Nutra – Freight International Ltd is one of North America’s leading provider of premium truckload and multimodal transportation and logistics solutions.



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Knowledge Centre

GLOSSARY OF TERMS

3PL (Third Party Logistics Provider)
Third party logistics providers (3PLs) are service providers who perform or manage logistics services for client enterprises. 3PLs can be either asset or non-asset based and include providers of transportation management, freight forwarding, customs brokerage, warehousing, kitting/light manufacturing and distribution services. Clients, carriers and agents in the supply chain pass information to the 3PL for processing using the 3PL's systems. 3PLs typically procure and manage services on behalf of a client or 4PL.

4PL (Fourth Party Logistics Provider)
A fourth party logistics provider (4PL) is a supply chain integrator that assembles and manages the resources, capabilities, and technology of its own organization along with those of complementary service providers (3PL's, technology service providers, etc.) to deliver a comprehensive supply chain solution.

ABANDONMENT
Proceeding where a carrier seeks authorization to stop service over all or part of its route/line, or to give up ownership/control of cargo or vessel. Must be approved by the ICC in the case of motor or rail proceedings.

Shipper or consignee relinquishes damaged freight carrier or refuses to accept delivery.

The act or relinquishing title to damaged or lost property to claim a total loss.

ABSOLUTE LIABILITY
Condition in which a carrier is responsible for all liability and is not protected by normal exemptions found in a bill of lading or common law liability.

ACCEPTANCE
Acknowledged receipt by consignee of a shipment, terminating the common carrier contract.

A promise to pay, usually evidenced by inscribing across the face of the bill "accepted," followed by the date, place payable, and acceptor’s signature.

ACCESSORIAL CHARGES
Charges for supplementary services and privileges (ACCESSORIAL SERVICES) provided in connection with line-haul transportation of goods. These charges are not included in the freight charge and usually take the form of a flat fee. Some examples are: pickup/delivery, in-transit privileges, demurrage, switching, loading/unloading.

ACCESSORIAL SERVICE
A service rendered by a carrier in addition to regular transportation service.

AD VALOREM
A Latin phrase meaning "according to value." Freight rates set at a certain fixed percentage of the value of articles are known as ad valorem rates.

ADVANCED CHARGE
Freight or charge on a shipment that is advanced by one transportation company to another, or to the shipper, to be collected from the consignee.

ADVICE OF SHIPMENT
Notice to local or foreign buyer that shipment has occurred, with packing and routing details. A copy of invoice usually is enclosed, and sometimes a copy of the bill of lading.

ALL-COMMODITY RATE
Usually a carload/truckload rate that applies to multiple shipments that move at one time in one vehicle from the consignor to one consignee. An all-commodity rate is established based on actual transportation cost rather than "value of service."

ALLOWANCE
Deduction from the weight or value of goods. Allowed if a carrier fails to provide necessary equipment and that equipment is furnished by the shipper.

ALONGSIDE
Point of delivery beside a vessel; statement designating where the title to goods passes from one party to another.

ALTERNATE ROUTING
Routing that is less desirable than the normal, but results in identical terms.

ARBITRARY
Charge in addition to regular freight charge to compensate for unusual local conditions.

Fixed amount accepted by a carrier when dividing joint rates.

ARRIVAL NOTICE
A notice, furnished to consignee, of the arrival of freight.

ASTRAY FREIGHT
Freight that has been separated from its freight bill.

AUTHORITY
Operating rights granted a motor carrier by the ICC.

AUTHORIZED CARRIER
A person or company authorized by the ICC to transport goods as a common or contract carrier.

BACK HAUL
Return transportation movement, usually at less revenue than the original move.

Movement in the direction of lighter traffic flow when traffic generally is heavier in the opposite direction.

To move a shipment back over part of a route already traveled.

BARRELL WHEELER OR BARREL TRUCK
A dolly-like hand truck designed specifically to move drums or barrels.

BASING POINT
Geographic point to which transportation rates are set so that rates to adjacent points can be constructed by adding to/deducting from the basing point rate.

BILL OF LADING (BL or B/L)
The principal transportation document by which a carrier acknowledges receipt of freight, describes the freight, and sets forth a contract of carriage. Terms and conditions, responsibilities, and liabilities vary with manner and place of use. Bills of lading may be negotiable or non-negotiable.

BILLED WEIGHT
The weight shown on a freight bill.

BIRDYBACK
Moving highway freight by air.

BLIND SIDE
Right side of truck and trailer.

BLOCKING
Wood or metal supports to keep shipments in place in trailers.

BOB TAIL
Tractor operating without a trailer.

BOGEY
A two-axle assembly at the rear of some trailers or tractors. Also called a tandem axle.

BONDED WAREHOUSE
A warehouse approved by the Treasury Department and under bond/guarantee for observance of revenue laws.

Used for storing goods until duty is paid or goods are released in some other proper manner.

BOTTOM FREIGHT
Heavy freight that must be loaded on the trailer floor and not on top of other merchandise.

BOX
Slang term for a trailer or container for ocean carriers. Slang term for a truck transmission.

BRACING
See BLOCKING.

BREAK BULK
To unload, sort and reload some/all contents of a vehicle in transit.

To reduce a large shipment of a single commodity to many small shipments, which are then dispersed to various buyers.

BREAKDOWN TIME
A type of penalty pay which is incurred when equipment breaks down.

BROKER
An agent who arranges interstate movement of goods by other carriers.

An arranger of exempt loads for owner-operators and/or carriers.

One who arranges the buying/selling of goods for a commission.

A person who leases owned equipment to a carrier.

BULK CARRIER
Vessel that carries bulk commodities such as petroleum, grain, or ore, which are not packaged, bundled, bottled, or otherwise packed.

BULK FREIGHT
Freight not in packages or containers such as wheat, petroleum, etc.

BULKHEAD
An upright wall in a trailer or railcar that separates and stabilizes a load.

A cargo restraining partition in a vehicle or vessel.

BUYER’S RIGHT TO ROUTE
When a seller does not pay freight charges, the purchaser has a right to designate the route for shipment. Seller is responsible for following the buyer’s instructions. Complete routing is permitted for rail shipments, but only for the first carrier in motor shipments.

CAB
Driver’s compartment of a truck or tractor.

CAB-OVER
Truck or tractor with a substantial part of the driving cab located over the engine.

CABLE SEAL
A heavy steel cable used to secure closed trailer doors. It can only be removed with heavy duty cable cutters.

CAPACITY LOAD
A trailer loaded to the legal weight limit.

A trailer loaded so that no additional piece of freight, equal to the size of the largest piece tendered, will fit into the trailer

CARLOAD (CL or C/L)
Quantity of freight required to fill a railcar.

Specified quantity necessary to qualify a shipment for a carload rate.

CARRIER
An individual, partnership or company in the business of transporting goods or passengers, in most cases for a fee.

CART
A four wheeled platform used to move several pieces of freight across the dock at one time.

CARTAGE
The charge for pickup/delivery of goods.

The act of moving goods (usually short distances).

CASE MARK
Information shown on the outside of a shipping carton, including destination and contents.

CASH BEFORE DELIVERY (CBD)
Seller assumes no risk and extends no credit because payment is received before shipment.

CASH ON DELIVERY (COD)
Buyer pays carrier the price of goods before they are delivered; seller assumes risk of purchaser refusing to accept goods.

CERTIFICATE OF MANUFACTURE
Document used with letters of credit when drafts are paid/negotiated on presentation of a certificate stating that goods have been completed and are being held for shipment.

CHOCK
A wooden, metal, or rubber wedge used to block the wheels of a trailer at the dock. Also used in trailers to keep floor freight from shifting.

CLAIM
Demand on transportation company for payment due to loss/damage of freight during transit.

Demand on transportation company for refund on overcharge.

Demand by an individual/company to recover for loss under insurance policy.

CLASS RATE
The rate charged for commodities grouped according to similar shipping characteristics. Class Rate applies to numbered/lettered groups/classes of articles contained in the territorial rating column in classification schedules.

CO-LOAD
Two shipments from different terminals combined to ship as one load.

COLLECT SHIPMENT
Shipment where collection of freight charges/advances is made by delivering carrier from the consignee/receiver.

COMBINATION
Truck or tractor coupled to one or more trailers (including semi-trailers).

COMMERCIAL INVOICE
Itemized list issued by seller/exporter in foreign trade showing quantity, quality, description of goods, price, terms of sale, marks/numbers, weight, full name/address of purchaser, and date.

COMMODITY
Any article of commerce. Goods, merchandise.

COMMODITY, EXEMPT
One that may be transported in interstate commerce without operating authority or published rates.

COMMODITY RATE
A special (usually lower) rate for specific types of goods (usually exempt commodities).

A rate lower than class rates, established to cover the movement of a specific customer’s freight or for a specific group of customers.

COMMON CARRIER
Any carrier engaged in the interstate transportation of persons/property on a regular schedule at published rates, and whose services are available to the general public on a for-hire basis. Regulated by the ICC.

CONCEALED DAMAGE
When goods in an apparently undamaged container are damaged.

CONCURRENCE
Document signed by carrier and filed with the ICC. Verifies carrier participates in rates published in a tariff by a given agent.

CONNECTING CARRIER
A carrier that originates or completes transportation of a shipment, but does not haul it the entire distance from origin to destination.

CONSIGN
Send goods to a purchaser or an agent to sell.

CONSIGNEE
Any person who receives goods shipped from an owner.

CONSIGNOR
Any person or company that ships articles to customers.

CONSOLIDATION
Combining less-than-carload or less-than-truckload shipments to make carload/truckload movements.

CONTAINERIZATION
Using box-like device to store, protect, and handle a number of packages as a unit of transit.

Shipping system based on large cargo-carrying containers that can be interchanged between trucks, trains, and ships without re-handling contents.

CONTRACT CARRIER
Any carrier engaged in interstate transportation of persons/property by motor vehicle on a for-hire basis, but under continuing contract with one or a limited number of customers to meet specific needs of each customer. Contract Carriers must receive an authorization permit from the ICC.

CONTRACT RATES
Rates which are part of a total contract negotiated between shipper and a carrier.

CONVENTIONAL
Tractor with the engine in front of the cab.

COST, INSURANCE, AND FREIGHT (CIF)
The basis for quotation by seller that indicates seller will pay insurance and freight charges to destination only.

CROSS DOCK
Transfer of freight from one trailer to another at a terminal.

CUBE RATE
A rate based on trailer space instead of weight. Used for light, bulky loads.

CUSTOMS BROKER
A specialist in customs procedures who acts on behalf of importers for a fee. Licensed by the Treasury Department.

CUSTOMS TARIFF
A schedule of charges assessed by the government on imports/exports.

DEAD AXLE
Non-powered rear axle on tandem truck or tractor (also called "tag axle").

DEAD WEIGHT TONNAGE (DWT)
Estimated number of tons of cargo a vessel can carry when loaded to maximum depth.

DEADHEAD
A trailer moving empty.

A shipment moving without charges.

A ride-along driver.

DECLARED VALUE
Assumed value of shipment unless shipper declares higher value.

Stating lower value on a shipment to get a lower rate.

DEFERRED REBATE
Carrier returns a portion of freight charges to shipper. In exchange, shipper gives all/most shipments to carrier over specified period, usually six months. Rebate payment is deferred for similar period.

DEMURRAGE
Penalty for exceeding free time, usually 48 hours, allowed for loading/unloading under terms of railroad/ocean and motor carrier traffics.

DENSITY
The weight of an article per cubic foot.

DETENTION
A charge made for a vehicle held by, or for, consignor or consignee for loading, unloading or for forwarding directions.

DIFFERENTIAL
Amount added to/deducted from base rate to make rate to/from some other point or via another route.

DISCRIMINATION
Difference in rates not justified by costs.

DIVERSION
A change made in consignee, destination, or shipment route while in transit.

DOCK
The floor or platform where trucks load and unload.

DOCK PLATE
Metal plate used to bridge the space between a trailer and a dock platform.

DOLLY
A single-axle piece of trailing equipment used to hook two trailers together.

A non-motorized, two-wheeled hand truck for moving freight around the dock.

DEPARTMENT OF TRANSPORTATION (DOT)
The various federal agencies that regulate the operation of motor vehicles and motor vehicle equipment.

DRAWBACK
Refund of customs duties paid on material imported and later exported.

DRAYAGE
Transporting freight by truck, primarily in local cartage.

DRIVE AXLE
The axle(s) which are connected to the engine by a drive shaft and power the vehicle. Also called "power axle."

DRIVER COLLECT
Refers to a shipment for which the driver must collect freight charges at the time of delivery.

DUB
A 28-foot trailer designed to be pulled two or three at a time by one tractor. Also referred to as a "pup" or "doubles."

DUNNAGE
Term used for cardboard, empty pallets, plywood, foam rubber, air bags, or other items used to cushion or protect freight while in transit.

END-OF-THE-LINE TERMINAL (EOL)
A local terminal which handles the pick-up and delivery of the customer’s freight (as opposed to a consolidation center). Also referred to as a "satellite" or "group" terminal.

EXCEPTION
A shortage, overage, or damage to a shipment.

A notation of such conditions on a freight bill, bill of lading or unloading checksheet.

EXEMPT CARRIER
For-hire motor carrier exempt from ICC economic regulation.

EXPEDITING
Moving shipments through regular channels at an accelerated rate.

EXPORT LETTER OF CREDIT
When importer has arranged with bank for letter-of-credit financing of purchases, he applies for issuance of individual letters of credit to cover purchase contracts as made.

FIRST IN, FIRST OUT (FIFO)
Warehouse term meaning first items stored are the first used.

FEDERAL REGISTER
Government publication that prints rules/regulations of federal agencies daily.

FEEDER
In intermodal moves, a pickup/delivery vehicle or ship.

FISHY BACK
Transporting motor carrier trailers and containers by ship.

FOB DESTINATION
Freight costs paid to the destination point, title transfers at destination.

FOB FACTORY
Title to goods and transportation responsibility transfers from seller to factory.

FOB VESSEL
Title/transportation costs transfer after goods are delivered on vessel. All export taxes/costs involved in overseas shipments are assessed to the buyer.

FORCE MAJEURE
Condition in contract that relieves either party from obligations where major unforeseen events prevent compliance with provisions of agreement.

FOREIGN TRADE ZONES
Goods subject to duty may be brought into such zones duty-free for transshipment/storage/minor manipulation/sorting. Duty must be paid when/if goods are brought from a zone into any part of the U.S.

FORKLIFT
Mechanical vehicle used to move freight on the dock. Also known as lift-truck, towmotor, or hi-lo.

FORWARDING AGENT
A firm specializing in shipping goods abroad. Payments made for insurance and other expenses are charged to the foreign buyer.

FREE-ASTRAY
A shipment that is mis-routed or unloaded at the wrong terminal and is billed and forwarded to the correct terminal free of charge.

FREE ALONGSIDE (FAS)
Selling term in international trade. Selling party quotes price including delivery of goods alongside overseas vessel at exporting port.

FREE ON BOARD (FOB)
Loaded aboard carrier’s vehicle at point where responsibility for risk/expense passes from seller to buyer.

FREE TIME
The period freight will be held before storage charges are applied. The period allowed for the owner to accept delivery before storage charges begin to accrue.

FREIGHT FORWARDER
1) An individual/company that accepts less-than truckload (LTL) shipments and consolidates them into truckload lots on a for-hire basis.

2) An agent who helps expedite shipments by preparing the necessary documents/making other arrangements for moving freight.

GATEWAY
The point at which freight is interchanged/interlined between carriers or at which a carrier joins two operating authorities provision of through service.

IN BOND
Storage of goods in custody of government/bonded warehouse or carrier from whom goods can be taken only upon payment of taxes/duties to appropriate government agency.

INTERCHANGE
Passing freight from one carrier to another between lines.

INTERLINE FREIGHT
Freight moving from origin to destination over two or more transportation lines.

INTERMODAL TRANSPORTATION
Using more than one mode to deliver shipments. For example, rail or ocean vessel carriage of tractor-trailer containers.

INTERSTATE COMMERCE
Exchanging goods between buyers and sellers in two or more states.

INTERSTATE COMMERCE COMMISSION (ICC)
The federal body charged with enforcing acts of Congress affecting common carriers in interstate commerce. Directly responsible to Congress.

INTRASTATE COMMERCE
When all business between buyers/sellers is carried on within state.

JOINT RATE
Agreed upon by two or more carriers, published in a single tariff, and applying between point on line of one and point on line of another. May include one or more intermediate carriers in route.

JUST-IN-TIME (JIT)
An in-bound manufacturing strategy that smoothes material flow into assembly and manufacturing plants. JIT minimizes inventory investment by providing timely, sequential deliveries of product exactly where and when it is needed, from a multitude of suppliers. Traditionally an automotive strategy, it is being introduced into many other industries.

LANDED COST
Total expense of receiving goods at place of retail sale, including retail purchase price and transportation charges.

LAST IN, FIRST OUT (LIFO)
Accounting method of valuing inventory that assumes latest goods purchased are first goods used during accounting period.

LESS-THAN-CARLOAD (LTC or LCL)
A load weighing less than the amount necessary to apply the carload rate charged by railroads.

LESS-THAN-TRUCKLOAD (LTL)
Less than the quantity of freight required to apply the truckload rate charged by motor carriers.

LESSEE
Party or company with legal possession/control of vehicle (with/without driver), or other equipment owned by another under terms of lease agreement.

LESSOR
Party or company granting legal use of vehicle (with/without driver), or other equipment to another party under terms of lease agreement.

LETTER OF CREDIT (L/C)
A method of paying for goods, where the buyer establishes credit with a local bank, clearly describing the goods to be purchased. Upon receipt of documentation, the bank is either paid by the buyer or takes title to goods and transfers funds to the seller.

LIFT TRUCK
Mechanical vehicle used to move freight on the dock. Also known as a fork-lift, towmotor, or hi-lo.

LINEHAUL
Movement of freight between cities that are usually more than 1,000 miles apart, not including pickup and delivery service.

LOAD FACTOR
The weight in pounds loaded onto a trailer.

A term used loosely to describe the "compactness" or over "good usage" of trailer space.

LOADING ALLOWANCE
A tariff provision which provides an allowance, usually a fixed sum per hundredweight, to a shipper for loading a carrier’s trailer.

LONG TON
Equivalent to 2,240 pounds or 20 long hundredweights. Also called gross ton.

MANIFEST
A control document used to list the contents (individual shipments) during loading and from which the contents are checked during unloading.

MANUFACTURING RESOURCE PLANNING (MRP II)
System of manufacturing controls using computers. Affects purchasing, materials management, inventory control, and production management.

MIX
Refers to the combination of light, medium and heavy density freight.

MOTOR CARRIER ACT OF 1935
Act of Congress bringing motor common and contract carriers under ICC jurisdiction.

MOTOR CARRIER ACT OF 1980
Act of Congress that deregulated for-hire-trucking.

MULTIMODAL
See INTERMODAL TRANSPORTATION.

NATIONAL MOTOR FREIGHT CLASSIFICATION (NMFC)
A publication for motor carriers containing rules, commodity descriptions, and classifications for nearly all shippable commodities.

NET WEIGHT
Weight of article without packing and container.

Weight of entire contents of vehicle.

NON-VESSEL-OPERATING COMMON CARRIER (NVOCC)
A cargo consolidator of small shipments in ocean trade, generally soliciting business and arranging for/performing containerization functions at the port.

NOTICE OF ARRIVAL
On arrival of freight at destination, notice is sent promptly to the consignee showing number of packages, description of articles, route, rate, weight, etc.

OFF-ROUTE POINTS
Points located off regular route highways of line-haul carriers, generally served only on irregular schedules.

OPERATING AUTHORITY
Routes, points, and types of traffic that may be served by carrier. Authority is granted by state or federal regulatory agencies.

OPERATING RATIO (OR or O/R)
Comparison of carrier’s operating expenses with gross receipts; income divided by expenses.

OVER, SHORT AND DAMAGED (OS&D)
A report issued at the warehouse when goods are damaged. Used to file a claim with the carrier.

OVERAGE
Freight in excess over quantity believed to have been shipped, or more than quantity shown on shipping document.

 

Cash Flow
Inventory Management
Value Added Service

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 




 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Copyright © 2004 Nutra Freight International Ltd