other’s identity. The BOL is modified to hide the supplier’s address from the customer to protect the middleman’s business relationship.
- Drop Trailer: A service where a carrier leaves a trailer at a facility to be loaded or unloaded at the shipper’s/receiver’s convenience, picking it up later.