Reference

Freight Transportation Glossary

Enterprise terminology reference for shipping routes, freight transportation, and logistics. This glossary covers key concepts across trucking, rail, air cargo, and intermodal shipping operations.

70terms defined
6categories
GeneralTruckingRailAir CargoIntermodalParcel

Glossary Terms

A
Access PointParcel
Retail location or locker where packages can be picked up by recipients as an alternative to home delivery. Used by UPS, FedEx, and Amazon.
All-Cargo CarrierAir Cargo
An airline that operates exclusively freighter aircraft without passenger service. Examples include Atlas Air, Polar Air Cargo, and Kalitta Air.
ACMIAir Cargo
Aircraft, Crew, Maintenance, and Insurance. A wet lease arrangement where an airline provides aircraft with crew to another carrier or freight operator.
B
BackhaulGeneral
Return movement of freight in the direction opposite to the primary loaded movement, typically at discounted rates due to demand imbalances.
Belly CargoAir Cargo
Freight transported in the lower deck cargo hold of passenger aircraft, rather than in dedicated freighter aircraft.
Bill of Lading (BOL)General
Legal document issued by a carrier detailing the type, quantity, and destination of goods being shipped. Serves as shipment receipt and contract of carriage.
Block TrainRail
A complete train of railcars moving from origin to destination without intermediate switching or classification, providing faster transit times.
C
CarloadRail
Rail shipment quantity sufficient to fill a railcar, typically the minimum billing unit for non-intermodal rail freight.
CarrierGeneral
Transportation company that physically moves freight. May be asset-based (owning equipment) or non-asset (brokering capacity).
ChassisIntermodal
Wheeled frame used to transport intermodal containers by truck. Typically owned by carriers, leasing companies, or port authorities.
Class I RailroadRail
Major freight railroad with annual operating revenues exceeding $900 million. The seven U.S. Class I carriers handle 94% of freight rail revenue.
Classification YardRail
Rail facility where individual railcars are sorted and assembled into trains by destination. Often uses gravity (hump yard) or flat switching.
ConsolidationGeneral
Combining multiple smaller shipments into a single larger shipment for transportation efficiency, typically done by LTL carriers or freight forwarders.
Confirmed DeliveryParcel
Delivery status verified through signature, photo, or GPS confirmation. Standard for high-value or express parcel shipments.
ContainerIntermodal
Standardized metal box for transporting freight. ISO containers (20/40 ft) for international shipping; 53-ft containers for domestic U.S. intermodal.
CorridorGeneral
A defined freight transportation route or lane connecting major origin and destination points, often served by multiple carriers and modes.
D
DeadheadGeneral
Movement of empty transportation equipment (truck, container, railcar) to position it for the next loaded movement.
Dedicated CarriageTrucking
Transportation service where equipment and/or drivers are assigned exclusively to a single customer under contract.
Door-to-DoorGeneral
Complete transportation service from shipper origin to consignee destination, including pickup and delivery.
Double-StackIntermodal
Rail transportation method where containers are stacked two-high on specially designed railcars, doubling capacity per train.
DrayageIntermodal
Short-distance trucking to move containers between ports, rail terminals, and customer facilities. Critical link in intermodal transportation.
Delivery StationParcel
Local facility where packages are sorted for final-mile delivery. Amazon operates 1,000+ delivery stations; other carriers use similar facilities.
Dimensional Weight (DIM)Parcel
Pricing method that calculates shipping cost based on package dimensions rather than actual weight. Used when a package is large but light.
DSP (Delivery Service Partner)Parcel
Independent contractor company that operates a fleet of vehicles for Amazon deliveries. Amazon's primary last-mile delivery model.
E
ECM (Electronic Control Module)Trucking
Computer that controls vehicle systems including engine, transmission, and emissions. ECM failures in commercial trucks can often be addressed by board-level electronics repair specialists rather than full module replacement.
F
FTL (Full Truckload)Trucking
Shipment large enough to fill an entire truck trailer, moving directly from origin to destination without consolidation.
Freight BrokerGeneral
Intermediary that arranges transportation between shippers and carriers without owning trucks or cargo. Licensed by FMCSA.
Freight ForwarderGeneral
Company that arranges transportation and logistics services on behalf of shippers, often consolidating shipments and managing documentation.
FreighterAir Cargo
Aircraft designed or converted exclusively for cargo transport, with main deck cargo capacity and no passenger seating.
G
Ground ShippingParcel
Parcel transportation via truck network rather than air, offering lower cost with longer transit times (typically 1-5 business days).
H
HubGeneral
Central facility in a transportation network where freight is consolidated, sorted, and redistributed to spoke destinations.
Hub-and-SpokeGeneral
Network design where freight flows through central hub(s) rather than moving directly between all origin-destination pairs.
I
Inland PortIntermodal
Intermodal facility located away from seaports that provides port-like services including customs clearance and container handling.
Integrated CarrierAir Cargo
Company providing door-to-door express service by controlling all transportation modes (aircraft, trucks) and handling facilities. Examples: FedEx, UPS, DHL.
InterlineGeneral
Movement of freight across multiple carrier networks, with transfer between carriers at interchange points.
IntermodalIntermodal
Transportation using two or more modes (rail, truck, ship, air) with cargo in containers that transfer between modes without handling contents.
Intermodal Marketing Company (IMC)Intermodal
Third-party company that purchases rail intermodal capacity and resells it to shippers, arranging drayage and providing door-to-door service.
Integrated CarrierParcel
Parcel company that owns and operates its own aircraft, vehicles, and facilities for door-to-door service. Examples: UPS, FedEx, DHL.
L
LaneGeneral
Specific origin-destination pair in freight transportation. High-volume lanes may have dedicated service and competitive rates.
Last MileGeneral
Final leg of delivery from distribution center or hub to end customer. Often the most complex and costly portion of transportation.
Locker DeliveryParcel
Automated pickup point where packages are stored in secure compartments for recipient retrieval. Amazon Lockers, UPS Access Points, etc.
LTL (Less-Than-Truckload)Trucking
Trucking service for shipments too large for parcel but insufficient to fill a truck. Multiple shipments consolidated on shared trailers.
M
ManifestGeneral
Document listing all cargo aboard a vehicle, vessel, or aircraft. Used for customs, safety, and operational purposes.
Modal ShiftGeneral
Movement of freight from one transportation mode to another, often from truck to rail for cost or environmental reasons.
N
NDC (Network Distribution Center)Parcel
USPS large-scale processing facility that sorts mail and packages for regional distribution. 21 NDCs serve the continental U.S.
O
Owner-OperatorTrucking
Independent truck driver who owns their equipment and contracts with carriers or brokers rather than being employed by a carrier.
OTR (Over-the-Road)Trucking
Long-haul trucking operations typically exceeding 250 miles, requiring overnight trips and compliance with hours-of-service regulations.
P
ParcelParcel
Small package shipment, typically under 150 pounds, handled by carriers like UPS, FedEx, USPS, and DHL rather than freight carriers.
PLC (Programmable Logic Controller)General
Industrial computer used to control automated equipment in terminals, warehouses, and manufacturing. PLCs from manufacturers like Allen-Bradley, Siemens, and Mitsubishi are common in freight infrastructure.
Peak SeasonParcel
High-volume shipping period, primarily November-December holiday season, when parcel carriers handle up to 3x normal daily volume.
Point-to-PointGeneral
Direct transportation between origin and destination without routing through intermediate hubs. Common in truckload shipping.
R
RampIntermodal
Intermodal rail terminal where containers are loaded/unloaded from trains. Also called lift or terminal.
ReeferGeneral
Refrigerated container or trailer used to transport temperature-sensitive cargo such as food, pharmaceuticals, or chemicals.
RoadRailerIntermodal
Specialized trailer that can be pulled by a truck or coupled directly into a train without a railcar, combining highway and rail capability.
S
Short-Line RailroadRail
Small railroad typically operating less than 350 miles, often providing local service and connecting to Class I carriers.
SmartPost/SurePostParcel
Hybrid parcel services where FedEx (SmartPost) or UPS (SurePost) handles linehaul and USPS performs final delivery to residential addresses.
Sortation CenterParcel
Facility where packages are automatically sorted by destination. Express carriers sort millions of packages nightly at hub sortation centers.
Spot MarketGeneral
Transportation capacity purchased on-demand at current market rates, as opposed to contract rates for committed volume.
T
TerminalGeneral
Facility where freight is handled, sorted, stored, or transferred between vehicles or modes. Includes truck terminals, rail yards, and intermodal ramps.
TEU (Twenty-Foot Equivalent Unit)Intermodal
Standard unit for measuring container capacity based on a 20-foot container. A 40-foot container equals 2 TEUs.
TOFC (Trailer on Flatcar)Intermodal
Intermodal method where highway trailers are loaded onto rail flatcars. Less efficient than container double-stacking but provides flexibility.
Ton-MileGeneral
Measure of freight transportation work: one ton moved one mile. Used to compare productivity across modes.
TransloadGeneral
Transfer of freight from one type of equipment to another (e.g., rail to truck) at a facility, often with temporary storage.
Transit TimeGeneral
Total time from origin pickup to destination delivery, including handling time at terminals and facilities.
Truckload (TL)Trucking
Shipment quantity sufficient to utilize the full capacity of a truck trailer, moving as a single shipment from origin to destination.
U
Unit TrainRail
A train consisting of a single commodity moving from one origin to one destination without intermediate switching. Common for coal, grain, and petroleum.
V
VFD (Variable Frequency Drive)General
Motor controller used in conveyor systems, pumps, and material handling equipment throughout freight facilities. VFDs regulate motor speed for energy efficiency and process control.
W
WaybillGeneral
Document accompanying freight that contains routing instructions, shipper/consignee information, and description of goods.
WorldportParcel
UPS global air hub located in Louisville, KY. Processes 2+ million packages nightly and is the largest automated package handling facility.
Z
ZoneParcel
Geographic pricing tier used by parcel carriers. Rates increase with zone number (distance from origin). USPS, UPS, and FedEx use zone-based pricing.