Glossary
Freight & logistics terms, in plain English
Drayage and 3PL are jargon-heavy. Here's what the words actually mean — no fluff.
3PL (Third-Party Logistics)AccessorialBOL (Bill of Lading)ChassisDemurrageDetentionDimensional (DIM) WeightDrayageDrop FeeFreight AuditFreight BrokerFTL (Full Truckload)GRI (General Rate Increase)IntermodalLast Free Day (LFD)LTL (Less-Than-Truckload)Parcel AuditPer DiemTransload
- 3PL (Third-Party Logistics)3PL
- A company that handles warehousing, fulfillment, and distribution on a brand's behalf — receiving inventory, storing it, and picking, packing, and shipping orders. Choosing the right one is a major operational decision. 3PL Placement →
- AccessorialBilling
- Any charge beyond the base line-haul rate — liftgate, detention, residential delivery, reweigh, and so on. Accessorials are where freight and parcel invoices most often get padded, which is why auditing them pays. Freight Audit →
- BOL (Bill of Lading)Freight
- The legal document between shipper and carrier that lists what's being moved, from where to where, and the terms. It serves as a receipt, a contract of carriage, and a document of title.
- ChassisDrayage
- The wheeled steel frame a truck uses to haul an ocean container over the road. Chassis are often pooled and in short supply at busy ports — a shortage can delay a pickup and trigger fees.
- DemurrageDrayage
- A fee the marine terminal charges when your container sits past its allotted free time. It accrues per container, per day, and adds up fast — avoiding it is most of what good drayage is about.
- DetentionDrayage
- A fee charged for holding the carrier's equipment (the container and chassis) too long once it has left the terminal — for example, when an unload runs slow. Distinct from demurrage, which applies inside the terminal.
- Dimensional (DIM) WeightParcel
- A pricing method that bills a package on its size rather than its actual weight when the box is large but light. Carriers divide cubic size by a 'DIM divisor' to get a billable weight — a common source of overcharges.
- DrayageDrayage
- The short-distance trucking of an ocean container — usually from a marine terminal to a nearby warehouse, rail ramp, or distribution center. It's the move that gets your box off the dock and onto its next leg. Drayage Brokerage →
- Drop FeeDrayage
- What a carrier charges to drop a loaded container at your facility and return later for the empty, instead of waiting for a live unload. It can be cheaper than detention if your unload is slow.
- Freight AuditBilling
- Reviewing freight invoices line by line against contracted rates and the actual shipment to catch duplicate charges, wrong accessorials, and rate mismatches — then disputing and recovering the difference. Freight Audit service →
- Freight BrokerFreight
- A licensed intermediary that arranges transportation between shippers and carriers without owning the trucks. A good broker brings carrier relationships, capacity, and rate leverage a shipper couldn't get alone. What is a freight broker? →
- FTL (Full Truckload)Freight
- A shipment that fills (or is priced as) an entire trailer dedicated to one customer. Generally faster and lower-risk than LTL because the freight isn't handled or transferred in transit.
- GRI (General Rate Increase)Parcel
- The annual across-the-board rate increase the major parcel carriers apply each year — typically mid-single-digit on average, but much higher on specific surcharges and zones. Why your effective rate quietly climbs.
- IntermodalFreight
- Moving freight using more than one mode — most commonly truck-to-rail-to-truck — without handling the goods themselves when switching modes. Cost-effective for longer hauls between rail-served markets.
- Last Free Day (LFD)Drayage
- The final day you can pull your container from the terminal before storage charges (demurrage) start. Tracking the LFD on every box and booking the pickup before it passes is the core of avoiding port fees.
- LTL (Less-Than-Truckload)Freight
- A shipping mode for freight that doesn't fill an entire trailer. Multiple shippers' freight shares the truck, and pricing is based on weight, class, and distance.
- Parcel AuditParcel
- Auditing small-parcel invoices (FedEx, UPS) for billable errors and money-back service failures — late deliveries, wrong surcharges, dimensional-weight mistakes — and claiming the refunds you're owed. Parcel Audit service →
- Per DiemDrayage
- The daily rental fee the ocean carrier charges for use of its container beyond the agreed free time. Like demurrage, it's a clock-based charge that rewards moving the box quickly.
- TransloadDrayage
- Transferring freight from one piece of equipment to another — typically unloading an ocean container and reloading the goods into a domestic trailer. Used to avoid per diem and to consolidate or reposition freight.
Got a term we missed?
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