The logistics and freight industries are highly intricated and quite complex - this is especially true when dealing with the many specialiised terms and abbreviations that can be difficult to keep track of.

To simplify things for you, InXpress Sandton have created a quick list of some of the most important and commonly used industry-related terms. Understanding these key definitions will equip you in making decisions ~ supporting your customers and optimising your entire shipping process.

Logistics & Freight Terms - Simply Defined

1. Consignee:

A consignee is the business or individual financially responsible for the receipt of the freight shipment and generally the recipient who will be receiving the shipment.

2. Consignor:

The consignor is the individual or business (generally the seller) who sends the shipment to the consignee (the receiver). The consignor is considered the legal owner of the goods until the consignee has finalised the payment.

3. 3PL (Third Party Logistics):

Third party logistics involves the outsourcing of any logistics services (like transportation, warehousing and distribution) to a third party provider.

4. ETA (Estimated Time of Arrival):

The ETA of a shipment is the estimated time a freight shipment is expected or estimated to arrive at its final destination.

5. Expedited Delivery:

Expedited delivery is an option available to shorten a particular parcel or consignments delivery time by prioritising it over others. 

It’s important to note that expedited deliveries generally cost more than standard shipping services. They can however come in handy when a parcel needs to be delivered urgently.

6. OTR (Over the Road):

‘Over the road’ refers to the transportation of freight over long distances using main roads and high ways and often crossing national borders.

7. TL or FTL (Truckload or Full Truckload):

Full Truckload refers to the total amount of freight (the quantity) needed to fill a trailer and reach its maximum capacity. This can either be the total amount of cargo that can physically fit on the trailer or the maximum weight that the trailer can handle. 

8. LTL / LCL (Less Than Container or Truckload):

A shipment that only takes up a portion of a truckload and does not require the entire cargo space is considered LTL. These are generally smaller shipments.

This method involves shippers paying for the portion of space occupied by their freight while separate shipments fill up rest of the container.

9. INT (Intermodal):

Simply put, Intermodal means that a shipment will use more than one transport mode (i.e. truck and railway).

10. Consolidation:

Consolidated shipments involve combining multiple smaller shipments (LTLs) from separate shippers into one container. Though this method can take longer (as the shipments require multiple stops), it is a sure way to save on shipping costs.

11. Tariff: 

A tariff is a tax or duty that needs to be paid on a particular class of imported or exported goods. The words tariff, customs and duties can be used interchangeably.

12. Accessorial Charges: 

Accessorial charges are fees charged by carriers for services that go beyond the initial agreed upon delivery requirements. They can include services like loading and unloading, redelivery and storage.

13. POD (Proof of Delivery):

The proof of delivery is a document used to signify that the shipment has been delivered and received at its final destination.

14. BOL (Bill of Lading):

The bill of lading is a legal document and can be seen as a receipt for the delivery of goods and as proof of ownership for the pickup and delivery of a shipment. These documents are issued by the carrier to a shipper and accompany the shipment throughout its journey. Authorised reps from the carrier, shipper and receiver will need to sign the BOL.

In Conclusion:

Having a basic knowledge of these common logistic and freight terms will assist you when dealing with your service provider - helping you make better decisions and simplifying your entire shipping process.

We, at InXpress Sandton know just how complicated shipping goods both domestically and internationally can be. That is why we are here, to assist you in finding the best solution to all your shipping needs. Contact us today to simplify your shipping experience.