Freight Dictionary: Trucking & Logistics Terms

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The Transportify Freight Dictionary defines essential logistics, trucking, and freight shipping terminology. Our freight dictionary will help you master supply chain concepts and strengthen your industry knowledge with clear, accurate definitions and real-life applications.

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ABC analysis

ABC analysis is an inventory classification method that groups items by value or usage (A high, B medium, C low) to focus control where it matters most.

Accessorial charges

Accessorial charges is extra fees for services beyond standard transport like liftgate, detention, inside delivery, or residential surcharge, usually billed separately.

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Advance Ship Notice

Advance Ship Notice (ASN) is a pre-arrival shipment message that tells a receiver what items ship, in what quantities, and when delivery is expected.

Backload

Backload is a shipment that occupies a vehicle on its return trip to prevent empty runs and maximize revenue per journey.

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Backorder

Backorder is an order for an out-of-stock item that is accepted for fulfillment later when inventory becomes available, often with an estimated ship date.

Bill of Lading

Bill of Lading (BOL) is a legal document that serves as a shipping contract and title to ensure goods are delivered to the correct recipient.

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Bill of Materials

Bill of Materials (BOM) is a structured list of all parts, raw materials, and quantities needed to manufacture or assemble a finished product.

BLOWBAGETS

BLOWBAGETS is a pre-trip vehicle safety checklist: Battery, Lights, Oil, Water, Brake, Air, Gas, Engine, Tire, and Self, used to reduce breakdown and accident risk.

Brokerage

Brokerage is a service that arranges transportation or customs processing for a shipper by matching loads to qualified providers and completing required paperwork.

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Bullwhip effect

Bullwhip effect is a supply chain phenomenon where small demand changes at retail create larger swings in orders upstream, causing inefficiency and stock imbalances.

Cargo

Cargo is a physical commodity that is transported commercially by land, sea, or air for distribution to the end-user.

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Carriage and Insurance Paid To

Carriage and Insurance Paid To (CIP) means the seller pays transport and all-risks insurance to a named destination, but risk transfers once goods are handed to the first carrier.

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