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3PL

Outsourced Logistics services that are provided by businesses to help manage a company’s supply chain management functions.  These services can include an array of functions which might include, but are not limited to, public warehousing, distribution management, freight consolidation, and transportation management.

Accessorial

A function that is preformed outside normal handling and storage, which is billed to the customer per the contract.

Accessorial Charge

The billable rate accessed to the customer for providing an accessorial.

Back Haul

Picking up a shipment, close to drop off point of original delivery, so the hauler is not returning empty to original destination area.  Back hauling is a good way to create revenue when the hauler is returning loaded as opposed to empty.

Bill of Lading (BOL)

A document that is used as an official contract between carrier and the owner of the freight.  When the carrier signs the BOL they are accepting responsibility for the shipment.  When the shipment reaches it’s final destination the consignee signs the BOL acknowledging that they have received the shipment.  Once the BOL is signed that all product was delivered, this document then can act as a proof of delivery (POD).

Blind Shipment

The paying customer has requested that the information of either the consignee or shipper not be visible on the BOL who they have contracted with.

Carrier

The company or individual who has been contracted to carry a shipment from point A to point B in a timely manner.

Commodity

Goods  that are specifically identified to individual clientele.

Concealed Damage

Product that is damage but not noticeable until it is examined or noticed when being stored or transferred.

Consignee

The person or company who is receiving the goods shipped.

Container

A box that is mainly used to transport goods by ships, railroads, and trucks.

Contract

A binding agreement between two parties which clarifies the rates, accessorial charges, and length of agreement.

Contract Warehouse

A location where goods can be stored for a specified period of time.  The location may manage the inventory for the client until it is ready to be shipped to final destination.  Cost may include, but are not limited to, storage fees, labor and equipment needed to maintain the clients product.

Cross-dock

A location where freight can be dropped of for a short period of time until arrangements can be made to deliver to final destination.

Distribution Center

Warehouse facilities that have the capability to manage, store, and ship inventory for its clientele.
Product can be brought in by inbound carriers and stored and managed until an outbound carrier can pick up the shipment to be delivered to its final destination.

Dock

An platform at a warehouse specified for shipment to be unloaded and loaded.

Drayage

A container removed from a rail car and stored at a facility, until it is ready to be returned to original location it was unloaded to be shipped back out.  It is crucial that this is done in a timely fashion so not to incur detention charges.

EDI (Electronic Data Interchange)

Computerized exchange of orders, invoices, shipping forms and other documents need to assist the clientele in a more timely fashion with minimal errors.   This process also cuts down on cost to the customer.

Forklift

A piece of equipment that can move goods from one location to another. 

Freight Bill

A document that contains charges for the shipment when it is delivered.

Freight Charge

Charges that are incurred by the client for services preformed by provider.

Freight Cost

Compensation paid for services provided by carrier.

Full Truckload

A shipment which is between 39,000 and 44,000 pounds constitutes a full or almost full load.

Gross Weight

The total weight which includes packaging and container of a product.

Handling

The labor used any time a product is touched.

Handling Charge

The fee that is incurred by the customer for product being handled.

Handling Cost

Amount it will cost the company holding the goods to perform service for client.

Hazmat (Hazardous Material)

Material deemed by the government or a carrier to be dangerous to the general public.

In-House Damage

Damage that is incurred while freight is being stored, moved, or dropped.

Intermodal

The use of two or more modes of transportation.  (i.e. ship to rail, rail to truck, and etc.)

Less Than Container Load (LCL)

Freight weighing less than a full container.

Less Than a Truckload (LTL)

Shipments weighing less than 39,000 pounds may be classified as a LTL.  Freight that is close to the 39,000 pound may be cheaper to classify as a full truck load do to the weight breaks across LTL classifications.

Load

Product that is transported from one location to another.

Logistics

A 3rd party operation which processes and services a customers needs in a timely manner.

Lumper

Fee associated with a contracted laborer who may assist in loading and unloading freight.

Net Weight

The raw weight of a product before it is packed and processed for shipping. 

O.S. & D. (Over, Short and Damage)

The condition of a product when delivered, or the quantity does not match the BOL.

Overage

When more product was shipped than indicated on the BOL.

Packing List

A piece of paper describing what a particular shipment contains.  It may also specify details such as, description, serial numbers, units and etc. of product shipped.

Pallet

The wooden or plastic base that is used to stack and layer products on for transport or storage purposes.

Palletize

The process by which product are placed on a wooden or plastic pallet.

P.O.D. (Proof Of Delivery)

A bill of lading which has been signed once the freight is delivered.

Product Code

The characters assigned to identify a product. (ie. SKU)

Pro Number

A number used to track a shipment which is assigned by the carrier.

Real Time

Updating and saving information instantaneously.

SCAC (Standard Carrier Alpha Code)

A code assigned to carriers for identification purposes.  These codes are usually 2 to 4 characters in length and are required for use in EDI and other transportation documents.

Shipment

The movement of freight from one location to another.

Ship To

The person or companies information that will receive the freight.

Tare

The weight of the material which the product is wrapped or covered in.
Gross weight minus net weight equal tare weight.

Trailer

A vehicle towed by a truck that can be enclosed such as a van, refrigerated trailers, and flatbed which transport product.  The trailers are typically 45’, 48’ or 53’ long. 

Tractor

A piece of equipment capable to pull a trailer.

TMS (Transportation Management System)

A system created for use in a  transportation company which will assist in finding rate quotes, managing carriers, and manifesting shipments.