Freight Brokerage Business. The Staff of Entrepreneur Media, Inc.

Box 1197, Smyrna, TN 37167

      email: [email protected]

       www.mcdtrans.com

       RJW Transport, Inc.

      Ronald Williamson, CTB

      [phone], fax: [phone]

      11240 Katherine’s Crossing, Suite 400, Woodridge, IL 60517

       www.rjwgroup.com

       Tucker Company Worldwide, Inc.

      William J. Tucker

      [phone], [phone], fax: [phone]

      56 North Haddon Avenue, Haddonfield, NJ 08033

       www.tuckerco.com

       Glossary

      The following is an alphabetical listing of common terminology used by freight brokers and agents. The best way to develop a true understanding of these terms is to obtain some type of specialized training as a freight broker or agent, and/or land a job that will provide you with real-world experience working within the industry.

      Accessorial charges: charges assessed by a carrier for services provided in addition to basic transportation, such as extra pickups, loading, and unloading.

      Air-ride: trailers built to reduce road shock and designed to carry fragile items; the suspension system supports the load on air-filled rubber bags rather than steel springs.

      Backhaul: the return trip of a vehicle from the destination back to the origin.

      Bill of lading: a document that serves as the contract of carriage between the shipper and the carrier.

      Bobtail: a tractor operating without a trailer.

      Bracing: securing items inside a vehicle to prevent damage.

      Break-bulk: the separation of a load into smaller shipments for delivery to ultimate consignees.

      Claim: a charge made against a carrier for loss, damage, or overcharge.

      Class rate: a rate constructed from a classification and a uniform distance system.

      Commercial zone: the area surrounding a city or town to which rates quoted for that city or town also apply.

      Common carrier: any person or agency publicly engaged in the business of transporting passengers or freight; common carriers are subject to two stringent obligations: compulsory service and liability for loss or damage to goods.

      Consignee: the receiver of a freight shipment, usually the buyer.

      Consignor: the sender of a freight shipment, usually the seller.

      Consolidation: the collection of smaller shipments to form a larger quantity to get lower transportation rates.

      Container (shipping container): standard-sized rectangular box used to transport freight by ship, rail, or motor carrier.

      Contract carrier: a company that transports freight under contract with one shipper or a limited number of shippers.

      Cost per hundredweight (cwt): an amount charged per hundred pounds of freight.

      Density: a physical characteristic of a commodity, which is important in rate-making since density affects vehicle utilization; determining density requires measuring its mass per unit per volume, or pounds per foot.

      Detention: the charge assessed by the carrier when the shipper or receiver holds a truck or trailer beyond the time allowed for loading and unloading.

      Doubles (twins, twin trailers): a tractor and two semitrailers that are connected.

      Drayage: a motor carrier that operates locally, providing pickup and delivery service.

      Driver assist: when a driver is asked to assist in the loading or unloading process; sometimes treated as an extra charge on a per-hour or flat rate.

      Driver’s log sheets: a log of miles traveled, hours of driving, off-times, and rest periods that drivers are required to keep.

      Dry van: a nonrefrigerated, noninsulated semitrailer handling general commodity freight that can withstand outside temperatures without suffering damage.

      Empty backhaul: when a truck returns empty from the destination to the point of origin and therefore does not generate return-trip revenue.

      Exclusive use: a request made by shippers that means their freight is the only freight on the truck.

      Exempt carrier: a for-hire carrier that is exempt from economic regulations.

      Expediting: determining where a shipment is during transit and attempting to speed up its delivery; many big companies have expeditors on staff who do this full time.

      Flats (or flatbeds): a flat, solidly built trailer designed to handle heavier and bulkier loads than a dry van, such as metal, equipment, and machinery.

      FOB: a term of sale that defines who is to pay transportation charges for a shipment, who is to control the movement of the shipment, or where title to the goods passes from the seller to the buyer; originally an acronym for “free on board.”

      For-hire carrier: a company that provides truck transportation of cargo belonging to others and is paid for doing so.

      Freight bill: the carrier’s invoice for transportation charges for a particular shipment.

      Freight broker: the middle person who connects shippers and carriers.

      Freight payable: technically, a freight bill that needs to be paid; in common use, it also refers to the special payables department large shippers may have that is dedicated to paying freight bills.

      Freight pool: a collection of trailer loads waiting for assignment to a driver and tractor.

      Front haul: the initial movement of the vehicle from the origin to the destination.

      Full truckload (FTL): a shipment occupying the entire trailer, typically with a weight of 30,000 pounds or more.

      Gross weight: the total weight of the goods being shipped, including packing and packaging materials.

      Hazmat: Hazardous materials, as classified by the U.S. Environmental Protection Agency (EPA); transportation of hazardous materials is strictly regulated by the U.S. Department of Transportation.

      Incentive rate: a rate designed to encourage shippers to ship heavier volumes per shipment.

      Interline: two or more motor carriers working together to haul a shipment.

      Intermodal: combining two or more modes of transportation, such as truck and rail, truck and air, or rail and ocean.

      Interstate Commerce Commission (ICC): a federal regulatory agency that was abolished in 1995.

      Joint rate: a rate over a route that involves two or more carriers transporting the shipment.

      Just-in-time