Other Transportation Industry Terminology

Accessorial Charges

Fees added to base freight for extra services such as liftgate, inside delivery, residential pickup, appointment scheduling, reclassification, storage, or redelivery.

We were billed $150 in accessorial charges for a liftgate. Add the appointment fee to the accessorials. Negotiate caps on accessorial charges in the contract.

Air Waybill (AWB)

A non-negotiable transport document issued by an airline or forwarder that serves as the contract of carriage and receipt for air cargo.

The shipper entered the 11-digit AWB number to track the shipment. The AWB shows the consignee and declared value. We need the AWB to clear cargo at destination.

Backhaul

A return trip that carries revenue freight on the way back from a delivery, reducing empty miles and improving asset utilization.

We found a backhaul to avoid running empty to Chicago. Backhaul rates are usually lower than headhaul rates. Optimize the routing guide to capture more backhauls.

Bill of Lading (B/L)

A transport document that is both a receipt and a contract of carriage; in ocean it can be negotiable (title) or non-negotiable (sea waybill).

The bank released the cargo upon presentation of the original B/L. Use a telex release to avoid couriering paper bills of lading. The B/L lists the shipper, consignee, and goods description.

Cabotage

The transport of goods or passengers between two points in the same country by a foreign carrier; often restricted by law.

The Jones Act limits maritime cabotage in the U.S. EU rules allow limited trucking cabotage after an international haul. Foreign airlines are generally prohibited from domestic cabotage flights.

Chassis Pool

A shared fleet of intermodal chassis available to motor carriers at ports and rail ramps, typically managed by a pool operator.

The terminal participates in a gray chassis pool. Chassis shortages spiked after the holiday surge. Join the pool program to reduce turn times.

Consolidation

Combining multiple small shipments into a larger load to lower per-unit transport cost and emissions.

We consolidated LTL orders into a single FTL. Ocean LCL consolidation cut export costs by 20%. Zone skipping is a form of parcel consolidation.

Cross-Docking

A process where inbound goods are sorted and loaded directly onto outbound transport with minimal or no storage.

The carrier cross-docked pallets within two hours. Cross-docking supports just-in-time delivery. We redesigned flows to cross-dock e-commerce returns.

Customs Brokerage

A licensed service that prepares and submits customs entries, pays duties/taxes, and facilitates cargo release for imports/exports.

The broker filed our entry and secured customs clearance. Provide the broker with the commercial invoice and HS codes. We switched brokers to improve cycle time.

Deadhead

Movement of a vehicle without revenue freight, often on repositioning legs; also called empty miles.

The fleet cut deadhead by optimizing backhauls. Deadhead miles hurt our operating ratio. Reposition containers to reduce deadheading.

Demurrage

Charges for keeping containers or cargo at a port or terminal beyond the free time allowed.

We incurred demurrage when the boxes sat at the terminal for seven days. Clear customs early to avoid demurrage. The steamship line increased demurrage tariffs during peak season.

Detention

Charges for holding a carrier’s equipment (e.g., container, trailer) outside the terminal beyond the free time allowed; distinct from demurrage.

We paid detention for keeping the container at our warehouse too long. Start the clock when the driver is checked in to calculate detention. Negotiate detention free time in the contract.

Drayage

Short-haul trucking that moves containers or trailers between ports/ramps and nearby warehouses or distribution centers.

Book drayage from the rail ramp to the DC. Congestion increased drayage turn times. The dray carrier needs a chassis with genset for reefers.

Dwell Time

How long assets, containers, or vehicles sit idle at a node (terminal, yard, dock) before moving again; a key efficiency metric.

Terminal dwell time dropped after gate automation. Reduce yard dwell to improve velocity. We track container dwell daily during peak.

Electronic Data Interchange (EDI)

Standardized, structured electronic exchange of business documents between systems (e.g., 204 load tender, 214 status, 210 invoice).

The carrier sends 214 updates via EDI. We added the 856 ASN to improve visibility. EDI fallback is API when a partner lacks a VAN.

Electronic Logging Device (ELD)

Hardware that automatically records a commercial driver’s Hours of Service to ensure compliance with regulations.

Our ELD flagged a potential HOS violation. We integrated ELD data to predict arrival times. Drivers certify their logs on the ELD each day.

Estimated Time of Arrival (ETA)

The projected arrival time of a vehicle or shipment at a destination, often adjusted dynamically.

The ETA shifted to 14:45 after a traffic delay. Customers want proactive alerts when ETA slips. Our predictive ETA uses GPS and historic dwell.

Federal Motor Carrier Safety Administration (FMCSA)

U.S. agency that regulates interstate trucking safety, including HOS, ELDs, driver qualifications, and carrier safety fitness.

The carrier’s FMCSA safety rating is Satisfactory. FMCSA updated guidance on ELD exceptions. Check the DOT number and CSA scores in FMCSA systems.

Free On Board (FOB)

An Incoterm for sea/inland waterway where risk and cost transfer when goods are loaded on the vessel at the named port.

The contract is FOB Shanghai; risk passes at vessel loading. Don’t use FOB for air or containerized LCL. We prefer FCA over FOB for containers.

Fuel Surcharge

A variable fee indexed to fuel prices that compensates carriers for fuel cost volatility.

The fuel surcharge increased with the DOE index. Our base rate excludes FSC. We review FSC schedules quarterly.

Geofencing

Creating a virtual perimeter around a location to trigger automated events (e.g., arrival, departure, detention start).

A geofence arrival started the free-time clock. We geofenced the yard to improve gate visibility. Alerts fire when trucks exit the geofence off-route.

Harmonized System (HS) Code

The standardized tariff classification code used by customs worldwide to identify products for duty and trade statistics.

Use HS code 9403.20 for metal furniture. Misclassification delays customs clearance. Update HS codes when parts change.

Hours of Service (HOS)

Legal limits on commercial driving time and required rest periods to promote safety, enforced via ELDs.

Plan the route to stay within HOS. The 30-minute break resets the on-duty clock. HOS constraints affect our delivery windows.

Hub-and-Spoke

A network design in which traffic consolidates at central hubs and is distributed to spokes, improving asset utilization.

Our LTL carrier runs a hub-and-spoke terminal network. We added a second hub to reduce linehaul miles. Airlines optimize banked hub schedules.

Incoterms (International Commercial Terms)

Standard rules (e.g., EXW, FCA, CIF, DDP) defining responsibilities, risk transfer, and cost allocation between buyer and seller in trade.

Quote DDP Paris to include duties and taxes. Under CIF, the seller arranges ocean freight and insurance. We trained sales on choosing the right Incoterms 2020 rule.

Intermodal

Moving freight using multiple modes (e.g., truck-rail-truck) under a single through move, often with an intermodal contract.

Convert long-haul truckload to intermodal to cut cost and emissions. The container moved rail from LA to Chicago, then dray to the DC. Intermodal ramps were congested this week.

International Maritime Organization (IMO)

UN agency that sets global maritime standards for safety, security, and environmental performance.

IMO 2020 capped sulfur in marine fuel. Carriers discussed new IMO decarbonization targets. Verify the vessel complies with IMO safety codes.

In-Transit Visibility

Real-time or near-real-time insight into a shipment’s location, condition, and status while moving.

We provide in-transit visibility via GPS pings every 15 minutes. Add temp sensors for cold-chain visibility. Exceptions trigger alerts when visibility shows delays.

Internet of Things (IoT)

Connected sensors and devices on vehicles, containers, and facilities that capture and transmit data for monitoring and automation.

IoT door sensors confirm trailer loading. We use IoT trackers for high-value cargo. Battery life is critical for IoT container tags.

Just-in-Time (JIT)

A lean inventory strategy that relies on precisely timed deliveries to minimize on-hand stock and waste.

JIT requires consistent transit and low variability. A missed JIT delivery can shut down the line. We added safety time to protect JIT.

Key Performance Indicator (KPI)

A quantifiable metric used to gauge performance against goals (e.g., on-time delivery, cost per mile, claims ratio).

Our on-time KPI is 98%. Track dwell time as a KPI for the port. We review carrier KPIs monthly.

Last-Mile Delivery

The final leg of a shipment to the end customer, often the most complex and costly portion of e-commerce logistics.

We optimized last-mile routes with dynamic routing. Customer promised ETA windows for last-mile improved NPS. Use micro-fulfillment to speed last-mile.

Less-Than-Truckload (LTL)

A service where multiple shippers’ freight shares trailer space through terminal networks; rated by class, weight, and distance.

Reclassing changed our LTL rate. The LTL carrier missed the pickup window. Consider volume LTL for eight pallets.

Manifest

A detailed list of cargo, containers, or passengers carried by a vehicle or vessel, used for operations and compliance.

Submit the export manifest before departure. The driver matched pallets to the manifest. CBP requested the vessel manifest data.

Multimodal Transport

Carriage using more than one mode under a single contract; often contrasted with intermodal where separate contracts may exist.

Our 3PL issued a multimodal bill covering truck and ocean. The freight moved road–sea–road under one liability regime. The term is used interchangeably with intermodal in some markets.

Non-Vessel-Operating Common Carrier (NVOCC)

A company that issues its own ocean bills of lading and sells space but doesn’t operate vessels; it buys capacity from ocean carriers.

The NVOCC filed our FMC tariff. We booked space via an NVOCC during peak. The NVOCC issued a house B/L.

Over, Short, and Damaged (OS&D)

A catch-all term for freight quantity discrepancies or damage found at delivery or during inspection.

File an OS&D report with photos. The receiver noted OS&D on the POD. Our claims team tracks OS&D rates by lane.

Proof of Delivery (POD)

Evidence that a shipment was delivered as intended, often a signed document or digital confirmation with time and location.

The customer requested the POD for invoice processing. E-POD with photos reduced disputes. The driver captured POD in the mobile app.

Reverse Logistics

Processes for moving goods from customers back to sellers or manufacturers for returns, repair, refurbishment, or recycling.

We set up a reverse logistics program for e-commerce returns. Consolidate returns to lower costs. Remanufacturing is part of reverse logistics.

Roll-on/Roll-off (Ro-Ro)

A method and vessel type for transporting wheeled cargo that is driven on and off via ramps.

We shipped tractors on a Ro-Ro service. Ro-Ro avoids lifting damage for vehicles. The port’s Ro-Ro berth is fully booked.

Service Level Agreement (SLA)

A contract that defines performance commitments (e.g., on-time %, pickup windows) and remedies for noncompliance.

The SLA requires 97% on-time delivery. Apply credits when SLA metrics are missed. We revised SLAs for peak season.

Standard Carrier Alpha Code (SCAC)

A unique 2–4 letter code used in North America to identify carriers for EDI, billing, and regulatory filings.

Use the carrier’s SCAC in the EDI 204. The SCAC on the BOL was wrong. FMCSA systems display the SCAC with the DOT number.

Telematics

Technology that transmits vehicle and equipment data (e.g., GPS, engine diagnostics, temperature) for tracking and analytics.

Telematics alerts flag harsh braking. Reefers send temp data via telematics. We use telematics to verify detention start.

Transloading

Unloading goods from one conveyance and loading onto another (e.g., ocean container to domestic trailer) to optimize mode, cost, or speed.

We transloaded imports at the port to 53-foot trailers. Transloading enabled zone skipping for parcels. Bulk transload from rail to truck cut transit time.

Transportation Management System (TMS)

Software that plans, books, tracks, and settles freight across modes, often integrating rates, carriers, and visibility data.

Our TMS automates carrier selection. Integrate the TMS with EDI and APIs. The TMS produces freight audit and pay files.

Twenty-foot Equivalent Unit (TEU)

A standard measure of containerized cargo capacity based on a 20-foot container; 1 FEU equals 2 TEU.

The port handled 1.5 million TEU last month. Our allocation is 500 TEU per quarter. The vessel capacity is 14,000 TEU.

Warehouse Management System (WMS)

Software that manages warehouse operations including receiving, putaway, picking, inventory control, and shipping.

The WMS directed wave picking to meet the carrier cutoff. Cycle counts improved accuracy in the WMS. We integrated the WMS with the TMS.

Yard Management System (YMS)

Software that orchestrates yard activities such as gate check-in, trailer moves, dock assignments, and yard checks.

The YMS reduced yard dwell by 20%. Drivers get dock doors via the YMS app. We aligned YMS geofences with detention rules.

Zero-Emission Vehicle (ZEV)

A vehicle that emits no tailpipe pollutants (e.g., battery-electric, hydrogen fuel cell), increasingly adopted for compliance and ESG goals.

We piloted ZEV drayage trucks at the port. Grants offset the ZEV purchase price. Plan for charging to scale ZEV fleets.

Zone Skipping

Consolidating parcels and injecting them deeper into a carrier’s network to bypass intermediate zones and reduce cost/transit time.

We zone-skipped to the destination DDU to save two days. Transloading enabled zone skipping on e-commerce lanes. Pricing improves at higher zone-skip volumes.