"Welcome to the world of Logistics and Transportation!

We are thrilled to have you join our team

and become a valuable part of our dynamic industry. As it continues to evolve, your
contributions will play a crucial role in our collective success. This booklet has been carefully
curated to provide you with essential insights related to logistics and supply chain, setting you
up for a solid and successful start. With your skills and our dedicated support, we are confident
you'll make a significant impact in this ever-growing field. Let's grow together!."

GEORGE SARMIENTO
Director of Training and Learning Development
 INDICE DE
CONTENIDOS
PHASE 1: General Knowledge

PHASE 2: Who does this industry works?

PHASE 3: Type of transportations

PHASE 4: Packing Types

PHASE 5: Equipment

PHASE 6: OTR Modalities

PHASE 7: Main Documents

PHASE 8: Full Truckload

PHASE 9: Less than Truckload

PHASE 10: Freight Forwarding

INTRODUCTION TO USA
USA Map and States Abbreviations:
Zip Codes
A ZIP code is a five-digit number representing a specific location in the United States. The
extended ZIP + 4 code adds a hyphen and four additional digits for an even more precise
location. Here is how it works:

• The first digit represents the state. Numbers increase as you move west. Several states
share each digit — 2, for example, represents the District of Columbia, Maryland, North
Carolina, South Carolina, Virginia, and West Virginia.
• The second and third digits represent regions within the state — the first three digits
create the Sectional Center Facility (SCF) code. SCFs are the regional headquarters for
mail sorting and distribution.
• The fourth and fifth digits represent more specific areas, like post offices and postal
delivery zones within a city or town.
• ZIP + 4 has four extra digits that identify a specific segment of the five-digit delivery area
— like a city block, office building, or individual high-volume mail receiver.
Handy text terms
✓ 2moro – Tomorrow ✓ LU Loading Up
✓ 2nite – Tonight ✓ L8R – Later
✓ 2B - To Be ✓ LOL – Laughing Out Loud
✓ AFK – Away from Keyboard ✓ M/O - Miles Out
✓ ASAP - As Soon As Possible ✓ MT - Empty
✓ APPT - Appointment ✓ OMG – Oh My God
✓ OTD - On Time Delivery
✓ BRB – Be Right Back
✓ OFD - Out for Delivery
✓ BTW – By the Way ✓ OL - Online
✓ B4N – Bye for Now ✓ OLT - Online Tracking
✓ CST – Central Standard Time ✓ OS&D - Overage, Shortage and Damages.
✓ DEL - Delivery ✓ PU - Pickup
✓ DR - Driver ✓ PST – Pacific Standard Time
✓ POV – Point of View
✓ DP - Dispatch
✓ SHPR - Shipper
✓ DNC - Do Not Call ✓ RCVR - Receiver
✓ EST – Eastern Standard Time ✓ UL - Unloading
✓ FCFS -First Come First Served ✓ THX / TX / TKS – Thanks
✓ FYI - For Your Information ✓ TY - Thank You
✓ GR8 – Great ✓ TTYL – Talk to You Later
✓ G2G - Good to Go ✓ WTN / WTNG – Waiting
✓ LnR - Loaded and Rolling

USA Time zones

Note: For those states that have multiple time zones, make sure to confirm the time using the
city’s zip code.
This industry has multiple parties involved, and each one of them has an important role in
accomplishing the main goal of the process, which is customer satisfaction. Let’s take a look!

Customer: Must provide clear information about the shipment and will be the one paying for
everything that happens when moving goods from point A to point B.

Freight Broker/ 3PL: Bridge between Customer and Carriers, each one of them has different
management of their tasks, industries, and knowledge.

Freight Broker: Work with Private Carriers and Full Truck Load (FTL) Industry. They negotiate
rates, trying to get the best one for the customer and them. They settle this by a rate agreement.

3PL: Work with Common Carriers and LTL Industry. They have annual contracts with the
carriers with discounts, and the rates are already set.

Carrier: Company or individual in charge of transporting the goods. We can find Private
Carriers, Common Carriers, or Owner Operators.

Shipper: This is the place where the goods are going to be picked up. They oversee the loading
and properly pack the goods. (Audits are done in the shipper if it is a 3PL). When the carrier
arrives at the shipper, they must have the Bill of Lading (BOL) with the load details.

Consignee: This is the destination of the goods. They oversee the unloading of the goods
and verify there are no overages, shortages, or damages (OS&D) and sign the Proof
of Delivery (POD) MODE.
Most of Lean Solutions Group's customers are Logistics and Transportation companies that
offer domestic transportation throughout the US. Due to its nature, ROAD service is ideal for
these types of services. Regardless, let’s go over the modes of transportation and the
advantages and disadvantages we can identify for all of them.
Ocean transportation

Businesses use sea transportation for the delivery of goods from distant suppliers. Most sea
transportation is conducted in containers that vary in size. Goods can be grouped into
containers (LCL) or fill containers (FCL). Sea tankers are used for bulk shipments of loose
goods such as oil, grain, and coal.

Sea transportation is slow compared to most versions of land or air transport. Still, it is less
expensive than those modes of transportation and is useful for transporting non-perishable
goods in large quantities.

Advantages
• Ideal for transporting heavy and bulky goods.
• Suitable for products with long lead times.

Disadvantages
• Longer lead/delivery times.
• Bad weather.
• Difficult to monitor the exact location of goods in transit.
• Customs and Excise restrictions.
Air Transportation
The aircraft is the fastest method of transportation. Aviation can quickly transport people and
limited amounts of cargo over a longer distance. Yet, the biggest disadvantages are high costs
and energy use.

Time has become especially important regarding principles such as postponement and just-in-
time within the value chain, resulting in a high willingness to pay for quick delivery of key
components or items of a high value-to-weight ratio. In addition to mail, common items sent by
air include electronics and fashion clothing.

This mode can be used for Express Shipping and Overnight Shipping since it can cover long
distances in a short time. However, airlines have several dimensions and product restrictions to
take into consideration.

Advantages
• Express Shipping and Overnight Shipping service.
• Fast delivery, usually between 24 and 48 hours.
• Reduced lead time on the supplier.
• Improved service levels.

Disadvantages
• Subject to flight delays and/or cancellations.
• Airport restrictions.
• Air Freight rates are usually way more expensive due to the costs per cubic
feet regulated for an aircraft.
• Airlines have several dimensions and product restrictions to have in
consideration: each pallet cannot weigh more than 2,200 LBS, cannot
measure more than 119 inches in length, and 70 inches high.
• Boxes weighing more than 50 LBS must be palletized.
Rail Transportation
Operating across nearly 140,000 miles, U.S. freight railroads manage a complex nationwide rail
system efficiently, reliably, and affordably. As a result, the U.S. is home to the most efficient and
cost-effective rail system in the world. Shipping by rail is generally more economical and better
for the environment. Plus, it's an especially effective option if truckload capacity is tight.
However, transit time in Rail Service is longer than OTR (Over the Road), and it can experience
delays easily.

Several types of cargo are not suited for containerization or bulk; these are transported in
special cars custom-designed for the cargo, such as:

• Automobiles are driven on or off carriers and are stacked in open or closed auto racks.
• Steel plates are transported in modified gondolas called coil cars.
• Goods that require certain temperatures during transportation can be transported in
refrigerator cars (or reefers - U.S.), or refrigerated vans (UIC), but refrigerated containers
are becoming more dominant.
• Center beam flat cars are used to carry lumber and other building supplies.
• Extra heavy and oversized loads are carried in Schnabel cars.

Advantages
• Capacity.
• Cost-effective VS transit time.
• Safe mode of transportation.

Disadvantages
• Subject to unforeseen delays.
• Transit time is subject to the operator's timetable.
Road Transportation
Road transport by truck is often the initial and final stage of freight transport, providing door-to-
door transportation. The nature of road transportation of goods depends, apart from the degree
of development of the local infrastructure, on the distance the goods are transported by road,
the weight and volume of the individual shipment, and the type of goods transported. For short
distances and light shipments, a van or pickup truck may be used. And for large shipments,
even if less than a full truckload, a truck is more appropriate.

To avoid accidents caused by fatigue, truckers must keep to strict rules for drivetime and
required rest periods (known in the U.S. as hours of service and DOT break). Tachographs
record the times the vehicle is in motion and stopped. Some companies use two drivers per
truck to ensure uninterrupted transportation, with one driver resting or sleeping in a bunk in the
back of the cab while the other is driving. This is called a Team Driver system.

Advantages
• Cost-effective & Fast delivery.
• Ideal for short distances to domestic destinations.
• Ideal for transporting perishables (ex: fruit and vegetables).
• Easy to monitor the location of goods.
• Easy to communicate with the driver.
• Ideal for the handling of small packages and courier services
with expedited delivery.

Disadvantages
• Transport is subject to traffic delays due to mechanical breakdowns, extreme
weather, or unexpected events.
• Goods are exposed to damage due to excessive trans-loading, mishandling,
road, or truck conditions.
• Driving regulations can affect regular transit time.
WHAT CANNOT BE SHIPPED?
Restrictions vary between carriers, but they usually refuse to move:

• Radioactive material.
• Items with a value that
exceeds $100,000.
• Infectious substances.
• Explosives, guns, or ammunition.
• Medical marijuana.
• Coin or currency.
• Jewelry/Precious stones.
• Tobacco or tobacco-related items.

WHAT CAN BE SHIPPED?

• Machines or Machinery parts.

• Electronic Components.
• Lumber.
• Construction Materials.
• Tools.
• Foodstuff.
• Textiles.
• Chemicals.
• Non-perishable food.
• Produce fruits and vegetables.
PACKAGING TYPES
Pallets:
A pallet or skid (PLT) is a portable platform for handling, storing, or moving materials and
packages (as in warehouses, factories, or vehicles). Palletization increases cargo
handling efficiency.

Standard pallets
Dimensions: 1,000 mm x 1,200 mm (40 × 48 inches).
The maximum weight capacity per standard pallet is 2500 lbs.
Standard Pallet Load

1. Single Pallet for weigh-out products

Dimensions:
Maximum recommended product height 55 inches plus pallet height 6 inches.

Advantage

• Good for heavyweight products.

• Maximum weight per pallet is 2500 lbs.
• Maximum density for storage.

Disadvantage

• Cannot double stack.

2. Double Stacked Pallets

Dimensions:
Maximum product height 48 inches plus 6 inches height per pallet.

Advantage

• Pallets can be double stacked.

• Maximum weight per pallet is 2500 lbs.
• Good stability for a dense product.

Disadvantage

• Cost of an additional pallet.

3. Single Pallet with High Load

Dimensions:

Maximum product height 103 inches plus 6 inches height per pallet.

Advantage

• Excellent cube utilization.

• Maximum weight per pallet is 2500 lbs.
• Good for lightweight, cube-intensive product.

Disadvantage

• May not fit in marine containers if transferred from road trailers.

 Crates (CRT): Any completely enclosed boxlike packing or
shipping case made of solid wood.

Cartons and Boxes (CTN): Any of various containers made

from cardboard or coated paper.

Totes: Plastic containers used to transport liquids.

Drums:

Pails: Plastic
containers for small
quantities of liquid.
EQUIPMENT
DRY VAN
A van can refer to a box-shaped trailer or semi-trailer used to carry goods from Origin to
Destination. Dry vans are the most common type of freight trailers hauled by commercial
trucking companies.

The 53-foot trailer is the largest available for use with a semi-truck. If the cargo load is not big
enough to warrant this size, the trailers are also available in 28’, 45’, and 48’ foot sizes.
Choosing the right size load for cargo is important in managing shipping costs.

Additional questions about the size and cargo capacity of any given semi-truck can be acquired
by contacting the trailer provider, as this information will vary slightly.

Air ride suspension is preferable in many cases and sometimes mandated. Anything fragile or
vulnerable to shock or sudden movements will like to require an air ride in addition to other
precautions. Some good examples are:

- Precision calibration equipment.

- Liquid containers.
- Glass products or materials.

53’ foot trailer

A typical 53’ foot trailer that is 9’ feet high and 8’ feet wide contains 3,816 cubic feet of space.
However, because of the irregular shape of many items being shipped, a trailer is often not
filled. Air pockets are in various locations throughout the trailer.
This trailer can fit a maximum of 30 pallets on the trailer's floor. To pack a trailer with 30 pallets,
industry-standard pallets of 40” inches by 48” inches must be packed into two rows with the
wide sides facing the front and back of the trailer.

48’ foot trailer:

A 48’ foot trailer can hold 28 standard pallets at a time. Standard pallets are generally 48”
inches wide by 40” inches long, so a 48-foot trailer that is 99 inches wide can be loaded 14
pallets deep and two pallets wide.
REEFER TRAILER
A refrigerated van is a cooled box designed to carry perishable goods at specific temperatures.
They are fitted with cooling mechanisms to maintain the quality of the goods inside them.
Refrigerated vans are also called reefers or reefer containers that control ripening during transit.
Refrigerated goods are defined as perishable food products requiring a controlled
environment while in transit. The primary refrigerated trades are meat, fish, fruits, vegetables,
and dairy products.
FLATBED AND FLAT EQUIPMENT

All flat trucks share the commonality of a level platform lacking walls and roofing. The only
typical variety is the option between the options of a rigid body and those with detachable,
articulated cargo components. The obvious advantage is the freedom of proportion; any sized
object with basilar dimensions not much larger than the area of the flatbed could feasibly be
loaded. The loading of the truck itself is also generally an easier task since it could potentially be
performed with a crane. Of course, the drawback of this design is that the shipment must be
able to protect itself from the environment.

Flatbed shipping is also not without its limitations, namely its legal restrictions. Once the
shipment has grown past the size of the truck, it is constrained by the size of the road the truck
travels on. The safe area is generally considered to be 8’6” in width and height. Anything past
these dimensions will almost fall into the domain of over-dimensional loads, or what is
commonly known as “Wide loads” or sometimes Heavy Hauls. For this reason, it is particularly
important to be very specific in communicating the exact dimensions of the shipment to the
potential logistics company. They know precisely what their equipment can and cannot legally
handle. The specificity of the proportions remains critical even when there is room to spare
since a partial load from a different customer may fill that room. Once the truck arrives, the
sender is liable for ensuring the cargo is equal to or smaller than the appropriate space
agreed upon when the contract was made. Overages will most often result in expensive
fees and delays.
One of the most common flatbeds used, it’s the Removable Gooseneck (RGN), that is a lowboy
that can be removed from the head of the truck and is mostly used for hauling heavy machinery
and oversized cargo (First image next page).
CONESTOGA
A trailer able to shrink the rooftop all the way back to the front of the truck. It is most used for
fast load and unloading with oversized freight that needs protection.

Standards Common Lengths: 48-53 feet

Capacity Max Weight: 30,000 lbs.
Width: 102’
‘Height: 102’’
Available Options: Spread Axle trailer that
can have a driver team.
CURTAIN SIDE
Side access of the load due to a removable curtain. It gives the protection of a dry van with the
convenience of a flatbed for building materials, industrial and general cargo.

Standards Common Lengths: 26-53 feet

Capacity Max Weight: 44,000 lbs.
Width: 9‘Height: 9’

PUP TRAILER

Common lengths: 28 feet.

Width: 96-102 inches.
Height: 12.5 - 13.5 feet.
Door type: Swing Door/Roller
door (varies by carrier).
Capacity.
Max Weight @ 28 ft length:
22,000 lbs.
Max Pallets @ 28 ft: 14 Pallets.
STRAIGHT TRUCKS

Sprinter Van: For small cargo or courier

service. *Not dock height. Enclosed Straight Van: For larger
packages, cartons, bundles,
and crates.

Single Axle Van: For small to Flatbed Straight Truck: machines,

medium-size packages/cartons. building supplies, metals, and
construction equipment.

ROAD WEIGHT AND SIZE LIMITATIONS.

The regulations are not limiting how much freight can go on a trailer but the vehicle's total
weight and axle weights.

Axle 1- --------------- 12,000 LBS Max

Axles 2,3 ------------- 34,000 LBS Max
Axles 4,5 ------------- 34,000 LBS Max
Axles 1,2,3 ----------- 46,000 LBS Max
Axles 2,3,4,5 -------- 68,000 LBS Max
Axles 1,2,3,4,5 ------ 80,000 LBS Max

• Gross Weight: The maximum allowable total gross weight for trucks on U.S. Interstates
is 80,000 lbs., including tractor weight, chassis and container weight, cargo weight, etc.
Off-interstate limits are typically lower. Please refer to the American Trucking
Association's "Summary of Size and Weight Limits."
([Link]
• Axle Weight: Allowable gross weight on a single or set of axles is regulated by individual
states. States typically allow 34,000 lbs. per tandem axle and 20,000 lbs. per single axle.
Please refer to the American Trucking Association's "Summary of Size and Weight
Limits."
Note: Over 50% of all U.S. citations issued are for axle weight violations, usually the result of uneven
distribution of the load inside the container.
OTR MODALITIES
In the U.S., moving goods by truck offers shippers infinite flexibility at a relatively low cost. Truck
transportation can move large items faster than rail as the shipment is independent of the
railroad's timetable.
TL: “Truck Load” or “Full Truck Load”:

Standard Service
• BUSINESS to BUSINESS.
• DOCK to DOCK.
• Transit times are often accurate.
• Allow pickup and delivery appointments.
• 2 free hours for loading/unloading.

It is the best way to transport freight if you have a large shipment (usually around 16 pallets
or more). It is a considerably faster way to transport your freight compared to LTL shipping,
as you will save time by not having the driver stop for multiple pickups or having to load
and unload freight throughout the trip. Truckload is generally more expensive than shipping
your freight LTL.

You can also use this modality if you have a delicate shipment that you are uncomfortable
sharing the truck space with multiple other shipments. In this case, we will call it a DEDICATED
SERVICE. This also applies if there is a time-sensitive freight: FTL freight is sent directly to its
destination (vs. routing through a hub system), which results in shorter transit time.
LTL: “Less Than Truckload”

Standard Service:
• BUSINESS to BUSINESS
• DOCK to DOCK
• Transit times are estimated.
• 2hrs window for pickup is a MUST.

LTL carriers generally utilize van trailers that are covered or enclosed trailers. There are a
ew refrigerated LTL carriers that utilize temperature-controlled trailers. Still, Reefer Orders
are mostly for FTL since finding more products to be moved with the same temperature
can be tough.

• May not take more than 10FT of the trailer or exceed the CFT (Cubic Feet) limits
depending on each carrier.

• Weight may not be greater than 3,500 LBS per piece. Only the YRC can handle pieces
weighing up to 6,000 LBS.

• If the total weight exceeds 10FT or 4,000 LBS total, your shipment can be quoted as
VOLUME. However, keep in mind limits may vary from one carrier to another.
PARTIAL/VOLUME SHIPPING:
A Partial truck can be thought of as the next step up from LTL freight. Partial truckloads fall
between LTL and full truckloads, typically involving shipments over 5,000 pounds or 6 or
more pallets.

BENEFITS OF PARTIAL TRUCKLOAD SHIPPING

• One truck: Partial truckload shipping allows your freight to stay on one truck for the
duration of transit. When only one truck is involved, the freight is loaded and unloaded
once, which means less handling and faster transit times than LTL.

• No freight class is required: Freight class is not required for partial truckload shipping,
which can help you avoid extra charges associated with freight reclassification if you
happen to get it wrong.

• Less freight handling: When freight is handled less, the chance for damage is reduced.
A partial truckload can be ideal for shipments susceptible to damage during loading
and unloading.

Source: [Link]

PARTIAL

• Private Carriers.
• Rates based on distance and quantity.
• Rate Agreement or Rate Confirmation.
• One quote can be applied to several orders.
• Usually faster than LTL and VOLUME, however, it might require
flexibility for PU and DEL.

VOLUME

• Common Carriers.
• Although sometimes referred to as partial truckload, volume LTL has distinct size
requirements and does need product crated or on pallets, which is not a requirement
for partial TL shipments.
• QUOTE# needed.
• Annual contracts with discounts.
• Short Exp. Date.
• One quote can only be applied to one shipment.
• Not good for time-sensitive orders.
“To give an example, a 10,000-pound LTL shipment (seven pallets, class 70) moving from
Chicago to Los Angeles can cost between $2,000 and $4,000 on a top-tier LTL carrier (but may
be subject to linear foot provisions, leading to additional charges) and between $2,700 and
$3,200 as a full truckload (depending on service requirements and capacity). However, that
same shipment as a partial truckload cost between $900 and $1,050—a substantial savings
opportunity for shipments that meet the criteria of a partial truckload.”

Source: [Link]
MAIN DOCUMENTS
WHAT IS A BOL?
The bill of lading is a required document to move a freight shipment. The bill of lading (BOL)
works as a receipt of freight services, a contract between a freight carrier and shipper, and a
title document. The bill of lading is a legally binding document providing the driver and the
carrier with all the details needed to process the freight shipment and invoice it correctly.

When you book a shipment with us, the freight bill of lading is automatically generated based
on the shipment details entered during the quoting and booking process. The bill of lading
should be provided to the carrier on pickup. A copy of it should also be attached to the
packaged freight.

WHAT DOES IT CONTAIN?

- Names and addresses: The full names and addresses of the shipper and receiver
(consignee) should be legible and easily located on the document.

- Purchase orders or special reference numbers: These numbers may be important to your
business or a necessary reference for freight to be released for pickup or accepted at delivery.

- Special instructions: Here is where you will note instructions for the carrier that are not extra
service requests like liftgate or delivery notification.

- Date: This is the pickup day, and it may be needed as a reference to track your freight or when
you reconcile shipping invoices.

- Description of items: Shippers should note the number of shipping units, the dimensions,
and weight, as well as information about the material and its makeup.

- Packaging type: Note whether you are using cartons, crates, pallets, and/or drums
when shipping.

- NMFC freight class: Freight classes can impact the cost of your shipment. Freight shipments
are broken down into 18 classes based on weight, dimensions, density, storage capability, ease
of handling, value, and liability.

- DOT hazardous material designation: Hazardous shipments must be cited, and special
rules and requirements apply when shipping.
WHAT IS A POD?
The delivery receipt copy of a freight bill indicating the name of the person who signed for a
package with the date and time of delivery, confirming the product was received in perfect
conditions and complete.

The POD will also show if there were any Shortages, Overages, or Damages. (OS&D): (OS&D)
are discrepancies between the bill of lading and the freight on hand. Most of these
discrepancies are noted at delivery, pickup, or interchange. Overage is when freight on hand is
not shown on the BOL. Short is when freight shown on the BOL is not on hand. Damaged
means that there is damage to the freight.
.
CARRIER’S LIABILITY AND FREIGHT INSURANCE.
As defined by The Law Dictionary, A common carrier is liable for all shipment loss, damage, and
delay except for that caused by an act of God, the act of a public enemy, the act of a public
authority, the act of the shipper, and the goods' inherent nature.

Every freight shipment is covered by some form of liability coverage determined by the carrier.
The amount of coverage is based on the commodity type or freight class of the goods being
shipped and covers up to a certain dollar amount per pound of freight.

After filing a claim, If the carrier accepts the evidence provided by the shipping customer, they
will pay for the repair cost (if applicable) or manufacturing cost, not the retail sell price.

Freight insurance is a good way to protect your customers and business from losing or
damaging your freight while in transit. There is an extra charge, of course, and it is typically
based on the declared value of the goods being shipped. Third-party insurers provide most
freight insurance plans.

CARRIER LIABILITY LTL VS FTL

For the most part, carrier liability covers up to a certain dollar amount per pound of freight. It is
not uncommon to find that the included liability coverage is less than the actual value of the
goods being shipped. Also, if the freight is used and not directly from the manufacturer, the
liability coverage will be significantly less than it would be for new goods.

LTL

In some cases, the carrier liability coverage may be less than the actual value of the freight. It’s
common to see liability restricted to $0.25 per lb. or less. The carrier determines liability
coverage and varies based on freight class, packaging, commodity type, and other conditions.

For new items, coverage usually depends on the freight class. Coverage increases with the
class—this ranges from about $1-2 per pound up to $25 per pound for the highest freight
classes. For used or resold goods, coverage typically starts at $0.10 per pound, regardless of
freight class.

FTL

Carrier liability coverage $100.000 for a full truckload.

FREIGHT INSURANCE
Shippers’ interest cargo insurance, also sometimes referred to as freight insurance or goods-in-
transit insurance, is a great way to protect customers from lost or damaged freight while it is
being transported. This insurance is an additional charge that is typically based on the value of
the goods being shipped. As previously mentioned, carrier liability may only cover a certain
dollar amount per pound of freight. When your freight has a higher value than what is covered
by liability, cargo insurance may be very beneficial to you to better protect yourself from lost or
damaged cargo. Another benefit of purchasing cargo insurance is that you do not need to prove
the carrier was at fault for the lost or damaged items, only that the damage or loss occurred.

TYPES OF FREIGHT INSURANCE

ALL RISK

With this coverage, you get a very diverse type of protection. Effectively, you are covered
against pretty much all risks associated with loss or damages, due to external forces. This
includes damages caused by negligence, natural product defaults, customs rejection, cargo
abandonment, and more. For companies shipping highly valuable and fragile items, this type of
coverage will give the greatest peace of mind. Of course, this coverage will come with a high
price tag since the insurance company is taking on increased risk.

NAMED PERILS POLICY

Is a policy that gives you more control over the protection you receive. Here, you are only
covered for things that are explicitly named in the policy. As such, it is more limited but will
usually cost less money. You can choose what’s included and add as many things as you like.

FREIGHT INSURANCE LIMITATIONS

Cargo insurance does not cover risks and problems that the shipper has a lot of control. It is
important to keep this in mind, so you lessen the chances of your freight being damaged or lost.

And generally, policies exclude:

• Damage due to inadequate packaging: If any damage to your goods is traced back to
improper packaging of your freight, the policy won’t cover you.
• Damage due to flawed products: If the carrier can show you that the damage was because
of faulty items inside your cargo, the policy won’t pay you back.
• High-risk cargo: Some insurance providers don’t insure hazardous materials, certain
electronic products, and other highly valuable or fragile products.
• Some modes of transportation: Some policies may only cover your freight when it is
onboarding a ship, a plane, or a truck.
CLAIM PROCESS

A claim is defined as a legal demand by a shipper or consignee to a carrier for financial

reimbursement for the loss or damage of a shipment. They can also be referred to as shipping
claims, cargo claims, transportation claims, or loss and damage claims.

The claims process is designed to determine liability in cases that loss and damage occur and
resolve those where the carrier is responsible.

We should need this essential information before file a claim:

• The shipment must be identified to enable the carrier to investigate

• The type of loss or damage must be stated
• The amount of the claim must be stated or estimated
• A demand for payment by the carrier must be made.

TYPES OF FREIGHT CLAIMS

• DAMAGE: The most common freight claim falls under the “damage” category. Which, as
it states, means that the freight arrives at its destination damaged. For it to fall under this
category, it must be visibly damaged upon arrival and noted on the proof of delivery.

• LOSS: This is when freight has been documented as picked up from its original location
but is never delivered to its destination. This can be proved through a proper original bill
of lading, and no official signed proof of delivery.

• SHORTAGE: A shortage is when only part of the expected freight, documented on the
BOL, arrives at the destination. This can happen for a multitude of different reasons; one
being is something that falls off the original pallet. Therefore, verifying the pieces within a
received shipment is important compared to the carrier’s delivery receipt. If it can be
acknowledged and documented at the time of delivery, with the driver’s signature
verified, filing your freight claim will be much simpler.

• CONCEALED DAMAGE OR SHORTAGE: This is the toughest freight claim to file:

concealed damage or shortage. That’s because these damages/losses are hard to see
when expecting freight on arrival. Often consignees sign the proof of delivery, only later
to open the box or pull back the shrink wrap and find that some of their freight is
damaged or missing.

The best practice here is to inspect your freight fully upon arrival. Having the driver
acknowledge the damage/loss and note it on the POD is the only way to help you get the entire
value of your freight returned. If not, you may only be able to get repaid a partial amount.
CARRIER LIABILITY VS FREIGHT INSURANCE IN THE CLAIM PROCESS
If your freight is only covered by carrier liability coverage:

• Your claim must be filed within 9 months of delivery.

• The delivery receipt must include a notice of damage.
• Proof of value and proof of loss is required.
• The carrier has 30 days to acknowledge your claim and must respond within 120 days.
• Carrier negligence must be proven.

If your shipment is covered by freight insurance:

• Proof of value and proof of loss is required

• Claims are typically paid within 30 days
• You are not required to prove carrier negligence

Source: [Link]
FREIGHT DEPARTMENTS
What is the FTL industry?
The Full Truck Load industry (FTL or TL) is a service offered to transport large shipments or
high-risk and delicate freight, or those we consider as time-sensitive shipment that
accomplishes the characteristics of this industry.

BENEFITS OF TRUCKLOAD SHIPPING.

• Faster transit times: Goods shipped via full truckload generally arrive at their
destination quicker than goods shipped via LTL’s hub-and-spoke model.

• Less chance of damage: Full truckload shipments are generally less susceptible to
damages as they are handled less times than LTL shipments.

• Rates: If shipments are large enough to require the entire use of a trailer’s space, it
could be more cost-effective than booking multiple LTL shipments.

• Tracking: You may have access to the driver’s contact information, allowing you to
easily follow up and get updates directly from him.

TRUCKLOAD SHIPPING BEST PRACTICES.

• Be informed: Shippers should research to understand the supply and demand for
truckload equipment and how it impacts rates.

• Be consistent: Shipping the same amount of freight, on a regular schedule, to the same
locations, could help you to secure consistent capacity.

• Be flexible: Shippers that plan and leave time for their shipments to fit a carrier’s
schedule could realize cost savings.

• Be efficient: Packaging shipments so they are loaded and unloaded easily will improve
efficiency and productivity.

Source: [Link]
Let’s get started!

Truckload Equipment Types

The term “equipment” means “what kind of truck” in the shipping industry. Similar to the air
travel industry, these different pieces of equipment are used for different types of freight
shipments. Apart from their uses, their costs are also different. Let’s start with the most common
piece of equipment, the DRY VAN.

A dry van is your normal, 53 ft. or 48 ft. semi-truck. It is enclosed, not heated, or cooled, and
has swing doors in the back for loading and unloading freight. If you have ever driven on an
interstate, you are familiar with this sort of equipment. A dry van can transport any freight that
fits inside the trailer (standard dimensions are 102 in. wide and 110 in. high), or 26-28 standard-
sized pallets. The typical maximum weight these trailers can scale is 45,000 lbs., but this will
vary from carrier to carrier depending on preferences and trailer type.

If you are looking to move bigger equipment that won’t fit inside a dry van, you’re looking for a
FLATBED TRAILER. This equipment is primarily used for large equipment that needs to be
sideloaded. The trailers most used are 48 ft. in length, with a maximum weight limit of 48,000
lbs. Keep in mind that flatbeds and dry vans do not offer the services of a liftgate. Another
important aspect to consider when it comes to shipping on flatbed trailers is the security of the
freight once it’s on the trailer. Apart from being subject to the elements, you will need to make
sure your freight is properly secured to the deck. Carriers often offer straps and tarps to ensure
that your freight is as secure and safe as possible.

The third type of equipment available for a full truckload shipment is a STEP-DECK TRAILER.
This equipment is very similar to a flatbed truck in that it has no roof or sides, however, a portion
of the trailer deck is lower. This is in place primarily to increase the legal height the freight can
occupy. For a standard flatbed trailer, the maximum height is 8.5 ft., while a step-deck allows a
maximum legal height of 10 ft. Keep in mind this drop-deck limits the length of the trailer in a
way a flatbed does not. There are also several variations of this type of trailer that can
accommodate commodity heights up to 13 ft., but as with most specialized pieces of equipment,
availability can be limited.

The final piece of equipment we will discuss is a refrigerated truck, also known as a REEFER
truck. This is for shipments that are temperature controlled whether it be for freezing or heating
purposes. This type of equipment is found nationwide in both 53 ft. and 48 ft. lengths. Although
a common piece of equipment, they can often be difficult to source as demand shifts throughout
the year, moving the equipment into different markets and limiting availability. The typical
temperature range in these trailers is from -10 degrees Fahrenheit to 75 degrees Fahrenheit.
Pricing will typically be more expensive than a dry van as you are also paying for the fuel to run
the motor on the trailer, which regulates the temperature.

Carrier vs. Broker

These terms are not synonymous, but they do complement each other. Together they act as the
building blocks of the freight shipping industry. Let’s start with the carriers.

The aptly named FREIGHT CARRIER is a company that owns and operates a fleet of trucks
that move freight from point A to point B. They are the foundation of the freight industry and vary
in size and scope, from small local carriers with a limited number of trucks that service niche
geographical areas to national carriers with hundreds of trucks at their disposal and hub
across the country.

Next, we have the DISPATCHERS, the men and women who designate where and when their
drivers must pick up and deliver freight. These dispatchers constantly contact their drivers,
confirming pickups and deliveries are completed and scheduled correctly.

There is also a CUSTOMER SERVICE DEPARTMENT, made up of representatives who handle

most of the incoming pickup requests as well as tracking any shipments that are currently in
transit. Carrier customer service teams can assist customers in several ways and are often the
first responders for any issues that might occur.

As we’ll discuss later, sometimes freight can be damaged, lost, or delivered short, and most
carriers have an OS&D department. OS&D stands for Overages, Shortages, and Damages,
and they’ll be the ones to handle any issues of damage or loss with your shipments.

We’ll discuss freight carriers in more detail as we make our way through this material, but let’s
switch sides and look at freight brokers, specifically what they are and what they do. Brokers act
as coordinators for your freight shipping, and though they won’t be driving the trucks, a good
freight broker will be every bit as “in the loop” as the dispatchers, drivers, and dockworkers.
A FREIGHT BROKER is a third-party company that acts as a bridge between freight carriers
and freight customers. The biggest misconception for a freight beginner is that these two
(Brokers and Carriers) are the same. They are not. A simple way that I like to think of it is this: If
the freight industry is a giant machine, the freight carriers are the moving parts, and the freight
brokers are the oil that makes sure everything runs smoothly.

Understanding the term “third party” is important when dealing with a freight broker. While a
freight carrier will physically be handling your freight on its shipping path, most of the time, a
freight broker will never actually see your freight (outside of an occasional picture). While
there will always be geographic proximity between carrier and customer, a broker works
remotely through a transportation management system that we’ll discuss in greater detail later in
this book.

As with any industry, there are varying levels of service delivered by freight brokers depending
on the company, reputation, culture, etc. The first purpose of the freight broker industry is
associated with lower shipping rates from the carriers due to volume. This service is offered by
all freight brokers and, for some, will serve as their primary and sole service. But how does the
freight broker get better rates than a customer going directly to the carrier? The simple answer
is volume/bulk. A freight broker will have multiple customers that ship under their account, and
this number can stretch from hundreds to thousands of customers. With freight brokers bringing
all this business to the carriers, they are in a higher position of power than your average
shipper. This power enables them to negotiate lower rates and contracts unavailable to the
typical consumer. The freight broker can then pass these lowered shipping rates to their
customers. This is the most basic service a freight broker offers: cheaper shipping rates.

The second service that a good freight broker should provide is customer service. While some
freight brokers are content only to offer their customers lowered shipping rates, other freight
brokers (the good ones) consider the “cheaper rates” part of their service the necessary, but
ultimately less important, facet of their business. The primary goal of a good freight broker is to
develop a strong customer/ broker relationship. Many of these freight brokers consider
themselves “full service” in that they will handle all aspects of their customer’s shipments.
That can include scheduling pickups, dealing with delivery issues, claim issues, damage
issues, or a host of other situations. This sort of service provides a sense of comfort and
convenience for many customers. A good freight broker is a true shipping professional,
and these freight professionals know the ins and outs of a complex shipping world, so their
customers do not have to.

In conclusion, carriers and brokers are not interchangeable, though they work closely together
in the freight industry. A freight carrier is physically responsible for moving shipments from point
A to point B. A freight carrier is a company that owns trucks, employs drivers, and charges for
their service of picking up and delivering freight. On the other hand, a freight broker is a third-
party company that offers lower shipping rates to customers. A good freight broker also offers
an array of customer services and is always working to develop meaningful and helpful
customer relationships to handle all aspects of their customer’s shipments.
 Parties Involved

Types of Carriers
Private Carrier

•They select their customers and are not obligated to serve all public.
•The are able to negotiate their rates based on miles, weight, season and other factors.
•Rate agreement is signed once agreed upon rate.
•Normally prefer FTL, but can also offer Partials.
•They work with brokers
•Private companies, based in one or a couple of states, limited coverage in the country.

Owner Operator

•Owner-Operators are those individuals that own and operate their own trucking business.
They may lease on to a carrier or they may operate under their own authority.

Documents needed
WHAT IS A RATE AGREEMENT?
A rate confirmation is a legally binding document that is given to a carrier by a freight broker that
lists all pertinent information related to a load that you will be hauling on their behalf. It is the first
and most important step of the load booking process.

It is a legally binding document providing the driver and the carrier with all the details needed to
process the freight shipment and invoice it correctly.
It contains:
 • The Broker’s name and contact information.
• A unique load number and reference numbers.
• The shipper’s complete information, date, and time.
• The consignee’s complete information, delivery date, and time.
• A general description of the cargo.
• A negotiated rate that you will haul the load for.
• If there are multiple pickup or delivery locations, they should each be
listed on the document.
• Any additional instructions, fees, or accessorial.

PURCHASE ORDER
Purchase order (PO) is an order request that is a legally binding document sent from a buyer to
a seller. This document contains details about the item type, quantities, and agreed-upon prices
for products or services. Buyers also use purchase orders to ensure the products that arrive are
indeed the products they ordered.
 The purchase order includes:

• A PO number.
• A shipping date.
• Billing address.
• Shipping address.
• The requested items.
• Quantities and price.

PACKING LIST / PACKING SLIP

A packing slip is a shipping document that comes with an order, usually inside an attached
shipping pouch or inside the package itself. Sometimes referred to as a shipping list, waybill,
packing list, bill of the parcel, or unpacking note, a packing slip provides buyers with product
details that ensure the product is indeed what they ordered. Packing slips are only required if
products are being shipped and received for sale.
 SCALE TICKET
A printed weight ticket from a scale certified or
inspected by a government authority such as the
Dept. of Agriculture, indicating the date weighed,
the weight of the shipment, and the vehicle ID of
the unit being weighed.

Note: Remember the road weight limitations.

ESCORT SERVICE RECEIPT

T.W.I.C. "Transportation Worker Identification Credential" This is issued by the U.S. Federal
Government, T.S.A. Transportation Security Administration. The T.W.I.C. card is a "biometric"
I.D. card that costs money, involves going through a security check, has a biometric chip and
photo identification, and lasts up to 5 years. In certain U.S. ports, since the last part of 2008, all
drivers must deliver cargo "directly" to the seaport. If the driver does not have a T.W.I.C. Card,
he must pay for the escort service and get a receipt as proof.
LUMPER RECEIPT
A lumper charge is a fee charged to the carrier when a shipper or consignee utilizes third-party
workers to help load or unload the trailer contents. Lumpers are often used at food warehousing
companies and grocery distributors. These fees are often reimbursable to the driver by the
shipper or the freight broker.

Truckload Quotes
Let’s begin with the foundation of truckload shipping and introduce a few terms that we’ll visit
again. Unlike LTL shipments, there is no system or set of parameters that can be applied to
“standardize” truckload shipping. This lack of system leads to a more fluid shipping industry than
that of the LTL variety and allows for more negotiation between broker, carrier, and driver.
Instead of abstractly trying to explain the details of a truckload shipment.

The first step in acquiring a full truckload quote is assembling information, some of which is
information also needed for a typical LTL shipment. For an accurate truckload quote,
he will need:

• Origin and destination zip codes, as well as the estimated date of pickup.
• Total piece count and weight including dimensions of the pieces and
if they are stackable.
• Commodity being shipped including the freight value. Unlike LTL, a freight class
is not used in full truckload shipping, and pricing is subjective and dependent on
value and insurance.
• Equipment being used for shipment. If you’re unsure of the equipment needed
speak with your Truckload representative for advice.

Once all the information has been compiled, it’s time to take it to the freight broker. From there,
they will post the load on a series of Internet LOAD BOARDS. Carriers monitor these load
boards across the country. A good broker will also reach out to their network of trucking carriers
and operators as more options allow for better pricing and service. Price negotiations will
commence between the broker/shipper and the carrier, and depending on the availability of
drivers, freight size, distance, and local freight market, a price will be agreed upon.

Full truckload price negotiation and carrier vetting are the primary reasons we suggest using a
qualified freight broker when it comes to shipping full truckload freight. To get the cheapest rates
from the carrier, certain information is needed that can only be provided by a freight
professional. Also, freight professionals have the experience and tools to vet and secure the
carrier properly. Making sure the carrier has the proper registrations, operating authorities, and
insurance is critical in this process. If your freight moves with a carrier who does not have these
things in place then you, your freight, and fellow motorists are at risk.
Unlike LTL shipping, a full truckload shipment will remain on the same trailer for the entirety of
its transit. This differs wildly from standard LTL shipments, where terminals are used to move
the freight from shipper to consignee. With a truckload shipment, once loaded, the freight will
not be unloaded until its destination. Even if the transit time is more than one day (Which, in the
case of Joe, is true, it takes more than one day to get from Florida to California), the freight will
remain on the same trailer.

When it comes to protecting your full truckload freight, the process is like LTL shipping. Carriers
will be required to carry a certain amount of insurance (usually around
$100,000), and then if damage does occur, the carrier will be responsible for covering any
issues. You can also buy third-party insurance, just as in LTL, and the third party will pay out the
claim and be compensated by the carrier.

Brokerage for TL
Brokerage or brokerage service is the arranging of transportation or the physical movement of a
motor vehicle or property.

Who is the Broker? Broker means a person who, for compensation, arranges, or offers to
arrange, the transportation of property by an authorized motor carrier. In simple words, freight
brokers match cargo with carriers who will physically move it.

Keys to be a good broker

In case you are a broker, you must

have these characteristics if you
want to succeed and accomplish the
expectations of the customer and
ensure your personal and
professional growth.
How to determine the rate?
If you want to determine the rate for a TL shipment you must consider the Line Haul Ratel,
which is a function of the distance and the weight/volume of the cargo; and the Fuel Surcharges
(FSC) which is a portion of the rate to account for the cost of fuel. This FSC fluctuates based on
the national average cost of fuel for that week.

Difference between own assets and brokered assets.

Own Assets: A company that owns the trucks and acts as a carrier, having availability and
capacity to offer to their customers.

Brokered Assets: Whenever a broker needs to find capacity with companies who own trucks
(broker does not own trucks), he can look for private carriers willing to take the orders.

What is the preparation for this process?

As the broker you must have the following information:
7. SHRP and RCVR operations hours
1. Origin and Destination Zip Codes. and requirements (appts, drop
2. Type of load (F/P). trailer, live load, after-hours docks),
3. Linear footage (if partial). total millage.
4. Total weight or weight per piece. 8. Sense of how much are we willing to
5. Additional services. pay (total or per mile) forecasting
6. Nature of the load and special capacity and availability of the load.
requirements such as hazmat, food- 9. Day of the week shipping, especially
grade handling. in short.
Remember: Be knowledgeable!
This requires understanding the market behavior and being aware of any special events that are
affecting pricing nationwide, such as oil price, weather conditions, offer and demand, season,
the concentration of capacity (knowing every area and equipment concentration)

• Availability during Produce Season is tight.

• Hurricanes, snowstorms, and blizzards can affect pickups or deliveries, causing delays.
• Regions of the country with low capacity and business.

You are ready to negotiate!

Gathering all the facts on steps 1 and 2 and using your software, you will determine what
is going to be your initial offer for the freight. Understanding in which scenario you are
biting on (broker calling a carrier to offer a loa, or carrier calling brokers to request load)
to optimize prices.

• If a broker calls a carrier to offer a load: The carrier will consider if the load is a short or
long run and when it's convenient to pick it up (over the weekend will be more expensive
due to layover), or if he can easily find back-hauls (if he knows in the area is easy to find
a load and go back to his base, prices should be lower. If the area is tough and it will be
hard to find backhauls, he will usually charge a round trip). Brokers should portrait the
information of the load to make it more attractive, things such as hours of operations,
weight, and receiving methods (FCFS is usually preferred).

• If the carrier calls a broker to request a load: The carrier is urged to get the load either
because he wants to get to his home base area (backhaul) or he wants to complete a
trip to run directly to that specific area (partial loads). In these cases, prices are better
because the broker can work with the need of the carrier to get the load instead of the
broker offering the load.

Make sure to make a load more attractive

• Long runs mean more miles and more money.

• Lower weight means faster runs, and a truck's less likely to wear out.
• Short runs mean less money but more frequency and more availability.
• Metro areas imply difficult access resulting in extra services.
• Time Sensitive orders will always involve more money.
Safety, carrier’s approval, and liability

As a broker you must have this information before booking your load:
• Time the carrier has been in business or age of DOT expedited: we are not able to work
with a carrier with less than 1 year of operation.
• Motor Carrier # (MC#): verify in your system if it is an approved carrier already.
Otherwise, we will need a carrier packet for completion.
• Point of contact, which should be the dispatcher in all cases, including phone
number and email address (mandatory to be able to send Rate Confirmation
and Pickup information).
• Carrier packet: W9, certificate of liability, ICC Authority, Etc.

You should never forget to contemplate the following before booking and approving a carrier:

• Company's reputation and years of operations.

• Overall safety rate available in one of the DOT's approved safety carrier's websites
which describes safety score, driving hours, scheduled maintenance, and frequency.
• Compliance with the minimum required insurance liability of $100.000 per incident.

Scenarios to avoid if you are a broker

Once the load has been booked, and the rate agreement has been done, it is time to dispatch.
Dispatching the freight
The dispatcher will be the one in charge of assigning the driver to the shipment that was
booked, making sure that he can accomplish the customer requirements regarding the times
and dates requested.

FTL loads offer a considerably more simplified dispatching process. However, any delays or
setbacks in the delivery process for FTL shipments can carry more serious ramifications, given
that buyers have spent a premium for fast and efficient delivery of what are sometimes highly
time-sensitive or high-risk loads.

The trucking industry relies on safe drivers to complete deliveries, and they're typically thought
of as the foundation of the system, but they're not the only employees responsible for its
success. Dispatchers play an essential role as well, and they are in high demand.

Truck Dispatcher Duties & Responsibilities

Truck dispatchers have numerous other responsibilities as well. They can vary slightly from
company to company.

• Keep records, monitoring drivers' daily logs for errors or violations, and monitoring their
working hours and equipment availability.
• Keep tabs on the weather at all drivers' locations to be able to flag potential issues,
typically with the aid of numerous computer programs.
• Serve as a reliable point of contact to balance drivers' health and safety with
customer requirements.

• Coordinate and manage the most efficient loads to remain cost-effective as a company,
combining shipments based on their routes and timeline to minimize how many trucks
and drivers are out.
• Determine the best delivery methods and negotiate rates directly with vendors and
customers and get the necessary documents and permits that drivers will need when
shipping chemicals or livestock.

Truck Dispatcher Skills & Competencies

A certain skill set can make the difference between success and failure.

• Computer skills: You should be proficient with computer technology, able to learn
company-specific programs, and access GPS monitoring programs.
 • Analytical thinking: This can help you assess situations like unanticipated road
closures. Should you reschedule or send the driver on an alternate route?
• Language skills: You should be fluent in English, and knowing a second language as
well can be very advantageous in case you are dealing with non-American drivers.
• Interpersonal skills: You'll be working with drivers, customers, and vendors, not all of
whom will necessarily have the same goals in mind.

How to properly set an appointment

The logistics industry is all about attention to detail, which is the reason why as part of it, we
need to be aware of the customer needs and their requirements. Most of them will have a ready
time for the product and a deadline to receive it, which is why it is important, mostly in the FTL
industry, to ensure that the times are accomplished to fulfill our clients and build stronger
relationships with them.

What is an appointment?
Being organized is key for the logistics industry, which is why it is so relevant to identify if for out
shipment we have the arrangement to arrive at a time and place for the Pickup or Delivery.
Regardless, you will have a strict appointment only some of the time, and you will need to
identify it to ensure the success of the shipment.

Appointment:
Some facilities will have specific times and hours to pick up the freight or
deliver the goods.

First Come, First Serve (FCFS)

Depending on the facilities, they will have a window time to Pick up or deliver
the freight, but they will work depending on the time that they arrive, meaning
that if you arrive first, you will be loaded or unloaded first.

Information for the PU and DEL

For scheduling an appointment is important to always keep in mind the information
provided by the customer, where he must specify the locations, addresses, zip codes,
contact information, and shipping hours, if possible, as well as the commodity, quantity,
and dimensions of the freight.
 Tendered load (EDI):
Mostly the information is transferred through EDI, and it is shown as a tendered,
meaning that, the Electronic Data Interchange will provide on your TMS the information
and will advise that it must need to be set an appointment on that load.

References numbers
Customers have different needs, and every single of them is different, as well as the
multiple trucking companies or carriers; regardless, they all share the same thought:
organization is key to a successful business.
It is important for them to identify the shipments and freight they are moving and ensure
all the parties involved know it. That is why as a track & trace agent you must always
have references numbers for your load such as:

• Shipment ID • PU / DEL References

How is the Pickup Process done?

Before scheduling the pickup is important to identify, besides if it is an appointment or FCFS
facility, how the process will be once, the driver arrives because it can be a Preloaded trailer
or a Live Load.

Preloaded Trailer Live load

Trailer is loaded before the driver arrives at The driver must be present during the
the facility so he can bobtail and start loading process.
rolling immediately.

How is the Delivery Process done?

Before scheduling the delivery is important to identify, besides if it is an appointment or FCFS
facility, how the process will be once the driver arrives because it can be a drop trailer
or a Live Unload.
Drop Trailer Live Unload

The trailer is left at the facility once the The driver must be present during the
driver arrives, so the warehouse will unload unloading process.
the product and empty the trailer without the
driver being present.

Key points when setting an appoint for FTL

Window time Transit time

The time in which the driver is allowed to This is the time that the driver will have to
PU or DEL the freight according to the go from the shipper's location to the
facility's availability. receivers; it will depend on the miles. It is
important to know that commonly 500 miles
will mean 1 day in transit.

How can you request an appointment?

To properly set an appointment, you will need to
identify if the facilities will schedule it on a website,
over the phone, or by email, and you should never
forget to include or mention the relevant information
about the shipment, ensuring to provide dates, times
and the references numbers requested.
How does tracking work?
What is Tracking?
Tracking is precise and continuous follow up of your shipment Making sure you are obtaining
the appropriate update that will help you meet the customer’s need, using technology, and
communication as your biggest asset for reporting.

What a Track & Trace agent does?

Is about having a sense of urgency when reporting, making sure that everything that was
planned to move the cargo is being executed.

Service errors:
• Bouncing: When the driver won’t make the appointment and you have to reassign a
new one.
• Late pickups: The driver won’t make the pickup appointment. It will affect your
credibility with the customer
• Late Deliveries: The driver won’t make the delivery appointment. Plan by making sure
to leave a window for unforeseen delays to make sure you can meet the appointment.
• Rolling loads: When for some reason the driver won’t be able to meet the appointment
and now is subject to the facilities’ availability.
• Wrong equipment dispatched: Asking what equipment is necessary and making sure
it matches the customer’s needs.
• Missing information: Providing incomplete updates because you don’t have all the
relevant information needed from the carrier (e.g., point of contact with the dispatcher,
driver’s name).
• Waste of time: Not providing follow up or tracking information. If you are tracking and
then reporting incorrectly.
Information you should always know as Track & Trace Agent

Parties Involved
• Customer.
• Sales Representative.
• Track & Trace Agent.
• Carrier Representative.
• Carrier.

Load Statuses
• Open: Load is in the system available to be assigned to a broker.
• Reserved: Broker assigned. Negotiation starts.
• Covered: Rate agreement, carrier assigned.
• Dispatched: This is when you come in. The driver is assigned and will be in transit to
the shipper’s location.
• At Pickup: Arrived at the facility, dock assigned.
• Loaded: Confirm the truck is loaded and sealed and has a padlock added.
• In transit: Going from shippers’ location to destination
• At Consignee: Arrived at the destination.
• Delivered: Unloaded. POD signed.
• Tord: Truck ordered, not used.
• Hold: Unforeseen delay

Different ways to track a shipment

• Over the phone • Email Update

The most common and quick way to track. Some carriers do not provide updates on
Track & trace agent must contact the the phone (Do not call carriers) that is why
dispatcher or the driver and get an update Track & Trace agent must send an email to
on the location of the load, in and out times, the person in charge on carriers end to
or any other, depending on the status. upload the situation of the load.

However, it may vary depending on the status of the shipment:

Unassigned driver:
• Call the driver 15 minutes after the load was booked to confirm if he aware: Booked at
10:45, then make a follow-up call at 11:00.
Assigned to Dispatch: Dispatching driver
• Driver must be empty and ready to pick up our load.
• Always get additional info on ETA, this will help determine at what time you should make
your next follow up call: If the driver arrived at the destination and he hasn’t been
assigned to a dock yet, follow up in 15 minutes to confirm if he was checked in yet.
• Drivers must be dispatched 2 hours before the appointment, or we will live bounce the
load: if the pickup appointment is at 17:00, the follow-up call should be at 15:00.

Picked up:
• After loaded, confirm ETA for delivery (notate if the driver will be late). Call 1-2 hours
before the pickup time.

In Transit/Loading begins:
• Check if the driver was assigned to a dock.
• Set 90 minutes follow up call after the appointment time to avoid detention.
• If not loaded after 90minutes, create an incident, and set a follow-up call 1 hour after.

In Transit - OTR
• It could be a multiple-day transit and you should follow up at regular intervals with the
driver or with the TMS for your updates. Ask for an ETA on the delivery. Make a final call
at least 1 hour before the delivery to confirm he will meet the appointment.

Tracking of deliveries
• If the delivery appointment is after 9 am call 2 hours before the appointment. If the
appointment is before 9:00 then call 30 minutes before. Once the truck is unloaded, ask
for the In and Out times.

Once delivered, always request paperwork.

What needs to be in your report?

If you know what questions to ask, you will be able to manage the conversation and only focus
on what you need and avoid assessorial. Asking the right questions and knowing in advance
what to ask next is what you need to do.

Have empathy
Drivers & Dispatchers can be rather blunt or rude, so that is why every time you make a call try
to gather as much information as possible, be ready before making the call. This will help avoid
rudeness in unpleasant conversations. You must be polite; they might have just been having a
bad day and we have all been there sometimes.

Constant Flow Communication

Whether a load is going smoothly or having issues, it is always better to be up to date with all
the shipments. “No news is good news” does not apply to the transportation business. You
must inform your customer about any events, and not the other way around!

Final tips

ADDITIONAL CHARGES AND SERVICES:

Truck Ordered, Not Used (T.O.N.U):
It’s a cancellation fee. This
occurs when canceling a truck that was com
mitted to the order already. The truck is
heading back empty from the shipper’s
facility.
Lumper: Is a person who helps the trucking Fuel Advance: Helps carrier cover fuel
company to load/Unload freight. costs by providing a percentage of the line
haul upon pickup.

Layover: It is an extra charge /

Detention: Extra fee paid to the carrier Compensation issued to drivers when they
when the driver is being detained at the spend a predefined amount of time not
shipper o consignee’s facility after the 2 free moving. Applies when the driver must stay
hours: for long periods or overnight at the facility.

1. Loading / Unloading.
2. Rate varies from Carrier to Carrier.

Driver Assist: The driver assists in

Loading/Unloading process the truck.

Driver Unload: The driver must unload the

entire content of the truck by himself, and
Escort: Applies if the driver does not have a for that, he receives an extra payment.
TWIC card, he will be escorted into the
receiver’s facility, incurring in additional
Pallet Exchange: The Shipper and/or
charges. Receiver requires the truck to bring in as
many pallets as they are shipping/receiving
of the same quality that they use to
exchange with them to keep
their pallet inventory stable.
Team Drivers: A team of two drivers who Drop Trailer: The carrier drops off a trailer
ride together and drive the same truck in at the customer’s location for loading or
shifts. unloading without the driver being present.

Hazmat Service: It’s an extra charge for Comcheck: This is a form of payment most
moving hazmat materials such as explosive, frequently used by freight brokers to pay
flammable, poisonous, or otherwise contract carriers.
potentially dangerous cargo.
 DRIVERS AND DRIVING REGULATIONS (HOS)

14-HOURS DRIVING WINDOW 11-HOUR DRIVING LIMIT (30- 60-HOUR/7-DAY AND 70-HOUR/8-
LIMIT MINUTE BREAK) DAY DUTY
LIMIT

General After being off duty for 10+ hours, During the 11-hour driving limit, the During the previous 7 days/8 days
driving permitted up to 11 hours driver cannot drive over 8 hours driver cannot be on duty more
Rule
during a 14-hour window. without at least a 30-minute break. than 60 hours/70 hours total

Specifics A 14-hour on-duty window begins 30-minute break counts against the If trucking company does not
when any kind of work starts. 14-hour on-duty window limit. operate every day of the week,
the driver must follow a 60-
hours/7-day rule.

A 14-hour on-duty window doesn’t If the trucking company operates

stop by break, nap, or lunch. every day of the week, driver may
follow a 70-hours/8-day rule.

Driver can do other work after the 11 RESTART: Driver can restart the
hours of driving (but cannot drive) up on-duty clock by taking off 34
until 14 hours. consecutive hours (including
sleeper berth). After 34 hours,
weekly on-duty hours restart at
ZERO.

Exceptions 30-minute break not required if

short-haul (if driving within 115.08
roadmap miles from normal work
reporting location) and if released
after 12 hours.

30-minute break not required if:

non-CDL drivers operate in 172.6
roadmap miles from reporting
location.

Examples Driver had 10 continuous hours off Driver begins work at 0600 am and
and came to work at 0600: am. Driver driving at 0700 am. Driver takes a
could drive any 11-hour period until break at 0200 pm after driving 7
0800 pm and then would need 10 hours. Driver may drive another 4
consecutive hours off duty to reset hours, until 0630 pm. At 06:30 pm,
the 14-hour window. driver must stop driving and cannot
drive again without 10 consecutive
hours off.

Drive for 8 hours, take a 30-minute

break, and then drive another 3
hours for a total of 11 hours.
What is the LTL industry?
Less than truckload (LTL) It is a modality used for shipments that do not require a full 48- or 53-
foot trailer. The LTL carriers offer customers a more cost-effective method of shipping goods
than the FTL operator since carriers move goods from many different customers on one truck.
When sharing a truck with multiple customers, your freight has a higher risk of being damaged
and your freight will most likely be loaded and unloaded multiple times before arriving at its
destination since cargo will jump from one terminal to another.

Rates for LTL freight are determined by class, weight, origin, and destination (in the
transportation industry this is commonly referred to as the “lane”), and any additional services
required to meet the shipper’s and consignee’s needs. Carriers will offer shippers and brokers
discounts for freight that they are wanting to secure for business. The amount of discount is
previously negotiated with the carrier.

BENEFITS OF LTL SHIPPING

• Reduces costs: When booking an LTL shipment, you only pay for the portion of the
trailer used. The rest of the cost is covered by the other occupants of the trailer’s space.
• Increases security: Most LTL shipments are packaged onto pallets before being loaded
onto a truck. One well-packaged pallet has a better chance of remaining secure than
shipments with multiple smaller handling units.
• Additional service options: When shipping via LTL, you gain access to special services
like liftgates and inside pickup and delivery.
• Tracking: LTL carriers offer tracking capabilities through the bill of lading number,
PRO number, PO number, shipment reference number and pick up date range,
to name a few.

Types of carriers
Common Carrier

•Public companies, They are obligated to serve general public.

•They have annual contracts with great discounts.
•Normally prefer LTL and Volume modalities.
•They deal with 3PL companies.
•Commonly known in the industry, bigger coverage in the country,
LTL HUB SYSTEM

- LTL hub system uses Terminals to serve specific areas: every pickup or delivery taking place
within this area is coordinated by this terminal, which we can call local terminal.

- Deliveries usually take place in the morning. Trucks leave their terminals full of
product to deliver.

- Once the trucks are empty (1200-1400), they are ready to start picking up new shipments.

- When they are done with their pickups, trucks head back to the local terminal so the new
shipments can be routed toward their destination.

- Terminal transfers usually take place at night.

- Shipments will be transloaded from terminal to terminal until they reach the one that serves
the area where its consignee is located.
Don’t be discouraged if at first, this seems like a lot. With a little practice, freight can
be easily understood and can help grow your business by leaps and bounds when
managed properly. Now that we’ve covered the basics of LTL shipping, let’s move on
to LTL freight quotes.

Let’s get started!

LTL Freight Class & NMFC

How do the class and NMFC affect your LTL shipments? To begin, every single shipment will
have a freight class – a number between 50 and 500 designated by The National Motor Freight
Classification System. This number determines an item’s “transportability,” and is generated
using four factors: DENSITY, STOWABILITY, HANDLING, and LIABILITY. Each item will also
have an NMFC NUMBER. This number will be put on the shipment’s BOL for carrier invoice
issues, as well as cost and quoting.

An item’s density is also known as the pounds per cubic foot. Using the commodity’s weight and
dimensions, coupled with a simple math equation, you can find an item’s density rating or
number. This number is important for a variety of reasons. For some items, their freight class is
dependent upon this density rating. It’s a general rule of thumb that the lower the density of an
item, the higher the freight class. The higher the freight class, the higher the shipping cost. So,
the lower the density the higher the cost of shipping, and vice versa (Higher density = lower
class = lower shipping cost).

An item’s stowability is determined by its ability to be stowed or transported in relation to other

pieces of freight on the truck. Unlike density, there is no number-based scale to determine the
item’s stowability, and this element of freight class is somewhat subjective.

The third factor in determining freight class is the item’s handling. Like stowability, there is no
scale to determine this per commodity. Items that are fragile or have larger than normal
dimensions are often at higher risk to the carriers, so their level of handling will ultimately lead to
higher freight classes.

The fourth and final factor in determining an item’s freight class is the liability associated with
the item and considers the probability of the freight shipment being damaged, stolen, or
damaging other adjacent freight. So how do you make sure you are shipping your items at
the correct class?

The best way to handle a question of class is to bring it to your freight broker. This is exactly the
sort of complicated issue that brokers are made for, and you can be confident they will confirm
you’re shipping at the correct class, thereby avoiding any possibility of a re-class (We’ll get more
into re-classes later). If you do not have a freight broker, then your best bet is to reach out
directly to the carrier. Most carriers have classing agents that can help you decide the relevant
freight class for your shipment.

With so many items to ship there is bound to be some overlap and confusion for finding the
correct class, not to mention people will often lie on their freight classes to achieve lower rates.
Please do not do this. The carriers will catch on quickly, and you will end up paying for it in the
end. This means that the most important part of freight class to remember is that the higher
the class, the higher the cost. We will finish with a simple example of how freight class
affects LTL pricing:

Say you are moving a pallet of steel bars. These bars will be heavy but will not take up too
much space on the truck; therefore, they have a high-density rating (the item is very dense).
They are not fragile or breakable. They are on a standard, packaged pallet that can be easily
handled and transported from one terminal to the next. They are not particularly expensive. This
item will likely have a freight class of around 50, the lowest freight class, and ultimately the
cheapest.
On the other hand, let’s say that you need to move a ten-foot-long fiberglass kayak. The kayak
is light and only weighs around 100 lbs. Using the weight and dimensions of the freight we find
that the density of the item is very low. The length of the freight is also a problem, as it doesn’t
fit well in trucks that are built to handle standard pallets. The packaging of the freight is non-
existent and there is no simple way to move the freight from truck to truck as it makes its way
through transit. The liability of the item comes into play because though it’s fragile, it is very
expensive, so the carrier will have to assume major costs if something happens, and a damage
claim is filed. All these factors add up to a higher classed item, possibly as high as 400. The
difference between an item classed at 50 and one classed at 400 can be hundreds of dollars.
As you can see, the freight class is very important when it comes to LTL shipping.

As with the entire shipping industry, the best way to avoid issues is to have the correct
information and lots of it. Make sure you are using the right class and stick with it. Know your
freight commodity, dimensions, packaging, value, and weight. This information will help you
wade through the muddy waters of freight classification.

Commodities could have:

• SET CLASS: class will always be the same regardless of its quantity, weight, value,
or density.
 • CLASS BASED ON DENSITY: The density of a substance is the relationship between
the mass of the substance and how much space it takes up (volume).
D= W/V
V= LxWxH / 1728

• RELEASE VALUE CLASS: which is value per pound, even though this is not how the
product would be sold in the market.

WHAT IS F.A.K.?
FAK (Freight All Kinds) is a pricing mechanism that groups multiple classes of freight into a
single class. It allows a much easier rating and reduces reclassification and billing errors for
companies that ship a wide range of products.

For example, you ship 2 different products on the same pallet to your customers. The product
mix is equally in class 50 and class 85. Negotiating a FAK 60 for everything would be
acceptable in this situation. You would pay higher for class 50 and get a discounted rate (85-
>60). This would be a fair tradeoff and welcomed by most carriers. This is a simplified example
but imagine if you are shipping thousands of different items. Looking up freight class each time
and praying that you get it right gets increasingly difficult. Remembering 2 classes, perhaps one
for the heavier items and one for the lighter presents an enormous time saving as well as a
reduction in billing errors.

The FAK proved to be very effective in its original design. However, some shippers figured out
how to exploit the FAK to move their poorly operating freight at the same cost as very profitable
freight. Carriers' profits and operating ratios (O/R’s) took significant hits since they were now
exposed to a volatile mix of products. Carriers also noticed that a new phenomenon was taking
place in which they were getting mostly freight on the higher end of the FAK spectrum, and the
good profitable freight suddenly disappeared.

A FAK is a good solution for a company A FAK is not a good solution for a
if: company if:

1. You ship many different items. 1. You ship a few items.

2. You ship a wide variety of items. 2. Your freight is justifiably a high class.

3. Your freight looks and feels like a lower

lower class
Linear Footage and Pallet Spot
For the LTL industry, it is important to identify how
much space each customer is taking from the truck
because based on the annual contracts with the
common carriers they must determine if the shipment
will be considered as LTL or Volume, or if the load is
overlength. For them to do so, they must do a
mathematical calculation based on the customer's
information. They will follow the steps listed below:

1. Receive dimensions from the customer

2. Identify dimensions of the trailer
3. Are goods stackable? Can we rotate
the pallets?
4. Organize the pallets trying to take less space
as possible
5. Calculate how much space we took and how
much is left
6. Add the length of the packages on the trailer
7. Divide total length into 12
8. Determine the space that you took in feet

LTL Packaging
The packaging is an integral part of the freight industry, we’ll go over some of the different
packaging standards observed by carriers in the LTL shipping industry, as well as some hints
and tips to keep your freight safe during transit. The most common type of freight is a palletized
shipment. Pallets come in all sizes, but standard pallet is usually about four feet by four
feet (Length x Width) or 48” x 48”. A pallet makes it easy to secure your freight and works best
for LTL shipping because it’s simple to move a pallet with a forklift or a pallet jack.

A forklift works great with pallets, so if you’re looking for the best possible packaging for your
LTL freight, a pallet is a way to go. It’s important, no matter its value, that the freight is properly
secured to the pallet. This can be done using industrial saran wrap to make sure the freight will
not fall off the pallet during transit. It's also important to securely package the individual pieces
together, as you don’t want them separating during transit. Separated freight results in freight
being lost and shipments delivering short.

Though pallets are the preferred packaging for LTL freight shipping, they are not the only way
freight is secured. Another common way to package freight is known as “crating.” Crating
provides an extra level of protection for your freight, as it is fully enclosed. It’s preferred to
palletize the crate to make it easier for the carriers to move the freight from dock to dock, but it’s
not necessary. Occasionally, carriers will permit shippers to move separate boxes (sometimes
as many as five) as part of a single shipment, but we do not suggest it. Boxes may become
separated during the transit process, resulting in lost freight. With so many moving parts, it’s
easier and simpler to make sure your boxes are consolidated to avoid losses.

Documents Needed
PURCHASE ORDER
Purchase order (PO) is an order request that is a legally binding document sent from a buyer to
a seller. This document contains details about the item type, quantities, and agreed-upon prices
for products or services. Buyers also use purchase orders to ensure the products that arrive are
indeed the products they ordered.

The purchase order includes:

• A PO number
• A shipping date
• Billing address
• Shipping address
• The requested items
• Quantities and price

PACKING LIST / PACKING SLIP

A packing slip is a shipping document that comes with an
order, usually inside an attached shipping pouch or inside
the package itself. Sometimes referred to as a shipping
list, waybill, packing list, bill of the parcel, or unpacking
note, a packing slip provides buyers with product details
that ensure the product is indeed what they ordered.
Packing slips are only required if products are being
shipped and received for sale.
INSPECTION CERTIFICATE
This document will help to determine if there are discrepancies with the information during the
shipment, focusing on the class.

WEIGHT CERTIFICATE
LTL Freight Quotes
There are two types of LTL quotes that are available, and how much freight you plan to ship will
determine which one you need. Remember this disclaimer though: A “shipment” is the
packaged freight going from Point A to Point B. So, if you have freight heading to two separate
consignee locations, even if the shipper location is the same, they will be considered two
separate LTL shipments. With that covered, let’s start with your standard LTL quote.

There are four pieces of information that you must-have for a standard LTL quote:

• Origin and Destination Zip Codes • Commodity

• Quantity • Class (for LTL shipments only)
• Weight • Additional Services
• Dimensions

The origin zip code is the zip code where the freight will be picked up. Note that this is not the
origin terminal zip code, or the city, or even the manufacturer zip code. This is the actual zip
code for the address where the freight will be loaded on to the truck. The destination zip code is
the opposite of the origin zip, in that it is the zip code where the freight will be delivered. Once
again, this is the actual delivery address location, not the city or terminal zip code. As most
cities have more than one zip code, it is important to get the correct zip codes. Part of the
pricing for LTL shipments come from the distance the freight will travel.

The third part of a standard LTL quote is the total weight, dimensions, and quantity of the
shipment. This weight includes any packaging or palletizing that is needed to make the freight
ready to ship. Make sure that your weights are exact, as carriers will use industrial shipping
scales to make sure the weight claimed on the BOL matches the actual weight of the shipment.
If it does not, you will be charged for the difference. This is called a REWEIGHT.

Keep in mind, a standard LTL quote is only valid if your freight will be taking up 12 feet or less of
linear truck space, as well as 7,000 lbs. or less. Twelve feet safely stores up to six standard
pallets (48x40x48 inches, Length x Width x Height). But what if your shipment takes up more
room than just twelve feet of space? Or what if your shipment weighs over 7,000lbs? That
brings us to our second type of LTL quote: VOLUME QUOTES. A volume quote is used when
the freight is too large or too heavy for a standard LTL quote. To get an accurate volume quote,
you’ll need the standard four pieces of information needed for any LTL shipping quote: origin zip
code, destination zip code, total weight, and class. Besides, you’ll need:

• Total piece count • Dimensions of the pieces • Commodity

Once you have gathered your information, it’s a matter of reaching out to the carrier’s volume
department to receive a quote number that correlates with your volume quote. Once you have
your quote, simply put your quote number where it will be prominently visible on the BOL
(usually in the “Special Instructions” section of the bill of lading). The rest of the process is like a
standard LTL shipment. The shipment will be moved from terminal to terminal until it reaches its
destination. When dealing with volume quotes, remember their purpose is to save you money.
Like the old “buy in bulk” adage, the quotes you receive on a volume quote will be cheaper than
if you ran the quote using general LTL rules. You must include the volume quote number on the
BOL used at pickup. Without it, your volume quote will not apply, and you will end up paying
much more than you anticipated for the shipment.

LTL Dispatch process

Upon customer’s approval, the dispatcher adds the shipment in the system and creates the BOL
using all information and adding all the references provided by the customer. As well, will
retrieve the BOL from the system and proceeds to send it via email or fax to the shipper. In
many cases, this BOL is sent to the customer instead of the shipper. The customer must ensure
this BOL is ultimately forwarded to the shipper. Besides this, the dispatcher will print the
BOL once the pickup is scheduled with the carrier and makes sure the PU# provided by the
carrier is added on the BOL for pickup tracking purposes. Finally, the dispatcher schedules
the pickup with the carrier selected by the customer and will contact mainly the origin terminal to
complete this task.

Remember, a printed BOL must contain:

1. Shipper’s window time in which freight is ready to be picked up by the carrier and their
closing time.
2. Respective references that the customer instructed to add on the BOL.
3. Highlighted references that carrier must consider at the time of pickup for the driver to
mention when collecting the freight at the shipper’s location.
4. Name of the payer of the shipment and email addresses which should be included when
sending notification emails.
5. Highlighted accessorial or additional services required to complete pickup, if applicable.
6. According to freight’s weight and dimensions, it must be specified the type of equipment
needed for pickup (swing door trailer, 53 ft. trailer, small truck, etc.)

You should never forget that you may have 2 different PU#, the carrier’s and the shipper’s but
they are not the same, this number is very crucial to be shared with the carrier and to stress the
driver he must provide it at shipper’s location, otherwise, the freight may not be released.
 Carrier's PU#

•For a carrier, the PU# is the reference which usually corresponds to a consecutive
number they assign as a confirmation that a shipment pickup has been
scheduled. This number must be given to us when contacting the terminal to
schedule pickups and it must be consigned on the load in the system and
the printed BOL in order to apply tracking to a pickup.
Shipper's PU#

•For a shipper, a pickup number is a reference that may be helpful to identify the
shipment when the carrier’s driver arrives to pick up certain freight. This reference
could be a purchase order (PO) number, a customer number, a company name, a
Bill of Lading number, or a phrase that identifies that shipment. This reference can
be any combination of letters and numbers up to 35 characters

LTL Tracking
One of the most important parts of LTL shipping is the network of carrier terminals. These
terminals can range in size, but they all act as departure and arrival points for LTL freight.
Unlike truckload shipping, LTL freight is not picked up and delivered on the same truck.
Instead, LTL freight is transferred from truck to truck at different terminals until the freight
arrives at the destination terminal. From there, it will be loaded onto a final truck and delivered
to the consignee.

To get a better understanding of what we are discussing, let’s “trace,” or track, a typical LTL
shipment: A pickup is scheduled through carrier dispatch or customer service. This pickup is
usually done by phone, but some carriers use emails as well. This request will let the carrier
know where to pick up, what to pick up (commodity), how much they’ll be picking up
(pallet/piece count & weight) and what time the freight will be available for pickup (All carriers
require a two hour-window and at least a two-hour cushion when scheduling pickups). The
pickup location is known as the SHIPPER.

For this example, let’s say the shipper is in Austin, Texas and the delivery will be in Miami,
Florida. When the freight is picked up and loaded into the back of the truck, the driver will stamp
the freight with a PRO NUMBER - a shipment’s identification and tracking number. The driver
will then make his way to his next pickup. Pickup routes are determined by carrier dispatchers
and consider the quantity and weight of shipments, as well as geographical locations. It’s
common practice for deliveries to be completed in the mornings, while pickups are usually taken
care of in the afternoon. After the driver has completed all his scheduled pickups or his truck is
full, he then heads back to the ORIGIN TERMINAL. The carrier’s second shift dock crew will
remove the freight from the truck, scan the PRO Numbers into the carrier system for tracking
purposes, and from there will begin to load the freight back on to trucks heading out of the
terminal the next morning.
In our example we had freight picked up in Austin heading to Miami. Therefore, the freight will
be loaded on to a truck headed east. The night crew also takes all the freight coming from
elsewhere that needs to be delivered in Austin and loads it on to a truck for delivery the next
morning. Morning comes and the carrier trucks, full of freight to deliver, head out on their routes.
They’ll off-load all freight in the mornings until their trucks are empty, and from there they will
begin the process again with more pickups. The shipment heading out of Austin will be on a
truck heading eastbound, for a stop at the next terminal in Baton Rouge or maybe New Orleans.
The freight will be unloaded, the PRO will be scanned into the carrier system for tracking
purposes, and the freight will be reloaded on to the correct truck, and then will ship out for the
next terminal, probably Atlanta. From Atlanta, the freight will move to Orlando and then down to
Miami, following the same steps listed above at each terminal location. Once it finally reaches
its destination terminal, the freight will go out on a truck in the morning and be delivered to its
final destination, known as the CONSIGNEE.

This is the life of a typical LTL shipment. As you can see, it’s a lot of moving parts with lots of
hands-on the freight. It’s important to keep this in mind as you package your freight for transit
(we’ll take more about this later), as the freight will be moved off and on trucks by forklifts as it
makes its way to its destination.

LTL Claims and Insurance

It is in the best interest of everyone in the shipping industry (customer, carrier, broker) that
freight is picked up and delivered as quickly and safely as possible. However, sometimes
mistakes do happen. We will discuss what happens if your freight is damaged or lost, and how
to best avoid such issues.

Let's begin with the concept of freight insurance. As you ship your LTL freight, you’ll need to
protect it from the possibility of damage as best you can, however, if an item does get damaged
in transit, you’ll want to get paid for that damage. There are two types of insurance you can get
for your freight: carrier insurance or third-party insurance.
Carrier insurance is the insurance covered internally by the carriers for the freight that they
transport. Coverage is based on commodity, value, freight class, size, weight, and distance
traveled. Before we get any further with carrier insurance, let’s say outright that carrier
insurance coverage has its fair share of limitations. Each carrier’s coverage differs, but overall,
they rarely pay out even half of what the claims will sometimes amount to.

Now, before we go bashing on freight carriers and their insurance limitations, let’s consider a
few things. First, insurance is a notoriously fickle and subjective business across the board.
Whether it be car insurance, home insurance, or life insurance – payouts can be tough.
Secondly, the freight industry is a slick one with lots of moving parts. When you’re dealing with
freight transportation and shipping, the damage is part of the game regardless of carrier.
It’s not sustainable for a carrier to pay out every damage claim in full for every shipment that
they move. They would be out of business. All of this is not to say that carriers don’t pay out
for damage or loss claims, it’s only that the process is easier and smoother using
a third-party insurer.

Third-party insurance is offered through any good freight broker, and the premium (though it
varies based on coverage amount) is often inexpensive, sometimes as low as
$40 for up to $10,000 of coverage. When getting third party insurance you’ll also have an
insurance certificate, physical proof that your freight is covered. But how does this third-party
insurance work and why is it better? Well, for one thing, you’ll get paid. If your freight’s value
can be proved using a commercial invoice, the third party will pay out your claim without too
many questions. Of course, there are deductibles to consider, but a third-party insurer will go
directly to the freight carrier, essentially bypassing you. Apart from being convenient, claims are
often paid faster using third party insurance. Like any insurance, the claims process can be
tricky, but there are a few things to keep in mind as you file a claim for damaged or lost freight:

ALWAYS NOTATE DAMAGE – It’s very important to always notate damage on the delivery
receipt if there’s even a hint of damage to your shipment. This POD (Proof of Delivery) will be
key when you file a claim through the carrier for damage. Without any damage notated on the
POD, the chance of a claim being paid out shrinks from about 80% to less than 10%. The POD
will be the most important aspect of the claims process, and just like other aspects of the freight
industry, the more notes, and the more information available, the smoother the process.

TAKE PICTURES ASAP – Even if you notate on the POD that the freight is damaged, take
pictures immediately to document the damage. These pictures will be used later in the claims
process to prove the carrier damaged the shipment.

HAVE DOCUMENTATION READY – For a claim to be paid out (lost or damaged), you’ll need
some form of commercial invoice to prove the value of the freight you’re claiming. Along with the
signed POD, pictures, and claim forms, these documents will be the reason your claim does or
does not get paid out.

BE PATIENT – Like any sort of insurance situation, claims can take a while to get paid out. A
good rule of thumb is to allow 60-90 days once the claim has been filed before expecting any
sort of payment. It’s also important to remember that the carrier will be the one paying out the
claim (directly or through a third party), not the freight broker.
LTL Billing and Auditing
First off, the freight billing structure will be different if you’re going directly to the
carrier than if you’re working through a freight broker. If you’re going carrier direct, this means
you have an account with the carrier, and they’ll send you the invoices for your freight shipping.
You’ll pay them directly, and any sort of invoice discrepancies will have to be settled individually
between customer and carrier. Usually, it takes the carrier between one and two weeks to send
out their invoices after the freight has delivered. Each carrier will have a different set of
standards when it comes to billing - there is no industry standard - so if you do go carrier
correct, you’ll have to coordinate the details with the carrier billing department.

If you’re using a freight broker, you won’t be seeing any invoices directly from the carrier.
Instead, you’ll receive your bills from the freight broker. With the carrier invoicing the broker
direct, a quality freight broker will first audit the charges. What do I mean, “audit,” the charges?
When a freight broker audits charges, they go through every invoice and additional charge and
confirm the legitimacy of the charge before passing the charges on to the customer.

So, what are these “additional charges” we keep referring to? Well, the two most common
invoice charges we see are the RECLASS and the REWEIGH. True to their names, these are
assessed when a shipping item is either reclassed to a higher class (a more expensive class) or
an item is reweighed to a higher weight (a more expensive weight). To process these additional
charges, the carrier will have to produce W&I (Weight and Inspection) CERTIFICATES that
provide proof for the additional charges. If a reclass is a density-based discrepancy, the carrier
will provide updated freight dimensions and/or updated weights confirmed by a registered and
official scale. If the item is being reclassed due to item description, then it’s up to your freight
broker to explain and fight the charges for the correct class on the item. If your freight has been
reweighed, the carrier will need to provide official documentation of the reweigh including the
name of the person who weighed the item, the old and new weights, and the location and
identification of the official scale used.

Your freight broker will have sufficient knowledge of the carrier invoice system to help wade
through the mud and get you the correct rates. Though reclasses and reweighs are the most
common invoice issues we see, other accessorial are applied after the freight has been
delivered and with the addition of these services, the price of your freight shipment will increase.
This includes (but is not limited to) liftgate charges, limited access pickup or delivery, inside
delivery or pickup, and residential pickup or delivery.
ADDITIONAL CHARGES AND SERVICES:
Expedited Service: The process of Notify Consignee: Inform the consignee's
shipping at a faster rate than normal. It shipment will be delivered on a certain day.
usually includes team drivers, overnight,
and/or air services. Delivery Appointment: Require calling
(Guaranteed and time-critical). before delivery and/or to set an appointment
for freight to be delivered.

Residential PU/DEL: Additional service to

perform Pickups/Deliveries in residential
areas. As LTL shipping uses dry vans and Inside PU/DEL: It’s an additional charge to
larger trucks, sometimes it can be difficult to pick up or delivery inside the
maneuver residential streets. shipper/receiver facility. Example:
Warehouse, buildings, hotel, etc.

Liftgate PU/DEL: A power-operated tailgate

capable of lifting pallets from street level to
the level of the floor of the trailer. Used in
locations where there is no dock for
loading/unloading, and often found on Limited Access PU/DEL: Extra charge to
LTL truck fleets. pick up or deliver to non-commercial
facilities: hotels, churches, schools,
universities, prisons, amusement parks,
military bases, museums, hospitals, etc.
Sort & Segregate: Upon delivery, the Tradeshow PU/DEL: Pick up or deliver a
receiver will break down the contents of the product to an event, such as congress or
pallet to sort and count the product. convention. These pickups/Del are
scheduled in advance and they normally
have preferred carriers to do this.

Expedited Service: The process of

shipping at a faster rate than normal. It Excessive Length Fee: Length of the
usually includes team drivers, overnight, freight shipment exceeds a certain limit the
and/or air services. carrier designates.
(Guaranteed and time-critical).

Single Shipment Fee: Additional fee for

Bonded or Inbound: Freight that will not be
picking up 1 shipment which weighs 500
released by Customs until duty or taxes are
LBS or less and no other shipments from
paid by the customer.
that customer on this pick-up.

C.O.D: Stands for Cash on Delivery. The

carrier cannot deliver the goods unless
Dry Run Fee: A penalty that a customer payment is collected at the time of delivery.
must pay after several unsuccessful This money is collected on behalf
attempts of pickup from a carrier. of the shipper.
Re-Delivery Fee: It is a fee charged when Transit Time:
the carrier attempts to deliver the freight but - Standard
is not able to do it successfully. - Guaranteed Service
- Time Critical
Re-Consignment Fee: When a receiver’s
address is changed, and the shipment was
already picked up and on its way.

Blind Shipment: It's when one or more

parties to a shipment don't know who the
shipper is, receiver, or both.
Hazmat Service: It’s an extra charge for
moving hazmat materials such as explosive, - Blind Shipping Label
flammable, poisonous, or otherwise - Double-Blind
potentially dangerous cargo.

White-Glove Service: Services offered in

transportation management that go beyond
the standard expectations for delivery.
INTERNATIONAL TRADE
International trade is the exchange of capital, goods, and services across international borders
or territories. It is the exchange of goods and services among nations of the world.

Trading globally allows consumers and countries to be exposed to goods and services not
available in their own countries. Almost every kind of product can be found in the international
market: food, clothes, spare parts, oil, jewelry, wine, stocks, currencies, and water. Services are
also traded: tourism, banking, consulting, and transportation.

A product that is sold to the global market is an export, and a product that is bought from the
global market is an import. Imports and exports are accounted for in a country's current account
in the balance of payments.
PARTIES INVOLVED IN INTERNATIONAL TRADE

• Manufacturer / Producers
• Distributor/ Dealer
• Seller / Vendor / Supplier
• Buyer / Purchaser
• Shipper
• Consignee
• Customs brokers
• Freight Brokers / Freight Forwarders
• Carriers (Truck companies, Shipping lines, and Airlines)
• Insurance companies
• Government and trade organizations

Let’s review some of them!

Shipper VS Seller
The “shipper” is a person, company, or entity that is shown in all the shipping documents
(bill of lading, commercial invoice, packing list) as the party responsible for procuring and/or
placing the order for shipment and maybe also for arranging the freight payment, etc. On the
other hand, a “seller” is a party that makes or offers a sale to an actual or potential buyer (also
called a “vendor”).

The main difference between the terms “shipper” and “seller” is that while “shipper” is the term
used in the “contract of carriage”, the term “seller” is used in the “sale contract”.

Consignee VS Buyer
In a contract of carriage, the consignee is the entity who is financially responsible for the
receipt of a shipment. Generally, but not always, the consignee is the same as the receiver.
On the other hand, the “buyer” is the party that acquires or agrees to acquire, ownership (in
case of goods) in exchange for money or other consideration under a contract of sale (also
called a “purchaser”).
The main difference between the terms “consignee” and “buyer” is that while “consignee” is the
term used in “contract of carriage”, the term “buyer” is used in the “sale contract”.

Carrier
The freight carrier is a company or a person who handles your shipment directly. The shipments
are done through air, road, sea, or rail. Some carriers provide multi-modal service. They own
the means of transportation such as trucks, airplanes, and ships.

Broker
In general, a broker is an individual or firm that serves as a trusted agent or intermediary in
commercial negotiations and transactions.

A freight broker is an individual or company that serves as a liaison between another individual
or company that needs shipping services and an authorized motor carrier. Though a freight
broker plays an important role in the movement of cargo, the broker does not function as a
shipper or a carrier.

Customs Broker
Customs brokers are private individuals, partnerships, associations, or corporations licensed,
regulated, and empowered by Customs and Border Protection (CBP) to assist importers and
exporters in meeting Federal requirements governing imports and exports.

Customs broker is a profession where the expertise includes tariff and customs laws, rules, and
regulations for the clearance of imported or exported goods or merchandise from a customs
authority. The preparation of import or export documents includes computation and payment of
duties, taxes, and other charges accruing thereon.

U.S. Customs and Border Protection (CBP)

With more than 60,000 employees, U.S. Customs and Border Protection, CBP, is one of the
world's largest law enforcement organizations and is charged with keeping terrorists and their
weapons out of the U.S. while facilitating lawful international travel and trade.

As the United States’ first unified border entity, CBP takes a comprehensive approach to border
management and control, combining customs, immigration, border security, and agricultural
protection into one coordinated and supportive activity.

The men and women of CBP are responsible for enforcing hundreds of U.S. laws and
regulations. On a typical day, CBP welcomes nearly one million visitors, screens more than
67,000 cargo containers, arrests more than 1,100 individuals, and seizes nearly 6 tons of illicit
drugs. Annually, CBP facilitates an average of more than $3 trillion in legitimate trade while
enforcing U.S. trade laws.
Now that we´ve reviewed some of the most important parties involved in international
trade, it is time to learn about the incoterms

INCOTERMS
The International Chamber of Commerce has published new Incoterms® 2020 that have come
into effect from the 1st of January 2020. The ICC originally published Incoterms® in 1936 and
has continually made updates to reflect the changes to the Global Trade environment. It’s
important that all parties involved in trade clearly understand the changes and how they apply
to global supply chains.

Put simply, Incoterms® are the selling terms that the buyer and seller of goods both agree to
during international transactions. These rules are accepted by governments and legal
authorities around the world. Understanding Incoterms® is a vital part of International
Trade because they clearly state which tasks, costs, and risks are associated with the buyer
and the seller.

The Incoterm® states when the seller’s costs and risks are transferred onto the buyer. It’s also
important to understand that not all rules apply in all cases.

The Incoterms are accepted by governments, legal authorities, and practitioners worldwide for
the interpretation of most used terms in international transactions or procurement processes.
They are intended to reduce or remove altogether uncertainties arising from different
interpretations of the rules in different countries. As such, they are regularly incorporated into
sales contracts worldwide.

These are the Incoterms

EXW – Ex-Works or Ex-Warehouse

• Ex-works is when the seller places the goods at the disposal of the buyer at the seller’s
premises or another named place (i.e., works, factory, warehouse, etc.).
• The seller does not need to load the goods on any collecting vehicle. Nor does it need to
clear them for export, where such clearance is applicable.
FCA – Free Carrier
• The seller delivers the goods to the carrier, or another person nominated by the buyer at
the seller’s premises or another named place.
• The parties are well advised to specify as explicitly as possible the point within the
named place of delivery, as the risk passes to the buyer at that point.

FAS – Free Alongside Ship

• The seller delivers when the goods are placed alongside the vessel (e.g., on a quay or a
barge) nominated by the buyer at the named port of shipment.
• The risk of loss of or damage to the goods passes when the products are alongside the
ship. The buyer bears all costs from that moment onwards.

FOB – Free on Board

• The seller delivers the goods on board the vessel nominated by the buyer at the named
port of shipment or procures the goods already so delivered.
• The risk of loss of or damage to the goods passes when the products are on board the
vessel. The buyer bears all costs from that moment onwards.

CFR – Cost and Freight

• The seller delivers the goods on board the vessel or procures the goods already
so delivered.
• The risk of loss of or damage to the goods passes when the products are on
board the vessel.
• The seller must contract for and pay the costs and freight necessary to bring the goods
to the named port of destination.

CIF – Cost, Insurance and Freight

• The seller delivers the goods on board the vessel or procures the goods already so
delivered. The risk of loss of or damage to the goods passes when the products are
on the ship.
• The seller must contract for and pay the costs and freight necessary to bring the goods
to the named port of destination.
• The seller also contracts for insurance cover against the buyer’s risk of loss of or
damage to the goods during the carriage.
• The buyer should note that under CIF the seller is required to obtain insurance only
• on minimum cover. Should the buyer wish to have more insurance protection,
it will need either to agree as much expressly with the seller or to make its extra
insurance arrangements.
CPT – Carriage Paid To
• The seller delivers the goods to the carrier, or another person nominated by the seller at
an agreed place (if any such site is agreed between parties).
• The seller must contract for and pay the costs of carriage necessary to bring the goods
to the named place of destination.

CIP – Carriage and Insurance Paid To

• The seller has the same responsibilities as CPT, but they also contract for insurance
cover against the buyer’s risk of loss of or damage to the goods during the carriage.
• The buyer should note that under CIP the seller is required to obtain insurance only on
minimum cover. Should the buyer wish to have more insurance protection,
it will need either to agree as much expressly with the seller or to make its extra
insurance arrangements.

DAP – Delivered at Place

• The seller delivers when the goods are placed at the disposal of the buyer on the
arriving means of transport ready for unloading at the named place of destination.
• The seller bears all risks involved in bringing the goods to the named place.

DPU – Delivered at Place Unloaded (replaces Incoterm® 2010 DAT)

• DPU replaces the former Incoterm® DAT (Delivered at Terminal). The seller delivers
when the goods, once unloaded are placed at the disposal of the buyer at a named
place of destination.
• The seller bears all risks involved in bringing the goods to and unloading them at the
named place of destination.

DDP – Delivered Duty Paid

• The seller delivers the goods when the goods are placed at the disposal of the buyer,
cleared for import on the arriving means of transport ready for unloading at the named
place of destination.
• The seller bears all the costs and risks involved in bringing the goods to the place of
destination. They must clear the products not only for export but also for import, to pay
any duty for both export and import and to carry out all customs formalities.
FREIGHT FORWARDER
What is a Freight Forwarder?
• A freight forwarder is a company that arranges your importing and exporting of goods,
specializing in arranging storage and shipping of merchandise on behalf of its shippers.
• It usually provides a full range of services including, but not limited to tracking inland
transportation, preparation of shipping and export documents, warehousing, booking
cargo space, negotiating freight charges, freight consolidation, cargo insurance, and
filing of insurance claims.
• A freight forwarder, forwarder, or forwarding agent, also known as a non-vessel
operating common carrier (NVOCC), is a person or company that organizes shipments
for individuals or corporations to get goods from the manufacturer or producer to a
market, customer, or final point of distribution.
• Usually, ship under their bills of lading or air waybills (called house bill of lading or house
air waybill) and their agents or associates at the destination (overseas freight
forwarders) provide document delivery, deconsolidation, and freight collection services.
What does a freight forwarder do?
• A forwarder does not move the goods but acts as an expert in the logistics network.
• A freight forwarding service utilizes established relationships with carriers, from air
freighters and trucking companies to rail freighters and ocean liners, to negotiate the
best possible price to move shippers’ goods along the most economical route by working
out various bids and choosing the one that best balances speed, cost, and reliability.
• Freight forwarders handle the considerable logistics of shipping goods from one
international destination to another, a task that would otherwise be a formidable burden
for their client.

Elements considered by freight forwarding companies before shipment

• Gas/ Oil Charges • Service type
• Distance • Tolls
• Goods value • Transport chain
• Handling costs • Volume
• Package type • Weight

Why should I use a Freight Forwarder?

It can save you untold time and potential headaches while providing reliable transportation of
products at competitive rates and also, It’s an asset to almost any company dealing in
international transportation of goods, and is especially helpful when in-house resources are not
versed in international shipping procedures.

Advantages
A Freight Forwarder handles the following documents/procedures commonly used in
Importing/exporting:

• Insurance certificate • Dangerous Goods Shipper’s

• Certificate of origin Declaration: packed, labeled and
• Dealing with a Non-Vessel declared according to regulations.
• Operating Common Carrier • Dock receipt and warehouse receipt
• House and Master Waybills • Consular invoice: language
• Inspection certification • SED: Shipper's export declaration.
• Destination control statement Export statistics
• Commercial Invoices: Customs duties. • Cargo Releases
• Packing List: Box, drum, carton, crate, etc.
Immediate Role
A freight forwarding company is hired by importers and exporters to expedite their cargo supply
chain. Because of this, they are called shipment “expeditors”.

They act as an organizer of the following supply chain processes:

• Export and import handling
• Customs clearing
• Air and Ocean transport and delivery

Freight Forwarder VS Custom Broker

Forwarders take care of the inter-country movement of cargo - from one country in the world to
another (through sea or air) by acting as the middlemen between the shipping lines/airlines and
the importer/exporter. Logistics wise, forwarders will talk to shipping liners and airlines to book
space, to receive and load cargo. They will also coordinate with partner agents in other
countries. They might also link up with trucking firms for inland haulage and talk to customs
brokers (a separate team in their firm or a different broker appointed by the importer/exporter)
for documentation and cargo handover.

Customs brokers act as agents of importers/exporters to use their expertise in the smooth
clearance of cargo at the customs - export, and import.

Clearance is a very technical and highly regulated activity, and hence importers/exporters like to
let the experts handle it. Customs brokers also do not need much working capital to set-up, but
their manpower requirements are higher since brokers need their people to be present at docks,
customs offices as well as back in the shop. There are firms which offer both services. But
mostly, these firms will have separate teams handling these two activities.

The main difference between forwarders and brokers is that a broker never takes
possession of items being shipped. By contrast, the forwarder takes possession of the items
being shipped, arranges smaller shipments, and negotiates for the transportation of the
consolidated shipments.

Freight Forwarder VS Consolidator

There are firms which offer both services. But mostly, these firms will have separate teams
handling these two activities. The main difference between forwarders and consolidators is that
the freight consolidator, consolidator, or groupage operator is an individual or firm who accepts
less than container load (LCL) shipments from individual shippers and then combines them for
delivery to the carrier in full container load (FCL) shipment, uses their vessel or rents space on
independent vessels.
QUOTING
This will be validated against the carrier’s capacity of covering routes and trade lanes,
commodity types, weight, dimensions, and revenue criteria of carriers regarding profit, before
confirmation to complete the quoting process.

Negotiating Air / Ocean line pricing

• The law of supply and demand dictates that the higher the demand for freight space
results in a higher rate. In both Ocean and Air most of the freight forwarding companies
are ruled by “The fastest and cheapest wins” principle.

Booking your cargo

This will be validated against the carrier’s space capacity, weather, commodity,
airports /seaports, and revenue management criteria, before confirmation to
complete the booking process.

After the freight forwarding company settles the price for your cargo, they will now prepare the
sea/airline booking for the shipment ensuring your space is reserved on their Plane/ vessel. This
confirmation will contain the following data:

• Assigned Vessel (Master) • Type of goods

• Flight / Voyage date and number • Incoterms
• Booking number • Issuing agent and its contact details
• Origin and destination • Volume, weight, and dimensions of
shipment
• Eventual assignment to customer or
agent’s allotment
SHIPPING CONTAINER
A shipping container is a container with strength suitable to withstand shipment, storage, and
handling. In the context of the international shipping trade, "container" or "shipping container" is
virtually synonymous with "intermodal freight container," a container designed to be moved from
one mode of transport to another without unloading and reloading.

Types of Containers
Because there are so many commodities that can be shipped, there are different types of
containers that adapt to each customer's needs.

Dry storage container

The most used shipping containers: come in various dimensions
standardized by ISO. They are used for shipping dry materials and
come in sizes 10ft, 20ft, and 40ft.

Flat Rack Container

With collapsible sides, these are simple storage shipping containers
where the sides can be folded to make a flat rack for shipping a wide
variety of goods.

Open Top Container

With collapsible sides, these are simple storage shipping containers
where the sides can be folded to make a flat rack for shipping a wide
variety of goods.

Tunnel Container
Container storage units provided with doors on both ends of the
container. They are extremely helpful in the quick loading and
unloading of materials.

Open Side Storage Container

These storage units are provided with doors that can change into
completely open sides providing a much wider room for loading of
materials.
Double Door Container
They are a kind of storage unit that comes equipped with double
doors, making wider room for the loading, and unloading of materials.
Construction materials include steel and iron in standardized sizes of
20ft and 40ft.

Refrigerated ISO Container

These are temperature regulated shipping containers that always have
a carefully controlled low temperature. They are exclusively used for
the shipment of perishable substances, such as fruits and vegetables,
over long distances.

Insulated or Thermal Containers

These are shipping storage containers that come with a regulated
temperature control allowing them to maintain a higher temperature.
The choice of material is so done to allow them a long life without
being damaged by constant exposure to high temperatures. They are
most suitable for the long-distance transportation of products (foods,
pharmaceuticals, organs, blood, biologic materials, and chemicals).

Tanks
Container storage units used mostly for the transportation of liquid
materials; they are used by a huge proportion of the entire shipping
industry. They are mostly made of strong steel or other anti-corrosive
materials providing them with long life and protection to the materials.

Cargo Storage Roll Container

A foldable container, this is one of the specialized container units made
to transport sets or stacks of materials. They are made of thick and
strong wire mesh along with rollers that allows their easy movement.

Half Height Containers

Made mostly of steel, these containers are half the height of full-sized
containers. Used especially for goods that need easy loading and
unloading much like coal, stones, etc.
Car Carriers
Car carriers are container storage units made especially for the
shipment of cars over long distances. They come with collapsible sides
that help a car fit snugly inside the containers without the risk of being
damaged or moving from the spot.

Intermediate Bulk Shift Container

They are designed to handle large amounts of materials and made for
shipping materials to a destination where they can be further packed
and sent off to the final spot.

Drums
As the name suggests, they are circular shipping containers made
from a choice of materials like steel, lightweight metals, fiber, hard
plastic, etc. They are most suitable for the bulk transport of liquid
materials. They are smaller in size but due to their shape, they may
need extra space.

Special Purpose Containers

Not ordinary containers, these are the container unit’s custom made
for specialized purposes. Mostly, they are used for high profile
services like the shipment of weapons. As such, their construction
and material composition depend on the special purpose they need
to cater to. In most cases, security remains the top priority.

Swap Bodies
They are a special kind of container used mostly in Europe. Not
made according to the ISO standards, they are not standardized
shipping container units but extremely useful all the same. They
are provided with a strong bottom and a convertible top making
them suitable for shipping many types of products.
Containers Spec
These are the most known dimensions for each container:

Containers Equipment
The following are the most known equipment for containers at seaports or transportation:

Container Chassis
A container chassis is a special type of truck undercarriage or
chassis referring to the skeleton structure, which is a part of the
semi-trailer, designed and developed specifically to transport
containers. (Ex: triaxle chassis, heavy haul chassis, spread
axle chassis).

Vessel Container Crane

A container crane (also container handling gantry crane or ship-
to-shore crane) is a type of large dockside gantry crane found at
container terminals for the loading and unloading of intermodal
containers from container ships.
 Rubber Tyred Gantry
A rubber tyred gantry crane (RTG crane) is a mobile gantry
crane used in intermodal operations of ground or stack
containers. RTGs typically straddle multiple lanes, with one lane
reserved for container transfers.

Side Lifter
The side lifter loads and unloads containers via a pair of hydraulic-powered cranes mounted at
each end of the vehicle chassis. The cranes are designed to lift containers; from the ground,
from other vehicles including rolling stock, from railway wagons, and directly from stacks on
docks or aboard container ships.

DRAYAGE
Drayage means transporting goods, a short distance, via ground freight or the charge for such
transport. In freight forwarding, drayage is typically used to describe the trucking service from an
ocean port to a rail ramp, warehouse, or other destination. It is one of the most important, yet
fraught, parts of the supply chain beginning with Customs clearance and extending through
delivery and return of the ocean container.
Export Process

Import Process

Reminder: TWIC Card provided by TSA is the main requirement to enter a seaport

ADDITIONAL SERVICES AND FEES

Drop and pick / Live unload
Drop and pick is when the carrier drops the container in the client’s warehouse and waits for
them to advise when it is ready for pick up. On the other hand, live to unload is when the carrier
waits for the client to load/unload the container until the operation is done. This depends on
customer instructions.
Gate to Gate

Traffic Mitigation Fee

Ports charge a traffic mitigation fee on daytime traffic, with the revenues used to partially
compensate terminals for operating night and weekend gates. It also provides a financial
incentive to move cargo during less-congested times. The TMF is charged for non-exempt
containers moving during peak hours (Monday through Friday, 3 a.m. to 6 p.m.).

Stop Off Fee

When the driver must stop for a special request (usually to pick up/deliver a small portion of the
freight, to do exams or scales) on his way to the delivery location.

Round trip / One Way

Applies when quoting and depends on what the customer asks for, whether the container is
going to be brought back to the port or will stay at their location.

Chassis Split Fee

When the chassis must be returned to a different location from the container. It is quoted just in
case it applies.

Overweight Container
The max weight will depend on each terminal and type of container. Some of them around 20’
will only haul up to 44k lbs. and others around 40’ can do around 58k lbs.

Yard Storage
When a container is in the carrier’s yard waiting to be delivered according to the customer’s
instructions. Charges for this will be per day.

Reposition Charge
It is when you must move a chassis from the rail to depot or vice versa. Depots generally don't
keep chassis’; they are stored at the rail.
PAPERWORK
Trouble Ticket
A ticket issued at the time of entry of a carrier into the port for a variety of reasons that may
hinder or delay the transaction in picking up or dropping off the container they are there
to handle.

Among a variety of causes, transaction problems happen commonly when truckers arrive to pick
up import containers that are on hold or when trucks deliver export containers with incorrect
booking number information.

Delivery Order
A document from a consignee, an owner, or freight carrier agent which orders the release of the
transportation of cargo to another party. Usually, the written order permits the direct delivery of
goods to a warehouseman, carrier, or another person.
According to the Uniform Commercial Code (UCC), a delivery order refers to an "order given
by an owner of goods to a person in possession of them (the carrier or warehouseman)
directing that person to deliver the goods to a person named in the order."

IGM – Import General Manifest

Import General Manifest is a document filed by the carrier of goods with the Customs
Department containing the details of goods arrived at a customs location. Filing of Import
General Manifest is mandatory, insisted by the government of each country.

Bill of entry
Bill of Entry is a legal document filed with the Customs department by an Importer or his
customs broker. Any goods moved into a country need to be approved by customs officials of
each country to move to the importer’s location. The importer or his agent must complete the
necessary import clearance procedures by filing a bill of entry with other required import
documents. Based on filing said bill of entry, the goods are examined and assessed by the
proper customs officer to pass out.

Commercial Invoice
A commercial invoice form is used for all shipments containing non-documents. The commercial
invoice is the primary document used for importation control, valuation, and duty determination.
This document identifies the products being shipped.
PREPARING THE SHIPMENT
Once the goods are ready for carriage, the freight forwarding company will now order the
transport of the goods. Otherwise, it can be temporarily stored at the warehouse while
awaiting shipment.

Ready for Carriage Checklist

• Correctly packing and labeling the cargo.
• Customs clearing the goods for export/import
(if required).
• Preparing the goods for import handling and
clearance (if required) at destination.

Gross, Net and Tare Weight

It is important to know these types of weight of the shipment to identify the needs
that it may have.
• Gross Weight is the total weight of a shipment of goods, including their packaging such
as crates, pallets, etc.
• Net Weight is the weight, or mass, of the goods themselves without any packaging.
• Tare weight is the weight of packaging or a container without the goods.

INTERNATIONAL NUMBERS & DEVICES

H.S. CODE
The Harmonized Commodity Description and Coding System, also known as the Harmonized
System (HS) of tariff nomenclature is an internationally standardized system of names and
numbers to classify traded products.

The HS is organized logically by economic activity or component material. For example, animals
and animal products are found in one section of the HS, while machinery and mechanical
appliances are found in another. The HS is organized into 21 sections, which are subdivided
into 96 chapters. The 96 HS chapters are further subdivided into approximately 5,000 headings
and subheadings.

The HS code consists of 6-digits. The first two digits designate the HS Chapter. The second two
digits designate the HS heading. The third two digits designate the HS subheading. HS code
1006.30, for example, indicates Chapter 10 (Cereals), Heading 06 (Rice), and Subheading 30
(Semi-milled or wholly milled rice, whether polished or glazed).

SCHEDULE B
Export codes, also known as Schedule B numbers, are administered by the U.S. Census
Bureau. All import and export codes used by the United States are based on the Harmonized
System (HS). The HS assigns 6-digit codes for general categories. This 6-digit code is known
as the Harmonized System number.

EEI (SED)
The Electronic Export Identifier, or EEI, is the replacement for the no-longer-accepted manual
filing process known as the shipper's export declaration or SED form. The U.S. Bureau of
Census replaced the forms with this electronic process through its AES Direct website.

The EEI must be filed with shipments from the U.S., Puerto Rico or the U.S. Virgin Islands to
foreign destinations; between the U.S. and Puerto Rico; and from the U.S. or Puerto Rico to the
U.S. Virgin Islands, if any of the following applies:

• Shipment of merchandise under the same Schedule B commodity number is valued at

more than US$2,500 and is sent from the same exporter to the same recipient on the
same day. (Note: Shipments to Canada from the U.S. are exempt from this
requirement.) the process through its AES Direct website
• The shipment contains merchandise, regardless of value, that requires an export license
or permit.
• The merchandise is subject to the International Traffic in Arms Regulations (ITAR),
regardless of value.
• The shipment, regardless of value, is being sent to Cuba, Iran, North Korea, Sudan, or
Syria.
• The shipment contains rough diamonds, regardless of value (HTS 7102.10, 7102.21,
and 7102.31).
• The EEI is not required for shipments from the U.S. to Canada unless the merchandise
is subject to ITAR, requires an export license or permit, or is rough diamonds.
• An EEI is not required for shipments to other U.S. territories (American Samoa,
Commonwealth of the Northern Mariana Islands, Guam, Howland Islands, and Wake
Island) or from the U.S. Virgin Islands to the U.S. or Puerto Rico.
DEALING WITH THE CARRIER
AIR CARRIERS
Airline carriers have a different process when accepting cargo for air freight, most of which are
due to the additional security they need to perform to ensure you are not loading dangerous
goods into their craft. That is why It would be difficult to get your cargo space on the plane on
your own.

Negotiating Air Line Pricing

An air freight forwarding company that has regular transactions with an airline company
has more chances of getting a space on board with better deals. This one of the reasons
why it's always best to choose a freight forwarding company with established
relationships with carriers.

AIR TRANSPORTATION PAPERWORK

The House Air Waybill

To ensure all the different customers of the freight forwarding company are
properly tracked, freight forwarding companies create a House Air Waybill (HAWB)
for each shipment. It becomes the shipment contract between the end-customer
and the forwarder.
OCEAN CARRIERS
Ocean carriers Mostly known as Steamship lines and/or Vessel owners have different
processes when accepting cargo for sea/ocean freight, most of which are due to the additional
security they need to perform to ensure you are not loading dangerous goods into their vessel
and to ensure the safety of life at sea (SOLAS) while in transit. It would be difficult to get your
cargo space on the vessel on your own.

Full Container Load (FCL)

Full Container Load (FCL). Full Container Load means that all goods in the container are
listed on a single Bill of Lading, and as such are owned by a single party. It does not
matter how full the container is. Payment is made based on a full container.

A standard (twenty or forty-foot) container that is loaded and unloaded under the risk
and account of the shipper or consignee. In general, a full container load attracts lower
freight rates than an equivalent weight of loose (break bulk) cargo.

Less than Container Load (LCL)

Under a Less than Container Load cargo, wherein a shipper does not have enough
goods to accommodate in one full container, he books cargo with a consolidator to
consolidate his goods along with goods of other shippers. This type of shipment is called
LCL shipment. The said consolidator arranges a fully loaded container (FCL) and
consoles the shipments of other shippers and delivers each shipment to the destination
by separating each shipment at the destination.

Steamship lines / Ocean shipping lines

A Shipping Line is a company that operates the ships that carry the
containers (owned or leased) and cargo from load port to discharge port.

Example: Hapag Lloyd, Maersk, China Shipping. Some of the shipping

lines have container services covering most ports of the world, and,
commonly, they might run into a situation whereby they have a shortage
of containers at certain locations, or they might have a requirement of
certain types of containers (Flat Racks, Open Tops, etc.) at certain locations.

Marine Shipping Agencies

A shipping agency or shipping agent is the designated person or agency
by a Shipping line to represent their company and services and is held
responsible for handling shipments and cargo on their behalf.
NEGOTIATING OCEAN LINE PRICING
An ocean freight forwarding company that has regular transactions with shipping companies
both Steamship lines (SSL) or vessel owners has more chances of getting a space on board
with better deals. Thus, one of the reasons why it's always best to choose a freight forwarding
company with established relationships with carriers.

SAFETY OF LIFE AT SEA (SOLAS)

The SOLAS VGM regulation specifically prohibits a packed container from being loaded on-
board a vessel if it does not have a VGM (Verified gross mass). Certain terminal operators
have stipulated that they may not accept a container into the terminal unless the VGM has been
provided. It is therefore extremely important for the Shipper to provide the VGM at the earliest
possible stage of the documentation process to ensure acceptance at the terminal and available
to load to the intended vessel.

The VGM is the certified Gross Cargo Mass (including the weight of all packing material) plus
container tare mass. VGM is required before loading a packed container to a vessel. Cargo will
not be loaded onto a vessel unless a certified VGM is provided.

OCEAN TRANSPORTATION PAPERWORK

The Master Bill of Lading

The Master Bill of Lading (MBL) is a document created by shipping lines companies or
vessel owners to forwarders or customers. An MBL works as a legal document for
carriage contracts, and it summarizes the contents of a shipment including the bill of
lading numbers assigned to the various items within the shipment, as well as a
description of the freight under each bill of lading.
The document also includes the terms for transporting the freight and the name and
address of the consignor, or the shipper, and the consignee, the person who possesses
the goods.

The House Bill of Lading

The House Bill of Lading (HBL) is a document created
by an Ocean Transport Intermediary (OTI) such as a
freight forwarder or non-vessel operating company
(NVOCC).
The document is an acknowledgment of the receipt of
goods that are to be shipped. It is issued to the supplier
once the cargo has been received and may be used
instead of a Master Bill of Lading (MBL). HBL includes
the name and address of the shipper, who delivers the
shipment to the freight forwarder, and the consignee,
who the freight forwarder delivers the shipment to. The
document also includes specific information about the
items shipped and the value of the shipping contract.
Original Bill of Lading
An Original Bill of Lading is produced and
provided to the shipper. The shipper will
either send the Original Bill of Lading to the
importer or usually hold it until payment has
been made to them.
Upon the shipper’s authorization to release
goods, the Original Bill of Lading can be sent
to the importer in which they can surrender to
the freight forwarding company to secure the
release of the sea freight shipment.

Releasing Ocean Cargo

This type of release is easier but also riskier than
the OBL (Original bill of lading) difference is that if
the original is made, you will need to have it in
hand to be able to release the merchandise, so
there will be a shipping cost of international
documentation, which can normally be negotiated
between both parties. However, if it is the Telex
Release you are using depending on the shipping
line can be an internal email requesting the
release or a screenshot from the SSL system or a
document showing the telex release confirmation.
Seaway Bill – Not Negotiable
Also known as “Express Release”, a
Sea Waybill is used when the shipper
decides to release ownership of the
cargo immediately.
This means that the goods can be
delivered to the person identified in the
document, and they will simply have to
verify their identity and in some cases
depending on the shipping line present
a document named “Seaway bill” to
claim the freight. It is important to
mention that a Sea Waybill only plays
an evidential function and does not
give the title to the goods
(non-negotiable).

PORT RESTRICTIONS

LFD LAST FREE DAY

Terminals charge demurrage fees if your cargo isn’t picked up within a certain
Number of "free" days. To avoid demurrage fees, your cargo must be picked up
by the Last Free Day.

DEMURRAGE
Import Container: Demurrage fees are charged when import containers are still full and
under the control of the shipping line. In this situation, the container has not yet been
picked up by the consignee, and the free time for pick up set by the ocean line has
expired for the container.

Export Container: Demurrage charges occur after the loaded export container has
been returned to the possession of the steamship line but cannot be shipped out due to
non-carrier related errors once the allotted free time has expired.

DETENTION
Import Container: Detention/Per Diem is charged when import containers have been
picked up, but the container is still in the possession of the consignee and has not been
returned within the allotted time.
 Export Container: Detention/Per Diem is charged for export containers in which the
empty container has been picked up for loading, and the loaded container is returned to
the steamship line after the allotted free time.

FDA & FDA RELEASE

FDA (Food and Drugs Administration) regulated products imported into the U.S. must
comply with the same FDA laws and regulations that apply to domestic products. Entries
are submitted to U.S. Customs and Border Protection (CBP) which then refers entries of
FDA regulated products to FDA for review.

Products considered higher-risk and entry submissions with incomplete or inaccurate

information are flagged for manual review by FDA to determine the admissibility of the
product. FDA’s screening tool uses various sources of information to assess risk; for
example, a firm’s previous compliance history or known compliance problems with a
certain product.

CONCLUSION
We have covered everything from brokers and carriers to claims and insurance and even billing
practices. We have talked about the many differences between Less-Than-Truckload freight
and Truckload freight, and when it is best to use both. We have touched on transportation
management systems, quotes, freight class, and even reefer trucks.
Also, we have seen in general the most important subjects in the freight forwarding industry,
from identifying the different types of carriers, the paperwork of those, the negotiation process,
and the additional services they could have.

You will find attached a Glossary of the many terms we have referenced in this book, along with
some frequently asked questions that we have compiled over the years.

We hope this book has introduced you to freight shipping in a way that is fun and easy to
understand, and that you’ll be able to look back as needed on the information
and instructions it provides.