Familiarity with industry-specific terminology is essential for staying sharp in the competitive world of logistics and supply chain management. A solid understanding of industry-specific terms is not simply about boosting your vocabulary; it shapes the way you engage with clients, negotiate contracts, and implement strategic solutions. This is no exception for professionals working specifically in freight and transportation.

Freight logistics focuses on planning, managing, and executing the movement of large or heavy goods from one place to another. It involves all the processes, services, and coordination required to make sure freight travels safely, efficiently, and cost-effectively. Transportation refers to the method of movement of goods, which includes multiple modes such as road, rail, air, and sea. For individuals working in freight and transportation, understanding key terms is vital for professional success and the overall success of a business’s supply chain.

Below is a glossary of terms commonly used in transportation and freight to help you get started!

Accessorial Charges:

Additional fees for services beyond standard pick-up and delivery, such as liftgate service, inside delivery, or residential delivery.

Air Cargo:

Goods or freight transported by aircraft in shipments carried by dedicated cargo planes or in the cargo holds of passenger planes. Air cargo is commonly used for high-value, time-sensitive, or perishable goods that require fast delivery over long distances and plays a key role in the global supply chain.

Barge:

A flat-bottomed shipping vessel designed to carry freight on inland waterways such as rivers and canals.

Bill of Lading (BOL):

A legal document between a shipper and carrier detailing the type, quantity, and destination of the goods being transported.

Bulk Cargo:

Loose cargo that is transported unpackaged in large quantities without a specific item count. Bulk cargo is poured, scooped, pumped, or dumped directly into a vessel’s hold, railcar, or truck bed, instead of being packed in boxes, bags, or containers.

Cargo:

Goods or commodities transported by truck, train, ship, or aircraft.

Carrier:

A company or individual responsible for transporting goods, which can include trucking companies, airlines, and shipping lines.

Consignee:

The person or company to whom the shipment is delivered.

Consignor:

The person or company who ships the goods (the sender).

Container:

A standardized steel or aluminum box used to hold goods during intermodal transport.

Container Ship:

A large cargo vessel designed to carry standardized shipping containers in its holds and on its deck. These ships facilitate the efficient and high-volume transportation of goods across oceans in global trade.

Deadhead:

A truck operating without a load. For example, when a driver returns with an empty truck after a delivery.

Dedicated Fleet:

A solution where a carrier assigns part of its fleet exclusively to serve a single shipper or a specific set of routes for a contracted period.

Demurrage:

Fees charged when cargo stays at a terminal or port longer than the allowed time.

Detention:

Charges for extra time a driver spends waiting to be loaded or unloaded beyond the agreed free time.

DOT Number:

A unique identification number assigned by the U.S. Department of Transportation (DOT) through the Federal Motor Carrier Safety Administration (FMCSA) to act as an ID and record for commercial motor carrier vehicles.

Drayage:

The short-distance transport of goods, typically from a port, rail yard, or intermodal terminal to a nearby final destination such as a warehouse.

Drop Trailer:

A trailer dropped off at a shipper or consignee facility for loading/unloading at their convenience.

Freight Broker:

A freight broker acts as a middleman between shippers and carriers. Brokers typically receive a fee or commission by charging the shipper a rate, paying the carrier a portion of that rate, and retaining the difference.

Freight Class:

A standardized system used in the U.S. to categorize less-than-truckload (LTL) shipments for pricing and shipping purposes. It helps carriers, shippers, and brokers determine freight shipping costs based on four factors: density, stowability, handling, and liability.

Freight Forwarder:

A company that arranges shipments for individuals or corporations, often consolidating smaller shipments into larger loads.

Intermodal Transportation:

Using two or more modes of transport (e.g., truck and rail) to move goods.

POD (Proof of Delivery):

A document signed by the consignee confirming receipt of goods in good condition.

Private Carrier:

A business that owns or leases its fleet of vehicles (like trucks, vans, or ships) to move its products only and not for additional clients. For example, large retailers such as Walmart often own fleets of trucks to deliver goods to their stores.

Rail Freight:

The transportation of goods using trains and railway networks. Rail transport is commonly used for moving bulk commodities, containers, or heavy freight over long distances. It is a common step in intermodal shipping.

Shared Truckload (STL):

A shipping option where multiple shippers share space in the same multi-stop truckload. Shipments traveling similar routes can be moved on the same truck without passing through hubs and terminals.

Shipping Manifest:

A document that lists all items being transported on a particular shipment, serving as a summary for customs and shipping carriers.

Tender:

An offer from a shipper to a carrier to move freight at agreed-upon terms.

Terminal:

A facility where freight is temporarily transferred, sorted, consolidated, or distributed as it moves along its route.

Transit Time:

The total time taken to transport goods from the point of origin to the destination.

Waybill:

A document containing shipment details, route, and instructions. This is similar to a BOL, but it’s usually non-negotiable.

These terms represent just a fraction of the extensive vocabulary in freight and transportation. It is always rewarding to invest time in further expanding your vocabulary and understanding of the industry. Regularly engage with industry publications, webinars, and networking events, as these often introduce emerging terms and concepts that can quickly reshape current practices. The more fluent you become in the specialized vocabulary of logistics, the more confident you will be in your career!