All industries use jargon and unique terminology. If you are involved in the shipping or logistics industry, there are a few terms you should keep in mind. Here are seven important freight shipping terms you should know.
The first of the eight important freight shipping terms you should know is freight class. Freight class refers to a specific code that people assign to each shipment. The National Motor Freight Trucking Association created 18 classes with numbers from 50 to 500. These codes are used to communicate a shipment’s density, since heavier loads have higher prices.
Another term you need to know is rollover. Rollover occurs when a container is not loaded onto a ship. In other words, the container was left behind at the port. When this occurs, the carrier will usually place the container on the next departing ship.
BOL stands for bill of landing. This bill is a legal document provided by the carrier that discloses information about the cargo, such as the types of goods, destinations, and quantities. The BOL can also serve as a receipt and proof of an agreement between the parties involved in the shipping process.
In the shipping and logistics industry, a DM stands for demurrage. A demurrage is a fee that container lines charge when you do not pick up your cargo on time. While you can store your containers at the port for a short period of time for free, the container line will charge a demurrage if you continue to leave the cargo at the port after this period.
In the trucking industry, you will often hear the drivers talk about FTL and LTL. FTL stands for full truckload, and it means that the trailer is full of cargo and is at maximum capacity. LTL stands for less-than-truckload, and it means that you only used a portion of the trailer’s space for cargo.
POD is an acronym for proof of delivery. People use this document to prove that the shipment arrived safely at its destination. Additionally, this document must be signed by the recipient of the cargo, and it must list the date of delivery.
Detention, or DT, is similar to demurrage. Detention is the fee that you pay when you pick up your shipping containers but do not return them to the shipping line on time.
There are many other terms in the logistics industry, and these are just a few of the basic terms you should know. If you want a company that provides international freight forwarding services and can take care of all your shipping, don’t hesitate to contact us at Diversified Transportation Services.
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