Below are freight payment terms commonly used in our industry.
3rd Party Logistics (3PL):
used to describe a company that arranges for the transportation of freight when they are not the manufacturer of goods, nor the owner of goods.
Additional charges assigned by trucking companies for services considered to be outside the origin scope.
BOL or Bill of lading:
document that is the contract carriage between the shipper and carrier.
the separation of consolidated, bulk load into individual, smaller shipments for delivery to the ultimate consignee.
mathematical weight point, after which it becomes less expensive for the client to pay for a delivery at the next higher weight classification, which will also be a lower weight. For example 0-500lbs at one price, and 501-1000lbs at slightly less expensive rate.
an intermediary between the shipper and the carrier who arranges transportation.
same as delivery.
cash on delivery.
freight charges are paid by consignee.
to transfer to another's custody or charge.
the receiver of a freight shipment.
the sender of a freight shipment.
a storage unit that does not have wheels permanently attached to the bottom and is at ground height. Sizes can range from 10-40feet. The most common sizes are 20 feet and 40 feet.
"Cost plus" model:
when a freight management company agrees to haul merchandise for a predetermined percentage that is in addition to the freight costs.
the volume of the shipment or package (length x width x height).
When freight is unloaded from one trailer onto a dock and then reloaded onto another trailer that is headed toward the freight's final destination.
the charges assessed by the motor carrier when the shipper/receiver holds a truck trailer beyond the free time allowed for loading or unloading. Industry standard in truckload transportation is four hours free.
industry slang term used in airfreight to describe the dimensional weight of merchandise.
a term used to describe the unloading of containers on a steam ship.
when the normal transit time of a shipment will not get the merchandise to the destination when needed, and a faster form of transportation is used. Examples of expedited shipments: hot shots, team drivers, and airfreight.
the trailer used by over the road motor carrier, which allows for the transportation of oversized or specialty items that can be exposed to outside conditions.
the carrier's invoice for transportation charges applicable to a freight shipment.
when merchandise is either delivered over, short or damaged and reconciliation must be made with the trucking company for payment of goods.
a number ranging from 50 to 500 that is assigned by the NMFC and used by less than truckload carriers to determine at what rate freight should be charged.
when a 3rd party logistics provider is utilized to negotiate and manage the shipping of all goods, no matter which modes of transportation are necessary to get product there.
an additional charge by carriers to compensate the rising and lowering price of fuel, usually a percentage of an established rate.
the total weight of the vehicle and payload of freight or passengers.
when driver is expected to unload freight and place inside building in predetermined area. This does not include un-cartoning, set up, or installation.
two or more carriers work together to haul shipments to a destination.
Less than truckload (LTL) shipment:
when only part of the loading capacity of a trailer is used.
carrier that picks up goods from a region they are domiciled out of, but goods are consigned to an area in which they are not domiciled.
NMFC (National Motor Freight Classification system):
a numbering system that is used to determine the rate at which freight charges should be applied according to weight for less than truckload carriers.
OS&D (overage, shortage or damage):
Typically referred to as Loss & Dage claims when a shippers freight is damaged or lost in transit by the carrier they tendered the freight to.
freight charges paid by shipper or third party.
Small (usually 20' to 28') trailer that is utilized by less than truckload carriers. Often, these trailers are hooked together in groups of two or three to ship merchandise from one destination to another.
when the full loading capacity of a trailer is used for shipping product. The most common types of truckload trailers are 53 feet and 48 feet long.
Slang term for an enclosed trailer used by over the road motor carriers, which allows for the transportation of up to 45,000+ lbs or a 48' to 53' truck, whichever is greater. Also known as a standard trailer.