Understanding common freight shipping terms is essential for businesses managing transportation and logistics. From pricing and documentation to service types and equipment, shipping terminology can quickly get confusing, especially when you’re working across multiple modes and carriers.
This glossary of shipping terms provides clear, practical definitions of the most commonly used terms in freight and logistics, helping you navigate industry terminology with confidence.
These are foundational freight shipping terms and definitions used across the logistics industry. Understanding these basic freight and shipping terms will help you navigate quotes, documentation, and day-to-day shipping operations more effectively.
Accessorial charges are additional services beyond standard pickup and delivery, such as liftgate service, residential delivery, or appointment scheduling. These additional services come with an extra fee.
A Bill of Lading (BOL) is a binding contract between the shipper and carrier that serves three main purposes:
A company responsible for transporting freight from origin to destination.
Any goods or products being transported as part of a shipment.
The person or business receiving the shipment.
The person or business sending the shipment
Cross-docking is a logistics process where freight is unloaded from one vehicle and directly loaded onto another with minimal storage time.
When a truck travels empty, without carrying freight.
The weight of freight per cubic foot, used to determine freight class and pricing in LTL shipping. Try our density calculator to estimate the cost of your LTL shipping.
Dentention charges are applied when a truck is delayed beyond the allotted loading or unloading time.
Drayage is the short-distance transportation of freight, typically between ports, rail yards, and warehouses.
Any commodity or goods being transported from one location to another.
A freight agent is an independent professional who works under a freight broker to source and manage shipments.
A freight broker is a licensed intermediary that connects shippers with carriers and manages transportation logistics.
A freight forwarder is a company that arranges the transportation of goods on behalf of shippers by coordinating carriers, documentation, and logistics across multiple modes of transport, including air, ocean, and trucking.
There are multiple ways to move freight depending on shipment size, urgency, and distance. These freight shipping terms explain the most common transportation modes and services used in modern freight shipping.
Air freight transports goods by aircraft, typically used for time-sensitive shipments.
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.
A standard shipping service where freight is picked up and delivered at locations equipped with loading docks.
Expedited shipping is a premium service that prioritizes speed, often using team drivers or dedicated trucks.
Full truckload or FTL is a shipping method where a shipment occupies an entire trailer, offering faster transit and minimal handling.
With intermodal shipping, freight is transported using multiple modes (truck, rail, ship). The cargo itself isn’t handled when switching modes.
Less-than-truckload or LTL is a shipping method where multiple shipments share space in one trailer. Used for smaller shipments that do not require a full truck.
Ocean freight ships goods internationally via cargo ships, and is often used for large or heavy shipments.
Volume shipping is a pricing option for large shipments that do not fill a full truck but are too large for standard LTL pricing tiers.
Different types of freight require different types of equipment. This part of the shipping glossary outlines the most common trailer types used in temperature-controlled freight, standard shipping, and specialized transport.
A dry van is an enclosed trailer used for general freight that does not require temperature control.
A flatbed is an open trailer used for oversized or heavy freight that cannot be loaded into a standard trailer.
A food-grade trailer that meets sanitary standards for transporting food products.
A flat platform used to stack and transport goods, making freight easier to handle, store, and ship efficiently.
A refrigerated or “reefer” trailer is temperature-controlled and used for perishable or sensitive goods.
A trailer with a lower deck height, allowing for taller cargo.
A vented van is a trailer with ventilation openings used for freight that needs airflow but not refrigeration.
Understanding pricing is key to managing transportation costs. These freight shipping terms and definitions explain how LTL freight rates, fuel surcharges, and other pricing components are calculated.
A pricing method based on cost per 100 pounds of freight.
The process of reviewing shipping invoices to verify accuracy and identify billing errors or discrepancies.
A standardized classification system (NMFC) used in LTL shipping to determine pricing based on density, handling, and liability.
A tool used to determine freight class based on density, weight, and dimensions, helping improve accuracy in LTL rate quotes.
The cost charged by a carrier to transport goods.
An estimate of shipping costs based on shipment details.
When a carrier adjusts the freight class after inspection due to incorrect weight, dimensions, or description. This often results in higher LTL shipping rates.
An additional fee applied to account for fluctuations in fuel prices.
The base transportation charge for moving freight between origin and destination, excluding accessorial fees and surcharges.
The lowest rate a carrier will charge for a shipment, regardless of size or weight. NMFC (National Motor Freight Classification) A standardized system used to classify freight for LTL shipping based on density, handling, stowability, and liability.
A request for a refund when a shipper believes they were incorrectly charged due to errors in rates, weight, or classification.
A published list of rates, charges, and rules that a carrier applies to shipments
Many shipments require additional services beyond standard transportation. This section of the
glossary of shipping terms explains common delivery-related services that can impact both cost
and transit time.
A blind shipment is a shipment where either the shipper's or consignee's information is concealed for privacy or business reasons.
A third-party carrier that is used to complete pickup or delivery in areas not directly serviced by the primary carrier.
Drop and hook trucking, also called “drop trailer” or “no-touch freight,” is a service in which a trailer is dropped off at a facility for loading or unloading at a later time.
Final-mile, or last-mile, delivery is the last step in the delivery process, where a shipment travels from a distribution center to the end customer.
Inside delivery is a delivery service that moves freight beyond the loading dock and into a building.
Liftgate delivery is an optional service in which trucks are equipped with a lift gate to assist with loading and unloading freight. This option is often used by businesses that don’t have a loading dock.
Limited access locations are delivery locations that are difficult for trucks to access, such as schools, construction sites, or rural areas. Shipping to these locations often results in extra fees.
The process of properly securing freight within a trailer to prevent shifting, damage, or safety risks during transit.
Delivery to a home or residential address, which often requires additional services.
White glove delivery is a premium service that includes inside delivery, setup, and sometimes installation.
Shipping freight involves more than just moving goods. It also requires proper documentation, understanding billing, and regulatory compliance. These freight and shipping terms explain the key documents and roles involved in managing shipments.
Customs clearance is the process of approving goods for import or export through customs authorities.
A document signed at delivery that confirms the condition and receipt of the shipment. It serves as proof of delivery.
A document that outlines shipment details, including freight description, weight, charges, and whether payment is prepaid, collect, or third-party.
A freight claim is a request for compensation due to freight loss or damage that occurred while the shipment was in transit.
Hazardous materials (hazmat) are substances that pose a risk to health, safety, or property during transport and require special handling, labeling, and documentation.
The agreed method of payment for a shipment, typically prepaid (shipper pays), collect (receiver pays), or third-party billing.
A progressive rotating order (PRO) number is a unique tracking number assigned to an LTL shipment, used to identify and track freight throughout transit.
Proof of delivery (POD) is a document confirming that a shipment was delivered and received.
All paperwork associated with a shipment, including the bill of lading, invoices, and delivery receipts.
Freight shipping is just one part of a larger supply chain. This section of the freight glossary covers broader logistics concepts that impact how goods are stored, managed, and delivered.
A third-party logistics provider (3PL) is a company that manages transportation, warehousing, and logistics services on behalf of businesses.
A return trip where a carrier transports freight after completing a delivery.
Breakbulk is the system of transporting goods in pieces separately, rather than being shipped in a container. Breakbulk goods are often shipped in crates, bags, boxes, drums, or barrels.
Cold chain logistics is a supply chain that maintains consistent temperature control for sensitive goods.
A facility used to store and distribute goods to customers or retail locations.
Freight consolidation combines multiple shipments into a single load to reduce transportation costs and improve efficiency.
A commonly traveled route between two locations. High-volume freight lanes often offer more competitive LTL shipping rates.
Just-in-time (JIT) is an inventory strategy that minimizes storage by receiving goods only as needed.
The coordination of production, storage, and transportation of goods.
A facility where freight is transferred, sorted, and routed between carriers during transit.
The total time it takes for a shipment to move from origin to destination.
Some shipments require additional care. This could be due to where they’re being shipped, their size, their value, or whether they contain sensitive materials. These freight shipping terms definitions focus on specialized freight types, including temperature-controlled freight shipping, cross-border shipping, and high-risk cargo.
Cross-border shipping is the movement of freight between countries, such as shipments between the U.S., Mexico, and Canada. This process involves customs documentation, regulatory compliance, and coordination between carriers and border authorities.
Fine art shipping is the transportation of high-value and delicate items such as paintings, sculptures, and collectibles using specialized packing, handling, and climate-controlled transport. These shipments often require custom crating and careful coordination to prevent damage.
Freeze protection services are designed to prevent freight from freezing in cold conditions.
Goods that require additional security due to their value.
Oversized freight is cargo that exceeds standard size or weight limits.
Perishable goods are products that can spoil or degrade quickly, such as food or pharmaceuticals.
Temperature-controlled freight must be kept within a specific temperature range during transport.
Understanding key freight shipping terms and definitions helps businesses make better decisions, avoid expensive mistakes, and improve supply chain efficiency. From selecting the right shipping method to understanding pricing and extra charges, having a clear grasp of logistics terminology is essential.
At DTS, we work closely with businesses to simplify freight management, provide expert guidance, and ensure shipments move efficiently from origin to destination. Get in touch with DTS today for support with your shipping strategy and the best options for your business.
Whether you're a company looking to improve one facet of your supply chain, your entire supply chain, or simply looking for a transportation and logistics consultation, we can help.
Whether you're a company looking to improve one facet of your supply chain, your entire supply chain, or simply looking for a transportation and logistics consultation, we can help.
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