Trucking Terms

Cargo

A "Cargo Claim" is a demand made on a transportation company for payment for goods allegedly lost or damaged while the shipment was in the transportation provider's possession. Pursuant to the National Motor Freight Classification (NMFC) Uniform Bill of Lading, all cargo claims must be filed within 9 months.

Waybill

A "Waybill" is a non-negotiable document prepared by or on behalf of the carrier at origin. The document shows origin point, destination, route, consignor, consignee, shipment description and amount charged for the transportation service. See air waybill.

Shipper's Agent

A Shipper's Agent is not a carrier, freight forwarder, or broker. Shipper's agents generally arrange for truckload or container load shipment transportation. Shipper's agents commonly provide services related to warehousing or loading and unloading. (See also Freight Forwarder and Broker)

Tariff

A Tariff is a document setting forth applicable rules, rates and charges to move goods. A tariff sets forth a contract for the shipper, the consignee and the carrier. Since January 1, 1996, motor carriers are not required to publish tariffs. However, in accordance with federal law, tariffs must be provided to a shipper on request.

Free Along Side (FAS)

A basis of pricing meaning the price of goods alongside a transport vessel at a specified location. The buyer is responsible for loading the goods onto the transport vessel and paying all the cost of shipping beyond that location.

Bill of Lading (BOL or B/L)

A bill of lading is a binding contract that serves three main purposes: 1. a receipt for the goods delivered to the transportation provider for shipment; 2. a definition or description of the goods; and 3. evidence of title to the relative goods, if "negotiable".

Broker

A broker is an independent contractor paid to arrange motor carrier transportation. A broker may work on the carrier or shipper's behalf.

Cartage Agent

A carrier who performs pickup or delivery in areas that a freight mover does not serve. • Cartage agents use their own paperwork while transporting the shipment. • The freight mover does not track the shipment while it is in the cartage agent's possession. • When the freight mover gives a shipment to a cartage agent for delivery, the shipment is considered to be "delivered."

Freight Forwarder

A freight forwarder combines less-than-truckload (LTL) or less-than-carload (LCL) shipments into carload or truckload lots. Freight forwarders are designated as common carriers. They also issue bills of lading and accept responsibility for goods. The term may also refer to the company that fills railroad trains with trailers. (Also see Freight Broker and Shipper's Agent.)

Third-Party

A party other than the shipper or consignee that is ultimately responsible for paying the shipment charges.

Dock

A platform, generally the same height as the trailer floor, where trucks are loaded and unloaded.

COD

A shipment for which the transportation provider is responsible for collecting the sale price of the goods shipped before delivery.

Order Notify (also called Negotiable Bill of lading)

A shipment requiring the consignee to surrender the original endorsed bill of lading at the time of delivery. A shipper may use this method to guarantee payment for goods shipped. It's most commonly used with truckload shipments.

Exclusive Use

A shipper pays a premium rate for the sole use of the trailer. The trailer will be sealed at loading, and the seal number is recorded on the manifest. The seal number is verified before the trailer is unloaded at destination. When a shipper requests an exclusive use trailer, no other freight may be added to the unit even if space permits.

Bonded Carrier

A transportation provider by U.S. Customs to carry Customs-controlled merchandise between Customs points.

Non-vessel operating common carriers (NVOCC)

A type of ocean freight forwarder. NVOCCs books space in large quantities for a reduced rate, then sell space to shippers in lesser amounts. NVOCCs consolidate smaller shipments into a container load that ships under one bill of lading.

Drayage

Also known as connecting road haulage. 1. The hauling of a load by a cart with detachable sides (dray). 2. Road transportation between the nearest railway terminal and the stuffing place.

Free On Board (FOB)

An acronym for "free on board" when used in a sales contract. The seller agrees to deliver merchandise, free of all transportation expense, to the place specified by the contract. After delivery is complete, the title to all the goods and the risk of damage become the buyer's.

Air Freight Forwarder

An air freight forwarder provides pickup and delivery service under its own tariff, consolidates shipments into larger units, prepares shipping documentation and tenders shipments to the airlines. Air freight forwarders do not generally operate their own aircraft and may therefore be called "indirect air carriers." Because the air freight forwarder tenders the shipment, the airlines consider the forwarder to be the shipper.

Air Waybill

An air waybill is a shipping document airlines use. Similar to a bill of lading, the air waybill is a contract between the shipper and airline that states the terms and conditions of transportation. The air waybill also contains shipping instructions, product descriptions, and transportation charges.

Exceptions

An exception is any delivery in which the receiver or driver notes a problem on the delivery receipt before signing it. Typically, exceptions concern shortage and/or damage.

Carmack

An industry term regarding loss or damage of goods. Carmack is governed by 49 U.S.C 14706, which states that a motor carrier must • issue the Bill of Lading and However, carriers limit their liability for release value products, and can limit their damages to $25 per pound or $100,000 per shipment.

UN Number

An internationally accepted 4-digit number used to identify hazardous material.

Freight Broker

Any person who sells transportation without actually providing it. The term usually refers to an agent for truckload shipments, matching small shippers with carriers. Freight brokers often do not accept any responsibility for their shipments. (Also see Freight Forwarder and Shipper's Agent.)

Freight

Any product being transported.

Common Carrier

Company that provides transportation services to the public in return for compensation.

Breakbulk Terminal

Consolidation and distribution center. A terminal in the Freight system that unloads and consolidates shipments received from its smaller terminals and from other breakbulks. This terminal may have its own city operation. Example-Freight destined for Texas from several New England states will be consolidated at our Stroudsurgh, Pa., breakbulk terminal for forwarding to Texas.

Dolly (Jifflox)

Converter that provides an extra axle and fifth wheel and is used to connect multiple trailers.

Delivery Receipt

Document a consignee or its agent dates and signs at delivery, stating the condition of the goods at delivery. The driver takes the signed delivery receipt to the terminal for retention. The customer retains the remaining copy.

Terminal

Freight building and grounds where shipments are prepared for local delivery or transportation to other terminals. Find your local terminal.

Payment Terms

Generally, the shipper is responsible for payment for prepaid shipments, and the consignee is responsible for payment for collect shipments unless a third party is indicated as payor on the shipping papers.

Less-Than-Truckload (LTL)

Goods weighing less than 10,000 pounds from several shippers loaded onto one trailer.

Hazardous Material

Hazardous materials are defined by the U.S. Department of Transportation in accordance with the Federal Hazardous Material Law. A substance or material may be designated as hazardous if the transportation of the material in a particular amount and form poses an unreasonable risk to health and safety or property. Hazardous material may include- an explosive, radioactive material, etiologic agent, flammable or combustible liquid or solid, poison, oxidizing or corrosive material, and compressed gas. For more general information, go to the U.S. DOT website at http//www.phmsa.dot.gov/hazmat.

National Motor Freight Classification (NMFC)

Industry standard tariff published by motor carriers containing rules, descriptions and rating on all products moving in commerce; used to classify goods for the purpose of rating the freight bill. You can obtain more information about shipment classes and the NMFC at www.nmfta.org. To determine your shipment's classification, contact your local terminal.

Truckload (TL)

Large-volume shipment from a single customer that weighs more than 10,000 pounds or takes up all the trailer space so no other shipment can be loaded. Volume shipping

Pickup and Delivery (P&D)

Local movement of goods between the shipper (or pickup point) and the origin terminal or between the destination terminal and the consignee (or delivery point). See the trailer dimensions

Linehaul

Movement of goods between cities or between freight terminals, particularly between origin terminal and destination terminal (excluding pickup and delivery service). Trailer dimensions

Overage

Number of units received is in excess of the quantity shown on shipping documents. Overages should not be delivered to a customer. They're returned to the terminal unless the terminal receives more information while the driver is making pickups and deliveries.

Overcharge/Undercharge

Overcharge or undercharge claims are demands on a transportation company for a refund of an overcharge from the erroneous application of rates, weights and/or assessment of freight charges.

Shipping Documents

Papers accompanying a shipment as it moves through the freight system, including bills of lading (PDF), packing slips (PDF), Customs paperwork, manifests and shipment bills.

Exempt Product

Products that are exempt from federal regulation, such as agricultural and forestry products..

Intermodal (also called Multimodal)

Shipment moves by more than one mode of transportation (ground, air, rail or ocean).

Multimodal Transportation (also called Intermodal)

Shipment moves by more than one mode of transportation (ground, air, rail or ocean).

In Bond

Shipments move under bond from point of entry to an interior U.S. destination for clearance or to another border location for clearance.

Freight Bill

Shipping document prepared by the freight mover to confirm shipment delivery and indicate payment terms (prepaid or collect). The document describes the shipment, its weight, the amount of charges and taxes and whether the bill is collect or prepaid. If the bill is prepaid, the shipper pays the shipping charges. If the bill is collect, the consignee pays the shipping charges.

Concealed Loss

Shortage or damage not evident at delivery.

Dispatch

The act of sending a driver on his/her assigned route with instructions and required shipping papers. The freight mover maintains contact with drivers throughout the day by phone, pager, radio, satellite communication or cellular phone.

Gross Vehicle Weight (GVW)

The combined weight of the vehicle (tractor and trailers) and its goods.

Electronic Data Interchange (EDI)

The electronic transmission of routine business documents, such as purchase orders, invoices and bills of lading, between computers in a standard format. The data formats, or transaction sets, are usually sent between mainframe computers. Learn more in the EDI Resource Center.

Minimum Charge

The lowest charge for which a shipment will be handled after discount and/or adjustment.

Shortage

The number of units received is less than the quantity shown on shipping documents. The outstanding units may be delivered later.

Overcharge Claims

The payor of the shipping charges files an overcharge claim to dispute a discrepancy in charges that can stem from overpayment, weight or description corrections, etc.

Consignee

The person or place where a shipment will be transferred for the last time (destination); the individual or organization to whom the goods are addressed.

Bill of Lading Exceptions

The terms and conditions of most bills of lading release transportation providers from liability for loss or damage arising from • an Act of God, • a public enemy, • the authority of law or the act or default of the shipper. In addition, except in the case of negligence, a transportation provider will not be liable for loss, damage, or delay caused by • the property being stopped and held in transit at the request of the shipper, owner or party entitled to make such request; • lack of capacity of a highway, bridge or ferry; • a defect or vice in the property; or • riots or strikes.

Truck Tonnage

The weight (in tons) of a shipment transported by truck.

FOB Origin

Title and risk pass to the buyer at the moment the seller delivers the goods to the carrier. The parties may agree to have title and risk pass at a different time or to allocate shipping charges by a written agreement.

Break bulk

To separate parts of a load into individual shipments for routing to different destinations.

Deck Trailers

Trailers with rows of tracking on each sidewall and deck load bars. The load bars fit into the tracks to form temporary "decks" on which goods can be loaded. Decks allow more goods to be loaded in the trailer, reduce damage, and speed loading and unloading.

FOB Destination

Under this arrangement, title and risk remain with the seller until it has delivered the goods to the location specified in the contract.

Doubles

Vehicle configuration in which a tractor pulls two trailers connected by a dolly or jifflox. See trailer dimensions