Freight & Shipping Glossary | Yuzhao (David) Zhang

A

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.
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.
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 used to calculate freight charges — whichever is greater: actual weight or dimensional weight. Also called chargeable weight. Understanding which figure drives cost on a given shipment is central to freight cost management. Use the DIM weight calculator to see both figures instantly.
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.

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.
Chargeable weight: See billable weight.
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

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 Dimensional 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 Dimensional Weight Explained or use the DIM weight calculator.
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.

F

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 DIM weight calculator for a density-based class estimate.
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.
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.

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.

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.
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

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.
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.

R

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.
Re-weigh / 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 re-weigh results. Understanding re-weigh rights is part of evaluating a carrier agreement.
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. Worth confirming how the carrier defines residential for your customer base.

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 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.
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.

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.

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.