Freight Broker Terminology You Need To Know

Top Insights

Bonded Carrier: A carrier authorized by customs to transport uncleared goods under a customs bond, ensuring security until official release.
Connecting Carrier: A secondary carrier used when a shipment must switch providers mid‑route to complete delivery.
Bill of Lading (BOL): The legal receipt and contract between shipper and carrier detailing cargo type, weight, origin, and destination.
Deadhead: When a truck travels empty, either en route to pick up freight or after delivering a load.
Backhaul: Freight carried on a truck’s return trip to minimize empty miles and boost carrier earnings.
Intermodal vs. Multimodal Transportation:
- Intermodal: Multiple carriers/modes under separate contracts.
- Multimodal: Single contract covers multiple modes with one provider.
Electronic Data Interchange (EDI): Computer‑to‑computer exchange of shipping documents among logistics partners.

Every industry has its lingo, and freight brokerage is no different. If you’re new to the world of logistics, you’ll notice terms like “load board,” “bill of lading,” or “blind shipment” being thrown around in conversations.

In this guide, we’ll highlight the vital freight broker terms so you can become familiar with them and navigate the freight industry confidently.

Key Players & Roles

Air Freight Forwarders

Companies that specialize in shipping goods by air. They coordinate air cargo logistics, book space with airlines, and ensure shipments meet international aviation security and customs standards.

Bonded Carrier

A transportation company authorized by customs to move goods under a customs bond. They can legally transport shipments that customs haven’t cleared. However, they have to meet strict regulatory requirements and ensure the goods remain secure and sealed until officially released by customs.

Connecting Carrier

A connecting carrier is a second carrier used when a shipment switches from one transport provider to another. This happens when a single carrier doesn’t serve the entire route and another provider has to complete the delivery.

LTL Carriers

These are carriers that specialize in moving less-than-truckload shipments. They combine freight from multiple shippers into a single truck to maximize space and reduce costs.

Shipping Documentation

Air Waybill

A non-negotiable shipping receipt that airlines issue to confirm they’ve accepted cargo for air transport. It includes details like flight information and cargo description.

Bill of Lading

A legal document between the shipper and the carrier that lists cargo details like type, weight, origin, and destination. The BOL must accompany the freight shipment and is crucial for resolving disputes.

Blind Shipment

A shipment where one party is unaware of the other party’s identity. The BOL for this shipment is modified to hide certain information.

Delivery Receipt

A signed document confirming that the shipment reached its destination and that the consignee accepted it in good condition.

Freight Bill

An invoice from the contracted motor carrier to the broker or shipper detailing the transportation charges for a shipment. It includes the freight rate for services provided, fuel surcharges, and accessorial fees.

Logistics Locations & Operations

Backhaul

The return leg of a trip when a carrier transports freight back to their original location. Brokers often help carriers find backhaul loads to reduce empty miles and earn extra money.

Break Bulk Terminal

A facility where large cargo arrives and is unloaded, sorted, and redistributed into smaller units for final delivery to various destinations.

Deadhead

When a truck travels without a load, either on the way to pick up freight or after making a delivery. Brokers try to minimize deadhead miles by matching carriers with nearby freight.

Destination Terminal

The final facility where goods arrive before being delivered to their final destination and end customer.

Distribution Center

A warehouse that stores goods before they are distributed to retailers, customers, or other locations in the supply chain.

Inbound Logistics

The process of transporting, receiving, and storing goods or raw materials coming into a business from suppliers.

Outbound Logistics

Outbound logistics involves shipping finished goods from a company to its customers.

Outsourced Logistics Services

These third-party services manage logistics operations like warehousing, shipping, order fulfillment, and inventory management.

Rail Terminal

A facility for transferring freight between trains and trucks. In intermodal transport services, this is where containers are loaded onto or off of railcars.

Transportation Modes And Equipment

Combination Vehicle

A tractor that is attached to multiple trailers. Trucking companies commonly use it to transport long-haul freight.

Container Load

The amount and type of freight that can be packed into a standard shipping container (typically 20 or 40 feet long).

Container Ships

Large ocean vessels that transport cargo containers across international waters.

Intermodal Transportation

This involves using multiple transportation modes (e.g., truck, rail, ship) to move shipments under separate contracts with each carrier. This form of freight transportation reduces costs and improves efficiency.

Multimodal Transportation

This also uses various transportation modes under a single contract with one logistics provider. That provider handles the entire shipment, even if different carriers or modes are involved.

Technology & Systems

Automated Commercial Environment

The automated commercial environment is the U.S. Customs and Border Protection’s electronic portal for filing imports and exports. This commercial trade processing system facilitates legitimate trade and makes it easier to process shipping documents.

Electronic Data Interchange

EDI is the computer-to-computer exchange of business documents between companies. Players in the transportation industry use it to share shipment details.

Freight Broker Software

These digital tools help brokers manage their operations efficiently. They include features like invoicing, carrier management, and load tracking with global positioning systems. Load boards and transportation management systems are examples of freight broker software.

Warehouse Management System

Software that helps businesses control and manage warehouse operations. It tracks inventory levels, manages storage locations, and handles order processing.

Compliance & Safety

Federal Hazardous Material Law

The federal hazardous material law governs the safe transportation of dangerous materials. It guides how transportation services package, handle, and document these goods.

Gross Vehicle Weight

This is the total weight of a vehicle, including its cargo, fuel, and driver. Carriers need to follow federal and state GVW limits to avoid fines and ensure safety.

National Motor Freight Classification

The national motor freight classification is a standard system that categorizes freight according to factors like density, handling, and liability. Each type of freight is assigned a classification number, which helps determine rates in LTL shipments.

Final Thoughts

Learning the language of brokering is a key step toward building a successful career in logistics. These terms will help you communicate clearly and connect better with shippers and freight carriers.

But knowing shipping industry terms is only part of the puzzle. For hands-on training, real-world strategies, and step-by-step guidance to launch your brokerage, check out the 90-Day Freight Broker Course.

Sources: