Freight & LogisticsGlossary.

Bill of Lading (BOL / B/L)

A legal document issued by a carrier to a shipper that details the type, quantity, and destination of goods being carried. It serves as a shipment receipt, a contract of carriage, and a title document.

Blind Shipment

A shipment where either the shipper or consignee identity is concealed from the other party. Often used by brokers or distributors who do not want their customers and suppliers to know each other.

Bond (Surety Bond)

A financial guarantee required of licensed freight brokers by the FMCSA. The minimum broker bond is $75,000 (BMC-84 or BMC-85), protecting shippers and carriers against non-payment or misconduct.

Broker Authority

FMCSA operating authority (MC Number) that permits a company to legally arrange the transportation of property for compensation. Brokers do not own the equipment used to haul freight.

Carrier

A company or individual that physically transports freight using their own equipment. Must hold FMCSA motor carrier authority (MC Number) and meet minimum insurance requirements.

Cargo Insurance

Insurance coverage that protects the value of goods being transported in the event of damage, theft, or loss. Distinct from carrier liability, which is often limited.

Consignee

The person or company to whom freight is being shipped — the recipient of the goods.

Consignor

The person or company sending the freight — also called the shipper.

Container (TEU / FEU)

Standard intermodal shipping unit. A Twenty-foot Equivalent Unit (TEU) is a 20-foot container; a Forty-foot Equivalent Unit (FEU) is a 40-foot container, the most common ocean freight unit.

Customs Broker

A licensed professional authorized to prepare and file import/export documentation on behalf of a shipper, and to clear goods through customs.

Drayage

Short-distance trucking, typically the movement of a container from a port or rail terminal to a nearby warehouse or distribution center.

Deadhead

A truck running empty without cargo. Carriers aim to minimize deadhead miles by finding backhaul loads.

Detention

A fee charged by a carrier when a shipper or consignee holds a truck beyond the agreed free time for loading or unloading.

Door-to-Door

A freight service where the carrier or broker arranges pickup at the origin location and delivery to the final destination, including all intermediate transport legs.

Dry Van

The most common trailer type — an enclosed, non-temperature-controlled trailer used for general cargo. Also called a "van" or "box trailer."

Duties & Taxes

Government-imposed charges on imported or exported goods. Import duties are calculated based on the commodity type (HS code), country of origin, and declared value.

EDI (Electronic Data Interchange)

Standardized electronic communication format used by carriers, shippers, and brokers to exchange documents such as load tenders, BOLs, and invoices.

ETA (Estimated Time of Arrival)

The expected date and time a shipment will arrive at its destination.

FCL (Full Container Load)

An ocean freight shipment that uses an entire container, booked exclusively by one shipper. More economical per unit for large volumes than LCL.

Flatbed

A trailer without walls or a roof, used for oversized, heavy, or irregularly shaped cargo such as machinery, lumber, or steel coils.

FMCSA

Federal Motor Carrier Safety Administration — the U.S. government agency that regulates the trucking industry, issues operating authority (MC Numbers), and enforces safety standards.

FOB Origin

Freight On Board Origin: the buyer takes ownership and assumes risk of the goods as soon as they leave the seller's dock. The buyer pays freight costs.

FOB Destination

The seller retains ownership and risk until goods arrive at the buyer's location. The seller pays freight costs.

Free Time

The period allowed by a carrier for loading or unloading without incurring detention or demurrage charges.

Freight Broker

A licensed intermediary (FMCSA MC authority required) that arranges transportation of goods between shippers and carriers. The broker does not take possession of the cargo.

Freight Class

An NMFC classification (classes 50–500) used for LTL pricing, based on density, stowability, handling, and liability. Higher class = higher rate.

FTL (Full Truckload)

A shipment large enough to fill an entire trailer, or booked as such for exclusive use. More direct routing and faster than LTL.

Gross Weight

The total weight of a shipment including packaging, pallets, and the cargo itself.

Harmonized Code (HS Code)

An internationally standardized numerical system used to classify traded products for customs and tariff purposes. The first 6 digits are universal; countries add additional digits.

Hazmat (Hazardous Materials)

Materials classified by the DOT as posing a risk to health, safety, or property during transport. Require special documentation, placarding, and certified handling.

Incoterms

International Commercial Terms — a set of 11 standardized trade terms published by the ICC that define seller and buyer responsibilities for delivery, cost, and risk in international trade.

Intermodal

Freight transport using two or more modes of transportation (e.g., truck + rail, truck + ship) in a single journey, typically using standardized containers.

Lane

A defined origin–destination corridor for freight movement, typically expressed as city-to-city or region-to-region (e.g., "Chicago to Dallas lane").

LCL (Less than Container Load)

Ocean freight where cargo from multiple shippers is consolidated into a single container. Cost-effective for smaller international shipments.

Liftgate

A hydraulic platform attached to the rear of a truck that raises and lowers cargo between the ground and truck bed. Required when a dock is not available.

Load Board

An online marketplace where brokers post available freight and carriers search for loads. Common platforms include DAT and Truckstop.

LTL (Less than Truckload)

A shipment that does not fill an entire trailer. Multiple shippers' freight shares space in the same trailer. More economical for smaller loads; slower than FTL.

MC Number

Motor Carrier Number — issued by FMCSA to authorize a company to operate as a motor carrier or freight broker in interstate commerce.

Manifest

A document listing all cargo aboard a vessel, aircraft, or truck, used for customs and record-keeping.

NMFC (National Motor Freight Classification)

A standardized system published by NMFTA for classifying commodities for LTL shipping. Determines freight class and applicable tariff rates.

Origin

The starting point of a shipment — where the freight is picked up.

Over, Short & Damaged (OS&D)

Terminology describing freight that arrives with more items than expected (over), fewer items than expected (short), or with damage.

Pallet

A flat transport structure (typically 48"×40" in North America) on which goods are stacked and secured for efficient handling by forklifts.

POD (Proof of Delivery)

Documentation — typically a signed copy of the delivery receipt or BOL — confirming that freight was delivered in good condition.

Port of Entry

A designated location where customs inspections occur for imported goods. Also called a "port of discharge" in ocean freight.

Rate Confirmation

A document issued by a freight broker to a carrier that outlines the agreed rate, pickup and delivery details, and terms for a specific load.

Reefer (Refrigerated)

A temperature-controlled trailer or container used to transport perishable or temperature-sensitive cargo such as food, pharmaceuticals, or chemicals.

Shipper

The company or individual that tenders freight for transportation — the origin party. Also called the "consignor."

Spot Rate

A one-time, market-based freight rate for a specific load, as opposed to a contract or long-term rate. Spot rates fluctuate with supply and demand.

Tariff

A published schedule of rates and charges for freight services. In customs, a tariff refers to the duty imposed on imported goods.

USDOT Number

United States Department of Transportation Number — a unique identifier issued to commercial vehicles operating in interstate commerce for safety monitoring purposes.

Volume LTL

LTL shipments too large for standard LTL pricing but too small for a full truckload. Typically 6+ pallets or 5,000+ lbs. Priced separately from standard LTL.

Waybill

A non-negotiable transport document used in air freight (Air Waybill / AWB) and some rail/road shipments. Unlike a BOL, it is not a title document.

Weight Break

A threshold weight at which LTL or freight rates change, often resulting in a lower per-unit cost above certain weights.