What is “freight” in the first place? What about LTL or bills of lading?
Learn the most common freight shipping terms, acronyms & jargon!
If you’re new to the exciting world of freight shipping, you’ve probably noticed that it – like many industries – has its own language.
Here, we’ve boiled down the most important freight-related terms to know while you’re working with us on your next shipment.
13 key glossary terms
Bill of lading (BOL)
A legal document that’s issued by the carrier to the shipper. The bill of lading serves two purposes: First, it details the type, quantity and destination of the goods being shipping, and two, acts as a shipment receipt when the cargo reaches its destination.
Carrier
Carriers are companies that transport freight from one place to another either using their own fleet of trucks or rented equipment.
Consignee
The consignee is the recipient and owner of the cargo being shipped.
Cross-border shipping
Any freight shipment that’s carried over the border between two countries – i.e., Canada and the US.
Estimated time of Arrival (ETA)
Like the name implies, it’s our best estimate at when your freight is expected to get to its destination.
Freight
Any goods transported in bulk by truck, train, ship or aircraft.
Full truckload (FTL)
This is the amount of freight needed to fill an entire trailer by weight limit or the total amount of space.
Less-than-truckload (LTL)
Simply put, it’s a shipment that requires less than a whole trailer. If you ship LTL, you will only pay for the portion of the trailer that your freight occupies, while other shipments fill the rest of the space.
Over-the-road (OTR)
This refers to shipping cargo over long distances using highways and interstates rather than local (city) roads.
Reefer
Slang term for a “refrigerated trailer” that uses temperature-controlled equipment to haul product that needs to be maintained at a certain climate.
Shipper
The shipper is the entity (or person) responsible for packing and preparing any cargo being sent. They also handle any paperwork required to ensure the shipment goes to the right place without major delays.
Third-party logistics (3PL)
Generally, third-party logistics companies handle a number of supply chain related tasks, like sourcing and managing transportation on their clients’ behalf, providing warehouse storage – and more
Warehousing
Refers to the practice of packaging and storing freight in a warehouse until it’s ready to be picked up by the carrier.