2010
Michael J. Curry, CTB
[MODULE 4]
A Whitepaper on the ins and outs of shipping LTL
Module 4
Table of Contents
Receiving Freight .......................................................................................................................................... 3
Basic Loss and Damage Claims Information ................................................................................................ 4
Overcharge and Duplicate Payment Claims ................................................................................................ 5
Trade Organizations ................................................................................................................................... 12
Glossary ...................................................................................................................................................... 17
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CHAPTER 1
Receiving Freight
Receiving Freight
What about when you receive freight? Follow these steps:
1. Stay in contact with your supplier to find out when your shipment was shipped, what carrier it was
given to, and an approximate arrival date. If you can get the pro number, don’t be afraid to call the
carrier to check on the arrival date.
2. On arrival, inspect the shipment immediately.
 Does the piece count match?
o If the shipper had the driver who picked up the shipment count the actual pieces (and
not just the pallets), be sure you count those pieces and not just the pallets.
 Is the stretch-wrap intact?
 Is there any damage to the boxes or cartons?
o Look for boxes that have holes poked in them or are crushed
 If it appears that freight was loaded on top of the shipment, check the top layer for hidden
damage (contents within boxes are damaged without obvious damage to box) (See Claims
section for claim processing information)
3. Sign the delivery receipt notating any damage or shortages and require the driver to initial the
notations. If you sign a delivery receipt without notating damages or shortages, the carrier has what is
known as a “clear receipt”. This is the first line of defense against any claim you might need to make
later. Also, be aware that signing a receipt “subject to inspection” does nothing for you as you are
required to inspect the shipment while the carrier’s driver is there.
4. If a shipment is either short or damaged, you should still accept the delivery. It's the legal
responsibility of the shipper and the consignee to mitigate the loss. After you accept the shipment, take
steps to protect the shipment from further loss and file a claim for the actual shortages or damages
involved promptly. Do NOT discard the packaging. Contact the carrier for an inspection.
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CHAPTER 2
Basic Loss and Damage Claims Information
Filing freight claims is a process controlled both by Federal Regulations and individual carriers’ rules
tariffs. From a Federal standpoint, a shipper or receiver has 9 months to file a claim for loss and/or
damage. Carriers cannot shorten this time frame through their rules tariff, although some will try.
In theory, each carrier is liable for the full value of each shipment that is damaged or lost (Carmack
Amendment); in practice the carriers limit their exposure to a maximum dollar “per pound.” Most even
take it a step further by adding “per package”. This is possible as long as the customer is offered a
choice of rates for full coverage vs. limited coverage. The carriers accomplish this “choice” by offering
the customer the ability to “buy” additional insurance for full coverage in their accessorials. (See Section
on Liability Limitations in Module 1). If you do not buy the additional coverage, you have chosen the
liability limitation in the carrier’s tariff.
Example:
ITEM 570
LIMITED LIABILITY AND FULL VALUE COVERAGE, CARGO LOSS OR DAMAGE ITEM 570
PART VI -- FULL VALUE COVERAGE: EXTRAORDINARY VALUE (Conc.)
1. Commodities tendered for shipment with an invoice value exceeding values stated in Part I will be
considered to be of "Extraordinary Value".
2. If shipper desires to tender a shipment to AACT requiring carrier liability in excess of the limited
liabilities named in this item, the shipper must indicate such in writing on the Bill of Lading at time of
shipment, along with the invoice value of the shipment in substantially the following manner:
"FULL VALUE COVERAGE REQUESTED - INVOICE VALUE: $ ___________________.”
EXAMPLE: 1,000 pound shipment with an invoice value of $30,000.00 is $30.00 per pound which
exceeds the limited liability provisions named in this item. A customer requiring "Full Value Coverage"
would show on the Bill of Lading at the time of shipment:
"FULL VALUE COVERAGE REQUESTED - INVOICE VALUE: $30,000.00"
3. Charge per $100.00 for "Full Value Coverage": Between points in Continental U.S.A .................... $0.65
Between Continental U.S.A. and Canada or Puerto Rico ..................................................................... $0.70
Minimum Charge Per Shipment ......................................................................................................... $35.00
For all other International traffic, call for quote.
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4. "Full Value Coverage" includes the amount of the invoice supplied by the shipper or consignee, plus
the prepaid or collect freight charges not included in the invoice, plus 10.0% calculated, as follows:
EXAMPLE:
1. INVOICE AMOUNT - $30,000.00, plus Freight Charges of $395.50 = $30,395.50
2. AMOUNT OF COVERAGE - $30,395.50 multiplied by 110% = $33,435.05
3. $100.00 UNITS - $33,435.05 divided by 100 = 334.35
4. FULL VALUE COVERAGE CHARGE = 334.35 multiplied by $.65 = $217.33
5. Unless otherwise indicated on the Bill of Lading at time of shipment, charges for "Full Value Coverage"
will be paid by the party responsible for the freight charges.
6. When the rate and/or class is dependent upon released value as provided in the NMFC 100 series and
"Full Value Coverage" is requested, the customer will receive benefit of lowest released value for the
purpose of determining the applicable rate and/or class published in the NMFC 100 series.
7. "Full Value Coverage" is available on traffic moving between points within the 48 contiguous United
States, as well as between points in the 48 contiguous United States and points in Canada or Puerto
Rico. Full Value Coverage will be added to all LTL Puerto Rico shipments unless specifically waived by the
customer.
8. Full Value Coverage may not be available on all commodities or values. For example, other than new
items, items not properly packaged, perishable items, or prohibited items (as can be found in Item 780
of this Rules Tariff) are not eligible for “Full Value Coverage.”
If the carrier is a participant in the NMFC (and virtually all the LTL carriers are) then they have to follow
its rules regarding claims. See below:
The claim must be in writing:
Item 300105
(a) Compliance with regulations. A claim for loss or loss or damage to baggage or for loss, damage,
injury, or delay to cargo will not be voluntarily paid by a carrier unless filed in writing, as provided in
subparagraph (b) below, with the receiving or delivering carrier, or carrier issuing the bill of lading,
receipt, ticket, or baggage check, or carrier on whose line the alleged loss, damage, injury, or delay
occurred, within the specified time limits applicable thereto and as otherwise may be required by law,
the terms of the bill of lading or other contract of carriage, and all tariff provisions applicable thereto.
(b) Minimum filing requirements. A communication in writing from a claimant, filed with a proper
carrier within the time limits specified in the bill of lading or contract of carriage or transportation, and
(1) containing facts sufficient to identify the baggage or shipment (or shipments) of property involved,
(2) asserting liability to alleged loss, damage, injury, or delay, and (3) making claim for the payment of a
specified or determinable amount of money, will be considered as sufficient compliance with the
provisions for filing claims embraced in the bill of lading or other contract of carriage.
(c) Bad order reports, appraisal report of damage, notations of exceptions on freight bills or other
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documents, inspection reports issued by carrier inspection agencies, tracers or inspection requests do
not comply with claim filing requirements.
Documents (proof) are required:
Item 300110
DOCUMENTS REQUIRED IN SUPPORT OF CLAIMS
(a) A written demand for payment, asserting carrier liability for alleged loss, damage, injury or delay,
and containing facts sufficient to identify the shipment or shipments involved will constitute a claim,
regardless of form, and will be required.
(b) When claimant does not appear from the supporting documents to be an interested party,
carrier will require any necessary written assignment or other proof to determine the claimant is the
proper party to receive any claim payment.
(c) Claim must be supported by either the original invoice; a photographic copy of the original
invoice; an exact copy thereof, or an extract therefrom, certified by the claimant or his authorized
representative to be true and correct with respect to the property involved in the claim and reflecting all
trade or other discounts, allowances, or deductions of any nature. When the original invoice is not
submitted, such document must be made available for inspection by carrier representative upon
request.
(d) When determined by the carrier to be a necessary part of the investigation, the following will be
required:
1. The original freight bill and bill of lading or other contract of carriage. When claimant cannot
furnish these documents, carrier may require suitable indemnity from the claimant.
2. When the property involved in the claim has not been invoiced to the consignee or where
invoice does not show price or value, or where the property has not been sold but transferred at
bookkeeping values only, or where property has been shipped on consignment or approval,
documentation to establish destination value in the quantity shipped and certification of the correctness
thereof.
3. In order to establish the full recoverable loss caused by the carriers, the original account of
sale, showing the date of sale and the amounts realized on the damaged and undamaged portions,
respectively, showing grade, brands, quality, variety, size and condition, together with any deductions,
allowances, and commissions, or a copy thereof certified correct over the signature of the claimant or an
authorized representative thereof.
4. When shipment has received prior transportation and is reshipped from a distribution or
warehousing point but has been opened and examined and contents verified as being in undamaged
condition, certification thereof must be made by a person having actual knowledge of such inspection
and a statement to that effect incorporated in such certification.
5. When an asserted claim for loss of an entire package or on an entire shipment cannot be
otherwise authenticated upon investigation, the carrier will obtain from the consignee of the shipment
involved, a certified statement in writing that the property for which the claim is filed has not been
received from any source.
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The claim must be for a specific amount.
Item 300115
CLAIMS FILED FOR UNCERTAIN AMOUNTS
Whenever a claim is presented against a proper carrier for an uncertain amount, such as "$100 more
or less," the carrier against whom such claim is filed will determine the condition of the shipment
involved at the time of delivery by it, if it was delivered, and will ascertain as nearly as possible the
extent, if any, of the loss or damage for which it may be responsible. It will not however, voluntarily pay
a claim under such circumstances unless and until a formal claim in writing for a specified or
determinable amount of money has been filed in accordance with the provisions of item 300105 .
Claims must be acknowledged as received by the carrier.
Item 300120
ACKNOWLEDGMENT AND DISPOSITION OF CLAIMS
Carrier will acknowledge claim in writing within 30 days after receipt thereof, informing the claimant
of identifying number assigned thereto, and will pay, refuse payment, or make a firm compromise offer
within 120 days after receipt of claim, except, that if claim cannot be disposed of within this period,
carrier will at that time and at the end of each succeeding 60 day period thereafter while claim remains
pending, inform the claimant in writing of the reason for failure to conclude claim. The carrier shall
indicate in its acknowledgement to the claimant what, if any, additional documentary evidence or other
pertinent information may be required by it further to process the claim as its preliminary examination
of the claim, as filed, may have revealed.
A separately numbered file will be established for each claim filed in accord with the provisions of
these rules. All documents, records and correspondence pertaining to such claim will be identified with
this file number.
If it appears a shipment has had contents stolen, an inspection must be conducted at the time of
delivery:
Item 300130
PILFERAGE
When offering a shipment for delivery, if any portion of shipment bears any indication of having
been pilfered, a joint inventory of contents must be made by carrier and consignee and the results of
inventory so noted on carrier's delivery receipt.
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Concealed or Hidden Damage
Item 300135
REPORTING CONCEALED DAMAGE
When damage to contents of a shipping container is discovered by the consignee which could not
have been determined at time of delivery it must be reported by the consignee to the delivering carrier
upon discovery and a request for inspection by the carrier's representative made. Notice of loss or
damage and request for inspection may be given by telephone or in person, but in either event must be
confirmed in writing by mail. If more than fifteen days pass between date of delivery of shipment by
carrier and date of report of loss or damage, and request for inspection by consignee, it is incumbent
upon the consignee to offer reasonable evidence to the carrier's representative when inspection is
made that loss or damage was not incurred by the consignee after delivery of shipment by carrier. While
awaiting inspection by carrier, the consignee must hold the shipping container and its contents in the
same condition they were in when damage was discovered insofar as it is possible to do so
Example of a carrier’s rules regarding Concealed Damage:
ITEM 450
CONCEALED OR UN-NOTED DAMAGE
Notification of damage must be received within 15 days from the date of delivery. When the notification
is received within this time frame, possible consideration of up to 1/3 payment may be made if it is
determined the carrier may have contributed to the damage.
Note that you can still receive the full amount on concealed damage despite the 1/3 payment part of
the item. It is the carrier’s responsibility to prove that it was NOT negligent in handling your traffic.
As the claimant you must request the carrier conduct an inspection.
Item 300140
INSPECTION BY CARRIER
Inspection by carrier will be made as promptly as possible and practicable after receipt of request by
consignee. Inspection will be made within five normal work days after receipt of request from
consignee, excluding Saturdays, Sundays and holidays. A day will be considered as the passing of twenty
four (24) hours from 9 A.M., local time from the date of receipt of request for inspection. Inspection of
carrier will include examination of the damaged merchandise, the shipping container, and any other
action necessary to establish all facts. If a shortage is involved, inspector will check contents of package
with invoice, weigh the shipping container and contents, or conduct any other type of investigation
necessary to establish that a loss has occurred. In either case inspection will be limited to factual report.
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Consignee must cooperate with carrier in every way possible to assist in the inspection. A written record
of carrier's findings will be made at least in duplicate. The original of the report will be given the
consignee for claim support. Any inspection report issued must be incorporated in claim file.
What happens if the carrier does not inspect?
Item 300145
FAILURE TO INSPECT
In the event carrier does not make an inspection the consignee must make the inspection and
record all information to the best of his ability pertinent to the cause. Consignee's inspection, in such
case, will be considered as the carrier's inspection and will not jeopardize any recovery the consignee is
due based on the facts contained in the report.
What happens to the damaged product?
Item 300150
SALVAGE RETENTION
When visible or open damage to a shipment has been established by notation having been given at
time of delivery or concealed damaged established by inspection report, it is the duty of the consignee
to retain damaged merchandise and shipping container until carrier desires to take possession of
merchandise as salvage. If record conclusively reflects carrier liability, carrier will take possession of the
damaged merchandise as soon as possible and in any event; within thirty (30) days from date shipment
was noted damaged on carrier delivery receipt or from date of inspection report, if damage was
concealed. If carrier does not take possession of the damaged merchandise within the time prescribed
above, consignee must contact delivering carrier and request removal of goods from his premises within
fifteen (15) days from the date of such communication. The above applies only when the carrier and
consignee agree that the carrier will handle disposition of the salvage, and does not in any manner
affect the legal duty that the consignee, when there is substantial value in the salvage, must accept and
handle it in such a manner as to mitigate the carrier's loss as much as possible. If there is doubt of
carrier liability, the carrier will so advise consignee; in which even the consignee may hold the
merchandise until liability of carrier is determined, or may dispose of it so as to mitigate the damage,
and may file claim for such damage. Carrier will remove the damaged goods within the fifteen (15) day
period or advise consignee that carrier liability is in doubt and that damaged merchandise is to be
retained by the consignee until carrier has completed investigation of claim
Many carriers allow customers to file claims on their websites. Standard Loss and Damage Claim Forms
are available from many sources including the NMFC.
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CHAPTER 3
Overcharge or Duplicate Payment Claims
Overcharge claims result when a carrier charges too much for the service based on the pricing quote or
tariff you have negotiated. Perhaps you have negotiated a freight class exception and the carrier rate
clerk misses it when entering the billing information into the carrier’s computer. Your A/P department
pays the bill then sends it to you where you discover the overcharge. To recover your company’s money,
you must file an Overcharge Claim. In practice you can usually call your carrier rep and get this fixed
without filing a written claim. Both the shipper and the carrier have 180 days to file a claim for an
overcharge or an undercharge (carrier under bills you). Duplicate payments occur when a freight bill
gets paid more than once. Below is the NMFC Rule that applies.
Item 300209
DISPOSITION OF UNIDENTIFIED PAYMENTS,
OVERCOLLECTIONS NOT SUPPORTED BY CLAIMS
OVERCHARGES,
DUPLICATE
PAYMENTS,
AND
(a) (1) Carriers shall establish procedures for identifying and properly applying all unidentified
payments. If a carrier does not have sufficient information with which properly to apply such a payment,
the carrier shall notify the payor of the unidentified payment within 60 days of receipt of the payment
and request information which will enable it to identify the payment. If the carrier does not receive the
information requested within 90 days from the date of the notice, the carrier may treat the unidentified
payment as a payment in fact of freight charges owing to it. Following the 90-day period, the regular
claims procedure under this part shall be applicable.
(2) Notice shall be in writing and clearly indicate that it is a final notice and not a bill. Notice shall
include: the check number, amount, and date; the payor's name; and any additional basic information
the carrier is able to provide. The final notice also must inform payor that: (i) applicable regulations
allow the carrier to conditionally retain the payment as revenue in the absence of a timely response by
the payor; and (ii) following the 90-day period the regular claims procedure shall be applicable.
(3) Upon a carrier's receipt of information from the payor, the carrier shall, within 14 days: (i)
make a complete cash refund of such funds to the payor; or (ii) notify the payor that the information
supplied is not sufficient to identify the unapplied payment and request additional information; or (iii)
notify the payor of the carrier's determination that such payment was applicable to particular freight
charges lawfully due the carrier. Where no refund is made by the carrier, the carrier shall advise the
payor of its right to file a formal claim for refund with the carrier in accordance with the regular claims
procedure under this part.
(b) When a carrier which participated in a transportation movement, but did not collect the
transportations charges, finds that an overpayment has been made, that carrier shall immediately notify
the collecting carrier. When the collecting carrier (whether single or joint-line haul) discovers or is
notified by such a participating carrier that an overcharge, duplicate payment, or overcollection exists
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for any transportation charge which has not been the subject of a claim, the carrier shall create a file as
if a claim had been submitted and shall record in the file the date it discovered or was notified of the
overpayment. The carrier that collected the charges shall then refund the amount of the overpayment
to the person who paid the transportation charges or to the person that made duplicate payment within
30 days from the date of such discovery or notification.
Carrier rules may differ.
Overcharge Claims—Filing Procedures Item 23
(1) Claims for overcharge, duplicate payment, or overcollection shall be accompanied by sufficient
information to allow carriers to conduct an investigation and pay or decline the claim. Claims shall
include the name of the claimant, its file number, if any, and the amount of the refund sought to be
recovered, if known.
(2) Except when the original freight bill is not a paper document but is electronically transmitted, claims
for overcharge shall be accompanied by the original freight bill. Additional information may include, but
is not limited to, the following:
(a) The rate, classification, or commodity description or weight claimed to have been applicable,
(b) Complete tariff authority for the rate, classification, or commodity description claimed,
(c) Freight bill payment information,
(d) Other documents or data which is believed by claimant to substantiate the basis for its claim.
(3) Claims for duplicate payment and overcollection shall be accompanied by the original freight bill(s)
forwhich charges were paid (except when the original freight bill is not a paper document but is
electronically transmitted) and by freight bill payment information.
(4) A carrier may accept copies instead of the original documents required to be submitted in this item
where the carrier is furnished with an agreement entered into by claimant which indemnifies the carrier
for subsequent duplicate claims which might be filed and supported by the original documents.
(5) Carrier must issue any bill for charges in addition to those originally billed within 180 days of the date
of the original bill in order to have the right to collect such additional charges. Debtor must contest the
original bill within 180 days of the date of the original bill in order to have the right to contest such
charges. Debtor shall not have the right to withhold or offset the payment of charges for any reason,
including but not limited to, claims for lost or damaged goods.
860 OVERCHARGE – CLAIM FILING
Overcharge and undercharge claims shall be filed in accordance with 49 CFR Part 378. Overcharges not
filed in writing with Carrier within 180 days of receipt of invoice shall be deemed waived.
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CHAPTER 4
Organizations of Interest
The following organizations have information and newsletters that are of interest to the shipping public.
Participation as a member allows access to the newsletters and training programs offered by each
institution.
Transportation and Logistics Council, Inc.
TLC is a not-for-profit corporation dedicated to serving the interests of the shipping community
through education and representation in issues relating to the transportation of goods. Virtually anyone
that is directly or indirectly involved in transportation, distribution, logistics, purchasing, shipping, risk
management, insurance, cargo inspection and surveying, loss prevention, packaging, customer service,
consulting and legal services can benefit from membership.
Since its formation in 1974, the Council has published numerous texts and educational materials, and
has conducted seminars for thousands of students. The Council, as a representative of the interests of
shippers large and small, has been directly involved in the formative processes of legislation and
government regulation of the transportation industry. The Council is also a co-sponsor of Transportation
Arbitration Board, Inc. (TAB) and the Certified Claims Professional Accreditation Council, Inc. (CCPAC)
Each spring and fall, the Council conducts educational seminars on topics such as "Freight Claims-Filing
& Recovery" and "Contracting for Transportation & Logistics Services". The Council's Annual
Conference, "Education for Transportation Professionals" is held in March or April at different cities
throughout the nation. These seminars and educational conferences are acclaimed as the best in the
industry, as well as offering opportunities for networking with other transportation professionals.
All members receive a monthly TransDigest containing a wealth of current, practical information on
developments in all modes of transportation - truck, rail, air and ocean. Members have access to the
Council's "Q&A" forum via the Internet and a telephone "Hot Line" for answers and advice on their dayto-day questions. Members also receive a directory of members, as well as discounts on books,
educational materials, workshops and seminars. New members receive a complimentary copy of Freight
Claim Prevention in Plain English and Transportation Insurance in Plain English.
Membership is open to all segments of the transportation community -- Shippers, Carriers, Third Party
Logistics Providers, Brokers, Freight Forwarders and other Service Providers.
Website:
http://www.tlcouncil.org/index.htm
The National Industrial Transportation League (NITLeague)
As the nation’s oldest and largest freight transportation association, The National Industrial
Transportation League has a rich history. From its beginnings in 1907 when economic regulation ruled
our industry through the present, the League has been in the forefront of changes that have helped
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shape our nation’s commercial freight transportation system. From rail, to motor carriage, through
ocean transport and air commerce – the League has been a proven leader in representing shippers’
interests. In 2009 the League continues this rich tradition and has never been better prepared to meet
tomorrow’s challenges. Fulfilling the mandate set to broaden its membership base, the League is well
positioned to engage all sectors of the industry to develop a modern, safe and efficient freight transport
system, which meets our country’s commercial needs both domestically and internationally. These
cooperative efforts are certain to bring about workable approaches to difficult problems and advance
solutions which will benefit everyone dependent on freight transportation.
Website:
http://www.nitl.org
Council of Supply Chain Management Professionals (CSCMP)
The CSCMP Board of Directors is responsible for voting on the mission, vision, and goals of CSCMP on an
annual basis. With the board coming directly from the field of SCM, their understanding of the needs
and wants of CSCMP members creates an organizational structure with the return result of CSCMP
providing unparalleled service based on what is best for the supply chain professional and the
advancement of their career.
Review the CSCMP Strategic Plan, and learn the steps of which CSCMP will do to accomplish the mission
and goals during 2010 – 2012. This strategic plan is available to the public for review as a PDF download.
CSCMP Mission
To lead the evolving supply chain management profession by developing, advancing, and disseminating
supply chain knowledge and research.
CSCMP Vision
The Council of Supply Chain Management Professionals is the preeminent worldwide professional
association of supply chain management professionals.
CSCMP exists to:



Provide opportunities for supply chain professionals to communicate in order to develop and improve
their supply chain management skills
Identify and conduct research which adds to the knowledge base of supply chain theory and practice
Create awareness of the significance of supply chain to business and to the economy
CSCMP is not:


A trade association, social organization, or high-density market, so we do not condone suppliers who
use the organization to promote their services
Aligned with shippers, carriers, warehouse operators, material handling equipment manufacturers,
consultants, or any other similar industrial grouping
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

An organization that engages in matters where various members have contrary interests
An organization that endorses, sanctions, or discourages supply chain-related legislation, products, or
services
CSCMP Values
As a professional not-for-profit organization, the Council of Supply Chain Management Professionals
holds these values:





We operate with the highest standards of integrity and ethics.
We are committed to the individual professional development of our members.
We are an inclusive organization, open to all who wish to enhance their supply chain management
knowledge.
We endeavor to be the supply chain management thought leaders by encouraging, promoting, and
disseminating leading edge products and services.
We endeavor to offer products and services of the highest quality.
CSCMP
Goals
1) Provides leadership in developing, defining, understanding, and enhancing the logistics and supply
chain management profession.


Retain and Recruit Members
Be a source of high quality information
2) Enhances member value through education, networking, research, communication, and other
services





Support global roundtables
Provide and promote high quality education to help our members and improve the profession
Provide and promote high quality education and member networking opportunities through an annual
educational conference
Provide and promote high quality research to help our members and improve the profession
Communicate effectively with all constituents
3) Operates with sound business practices.



Be a flexible and responsive professional association
Provide necessary infrastructure to support the association’s vision, mission and goals
Utilize sound financial practices
Website:
http://cscmp.org
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Transportation Intermediaries Association
The Transportation Intermediaries Association (TIA) is the premiere organization for third-party logistics
professionals doing business in North America. TIA provides resources, education, information, advocacy
and connections to establish, maintain and expand ethical, profitable and growing businesses in service
to their customers.
Vision Statements
TIA is a strong, united and synergistic organization for North American third-party logistics companies
that celebrates the individual disciplines of its members while speaking with one voice to shippers,
carriers, government officials and international organizations.
TIA provides value to its members through promotion of TIA members, promotion of the third-party
logistics industry, education as well as product and service offerings that assist members in the
successful conduct of their businesses.
TIA provides leadership and direction for the 3PL industry and professionals to advance
professional standards, business practices and the overall image and credibility of the profession and its
ultimate contribution to society.
Website:
http://www.tianet.org
The SMC3 Company
Shippers, carriers and logistics service providers look to SMC³ for the technology, industry data,
educational services and general know-how to achieve greater success in the transportation
marketplace. Founded in 1935, SMC³ has built a reputation among industry professionals as a central
knowledge base for decision support, improved collaboration and streamlined processes in the
movement of freight via motor carriers.
Membership Programs
As an industry association, SMC³ delivers added value to a membership base of more than 1700
transportation purchasers and service providers. Being affiliated with SMC³ on a membership level
enables you to take full advantage of our industry and pricing expertise, beyond the product(s) you may
be utilizing.
Educational Opportunities
SMC³ prides itself in being a leader in transportation industry education. With a customer base covering
all aspects of freight movement, the company strives to make its educational services the most
comprehensive and valuable opportunities out there. SMC³ also draws upon the feedback of its
membership and alliance partners to provide the most relevant and current educational topics.
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Software Alliance Partnerships
SMC³ remains in the forefront of cutting edge technology through a dedicated staff and partnerships
with leaders in the industry. Recognizing the close relationship between its rating and routing solutions
and the technology systems they connect to, the company has established business relationships with
application software developers and third party providers to offer those who utilize larger technology
applications a smoother, more rapid system implementation.
SMC³ and the LTL Pricing Process
SMC³'s involvement in LTL pricing centers on the establishment of base rates as a benchmark for carriershipper negotiations and the dissemination of this data through modern information technology.
Specialized research initiatives and feedback from industry interest groups, as well as SMC³'s internal
technological expertise, contribute to the company's process of supplying superior data and technology
tools to the marketplace.
Press Room
The SMC³ Press Room is a special area for the media, software alliance partners and other interested
parties to access more information on SMC³ via its press releases, newsletter, events calendar and more.
Website:
http://www.smc3.com
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Glossary of Terms
Transportation
Backhaul - The return movement of a vehicle from its destination back over a part or all of a route to its
point of origin with a payload.
Bill of Lading (BOL or B/L) - A contract of carriage between a shipper (the consignor) to consign a load to
a carrier for delivery to another party (the consignee).
Cargo (Payload) - Goods that are transported in a vehicle.
Carrier - Transportation service provider.
Contract Carrier - A for-hire carrier that serves only shippers with which the carrier has a continuing
contract, and not the general public.
Cross Dock - An on-route dock where shipments are transferred from one vehicle to one or more
vehicles without intermediate storage.
DCC - Dedicated Contract Carriage. A third party contractual service that dedicates vehicles and drivers
to a single customer for its exclusive use, usually done in a closed loop or fixed route situation.
Distribution Center - Facility where goods are handled (e.g. consolidated, packaged, etc.) and stored
only as long as necessary before being distributed. (Also known as a warehouse.)
Dock Height - A van or trailer with the floor at the same height as a loading/unloading dock, typically 48"
to 54" from the ground.
DOT - Department of Transportation - a Federal agency responsible for regulating federally funded
highways.
Fleet Mix - Number and type of units that comprise a fleet of vehicles.
GVW - Gross Vehicle Weight. The total maximum weight that a power unit can carry; generally only used
when speaking of a straight truck or tractor without a trailer (sometimes referred to as Gross Vehicle
Weight Rating or GVWR).
Harmonized Tariff Code - A code to numerically describe all articles in international trade managed by
the World Customs Organization. This code is used by countries to determine duties and taxes for
shipping across international borders.
ICC - Interstate Commerce Commission
Intermodal - Transporting freight by using two or more transportation modes. An example would be
freight in containers, which might first be taken to a port by truck, transported by ship, then carried by
rail, and finally be transferred back to a truck for delivery.
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Interstate Operation - Movement of a vehicle from one point in one state to another point in another
state (between states), regardless of route traveled.
Intra-state Operations - Movement of a vehicle from one point to another within the same state,
regardless of route traveled.
LTL - Less-than-Truckload - Occurs when small shipments of freight by various consignees are
consolidated and transported utilizing a network of terminals and relay points.
Milk Run - A pick-up route with multiple stops.
N.M.F.C. (National Motor Freight Classification) - A tariff that contains descriptions and classifications
of commodities and rules for domestic movement by motor carriers in the U.S.
Payload - Weight of cargo or load to be transported by a vehicle.
Peddle Route - A delivery route with multiple stops.
Permit - Document issued verifying some form of tax (road, mileage, etc.) has been paid on the vehicle;
Cab card and/or sticker issued verifying some form of tax (road, mileage, etc.) has been paid on that
truck.
Registration - Legal document issued by a state verifying license fees have been paid on an individual
vehicle.
Second Structure Tax - Taxes on fuel usage and reporting. Compare to first and third structure taxes
which cover licensing and operation of the vehicle respectively.
Third Structure Taxes - A tax on vehicle operation in addition to licensing and fuel tax (first and second
structure taxes respectively).
TL - Truckload - Movement of full truckloads of freight directly from the point of origin to its destination.
TRALA - Truck Rental & Leasing Association
Transportation Management System (TMS) - System used to optimally plan freight movements, do
freight rating and shopping across all modes, select the appropriate route and carrier, tender and
provide visibility to shipments.
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Trip Record - Document, required by law, to record miles run and fuel purchased in each state in which
that the vehicle has traveled.
Transportation Planning and Scheduling - Specifies how, when and where to transport goods.
Transportation planning and scheduling applications may provide weight/size restrictions, merge-intransit, continuous move, mode or carrier selection, and less than truckload (LTL)/truckload (TL)
planning functionality.
Vehicle
Air Ride - Suspension system used on tractors and trailers that replace metal springs with air filled bags.
Valves control the pressure in the air bags which result is a smoother, jar-free ride, used to protect
delicate cargo.
Bobtail - A straight truck (non-tractor); also, a tractor that is not pulling a trailer.
Body - A cargo-carrying component separately installed on a cab and chassis directly behind the cab.
Box (van body) - Same as “body.”
Cab/Chassis - The component of a complete vehicle unit that contains the driver/passenger
compartment, engine compartment, frame, suspension, wheels, and all mechanical equipment.
Cabover - A truck or tractor cab that sits over the engine compartment. This is in contrast to a
conventional cab wherein the driver compartment is behind the engine.
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COFC - Container on a Flat Car
Commercial Vehicle - Any vehicle operated for the transportation of property, in the course of any
commercial or industrial enterprise.
Conventional - Any vehicle (straight truck or tractor) built so that the engine is in front of the driver (as
opposed to underneath). This is also called a “long nose.”
Converter Dolly – The unit that attaches two pups together by attaching to the pintle hook on the front
trailer and the kingpin on the following trailer.
Cubed Out - A term that refers to the percentage of a vehicle's cubic hauling capacity that is utilized. If a
particular vehicle is 100% "cubed out," it has no additional space in which to carry freight.
Diesel Engine - An engine in which the fuel charge is ignited by compression of the fuel, rather than by a
spark: the engine burns diesel fuel, which is similar to home heating oil.
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Drop Deck Trailer - A type of flatbed trailer that has two or more decks.
Dual Wheels - Two wheels on the same side of the same axle.
Fifth Wheel - A sliding plate mounted on the rear frame of a tractor (with a slot for the trailer king pin
and a locking device) that supports and pulls the trailer behind the tractor.
Flatbed - A trailer or truck body with no sides or top, which can be fitted with removable stake sides.
Used for hauling lumber, machinery or other cargo not affected by weather.
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Hubodometer - A meter attached to the axle of a trailer that is like an odometer on a truck. It registers
mileage on the trailer.
Kingpin - A large steel pin, welded underneath the front of a trailer that fits into the fifth wheel of a
tractor. It totally supports the front of the trailer on top of the tractor's rear wheels and allows the
tractor to change direction.
Landing Gear - Set of two legs, near the front of a trailer that swing down to give support when the
trailer is standing alone.
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Liftgate - Mechanical device attached to the rear of a vehicle with a platform (usually operated by
hydraulic pressure) used to raise and lower cargo between the ground and the floor of the vehicle. The
typical liftgate capacity is 2500 lbs.
Light Duty Vehicle - Gas or diesel powered vehicles 26,000 GVW and under.
Model Number - Manufacturers’ designation of a particular type of vehicle. Can be used to distinguish
various types of vehicles, or various load capacities.
Odometer - Meter that measures miles traveled, located in the instrument panel in the truck cab.
Parcel Van - Unit comprised of a “cutaway” cab and chassis (a vehicle normally designed to have a cab
and body in one piece that is built with only the cab) with a separate body mounted behind and
attached to the cab.
Pintle Hooks – Part of the trailer that hooks to the converter dolly to pull another trailer.
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Power Unit - Vehicle supplying the power (tractor) to move the load.
Pup - A small trailer usually attached to the back of another trailer.
Ramp - Walkway, used in loading a truck, which extends from the rear of the body floor to the ground.
When not in use, the ramp is stored under the truck body in a channel that allows it to slide in and out.
Reefer - Trailer or body with insulated sides, floor and ceiling, and equipped with a refrigeration unit for
internal cooling. Used for cargo that must be kept at a specific temperature. The refrigeration unit itself
can be referred to as a “reefer unit.”
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Rig - A tractor-trailer combination. Also called an eighteen-wheeler.
Roll-up door - Rear door of a body or trailer built from horizontal panels, which are hinged to each other
and raised or lowered in channels at each side. Similar to a home garage door.
RPM - Revolutions per Mile - relating to wheels, tires, speedometer cables.
Sand Shoe - Flat plate on the bottom of the trailer landing gear to give support to the trailer when not
hooked to the tractor.
Semi (Semi-Trailer) - A trailer that is supported by its own wheels at the rear, and by the fifth wheel of
the tractor at the front. Sometimes the entire tractor-trailer combination is referred to as a “semi”
(pronounced sem-eye).
Single Axle - Tractor with one drive axle (the axle behind the driver is called the drive axle).
Sleeper - A sleeping compartment for the driver integrated with or attached directly behind the cab of a
tractor. Also refers to a tractor with a sleeping compartment.
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Sliding Fifth Wheel - Fifth wheel mounted to a mechanism that allows it to be moved back and forth for
the purpose of adjusting the distribution of weight on the tractor's axles. Also provides the capability to
vary vehicle combination lengths.
Sliding Tandem (Slider) - Mechanism that allows a tandem axle suspension to be moved back and forth
at the rear of a semi trailer, for the purpose of adjusting the distribution of weight between the axles
and fifth wheel.
Stake Truck - A flatbed truck (or trailer) with stakes and railings along and in the rear to secure cargo.
Straight Truck - A van, stake, flatbed or reefer truck without the ability to pull a trailer (sometimes called
a bobtail).
Swing Door Trailer – A trailer with doors that swing to the sides rather than roll up. Allows more room
for taller freight to load.
Tandem Axle - Two rear axles – can refer to a tractor, trailer, or straight truck.
Tie Down Rings - Rings inside a van that is used to secure cargo.
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Tilt Cab - A truck cab that tilts forward, allowing access to the engine directly underneath.
Tractor - Power unit including a cab and chassis with a fifth wheel on the rear frame; used to pull a
trailer.
Trailer - Vehicle towed behind a power unit. Most trailers have one or two axles at the rear. A cargo
vehicle that is pulled by a tractor; it can be flat or stake bed, dry, reefer or electronics van.
Unit - A vehicle (truck, tractor or trailer)
Van - Any truck or trailer with an enclosed body, the body itself, or a truck with an integral body and
cab.
Wheel Base - Distance, usually expressed in inches, from the centerline of the front wheels to the
centerline of the rear wheels.
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