There are many different important terms and acronyms in the freight industry. They may be confusing for those who are not familiar with the industry. But if you want to be a true professional, you must know them. That is why we want to help you understand some of the most essential terms. They will help you better navigate the world of freight shipping.
LTL – Less Than Truckload
LTL refers to a shipment that isn`t large enough to require a full truckload. LTL carriers usually multiple smaller shipments into a single truckload. In case you don’t have enough goods to fill your truck, this is a really good way for your business.
FTL – Full Truckload
This acronym is for a shipment that requires an entire truck to transport it. These types of shipments are typically larger and cost more than LTL shipments (read about them above). As the entire truck is dedicated to the transportation of the specific shipment, this type of delivery is faster, more reliable, you have more control over your shipment and delivery times are better.
ETA – Estimated Time of Arrival
It shows the expected time of arrival because it is so important for shippers to know when their shipment will arrive at the destination.
FOB – Free On Board
This term helps to understand who is responsible for the goods. Responsibility can be on both the seller and the buyer. In case you see FOB Origin it indicates that now the buyer is responsible for the goods as soon as they leave the seller’s premises. And FOB Destination is when the seller is responsible for the goods until they arrive at the buyer’s premises.
BOL – Bill of Lading
We are sure you have heard this acronym before. It is a legal document that serves as proof of shipment and receipt of loads. This document is important not only for carriers, but also for shippers. It usually includes the names of the shipper and the carrier, the type of cargo shipped, and the destination.
DIM Weight – Dimensional Weight
This is the method used to calculate shipping costs based on the volume of a shipment (not its actual weight). You need it when the load is bulky but lightweight. The carrier calculates the DIM weight by multiplying the length, width and height of the shipment and dividing the result by a DIM factor.
POD – Proof of Delivery
This essential document confirms the delivery of the shipment to the consignee. It includes the date and time of delivery, the name of the person who received the shipment, and their signature.
NMFC – National Motor Freight Classification
This is a system that was created to classify freight based on its characteristics. There are such characteristics as weight, density and value. This classification is needed to determine the freight class. This method, in turn, determines the shipping rate.
Moreover, it doesn’t matter what role you play in this entire supply chain. You can be a broker, a carrier, a driver or someone else. You just must know these important acronyms. This knowledge will help you communicate effectively with clients, negotiate rates and make new connections. So please try to take a few minutes a day to learn more about freight shipping acronyms.