Your A-to-Z Reference for Freight Shipping Terminology

Whether you’re a first-time shipper or an experienced freight broker, the logistics industry is full of jargon. This glossary covers every term you’ll encounter when quoting, booking, tracking, and billing LTL freight.

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A

Accessorial Charges

Fees for services beyond standard dock-to-dock pickup and delivery. Common accessorials include liftgate service ($75-150), residential delivery ($75-125), inside delivery ($100-250), limited access ($50-200), and appointment delivery ($25-75). Always include expected accessorials when requesting quotes to avoid surprise charges.

Appointment Delivery

A delivery scheduled for a specific date and time window, as required by the receiver. Carriers typically charge $25-75 for this service. Common at retail locations and warehouses with strict receiving schedules.

Authority (MC Number)

Operating authority granted by the FMCSA that allows a company to operate as a freight broker, carrier, or freight forwarder. Freight brokers need an MC number obtained by filing Form OP-1. See also: FMCSA, MC Number.

B

Bill of Lading (BOL)

The most important document in freight shipping. A legal contract between the shipper and carrier that describes what’s being shipped, where it’s going, the freight class, weight, and any special instructions. The BOL travels with the freight and is required for pickup. Print at least 3 copies — one for you, one for the driver, one attached to the freight.

Blanket Wrap

A shipping method where freight is wrapped in padded blankets instead of being crated or palletized. Used for furniture, fixtures, and other items that need protection but don’t fit standard pallet dimensions.

Blind Shipment

A shipment where the shipper or receiver (or both) don’t know the identity of the other party. Common when brokers want to protect their customer relationships. The BOL shows the broker’s information instead of the actual shipper or receiver.

BOC-3 (Process Agent)

A designation of process agents filed with the FMCSA. Required for all brokers and carriers. Designates a legal representative in every state where you operate. Typically costs $30-50 to file.

Broker (Freight Broker)

A licensed intermediary who connects shippers with carriers. Brokers don’t own trucks or handle freight — they arrange transportation, manage the shipment lifecycle, and earn money on the margin between what the shipper pays and what the carrier charges. See also: Authority, Surety Bond.

C

Carrier

A company that owns trucks and physically transports freight. LTL carriers operate terminal networks where freight is consolidated and transferred. Examples: FedEx Freight, Old Dominion, XPO, Estes, Saia.

Claims (Freight Claims)

A formal request for compensation when freight is damaged, lost, or delivered short. File claims within 9 months of delivery (per the Carmack Amendment). Document damage with photos before signing the delivery receipt. Note damage on the POD before signing.

Class (Freight Class)

A classification system (50-500) that determines LTL shipping rates. Based on density, handling difficulty, stowability, and liability. Class 50 is the cheapest (dense, durable freight). Class 500 is the most expensive (light, bulky, fragile). Assigned via NMFC codes. See also: NMFC, Density.

Consolidation

Combining multiple smaller shipments into one larger shipment to reduce per-unit shipping costs. LTL carriers consolidate freight from multiple shippers onto shared trailers at their terminals.

Consignee

The person or company receiving the freight (the destination). Listed on the BOL.

Consignor

The person or company shipping the freight (the origin). Also called the shipper. Listed on the BOL.

CWT (Hundredweight)

A pricing unit equal to 100 pounds. LTL rates are often quoted as cost per CWT. Example: a rate of $25/CWT for a 500-lb shipment = $125.

D

Delivery Receipt (DR)

Document signed by the receiver confirming freight was delivered. Note any visible damage BEFORE signing. Once signed clean (without damage notes), filing a claim becomes much harder.

Density

Weight per cubic foot of freight. Calculated as: Weight (lbs) ÷ Cubic Feet. Higher density = lower freight class = cheaper shipping. This is the primary factor in determining freight class. See also: Freight Class.

Detention

Charges applied when a carrier’s driver waits longer than the allotted free time (typically 30 minutes) for loading or unloading. Usually $50-100 per 30-minute increment. Avoid by having freight staged and paperwork ready before the driver arrives.

Dimensional Weight (DIM Weight)

A pricing method where the carrier charges based on the space your freight occupies rather than its actual weight — whichever is greater. Penalizes light, bulky shipments. Calculated as: (L × W × H in inches) ÷ DIM factor.

Dispatch

The process of assigning a carrier to a shipment and coordinating pickup. In brokerage, dispatch includes booking the carrier, sending rate confirmation, and generating the BOL.

Dock (Loading Dock)

A raised platform at a warehouse or business where trucks back up to load and unload freight. Standard dock height is 48-52 inches. Locations without docks require liftgate service. See also: Liftgate.

Drayage

Short-distance transportation of freight, typically between a port/rail terminal and a warehouse or distribution center. Common in intermodal shipping.

E

EDI (Electronic Data Interchange)

A standardized electronic format for exchanging business documents (orders, invoices, shipping notices) between companies. Common in enterprise shipping where high-volume customers require automated data exchange.

ETA (Estimated Time of Arrival)

The carrier’s estimated delivery date and time. LTL ETAs are based on the carrier’s published transit times but can vary due to weather, volume, and terminal congestion.

F

Factoring

Selling your unpaid invoices to a third party (factor) at a discount to get immediate cash. Common in freight brokerage where you pay carriers in 15-30 days but collect from customers in 30-45 days. Factoring fees typically run 1-5% per invoice.

FMCSA

Federal Motor Carrier Safety Administration — the US government agency that regulates freight brokers, carriers, and the trucking industry. Issues operating authority (MC numbers), enforces safety regulations, and maintains carrier records.

FOB (Free On Board)

Determines when ownership and liability for freight transfers from seller to buyer. FOB Origin: buyer assumes risk once freight is picked up. FOB Destination: seller assumes risk until freight is delivered.

Freight Forwarder

A company that arranges the transportation of goods, often internationally. Unlike brokers, forwarders may take physical possession of freight and issue their own BOLs.

FTL (Full Truckload)

Shipping method where you book an entire trailer for your freight alone. Best for shipments over 10 pallets or 15,000 lbs. Faster than LTL (direct, no terminal stops) but more expensive for smaller loads. See also: LTL.

Fuel Surcharge (FSC)

A variable charge added to the base freight rate, tied to current diesel fuel prices. Typically 25-35% of the base rate in 2026. Applied by all LTL carriers. Some carriers apply FSC to base rate only; others apply it to base + accessorials.

G-H

GRI (General Rate Increase)

An across-the-board rate increase applied by LTL carriers, typically announced annually. GRIs usually range from 5-10% and affect all shippers. Negotiate your contract renewal timing to minimize impact.

Hazmat (Hazardous Materials)

Freight classified as dangerous goods requiring special handling, packaging, labeling, and documentation. Includes chemicals, batteries, flammable materials, and more. Hazmat shipments incur additional fees and regulations.

Hub-and-Spoke

The terminal network model used by LTL carriers. Freight moves from origin to a local terminal (spoke), then to a regional hub, potentially through additional hubs, then to the destination terminal and final delivery. More transfers = longer transit but lower cost.

I-K

Inside Delivery

An accessorial service where the carrier moves freight past the building threshold — into the building, to a specific room, or beyond the loading dock area. Costs $100-250. Standard delivery only goes to the tailgate or dock.

Interline

When a shipment is transferred between two or more carriers to complete delivery. Common when no single carrier services both the origin and destination. Can increase transit time and handling.

L

Lane

A specific origin-destination route. Example: “Dallas to Atlanta” is a lane. Carriers price and perform differently on different lanes. The best carrier on one lane may be the worst on another.

Liftgate

A hydraulic platform on the back of a truck that raises and lowers freight between ground level and truck bed height. Required when the pickup or delivery location doesn’t have a loading dock. Costs $75-150 per occurrence (pickup and delivery charged separately). See also: Dock.

Limited Access

An accessorial charge for deliveries to locations the carrier considers difficult to access — construction sites, schools, churches, military bases, farms, mines, self-storage facilities, and more. Each carrier defines “limited access” differently. Costs $50-200.

Line-Haul

The base transportation charge for moving freight from origin to destination, excluding fuel surcharge and accessorials. This is the core rate that carrier discounts are applied to.

LTL (Less-Than-Truckload)

A shipping method where your freight shares trailer space with other shippers’ freight. You pay for the space you use, not the whole truck. Best for 1-10 pallets or 150-15,000 lbs. Cheaper than FTL for smaller shipments but slower due to terminal transfers. See also: FTL, Hub-and-Spoke.

M-N

Markup

The amount a freight broker adds to the carrier’s rate when billing the customer. Expressed as a percentage or flat fee. Typical broker markup: 15-25%. Example: carrier charges $800, broker bills customer $1,000, markup is $200 (25%).

MC Number

Motor Carrier number issued by the FMCSA. Required for freight brokers (broker authority) and carriers (carrier authority) to operate legally in the US. Obtained by filing Form OP-1.

Minimum Charge

The lowest amount a carrier will charge for any single LTL shipment, regardless of weight or distance. Typically $75-150. Affects very small or light shipments the most.

NMFC (National Motor Freight Classification)

The standardized system for classifying freight into classes 50-500. Maintained by the NMFTA (National Motor Freight Traffic Association). Each product type is assigned an NMFC code that maps to a freight class. Using the correct NMFC code prevents reclassification fees. See also: Freight Class.

O-P

OTD (On-Time Delivery)

The percentage of shipments delivered on or before the carrier’s quoted transit time. Top LTL carriers achieve 95%+ OTD. An important metric when evaluating carrier performance.

Pallet

A flat wooden or plastic platform used to stack and transport freight. Standard pallet size is 48″ × 40″ (GMA standard). Freight should not overhang the pallet edges. Standard stacking height is 48″ total including the pallet.

POD (Proof of Delivery)

Document signed by the receiver confirming the freight was delivered, noting the condition and any damage. Critical for billing and claims. Many carriers now provide electronic PODs accessible via their tracking portal or API.

PRO Number

The carrier’s unique tracking number assigned to your shipment at booking. Used to track the shipment through the carrier’s system. “PRO” stands for Progressive Rotating Order.

Q-R

Rate Confirmation

A document sent from a broker to a carrier confirming the agreed-upon rate, pickup/delivery details, and terms for a specific shipment. Serves as the contract between broker and carrier.

Reclassification

When a carrier inspects your freight at a terminal and determines it belongs in a different (usually higher) freight class than what’s listed on the BOL. Results in a higher rate plus an inspection fee ($50-150). Prevent by using correct NMFC codes and accurate dimensions/weight.

Residential Delivery

An accessorial charge for delivery to a home or location the carrier classifies as residential. Costs $75-125. Carriers use their own address databases — some home-based businesses with commercial addresses may still be flagged as residential.

S

Shipper

The company or person sending freight. Also called the consignor. In the broker model, the shipper is the broker’s customer.

Surety Bond (BMC-84)

A $75,000 bond required by the FMCSA for all freight brokers. Protects carriers and shippers if the broker fails to pay. Annual cost: $750-$5,000 depending on credit. Alternative: BMC-85 trust fund.

T

Tariff

A carrier’s published rate schedule. Intentionally high — discounts of 50-80% off tariff are normal. Never compare discount percentages between carriers (different tariff bases). Always compare actual dollar amounts.

Terminal

A carrier’s facility where LTL freight is received, sorted, consolidated, and transferred between trucks. Shipments typically pass through 2-4 terminals in transit. More terminals = more handling = more transit time.

TMS (Transportation Management System)

Software that manages the shipping lifecycle — quoting, booking, dispatch, tracking, invoicing, and reporting. Essential for freight brokers and high-volume shippers. Modern TMS platforms like EagleLoad are cloud-based and start with free plans.

Transit Time

The number of business days from pickup to delivery. LTL transit times are typically 2-7 days depending on distance and the number of terminal transfers. Does not include weekends or holidays.

3PL (Third-Party Logistics)

A company that provides outsourced logistics services — transportation, warehousing, fulfillment, and supply chain management. Freight brokers can be part of a 3PL offering.

V-W

VLTL (Volume Less-Than-Truckload)

A pricing tier for shipments too large for standard LTL but not requiring a full truck — typically 6-12 pallets or 5,000-12,000 lbs. Offers better per-pound rates than standard LTL with fewer terminal transfers.

Weight Break

Weight thresholds where the per-pound LTL rate drops. Common breaks at 500, 1000, 2000, 5000, and 10,000 lbs. Sometimes it’s cheaper to declare a slightly higher weight to hit a lower rate break — a practice called “bumping.”

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