Common Freight Terms

Today we would like to define some common freight terms that come up on a day-to-day basis when doing business in the freight industry. These will help the "first-time shipper" better understand the overall process of shipping freight.


Accessorial Fee- Fees that are charged for any services that go above and beyond the standard transportation services provided by the carrier. Examples of these fees include charges for residential pick-ups or lift gate services.


Bill of Lading (BOL)- Document issued by the carrier describing the terms of the shipment. Information on the BOL includes the names and addresses of both shipping and receiving parties, but also a description of the freight being shipped. The form also holds the terms of the shipment and acts as a receipt, proving that the stated goods have been delivered. When shipping through a freight broker, ALWAYS use the BOL issued by the freight broker to ensure that you are only charged the discounted price stated by the broker.


Common Carrier- A transportation company that transports people or goods on designated routes at published rates.


Common Freight- Items or goods to be shipped, typically by a freight carrier. Items shipped by freight carriers normally weight 150 pounds or more.


Detention Fee- Fees charged by carrier for holding shipped cargo or containers for time past a specified pick-up date. Typically, persons receiving freight have about 7 days to pick up the freight if picking up the freight from the carrier.


Dimensional Weight- Technique of charging for freight that is large in size, but low in weight. The formula is Length x Height x Weight / Factor between 166 and 250 (determined by freight carrier).


Dispatch- To coordinate the movement of freight from origin to destination.


Flatbed- Trailer used for transporting goods having no sides. Flatbeds are typically used for shipping items that are too large to fit within a standard trailer.


Freight All Kinds (FAK)- Various items that are shipped together, but can be shipped under the same freight classification.


Freight Broker- Company that matches the shipping needs of an individual or company to the services of a freight carrier that can best handle those needs. These brokers use the volume of business they receive to negotiate large discounts with the freight carriers, in which, they pass along their customers.

Freight Forwarder- Company that facilitates the movement of goods between a shipper and a freight carrier.


Freight Quote- A preliminary cost estimate for a particular freight shipment, normally based off limited information.

Full Truckload (FTL)- Shipping with a truck at its full capacity, or at a level in which the freight carrier provides a truckload rate.


Hazardous Material- An item that can be dangerous to ship. The item must be shipped in a way that meets the rules and standards of the Department of Transportation.


Intermodal Container- Standardized freight shipping containers that can be used for all modes of transportation, including sea, train, and motor freight. Are generally 20 or 40 feet long.


Interline Freight- Freight moving through territories in which more than one freight carrier must be used to transport it.


Less Than Truckload (LTL)- Shipping of items that are too large to be considered parcel shipments (150lbs +) and too small to be considered a full truckload.


Lift gate- Machine at the rear of the truck used for loading and unloading freight. Usually used for items that are too large to be lifted by hand.


Reefer Trailer- A refrigerated trailer used for shipping temperature sensitive items.


Supply Chain- The life cycle of a product from raw material stage until it reaches the hands of the end-user. All stages of the supply chain should add value to the product.


Third Party Logistics (3PL)- Company that uses its vast logistics resources to outsource and coordinate logistics services for individuals and businesses.


Transit Time- Time taken for a shipped item to travel from its point of origin to its final destination.


Volume Shipping- Alternative shipping rate typically used for LTL items that are of a high density.

Freight Brokers VS Freight Carriers

Individuals and companies tasked with sending LTL or Truckload shipments are often faced with the decision of choosing to ship through a freight broker or a freight carrier. Many ask themselves, "Why would I use a freight broker over a freight carrier?". Well, unless you are a large business making many large shipments, it normally does not pay to deal with a freight carrier directly. The more business you give a freight carrier, the more discounts they will normally give you. Most companies out there, or even individuals, do not ship with the size or scope required to receive these discounts.

This is where the freight broker comes in. The freight broker is able to negotiate large discounts with the freight carriers because of the large volume of customers and available shipments the broker has. This equates to BIG SAVINGS for the clients of the freight broker. The broker also deals with a large pool of carriers in order to provide their clients with a large range of coverage, services, and options. These options also include the choice of using the cheapest carrier in the broker's pool of carriers. These small to medium-sized businesses can now achieve economies of scale that would otherwise be impossible on their own without adding new fixed costs.

Besides lowering your overall shipping costs, using a broker is like adding a shipping expert to your team. Your broker will assist you in making the right decisions for each individual shipment. They will lay out the appropriate services and options to get the job done right and on time. They also take care of all the other tasks, such as, creating the BOL (Bill of Lading) and dispatching the shipment. Freight brokers are here to make your life easier and allow you more time to take care of the parts of your business that you do best!

If you feel like you need to see it to believe it, then I challenge you to get a quote for your next shipment from your regular freight carrier and compare it to a discount freight quote from Shipping & Freight, Inc. Odds are that we will not only be able to use the same carrier, but also at a much lower rate! Oh, and make sure to tell your friends!

Freight Shipping Tips: Freight Classification

I am writing here today to address another common question we receive from customers at Shipping & Freight. When filling out the quote form on our website or speaking to an agent, customers are often confused by what Freight Classification is and two questions normally come to mind.

1. What is Freight Classification?

Every item that is shipped through a freight carrier is given a classification called a NMFC (National Motor Freight Classification) #. This number is a tool that carriers use in order to determine the classification for a specific item and to determine what they will charge their customer for moving that item. Some things that are taken into consideration when determining a classification are:

• What the commodity actually is


• What the commodity is made of (Wood? Metal? Ect.)


• How the commodity is packaged (Pallet? Crate? Ect.)


• What the weight and dimensions of the commodity are (Density)


• How easily the commodity is moved


• What is the liability for moving that commodity (Is the item expensive or cheap?)

For example:

A customer that is shipping a heavy dense item, such as a car engine on a pallet (Class 85), will pay a relatively cheaper per-pound cost than a customer that is shipping a fiberglass jeep top in a box (can be up to a Class 300). In essence, the lower the class number of an item, the cheaper it is per-pound to ship that item. I am sure there are one or two exceptions out there, but normally this is the case.

2. How do I figure out the Freight Class for the items I am shipping?

Freight classifications can be found in the most current NMFC catalogue. Unless you are trained in doing so, I would suggest letting a logistics professional handle this for you. If your classification is not correct, the freight carrier will end up rebilling you when the shipment is completed and this does not normally leave most customers very happy. If you are not trained in classifying commodities, I do suggest calling a freight broker so they can do it for you. With the correct information, they can give you an accurate classification and also give you a better shipping rate than you could get from a freight carrier alone!

If you have any questions on how to class a particular item, do not hesitate to give us a call! We can be reached at (727) 230-9048 or toll free for landlines at (877) 618-6058. We strive to make shipping freight a quick and easy experience for our customers!