transportation terms

8/10/2019 Transportation Terms

1/20

Forwarder, Shipper, Carrier,

Consignee, Notify Partyhttp://www.kkfreight.com/consignee-notify-party-shipper.html

Freight Forwarder

a person or corporation who arranges transport of goods on behalf

of either the seller or buyer. In many cases the freight forwarder will

also consolidate several small shipments into one larger one to take

advantage of better freight rates. In most cases the freight

forwarder will assume the legal liabilities of acting as a carrier

Shipper

a person or company who is usually the supplier or owner of

commodities shipped. Also called Consignor.

Carrier

a person or company that transports goods or people for any

person or company and that is responsible for any possible loss of

the goods during transport.

Consignee

the party shown on the bill of lading or air waybill to whom the

shipment is consigned. Need not always be the buyer, and in some

countries will be the buyer's bank. See also Bill of Lading - Order B/L

and Notify Party.

Notify Party


2/20

the person or company to be advised by the carrier upon arrival of

the goods at the destination port.

Freight

The price or compensation paid for the transportation of goods by a carri

er. Freight is also applied to the goods transported by such carriers.

(http://legal-dictionary.thefreedictionary.com)

A party (usually a buyer) named by the consignor (usually a seller) in

transportation documents as the party to whose order a consignment will

be delivered at the port of destination. The consignee is considered to be

the owner of the consignment for the purpose of filing the customs

declaration, and for paying duties and taxes. Formal ownership of the

consignment, however, transfers to the consignee only upon payment of

the seller's invoice in full.

http://www.businessdictionary.com/definition/consignee.html#ixzz3JZNMI

bLT


3/20

FREIGHT TERMShttp://pnglc.com/logistics-info/freight-terms/

ACESSORIAL CHARGESAccessorial charges are for services that are in addition to typicaltransportation services such as: inside delivery, a residentialdelivery, liftgate delivery, and other similar services.

AIR BILL (AIR WAYBILL)

An Air Bill (Air Waybill) is the document for an air carrier that

provides information about the freight, weight, freight charges,shipper, consignee, and the party responsible for freight charges.An air bill is essentially an LTL freight bill, but for an air carrier.

ARRIVAL NOTICE

An arrival notice is the notice that the consignee receives whentheir freight has arrived at its destination. See also DeliveryReceipt.

ASTRAY FREIGHTAstray freight is freight that is separate from the waybill, but hasmarkings that indicate freight origin and destination.

BILL OF LADING

The Bill of Lading (BOL) is the contract between the shipper andthe carrier. This transportation contract identifies the freight,consignee, shipper, and the terms of the agreement.

BONDED WAREHOUSE

A bonded warehouse is a warehouse that is approved by theTreasury Department. These warehouses are used for storinggoods under bond until duties are paid.


4/20


5/20

has created a guide that is universally accepted by all major LTLfreight carriers. Correct classification is crucial to receivingaccurate freight quotes.

COLLECT TERMSCollect terms state that the consignee is responsible for thefreight charges.

CONCEALED DAMAGE

Concealed damage consists of damage to the contents of apackage without the damage being apparent externally.

CONSIGNEE

The consignee is the individual or business that receives thefreight being shipped.

CONSIGNOR

The consignor is the person or business that originates theshipment. Also, known as the shipper.

CONTAINER

A container is anything that items are packed in.

CONTRACT

A contract is a legal document between parties. In regards tofreight, a contract states specifics of the freight shipment process.

CORRECTED BILL OF LADING (CBL)

A corrected bill of lading (CBL) is a documented that the shipperwould issue to amend the original bill of lading (BOL).


6/20

CREDIT APPLICATION

A credit application is used to verify customer information inregards to credit worthiness.

DEDICATED CHARGE

A dedicated charge is when a company commits specificequipment to a customer for their use only. Dedicated chargescan include runs or deliveries outside of the typical system.

DEFICIT WEIGHT

Deficit weight is weight added to a bill so that the shipment will

cost less due to the rate reduction for higher weights.

DELIVERY RECEIPT (DR)

A delivery receipt (DR) is a document that is used when ashipment is delivered. The consignee signs this document toconfirm delivery, and is also known as a Proof of Delivery.

DEMURRAGE

Demurrage is the detention of a container or freight vehiclebeyond the estimated timeframe.

DENSITY (DPCF)

Density is the measurement of the volume of a shipment. Thecalculation for density is equal to the weight of the product dividedby (length x width x height / 1728). Density is measured inpounds/cubic foot. DPCF Equals [Weight/(LXWXH/1728)]

DETENTION

Detention is the time that a driver is made to wait beforeloading/unloading at a customers facility. This time may cause anincrease in cost for the shipment.


7/20

DIRECT POINT

A direct point is a zip code that receives service by the contractedcarriers own equipment and driver. See also Indirect Point.

DISPATCHINGDispatching is the process of scheduling and managing intra-citytraffic (line haul) and intercity pickup and delivery (P&D).

DIVERSION

A diversion is a route change made to a shipment in transit.

DOCK RECEIPT

A dock receipt is given when a shipment is received or deliveredat a pier or a dock. The dock receipt is surrendered to thetransportation line and a bill of lading is issued when delivery ofshipment is completed.

DOCK WORKER

A dock worker is a person who maintains dock spaces bytransferring freight from one container to another.

DOLLY

A dolly is a piece of equipment that has two wheels and is used toattach a trailer to another trailer to make sets.

DOUBLES

Doubles are tractors with a set of two trailers connected to them.

DRAYAGE

Drayage is a charge that occurs when freight is hauled on carts,drays, or trucks.


8/20

DRIVER COLLECT

Driver collect is a term that relates to freight charges. It meansthat the driver collects the freight charges from the consignee atthe time of delivery.

DROPPED COD

A dropped COD occurs when a driver does not pick up a CODcheck at the time of delivery.

EXCEPTIONS

Exceptions are discrepancies taken note of at the time of

interchange or delivery and are related to the physicalcharacteristics or number of pieces of the freight.

FEEDER LINE SERVICE

Feeder line service consists of short transportation lines that gofrom a truck line to nearby areas in order to collect and distributefreight. A feeder line service is typically 25 to 35 miles long.

FLATBEDA flatbed is a semi-trailer that has no sides.

FREE ASTRAY

A free astray is a shipment that was unloaded at or miscarried tothe wrong terminal and is then billed and forwarded to the correctterminal for free.

FREE ON BOARD (FOB) DESTINATION

Free on board (FOB) destination means that the title changeshands at the consignee location upon receipt so the freightcharges are prepaid.


9/20

FREE ON BOARD (FOB) DOCK

Free on board (FOB) dock means that the title changes hands atthe shippers dock so the freight charges are collect.

FREE TIME

Free time is the amount of time that freight is held before storagecharges begin accruing.

FREIGHT BILL

A freight bill is a common carrier shipment document. The freightbill describes the freight, amount of charges, the rates, and the

terms of the shipment. See also Bill of Lading.

FREIGHT CHARGE

The freight charge is the amount that is due for freighttransportation.

FREIGHT FORWARDER

A freight forwarder is a company that consolidates freight forshippers, manages shipments through LTL carriers, and forwardson lower rates to customers due to a higher volume of shipmentsthan individual shippers obtain.

GROSS WEIGHT

(a) Gross weight is the weight of the freight including thepackaging.(b) Gross weight is the weight of a truck including itscontents.

HAUSTLER

A haustler is equipment used to move trailers around a terminalfacility. See also Yard Dog.


10/20

HOOPIE

A hoopie is a tractor and a trailer that are on the same frame anddo not disconnect. A hoopie is usually used for deliveries indowntown city spaces.

IMAGING

Imaging is a system that is used to store digital images ofdocuments.

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 movingby bonded carrier. Bonding guarantees that the duty will be paid.

INLAND CARRIER

An inland carrier is a transportation line that carries import orexport traffic between ports and inland areas.

INLAND TARIFF BUREAU

The Inland Tariff Bureau is an organization that publishes tariffsand manages updates while ensuring that the public has accessto the documents.

INTERCHANGE POINTS

Interchange points are where freight is interchanged between twotransportation lines. The interchange point zip code typicallydetermines the split of the revenue.

INTERLINE

An interline is a transportation company that performs one part ofthe freight transaction. They typically agree to bill or pay other


11/20

carriers for the other parts of the freight transaction so that theircustomer only receives one bill.

INTERLINE FREIGHT

Interline freight moves over the lines of two or more transportationcompanies from point of origin to destination.

INTERMEDIATE CARRIER

An intermediate carrier is a transportation line that hauls ashipment between two transportation systems. An intermediatecarrier does not originate or deliver the shipment.

INTERSTATE COMMERCE COMMISSION

The Interstate Commerce Commission is the federal organizationthat is responsible for enforcing acts of Congress relating tointerstate commerce.

LESS THAN TRUCKLOAD (LTL)

Less than truckload (LTL) is an amount of freight that is less than

what is required for the application of truckload rates. LTL freightshipping is the easiest and most economical way to move largeand bulky items.

LIEN

A legal claim upon goods for the satisfaction of a debt or duty.

LIFT GATE

A lift gate attaches to the back of a trailer that can be raised andlowered between the ground and the trailer deck. There istypically an accessorial charge for lift gate service.


12/20


13/20

ORIGIN CARRIER

The origin carrier is the carrier that picks up the freight from theshipper. The origin carrier also receives the bill of lading.

ORIGIN TERMINAL

The origin terminal is the terminal that picks up the freight fromthe shipper. The origin terminal also receives the bill of lading.

OVER THE ROAD (OTR)

Over the road (OTR) means that the freight is between terminalsor within the line haul system.

OVERAGE, SHORT AND DAMAGED (OS&D)

Overage, short, and damaged (OS&D) are discrepancies betweenthe bill of lading and the freight on hand. Most of thesediscrepancies are noted at delivery, pickup, or interchange.Overage is when freight on hand is not shown on the BOL. Shortis when freight shown on the BOL is not on hand. Damagedmeans that there is damage to the freight.

OVERCHARGE

Overcharge occurs when the charge is more than the amount thatwas contracted.

P&D DRIVER

A P&D driver is the driver that picks up the shipment or delivers tothe consignee.

PUP RATE

A rate to move a full 28 foot trailer. the rate can be determined bya spot rate


14/20

PACKING LIST

A packing list is a detailed list of packed materials.

PALLET (ALSO KNOWN AS SKID)A pallet is a platform that is portable and holds materials forstorage or transportation.

PALLET DECK

A pallet deck is a metal support that enables two pallets of freightto be stacked on top of each other in a trailer. Pallet decks areusually used in line haul movements.

PAYMENT FACILITY

A payment facility audits and pays freight bills for othercompanies.A company that its purpose is to audit and pay freight bills forother companies.

PERISHABLE FREIGHT

Perishable freight is freight subject to decay or deterioration.PNGLC cannot help you ship perishable freight.

POINT OF ORIGIN

The point of origin is the zip code of the shippers location.

PORT OF ENTRY

(a) A port of entry is a government designated port where foreigngoods are evaluated before being admitted into a country.(b) Ports of entry are border stations managed by some states inorder to check truck compliance.


15/20

PREPAID TERMS

Prepaid terms mean that the shipper or a Third Party isresponsible for the freight charges.

PRO NUMBER

Pro number is a sequential numbering system that is used toidentify freight bills. A Pro number is like your shipments socialsecurity number and is unique to each particular shipment.

PROOF OF DELIVERY (POD)

Proof of Delivery (POD) is a document that is used when a

shipment is delivered. The consignee signs this document toconfirm delivery.

RATE

The rate is the cost of transporting freight.

RATE BASE

Rate base is a published set of rates. See also Tariff.

RELEASE RATE

A release rate is a special, low rate that occurs when the carriersliability is limited to an agreed amount for the shipment.

RELEASE VALUE

The release value is the value of the goods that is set by theshipper as the carriers limit of liability. The release value relates

to classification and freight rates.

RETURN AUTHORIZATION (RA)

A return authorization (RA) is the document sent out by theoriginal shipper that authorizes the freight to be returned.


16/20

ROUTE

(a) A route is the course or direction of the shipment.(b) A route is the delivery plan laid out for a P&D driver bydispatch.

SCAC

SCAC stands for Standard Carrier Alpha Code. The Departmentof Transportation give this code to each freight carrier to uniquelyidentify them.

SAFETY RATING

A safety rating measures the safety of a company. A safety ratingis based on how many miles have been driven betweenaccidents.

SEAL

A seal is used to make sure that a trailer is not opened duringtransit.

SECTION 7Section 7 is the area on the BOL that allows the shipper to assigna shipment as collect without recourse if signed. If the carrierdelivers the freight on terms, without receiving payment first, it isat the carriers own risk and the carrier has no recourse to theshipper if payment is not received from the consignee or thirdparty assigned on the bill of lading.

SERVICE RATINGThe service rating measures the amount of on time deliveries.


17/20

SHIPPER

The shipper is the person or business who originates theshipment. See also Consignor.

SHIPPERS LOAD AND COUNTShippers load and count occurs when the shipper loads the

shipment and verifies the quantity. The shipper is then alsoresponsible for the condition of the shipment in transit.

SHIPPING ORDER

The shipping order consists of instructions to a carrier regardingthe transportation of a shipment. The shipping order is typically a

copy of the bill of lading.

SHORTAGE

Shortage is when the amount of freight delivered is less than theamount of freight received at pickup.

SINGLE

A single consists of one power unit pulling one trailer.

SPLIT PICKUP OR DELIVERY

Split pickup or delivery is an accessorial service where portions ofvolume shipments are picked up or delivered at more than oneplace.

STATEMENT

A statement is a list of one or more bills.

STORE DOOR DELIVERY

Store door delivery is when goods are shipped to the consigneesplace of business.


18/20

SYSTEM

System is a term that describes the whole pick up, delivery, andline haul operation within a company.

TARE WEIGHT

(a) Tare weight is the weight of the packaging materials.(b) Tare weight is the weight of the tractor and trailer without itscontents.

TARIFF

A tariff is a schedule of transportation rates and rules.

TERMINAL

A terminal is a building that handles and stores freight temporarilyas it is transferred between trucks.

TERMS

Terms state who is responsible for paying the freight charges.

THIRD PARTY BILLING

Third party billing is a scenario where neither the shipper nor theconsignee is responsible for paying the freight chargesinsteadthere is a third party who is responsible for the charges.

TRACTOR

A tractor is the power unit that pulls trailers. There are single axle

tractors and double axel tractors. Single axle tractors are typicallyused for pickup and delivery while double axel tractors aretypically used for line haul moves.


19/20

TRAILER

A trailer is the equipment that is used to house goods duringtransit.

TRIPLES

Triples refer to one tractor pulling three trailers.

TRUCKLOAD (TL)

(a) Truckload (TL) is the amount of weight that will fill a trailer; (b)Truckload (TL) is the legal maximum weight for a particular typeof trailer.

(c) Truckload (TL) is the amount of weight that will qualify for atruckload rate.

WAREHOUSING

Warehousing is the storage of goods.

WAY BILL

A way bill is a description of goods shipped in a common carrierfreight shipment.

YARD DOG

A yard dog is a piece of equipment that is used to move trailersaround a terminal facility. See also Haustler.


20/20

transportation terms

Documents