Freight & Shipping Glossary
Plain-language definitions for the terms that show up in carrier contracts, freight invoices, and daily operations. Written for shippers, 3PLs, and operations leaders.
A
- Accessorial audit
- The process of checking accessorial charges on carrier invoices against tender data and contracted rates — confirming the charge should apply and was priced correctly, and disputing the ones that were not. See How to Audit Freight Accessorial Charges.See also: Freight invoice audit, Accessorial charge, Freight leakage · Freight Cost hub
- Accessorial charge
- Any freight charge beyond the standard point-to-point linehaul rate. Triggered by specific conditions at pickup or delivery — residential delivery, liftgates, appointments, waiting time, limited access, inside placement, and others. Accessorials are often the gap between a quoted rate and the actual invoice. See Freight Accessorial Charges Explained.See also: Accessorial audit, Minimum charge · Freight Cost hub
- Actual weight
- The physical weight of a shipment as measured on a certified scale. Compared against dimensional weight to determine billable weight. Carriers may re-weigh freight at their facility; discrepancies typically result in invoice corrections.
- Additional handling surcharge
- A parcel carrier surcharge applied to packages that cannot move through automated sort equipment. Common triggers include oversize dimensions, non-rectangular shapes, bags, rolls, and unstable packaging. Applied per piece, not per shipment. See Additional Handling Surcharge Explained.
- API (application programming interface)
- A method for software systems to exchange data on request, often in or near real time — used in logistics for rating, tracking, booking, and pulling invoice or shipment data from carriers and partners. Whether API access is available depends on the partner; the format matters less than whether the data is complete and timely. See Why Is Logistics Data So Hard to Get? EDI vs API.See also: EDI, 3PL reporting, Logistics data centralization · Logistics Data hub
- Appointment delivery
- A delivery where the carrier agrees in advance to arrive within a specific time window, rather than delivering at their discretion. Typically triggers an accessorial charge. Common for construction sites, retail stock rooms, and facilities that cannot accommodate unscheduled arrivals.
B
- Billable weight
- The weight a carrier uses to calculate the shipping charge—usually the greater of actual scale weight and dimensional weight. See Billable Weight Explained: Actual Weight vs Dimensional Weight.See also: Actual weight, Dimensional weight · Billable and Dimensional Weight Calculator
- Billable weight drift
- A gradual increase in the gap between declared weight and the weight carriers actually bill, usually from re-weighs, dimensional reclassification, or packaging changes. Left unwatched, it quietly raises cost per shipment. Tracking the billed-to-actual weight ratio over time surfaces it. See LTL Reweigh and Reclass Charges.See also: Reweigh, Reclass, Dimensional weight · Freight Cost hub
- Bill of lading (BOL)
- The primary shipping document in LTL and truckload freight. Serves simultaneously as a receipt of goods, a contract of carriage between shipper and carrier, and a title document. Required for all LTL shipments. Discrepancies between the BOL and actual freight often lead to invoice adjustments or claims complications.
- Broker (freight broker)
- An intermediary that arranges transportation between a shipper and a carrier without operating trucks itself. Brokers provide capacity access and rate options; the trade-off is less direct control and visibility than a contracted carrier relationship. Which partner type fits depends on volume, lane mix, and how much execution you want to own. See How to Choose the Right Logistics Partner.See also: 3PL, 4PL, Freight forwarder, Managed transportation
C
- Carrier contract
- A pricing and operating agreement between a shipper and a carrier. Sets base rates, accessorial charges, billing rules, liability terms, fuel surcharge mechanisms, and renewal mechanics. A contract is both a pricing framework and an operating rulebook — how it converts real shipments into invoiceable charges matters as much as the headline rate. See How to Evaluate Carrier Contracts.See also: Carrier contract review, Carrier rate analysis · Carrier Contracts hub
- Carrier contract review
- Examining a carrier agreement for how it behaves on real shipments — not just the base rate, but discounts, minimums, fuel mechanics, accessorial triggers, billing weight, and renewal terms. The goal is to predict the invoice and find negotiation leverage before signing or renewing. See How to Evaluate Carrier Contracts or run the Carrier Contract Scorecard.See also: Carrier rate analysis, Accessorial charge, Minimum charge · Carrier Contracts hub
- Carrier contract scorecard
- A structured way to rate a carrier agreement across multiple dimensions — landed cost, billing predictability, operational fit, transit reliability, coverage, claims protection, and pricing stability — so weak areas become specific negotiation points. Use the free Carrier Contract Scorecard.See also: Carrier contract review, Carrier rate analysis · Carrier Contracts hub
- Carrier invoice variance
- The difference between what a shipment should have cost under the contracted rate and what the carrier actually billed. Recurring variance signals leakage — misapplied accessorials, billed-weight gaps, or duplicate charges. Catching it requires matching invoices to shipments and rates. See Freight Invoice Audit Checklist.See also: Freight invoice audit, Carrier invoice audit, Invoice-to-shipment matching, Freight leakage · Freight Cost hub
- Carrier invoice audit
- Reviewing a carrier's invoice line by line against shipment records, quotes, and contract terms before approving payment — the carrier-side name for freight invoice audit. See Freight Invoice Audit Checklist.See also: Freight invoice audit, Freight bill audit, Accessorial audit · Freight Cost hub
- Carrier mix
- The distribution of freight volume across the carriers and modes a shipper uses. A shift in mix — more expedited, more parcel, a new carrier on a lane — changes effective cost even when no single rate changed. Tracking mix is part of explaining cost movement over time. See Freight Cost Creep.See also: Carrier rate analysis, Lane · Carrier Contracts hub
- Carrier rate analysis
- Modeling how a carrier's rates, minimums, fuel, and accessorial rules perform against your real shipment profile, then comparing carriers on estimated landed cost rather than headline rate tables. It turns a rate table into an expected invoice. See How to Evaluate Carrier Contracts.See also: Carrier contract review, Minimum charge, Fuel surcharge · Carrier Contracts hub
- Carrier scorecard
- An ongoing performance report comparing carriers on cost, on-time delivery, claims, and exceptions using your own shipment and invoice data. Distinct from a one-time contract scorecard — this tracks how carriers actually perform over time and depends on clean, centralized data.See also: Transportation KPI, Freight dashboard · Logistics Data hub
- Chargeable weight
- See billable weight.
- Cost per mile
- Total freight cost divided by miles travelled, used mainly for truckload and lane-level analysis. Useful for comparing lanes and carriers on longer hauls, but less meaningful for LTL and parcel where weight, class, and accessorials drive cost more than distance.See also: Cost per shipment, FTL · Freight Cost hub
- Cost per pound
- Total freight cost divided by billable weight. A normalizing metric for comparing shipments of different sizes, but it can hide minimum-charge and accessorial effects on small shipments. Best read alongside cost per shipment rather than on its own.See also: Cost per shipment, CWT, Billable weight · Freight Cost hub
- Cost per shipment
- Total freight cost divided by the number of shipments. The right denominator for diagnosing cost increases when volume is flat — it isolates per-order cost movement that total spend hides. Trending it over time is the core check for freight cost creep. See Freight Cost Creep.See also: Cost per pound, Cost per mile, Freight cost creep · Freight Cost hub
- CWT (hundredweight)
- A pricing unit equal to 100 lbs, widely used in LTL freight. Rates are quoted as dollars per CWT across weight breaks. A shipment rated at $25/CWT at 500 lbs would produce a $125 linehaul charge before fuel and accessorials. See also weight break.
- Cubic capacity
- The total volume of a shipment measured in cubic inches, cubic feet, or cubic metres. Used to calculate dimensional weight for parcel carriers and density for LTL rating. Carriers monetize cube because lightweight, bulky freight consumes trailer or sort capacity that could otherwise carry denser freight.
D
- Data mapping
- Defining how fields from one system correspond to fields in another — for example, matching a carrier's invoice fields to your shipment record so the two can be linked. The unglamorous step that makes a centralized freight dataset usable. See A Field-Level Guide to Centralizing Logistics Data.See also: Data normalization, EDI, API · Logistics Data hub
- Data normalization
- Standardizing values so the same thing is recorded the same way everywhere — consistent carrier names, accessorial codes, units, and location types across sources. Without it, comparing quoted to billed cost is unreliable and exceptions hide in formatting differences. See A Field-Level Guide to Centralizing Logistics Data.See also: Data mapping, Logistics data centralization · Logistics Data hub
- Density
- The ratio of shipment weight to volume, expressed as pounds per cubic foot (lb/cu ft) or kilograms per cubic metre. The primary input for determining LTL freight class under a density-based rating system. Higher density generally means a lower (cheaper) freight class.
- Detention
- See waiting time / detention.
- DIM divisor
- The number used to convert cubic inches (or cubic centimetres) into dimensional weight. The standard North American courier divisor is 139 for imperial (inches to pounds) or 5,000 for metric (cm to kg). Some carriers use different divisors for international shipments. The divisor is one of the most important terms to confirm in a carrier agreement. See Billable Weight Explained.
- Dimensional weight
- A calculated weight based on package size rather than actual mass, used when freight is light but volumetrically large. Formula: L × W × H ÷ DIM divisor. Carriers bill the higher of actual weight or dimensional weight. Also called DIM weight or volumetric weight. See Billable Weight Explained or use the Billable and Dimensional Weight Calculator.
- Duplicate freight invoice
- The same shipment billed more than once — a common and recoverable form of freight leakage, often caused by re-billing, system errors, or a corrected invoice that does not void the original. Invoice-to-shipment matching catches duplicates automatically. See How to Detect Freight Leakage.See also: Freight invoice audit, Carrier invoice variance, Freight leakage · Freight Cost hub
- Dunnage
- Material — foam, packing paper, airbags, wood blocking — used to fill void space inside a shipment or trailer and prevent freight from shifting during transit. Adequate dunnage is often a condition of carrier liability coverage; inadequate dunnage is a common exclusion cited in damage claims.
E
- EDI (electronic data interchange)
- A long-established standard for exchanging structured business documents between systems — purchase orders, shipment notices, invoices — typically in batches. Mature and widely supported across carriers and 3PLs. The practical question is usually not EDI versus API but whether a given partner can deliver the data you need, completely and on time. See Why Is Logistics Data So Hard to Get? EDI vs API.See also: API, 3PL reporting, Logistics data centralization · Logistics Data hub
- ERP (enterprise resource planning)
- The core business system of record for orders, inventory, and finance. Freight data often needs to connect to the ERP so cost can be tied back to orders and customers — but an ERP is rarely a complete source of logistics data on its own. See A Field-Level Guide to Centralizing Logistics Data.See also: TMS, WMS, Logistics data centralization · Logistics Data hub
- Exception flag
- An automatic marker raised when a record breaks an expected rule — an invoice above the quoted rate, billed weight above declared weight, a duplicate, or a missing field. Exception flags turn invoice audit from a manual review into a short worklist, but only work when the underlying data is centralized and clean.See also: Freight invoice exception, Freight dashboard · Logistics Data hub
F
- Fourth-party logistics (4PL)
- A partner that manages a shipper's entire logistics operation — including other providers such as 3PLs and carriers — acting as a single point of coordination. More strategic and hands-off for the shipper than a 3PL, but with less direct control. Whether a 4PL fits depends on scale and how much you want to outsource. See How to Choose the Right Logistics Partner.See also: 3PL, Broker, Managed transportation
- Freight class
- A standardized rating category from 50 to 500 assigned to LTL freight, based on density, stowability, handling complexity, and liability. Higher class means a higher rate per pound. Determined by the NMFC system or a carrier's own density-based schedule. Use the Billable and Dimensional Weight Calculator for a density-based class estimate.
- Freight cost creep
- Gradual drift in freight cost from many small changes — rate, fuel, accessorials, packaging, mix — that compound quietly until the quarterly number is higher and nobody can name the cause. Diagnosed by trending cost per shipment over time, not by reading single invoices. See Why Freight Costs Keep Increasing.See also: Freight cost shock, Freight leakage, Cost per shipment · Freight Cost hub
- Freight cost shock
- A sudden, visible jump in freight cost — a large invoice, a re-rated shipment, a new surcharge — that is easy to notice but can be hard to explain. Diagnosed shipment by shipment, in contrast to the gradual drift of cost creep. See What Causes Freight Cost Shock?See also: Freight cost creep, Carrier invoice variance · Freight Cost hub
- Freight dashboard
- A reporting view that tracks freight cost and performance — cost per shipment, accessorial share, billed-to-actual weight, on-time delivery — from centralized data. Only as good as the data behind it; a dashboard on scattered or inconsistent data reports noise. See A Field-Level Guide to Centralizing Logistics Data.See also: Transportation KPI, Carrier scorecard, Exception flag · Logistics Data hub
- Freight forwarder
- A partner that arranges and coordinates the movement of freight on a shipper's behalf, often across modes and borders, and may consolidate shipments. Common in international and multi-modal shipping. Choosing one is part of the broader partner decision. See How to Choose the Right Logistics Partner.See also: Broker, 3PL, Managed transportation
- Freight invoice audit
- Checking carrier invoices against what should have been billed — the contracted rate, the tendered services, and the shipment's actual weight and dimensions — and disputing the differences. Effective audit depends on matching each invoice to its shipment and rate. See Freight Invoice Audit Checklist.See also: Freight bill audit, Carrier invoice audit, Accessorial audit, Invoice-to-shipment matching · Freight Cost hub
- Freight bill audit
- Same process as freight invoice audit — verifying that a carrier or 3PL freight bill matches shipment facts, agreed pricing, and delivery conditions before payment. Common in finance and AP workflows. See Freight Invoice Audit Checklist.See also: Freight invoice audit, Carrier invoice audit, Freight leakage · Freight Cost hub
- Freight invoice data
- The line-level detail of what a carrier billed — linehaul, fuel, accessorials, adjustments — for each shipment. Hard to use until it is normalized and linked to the original shipment and quote, after which quoted-versus-billed comparison and exception detection become possible. See Centralize the Data First.See also: Shipment data, Rate data, Invoice-to-shipment matching · Logistics Data hub
- Freight invoice exception
- An invoice that breaks an expected rule — billed above the quoted rate, billed weight above declared, a duplicate, or an accessorial that should not apply. Exceptions are the worklist freight cost control runs on; surfacing them automatically requires clean, linked data.See also: Exception flag, Freight invoice audit, Carrier invoice variance · Freight Cost hub
- Freight leakage
- Recurring freight overspend that nobody decided to incur — billing errors, duplicate invoices, accessorials that should not apply, billed weight above actual, and charges drifting above contracted rates. Distinct from the structural cost the network genuinely requires. See How Operators Can Detect Freight Leakage.See also: Freight invoice audit, Accessorial audit, Freight cost creep · Freight Cost hub
- Fuel surcharge (FSC)
- A variable charge added to freight bills to offset carrier fuel costs. Typically indexed to a published diesel reference (such as the EIA U.S. weekly diesel average) and adjusted on a weekly or monthly schedule. Fuel surcharges stack on top of linehaul rates and often interact with accessorials and minimums. The indexing mechanism should be confirmed explicitly in any carrier agreement.See also: Carrier rate analysis, GRI · Carrier Contracts hub
- FTL (full truckload)
- A shipment that occupies or reserves an entire trailer — typically 48 or 53 feet. Priced per load rather than per pound or CWT. Unlike LTL, truckload freight does not transfer between terminals. Generally used for shipments over 10,000–15,000 lbs or when time-sensitivity or product sensitivity justifies exclusive trailer use.
G
- GRI (general rate increase)
- A carrier-initiated, across-the-board increase in base rates, typically announced annually and taking effect in January. GRIs are applied as a percentage increase on top of current rates. Whether and how a GRI applies mid-contract is a key term to negotiate and clarify before signing a carrier agreement.See also: Carrier rate analysis, Freight cost creep · Carrier Contracts hub
H
- Hundredweight (CWT)
- See CWT.
I
- Inside delivery
- A delivery that requires the carrier to bring freight beyond the threshold of the receiving door — into a warehouse interior, up a staircase, or to a specific floor or room. Typically an accessorial charge. When a customer promise includes inside placement, the carrier contract should explicitly price it.
- Interline carrier
- A carrier that handles part of a shipment's route before handing it off to another carrier for completion. Common in remote, thin, or cross-border lanes. Interline arrangements can affect transit times, liability continuity, and the ability to trace or dispute charges. Lanes handled via interline should be identified and priced explicitly in carrier agreements.
- Invoice-to-shipment matching
- Linking each carrier invoice to the shipment it belongs to and the rate that should have applied, using a common shipment reference. The foundation of freight invoice audit — without it, duplicates, billed-weight gaps, and accessorial drift are caught by hand, one invoice at a time. See Centralize the Data First.See also: Freight invoice audit, Shipment data, Carrier invoice variance · Logistics Data hub
L
- Lane
- A specific origin–destination pair or corridor used to describe freight routes and carrier pricing structures. Lane-level analysis — looking at cost, reliability, and coverage by individual O-D pair — is more meaningful than network averages when evaluating a carrier agreement.
- Liftgate
- A hydraulic platform at the rear of a delivery truck that lowers freight from the truck bed to ground level. Required when there is no loading dock at the delivery point. An accessorial charge applies, billed per stop or per shipment. See What Is a Liftgate Fee in LTL Shipping?
- Limited access delivery
- A delivery to a location that a carrier classifies as difficult, non-standard, or requiring special handling — construction sites, farms, military bases, churches, storage facilities, and others. Subject to an accessorial surcharge. What qualifies as limited access varies by carrier and is not always obvious from an address alone. See What Is Limited Access Delivery?
- Linehaul
- The base transportation charge for moving freight from origin to destination. Distinct from accessorials, fuel surcharges, and other add-on charges. In LTL pricing, the linehaul rate is typically expressed as dollars per CWT across weight breaks. In practice, the linehaul is one input into a larger invoice that includes fuel and accessorials.
- Logistics data centralization
- Bringing shipment, quote, rate, tracking, and invoice data into one place, linked by a common reference and standardized so it can be compared. The prerequisite for reliable invoice audit, carrier scorecards, freight analytics, and any practical use of AI. See A Field-Level Guide to Centralizing Logistics Data.See also: Freight invoice data, Data normalization, EDI · Logistics Data hub
- Logistics partner
- A general term for the providers a shipper relies on to move and manage freight — carriers, brokers, freight forwarders, 3PLs, and 4PLs. The right partner type depends on volume, lane mix, control, and the data and reporting you need. See How to Choose the Right Logistics Partner.See also: 3PL, Broker, Managed transportation · Carrier Contracts hub
- LTL (less-than-truckload)
- A shipping mode where multiple shippers share space in the same trailer. Freight moves through a hub-and-spoke terminal network. Rated by weight, freight class, and lane. Generally suited to shipments between 150 lbs and 10,000 lbs. Compare with parcel carriers for multi-piece shipments in the Courier vs. LTL guide.
M
- Managed transportation
- A service where a provider runs some or all of a shipper's transportation function — planning, execution, carrier management, and reporting — often combining technology and people. It can improve data and control, but adds a layer between the shipper and carriers that is worth weighing. See How to Choose the Right Logistics Partner.See also: 3PL, 4PL, Logistics partner
- Minimum charge
- The lowest freight charge a carrier will assess for a shipment, regardless of calculated weight or distance. Applies when the computed rate falls below the floor. Minimums are structural — they reflect the carrier's fixed cost per stop — and can significantly affect the economics of short hauls, small shipments, and low-weight pallets.See also: Carrier rate analysis, Cost per shipment · Carrier Contracts hub
- Multi-piece shipment
- A single shipment consisting of more than one handling unit — boxes, pallets, or crates moving together. Pricing may be applied per piece or per shipment depending on the carrier and agreement. The mode choice between parcel and LTL is most nuanced for multi-piece shipments. See Courier vs. LTL: How Shippers Should Decide for Multi-Piece Shipments.
N
- NMFC (National Motor Freight Classification)
- A standardized commodity classification system published by the NMFTA (National Motor Freight Traffic Association). Assigns freight classes from 50 to 500 based on density, stowability, handling, and liability. The NMFC item number for a specific commodity determines its class — which in turn determines the base rate in LTL pricing.
- Non-stackable freight
- Freight that cannot have other freight placed on top of it due to fragility, shape, or weight distribution. May attract additional charges or affect LTL density and class calculations. Carriers may treat non-stackable freight as occupying more trailer space than its physical footprint.
O
- Overmax
- A carrier-specific designation for parcels that exceed maximum size or weight limits for the standard automated parcel network. Typically subject to large surcharges, manual handling requirements, or outright rejection. Overmax thresholds differ by carrier and should be confirmed before tendering large packages. See What Is Overmax in Shipping?
- Oversize surcharge
- A charge applied to parcels exceeding carrier-defined size thresholds — often based on the longest side, girth, or a combination. Distinct from the additional handling surcharge and overmax designation, which represent higher severity tiers. The three tiers — oversize, large package, and overmax — are compared in Oversize vs Large Package vs Overmax.
P
- Parcel carrier
- A carrier that handles individual packages through a high-throughput automated sortation network. Examples include UPS, FedEx, Purolator, and Canada Post. Generally suited to shipments under 150 lbs per piece. Subject to dimensional weight rules, size surcharges, and per-piece accessorials that differ from LTL pricing.
- Peak season surcharge (PSS)
- A temporary per-piece or per-shipment surcharge applied by carriers during high-volume periods — typically Q4 and the holiday season. Stacks on top of linehaul, fuel, and other charges. Shippers with high Q4 volumes should factor PSS into annual freight cost models and carrier contract comparisons.
- PRO number
- A carrier-assigned tracking number for an LTL shipment. Used to track freight through the terminal network, reference shipments in billing disputes, and initiate freight claims. The PRO number is typically printed on the bill of lading at pickup.
Q
- Quote data
- The rates and terms a carrier offered for a shipment before it moved. Kept and linked to the shipment, quote data is what you compare the invoice against — the difference between quote and bill is where leakage shows up. See A Field-Level Guide to Centralizing Logistics Data.See also: Rate data, Shipment data, Freight invoice data · Logistics Data hub
R
- Rate data
- The contracted rates, discounts, minimums, fuel rules, and accessorial pricing that should apply to a shipment. Maintained as structured data and linked to shipments, it is what makes invoice audit and carrier rate analysis possible at scale. See A Field-Level Guide to Centralizing Logistics Data.See also: Quote data, Shipment data, Carrier rate analysis · Logistics Data hub
- Reclass (reclassification)
- A carrier adjustment that changes a shipment's freight class after inspection — usually to a higher, more expensive class — when the declared class does not match the actual density or commodity. A common reason an LTL invoice exceeds the quote. See LTL Reweigh and Reclass Charges.See also: Reweigh, Freight class, NMFC · Freight Cost hub
- Re-delivery
- A second or subsequent delivery attempt after an initial attempt fails — no one to receive, site access denied, incorrect address, or freight refused. Usually subject to a per-stop re-delivery accessorial charge. Reducing re-delivery frequency requires aligning carrier service windows with actual site availability before tender.
- Reweigh / re-measure
- A carrier's right to verify shipper-declared weight and dimensions at their facility using calibrated equipment. Discrepancies typically result in invoice corrections in the carrier's favour. Some agreements set procedural requirements or dispute timelines around reweigh results. Understanding reweigh rights is part of evaluating a carrier agreement. See LTL Reweigh and Reclass Charges.See also: Reclass, Billable weight drift, Dimensional weight · Freight Cost hub
- Residential delivery surcharge
- A charge applied when freight is delivered to a home or non-commercial address. Applied by both parcel and LTL carriers, though triggers, definitions, and rates differ significantly. Some LTL carriers classify certain commercial addresses as residential if they share characteristics with home delivery sites. Residential fees are often negotiable—and in some agreements can be discounted, capped, or waived—when volume and address mix support it. See Residential Delivery Fees Explained.See also: Accessorial charge, Liftgate · Freight Cost hub
S
- Shipper
- The party that tenders freight for transport and is typically responsible for freight charges. In a carrier agreement, the shipper is the customer. Distinct from the consignee (receiver) and the carrier. Third-party logistics providers (3PLs) may act as the shipper of record on behalf of their clients.
- Shipment data
- The record of each shipment — origin, destination, weight, dimensions, service level, and accessorials tendered. The anchor that quote, rate, tracking, and invoice data link to. Complete, consistent shipment data is the starting point for explaining freight cost. See A Field-Level Guide to Centralizing Logistics Data.See also: Rate data, Quote data, Freight invoice data · Logistics Data hub
- Shipment profile
- A summary of a shipper's typical freight characteristics: weight distribution, dimensions, lane mix, accessorial frequency, and seasonal patterns. Building an accurate shipment profile from actual data — rather than assumptions — is the starting point for meaningful carrier contract evaluation and cost modeling.
- Standard liability
- The base level of cargo protection a carrier provides without additional charge, typically expressed as cents per pound for LTL. Standard liability is usually far below the commercial value of most freight. Shippers with higher-value, fragile, or regulated goods should evaluate declared value options and compare their damage exposure against carrier liability limits when reviewing a contract.
T
- Tariff
- A carrier's published rate schedule and service terms. In the absence of a negotiated contract, the carrier's tariff governs. Tariffs set base rates, accessorial charges, rules, and liability terms. Many shippers operate under negotiated agreements that reference or modify tariff rates — understanding which parts of the tariff apply is part of reading a carrier contract.
- Third-party logistics (3PL)
- A provider that handles logistics functions on a shipper's behalf — warehousing, transportation, fulfillment, or all three. A 3PL can act as the shipper of record and own carrier relationships, which makes the data and reporting it provides central to cost visibility. See How to Choose the Right Logistics Partner and 3PL Data Reporting.See also: 4PL, Broker, Managed transportation
- 3PL reporting
- The shipment, cost, and performance data a 3PL provides to its client. Quality varies widely — the practical question is whether you can get complete, timely, usable data, not whether it arrives by EDI or API. Specify the fields and frequency you need up front. See EDI or API? The Wrong Question About 3PL Data.See also: EDI, API, Freight dashboard · Logistics Data hub
- TMS (Transportation Management System)
- Software used to plan, execute, and optimize freight shipments. Functions range from carrier rating and selection to route planning, track-and-trace, invoice audit, and reporting. A TMS that can apply carrier contract rules — including dimensional weight logic, minimums, and accessorial triggers — is essential for validating that invoiced charges match contracted terms.
- Transit time
- The number of business days a carrier estimates for freight to travel from origin to delivery point, typically excluding the pickup and delivery days themselves and not counting weekends or holidays unless otherwise stated. Published transit times are averages — lane-level on-time performance data is more meaningful when evaluating a carrier for time-sensitive freight.
- Transportation KPI
- A measured indicator of transportation performance — cost per shipment, on-time delivery, accessorial share, claims rate, billed-to-actual weight. KPIs are only as trustworthy as the data behind them, which is why centralization comes before reporting. See A Field-Level Guide to Centralizing Logistics Data.See also: Carrier scorecard, Freight dashboard, Cost per shipment · Logistics Data hub
W
- Waiting time / detention
- An accessorial charge applied when a driver waits at a pickup or delivery location beyond a free-time threshold — typically one to two hours. Rates are applied per 15 or 30 minutes beyond the free period. Waiting time accumulates when a facility is not ready to load or receive. Frequent waiting time charges often signal a process alignment issue between shipping schedules and carrier windows.
- Weight break
- A price inflection point in LTL freight rating where a higher total weight at a specific threshold becomes cheaper per pound than the actual shipment weight at a lower tier. When a weight break applies, it can be more economical to be billed at the higher-weight rate. Carriers apply weight breaks within their CWT pricing structures across rate tiers.
- WMS (Warehouse Management System)
- Software that manages warehouse operations — receiving, putaway, picking, packing, and inventory. A source of shipment and packaging data that often needs to connect to the TMS and ERP for a complete picture of freight cost. See A Field-Level Guide to Centralizing Logistics Data.See also: TMS, ERP, Logistics data centralization · Logistics Data hub
Z
- Zone
- A geographic area used by parcel carriers to calculate shipping rates. Zones are assigned relative to the shipment origin; the farther the destination, the higher the zone and typically the higher the base rate. Zone maps are carrier-specific. Understanding zone distribution across your customer base is part of modeling total parcel cost under a carrier agreement.