Freight Jargon: A Simple Guide to Industry Terms

January 20 2025
Customised Freight Solutions

Freight Jargon Simplified | Easy Guide to Common Logistics Terms

Navigating the freight and logistics industry can be confusing, especially when it’s packed with acronyms and specialised terms. Understanding these terms is essential for understanding and communicating effectively with providers to make informed decisions.

To help, we’ve created an updated guide covering key freight jargon you’re likely to encounter. Whether you’re new to logistics or need a refresher, this glossary simplifies the language of freight so you can approach your operations with clarity and confidence.

Freight Jargon Glossary: 30 Key Terms

1. ATL (Authority to Leave)
Authorisation given by the receiver to the carrier, allowing the freight to be left at a specified location without requiring the receiver to sign for the delivery. This is often used for residential or non-critical deliveries.

2. Carded Freight
Freight that could not be delivered, resulting in a notification card being left for the recipient by the driver. In some cases, the freight is redirected to a local post office or collection point for pickup, or the recipient may be able to rearrange delivery with the driver for a time they’ll be available to accept it.

3. Chain of Responsibility (CoR)
The Chain of Responsibility (CoR) ensures all parties in the freight supply chain—consignors, carriers, and consignees—are legally accountable for safety and compliance. It addresses key areas like load restraint, vehicle standards, and fatigue management to promote safe and efficient transport operations.

4. Consignment Note & Consignment Label

A Consignment Note is a document provided by the carrier, often electronically generated, that includes essential details about the shipment, such as sender and receiver information, freight description, and tracking number. It serves as a formal record for tracking and delivery, ensuring transparency and accountability throughout the freight journey.

A Consignment Label is a physical label attached to the freight, containing key information from the consignment note, including the tracking number, delivery address, and carrier-specific details. It enables easy identification and routing of the shipment, ensuring it reaches the correct destination efficiently. Both the consignment note and label are integral to a seamless logistics process.

5. Consignor and Consignee

Consignor: The sender or owner of the freight.
Consignee: The receiver or intended recipient of the freight.

These roles are critical in establishing responsibility and facilitating communication in the freight process.

6. Cubic Conversion Factor
A standardised divisor used by carriers to convert the volume of freight into cubic weight for billing purposes. For example, dividing the cubic size (L x W x H) of freight by a set factor determines its volumetric weight, usually 333 or 250.

7. Dead Weight vs. Cubic Weight

Dead Weight: The actual weight of the freight on a scale.
Cubic Weight: A calculated weight based on the dimensions of the freight (Length x Width x Height ÷ a divisor). Freight is billed based on the higher of these two weights.

8. Demurrage and Detention

Demurrage: Fees charged for exceeding the allowed loading/unloading time at ports or depots.
Detention: Waiting time fees incurred when a driver is delayed at pickup or delivery points due to circumstances like slow loading/offloading or lack of access.

9. DIFOT (Delivery In Full, On Time)
A logistics performance metric that tracks whether shipments are delivered completely and on time, providing a clear measure of carrier reliability and service quality.

10. Depot-to-Depot vs. Door-to-Door

Depot-to-Depot: Freight is dropped off at the carrier’s depot and collected by the receiver at the destination depot.
Door-to-Door: Freight is picked up from the sender and delivered directly to the receiver.

11. ETA (Estimated Time of Arrival)
The ETA is the projected time when freight is expected to reach its destination. It is typically calculated using factors like the distance to be covered, the carrier’s transit schedule, and known traffic or network conditions at the time of booking. While ETAs provide a helpful guide for planning, they are subject to change due to variables such as weather, traffic disruptions, or delays within the freight network.

12. Freight Consolidation
The process of combining multiple smaller shipments into one larger load to maximise efficiency, reduce costs, and minimise handling.

13. Freight Zones
Geographical areas defined by carriers to determine freight rates. Zones are typically used to calculate pricing based on the distance or delivery area, with higher costs for remote or harder-to-reach locations.

14. Hand Load/Unload
The manual handling of freight during loading or unloading without mechanical equipment. This is often necessary for fragile, oversized, or irregularly shaped items.

15. Hazardous or Dangerous Goods (DG)
Freight classified as hazardous due to safety risks, such as chemicals, batteries, or flammable materials. These shipments require specialised documentation, handling, and transport procedures.

16. Hot Shot Freight
Urgent or time-sensitive freight deliveries that require immediate transport, typically handled with dedicated vehicles. This is often used for critical shipments like spare parts or medical supplies.

17. LCL and FCL (Less than Container Load and Full Container Load)

LCL: Freight that shares container space with other shipments.
FCL: Freight that occupies an entire container exclusively for one shipment.

18. Linehaul
The long-distance transport of freight between major hubs or depots. It is a critical part of interstate and regional logistics.

19. Manifest
A detailed list of all shipments included in a specific vehicle, container, or load. This document ensures freight accuracy and helps track movements.

20. Manual Consignment Note
A handwritten or manually completed shipping document that details shipment specifics, used as a backup when digital systems are unavailable.

21. Manual Handling
The physical movement of freight by personnel, including lifting, carrying, or pushing goods. This method is necessary for irregular, heavy, or fragile items and often involves additional labour charges.

22. Multi-Modal Freight
Freight that is transported using two or more modes of transport, such as road and rail, to optimise flexibility and cost-efficiency.

23. Palletised Freight
Freight that is securely packed onto pallets to improve stability and handling during transport. Palletisation also reduces the risk of damage and optimises loading efficiency.

24. Proof of Delivery (POD)
A document or digital confirmation that verifies freight has been successfully delivered to the intended recipient.

25. Residential Surcharge
An additional fee applied for delivering freight to residential addresses, often due to restricted access, limited equipment, or additional handling requirements.

26. RMD (Remote Delivery)
Deliveries to remote or hard-to-reach areas, often requiring additional transit time and incurring higher costs due to limited carrier availability.

27. Tailgate Services
A hydraulic lift attached to the back of a truck, used for loading or unloading freight at locations without docks or forklifts. Tailgate services are often necessary for residential or small-business deliveries.

28. Time Slot / Booking Fee
A fee charged to reserve a specific delivery time or window, often required for high-demand or restricted-access locations.

29. TMS (Transport Management System)
A digital platform used to manage freight operations, including booking, tracking, invoicing, and reporting. TMS systems enhance efficiency and provide full visibility across the supply chain.

30. Volumetric Weight
A calculated weight based on the dimensions of the freight (Length x Width x Height ÷ a divisor), used to determine shipping costs for bulky but lightweight items.

Need help simplifying your freight operations? Connect with our team for tailored advice and logistics solutions that work for your business.