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6 Freight Terms That Will Make You a Pro

Freight terms you need to know

Every industry has its own unique terminology that can be jarring to those who may not be familiar with the industry buzzwords or terms. It can also feel like a disadvantage when trying to discuss your business needs in what can often feel like another language.

That is why we’ve picked 6 of the most important freight terms (although there are definitely quite a few more than this) for your quick reference:

1. Bill of Lading (BOL)

BOL refers to the contract between the shipper and the carrier, broker, or agent that binds the parties together and covers three main areas:

  1. A receipt for goods delivered to the transportation provider for shipment.
  2. A definition or description of the goods.
  3. And evidence of title to the relative goods.

2. Bulk Freight

This is cargo that is transported unpackaged in large quantities. This term encompasses material that is liquid or granular, such as a mass of relatively small solids. For example: petroleum, grain, coal, or gravel.

3. Free Along Side (FAS)

This freight term refers to the price of goods alongside a transport vessel at a specified location. The buyer is responsible for loading the goods onto the transport vessel and paying all the cost of shipping beyond that specific location.

4. Free on Board (FOB)

FOB is when the seller agrees to deliver merchandise, free of all transportation expense, to the place specified by the sales contract. After delivery is complete, the title to all the goods and the risk of damage become the buyer’s.

5. Gross Vehicle Weight (GVW)

The total weight of the transport and all of its goods.

6. Time-Definite

The guarantee that the delivery will occur on a specific day and/or time.

These common freight terms and acronyms are useful to know when working to get your goods delivered in a timely manner, and at the right price.

For more information about our delivery services, contact us today by filling out a form or calling us at 214-373-1999.

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