The freight industry can be full of specific jargon and hard to decipher abbreviations. It can be challenging to get a firm grasp on the process if you hardly understand the terms! While a quick Google search can usually point you in the right direction, these common terms are a good place to start. When you better understand the terminology, you'll be more likely to spot the best option for your freight shipping needs. Click To Tweet
Understanding Common Freight Terms
Whether you’re new to the freight industry or just need to brush up on freight terminology, these common terms are a good place to start. With these terms you’ll be able to understand the freight shipping process from start to finish.
Less than truckload shipping (LTL) is the transportation of relatively small freight. LTL carriers haul freight that rests somewhere between parcel shipments (1150 pounds) and full truckloads. With an LTL rate shopper, you can easily find the best rate for your specific needs.
2) Bill of Lading
The bill of lading (BOL) is a legal contract between the shipper and the carrier, broker or agent that defines all aspects of the freight shipping arrangement including what is being shipped and to whom. The bill of lading should be provided to the carrier on pickup and a copy should always be attached to the package freight.
3) Freight Class
A freight classification is assigned to a shipment for the purpose of determining transportation charges. Freight classifications are used for less than truckload (LTL) shipments and are based on density, freight stowability, ease of handling and liability.
4) Motor Property Broker
A freight broker makes freight shipping arrangements on behalf of an individual or company. The broker determines the needs of the client and has ample experience in the industry to negotiate the best shipping rates with a carrier that can meet the client’s requirements.
The practice in less than truckload (LTL) shipping in which materials are stacked so that one item goes inside another. This reduces the amount of space taken up by combined freight and makes LTL shipping more efficient and less likely to experience damage.
6) Through Rate
Applies to the distance between the point of origin and the delivery destination.
Establishes the cost and contract of the freight shipment for both the shipper and the carrier.
7) Truckload Managment
Truckload management encompasses the logistics for your shipment from pickup to delivery. This includes GPS tracking, email reports, billing and payment information and much more. Usually handled by your shipment broker.
9) Volume Rate
A less than truckload (LTL) term for rates that are subject to a minimum weight of 7,000 pounds or more, or cubic volume exceeding 750 cubic feet.
Ensuring Clear Communication
Using the right freight broker can alleviate much of the anxiety surrounding freight shipping. But even then, it’s helpful to have a good handle on the basics. This will ensure clear communication and hopefully prevent misunderstandings.
Contact Us to learn more about the freight shipping and LTL process.