Freight Glossary and Definitions

A

3PL (Third-Party Logistics) – A company that provides outsourced logistics services including transportation, warehousing, distribution, and fulfillment services.

4PL (Fourth-Party Logistics) – A logistics provider that manages and coordinates the activities of multiple 3PLs and other service providers on behalf of a client.

Accessorial Charges – Additional fees charged by carriers for services beyond standard pickup and delivery, such as detention, fuel surcharges, or special handling.

Air Waybill (AWB) – A document that accompanies goods shipped by air, serving as a receipt and contract of carriage.

All-Risk Coverage – Insurance coverage that protects against all risks of physical loss or damage except those specifically excluded.

Arrival Notice – Notification sent by a carrier to the consignee advising of the arrival of a shipment.

B

Backhaul – The return trip of a transportation vehicle after delivering a load, ideally with cargo to maximize efficiency.

Bill of Lading (BOL) – A legal document between a shipper and carrier that details the type, quantity, and destination of goods being carried.

Bonded Warehouse – A secured warehouse where imported goods can be stored without paying customs duties until they are withdrawn for use or export.

Broker – An intermediary who arranges transportation services between shippers and carriers without taking possession of the goods.

Bulk Cargo – Cargo that is shipped unpackaged in large quantities, typically liquids, gases, or granular materials.

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C

Carrier – A company that transports goods or people from one location to another via truck, rail, air, or sea.

CBM (Cubic Meter) – A unit of measurement for volume used in international shipping, equivalent to 35.31 cubic feet.

CFS (Container Freight Station) – A facility where LCL (Less than Container Load) cargo is consolidated into containers or deconsolidated from containers.

Chargeable Weight – The weight used to calculate shipping charges, which may be either actual weight or dimensional weight, whichever is greater.

Chassis – A wheeled frame used to transport containers over the road, typically pulled by a truck tractor.

COD (Cash on Delivery) – A service where the carrier collects payment from the consignee upon delivery of goods.

Consolidation – The practice of combining multiple smaller shipments into one larger shipment to reduce costs.

Consignee – The person or company to whom goods are shipped and delivered.

Consignor – The person or company who ships goods; also known as the shipper.

Container – A large standardized shipping box designed for efficient handling, storage, and transportation of goods.

Cross-Docking – A logistics practice where products are directly transferred from inbound to outbound transportation with minimal or no storage time.

CWT (Hundredweight) – A unit of weight measurement equal to 100 pounds, commonly used in freight pricing.

D

Deadhead – Operating a vehicle without cargo, typically returning empty after delivery.

Demurrage – Charges applied when containers or rail cars are held beyond the allowed free time at terminals or facilities.

Detention – Charges applied when a carrier’s equipment (truck, trailer, container) is held by the shipper or consignee beyond agreed free time.

Dimensional Weight – A pricing technique used by carriers that considers the size of a package in addition to its actual weight.

Dock Receipt – A document acknowledging receipt of cargo at a dock or warehouse.

Drayage – Short-distance transportation of goods, typically between ports, rail terminals, and warehouses.

Dry Van – An enclosed trailer without temperature control, used for general freight transportation.

E

EDI (Electronic Data Interchange) – The electronic exchange of business documents between companies in a standardized format.

ETA (Estimated Time of Arrival) – The expected time when a shipment or vehicle will arrive at its destination.

ETD (Estimated Time of Departure) – The expected time when a shipment or vehicle will depart from its origin.

Export – Goods or services sold and shipped to another country.

EXW (Ex Works) – An Incoterm where the seller makes goods available at their premises, and the buyer is responsible for all transportation costs and risks.

F

FCL (Full Container Load) – A shipping term used when a single shipper’s cargo occupies an entire container.

FEU (Forty-foot Equivalent Unit) – A unit of measurement based on a 40-foot container, used to describe container ship capacity.

FOB (Free on Board) – An Incoterm indicating the point at which ownership and liability for goods transfer from seller to buyer.

Force Majeure – Unforeseeable circumstances that prevent a party from fulfilling a contract, such as natural disasters or wars.

Freight – Goods transported by truck, train, ship, or aircraft, or the charges for such transportation.

Freight Forwarder – A company that organizes shipments for individuals or corporations to get goods from the manufacturer to market or final destination.

FTL (Full Truckload) – A shipping method where an entire truck trailer is used for one shipper’s cargo.

Fuel Surcharge – An additional fee added to freight charges to account for fluctuating fuel costs.

G

Gross Weight – The total weight of goods including packaging and container.

GRI (General Rate Increase) – An across-the-board increase in shipping rates announced by carriers.

H

Hazmat – Short for hazardous materials; goods that pose risks to health, safety, property, or the environment during transportation.

HOS (Hours of Service) – Federal regulations that limit the number of hours commercial drivers can operate vehicles.

Hub – A central facility where cargo is sorted and distributed to various destinations.

I

Import – Goods or services brought into a country from abroad for sale.

Incoterms – International Commercial Terms that define the responsibilities of buyers and sellers in international trade transactions.

Inland – Transportation or activities that occur away from ports or coastal areas, typically overland.

Intermodal – Transportation involving multiple modes of transport (truck, rail, ship) with cargo remaining in the same container throughout.

L

LCL (Less than Container Load) – A shipping term for cargo that doesn’t fill an entire container and is consolidated with other shipments.

Liftgate – A hydraulic platform on the back of a truck that raises and lowers to facilitate loading and unloading.

Linehaul – The main transportation portion of a shipment between major terminals or hubs.

LTL (Less than Truckload) – A shipping method for freight that doesn’t require the full space of a truck trailer.

M

Manifest – A document listing all cargo aboard a vessel, aircraft, or vehicle.

Multimodal – Transportation using multiple modes but potentially involving different containers or handling methods.

N

NMFC (National Motor Freight Classification) – A standard system for classifying freight for LTL shipping in the United States.

Non-Vessel Operating Common Carrier (NVOCC) – A company that provides ocean freight services without operating vessels.

O

OTR (Over the Road) – Long-distance trucking operations, typically involving sleeper cabs and extended trips.

Overweight – Cargo that exceeds legal weight limits for transportation.

P

Pallet Jack – A manual or powered tool used to lift and move pallets within warehouses and loading docks.

Per Diem – Daily charges applied for the use of equipment such as containers or trailers beyond free time.

POD (Proof of Delivery) – Documentation confirming that goods were delivered to the intended recipient.

Port of Entry – A designated location where goods can legally enter a country and undergo customs inspection.

R

Reefer – A refrigerated container or trailer used to transport temperature-sensitive cargo.

ROI (Return on Investment) – A measure of the efficiency of an investment, calculated as the ratio of net profit to cost.

S

Shipment – A quantity of goods sent from one place to another.

Shipper – The person or company that sends goods; also known as consignor.

Spotting – Positioning a trailer or container at a specific location for loading or unloading.

Supply Chain – The network of organizations, people, activities, information, and resources involved in moving a product from supplier to customer.

T

Tariff – A published schedule of rates, charges, and rules for transportation services.

TEU (Twenty-foot Equivalent Unit) – A unit of measurement based on a 20-foot container, used to describe container ship and terminal capacity.

Transload – The process of transferring goods from one mode of transportation to another.

TMS (Transportation Management System) – Software designed to plan, execute, and optimize the shipment of goods.

U

Unitization – The consolidation of multiple pieces of cargo into a single unit for easier handling.

V

Vessel – A ship or large boat used for transporting goods or passengers across water.

VMI (Vendor Managed Inventory) – A supply chain arrangement where the supplier manages inventory levels at the customer’s location.

W

Warehouse – A building used for storing goods before they are distributed or sold.

Waybill – A document prepared by a carrier that provides details about a shipment and serves as a receipt.

WMS (Warehouse Management System) – Software designed to control and manage warehouse operations from receiving to shipping.

Y

Yard – A designated area at terminals, warehouses, or distribution centers where vehicles and equipment are parked or stored.

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This glossary covers essential terms used in freight, shipping, and logistics operations.

This article describes how truck manufacturers are increasing prices of new Class 8 tractors due to tariffs on U.S. imports. Key points include:

• Volvo Trucks North America and Mack Trucks warned customers of price increases starting in May 2025 following the Trump administration’s 25% tariff on steel and aluminum imports.
• Even before the tariffs, the 2025 demand was weaker than expected, with ACT Research cutting Class 8 demand forecasts by about 8%.
• Major manufacturers reported sales declines, with Daimler Truck North America and International Motors both reporting 16% year-over-year drops in Q1 2025.
• The Trump administration initially announced broader tariffs, including matching 25% tariffs on Canadian and Mexican imports.
• The administration also announced minimum 10% tariffs on all imports outside the USMCA agreement, but these were paused for 90 days on April 9 after widespread criticism and market turbulence.
• According to FTR Transportation Intelligence, steel and aluminum tariffs alone are expected to increase Class 8 truck costs by 4-6% and Classes 4-7 costs by 4-5%.
• Class 8 orders have declined significantly, with March 2025 orders down 14% month-over-month and 22% year-over-year, with Q1 orders down 25% compared to 2024.
• Analysts cite economic indicators, stagnant freight market, and tariff uncertainty as reasons for the decline.

The broader implications of the steel and aluminum tariffs go well beyond just higher truck prices—they ripple through the entire economy and global trade landscape:

1. Increased Manufacturing Costs: U.S. manufacturers that rely on imported metals—like automakers, appliance makers, and construction firms—face higher input costs. This can lead to price hikes for consumers or squeezed profit margins.
2. Supply Chain Shifts: Some companies are rethinking their sourcing strategies. For example, firms like Emirates Global Aluminum and Hyundai Steel are investing in U.S. production facilities to avoid tariffs, which could boost domestic capacity but take time to scale.
3. Inflationary Pressure: As costs rise across multiple sectors, there’s a risk of broader inflation, especially if companies pass those costs down the line.
4. Trade Tensions: These tariffs have already triggered retaliatory measures from trading partners in the past. Renewed or expanded tariffs could strain diplomatic and economic relations, particularly with the EU and China.
5. Market Realignment: U.S. prices for steel and aluminum are now significantly higher than in other regions. This could make U.S. exports less competitive and shift global trade flows, with some foreign producers potentially exiting the U.S. market altogether.
6. Policy Precedent: The use of Section 232 for national security justifications sets a precedent for future administrations to impose tariffs more broadly, potentially reshaping U.S. trade policy for years to come.

Source: https://www.ttnews.com/articles/tariffs-raise-truck-prices

Calculate your Fuel Costs, Mileage & Time, Weight Conversion, Income Calculator. Calculating your fuel costs allows for better budgeting of your expenses, track your expenses, and significant savings. 

It enables you to predict fuel expenses for trips and identify opportunities to reduce your overall spending on fuel. 7 Tips to Navigate Fluctuating Fuel Costs

• Mileage & Time: Knowing how far and how long a trip takes is essential for scheduling, estimating delivery times, and calculating labor costs. It also ties directly into fuel usage and vehicle wear and tear.
• Weight Conversion: Especially important in freight and logistics, where weight affects fuel consumption, legal load limits, and pricing. Accurate conversions between units (like pounds to kilograms) ensure compliance and efficiency.
• Income Calculator: This ties everything together. By factoring in fuel costs, mileage, time, and load weight, you can estimate net income — crucial for independent drivers or small fleet operators to track profitability and make informed decisions.
• Fuel Costs: This is often the largest variable expense in transportation. Calculating it helps drivers and businesses budget accurately, plan routes more efficiently, and identify cost-saving opportunities like fuel-efficient driving or better refueling strategies.