Welcome to the Freight Transportation Manager’s glossary, where we define key logistics terms. This guide
helps you understand the specialized terminology essential for efficient freight management and provides
insights to optimize your operations. Understanding freight transportation is crucial for enhancing logistics
operations, and given the multitude of terms and concepts, a clear glossary is essential. Here, you’ll find a
list of key freight transportation terms from A to C, tailored for professionals navigating the complexities
of the industry.

• A
• B
• C
• D
• E
• F
• G
• H
• I
• J
• K
• L
• M
• N
• O
• P
• Q
• R
• S
• T
• U
• V
• W
• X
• Y
• Z

A

Accessorial Charges
Accessorial charges are additional fees incurred for services beyond the standard transportation cost.
These charges can arise from various activities, such as loading and unloading, special handling of
oversized cargo, storage fees for goods that cannot be delivered immediately, or fuel surcharges during
periods of rising fuel prices. It’s crucial for shippers to be aware of potential accessorial charges when
budgeting for transportation costs to avoid unexpected expenses.
Advanced Shipping Notice (ASN)
An electronic notification sent from the shipper to the consignee to provide details of a pending delivery.
The ASN includes information such as the contents of the shipment, estimated arrival time, packaging
details, and any special handling requirements. ASNs play an essential role in supply chain visibility,
enabling consignees to prepare for incoming shipments and streamlining receiving processes.
Air Freight
Air freight is the method of transporting goods via aircraft, ideal for high-value or time-sensitive shipments.
This mode of transport is characterized by faster transit times compared to sea or ground transport.
However, it comes with higher costs, making it essential for businesses to weigh the urgency of delivery
against their budget. Air freight is commonly used for electronics, pharmaceuticals, and perishable goods
that require expedited handling.
Air Waybill (AWB)
A non-negotiable document issued by an air carrier that outlines the terms and conditions of
transportation for air cargo. The AWB acts as both a receipt for the shipper and as proof of the contract of
carriage. It includes details such as the shipper and consignee information, cargo weight, flight route, and
freight charges. The AWB also establishes the carrier’s liability for the goods during transport, as governed
by the Montreal Convention or Warsaw Convention.
Arbitration Clause
A provision in a logistics or freight contract that mandates the resolution of disputes through arbitration
rather than through litigation. Arbitration clauses are commonly included in international shipping
contracts to provide a quicker, less formal, and potentially less costly means of dispute resolution, often
governed by organizations like the International Chamber of Commerce (ICC).
Automated Manifest System (AMS)
A U.S. Customs and Border Protection (CBP) system that requires electronic transmission of manifest data
before shipments arrive in the United States. AMS is used to pre-screen cargo for security purposes,
ensuring compliance with CBP regulations. Failure to submit accurate AMS data in a timely manner may
result in penalties or shipment delays.

B

Bill of Lading (BOL)
The Bill of Lading (BOL) is a foundational document in freight transportation, serving multiple purposes: it
acts as a receipt for the cargo, a contract between the shipper and carrier, and a document of title. The
BOL includes detailed information about the shipment, such as the type of goods, quantity, and
destination. Understanding the nuances of this document is critical for ensuring compliance with legal
requirements and for resolving disputes related to cargo claims.
Breakbulk
Breakbulk refers to cargo that is transported in individual pieces rather than in standardized containers.
This type of shipping is necessary for oversized, heavy, or oddly shaped items that cannot fit into standard
containers, such as machinery or construction materials. Handling breakbulk cargo often requires
specialized equipment and procedures, making it vital for shippers to collaborate closely with carriers
experienced in handling such freight.
Broker
A third-party logistics (3PL) provider who arranges transportation services between shippers and carriers
without owning the actual assets, such as trucks or planes. Freight brokers leverage their expertise and
network to secure optimal rates and handle logistics arrangements on behalf of shippers. They are
regulated by the Federal Motor Carrier Safety Administration (FMCSA) and typically charge a commission
or fee for their services.
Bulk Freight
Bulk freight encompasses large quantities of unpackaged goods, typically liquids or loose materials.
Common examples include crude oil, chemicals, grains, and aggregates. Transporting bulk freight often
requires specialized tankers or bulk carriers designed for efficient loading and unloading. Given the nature
of bulk shipments, shippers must consider factors such as contamination risks, handling requirements, and
regulatory compliance to ensure safe and efficient transport.
Blank Sailings
Blank sailings occur when a carrier cancels a scheduled voyage, resulting in the omission of certain ports
or entire routes. This can be due to factors like low demand, operational adjustments, or unforeseen
disruptions. Shippers must stay informed about blank sailings to adjust their logistics plans accordingly
and mitigate potential delays.
Backhaul
Backhaul refers to the return trip of a transportation vehicle, such as a truck or ship, after delivering
cargo to its destination. Securing freight for backhaul routes is essential for carriers to maximize
efficiency and profitability by reducing empty miles and optimizing resource utilization.
Billing Adjustment
A billing adjustment involves modifying an invoice to correct discrepancies or accommodate changes in
services rendered. This may include rectifying billing errors, applying discounts, or updating charges due
to alterations in shipment details. Accurate billing adjustments are vital for maintaining financial integrity
and fostering trust between shippers and carriers.

C
Carrier
A carrier is an entity responsible for transporting goods on behalf of shippers. This can include trucking
companies, freight railroads, airlines, and shipping lines. Carriers can operate in various segments of the
transportation industry, each with specific capabilities and regulatory frameworks. Understanding the
strengths and limitations of different carriers is crucial for shippers when selecting a transportation partner
to meet their logistical needs.
Chargeable Weight
The weight used to calculate the shipping cost, which may be based on either the actual weight of the
shipment or its volumetric (dimensional) weight, depending on which is greater. Dimensional weight is
calculated by dividing the shipment’s volume by a carrier-specific factor, reflecting space utilization in
addition to weight. Chargeable weight is a key metric in pricing air and courier shipments, where space is
often more constrained than weight capacity.
Consignee
The party named on a Bill of Lading as the recipient of a shipment. The consignee is responsible for
receiving and potentially inspecting goods upon arrival. In international shipments, the consignee may
also be responsible for customs clearance and payment of duties, depending on the terms of sale (e.g.,
Incoterms).
Containerization
Containerization is the practice of using standardized shipping containers to facilitate the transport of
goods across various modes of transport. This method revolutionized the shipping industry by significantly
reducing loading and unloading times, minimizing cargo damage, and enhancing security. As global trade
continues to grow, containerization has become the backbone of international logistics, with ports and
shipping lines increasingly investing in container-handling technology.
Cross-Docking
Cross-docking is a logistics strategy where incoming shipments are immediately transferred to outgoing
transport, minimizing storage time and reducing inventory costs. This practice enhances the speed of the
supply chain, allowing for just-in-time delivery and improved customer satisfaction. Successful cross
docking requires efficient coordination among carriers, warehouses, and distribution centers to streamline
the flow of goods and maintain product integrity.
Customs Broker
A licensed agent or company that assists importers and exporters in clearing goods through customs.
Customs brokers manage documentation, calculate duties, and ensure compliance with all regulatory
requirements. They work closely with government agencies to expedite the import/export process and
often play a critical role in avoiding costly delays due to paperwork or regulatory non-compliance.
CBM (Cubic Meter)
CBM stands for Cubic Meter, a standard unit of volume measurement in shipping and logistics. It
represents the space occupied by cargo and is calculated by multiplying the length, width, and height of
the shipment. Determining the CBM is crucial for assessing shipping costs, especially for freight where
volume, rather than weight, dictates pricing.

D
Deadhead
Deadhead is the term for a vehicle’s return trip without any cargo, like when a truck, container, or vessel
moves empty to its next location. Deadhead trips are costly because they rack up miles without
generating revenue. Minimizing these miles is a priority in logistics to cut down on costs and reduce the
environmental impact.
Declared Value
Declared value is the value a shipper assigns to a shipment, which affects insurance and liability if there’s
any loss or damage. Setting a proper declared value is especially important for high-value items, as it
influences the carrier’s responsibility for compensation and helps both shippers and carriers handle risks
effectively.
Dimensional Weight
Dimensional weight, or volumetric weight, is a way of calculating shipping costs based on a package’s
volume rather than its weight. This pricing method, common in air and courier services, prevents
shippers from paying low rates for bulky, lightweight packages. It’s a way to ensure that cargo space is
used efficiently.
Drayage
Drayage is the short-haul movement of cargo, often between a port and a nearby warehouse, rail
terminal, or distribution center. As a vital part of intermodal logistics, drayage connects various parts of
the supply chain, helping ensure cargo is on time and reducing bottlenecks in the logistics process.
DDC (Destination Delivery Charge)
The Destination Delivery Charge (DDC) is a fee assessed by carriers to cover the costs associated with
delivering cargo to its final destination. This charge encompasses expenses like handling, unloading, and
administrative processes at the destination port or terminal. Understanding DDC is important for
shippers to accurately estimate total shipping expenses.
Dynamic Routing
Dynamic routing involves the real-time adjustment of transportation routes based on current conditions
such as traffic, weather, and shipment priorities. Utilizing advanced algorithms and real-time data,
dynamic routing enhances delivery efficiency, reduces transit times, and improves customer satisfaction
by adapting to changing circumstances.

E
E-Commerce Logistics
E-commerce logistics covers all the steps involved in moving goods for online retail, from inventory
management to order fulfillment and delivery. As online shopping grows, efficient e-commerce logistics
is key to meeting customer expectations for quick, accurate delivery, as well as managing returns
smoothly.
EDI (Electronic Data Interchange)
EDI enables the electronic exchange of documents between business partners, automating data transfers
like purchase orders and shipping notices. This technology reduces manual processing, minimizes errors,
and speeds up transactions—making it a staple in modern logistics for faster, smoother communication.
Expedited Shipping
Expedited shipping is a faster delivery option for time-sensitive shipments. Though it comes at a
premium cost, expedited services are crucial for high-priority goods, like perishable items or products
with strict deadlines. It’s about meeting urgent needs with speed and reliability.
Export Compliance
Export compliance means following the laws and regulations for shipping goods internationally. It
involves ensuring that all shipments meet export requirements, trade restrictions, and documentation
standards. Non-compliance can lead to fines, legal issues, and delays, so diligent management of export
processes is a must.

F
Freight Broker
A freight broker connects shippers with carriers, arranging transportation for goods. Brokers help bridge
the gap between supply and demand, especially for shippers who don’t have direct access to carriers.
They handle negotiations and logistics, allowing shippers to focus on their core business.
Freight Forwarder
A freight forwarder is a third-party expert in moving goods from point A to point B, often coordinating
multiple forms of transportation and handling customs paperwork. They make international shipping
easier by managing complex logistics and ensuring smooth transit through each step of the supply chain.
Fuel Surcharge
A fuel surcharge is an extra fee carriers add to account for fuel price fluctuations. This charge, usually a
percentage of the shipment cost, helps carriers cover unpredictable fuel expenses without frequently
changing base rates. It creates some stability for both carriers and shippers in the face of shifting fuel
prices.
Full Truckload (FTL)
Full truckload (FTL) shipping means an entire truck is filled by a single shipper, allowing goods to be
delivered faster and with fewer handling risks. FTL is ideal for large shipments and provides shippers with
more control over timing and security, making it a popular choice for bulk shipments.
FCL (Full Container Load)
Full Container Load (FCL) refers to a shipment wherein a single shipper utilizes the entire space of a
shipping container. This method is cost-effective for large shipments, offering advantages such as
reduced handling, lower risk of damage, and faster transit times compared to shared container services.
Freight Audit and Payment (FAP)
Freight Audit and Payment (FAP) is the process of verifying freight invoices for accuracy, ensuring that
charges align with contracted rates and services provided. This process includes validating shipment
details, identifying discrepancies, and facilitating timely payments, ultimately controlling costs and
maintaining strong carrier relationships.

G
Gateway
A gateway is a key entry or exit point for cargo moving internationally, typically a major port, airport, or
border crossing. Gateways serve as hubs where goods are processed, sorted, and sent along to their final
destination. In logistics, choosing the right gateway can be critical to balancing cost, speed, and reliability
in the supply chain.
General Average
General Average is a principle in maritime law where all parties in a shipping voyage—shipowner, carrier,
and cargo owners—share the cost of a loss that occurs to save the vessel and remaining cargo. In other
words, if a ship’s cargo needs to be jettisoned in an emergency, everyone contributes to cover the loss.
It’s a form of shared risk, making it essential for shipping partners to understand their responsibilities.
Gross Weight
Gross weight is the total weight of a shipment, including the goods, packaging, and any extra materials
like pallets or crates. This figure matters because it affects everything from transport costs to compliance
with safety regulations. Accurately calculating gross weight helps prevent delays and additional fees.

H
Harmonized System (HS) Code
The Harmonized System (HS) Code is a globally recognized code used to classify traded products. It
standardizes the description of goods for customs, which helps streamline import and export processes
and ensures compliance with international trade laws. HS Codes are essential for determining duties and
taxes on shipments, so accurate classification is a must.
Hub-and-Spoke Model
In logistics, the hub-and-spoke model refers to a central “hub” where goods are sorted, consolidated, or
distributed, and “spokes” that connect to regional or final destinations. This setup improves efficiency,
reduces costs, and simplifies complex shipping routes. Hubs handle high volumes, allowing spokes to
service more targeted, smaller routes.
Haulage
Haulage is the transport of goods over land, typically by truck. It refers to the movement of cargo from
one point to another, whether across long distances or within a local area. Haulage companies specialize
in different types of goods, such as bulk, refrigerated, or hazardous materials, and play a vital role in
connecting various segments of the supply chain.
Hazardous Material(Haz-Mat)
Hazardous material, or Haz-Mat, includes substances that can pose risks to health, safety, or the environment during transport—such as chemicals, flammable liquids, and gases. Handling Haz-Mat requires strict adherence to safety regulations, including special packaging, labeling, and documentation, to prevent accidents and ensure legal compliance. Safe Haz-Mat logistics are crucial to avoiding financial, environmental, and reputational impacts.

I
Incoterms
Incoterms (International Commercial Terms) are a standardized set of trade terms defining the
responsibilities of buyers and sellers in international trade. Each Incoterm specifies who covers costs,
handles risks, and manages logistics at each step of the shipping process. Choosing the right Incoterm is
essential for clear communication and avoiding misunderstandings in cross-border trade.
Intermodal Transport
Intermodal transport involves using multiple modes of transportation (such as truck, rail, and sea) to
move goods in a single journey. Containers allow seamless transfer between modes without handling the
cargo itself. Intermodal transport reduces costs, improves flexibility, and lowers environmental impact by
leveraging the strengths of each transportation mode.
Inventory Management
Inventory management is the process of tracking and controlling stock levels to ensure products are
available for customers without overstocking. Good inventory management helps reduce costs, meet
demand, and keep supply chains running smoothly. It’s essential for balancing storage expenses with
order fulfillment needs, especially in fast-paced industries.

J
Just-in-Time (JIT)
Just-in-Time (JIT) is an inventory strategy where goods are received or produced only when needed,
minimizing storage costs. It relies on precise timing and efficient supply chain coordination to prevent
shortages or excess inventory. JIT can improve cash flow and reduce waste, but it requires highly reliable
logistics to avoid disruptions.
Joint Rate
A joint rate is a single rate offered by multiple carriers for a shipment that requires transport across
different carriers’ networks. Joint rates simplify pricing for complex, multi-leg shipments by combining
costs from each carrier into one rate. This type of rate is especially useful for long-distance or cross
border shipments.

K
Kilogram (Kg)
Kilogram, abbreviated as kg, is the basic unit of mass in the metric system. It’s the standard unit of
measurement in logistics for calculating shipping costs, fuel usage, and more. Accurate weight
measurement is crucial for both compliance and cost efficiency.
Knockdown (KD)
Knockdown refers to items shipped in parts or flat-packed to save space. Once they arrive, these items
are assembled at the destination. Knockdown shipping reduces costs by maximizing container space,
often used for products like furniture or machinery that can be packed compactly.

L
Less-than-Truckload (LTL)
Less-than-Truckload (LTL) shipping is for shipments that don’t require a full truckload, allowing multiple
shippers to share space on one truck. LTL is ideal for small or medium-sized shipments, offering cost
savings compared to full truckload (FTL) shipping. It’s commonly used for regional and cross-country
freight.
Logistics Service Provider (LSP)
A logistics service provider (LSP) is a third-party company that manages some or all aspects of the supply
chain, from transportation and warehousing to customs and inventory management. LSPs offer
specialized expertise and resources, helping businesses streamline operations and focus on their core
activities.
Load Tender
A load tender is an offer from a shipper to a carrier, requesting the transport of a specific shipment. The
tender includes details such as the type of goods, pickup and delivery locations, and timeframes. Once
accepted, the carrier schedules the transport and prepares for pickup.
LCL (Less than Container Load)
Less than Container Load (LCL) denotes a shipment that occupies only a portion of a container, with
space shared among multiple shippers. LCL is ideal for smaller shipments that don’t require a full
container, though it may involve longer transit times and increased handling due to consolidation and
deconsolidation processes.

M
Manifest
A manifest is a detailed document listing all the items in a shipment. It includes information on each
package, such as weight, contents, and destination. Manifests are essential for customs, billing, and
tracking shipments throughout the supply chain.
Multi-Modal Transport
Multi-modal transport is the use of more than one mode of transport—like rail, road, and sea—to move
goods from origin to destination. Unlike intermodal transport, which mainly relies on standardized
containers, multi-modal can involve more diverse loading and unloading methods. This approach offers
flexibility and can optimize routes, especially for international shipments.
MRN (Movement Reference Number)
The Movement Reference Number (MRN) is a unique code assigned to each shipment for customs
tracking and documentation in the EU. It allows customs authorities to monitor and process shipments,
helping streamline border crossings and ensure regulatory compliance.
MC (Motor Carrier Number)
An MC (Motor Carrier) number is a unique identifier issued by the Federal Motor Carrier Safety
Administration (FMCSA) to carriers operating in interstate commerce. This number is essential for legally
transporting goods across state lines and is used to track a carrier’s safety record and compliance with
federal regulations. Having an MC number signifies that a carrier is authorized to operate and meets
FMCSA standards, making it a critical credential in the trucking and freight industry.

N
Net Weight
Net weight is the weight of the goods themselves, excluding packaging and any additional materials like
pallets. It’s a crucial metric for calculating costs and complying with shipping regulations, particularly for
certain types of cargo where weight limits are strict.
NVOCC (Non-Vessel Operating Common Carrier)
An NVOCC is a company that arranges the shipment of goods without operating its own vessels. NVOCCs
buy space on carriers, consolidate cargo from multiple shippers, and issue their own bills of lading. They
provide shippers with options and flexibility, especially in international trade.

O
Order Fulfillment
Order fulfillment encompasses the entire process of receiving, processing, and delivering customer
orders. It includes activities like picking, packing, shipping, and returns management. Efficient order
fulfillment is key to maintaining customer satisfaction, particularly in e-commerce where speed is a
priority.
Ocean Freight
Ocean freight is the transport of goods by sea, typically in containers on cargo ships. It’s one of the most
cost-effective options for long-distance shipping, especially for large, heavy, or bulk shipments. While
slower than air freight, it remains the backbone of global trade for many industries.

P
Packing List
A packing list is a document detailing all items included in a shipment, along with quantities, weights,
and dimensions. It serves as a reference for customs, the receiver, and logistics teams, helping confirm
that all items are accounted for and match the purchase order.
Pallet
A pallet is a flat structure, usually made of wood or plastic, used to stack and transport goods in a stable
way. Pallets make handling, loading, and storing goods easier and more efficient, especially in
warehouses and for long-distance shipping.
Port of Entry
A port of entry is a location where goods enter a country and are processed by customs. This could be a
seaport, airport, or land border crossing. Properly managing port-of-entry requirements, including
customs documentation and duties, is essential for timely and compliant imports.
Post-Dispatch Logistics
Post-dispatch logistics encompasses all processes that occur after a shipment has left the facility,
focusing on tracking, communication, and issue resolution during transit. This phase ensures timely
delivery by providing real-time shipment updates and managing any disruptions, such as delays or
damages. It also includes handling returns and analyzing performance metrics to improve future logistics
operations. Effective post-dispatch logistics enhance operational efficiency and customer satisfaction,
making it a crucial component of the supply chain.
Proof of Delivery (POD)
Proof of Delivery (POD) is a document or electronic record confirming that a shipment has been
delivered successfully. It includes details like the recipient’s name, signature, and delivery time, providing
a clear record for both the carrier and the shipper that the goods reached their destination.

Q
Quarantine
The isolation of goods, vehicles, or personnel to prevent the spread of diseases, pests, or contaminants.
It’s often enforced by customs or health authorities before cargo enters the supply chain.
Quarantine Inspection
A thorough inspection at ports, airports, or other entry points, where officials check goods for pests,
contaminants, or diseases. Any red flags mean cargo holds, causing potential delays in the supply chain.
Quick Ratio (Acid Test)
A financial measure that indicates a company’s ability to meet short-term obligations with its most liquid
assets. In logistics, it’s a key metric for ensuring reliable partners.
Quick Response (QR)
An inventory strategy aimed at reducing lead times and inventory levels by sharing demand data
throughout the supply chain. QR is popular in industries where demand shifts rapidly, like fashion.

R
Reefer
Short for “refrigerated container,” a reefer is a container with temperature control capabilities. Reefers
are essential for shipping perishable goods such as fruits, vegetables, and pharmaceuticals.
Reverse Logistics
The process of moving goods backward through the supply chain, typically from the customer back to
the manufacturer or retailer. This includes returns, recycling, and refurbishing.
Roll-On/Roll-Off (RoRo)
A method of cargo handling where vehicles, trailers, and wheeled cargo are loaded onto vessels by
driving on and off, rather than lifting. RoRo vessels are ideal for shipping cars, trucks, and heavy
machinery.
Rate Confirmation
A rate confirmation is a formal agreement between a shipper and a carrier that specifies the agreed
upon freight rate and terms for a particular shipment. This document outlines details such as payment
terms, load specifics, pickup and delivery instructions, serving as a binding contract to ensure clarity and
mutual understanding.

S
Shipper
The individual or entity responsible for arranging the transport of goods. Shippers initiate the supply
chain by coordinating cargo movement from origin to destination.
Slot Charter Agreement
A contract where a carrier rents container space on another carrier’s ship. Slot charters maximize cargo
space utilization and ensure even remote ports are accessible.
Supply Chain Visibility (SCV)
The ability to track and monitor every step of a product’s journey in real-time. SCV enhances decision
making, reduces disruptions, and builds trust with clients.
Sweeper Vessel
A secondary vessel dispatched to collect delayed containers missed by mainline vessels. Sweeper vessels
help keep shipments on schedule even when cargo misses its original sailing
Switch Bill of Lading
A second set of bills of lading issued for cargo that’s already on its way, often used in complex
transactions involving multiple parties or to modify the consignee’s information.

T
Tank Container
A specific container for transporting liquids, gases, or chemicals. These are often lined with stainless
steel and reinforced for stability, meeting strict international safety standards.
Transshipment
The process of transferring goods from one mode of transport to another or from one vessel to another
en route to their final destination. Transshipment hubs, like Singapore or Rotterdam, keep global cargo
flows efficient.
TEU (Twenty-foot Equivalent Unit)
A standardized measurement for cargo capacity, based on a 20-foot container. TEUs allow shipping
companies to gauge vessel and port capacities effectively.
Third-Party Logistics (3PL)
Outsourced logistics providers that handle warehousing, distribution, and transportation services for
other companies. 3PLs are integral partners in modern supply chains, reducing complexity and overhead.
TMS (Transport Management System)
A Transport Management System (TMS) is a software platform designed to plan, execute, and optimize
the physical movement of goods. It facilitates functions such as route planning, carrier selection, load
optimization, and real-time tracking, enhancing operational efficiency and providing valuable insights for
decision-making in logistics operations.
Transportation Spend Management (TSM)
Transportation Spend Management encompasses the strategies and practices employed to monitor,
analyze, and optimize expenditures related to transportation and logistics. By leveraging data analytics
and performance metrics, businesses can identify cost-saving opportunities, negotiate better rates, and
enhance overall supply chain efficiency.

U
Ultimate Consignee
The final recipient of a shipment. In documentation, the ultimate consignee ensures transparency,
clarifying who the actual end-user of the cargo will be.
Unit Load Device (ULD)
A standardized container used in air cargo for bundling smaller parcels together. ULDs optimize aircraft
space and improve loading efficiency.
Under Keel Clearance (UKC)
The distance between the keel of a vessel and the sea floor. UKC is crucial for vessel safety, especially in
shallow or restricted waters.
Uninterrupted Power Supply (UPS)
A backup power system that keeps electrical equipment running during power outages, especially critical
for cold storage and temperature-sensitive logistics.
USDOT
The United States Department of Transportation (USDOT) is the federal agency responsible for
overseeing national transportation systems, including highways, railroads, and air travel. It establishes
regulations, enforces safety standards, and allocates funding to ensure a safe and efficient transportation
infrastructure across the country.

V
Value-Added Services (VAS)
Additional services offered by logistics providers beyond the standard transport of goods, such as
repackaging, labeling, and quality inspections, to increase cargo value and tailor to client needs.
Vessel ETA/ETD (Estimated Time of Arrival/Departure)
Crucial timestamps in shipping, where ETA indicates the vessel’s expected arrival and ETD its departure
time. Staying on top of ETAs/ETDs helps reduce waiting times and demurrage fees.
Vessel Sharing Agreement (VSA)
An arrangement between shipping lines to share space on each other’s vessels. VSAs improve vessel
utilization, reduce operating costs, and increase route flexibility.
Volumetric Weight
A measure used in logistics to calculate shipping costs based on cargo size rather than weight, often
applied to lightweight but bulky items.

W
Waybill
A document accompanying cargo, providing essential details like shipper, consignee, and cargo
description. Unlike a bill of lading, a waybill is not a document of title.
Warehouse Management System (WMS)
A software solution that controls inventory, order picking, and warehousing processes. A WMS optimizes
warehouse efficiency, reducing labor costs and error rates.
Wharfage
A fee charged for using a wharf, paid by the shipper or carrier for loading and unloading activities at
ports.
Work-in-Process (WIP)
Items that are in production but not yet completed. In supply chains, WIP reflects goods that are mid
transit between raw material and final product stages.

X
X-Dock (Cross-Docking)
A logistics practice where products are received and quickly reloaded onto outbound trucks, minimizing
storage time. X-docking accelerates shipping and reduces inventory costs.
XML (Extensible Markup Language)
A format for structuring data in supply chain communications. XML enhances data sharing between
systems, supporting seamless transactions and visibility.
X-ray Scanner
Used in cargo inspection, X-ray scanners enable quick and thorough screening of shipments for security
purposes without unpacking containers.

Y
Yield Management
A strategy of adjusting prices or allocating resources to maximize profits, especially used by carriers to
set rates based on demand, cargo type, and available capacity.
Yellow Lane
In customs clearance, a yellow lane indicates that cargo is subject to documentation checks but not
necessarily physical inspection, streamlining the process for compliant goods.

Z
Zone Skipping
A strategy to lower shipping costs by bypassing certain distribution zones, especially effective in e
commerce where bulk shipments are sent directly to final zones for localized distribution.
Zoning Regulations
Local government rules governing the use of land and facilities. In logistics, zoning impacts where
warehouses, distribution centers, and other facilities can be located, influencing distribution networks.

Understanding freight transportation terminology is vital for anyone involved in logistics and supply chain
management. This glossary provides a comprehensive overview of essential freight and logistics
terminology, giving you a deeper understanding of the industry’s intricacies. Whether you’re shipping
goods domestically or internationally, being familiar with these terms will help you navigate the
complexities of the freight industry with confidence.