A

Accessorial Charges

Extra fees added to a freight bill for services beyond basic transportation — think liftgate, inside delivery, detention, reclassification.

Air Freight

Shipping goods by air. Faster than ocean/truck, way more expensive, usually for high-value or time-sensitive cargo.

ATA (Actual Time of Arrival)

The real time a shipment arrived, not the planned or estimated one.

B

BCO (Beneficial Cargo Owner)

The company that ultimately owns the cargo being shipped, not the forwarder or NVO that arranged the move.

Bill of Lading (BOL)

A legal document between shipper and carrier that describes the freight, where it’s going, and who’s paying. It’s the receipt for the load.

Blind Shipment

A shipment where one or more parties don’t see all the details (like the shipper or final customer) to protect pricing or sourcing.

C

Cabotage

Rules that control domestic transport by foreign carriers. Big in Canada/US cross-border and in maritime.

Carrier

The company actually moving the freight — trucking company, ocean line, airline, rail.

Chassis

The wheeled frame used to move ocean containers over the road.

Consignee

The person or company receiving the shipment.

Commercial Invoice

A customs document listing what’s being shipped, its value, and who it’s going to — needed for international shipments.

D

Detention

Fee charged when a driver is stuck at pickup or delivery beyond the free time. Fix your docks and this goes away.

Demurrage

Fee charged by a port/terminal when a container stays longer than the allowed free days.

Drayage

Short-distance container move, usually from port/rail to a nearby warehouse.

E

EDI (Electronic Data Interchange)

Standard way systems talk to each other to send load tenders, invoices, status updates without humans typing it in.

ETD / ETA

Estimated Time of Departure / Arrival — the “we think it will be there then” time.

F

FOB (Free on Board)

Term that defines when risk and cost transfers from seller to buyer. Depends on the agreed Incoterm.

Freight Broker

Intermediary that matches a shipper’s load to a carrier, handles pricing, tracking, and issues. Doesn’t own the truck.

G

Gateway

A major hub (airport, port, DC) through which freight is consolidated and routed.

H

Hazmat

Hazardous materials that require special handling, documentation, and driver/carrier qualifications.

I

Incoterms

International rules that define who pays for what and when risk transfers in global trade.

Intermodal

Using two or more modes (truck + rail, truck + ocean) on the same shipment.

L

Last Mile

The final delivery leg to the end customer. Most expensive per mile and most likely to go sideways.

Layover

Fee charged when a driver has to stay overnight because the load wasn’t ready or delivery couldn’t happen.

LTL (Less-than-Truckload)

Freight that doesn’t fill a trailer and is combined with other shippers’ freight.

M

Milk Run

A planned route that picks up from multiple suppliers and delivers to one destination, often on a schedule.

Mode

The method of transport — truck, rail, ocean, air.

N

NMFC / Freight Class

US system for classifying LTL freight based on density, handling, liability.

NVOCC

Non-vessel-operating common carrier — books space on ships and sells it, acts like a carrier to the shipper.

O

Ocean Freight

Shipping goods by sea, either in containers (FCL/LCL) or breakbulk.

On-Time Delivery (OTD)

KPI that measures whether loads arrived when they were supposed to.

P

PO (Purchase Order)

Document from buyer to supplier listing what’s being ordered, quantities, pricing — often used to track inbound shipments.

POD (Proof of Delivery)

Signed document showing the freight was delivered. Shippers and brokers need this to bill.

Port Congestion

When too many ships/containers hit a port at once and everything slows down.

R

Reefer

Refrigerated container or truck used for temperature-controlled freight.

RFP (Request for Proposal)

Shipper’s formal process to source rates/services from carriers or brokers.

S

Supply Chain Visibility

Being able to see where your stuff is, what it’s doing, and whether it’ll be late — across modes and partners.

SOP (Standard Operating Procedure)

Documented steps on how to handle a shipment/customer/situation so everyone does it the same way.

SKU (Stock Keeping Unit)

Unique identifier for an item in inventory.

Shipper

The party sending the goods.

T

Tariff

Government tax on imports/exports. Impacts landed cost and routing decisions.

Transloading

Moving freight from one mode/container/trailer to another, often at ports or border points.

Trucking Detention

See “Detention.” Charged by the hour after free time.

W

WMS (Warehouse Management System)

Software that manages inventory, locations, picks, and warehouse workflows.

Wharfage

Fee charged by a port for using the wharf/terminal for cargo.

Z

Zone Picking

Warehouse picking method where workers pick only from assigned zones to speed up fulfillment.