Today we would like to define some common Freight terms that come up on a day-to-day basis when doing business in the freight industry. These will help the "first-time shipper" better understand the overall process of shipping freight.


Accessorial Fee- Fees that are charged for any services that go above and beyond the standard transportation services provided by the carrier. Examples of these fees include charges for residential pick-ups or lift gate services.


Bill of Lading (BOL)- Document issued by the carrier describing the terms of the shipment. Information on the BOL includes the names and addresses of both shipping and receiving parties, but also a description of the freight being shipped. The form also holds the terms of the shipment and acts as a receipt, proving that the stated goods have been delivered. When shipping through a freight broker, ALWAYS use the BOL issued by the freight broker to ensure that you are only charged the discounted price stated by the broker.


Common Carrier- A transportation company that transports people or goods on designated routes at published rates.


Common Freight- Items or goods to be shipped, typically by a freight carrier. Items shipped by freight carriers normally weight 150 pounds or more.


Detention Fee- Fees charged by carrier for holding shipped cargo or containers for time past a specified pick-up date. Typically, persons receiving freight have about 7 days to pick up the freight if picking up the freight from the carrier.


Dimensional Weight- Technique of charging for freight that is large in size, but low in weight. The formula is Length x Height x Weight / Factor between 166 and 250 (determined by freight carrier).


Dispatch- To coordinate the movement of freight from origin to destination.


Flatbed- Trailer used for transporting goods having no sides. Flatbeds are typically used for shipping items that are too large to fit within a standard trailer.


Freight All Kinds (FAK)- Various items that are shipped together, but can be shipped under the same freight classification.


Freight Broker- Company that matches the shipping needs of an individual or company to the services of a freight carrier that can best handle those needs. These brokers use the volume of business they receive to negotiate large discounts with the freight carriers, in which, they pass along their customers.

Freight Forwarder- Company that facilitates the movement of goods between a shipper and a freight carrier.


Freight Quote- A preliminary cost estimate for a particular freight shipment, normally based off limited information.

Full Truckload (FTL)- Shipping with a truck at its full capacity, or at a level in which the freight carrier provides a truckload rate.


Hazardous Material- An item that can be dangerous to ship. The item must be shipped in a way that meets the rules and standards of the Department of Transportation.


Intermodal Container- Standardized freight shipping containers that can be used for all modes of transportation, including sea, train, and motor freight. Are generally 20 or 40 feet long.


Interline Freight- Freight moving through territories in which more than one freight carrier must be used to transport it.


Less Than Truckload (LTL)- Shipping of items that are too large to be considered parcel shipments (150lbs +) and too small to be considered a full truckload.


Lift gate- Machine at the rear of the truck used for loading and unloading freight. Usually used for items that are too large to be lifted by hand.


Reefer Trailer- A refrigerated trailer used for shipping temperature sensitive items.


Supply Chain- The life cycle of a product from raw material stage until it reaches the hands of the end-user. All stages of the supply chain should add value to the product.


Third Party Logistics (3PL)- Company that uses its vast logistics resources to outsource and coordinate logistics services for individuals and businesses.


Transit Time- Time taken for a shipped item to travel from its point of origin to its final destination.


Volume Shipping- Alternative shipping rate typically used for LTL items that are of a high density.