If you’re new to logistics and freight management, there’s a lot to learn – including a lot of very specific terminology. Even among technical fields, freight management has an excess of jargon, as well as acronyms whose meaning is not immediately obvious.
So, in this article, we wanted to look at some of the most important pieces of terminology relating to logistics and supply chain management. Know these on your first day at the office, and you’ll be ready to impress.
I. Types Of Shipping Methods
LTL – Less Than (truck)Load – This applies to situations where you’re shipping fewer goods than would fill a truck, typically 6 or fewer pallets, or a total shipment under 4,000 pounds. LTL shipments will be paired with shipments from other companies, to fill up the truck, and may change vehicles more often while in-route.
FL – Full (truck)Load – The opposite of LTL, when you have enough cargo to fully fill a truck or shipping container. FL shipments are typically more direct than LTL.
PTL – Partial Truck Load – When you have too much cargo for LTL, but too little for FL. This may require wasting space on the truck, but the shipment will usually be direct.
STL – Shared Truck Load – When multiple companies – or shipments handled by a third-party logistics company – share a truck going in the same direction.
II. Office Jargon
CNOR/CNEE – Consignor and Consignee. The consignor is sending the shipment, the consignee is the one receiving it.
BOL – Bill of Lading – The contract between a shipper and carrier, specifying what is being transported, to where, and at what times, as well as other information such as any hazardous materials.
POD – Proof of Delivery – The receipt signed by the consignee indicating the shipment arrived and has been collected. The BOL may also be a POD in some cases.
OS&D – Overage, Shortage, and Damage – A report which can be filed by the CNEE if there were problems with a received shipment.
TONU – Truck Ordered but Not Used – If a truck arrives, but there’s no load to put on it. This can lead to fees if it’s your company’s fault.
3PL – Third Party Logistics – A third-party service company that handles logistics and shipping on behalf of a shipper.
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Thanks for helping me understand that LTL freight shipping would be paired with other companies to fill up the truck. I guess this option would be an affordable choice for those starting out with their business. They can definitely get lower rates, because they will be sharing the costs with other business owners as well.