Freight Shipping Glossary

A

• Accessorial Charges: Extra costs imposed by carriers for additional services or unique requests during freight shipping.
• Accessorial Services: Additional services provided by LTL carriers to meet specific shipping needs, such as liftgate delivery or interior pickup.
• Air Cushion Packaging: Packaging that uses air-filled cushions or bubble wrap to cushion delicate or breakable items, protecting them from shocks during transit.
• Air Freight: The transportation of goods by air, offering speed and efficiency for time-sensitive shipments and international trade.
• AEO (Authorized Economic Operator): A certification program that establishes a secure and compliant supply chain, recognized globally for streamlined customs procedures and reduced inspections.

B

• Barcode or QR Code Labels: Labels containing machine-readable codes for effective tracking and traceability of freight shipments.
• Bilateral Trade Agreements: Contracts between two countries establishing favorable trade terms and conditions, including reduced trade barriers and privileged market access.
• Bill of Lading (BOL): A legal document issued by a carrier to acknowledge receipt of goods for shipment and outlines the terms of the contract for transportation.
• Biodegradable Packaging: Packaging materials that can be naturally broken down and decomposed by microorganisms, reducing environmental pollution.
• Blockchain: A decentralized and secure digital ledger technology that enables transparent and tamper-proof recording of transactions in the freight shipping ecosystem.
• Bubble Wrap: A packing material with tiny air-filled bubbles that provide cushioning and shock absorption for delicate or fragile items.

C

• Cardboard Boxes: Containers made from cardboard that are commonly used for shipping various types of non-fragile goods.
• Cargo: Goods and merchandise being transported during freight shipping.
• Cargo Screening: Thorough screening procedures using advanced tools to identify and prevent the transit of illegal or dangerous goods.
• Cargo Tracking Systems: Technology, such as GPS tracking devices, used to monitor the real-time location and status of cargo during transit.
• Carrier: A company or individual responsible for transporting goods from the point of origin to the destination.
• Certificates of Origin: Documents that prove the country of origin of goods being transported. They are essential for determining import tariffs, trade agreements, and regulatory compliance.
• Cold Chain Shipping: The process of transporting perishable goods while maintaining precise temperature control throughout the supply chain to ensure their quality and safety.
• Commercial Invoice: A document that serves as both a billing statement for the buyer and a customs declaration. It provides information about the items being shipped, including their description, quantity, and value.
• Compliance: The adherence of freight shipping companies to laws, regulations, and industry standards to ensure legal and ethical operations.
• Compliance Violations: Failure to follow customs regulations and documentation requirements, which can lead to penalties, fines, or legal issues.
• Compostable Materials: Materials that can decompose into organic matter in composting conditions, contributing to soil enrichment and reducing waste.
• Consignor: The party or individual who ships the goods. Also known as the shipper.
• Consignee: The party or individual to whom the goods are being shipped.
• Contractual Agreements: Specific terms and conditions added to Incoterms to address unique aspects of a transaction.
• Corner Reinforcement: Techniques used to strengthen package corners to prevent damage during handling and stacking.
• Corrugated Boxes: Sturdy cardboard boxes with multiple layers of corrugation, providing increased strength and compression resistance for shipping purposes.
• Cost, Insurance, and Freight(CIF): An Incoterm where the seller is responsible for delivering goods to the named port of destination, including insurance and freight costs.
• Customs Brokers: Experts who assist with customs clearance and compliance.
• Customs Clearance: The process of complying with legal and regulatory requirements when goods cross international borders, allowing them to enter a country legally.
• Customs Declaration: Also known as customs forms or import/export forms, these documents contain vital information required by customs authorities. They often include details about the products, such as their origin, price, and classification.
• Customs-Trade Partnership Against Terrorism(C-TPAT): A certification program focused on supply chain security and mitigating security risks in international trade.

D

• Delivered Duty Paid(DDP): An Incoterm where the seller takes full responsibility for delivering goods to the buyer's designated place, covering all costs and customs formalities.
• Detention Costs: Charges incurred when freight is held at a location for an extended period, leading to delays in the shipping process.
• Documentation: The process of providing accurate and complete paperwork related to freight shipments, including customs forms, certificates of origin, bills of lading, and commercial invoices.
• Door-to-Door Service: The service of delivering goods directly from the shipper to the recipient's door without intermediate handling.
• Double-Boxing: The method of placing delicate items inside two strong boxes to create a shock-absorbing buffer zone for added protection.
• Dunnage: Materials used to secure and stabilize cargo during transportation.

E

• Electronic Data Interchange (EDI): The electronic exchange of business documents between different organizations using standardized formats, facilitating seamless data interchange.
• Emissions Standards: Regulations that restrict the amount of pollution emitted into the atmosphere during freight shipping, focusing on greenhouse gases, nitrogen oxides (NOx), sulfur oxides (SOx), and particulate matter.
• Environmental Protection Agency (EPA): A U.S. government agency responsible for enforcing rules related to fuel economy and emissions in various transportation sectors.
• Environmental Regulations: Rules and laws aimed at reducing the environmental impact of freight shipping operations, including emissions standards, fuel efficiency requirements, and sustainability initiatives.
• Ex Works(EXW): An Incoterm where the seller makes goods available at their premises, and the buyer is responsible for transportation, loading, and customs clearance.
• Expedited Shipping: A specialized shipping service that prioritizes speed, efficiency, and prompt delivery for time-sensitive shipments.

F

• Foam Inserts: Pieces of foam designed to cushion and protect delicate or irregularly shaped items during shipping.
• ‍Forklift: A powered industrial truck equipped with prongs used for lifting and moving heavy loads. Forklifts are widely used in handling operations, especially during loading and unloading of shipments.
• Free Carrier(FCA): An Incoterm where the seller delivers goods to a named carrier or location, and the risk transfers to the buyer at that point.
• Free Trade Agreements (FTAs): Comprehensive agreements between two or more countries aimed at eliminating or reducing trade barriers, tariffs, and quotas to promote trade.
• Freight Classification: The process of classifying goods based on their size, weight, density, and handling needs for appropriate pricing and handling.
• Fragile Items: Goods that are susceptible to damage during transportation, such as glassware and electronics, requiring careful and secure packaging and labeling.

• Freight Forwarder: An intermediary company that arranges and coordinates the transportation of goods on behalf of shippers, often utilizing multiple carriers and modes of transport.
• Freight Shipment: The process of transporting goods from one location to another using various modes of transport, including road, rail, air, and sea.
• Freight Shipping: The transportation of goods across various locations, facilitating global trade and connecting producers, suppliers, and customers worldwide.
• Fuel Index: A benchmark used by carriers to calculate fuel surcharges based on changes in fuel prices.
• Fuel Surcharges: Additional expenses imposed by carriers to cover price changes in fuel, fluctuating with global oil prices and market demand.
• Full Truckload (FTL) Shipping: A mode of freight transportation where the entire truck is dedicated to a single shipment from a single shipper.

G

• Global Positioning System (GPS): A satellite-based navigation system used for real-time tracking and precise location identification in the freight shipping industry.
• Good Distribution Practices(GDP): A set of rules and regulations governing the distribution process for pharmaceutical items and other temperature-sensitive goods to ensure their efficacy and safety.

• GPS Tracking Devices: Global Positioning System devices used to track the precise location of cargo.

H

• Harmonized System (HS) Codes: A standardized system for classifying goods for customs purposes.
• Hazardous Materials: Substances that pose potential risks to health, safety, and the environment, necessitating strict adherence to safety requirements, specific packaging, and proper labeling.
• Hazardous Waste Manifest: A document that tracks the transportation of hazardous waste from the generator to the disposal site.
• Hours-of-Service Rules: Regulations limiting the number of hours freight shipping drivers can work within specific time frames to prevent driver fatigue and improve road safety.

I

• Import Tariffs: Taxes imposed by customs authorities on imported goods. The amount of tariffs may be influenced by the country of origin and trade agreements.
• Incoterms (International Commercial Terms): Internationally accepted terms created by the International Chamber of Commerce (ICC) to specify the duties and responsibilities of buyers and sellers in cross-border trade transactions. They detail obligations, risks, expenses, and ownership transfer at each stage of the transportation process.
• Inside Delivery: An add-on service for freight shipping that involves moving the shipment from the delivery vehicle to a specific interior area at the delivery address.
• Interior Delivery Fee: A charge for delivering goods inside a building or facility rather than just to the curb or loading dock.
• Intermodal Freight Shipping: A logistics approach that combines multiple modes of transportation, such as trucks, rail, and sea, to optimize efficiency and reduce costs.
• International Air Transport Association (IATA): A trade association representing airlines worldwide, setting standards for air transport, including packaging and labeling requirements.
• International Civil Aviation Organization (ICAO) Technical Instructions: Standards and procedures for the safe transportation of dangerous goods by air.
• International Maritime Dangerous Goods (IMDG) Code: Guidelines for the safe maritime transport of dangerous goods.

• International Maritime Organization (IMO): A specialized agency of the United Nations responsible for the safety and security of shipping and the prevention of marine pollution.
• International Ship and Port Facility Security (ISPS) Code: A set of security measures developed by the International Maritime Organization (IMO) to safeguard ships, port facilities, and people involved in international maritime trade.
• International Organization for Standardization(ISO): International Organization for Standardization standards that provide guidelines for various aspects of quality control, environmental responsibility, and workplace health and safety.

• Internet of Things (IoT): A network of interconnected devices and sensors that collect and exchange data, enhancing visibility and decision-making in freight transportation.

J

• Just-In-Time Inventory: Inventory management strategy where goods are delivered exactly when they are needed for production.

K

• Key Performance Indicators (KPIs): Measurable metrics used to track and evaluate environmental performance, fuel usage, carbon emissions, and other sustainability-related data.

L

• Labeling: The practice of affixing clear and comprehensive labels to freight shipments, providing essential information about the origin and destination addresses, contents, handling instructions, and hazardous material indicators.
• Last-Mile Delivery: The final stage of delivery from a transportation hub to the customer's doorstep or preferred location.
• Leadership in Energy and Environmental Design(LEED) Accreditation: Leadership in Energy and Environmental Design certification for buildings and structures that meet high standards of sustainability and eco-friendliness.

• Less Than Truckload (LTL) Shipping: A mode of freight transportation that allows multiple shippers to share truck space and costs when shipping smaller quantities of goods.
• Liability Insurance: Insurance coverage that protects against lawsuits or claims resulting from accidents or damage caused by freight shipments.
• Liftgate Fee: An additional fee for using a liftgate to load or unload heavy or bulky shipments.
• Load Consolidation: Combining multiple smaller shipments into larger ones to reduce the number of trips and maximize transportation resources, leading to lower fuel use and emissions per unit.
• Local Regulations and Customs: Laws and requirements specific to the countries involved in the trade route.
• Logistics Networks: Well-established infrastructure and systems that optimize cargo loads and transportation routes to ensure efficient and reliable delivery of goods.

M

• Machine Learning: An application of artificial intelligence where systems learn and improve from experience without explicit programming, enabling data-driven decision-making in the freight shipping sector.
• Machine-to-Machine (M2M): Communication between devices or systems without human intervention, allowing seamless data exchange and automation in freight shipping processes.
• Modal Shift: Shifting transportation from one mode to another (e.g., from road to rail or sea) to achieve greater efficiency and reduce environmental impact.
• Multilateral Trade Agreements: Agreements involving multiple countries, negotiated and overseen by international bodies, with the aim of setting universal rules and standards that govern international trade.
• Multimodal Transportation: The use of multiple transportation modes, such as combining trucking, rail, and maritime transport, to optimize efficiency and reduce environmental impact.

N

• National Motor Freight Classification(NMFC): A system established by NMFTA to assign distinctive codes to various commodities based on their characteristics.
• National Motor Freight Traffic Association(NMFTA): An industry association that governs freight transportation regulations and practices in the United States.
• NIST Cybersecurity Framework: A framework developed by the National Institute of Standards and Technology to improve cybersecurity risk management.

O

• Ocean Freight: The transportation of goods via sea vessels, offering cost-effective and reliable shipping solutions for long distances.

P

• Packaging: The process of securely wrapping and protecting goods to ensure safe transportation and delivery.
• Packing List: A document that lists all the packages or containers comprising a cargo shipment. It includes information such as product names, quantities, weights, and packaging types.
• Packing Peanuts: Lightweight foam materials used to fill empty spaces within packages to immobilize objects and absorb impacts.
• Pallet Jack: A manual or electric device used to move pallets or heavy loads over short distances. It features two forks that slide under pallets, allowing operators to lift and move them easily.
• Pallets: Flat platforms made of wood, metal, or plastic, used to stabilize and pack cargo during shipping, making handling more efficient.
• Perishable Goods: Items that are subject to deterioration or spoilage over time, like food products and pharmaceuticals, needing special packaging and labeling to maintain their quality and freshness.
• Personal Protective Equipment (PPE): Gear worn by handlers to protect themselves from potential hazards during handling and transportation.
• Phishing Attempts: Deceptive attempts to trick individuals into revealing sensitive information through false emails or websites.
• Pipeline and Hazardous Materials Safety Administration (PHMSA): The US agency responsible for regulating the transportation of hazardous materials.
• Preferential Trading Schemes: Programs that offer specific trade benefits, such as lower tariffs, to certain countries or regions.
• Prohibited Goods: Items that are not allowed to be imported or exported due to legal restrictions or safety concerns.

R

• RFID (Radio Frequency Identification): A technology that uses radio waves to automatically identify and track items with RFID tags, enabling automated data capture and enhanced supply chain transparency.
• Real-Time Monitoring: Continuous monitoring of cargo during transit to detect any deviations or potential security issues.
• Refrigerated Trucks: Also known as reefer trucks, they are equipped with integrated refrigeration systems to maintain specific temperatures for perishable goods during transportation.
• Regional Trade Agreements (RTAs): Agreements between countries within a specific region to enhance economic integration and collaboration by reducing trade barriers and harmonizing regulations.
• Regulatory Compliance: Ensuring that all legal and regulatory requirements related to international trade and freight shipping are met. Proper documentation is crucial for compliance with customs laws and regulations.
• Residential Surcharges: Extra costs incurred when delivering freight to residential addresses instead of commercial or business locations.
• Restricted Goods: Items that require special permits or licenses for import or export.
• Rules of Origin: Specific criteria and requirements that determine the country of origin for goods in the context of trade agreements or preference schemes.

S

• SQF (Safe Quality Food): A certification program focusing on quality control and food safety in freight shipping, ensuring safe handling, transportation, and storage of food products.
• Safety Data Sheets (SDS): Documents containing comprehensive information about hazardous materials, including handling, storage, and emergency response procedures.
• Screening Processes: Techniques and technology used to identify potential risks and prohibited items in cargo.
• Secure File Transfer Protocol (SFTP): A secure method for transferring files over a network.
• Secure Sockets Layer (SSL): An encryption protocol used to secure data transmission over the internet.
• Shelf Life: The period during which a perishable product remains safe and retains its desired quality when stored under proper conditions.
• Shipper: Companies or individuals responsible for sending goods for transportation, either domestically or internationally.
• SmartWay Partnership: A voluntary program by the U.S. Environmental Protection Agency (EPA) that aims to improve freight supply chain efficiency and reduce emissions.
• SmartWay Program: A voluntary initiative managed by the EPA that promotes fuel efficiency and environmental performance in freight transportation.
• Specialized Shipping Services: Services that offer expertise and specialized equipment to handle unique cargo types, including hazardous materials, temperature-controlled shipments, oversized cargo, and fragile items.
• Streamlining: The process of making freight shipping operations more efficient by eliminating unnecessary steps, reducing errors, and optimizing resources.
• Supply Chain: The interconnected processes and activities involved in the production, distribution, and delivery of goods from manufacturing to consumption.
• Surcharges: Additional fees or charges applied to the base shipping rates for specific services or circumstances.

T

• Tamper-Evident Seals: Seals designed to indicate if a package or container has been tampered with.
• Tariffs: Customs duties or taxes imposed on imported or exported goods based on factors such as value, weight, or origin.
• Temperature-Controlled Shipping: Shipping method that maintains specific temperature conditions for perishable or temperature-sensitive items to preserve their quality and integrity.
• Tracking Technologies: Systems that provide real-time information about the location and status of shipments.
• Trade Agreements: Agreements between countries that provide trade advantages, such as reduced or eliminated import tariffs, to promote international commerce.
• Transit Times: The estimated time it takes for a shipment to travel from the point of origin to the destination.
• Transport Layer Security (TLS): A protocol that provides secure communication over a computer network.
• Transportation Management System (TMS): Software solutions that automate carrier selection, rate comparison, and shipment tracking to streamline freight transportation processes.
• Transportation of Dangerous Goods (TDG) Act: Canadian legislation governing the transportation of dangerous goods.
• Transported Asset Protection Association(TAPA): A certification program addressing asset protection and cargo security in the supply chain to prevent theft and tampering.

U

• UN Numbers: Unique identifiers assigned to hazardous materials to facilitate identification during transportation.
• UN Packaging Specifications: Guidelines for packaging hazardous goods issued by the United Nations.
• U.S. Food and Drug Administration(FDA) Regulations: Specific rules for the transportation of medicines, biologics, and certain food items to maintain product quality, storage conditions, and prevent contamination.

V

• Value-Added Services: Additional services provided by freight shipping companies that go beyond regular transportation, aiming to improve efficiency and add value to businesses.
• Value-Added Tax (VAT): A consumption tax levied on the value added to a product at each stage of its production and distribution.
• Virtual Private Networks (VPNs): Secure communication channels that enable encrypted data transmission over public networks.

W

• Warehouse Management Systems (WMS): Software platforms that automate and optimize warehouse operations, including inventory management, order fulfillment, and labor allocation.
• Warehousing and Distribution: Facilities that provide short-term consolidation, storage, and sorting of shipments. Warehouses and distribution centers ensure that goods are organized and managed effectively during transit, enabling smooth handling and flow of goods in the supply chain.
• Wooden Crates: Sturdy containers made of wood, used to transport large or delicate cargo, providing superior protection against impacts and pressure.
• WPA2 and WPA3: Security protocols for Wi-Fi networks that provide encryption and protection against unauthorized access.