Glossary

Headhaul and Backhaul both refer to moving goods by trucks from point A to B, but there is a difference in terms of the prices offered by the truckers. Headhaul is usually done on the primary routes that carry the highest truck volumes, and Backhauls are the goods picked by the trucks on their return journeys. Truckers do not want their trucks to return without any cargo (Deadhead). Large trucking companies are more likely to keep their trucks busy on headhauls, as compared to their smaller peers. The competition between the trucking companies in US keeps heating and cooling, thus impacting the price difference between headhauls and backhauls.

The expression “Basing Point” in the US inland trucking refers to a nearest main city or major locality.  For example, a shipper wants goods to be trucked from Louisville, KY to a place to which the nearest city is Jacksonville, FL.  In this example, the basing point is Jacksonville, FL.

A bill of lading is a legal document that serves as a contract between a shipper and a carrier. The document states the detailed information (number of goods, type and destination) regarding the shipments being transported.

The term “break bulk” cargo is carried in unitized form such as palletized, bagged, strapped, bundled, drummed and crated and also non unitized general cargo (vehicles, steel etc.). Since the late 1960’s, containerization has continued to replace break bulk cargo. For less than Full Container Loads, pallets and flexible bulk containers are preferred by shippers and consignees, to reduce loading and unloading costs respectively.

Bridge Toll refers to the fee to be paid to cross the Toll Bridges.

The term “bulk” cargo relates to cargoes like Iron ore, Grain, Coal, Alumina and Phosphate are carried in loose form, (i.e. the cargo is not packed) and loaded directly in the holds of the ship. Bulk Cargo Containerization is also commonplace now.

It refers to a truck that is permitted by US regulations to move automobiles inside USA.  According to the Federal Register of the US Government, Federal regulations pertaining to vehicles that are classified as automobile transporters, and providing for a minimum vehicle length and allowable overhang lengths for these configurations, support the safe and efficient movement of autos by truck through States and across State lines.

Carload refers to a shipment that fills a rail car.

Cartage refers to hauling between locations in the same town or city or contiguous municipalities. The term may also be used as a short form of Cartage Fee that is typically charged by local transporters for the service of hauling lesser truckload (LTL) cargos via road or rail. Cartage fees are typically charged for short-haul transportation. Drayage is usually used for moving containers from ports or dry ports over short or longer distances to where these are unloaded.

Handling container needs a Chassis; usually truckers don’t have their own chassis and get that on rental from another company and dray containers. That rental value per day is Chassis rental. If they have their own Chassis, they still charge the same by the way.

Handling container needs a Chassis; usually truckers don’t have their own chassis and get that on rental from another company and dray containers. That rental value per day is Chassis rental. If they have their own Chassis, they still charge the same by the way.

A clean bill of lading is a document tendered by the carrier to confirm that the shipment is received in good order. Before the document is provided, the carrier does a thorough check to ensure that goods were delivered to the agreed destination as received.

The expression Common Carriers refers to all trucking companies who provide for-hire transportation of goods.

Port congestion is when ships arrive at the port and cannot load or unload as the port capacity is already full. The only choice for the ships it to queue up and wait for their turn to get a spot at the port. And the average waiting time at the ports has gone up.

Similarly Rail Congestion refers to when the Rail Yard runs out of space because there is too much cargo coming in to be loaded on Rail Cars than the space available at the rail yard.

Consignment refers to the goods shipped for the Consignee by the Shipper.  In other words, Consignee is where the goods or cargo is to be delivered.

Consignment refers to the goods shipped for the Consignee by the Shipper.

These are the following types of standard containers that are available in 40 feet and 20 feet lengths:

• General Purpose or Dry Containers
• Flat Rack Containers
• 45 Feet Containers
• Open Top Containers
• Double Door Containers
• High Cube Containers
• Reefer Containers
• Insulated Containers
• Half Height Containers
• Tank Containers

Located within port terminals, CFS or Container Freight Station, a warehouse owned by the shipping lines or the terminals where the imported containers are temporarily stored before these are dispatched to their destinations. The imported containerized cargo is often removed from the container and palletized and shrink wrapped for loading directly on the trucks, and the emptied containers and chassis are returned to the shipping lines.

CY stands for Container Yard that is a dedicated area within the discharge port where the imported containers are handed over by the shipping line to the shipper or its agent.  The containers to be exported are handed over in CY to the shipping line to be taken for loading on the ship.

Contract carriers provide for-hire truck transportation to specific, individual shippers, based on contracts.

The expression Cubage refers to volume of the freight, and is expressed in Cubic Feet in the United States.

Headhaul and Backhaul both refer to moving goods by trucks from point A to B, but there is a difference in terms of the prices offered by the truckers. Headhaul is usually done on the primary routes that carry the highest truck volumes, and Backhauls are the goods picked by the trucks on their return journeys. Truckers do not want their trucks to return without any cargo (Deadhead). Large trucking companies are more likely to keep their trucks busy on headhauls, as compared to their smaller peers. The competition between the trucking companies in US keeps heating and cooling, thus impacting the price difference between headhauls and backhauls.

If both the loading and unloading locations have a dock for cargo handling, that delivery is called Dock to Dock delivery. For FCL containers, Dock is essential and it’s very difficult to unload or load cargo into it due to height. A sliding ramp and a pallet jack are helpful in that scenario. If there is a dock it is easy for forklift to load/unload as well.

For loose cargo deliveries, we can hire a truck with a lift gate to handle cargo at loading/unloading location.

Drayage is usually used for moving containers from ports or dry ports over short or longer distances to where these are unloaded.

Cartage refers to hauling between locations in the same town or city or contiguous municipalities.  The term may also be used as a short form of Cartage Fee that is typically charged by local transporters for the service of hauling lesser truckload (LTL) cargos via road or rail. Cartage fees are typically charged for short-haul transportation.

Both Detention and Demurrage refer to the fee payable to the shipping line for the use of its container beyond the free time allowed by the shipping line.  Demurrage charges always relate to the time a container is inside a terminal. On the other hand, detention is a charge for extended use of the container outside the terminal until it’s returned to the shipping line.

Demurrage fee is charged by the shipping line to the shipper if the cargo is not picked up and stays on the terminal longer than the free time allowed by the shipping line, and the fault is that of the shipper.  The reason could be faulty documentation detected by the Customs and Border Protection (CBP) or delayed payment of the shipping line’s charges.

Both Detention and Demurrage refer to the fee payable to the shipping line for the use of its container beyond the free time allowed by the shipping line.  Demurrage charges always relate to the time a container is inside a terminal. On the other hand, detention is a charge for extended use of the container outside the terminal until it’s returned to the shipping line.

Detention refers to the time outside the port. If the consignee holds on to the carrier’s container beyond the allowed free days, detention will be imposed, in other words, a detention charge is applied when the container has been picked up, but not returned to the carrier. Detention charges also happen when you export containers. A user is charged detention when an empty container has been picked up for loading and is not returned within the set free days.

Dunnage is a padding material that is used to protect goods during shipping. Dunnage can be anything from bubble wrap, wood material, solid plastic, air pillows, foam, corrugated paper, etc. that provide cushioning so items stay in their place and protected from shocks.

FCL stands for Full Container Load, a load that occupies one full Container.

In the field of logistics, the expression Free Time refers to the number of free days allowed for the cargo to remain uncollected by the owner of the cargo from the shipping line, after the cargo is made available for collection.  Sometimes, the cargo is withheld by the shipping line itself for not being paid their dues, and at other times, it is some documentary discrepancy due to which the Customs and Border Protection disallows the owner to take possession of its cargo.  When cargo is not picked up during free time, the shipping line charges demurrage to the owner of the cargo, usually per day.

Free time is also allowed by the shipping line to the exporter, starting from taking possession of an empty container right up to handing over the filled container to the shipping line.  For the importers, free time refers to the time a container is empty returned to the shipping line.  When this free time is exceeded, the shipping line charges detention fees from the exporter or the importer, usually per day.

A freight bill, which is also referred to as a bill of lading, is a legal contract between the shipper and the carrier. The freight bill includes the necessary details of the transaction including description of the freight, the name of the shipper, the point of origin of the shipment, its weight, and the amount of charges and typically is signed by the shipper and the carrier. It is used by accounting personnel as support documentation to justify billing the shipper or the receiver, depending on the terms of the contract, for the successful delivery of goods.

While the information included on a freight bill varies among companies, certain details are usually included. The details include the name and contact information for the shipper and the receiver as well as a description of the goods shipped. The description of the goods shipped includes the quantity and type of goods. The carrier needs to know what it transports, and federal, state and local laws govern what can be shipped and how it can be shipped.

Freight Rail Congestion refers to when the Rail Yard runs out of space because there is too much cargo coming in to be loaded on Rail Cars than the space available at the rail yard.

FTL stands for one Full Truck Load.

Headhaul and Backhaul both refer to moving goods by trucks from point A to B, but there is a difference in terms of the prices offered by the truckers. Headhaul is usually done on the primary routes that carry the highest truck volumes, and Backhauls are the goods picked by the trucks on their return journeys. Truckers do not want their trucks to return without any cargo (Deadhead). Large trucking companies are more likely to keep their trucks busy on headhauls, as compared to their smaller peers. The competition between the trucking companies in US keeps heating and cooling, thus impacting the price difference between headhauls and backhauls.

The term hot load or hot shot is a type of trucking that carries relatively smaller, time-sensitive loads to accessible locations. Hot shot drivers are essentially the minutemen of trucking.

Inbound logistics comprises the movement of materials from vendors into production processes or warehouse facilities.

Initial Carrier is the transportation line that picks up a shipment from the shipper, and Initial Point is the location where a shipment originates.

Interchange point is a terminal where freight is transferred from one transportation line to another.

Intermodal freight transport involves the transportation of freight in an intermodal container or vehicle, using multiple modes of transportation (e.g., rail, ship, and truck), without any handling of the freight itself when changing modes.

The Intermodal terminal is the location where links between different transportation modes and networks connect.

Known damage refers to the damage discovered before or at the time of delivery of a shipment.

Known loss is the loss discovered before or at the time of delivery of a shipment.

This is a term relating with securing of the load or freight loaded on a truck, for preventing damage during transportation.   Lashing is the securing of cargo for transportation to minimize shifting. Items used for lashing include ropes, cables, wires, chains, strapping, and nets.

The Last Free Day is the last day of a period of free storage time in which the cargo can be picked up without paying demurrage.

LCL term is used when the cargo fills only a part of a container.  A container is thus carrying more than one or several LCL.

Lift Gate or Liftgate delivery Service involves a truck attached with a piece of equipment installed at the back, which enables the freight to be lifted from off the ground to the tailgate of the truck, or lowered from the truck’s tailgate to the ground.  This service is available at a fee.

LTL term is used when the cargo fills only a part of a truck’s capacity.  A truck is thus carrying more than one or several LTL cargos.

Live Load Drop (also known as live unload) is a term that means the driver will wait for the load to be unloaded from the truck before the driver can take away the truck.  Similarly Live Load Pick (also known as live load) is the situation where the driver will wait for the freight to be loaded on the truck.

This wait time for the driver is usually charged for, by the trucking company.

Live Load Drop (also known as live unload) is a term that means the driver will wait for the load to be unloaded from the truck before the driver can take away the truck.  Similarly Live Load Pick (also known as live load) is the situation where the driver will wait for the freight to be loaded on the truck.

This wait time for the driver is usually charged for, by the trucking company.

Loaded mile refers to the distance travelled with the loaded trailer or container. Truckers measure their performance through this expression.

Memorandum Bill of Lading is the duplicate copy of the original Bill of Lading. It can be used for receipt of cargo but does not show the freight amount.

A carload of different articles in a single consignment is called Mixed Carload.

The Outbound logistics relates with the movement of materials from the supplier’s warehouse to the customer.

Out of Gauge (OOG) cargo refers to freight exceeding the maximum dimensions of a standard container by either height, length, or width.

A pallet is a flat transport structure, which supports goods in a stable fashion while being lifted by a forklift. A pallet is the structural foundation of a unit load which allows handling and storage efficiencies.  Palletized load means that the freight has been mounted on pallets.  Palletization of freight allows a single forklift with driver to fast load and unload a container or a within a short span of time.  It also allows fast movement of goods within a warehouse.

This is a supplementary terminal-handling-charge that applies to the ports of Long Beach and Los Angeles for both FCL and LCL.  It is applied for pickups only during peak hours (weekday normal daytime hours). By encouraging off-peak pickups, it eases congestion during peak hours and covers the additional cost of nighttime operation.

Point of origin refers to the terminal at which a shipment is received by a transportation line from the supplier.

Port congestion is when ships arrive at the port and cannot load or unload as the port capacity is already full. The only choice for the ships it to queue up and wait for their turn to get a spot at the port.

Pre-Pull refers to a free night’s storage at the trucker’s yard before beginning to incur yard storage fees.  Pre-pulls are typically performed before the LFD (last freed day) to avoid paying demurrage.

Proof of delivery (POD) document enables a carrier to establish the proof of delivery to the consignee.  It is a delivery receipt copy of freight bill signed by consignee at the time of delivery. This is a legal proof of delivery.

Rail Congestion refers to when the Rail Yard runs out of space because there is too much cargo coming in to be loaded on Rail Cars than the space available at the rail yard.

A shipping document prepared at the point of origin showing the point of origin, destination, route, shipper, consignee, description of shipment, weight, charges and other data necessary to rate, ship and settle. It is forwarded with the shipment by mail, and also mailed/transmitted directly to the consignee.  Rail waybills often include tracking numbers so that the customer can check the status of the shipment.

If we pick up a container from a container yard that is coming to an inland location via rail this is known as rail yard pickup. Rail companies put these containers to a rail yard after picking up from rail’s lorry.

A shipping manifest is a list of all goods loaded onto a ship or other transport vessel. A manifest usually documents an entire shipment, regardless of the number of destinations and shippers. Manifests list the items, quantity, weight, and the destination name and address for each stop.

Consignment are the goods shipped for the Consignee by the Shipper. Important to note is that the shipper of the consignment could be the freight forwarding agent of the supplier or the Consignee itself.

These are the following types of standard containers that are available in 40 feet and 20 feet lengths:

• General Purpose or Dry Containers
• Flat Rack Containers
• 45 Feet Containers
• Open Top Containers
• Double Door Containers
• High Cube Containers
• Reefer Containers
• Insulated Containers
• Half Height Containers
• Tank Containers

This is the term relating with securing of the load or freight loaded on a truck, for preventing damage during transportation.

Tarping refers to material such as durable plastic or waterproofed canvas used especially for protecting exposed objects of the load on the truck.

1PL, 2PL and 3PL are commonly used terms in logistics. 1PL or First Party Logistics services are provided by the manufacturer or supplier itself, for carrying the goods from their warehouse to the buyer’s warehouse/premises. Second Party or 2PL Providers are the shipping or transportation companies that own/operate ships, airplanes, trucks, etc. 2PL companies mostly own assets (ships, airplanes, trucks, railways), but may carry leased assets too. 3PL or Third-Party Logistics companies do not have their own or leased modes of transportation, but they have strong linkages with 2PL companies that enable them to get preferred rates and cargo space.

One ton mile means one ton transported over one mile, and is a unit of measurement to evaluate the performance of trucking companies.

Transloading is a shipping term that refers to the transfer of goods from one mode of transportation to another en route to their ultimate destination. Often it is about replacing the containerized freight with loading on the truck, because transporting containers over long distances is costly, and also the container detention costs and chassis rental costs have to be minimized.

Working in trucking companies, the truck dispatchers coordinate and manage the schedules of truck drivers to ensure that cargoes are picked up and delivered in a timely manner. They receive calls for truck services and contact their fleet of truck drivers to arrange the pickups and deliveries.

The expression Volume Rate refers to lower rates offered by the carriers to those shippers who ship their freight in large volumes.

Weight sheets are the lists furnished by shippers to the weighing bureaus in which each article’s weight is mentioned in each consignment.

It means when professionals wearing “white gloves” inspect the delivery process and ensure that it is impeccable.  It is a premium delivery service, marked with special attention to details, especially with certain items that require handling with care during transportation.

Yard storage is the temporary storage of containers in a trucker’s gated yard, for a fee.