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Logistics 101 / Glossary

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Accessorial Charges Accessorial Charges A charge for services over and above transportation charges such as: inside delivery, heading, sort and segregate, heating, storage, etc. Advanced Charge Advanced Charge Any charge other than applicable freight charges advanced by one transportation line to another, or to be collected from the consignee. Air Bill Air Bill Document for an air carrier that gives a description of the freight, weight, freight charges, shipper, consignee, and who is responsible for freight charges. This is equivalent to an LTL freight bill for an air carrier. Arrival Notice Arrival Notice A notice, furnished to the consignee, that their freight has arrived. Astray Freight Astray Freight Freight bearing marks indicating origin and destination, but separate from the waybill. Bill of Lading Bill of Lading The written transportation contract between shipper and carrier (or their agents). It identifies the freight, shipper, consignee, and terms of the agreement. All goods going to a receiver at one destination on a single shipment or in one truck should be on a single bill of lading. The Straight bill of lading provides that freight be delivered to the receiver shown on the bill. It is non-negotiable, and always printed on white paper. This type of bill is not required except when it is necessary, for example, for certain bonded goods such as liquor. The Order bill of lading is negotiable, and always printed on yellow paper. Its purpose is to enable the shipper to collect freight charges before it reaches its destination. The shipper sends an original bill of lading and a draft for the charges through the bank. The receiver pays the carrier’s agent the amount of the draft and then can receive the goods. With this method, the shipper customarily consigns the shipment to himself. The person or company to be notified at destination is specified. The shipment may be released to the receiver only upon the order of the shipper. The order bill of lading must be surrendered with the delivery of the freight. Either straight or order bills of lading may be designated as “through.” A Through bill of lading covers a shipment that will be in multiple transportation systems and has one charge for all services. More than one mode of transportation may be used, for example, sea, truck and rail. Board Board A pallet. Bonded Warehouse Bonded Warehouse A warehouse owned by persons approved by the Treasury Department. Under bond or guarantee for the strict observance of the revenue laws, they are utilized for storing goods until duties are paid or goods are otherwise properly released. Break Bulk Break Bulk Breaking down a composite load from one shipper that will go to multiple consignees. Break Bulk Point Break Bulk Point The terminal or location that break bulk has taken place. Carrier Carrier An individual, partnership or corporation engaged in the business of transporting goods or persons. Cartage (local) Cartage (local) Hauling between locations in the same town or city or continuous municipalities. Claim Claim (a) A demand made upon a carrier for payment on account of loss or damage alleged to have occurred while shipment was in their possession. (b) A demand upon a carrier for refund of an overcharge. See Overcharge. Classification Classification A factor used to assign rates to shipments. Classifications are based on density, size and value of the goods that are being shipped. A guide has been created by NMFC board that is universally accepted by all major LTL freight carriers. C.O.D. (Cash On Delivery) C.O.D. (Cash On Delivery) This is a request from the shipper for the carrier to pickup a check upon delivery that will be payment for the goods being delivered. This is will be declared on the bill of lading, and will specify what forms of payment they will accept (company check, or cashiers check). Collect Terms Collect Terms The consignee is responsible for the freight charges. Concealed Damage Concealed Damage Damage to the contents of a package, which is apparently in good condition externally. Concurrence Concurrence An agreement between two carriers, which specifies how revenue from shared shipments are to be split. It also usually specifies which accessorial charges are to be applied and points that freight will be interchanged. Connecting Carrier Connecting Carrier Any carrier that is receiving from or delivering to another carrier. Consignee Consignee The individual or business to receive the freight being shipped. Consignor Consignor Also known as shipper, it is the person or business that is originating the shipment. Container Container Anything in which articles are packed. Contract Contract A legal document between two parties. In the LTL freight world a contract specifies the rates to be used and any deviation from the tariff that will be encountered while shipping a specific customers freight. These are administered by the rating department, and can be viewed by anyone. Corrected Bill of Lading (CBL) Corrected Bill of Lading (CBL) A document issued by the shipper to amend the original bill of lading. Credit Application Credit Application A document used to collect data on a customer to determine credit worthiness. Customer Focus Groups Customer Focus Groups A panel of customers put together with the purpose of giving the company feedback about any number of service or marketing related topics. Dead Head Dead Head A shipment that is no charge from its origin to its destination Dedicated Charge Dedicated Charge The act of committing specific equipment to a customer for there use only. This can be runs or deliveries outside of the normal system. Deficit Weight Deficit Weight Weight added to a bill to put the shipment up to a weight, which will reduce the total charges. This takes advantage of the rate reduction for higher weights. Delivery Purpose Only (DPO) Delivery Purpose Only (DPO) No charge bills that represent one bill of lading that are combined with other DPOs to forma master-bill. This will take advantage of the lower rates for heavier shipments. The master bill will carry all revenue; it is also called a Revenue bill. Delivery Receipt (DR) Delivery Receipt (DR) A document used to obtain a signature from the consignee when a shipment is delivered. Upon signing one copy is given to the signor and one copy is obtained for the carriers records. This document is also known as a “Proof of Delivery.” Demurrage Demurrage The detention of a freight vehicle or container beyond a stipulated timeframe. (See detention). Density Density A measurement of a shipment’s volume. Calculated by length x width x height / 1728 and measured in pounds/cubic foot. Density Rule Density Rule If a shipment occupies 750 cubic feet or more and has a density of less than or equal to 5 cubic feet the class will be changed to 200. Detention Detention Time that a driver is forced to wait for unloading at a customers’ facility, this is charged in 1⁄4 hour increments at a rate of $65.00 per hour. Some customers are exempt from this or have specific rates for this service. Direct Point Direct Point This is a zip code that is serviced by the contracted carriers own equipment and driver. If we use an interline, agent or partner to service the zip code it is called an indirect point. Discount Discount The contractual percentage of reduction off straight tariff rates. DM Transportation has a house discount of 35%. This means that no freight bill that is rated based on rates less discount should have a discount less than 35%. Dispatching Dispatching The scheduling and control of intra-city traffic (line haul) and intercity pick up and delivery (P&D). Diversion Diversion A change made in the route of a shipment in transit. Dock Receipt Dock Receipt A receipt given for a shipment received or delivered at a pier or dock. When delivery of a foreign shipment is completed, the dock receipt is surrendered to the transportation line and a bill of lading is issued. Dock Worker Dock Worker A person employed to transfer freight from one container to another and maintain dock spaces. Dolly Dolly A piece of equipment with 2 wheels used to attach a trailer to the bac.k of another trailer to make sets or triples. Doubles Doubles A set of 2 trailers connected to one tractor. Drayage Drayage The charge made for hauling freight on carts, drays or trucks. Driver Collect Driver Collect A freight charge term meaning the driver must collect the freight charges from the consignee at the time of delivery. Dropped COD Dropped COD When a driver fails to pick up a COD check from the consignee at the time of delivery.	Exceptions Exceptions Any discrepancy noted at the time of delivery or interchange relating to the number of pieces or physical characteristics of the freight. Feeder Line Service Feeder Line Service Short transportation lines that run from a truck line into nearby areas to collect and distribute freight. Usually 25 to 35 miles long. Flatbed Flatbed A semi-trailer with no sides. Free Astray Free Astray A shipment miscarried or unloaded at he wrong terminal is billed and forwarded to the correct terminal free of charge because it is astray. Free On Board (FOB) Free On Board (FOB) Usually indicates the place where title of the goods is transferred and responsibility for expenses become the receivers. The two common terms are FOB destination and FOB dock. FOB dock means that the title changes hands at the shippers dock and therefore the freight charges are collect. FOB destination means that the title changes hands upon receipt at consignee location and freight charges are therefore prepaid. Free Time Free Time The period of time freight will be held before storage charges are applied. Freight Bill Freight Bill A document for a common carrier shipment. It gives a description of the freight, its weight, amount of charges (if collect), the rate for charges, and terms of the shipment. If the charges are to be collected in advance or paid by shipper the bills is called a prepaid freight bill. If the charges are to be collected on delivery or paid by the consignee it is called a collect shipment. Freight Charge Freight Charge Amount due for freight transportation usually excluding assessorial charges. Freight Forwarder Freight Forwarder A company that consolidates freight for many shippers, arranges for shipment and delivery via LTL carriers and gets lower rates based on volume than the individual shippers could obtain. Gross Weight Gross Weight (a) the weight of the freight including the packaging; (b) as applied to a truck, the weight of a truck together with its contents. Gypsy Gypsy An independent truck operator who drives his/her own truck and obtains freight wherever he/she can. Haustler Haustler The same thing as a yard dog, used to move trailers around a terminal facility. Hoopie Hoopie A tractor and trailer on the same frame that do not disconnect. Usually used for deliveries in downtown city spaces. Icing Charge Icing Charge A charge for Icing down perishable freight. Imaging Imaging A system used to store digital images of important documents. In Bond In Bond Goods on which a duty or tax is due are “in bond” when placed in the custody of a government or bonded warehouse or are moving by bonded carrier. Bonding guarantees that the duty will be paid. Inland Carrier Inland Carrier Transportation line that hauls export or import traffic between ports and inland locations. Inland Tariff Bureau Inland Tariff Bureau The organization that publishes tariffs and maintains the updates to ensure the public has access to the documents. Interchange Points Interchange Points The Zip code where freight is interchanged between two transportation lines, this will usually determine the split of the revenue. Interline Interline A transportation company that performs one of the parts of the freight transaction but not all and usually agrees to bill and pay other carriers or bill another carrier for their charges in order to facilitate only one bill to the customer. Interline Freight Interline Freight Freight moving from point of origin to destination over the lines of two or more transportation companies. Intermediate Carrier Intermediate Carrier A transportation line hauling a shipment between two transportation systems, but not originating or delivering the shipment to the consignee. Interstate Commerce Commission Interstate Commerce Commission The federal body charged with enforcing acts of congress relating to interstate commerce. Joint Rate Joint Rate A rate for hauling a single shipment over two or more independent transportation lines. The shipment travels on one bill of lading. Lien Lien A legal claim upon goods for the satisfaction of a debt or duty. Less Than Truckload (LTL) Less Than Truckload (LTL) A quantity of freight less than that required for the application of truckload rates. Lift Gate Lift Gate An attachment to the back of a trailer that raises and lowers from the ground to the trailer deck. Most carriers charge an accessorial for lift gate service. Line Driver Line Driver A driver that moves freight between terminals and is not doing pick up at customers or Delivery to customers, accept in special situations. Line Haul Line Haul The system (equipment and people) that moves freight from one terminal to the other. Manifest Manifest A document describing a shipment or the contents of a vehicle, container or ship. Marks Marks Letters, numbers and characters put on a package for identification purposes. Master-bill Master-bill Consolidation of multiple bills of lading typically going to the same consignee at the same time, for the purposes for getting a lower rate due to larger amounts of total weight. Maximum Rate Maximum Rate The highest contracted rate that may be charged. Minimum Rate Minimum Rate The lowest contracted rated that may be charged. Natural Work Groups Natural Work Groups Groups of people that are naturally linked by their job duties. Nested Nested When commodity is packed one within another. New Weight New Weight (a) the weight of the commodity clear of packaging or container, or (b) as applied to the truck, the weight of the contents without the weight of the truck itself. Origin Carrier Origin Carrier The carrier that picks up the freight from the shipper and receives the bill of lading. Origin Terminal Origin Terminal The terminal that picks up the freight from the shipper and obtains a bill of lading. Overage, Short and Damaged (OS&D) Overage, Short and Damaged (OS&D) Discrepancies between freight on hand and freight shown on the bill of lading. Freight not shown on the bill of lading is considered over, if some is missing then it is a shortage. Freight that has received damage is called damaged. Most of these issues are found in the notations at delivery, pickup or interchange. Overcharge Overcharge To charge more than the contracted amount. Over the Road (OTR) Over the Road (OTR) This means the freight is within the line haul system, or is between terminals.	P&D Driver P&D Driver A driver that does the Pickup from the shipper or delivery to the consignee. Packing List Packing List A detailed specification of packed materials. Pallet Pallet A portable platform for holding materials for storage or transportation. Pallet Deck Pallet Deck A metal support that allows us to stack two pallets of freight on top of each other in a trailer. Typically they are used in line haul movements. Payment Facility Payment Facility A company that its purpose is to audit and pay freight bills for other companies. Perishable Freight Perishable Freight Freight subject to decay or Deterioration. Piggyback Piggyback Transportation of a highway trailer on a rail flatcar. Point of Origin Point of Origin Zip code of where the shipper’s location is. Port of Entry Port of Entry A government designated port where foreign goods are admitted into a country. Also refers to the border stations maintained by some states to check truck compliance with their laws. Prepaid Terms Prepaid Terms The shipper is responsible for paying the freight charges. Pro Number Pro Number A Progressively sequential numbering system used to identify freight bills. Proof Of Delivery (POD) Proof Of Delivery (POD) See Delivery Receipt PUP Rate PUP Rate A rate to move a full 28 foot trailer. the rate can be determined by one time quote or off the trailer load Matrix. Rate Rate The charge for transporting freight. Rate Base Rate Base Another name for Tariff, a published set of rates. Rate Per hundred-weight (CWH) Rate Per hundred-weight (CWH) The multiplier, found in the tariff based on class and weight, used to calculate the gross freight charge. The calculation is per hundredweight, which means that 116lbs is 1.16 hundredweight. If you had a CWH of 45.70 and 116 lbs the gross freight charge would be 53.01 (45.70 x 1.16 = 53.01) Release Rate Release Rate A special low rate for shipments on which the carrier’s liability for loss or damage is limited to an agreed amount. Release Value Release Value The value of the goods set by the shipper as the carrier’s limit of liability. It relates to the classification and rate charged for moving the freight. Return Authorization (RA) Return Authorization (RA) A document issued by the original shipper authorizing the freight be returned. Rendition Billing Rendition Billing This is a billing that we are required by the customer to include documents in image with each freight bill. Usually the documents required are Bill of lading or Delivery receipt or both. Revenue Bill Revenue Bill A bill containing revenue. Most commonly used in reference to master billing, you will have DPO’s and a Revenue bill. Route Route (a) The coarse or direction the shipment moves, or (b) the plan for deliveries laid out for a P&D driver by dispatch. Safety Rating Safety Rating A measurement of how safe a company is based on miles driven between accidents. SCAC SCAC Standard Carrier Alpha Code - this is a code given to all freight carriers by the department of transportation to identify each carrier uniquely. Seal Seal A device used to ensure that a trailer is not opened in transit. Section 7 Section 7 The area on the bill of lading that allows the shipper to assign a shipment as collect without recourse if signed. If the freight carrier delivers the freight on terms, without receiving payment first, it is at the carriers own risk and the carrier has no recourse to the shipper if payment is not received from the consignee or third party assigned on the bill of lading. Service Rating Service Rating A measurement of on time deliveries Set Set Term used to describe a group of trailers that are attached to a single power unit, either doubles, singles or triples. Shipper Shipper Also known as consignor, the person or business originating the shipment. Shipper’s load and Count Shipper’s load and Count When the shipper does the loading and verifies the quantity count. The shipper also takes responsibility for the condition of the load in transit to unloading point. Shipping Order Shipping Order Instructions to a carrier for transportation of a shipment. Usually it is a copy of the bill of lading. Used also as a record by the freight agent at origin. Shortage Shortage When the quantity delivered is less than the quantity received at pickup. Shortage Change Shortage Change Payment due for shortages. Single Single One trailer behind a single power unit. Split Pickup or Delivery Split Pickup or Delivery An accessorial service of picking up or delivering portions of volume shipments at more than one place within origin or destination point boundaries. Split Pickup or Delivery Split Pickup or Delivery An accessorial service of picking up or delivering portions of volume shipments at more than one place within origin or destination point boundaries. Statement Statement A list of one or more bills for a specific customer. Store Door Delivery Store Door Delivery The movement of goods to the consignee’s place of business. System System A term used to describe the entire pick up; delivery, and line haul operation within the company. Tare Weight Tare Weight (a) the weight of the materials used to package the freight or (b) as it pertains to a truck, the weight of the tractor and trailer exclusive of its contents. Tariff Tariff A schedule of transportation rates and or rules relating to transportation of freight. Terminal Terminal A building used for the handling and temporary storage of freight as it is transferred between trucks, from city pickup to intercity truck, for example. Terms Terms Terms indicate who is responsible to pay the freight charges. See Collect, Prepaid, Driver Collect, and Third Party Billing. Third Party Billing Third Party Billing A situation where a different party than either the shipper or consignee is responsible for paying the freight charges. This can be either collect 3rd party or Prepaid 3rd Party, depending on who the 3rd party is paying on behalf of. Through Rate Through Rate A rate applicable for transportation from the origin to destination. A through rate may be a single system rate, joint rate, or a combination of two or more rates. Tractor Tractor The power unit used to pull trailer(s). Single axle tractors are usually used for pickup and delivery and double axle trailers are used for line haul moves. Trailer Trailer A piece of equipment used to house goods in transit. Trailer will have a rear set of wheels but no drive wheels attached. Triples Triples A set of 3 trailers connected to one tractor. Truckload (TL) Truckload (TL) (a) Quantity of weight that will fill a trailer; (b) Quantity of weight being the legal maximum for that type of trailer; (c) when associated with pricing, it is a level of weight that will quality the shipper for a truckload rate, usually less than a full LTL trailer. Truck Load Matrix Truck Load Matrix An internal published list of rates for full 28 foot pup loads from one terminal to an other. Warehousing Warehousing The storing of goods. Way Bill Way Bill Description of goods sent with a common carrier freight shipment. Yard Dog Yard Dog A special tractor used to move trailers around the terminal facility. Some are licensed for street use but not all.

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