Logistics & Transportation Glossary

on 27 November 2024. Posted in Logistics & Transportation Engineering

See Articles - List of Tags, List of Categories, List of Articles, List of Glossaries, Nomenclature and Symbols

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Accessibility - The ease of reaching or obtaining goods, services, or information, often associated with physical or digital infrastructure and availability.
Accessorial Charges - Extra charges applied for services performed above what is considered standard.
Accessorial Services - Service performed in addition to the normal transportation service.
Advanced Planning and Scheduling (APS) - Critical supply chain planning that also accounts for production schedules. Typically, it accounts for the planning of demand, production, distribution, and transportation.
Accessorial Charges - Fees added to a freight bill for additional services that the carrier might provide. These are a la carte, or per service, and outside of standard shipping and receiving. Things like liftgate requirements, redeliveries, and reclassifications are typical accessorial charges.
Agent - When one party is authorized to transact certain business for the other.
Aggregate Shipment - A shipment consisting of multiple individual orders or items consolidated together for transportation as a single unit, often used to achieve economies of scale or reduce costs.
Airbill - A shipping document used by carriers and indirect carriers for airfreight. It contains shipping instructions, a description of the commodity and applicable transportation charges.
Air Brakes - Heavy trucks use air brakes exclusively to stop the rig. When the brakes are applied, air enters the brake chamber. The air forces a push rod out, turning a slack adjuster that rotates an “S” cam. This in turn forces the brake shoes against the drum, which applies the friction required to slow or stop the truck.
All In - A pricing term indicating that the quoted or agreed-upon rate includes all charges, fees, and costs associated with a shipment or service.
All-Cargo Air Service - The carriage of only cargo in an aircraft, rather than the combination of passengers and cargo.
Alternative Rates - Different rates or pricing options available for a service or shipment, often based on factors such as speed, transit time, or service level.
Application Programming Interface (API) - A digital program that allows for data exchange between two or more applications via the cloud.
Arbitrary - A term used in freight transportation to describe a fixed or predetermined charge, rate, or fee that is not based on actual costs or market conditions.
Assemble to Order - A manufacturing or production strategy where products are not produced until a customer order is received, allowing for customization or configuration based on specific customer requirements.
Assembly - Also known as kitting, assembly is the process of packaging bulk components into finished goods at a warehouse or an outsource facility. The product’s components are picked and inserted into end-use packaging.
Asset-Based Provider - A carrier that actually has the assets (trucks, terminals, warehouses, etc.) to provide physical pickup, line-haul and delivery service.
Audit - In logistics, an audit is the process of examining, adjusting, and verifying freight bills for accuracy.

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Backfilling - The process of refilling or replacing excavated or removed materials, such as soil, rock, or waste, to restore or stabilize a site or area.
Backhaul - A return trip that a truck driver makes after delivering a load to a destination. The backhaul helps to reduce the cost of transportation by allowing the driver to carry another load or cargo on their return trip.
Backorder - A backorder occurs when a customer places an order for a product that is not currently in stock. The product is promised for delivery once inventory is replenished. Backorders allow businesses to maintain sales even when inventory is temporarily unavailable, but they may result in longer delivery times for customers.
Bar Coding - The use of printed barcodes consisting of parallel lines and numbers to encode and represent data for quick and accurate scanning and identification of products, assets, or shipments.
Barrier to Entry - Any obstacle or restriction that makes it difficult for new competitors to enter a market or industry, such as high costs, regulations, or brand loyalty.
Base Rate - The basic rate that a carrier charges for shipping goods from one location to another. The base rate does not include any additional fees or charges that may apply.
Benchmark - In logistics, benchmarks refer to KPI thresholds set by an organization to measure supply chain performance.
Bill of Lading (BOL) - A legally binding document between a shipper and carrier that details all the information needed to process a freight shipment.
Bill of Sale - A legal document that serves as proof of the transfer or sale of ownership of goods, assets, or property from one party to another.
Billed Weight - The weight used for calculating shipping charges, which may be based on the actual weight of the shipment or a dimensional weight calculation.
Booking Number - A unique identifier or reference number assigned to a booking or reservation to track and identify the associated shipment or service.
Bonded Cargo - In-bond cargo is cargo that is being transported under bond or security from one point to another within a country or across international borders. This means that the cargo is not cleared by customs at the point of entry but is transported under bond to an approved location where it will be cleared by customs.
Breakbulk - A method of transporting cargo that involves separating it into smaller units for loading and unloading. Breakbulk cargo is typically shipped in crates, barrels, or other containers that can be easily moved by hand.
Build to Order - A production or manufacturing strategy in which goods or products are made or assembled only after receiving customer orders, allowing for customization and reducing inventory costs.
Bulk Freight Rate - The transportation rate or charge applied to bulk cargo shipments, typically based on the weight, volume, or nature of the goods being transported.
Busway - Roads, or sections of roads, that are dedicated to public buses. Busways may contain tracks or grooves for guiding buses and restricting other traffic.
Buy-Sell Agreement - A legally binding contract or agreement between parties outlining the terms and conditions for the purchase or sale of goods, assets, or business interests.

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Cargo - Product carried during transportation.
Carousel - A type of automated material handling equipment generally used for high-volume, small-parts order-picking operations.
Carrier - An individual, partnership or corporation engaged in the business of transporting goods.
Certificate of Origin - Required by the customs broker to determine the correct rate of duty under the USMCA (United States-Mexico-Canada Agreement).
Carton Flow Rack - A storage rack system that uses inclined shelves or rollers to facilitate the movement and picking of goods or cartons by gravity.
Cash on Delivery (COD) - Refers to the payment for the goods being shipped. If this section of the Bill of Lading is filled in, the carrier cannot deliver the goods unless payment is collected at the time of delivery. This money is collected on behalf of the shipper.
Chain of Customers - The sequence or flow of customers involved in the supply chain, from the initial supplier of raw materials to the end consumer of finished goods.
Charter Service - The temporary hiring of an aircraft, usually on a trip-by-trip basis, for the movement of passengers or cargo.
City Dispatch - The part of the terminal operations charged with coordinating the pickup and delivery of shipments.
City Driver - A driver responsible for making pickups and deliveries from a specific terminal location. These drivers usually have a designated geographical operations area. A city driver typically makes deliveries in the morning and picks up freight in the afternoon.
City Loading Diagram - A form used by destination dock personnel to record each shipment on a city trailer as it is loaded. It must include the initials of each person loading the freight on the trailer. This form also includes such information as the date, trailer number, delivery area the P&D driver will be running, PRO number and the number of pieces in each shipment.
City Run (Pedal Run) - A route in which the driver stays within the boundaries serviced by the terminal.
Claim - A written request to a carrier from a shipper to be compensated for loss, damage, delay or overcharge of a package transported by that carrier.
Clearinghouse - An intermediary or central entity that facilitates the exchange, settlement, and clearing of financial transactions, documents, or information between multiple parties.
Collect (COL) - Freight charges to be paid by the consignee upon delivery or charged to their established account. Note that Estes no longer accepts cash.
Combination Aircraft - An aircraft capable of transporting both passengers and cargo on the same flight.
Commercial Invoice/Pro Forma - The bill of sale featuring all relevant shipping information such as payment terms, quantities, prices, discounts and a complete description of the shipment.
Common Carrier - Any person or company available to the general public for transportation of property by motor vehicle over regular or irregular routes in interstate and/or intrastate commerce.
Condition of Contract - The terms and conditions established by the carriers for the carriage of goods. The conditions are printed on the airbill.
Confirmed on Board - Verification from an airline that the freight on the bill in question has been physically loaded on an aircraft.
Connecting Line Load and Count (CLLC) - Freight being given to or received by an interline carrier without joint inspection.
Consignee - The designated recipient (customer) of a shipment as indicated on the Bill of Lading.
Consolidation - The act of combining multiple shipments into one larger shipment going to a specific destination.
Container - A trailer used by ocean carriers and rail. Containers are identified by four alpha characters, followed by a numerical code(s).
Container Grounding - This occurs when a container is placed on the ground as opposed to placing the container on a wheeled chassis. The container is generally stacked with other containers thereby creating an efficient use of space. The strategy can also be implemented when there is a shortage of chassis.
Containerization - The practice or technique of using a box-like or other device in which a number of packages are stored, protected and handled as a unit in transit.
Contract - A pricing program for a customer that must be approved and signed by an authorized representative of Estes Express Lines and signed by the customer. This pricing contract takes precedence over tariff rates.
Core Carrier - A transportation company that is designated as a preferred or primary carrier for a specific customer or shipping lane, often based on established service levels, rates, or contractual agreements.
Core Process - A fundamental or essential process within an organization that directly contributes to its core business objectives or value creation.
Cost Allocation - The process of assigning or distributing costs to specific products, departments, activities, or cost centers based on a predetermined method or allocation basis.
Cost Benefit Analysis - A systematic approach to evaluating the costs and benefits of a project, investment, or decision to determine its economic viability or desirability.
Cost of Capital - The weighted average cost of a company's debt and equity financing, representing the minimum return that investors and creditors expect for providing funds.
Cost Overrun - The excess of actual costs over budgeted or estimated costs for a project, activity, or task.
Country of Origin - The country in which a product or commodity is manufactured or produced.
Cross Docking - Typically, the action of unloading materials from an inbound trailer or rail car and immediately loading these materials in outbound trailers or rail cars, thus eliminating the need for warehousing/storage.
Cube - A term describing the space used in a trailer based on floor space and height.
Customer Order Number - The number used by the customer to identify the purchase of the goods.
Customs - The agency or procedure for collecting duties imposed by a nation on imports or exports.
Customs Broker - A company that clears freight through customs for an importer.
Customs Clearance - The act of obtaining permission to import merchandise from another country into the importing nation.
Cut-Off Time - The latest time or deadline by which certain activities or processes must be completed or submitted to meet specific requirements or schedules, often used in logistics or transportation to ensure timely processing and delivery.

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Damage - Goods that sustain injury before, during or after transit, which can result in the shipper’s, consignee’s or carrier’s liability.
Deadhead - A shipment from one terminal to another with no applicable freight charges. Also used to describe the return of an empty transportation container/trailer back to a terminal or facility (empty backhaul).
Delivery - The act of transferring freight from the carrier to the consignee.
Delivery Manifest - A listing of shipments loaded on a P&D unit for delivery.
Delivery Order - A document or instruction issued by the carrier or logistics provider to the consignee or recipient, authorizing the release or delivery of goods to the designated party.
Delivery Purpose Only (DPO) - Free astrays direct to consignees and/or designated salvage freight.
Delivery Receipt (DR) - A legal document signed by the consignee and Estes that completes the contract of carriage when the freight is received.
Demurrage - The detention of containers by the shippers or receivers of freight beyond the specified free time.
Department of Transportation (DOT) - The governing body for commerce that crosses state lines. Principally, this segment of the government regulates the interstate truck operations.
Destination Terminal (DT) - The terminal that will deliver the shipment within the geographical area that the terminal serves.
Direct Loading - The loading of shipments direct from one service center to another without an intermediate stop for rehandling.
Dispatch/Dispatcher - The scheduling and control of intercity traffic and intracity pickup and delivery; an individual tasked to assign available transportation loads to available drivers.
Disposition - Authorized instructions given to a common carrier regarding the movement of a shipment.
Distressed Freight - Any shipment that has a problem causing either a delay in delivery serviceor non-delivery.
Distribution Service - A service in which the carrier accepts one shipment from one shipper and, after transporting it as a single shipment, separates it into a number of parts at the destination and distributes them to many receivers.
Dock - A space used for receiving merchandise at a freight terminal.
Dock Personnel - Persons hired to load and unload freight from the trailers.
Dockage - Charges or fees imposed on vessels or ships for using or occupying a dock, pier, or port facility, typically based on the vessel's size, duration of stay, or services rendered.
Door to Door - A transportation or logistics service that covers the entire movement of goods or cargo from the shipper's or seller's location to the buyer's or consignee's location, providing a seamless and integrated delivery process.
Door to Port - A transportation or logistics service that involves the movement of goods or cargo from the shipper's or seller's location to a specified port of destination, where the responsibility for further transportation or clearance transfers to the buyer or consignee.
Drop and Hook - A method of delivery that involves dropping off one trailer and picking up another at the same location. This allows the driver to quickly exchange trailers without having to wait for the cargo to be loaded or unloaded. It is a common practice in the trucking industry and is often used for time-sensitive shipments.
Drop Trailer - A situation where the carrier spots or drops off a trailer at the customer’s location for loading and/or unloading of freight without the carrier’s driver being present.
Drop Trailer Agreement - A mutual agreement in writing between the customer and Estes when a trailer is spotted for loading and/or unloading purposes.
Dry Run - An attempt to pick up or deliver goods to a consignee or designated pick up or return location where the goods cannot be delivered or picked up. This is usually followed by an accessorial fee for the attempt.
Dry Van - A type of trailer that is enclosed and used to transport dry goods. These trailers are typically used for shipping non-perishable items, such as furniture, electronics, and clothing.
Dunnage - Items such as scrap pallets or cardboard used to secure freight by filling in the spaces between boxes.
Duty - The tax imposed by a government on merchandise imported from another country.

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Eighteen Wheeler - Generally, a rig with 18 wheels. Some rigs can now have 26 or 34 wheels.
Employer Identification Number (EIN) - Also known as a Federal Tax Identification Number, the EIN is used to identify a business entity.
Empties - Trailers without freight.
En Route - On the way to the destination.
Exclusive Use - Full use of a carrier’s trailer by one customer. No other customer’s freight is allowed on the trailer.
Exempt Carrier - A transportation carrier that is exempt from certain regulations, requirements, or taxes based on specific criteria or circumstances, such as carriers transporting only exempt goods, operating within limited geographic areas, or meeting certain size or weight restrictions.
Expedite - Rush handling of a shipment.
Export - To send goods to a foreign country or overseas territory.
Export Broker - One who brings together the exporter and importer for a fee and then withdraws from the transaction.
Export License - A governmental permit required to export certain products to certain destinations.

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Federal Aviation Administration (FAA) - Charged with the responsibility of proclaiming operational standards and procedures for all classes of aviation in the United States.
Federal Motor Carrier Safety Administration (FMCSA) - Its primary mission is to reduce crashes, injuries, and fatalities involving large trucks and buses.
First-in-First-Out (FIFO) - In warehousing, this describes the method of rotating inventory to use the oldest product first.
Fifth Wheel - A coupling device mounted to a tractor or a dolly that connects a semi-trailer and a tractor, or two semi-trailers. A semi-truck trailer is supported at the rear by its own wheels, and at the front by the fifth wheel, which is mounted to a tractor or dolly.
Fill Rate - A sales order processing measurement that quantifies the ability to fill orders.
Flat Car - A rail freight car with no supporting structure above the load deck, except for bulkheads at the ends of the car on some types.
Forty-Foot Equivalent Unit (FEU) - Two 20-foot containers or one 40-foot container equals an FEU.
Free Astray - A bill moving in the Estes system with no freight charges attached. This can be either a DPO (direct to consignee or designated salvage) or NOC (intra-company business only), depending on the circumstances.
Free on Board (FOB) - The point at which the title of the goods passes from the shipper to the consignee.
Free Time - The amount of time that a carrier’s equipment may be used without incurring additional charges.
Freight All Kinds (FAK) - A tariff classification for various kinds of goods that are pooled and shipped together at one freight rate.
Freight Broker - An intermediary who connects shippers with carriers to transport goods. Freight brokers help to coordinate the transportation process, negotiate rates, and ensure that the shipment is delivered on time and in good condition.
Freight Charge - Payment due for freight transportation.
Freight Forwarder - The company authorized by a shipper to perform the services required to facilitate the export of items from the United States. This may include air couriers or carriers.
Fuel Surcharge (FSC) - An additional charge added to the freight bill for the price of fuel (per the National Fuel Index) to offset the high cost of fuel.
Fulfillment - A process that supplies a finished manufactured product directly from a manufacturing facility to a distributor or end user. The fulfillment cycle may include receiving customer orders, configuring the products to order, shipping and invoicing products to distribution outlets or end users.
Full Container Load (FCL) - The most common types of containers are 20′, 40′ and 40′ “High-Cube” containers.
Full Trailer - A truck trailer with wheels on both ends (as compared to a semitrailer in which the front rests on the rear of the power unit).
Full Visible Capacity - The quantity of freight that equals the maximum legal load-carrying capacity of the vehicle authorized by law, or the quantity of freight that fills a standard truck so that no additional articles identical in size to the largest article in the shipment can be loaded in or on the truck.

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Gaylord - The trade name for a large, reusable, standard-sized corrugated container used for shipping materials.
Gross Weight - The entire weight of a shipment including containers and packaging materials.

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Hand Truck - A manual device used to move piece goods, cartons and appliances. It usually has two wheels.
Hazardous Materials (Hazmat) - The Transportation Safety Act of 1974 defines hazardous material as “a substance or material in quantity and form which may pose an unreasonable risk to health and safety or property when transported in commerce.”
Hazmat Regulations - Standards set by the Research and Special Programs Administration (RSPA) Office of Hazardous Materials Transportation (OHMT) that regulates how hazardous materials are shipped.
Head Haul - The term used to define the highest revenue-generating shipping lane from shipper to consignee. Opposite of backhaul.
Head Load - The first load used to start a trailer.
High Value Freight - Freight with a value exceeding the limitations set in the EXLA 105 series rules tariff.
Hostler - An individual employed to move trucks and trailers within a terminal or warehouse yard area.
Hot Hatch - A term used in the logistics industry to describe a shipment that requires urgent and expedited delivery. Hot hatch shipments are typically time sensitive and require special handling and transportation. In ocean shipping, a Hot Hatch container is stowed as close to the first unloading position as possible to expedite the container becoming available for grounding and transport.
Hours of Service (HOS) - A ruling that stipulates the amount of time a driver is allowed to work, enforced by the Federal Motor Carrier Safety Administration. On January 4, 2004, the HOS rule was changed from a driver being allowed to drive for 10 hours and break for eight consecutive hours, with 15 hours on duty in a day, to the current rule of driving for 11 hours and breaking for 10 consecutive hours, with 14 hours on duty.
House Air Waybill (HAWB) - A shipper-to-consignee air waybill. The forwarding agent’s air waybill; not valid for transportation for the carrier. HAWB conditions are contracted between the agent and the shipper and do not concern the carrier.
Hub - The consolidation of freight at several terminals to build full loads that focus mainly on shorter haul (next-day) lanes.
Hub Terminal - Terminals that offer next-day service to specific geographical regions.

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Image - A visual impression of a document such as a Bill of Lading and/or a delivery receipt.
Import - To bring merchandise into a country from another country or overseas territory.
Import License - A governmental document that permits the importation of a product or material into a country where such licenses are necessary.
Inbound - Freight moving toward a terminal.
Incoterm - A codification of international rules for the uniform interpretation of common contract clauses in export/import transactions involving goods.
Independent Service Contract (ISC) - A contract between a carrier and a shipper that, if executed in trade from or to the United States, must be filed with the Federal Maritime Commission and must include port pairs, minimum quantity commitment, rate levees and duration.
Indirect Air Carrier (IAC) - Within the United States, any person or entity not in possession of an FAA air carrier operating certificate that undertakes to engage indirectly in air transportation of property and uses for all or any part of such transportation the services of a passenger air carrier.
Inland Charges - Shipments are subject to applicable class rates, discounts, individual tariffs or contracts from the point of origin to the Estes consolidation terminal.
Inside Pickup and Delivery Service - Pickup or delivery service to locations other than the shipping dock.
Inspection - An examination to ascertain the quality, authenticity or conditions of an item or product.
Intact - To keep the shipment whole and/or undisturbed by shrink-wrap, banding, plastic straps or gaylords.
Interline Agreement - An arrangement between two or more road transport companies joining operations to bring cargo to a certain destination.
Interline Carrier - A carrier with whom another carrier has an interline agreement.
Intermodal - Relating to transportation by more than one means of conveyance.
Interregional - A haul between any of the four direct Estes regions of less than 1,200 miles.
Interstate - Freight moving between states.
In-Transit Upgrade - The act of expediting LTL shipments to the Estes Air division while en route.
Intraregional - A haul moving within a region.
Intrastate - Freight moving within a state.
Inventory Management - The direction and control of activities that ensure the requirements for place, time, quantity, form and cost are all met.
Inventory Turns - A key performance indicator that measures how frequently a company's inventory is sold and replaced over a given period. It is calculated by dividing the total throughput (the sum of inventory received and shipped) by the average inventory on hand. A higher number of inventory turns indicates that inventory is being efficiently managed and replenished regularly, leading to reduced storage costs.
Inventory Turn Rate - The inventory turn rate is a specific measure of how often inventory is replaced over a given period, typically calculated annually. It is determined by dividing the total amount of inventory shipped over the year by the average inventory on hand. A higher turn rate suggests more efficient inventory management and can help reduce storage costs, as items that turn over faster spend less time in storage.

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Jettison - The act of intentionally throwing or discarding goods or cargo from a ship or aircraft, usually to lighten the load and improve safety in emergency situations or to meet weight restrictions.
Jointline - Any shipment involving more than one carrier.
Joint Rate - A transportation rate or charge that applies to the combined shipment of multiple goods or products by the same carrier or transportation service provider.
Just-in-Time (JIT) - An inventory control system that manages material flow into assembly and manufacturing plants by coordinating demand and supply to the point where desired materials arrive just in time for use.

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Key Performance Indicator (KPI) - In logistics, KPIs are critical metrics that highlight the performance of your supply chain.
King Pin - A large steel pin located beneath the front of a trailer. The king pin fits down into the jaws on the fifth wheel of a tractor or a dolly, thereby hooking the tractor up to the trailer or the pup up to the first trailer.

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Lading - A term referring to the act of loading or the items loaded onto a vehicle, typically used in the context of shipping and transportation.
Lead Time - The time between an order being placed and the time it needs to be shipped.
Left on Board (LOB) - Freight that has not been worked or taken off a trailer.
Legal Holidays - Any national, state, provincial or local legal holiday.
Less-Than-Truckload (LTL) - Less than a truckload.
Lift Gate - A power-operated tailgate capable of lifting a load from street level to the level of a truck or trailer floor or vice versa.
Line-haul - The movement of freight over the road/rail from the origin terminal to the destination terminal, usually over long distances.
Load Bars - Removable metal bars used to brace freight inside the trailer.
Load Factor - A measure of the utilization or occupancy level of a transportation vehicle or mode, typically expressed as a percentage of available capacity filled with cargo or passengers.
Load Lock - A device used to secure and brace freight in a trailer.
Load Rack - Racks used like shelves in a trailer to add an additional layer of loading space.
Local Pedal Run - A trailer loaded with numerous shipments that are to be delivered within the geographical area that a terminal services.
Locator System - Inventory tracking systems that allow you to assign locations to your inventory to facilitate greater tracking and the ability to store product randomly. By using locator systems, you can increase space utilization by matching the physical characteristics of your product to a location whose physical characteristics meet those specified.
Log - A driver’s record of duty for hours of service.
Logbook - A record or document used to track and document important information or activities related to a specific process, operation, or vehicle, often used in transportation and shipping for recording details such as mileage, fuel consumption, maintenance, and compliance.
Logistics - All activities involved in the management of product movement, including delivering the right product from the right origin to the right destination, with the right quality and quantity, at the optimal schedule and price.
Logistics Channel - The network or pathway through which goods, services, and information flow within a logistics system, involving various entities, such as suppliers, manufacturers, distributors, retailers, and customers.
Logistics Costs - The expenses incurred in the management and operation of logistics activities, including transportation costs, inventory carrying costs, warehousing costs, packaging costs, and other related expenses.
Logistics Management - The process of planning, coordinating, and controlling the movement and storage of goods, services, and information within a supply chain or logistics network to meet customer requirements.
Logistics Post Trailers - Trailers with slotted posts for attaching load beams for stacking and bracing to provide optimal freight protection.
Long-nose Conventional - A truck or tractor with a front bumper to back of cab dimensions of 112″ or more.
Lot Labels - Labels attached to each piece of a multiple-lot shipment for identification purposes.
Lowboy (Low-Bed Trailer) - An open truck trailer with a low platform height. It's designed for hauling heavy equipment.

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Make to Order (Manufacture to Order) - A manufacturing approach where products are produced or manufactured based on specific customer orders or demand, rather than being produced in advance and stocked as finished goods.
Make to Stock (Manufacture to Stock) - A manufacturing approach where products are produced or manufactured based on forecasts or anticipated demand and stocked as finished goods before customer orders are received.
Manifest - A document that lists and describes in detail the goods on a vehicle's load. As a rule, agents at the place of loading draw up the manifest. Also referred to as the shipping document.
Manufacture Cycle Time - The total time required to complete the manufacturing process for a product, from the start of production to the availability of finished goods for shipment.
Manufacturing Lead Time - The total time required to complete the manufacturing process, including order processing, production, and any necessary waiting or setup times, before products are ready for delivery.
Maquiladora Transportation - A program allowing foreign manufacturers to ship components into Mexico duty-free for assembly and subsequent re-export.
Master Air Waybill (MAWB) - A shipper-to-carrier air waybill that outlines the conditions between the forwarding agent and the transportation carrier.
Material Safety Data Sheets (MSDS) - A document prepared by the manufacturer that provides detailed information on hazardous and nonhazardous materials, including potential hazardous effects, their physical and chemical characteristics, recommendations for appropriate protective measures, plus cleanup and disposal methods.
Maximum Charge - The highest amount of freight and/or accessorial charges Estes will bill the customer.
Milk Run - A pickup and/or delivery route involving several sequential stops. It usually refers to a regularly-run route, but it may also refer to a one-time run with several stops. Some consider a milk run to mean a route where shipments are delivered and inbound materials are picked up in the same run. Also known as dedicated delivery.
Minimum Charge - The least amount of freight and/or accessorial charges Estes will bill the customer.
Moffit - A forklift attached to the back of a trailer to accomplish a ground drop.

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National Fuel Index - Fuel surcharges are generally based on the National Fuel Index published by the U.S. Department of Energy every Monday. The index is based on several factors, including the average fuel costs by region. Whenever the cost of fuel exceeds a base range established by a carrier, a fuel surcharge may be added to base freight charges (before any accessorial charges).
National Motor Freight Classification (NMFC) - The NMFC item number is assigned according to commodity type and is used by LTL carriers to determine the level of rates for a shipment.
North American Free Trade Agreement (NAFTA) - An agreement for free trade between the United States, Canada, and Mexico that was effective from 1994 to 2020; this has been replaced by the USMCA (United States-Mexico-Canada Agreement).
Not Otherwise Indicated (NOI) - The abbreviation used for chemicals that are either mixtures of hazardous materials or possibly new hazardous materials that have not been given their own proper shipping name. Also referred to as NOS (Not Otherwise Specified).
Non-Asset-Based Provider - A provider that does not have the assets (trucks, terminals, planes or warehouses) of a carrier. The non-asset provider supplies the Bill of Lading and assumes responsibility for a shipment, but uses the resources of asset-based carriers to provide physical pickup, line-haul and delivery service.
Non-Resident Importer (NRI) - A company or individual that, in most cases, doesn't have a physical presence in Canada, but for the purposes of customs and taxation, it acts as the importer of record for goods sold or consigned into Canada from the U.S.
Nose - The front of the trailer closest to the tractor.
Non-Vessel Operating Common Carrier (NVOCC) - A firm that offers the same services as an ocean carrier, but which does not own or operate a vessel. NVOCCs usually act as consolidators, accepting small shipments (LCL) and consolidating them into full container loads. They then act as shippers, tendering the containers to ocean common carriers. NVOCCs are required to file tariffs with the Federal Maritime Commission and are subject to the same laws and statutes that apply to primary common carriers.

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Obsolete Inventory - Inventory that is no longer usable or saleable due to obsolescence or expiration.
Ocean Bill of Lading - A legal document issued by an ocean carrier to acknowledge receipt of goods and the contract of carriage of goods by sea. The bill of lading serves as evidence of ownership of the cargo and contains information such as the shipper and consignee's name and address, the description of the goods, the date and place of loading, and the port of discharge.
Ocean Charges - Charges that cover transport from the mainland terminal to the destination terminal after the water portion of the journey. They include accessorial fees such as drayage, wharfage and terminal handling charges.
Ocean Container - A single, rigid, sealed, reusable metal box in which merchandise is shipped by a vessel, truck or rail.
Official Airline Guide (OAG) - A standard book or computer disk that references flight schedules, rates and aircraft types.
On-Hand - A shipment that has been refused by the consignee for which a legal notice of undelivered freight has been mailed to the shipper.
One-Piece Flow - A lean manufacturing concept where each unit of a product moves through the production process individually and continuously, minimizing inventory and reducing waste.
Optimization - The process of maximizing efficiency, effectiveness, or performance by selecting the best possible option or configuration from available alternatives.
Order Cycle - The time it takes from the placement of an order until the receipt of the ordered goods or services.
Order Cycle Time - The total time required to complete an order cycle, including order placement, processing, and delivery.
Order Picking - The process of selecting and collecting items from inventory to fulfill a customer order.
Order Processing - The activities involved in receiving, reviewing, and validating customer orders, including order entry, verification, and documentation.
Overages, Shortages and Damages (OS&D) - Freight that is either in excess of or less than that identified on the freight bill, or goods that have sustained injury before, during or after transit.
Outbound - Freight on a trailer that's moving out from a terminal.
Out-of-Pocket Cost - The actual expenses incurred by a company or individual for a specific activity or transaction, typically excluding overhead or indirect costs.
Overage - A situation where there is more freight than is specified on the freight bill.
Overflow - Added freight that, due to capacity, could not be loaded with the rest of the shipment in the original load.
Owner-Operator - A truck driver who owns and operates their own truck. Owner-operators may contract with carriers to transport goods, or they may operate as independent contractors.

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Packing List or Packing Slip (PSA) - A document provided by the shipper that travels with the freight and usually lists the contents of the shipment. It may be attached to the freight and/or the Bill of Lading or sent with the shipment as an additional piece of freight.
Pallet - A wooden frame, typically 48″ × 48″ used for unitizing freight.
Pallet Jack - A manual device with fork extensions that can be positioned under a pallet to move it from one location to another.
Palletized Freight - Freight that is being shipped on a pallet.
Payload - The total weight of the commodity carried on a truck at a given time, including packaging, banding, etc.
Perishables - Any goods transported that are subject to deterioration or spoiling if not used for their intended purpose within time restraints.
Pick and Pack - A process, usually done in a warehouse facility, wherein a company or third party organization (usually from a warehouse facility) accepts retail orders, picks products from inventory, packs them and then ships them to an end user.
Pick Up - The act of transferring freight from the shipper to the carrier, ultimately delivering the freight to the consignee.
Pick Up and Delivery (P&D) - This is the local movement of freight between the shipper and the origin terminal or between the destination terminal and the consignee (or delivery point).
Piggyback - A rail/truck combination service wherein 1) a shipper loads a highway trailer, 2) a carrier drives it to a rail terminal to load it on a flatcar, 3) the railroad moves the trailer-on-flatcar combination to the destination terminal, and 4) the carrier offloads the trailer and delivers it to the consignee.
Pigtail - A cable used to transmit electrical power from the tractor to the trailer.
Pintle Hook - A coupling device used in double-trailer, triple-trailer and truck-trailer combinations. It has a curved, fixed towing horn and an upper latch that opens to accept the drawbar eye of a trailer or dolly.
Placards - The square-on-point symbol on each side of the trailer signifying the hazardous materials loaded on the trailer.
Point of Origin - The terminal at which freight is received from the shipper.
Pool Distribution - To help avoid excessive offloads, multiple LTL shipments headed for a common marketplace are combined onto one trailer. The freight is then delivered to a central distribution facility for local or short-route delivery. This generally reduces handling, lowers costs and shortens transit times.
Prepaid (PPD) - Freight charges that have been or will be paid by the shipper and/or a third party.
Private Residence - Any house, apartment, barracks or dormitory serving as the living quarters of the shipper or the consignee.
PRO Labels - Self-adhesive stickers used to identify shipments. They are placed on the customer’s Bill of Lading, the freight bill and the freight itself.
PRO Number (Progressive Rotating Order) - A pre-assigned, 10-digit freight bill number given to each shipment to serve as a tracking number.
Proof of Delivery (POD) - Information supplied by the carrier containing the name of the person who signed for the shipment, the time and date of delivery, and other shipment delivery-related information.
Pup - A 28-foot trailer.
Purchased Transportation - Any transportation service that a carrier needs for its operations that it does not perform itself or that another carrier can perform in a less costly manner.
Putaway - Putaway is the process of moving inventory from the receiving area to its designated storage location in a warehouse. This step occurs after goods are unloaded from incoming shipments and ensures that products are properly organized and stored for easy retrieval when needed for order fulfillment.

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Quality Control - The process of ensuring that products or services meet specified quality standards through inspection, testing, and corrective actions, thereby minimizing defects or deviations from desired outcomes.

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Ramp-to-Door - A transportation service or delivery method where goods are transported from a ramp or facility directly to a customer's door or location.
Ramp-to-Ramp - A transportation service or delivery method where goods are transported between two ramps or facilities without direct involvement in the door-to-door delivery.
Rapid Clear Form - This form allows you to reduce the amount of paperwork involved in crossborder shipping since it replaces the need to complete the Bill of Lading, Commercial Invoice and Certificate of Origin.
Rates - The basic cost of a shipment, excluding accessorial charges.
Real-Time - In logistics, this term refers to a shipper’s ability to track an order as it progresses from origin to destination.
Reconsignment - Any changes made in the consignment of a shipment before delivery is accomplished.
Recovery Drum - An oversized container in which a damaged shipping container can be placed to contain leaks. It can be either plastic or metal.
Redelivery - An attempt to deliver the freight back to the consignee after the freight was originally refused.
Refusal - Freight for which delivery was attempted, but the consignee was not willing to accept the goods for a number of potential reasons.
Request Number - A reference number given to the customer by the time-critical team when they request a time-critical shipment. It's the number used to identify the request in the system throughout the shipping process.
Restack - The process of rearranging or reorganizing pallets or containers of goods within a warehouse. This may be necessary to maximize space utilization, consolidate partially filled pallets, or prepare products for shipment.
Restricted Articles - Articles that in certain forms are either excluded entirely from air cargo, or are subject to stringent requirements on volume or packaging.
Return Disposal Costs - The expenses associated with the disposal or management of returned goods or products that cannot be resold or reused.
Return Goods Handling - The processes and activities involved in managing returned goods, including inspection, sorting, restocking, or disposition.
Return to Shipper (RTS) - A shipment being sent back to the shipper with or without freight and accessorial charges.
Return to Vendor (RTV) - The process of returning goods or products back to the original supplier or vendor for various reasons, such as defects, quality issues, or excess inventory.
Reverse Logistics - Sometimes called returns, the service that enables end users to reposition used, damaged or outdated products or reusable packaging. These items are retrieved from end users, consolidated and delivered back to the requestor’s centralized receiving locations.
Road Driver - A driver that does not usually perform the final delivery of the freight. Instead, road drivers haul the freight from terminal to terminal, generally during the night.
Roll On-roll Off (RO-RO) - A sea-going vessel designed to carry wheeled cargo including freight semi-trailers. Built-in ramps allow the cargo to efficiently roll on and off the vessel when in port, resulting in reduced handling.

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Safety Stock - A quantity of inventory used in inventory management systems to allow for deviations in demand or supply.
Salvage - The portion of damaged goods or property that has been saved or recovered.
Screen Shot - A saved image of a particular screen viewed on the computer.
Seal Intact - An unbroken seal placed on a trailer door.
Seals and Locks - Devices designed to ensure the security and contents of a trailer. Seals are metal self-locking strips with numbers that match the numbers on the manifest. They must be broken in order to access the contents of the trailer.
Seasonality - The regular and predictable pattern of fluctuations in demand or sales volume that occurs in certain industries or products due to seasonal variations or factors.
Self Billing - A process where a customer creates and issues invoices to the supplier based on the agreed transaction details, eliminating the need for the supplier to generate invoices.
Semi - A truck trailer with no front-end axle. A king pin underneath the front end of the trailer attaches to a fifth wheel allowing that end of the trailer to rest on a tractor or a dolly. It's supported at the rear by its own wheels.
Shipment - A single consignment of one or more pieces from one shipper at one address. Shipments are signed for in one lot and move on one waybill or airbill to one receiver at one destination.
Shipper - The person/company that gives the shipment to the carrier for delivery to the consignee; the person/company shipping the freight.
Shipper’s Load and Count (SLC) - The standard Bill of Lading and manifest clause used by mutual agreement of both shipper and carrier for containerized cargo that's loaded and sealed by the shipper. As a result, the piece count in the container is not checked or otherwise verified by the carrier.
Shipper’s Load and Count Agreement - A mutual agreement in writing between the shipper and the carrier. It's signed when a trailer is dropped for the shipper to load the freight without a driver being present.
Shipping Manifest System - Software used to associate shipments with a carrier, service or a rate. Shipping manifest systems produce reports (physical or electronic) sent to the carrier for billing purposes.
Shortage - A situation that occurs when a shipment has fewer pieces than called for on the freight bill.
Shrinkage - The loss or reduction in inventory levels due to theft, damage, spoilage, obsolescence, or other factors.
Sleeper - A truck tractor with a sleeping compartment in the cab.
Sleeper Teams - Two drivers who operate a truck equipped with a sleeper berth. While one driver sleeps in the berth to accumulate mandatory off-duty time, the other driver operates the vehicle.
Sliding Tandem (Slider) - A mechanism that allows a tandem axle suspension to be moved back and forth at the rear of a semi-trailer for adjusting the distribution of weight between the axles and fifth wheel.
Spot Market - The trucking market that exists for shipments with little lead time or notice.
Spot Market Rates - Rates at the present moment in the market.
Spotting - Placing a container in a required place for loading or unloading.
Spread Axle (Spread Tandem) - A tandem axle assembly spaced further apart than the standard spacing of 54 inches. The U.S. federal bridge formula favors trailer axles with an 8-or-9 foot spread by allowing higher weight than on tandems with standard spacing.
Stakeholders - Individuals, groups, or organizations that have a vested interest or are directly affected by the activities, decisions, or outcomes of a project, initiative, or business.
Stacker and Loading Diagram - A form used by origin dock personnel to record each shipment on a trailer as it's loaded for other destination terminals. It must include the initials of each person loading the freight on the trailer. This form also includes such information as the date, outbound trailer number, tractor number, destination terminal, destination relay and a place for the weight of each shipment signed on the trailer.
Stop-Offs - Truckload shipments with multiple stops delivered in sequence.
Storage Charges - Costs that begin to accrue after the shipper has been notified of nondelivery and has not provided disposition.
Straight Truck - A vehicle with a cargo body and cab mounted on the same chassis.
Stretch-Wrap - A protective layer of stretchy plastic wrapping, usually clear, used to hold cartons and products together in transit. It shrinks slightly after it's applied, and is commonly used to secure product to skids. Also known as shrink-wrap.
Stripping - The act of unloading a trailer.
Supply Chain - The organization of processes for moving goods from the order through the raw materials stage, assembly, supply, production and final distribution to the customer.
Supply Planning - The process of determining the optimal quantity, timing, and sourcing of materials or products to meet customer demand and achieve supply chain objectives.
Supply Warehouse - A facility or location where goods, materials, or products are stored, managed, and distributed within the supply chain.

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Tare Weight - The weight of a container and/or packing materials without the weight of the goods it contains (the actual weight of the empty container).
Tariff - Legally published rates and charges to price shipments. Tariffs also include packaging guidelines.
Terminal - A building for the handling and temporary storage of freight pending transfer between locations. Also, the area where containers are prepared for loading into a vessel, train, truck or airplane or are stacked immediately after unloading from the vessel, train, truck or airplane.
Third Party - The paying party other than the shipper or consignee. Terms can be prepaid or collect.
Tracking and Tracing - The combined process of monitoring and recording the movement and location of goods or shipments throughout the supply chain.
Tractor - The cab or the engine-powered vehicle used to pull a trailer.
Tractor Trailer - Tractor and semitrailer combination; a complete rig.
Traceability - To real-time or close to real-time location tracking.
Trailer - The part of the rig used to haul goods. A trailer is hooked to an engine-powered tractor.
Trailer Drop - Occurs when a driver leaves a full trailer at a facility to pick up an empty one.
Trailer Exception Report - A form used by the unloading terminal that alerts the shippers and/or carriers to any exceptions on freight picked up on a Shipper’s Load and Count basis. The report must be given to the shipper within 24 hours after the first break of a trailer.
Trailer on Flatcar (TOFC) - Trailers resting on railway flatcars without a chassis underneath.
Transportation Broker - A person whose business it is to prepare shipping and customs documents for international shipments. Brokers often have offices at major freight gateways, including border crossings, seaports and airports.
Transportation Security Administration (TSA) - A division of the U.S. Department of Homeland Security.
Travel Copies - The document that the drivers work off of. Also referred to as red copies, reds or working copies.
Truck Check Entry - A computer entry of detailed information on a shipment moving through the system.
Turnaround - The process or time required to unload, reload, service, or turn around a transportation vehicle or vessel for its next journey.
Twins/Doubles - Short semi-trailers (under 28′) designed to operate as part of a combination vehicle with a trailer of similar length. Or, the combination of a tractor and two semi-trailers connected in tandem by a converter dolly.

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Umbrella Rate - A comprehensive or all-inclusive rate that covers multiple services or components.
Undercharge - To charge less than the correct or agreed-upon amount for a product or service.
Unit Load - A consolidated load of goods or materials that is treated as a single unit for handling and transportation purposes.
Unknown Shipper - A shipper that can only move on the ground or on all-cargo airlines because it has not been approved as a known shipper.
Unloading - The process of removing goods or cargo from a vehicle, vessel, or container.
Unloading Manifest (Road) - A document that lists all the shipments on the trailer and is used by dock personnel in the unloading of freight. This document also records any exceptions off the trailer.
Unplanned Order - An order or demand that arises unexpectedly or outside of the regular planning or forecasting process.

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Value-Added Network (VAN) - A network or service provider that offers value-added services such as secure data transmission and electronic commerce capabilities.
Value Analysis - A systematic process of evaluating the components, functions, and costs of a product or service to identify areas for improvement and value enhancement.
Value Based Return (VPB) - A financial metric that measures the return on investment based on the value created or added by a project or initiative.
Value Chain Analysis - An evaluation of the activities, processes, and resources within a value chain to identify opportunities for cost reduction, efficiency improvement, and value creation.
Value-of-Service Pricing - A pricing strategy that sets prices based on the perceived value or benefits that customers derive from a product or service.
Van - A trailer with an enclosed cargo space.
Variable Cost - Costs that vary in direct proportion to the level of production or sales, such as raw materials or direct labor.
Vendor-Managed Inventory (VMI) - A supply chain management approach in which a vendor or supplier takes responsibility for managing and replenishing a customer's inventory.
Vendor-Owned Inventory (VOI) - Inventory that is owned and managed by a vendor or supplier but is located at the customer's premises or facility.
Ventilated Container - A container designed with openings or ventilation systems to allow the flow of air or prevent the buildup of moisture or condensation.

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Waiting Time - When a vehicle is held at a pickup or delivery site beyond the specified free time.
Wall-to-Wall Inventory - A comprehensive inventory count or assessment that includes all items or products within a specific location or facility.
Warehouse - A storage place for products. Principal warehouse activities include receipt of product, storage, order picking and shipment.
Warehouse Management System (WMS) - Computer software designed specifically for managing the movement and storage of materials throughout the warehouse.
Waybill - A document containing the description of the goods that constitute a single shipment. The waybill shows origin, destination, consignee/consignor and amount charged. Copies of this document travel with the goods and are retained by originating/delivering parties. Carriers use the waybill for internal records and control, especially during transit. It is not a transportation contract.
Weight and Inspection - A carrier’s internal inspection of goods shipped to determine the accuracy of the shipper’s description of the cargo’s weight, class and density.
Weight Break - Levels at which the airfreight rate per 100 pounds (CWT) decreases because of substantial increases in the shipment's weight.
Wharfage - A charge assessed by a pier or dock owner for handling incoming or outgoing cargo.
World Trade Organization (WTO) - An international organization that deals with the global rules of trade between nations and promotes free trade.

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Yard Jockey - A person who operates a yard tractor.
Yard Tractor (Yard Mule) - A special tractor used to move trailers around a terminal, warehouse or distribution center.

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Tags: Transportation Glossary

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