Glossary

What is a 3PL? 3PL stands for third-party logistics, which is the process of outsourcing logistics activities to an external organization. 3PL solutions include fulfillment services like receiving, freight shipping, inventory management, warehousing, and related services.

Accessorial charges in transportation are fees levied by freight transportation carriers for services that go beyond standard pick-up and delivery. Accessorial charges or accessorial fees are usually applied when there is a need for additional labor, equipment, time, or fuel.

Antidumping duties (AD) are taxes imposed on imported goods to level the playing field against “dumping,” which occurs when a foreign producer sells a product in the United States at a price that is below what is considered normal value.

At its most basic level, an Application Programming Interface (API) is code that allows two software programs to communicate effectively. Companies using transportation management systems (TMS) leverage APIs to improve data accuracy, streamline communication, automate processes, and transmit information.

The international trade community uses ACE to report imports and exports and receive communication from the U.S. Customs and Border Protection (CBP) about cargo clearance and admissibility.

Autonomous logistics is defined as the use of technology devices to execute supply chain processes or movements of vehicles, freight, equipment, people, information, or resources without direct human control.

Backhaul in trucking refers to a freight load that is moved over all or part of the return trip to origin.

A bid board, load board or freight board is an online marketplace that connects shippers and brokers with logistics service providers (LSPs) to utilize available transportation capacity.

A bill of lading (BOL) is a legally binding contract of carriage document between a consignor/shipper and a logistics services provider (LSP). 

A customs bonded warehouse provides a secured place to store or manipulate any dutiable goods and inventory without payment of assigned duty fees.

Carrier management in transportation comprises a business’ activities to monitor and manage the performance of transportation service providers, or carriers.

Concealed damage claims occur when a receiver finds item damage or a product shortage in a shipment that has been delivered and unpacked, unpalletized, or opened. Like any other claim, the carrier is liable for loss or damages caused by the carrier’s negligence, but concealed damage claims can be more challenging to prove.

A countervailing duty (CVD) is an import tax imposed by governments to offset the impact and cost of unfair trading practices on domestic businesses. This duty is charged in addition to the stated amount in the Harmonized Tariff Schedule (HTS) as well as any additional fees required on each individual import.

Customs brokerage operations serve as a facilitator and a point of communication between parties involved in global trade and compliance. Customs brokerage services are crucial to the health of the global supply chain and reducing risk for shippers.

Declared value in transportation means the value placed on imported goods by the party importing those goods. The declaration of value for a shipment is set and submitted by the shipper importing the goods based on their knowledge of the items’ monetary value.

Demurrage is a fee shipping lines charge when a full container isn’t removed from the ship, port or terminal within the given free days.

Denied party screening is critical to protecting the reputation and customer satisfaction of every business that exports goods. To ensure alignment with international trade regulations, companies must confirm that no individuals or entities are listed as a denied party on the International Trade Organization’s (ITA) Consolidated Screening List (CSL).

Digital freight matching uses web- and mobile-based transportation marketplace platforms to execute real-time matches between a shipper’s freight and carriers’ available capacity.

Drayage is a specialty logistics service that carries freight over a short distance. It is an essential part of intermodal shipping and is usually part of a longer logistics process.

Dynamic routing, also called adaptive routing, refers to routes that are updated automatically using protocols and complex algorithms to calculate routing operations. Dynamic routing enables routers to select paths based on real-time information about the current status of the network If one section of the network fails, or experiences traffic congestion, data can be re-routed to circumvent that part of the network in real-time.

Electronic data interchange is the computer-to-computer exchange of standardized electronic business forms instead of using paper transportation documents, such as a purchase order or freight bill.

Food logistics manages the movement of food and beverage products through the supply chain.

Foreign trade zones (FTZs) are secure areas located in or near a U.S. Customs and Border Protection (CPB) port of entry, which allow businesses to eliminate, defer, or reduce duty payments on goods that are manufactured, assembled, or stored for import or export.

Free on board (FOB) refers to the point when the ownership, transportation costs, and risk liability for a shipment transfers from the seller to the buyer.

Freight All Kinds, or FAK, is a logistics term used by a freight transportation carrier to assign a single tariff classification or flat rate to a shipment made up of different commodities.

A freight bill is an invoice from a transportation provider to a shipper for the cost of transportation services for a freight shipment.

Freight brokers help shippers find the best solutions for each freight shipment at the best rates. Freight broker models include Cradle-to-Grave, Buy/Sell, Agent-Model, Digital, and Combination. Freight broker rates may be spot or contract and secured through digital freight matching.

What is a freight carrier? Freight carriers transport goods from one place to another by road, air, ocean, or rail. Domestic and international freight carriers move cargo over various distances and across distinct features of the world.

A freight claim is a legal demand for financial reimbursement. A shipper or consignee files a claim against a transportation carrier when there is an overcharge or a shipment is lost, damaged, or classified within more than 400 different claims causes.

A freight forwarder, forwarder, or forwarding agent is an intermediary between the shipper and the carrier, typically on international shipments. Freight forwarders provide the ability to respond quickly and efficiently to changing customer and consumer demands and international shipping (import/export) requirements.

Freight optimization ensures that a shipment is transported in the most efficient means at the expected service level.

In transportation, a fuel surcharge is an extra fee charged to shippers by the freight carrier to offset fuel cost increases. Fuel surcharges are based on the U.S. Energy Information Administration's (EIA) weekly reporting of fuel costs.

The Harmonized Tariff Schedule of the United States determines tariff classifications for imported goods based on name, use, or materials used in production.

Intermodal refers to a freight shipment or equipment that moves through more than one form of carrier (ship, rail, truck, air) during a single journey. Intermodal transportation moves freight with an intermodal container or vehicle without the freight itself being handled when changing modes.

Last mile is a term used in supply chain management and transportation planning to describe the last leg of a journey comprising the movement of people and goods from a transportation hub to a final destination. The final delivery destination is typically a personal residence but can also be a place of business. The focus of last mile logistics is to deliver items to the end user as fast as possible.

Less than truckload freight shipping (LTL) is used to transport relatively small freight that does not meet the specifications required for a full truckload (TL) shipment. This shipping method can be used when freight weighs between 150 and 15,000 pounds.

Line haul logistics refers to the movement of freight or goods across different modes of transport by land, air, waterway, between distant cities, ports or even warehouses. While the routes are fixed, the goods transported can vary in volume and weight, from small documents to heavy pallets. Line haul services require defined departure and arrival times.

A load board, also known as a freight board or freight matching service, helps to connect shippers and carriers. It is an online marketplace where truck owner-operators, shippers, and freight brokers can post the loads they have available as well as find available loads.

In less-than-truckload (LTL) shipping, “LTL class” references two different classification types: freight class and NMFC code. Both classifications are used by LTL carriers and logistics service providers (LSPs) to calculate rates, make shipping decisions, and maintain safe transportation practices.

Managed transportation relies on third-party logistics providers to streamline logistics activities, optimizes operations, and enhances supply chain efficiency. Incorporating a TMS facilitates data-driven decisions, improving overall supply chain management.

Multi-stop is a transportation move that requires cargo activities in addition to pick-up at origin and delivery at the final destination.

Multimodal optimization provides measures to control costs, reduce freight spend, improve business growth, and minimize fees and expenses related to inefficient operations across global and domestic transportation networks.

Multimodal transportation, or combined transport, is the movement of a freight shipment under a single carrier contract but using at least two transportation modes among road, rail, air, and ocean.

NVOCC in logistics is Non-Vessel Operating Common Carrier. An NVOCC provides the freight transportation services of a carrier without owning an ocean vessel.

Ocean freight is the process of exporting or importing cargo by sea using shipping containers. An ocean shipment is often the most cost-effective way to transport large quantities of goods across significant distances, making it a key player in international trade.

OS&D refers to a freight shipment where cargo is over, short, or damaged. OS&D incidents initiate a freight claim for financial reimbursement of affected cargo.

Partner Government Agency refers to any of the U.S. federal government agencies that work with U.S. Customs and Border Protection to regulate and govern the safety and quality standards of goods that enter the United States.

When shippers need to send goods to numerous spots within the same region, they can use pool distribution to make the process more economical. This logistics model provides a more efficient way to distribute products.

A private fleet is an in-house transportation operation used by an organization to move its own freight to customers, stores, warehouses, or distribution centers.

What is reverse logistics? Reverse logistics is the management and movement of goods, materials, and products from their traditional endpoint in the supply chain to an earlier stage or point of origin. A reverse logistics system design focuses on returning goods to recapture value, ensure proper disposal, or repurpose items for different uses.

Robotic process automation is software technology that automates supply chain processes that often require significant time and effort for humans to complete.

Route optimization creates transportation routes that provide the best delivery service at the lowest cost while maximizing vehicle capacity and driver time.

Sometimes referred to as a “delivery exception” or “shipping exception,” this transportation and logistics challenge can occur during any delivery, on any mode, or in any industry.

Shippers, or consignors, send goods by some form of conveyance over road, rail, ocean, or air.

A shipping manifest is used by ocean-going carriers to track goods shipped on one vessel.

A shipping order is a document issued by a shipping line to confirm a freight shipment’s booking on a vessel.

A spot rate is the short-term transactional freight price that a shipper offers to move a freight shipment from origin to destination.

The Standard Carrier Alpha Code (SCAC) is a unique two-to-four-letter code used to identify transportation companies. The Standard Carrier Alpha Code (SCAC) is a privately controlled US code used to identify vessel operating common carriers (VOCC).

A supply chain manager oversees the efficient production, manufacturing, and shipping processes of a company. They manage the lifecycle of product manufacturing, ensuring optimal supply, and oversee distribution from factories to warehouses. Using technology tools, they maintain global communication with teams and may specialize in areas such as demand planning or logistics.

Tariffs are a tax applied on imports or exports of goods from other countries. In the United States, these taxes are levied on the value of the commodity, including the freight and insurance costs of an imported good.

The Trade Facilitation and Trade Enforcement Act of 2015 (TFTEA) is a U.S. law that exists to ensure a fair and competitive trade environment.

Transportation management is the planning and management of logistics operations to move freight from one location to another while maximizing the use of transportation resources and controlling costs.

A transportation management system (TMS) is a logistics platform that uses technology to help businesses plan, execute, and optimize the physical movement of goods, both incoming and outgoing, and making sure the shipment is compliant and proper documentation is available. This kind of system is often part of a larger supply chain management (SCM) system.

Truckload is a road transportation mode used to move large freight shipments that fill the space or weight limit of standard 48-foot and 53-foot trailers.

Waybill definition: a document produced by a transportation carrier recording details & instructions relating to a freight shipment.

White Glove Delivery services provide premium, meticulous delivery services including in-home delivery, unpacking, installation, debris removal and real-time tracking, ensuring customer satisfaction and convenience.

Zone skipping consolidates individual packages or orders to fill truckload (TL) or less-than-truckload (LTL) capacity. Aggregated shipments are transported across multiple carrier zones to hub destinations for local final mile delivery.