AIR FREIGHT
Notify – is the name and address details of the person who should be notified of the arrival of the cargo. Depending on the bill of lading that is issued this could be the actual buyer or receiver of the goods, clearing and forwarding agent or the trader.
OCEAN FREIGHT
A freight carrier is the company or person who directly handles your shipment. If you are shipping Less Than Truckload (LTL) or international freight, several carriers may handle and transfer your shipment. A freight forwarder is a 3PL that handles your shipment through one or more modalities of freight carriage. A freight forwarder can also handle terminal handling, export crating, and cargo insuranceaspects of a shipment. A consignee is the person or company to whom the shipment is addressed as the receiver. The consignee’s name will appear on truck or ocean bills of lading. A shipper is NOT a freight company. Rather, a shipper is the sender of the shipment. Most often, it is the seller of the goods, but this is not always the case. Sometimes the shipper is the same party as the consignee. This occurs in intra-party shipments, for example between branches of the same company. The shipper’s name will appear on the bill of lading as the “From” party. A notify party is the company or person listed on the bill of lading that has authority to work with the shipment, who is neither the shipper nor the consignee. The notify party is many times the customs broker. Being on the bill of lading enables a customs broker to deal with the freight carrier on behalf of the consignee. Notify parties can arrange terminal handling and inland delivery, as well. The cargo description is the field in a bill of lading that succinctly and accurately states what the shipment is. The cargo description can list one or many commodities. This list should reflect with fidelity the contents of the shipment as listed in the packing list and the commercial invoice. The other fields in a bill of lading are the bill of lading number, the vessel and voyage information, the port parings (in international shipments), weights and dimensions, and container number (for ocean shipments) or PRO-number (for truck shipments).
Transportation facility with one or more of the following roles:
- System access: terminals are points at which freight enters and leaves the transportation system.
- Freight consolidation/distribution
- Mode transfer: freight may change from one mode to another, for example, rail to truck.
- Vehicle transfer: within a single mode, freight may transfer from one vehicle to another.
- Storage and warehousing
- Fleet maintenance
An ocean-shipping and intermodal industry term; a full container-load shipment is when a shipper contracts for the transportation of an entire container. The vast majority of intermodal and ocean freight is contracted in this manner. Historically, FCL also stands for full carload which is the primary business of all modern railroads, and is the railroad equivalent of TL trucking.
Container ships (sometimes spelled containerships) are cargo ships that carry all of their load in truck-size intermodal containers, in a technique called containerization. They are a common means of commercial intermodal freight transport and now carry most seagoing non-bulk cargo.
An individual or firm that sends freight. A freight originator.
TRUCKING FREIGHT
A freight carrier is the company or person who directly handles your shipment. If you are shipping Less Than Truckload (LTL) or international freight, several carriers may handle and transfer your shipment. A freight forwarder is a 3PL that handles your shipment through one or more modalities of freight carriage. A freight forwarder can also handle terminal handling, export crating, and cargo insuranceaspects of a shipment. A consignee is the person or company to whom the shipment is addressed as the receiver. The consignee’s name will appear on truck or ocean bills of lading. A shipper is NOT a freight company. Rather, a shipper is the sender of the shipment. Most often, it is the seller of the goods, but this is not always the case. Sometimes the shipper is the same party as the consignee. This occurs in intra-party shipments, for example between branches of the same company. The shipper’s name will appear on the bill of lading as the “From” party. A notify party is the company or person listed on the bill of lading that has authority to work with the shipment, who is neither the shipper nor the consignee. The notify party is many times the customs broker. Being on the bill of lading enables a customs broker to deal with the freight carrier on behalf of the consignee. Notify parties can arrange terminal handling and inland delivery, as well. The cargo description is the field in a bill of lading that succinctly and accurately states what the shipment is. The cargo description can list one or many commodities. This list should reflect with fidelity the contents of the shipment as listed in the packing list and the commercial invoice. The other fields in a bill of lading are the bill of lading number, the vessel and voyage information, the port parings (in international shipments), weights and dimensions, and container number (for ocean shipments) or PRO-number (for truck shipments).
A freight rate (historically and in ship chartering simply freight) is a price at which a certain cargo is delivered from one point to another. The price depends on the form of the cargo, the mode of transport (truck, ship, train, aircraft), the weight of the cargo, and the distance to the delivery destination.
Trucking by Consolidated Carriers
LTL
A trucking industry term; a less-than-truckload (LTL) shipment is when a shipper contracts for the transportation of freight that will not require an entire truck. LTL shipments are priced according to the weight of the freight, its commodity class (which generally determines its cube/weight ratio), and mileage within designated lanes. An LTL carrier specializes in LTL shipments. These companies operate a complex hub-and-spoke network with major consolidation points. The cargo’s last mile comes from these warehouse points. LTL carriers carry multiple shipments for different customers in single trucks. Combining several cargo owner’s cargoes in one truck reduces the cost each cargo owner must pay.
LTL freight goes by consolidated common carrier trucks and it almost always travels in 53 ft vans. Texas International Freight can ship LTL by any of the larger consolidated truck carriers in the lower 48 plus Canada. LTL consolidated carriers use arcane coding to classify freight. These codes determine the freight’s “tariff” rate. They are called NMFC classification numbers. LTL carriers are bound by law to charge their published rates and not less. However, InterStateCarriage Freight can offer superior rates than consolidated carriers offer the public due to our volume discount contracts. With contracts in place, we get rates not offered to the public. We pass these savings on to our customers.
Consolidated Carriers offer LTL for cargo that is picked up from airports, from container freight stations, from business docks, and in some instances, from residential addresses. The trucks used by consolidated carriers can use liftgates to offload and on-board cargo when the use of business docks are unavailable.
If you have freight that needs to move cheaply in the United States and Canada, please contact us. We can get you pricing for pallets, skids, and crates that will beat most other company’s offerings.
And any freight rate that we cannot beat, we will add our first class service to ensure a total value that is superior to any other company’s offering.
A trucking industry term; a truckload shipment is when the shipper contracts an entire truck for direct point-to-point service. Truckload shipments are priced per mile within designated lanes, regardless of the size of the shipment provided it fits (weight, cube) within the vehicle. Less expensive per unit weight shipped than LTL. A truckload carrier is a trucking company specializing in point-to-point truckload shipments.
GENERAL
A freight carrier is the company or person who directly handles your shipment. If you are shipping Less Than Truckload (LTL) or international freight, several carriers may handle and transfer your shipment. A freight forwarder is a 3PL that handles your shipment through one or more modalities of freight carriage. A freight forwarder can also handle terminal handling, export crating, and cargo insuranceaspects of a shipment. A consignee is the person or company to whom the shipment is addressed as the receiver. The consignee’s name will appear on truck or ocean bills of lading. A shipper is NOT a freight company. Rather, a shipper is the sender of the shipment. Most often, it is the seller of the goods, but this is not always the case. Sometimes the shipper is the same party as the consignee. This occurs in intra-party shipments, for example between branches of the same company. The shipper’s name will appear on the bill of lading as the “From” party. A notify party is the company or person listed on the bill of lading that has authority to work with the shipment, who is neither the shipper nor the consignee. The notify party is many times the customs broker. Being on the bill of lading enables a customs broker to deal with the freight carrier on behalf of the consignee. Notify parties can arrange terminal handling and inland delivery, as well. The cargo description is the field in a bill of lading that succinctly and accurately states what the shipment is. The cargo description can list one or many commodities. This list should reflect with fidelity the contents of the shipment as listed in the packing list and the commercial invoice. The other fields in a bill of lading are the bill of lading number, the vessel and voyage information, the port parings (in international shipments), weights and dimensions, and container number (for ocean shipments) or PRO-number (for truck shipments).
Can a shipper and consignee be the same party on a bill of lading?
The simplest answer to this question is, “yes” and “no”.
The two parties can be basically the same. This is to say that the proper pronouns can be the same. Thus, “Herculean Efforts, Inc.” can ship to its related company, “Herculean Efforts, Inc.” in another country. However, for the shipper’s address, it must be the street address in the United States where Herculean Efforts is domiciled. In the same vein, the consignee in the foreign country must list Herculean Efforts’ street address in that foreign country.
There are two instances where this sort of thing happens frequently. One way is described by our example above with Herculean Efforts, Inc. The two entities might be two international branches of the same company. Therefore, the shipper and the consignee can be the same. The other instance in which the shipper and the consignee can be the same is when the consignee comes to the United States and buys the merchandise while living or based in the United States to ship to him/herself in another country. For example, a certain Bob Mitchell comes to Texas. While this Mr. Bob Mitchell is in Texas, he finds an old Ford Pickup Truck that he knows how to fix up and make like new. (Obviously, he is a a good mechanic and connoisseur of the best things in life.) And so, he purchases the vehicle while living in the United States to ship to his mechanic shop based and domiciled in the United Kingdom. This is the other case where Bob Mitchell can be both the shipper and the consignee.
The shipper is, in strict terms, the contract party on the bill of lading. The consignee is the recipient of the goods. In the two cases outlined above, they are the same party.
When working with InterStateCarriage Freight, you can be sure that you will be taken care of not just in terms of shipping, but also in terms of being lawful. We are not just experts in moving cargo, but in making sure you remain in compliance of applicable laws and regulations.
A charge paid for carriage or transportation of goods by air, land, or sea. 2. A colloquial term for freight charge. (2) If freight is paid by the consignee (as under FOB terms) the goods become the consignee’s property when handed over to the carrier against a bill of lading.
Shipping terms are also called INCOTERMS. Incoterm is the elided word that shortens International Commercial Terms. They are 3 letter abbreviations recognized throughout the world. They tell each party concisely what is expected of them in selling and in contract negotiations. In all international transactions, shipping can be paid for and done by either the shipper or the consignee. For example, the shipper can pay for everything: from their dock to the consignee’s dock with customs clearance and duties paid on their behalf. This is called Delivered, Duty Paid (DDP). Or the shipper can do none of the shipping. Instead the buyer picks up the freight from the shipper’s factory dock. This is called ex-works (EXW). In between these two extremes, there are a number of places where the shipping can pass from one party to another. The scope can end once loaded on the carrier (FOB) or at a named place (DAT) or at a port or terminal (CFR and CPT). There are about a dozen of these shipping terms.
Basically, Incoterms indicate three things. (1) Who arranges for transport and the carrier. (2) Who pays for transport. (3) Where/when does title (ownership) of goods transfer from seller to buyer. Consequently, shipping terms tell where costs are transferred and where the risk is transferred from the shipper to the consignee. Therefore, shipping terms are NOT optional. Even when they are not stipulated or mentioned, both parties have expectations about the shipping. Ignoring the shipping terms only invites confusion at best and legal trouble at worst. Every sale, every quote, and every international contract here goods are exchanged must have Incoterms.
If you are trying to figure out the shipping terms for a contract, then call us. If you are encountering Incoterms that you do not understand, then reach out to us. There are few things that are easier to understand than Incoterms in international shipping. But there are just as few things that can hurt a business deal than Incoterms, if ignored or underappreciated.
LOGISTICS
What is a backhaul?
A backhaul, as it relates to trucking and logistics, is the return trip of a commercial truck that is transporting freight back over all or part of the same route it took to get to its current location. Both freight brokers and motor carriers rely heavily on one another when it comes to backhauls. They are also sometimes referred to as “deadheads” in the trucking industry.
How can I get backhaul rates?
Because technology improves every year, getting special backhaul rates is more difficult. Cargo gets placed more efficiently. Open space for backhauls finds cargo. The supply goes down, and the prices go up. Calling a truck company or truck broker and asking for a backhaul rate doesn’t bear fruit. If it did, no one would buy anything but backhauls.
How can I avoid paying too much for trucking?
It is counterintuitive, but only working with companies that own their own trucks costs more. The reason is that these asset based carriers must cost in the backhaul. Going to a broker means being able to avoid this cost. Brokers go to list boards on the internet to find truckers and hire them for just a specific run and nothing more. Any trucker who costs in a backhaul loses business to the truckers who do not. When a customer works only with truck owners, they have to pay these costs. Little do they know that their truck vendors get backhauls through the internet based load boards. The picky customers who don’t work with brokers end up paying more than those who pay brokers. Cutting out the middle-man, means cutting out market knowledge. Brokers are useful to people who want to pay less, not more.
What technology can I use to find backhauls?
There are a number of load boards one can use. But at the end of the day, technology doesn’t move freight. Trucks move freight. Unless your company is willing to invest in having a full time truck broker in-house, it is better to outsource this to a professional. Sorry, but when moving 40,000 lbs of freight, nope, there is NOT “an app for that.”
Shipping terms are also called INCOTERMS. Incoterm is the elided word that shortens International Commercial Terms. They are 3 letter abbreviations recognized throughout the world. They tell each party concisely what is expected of them in selling and in contract negotiations. In all international transactions, shipping can be paid for and done by either the shipper or the consignee. For example, the shipper can pay for everything: from their dock to the consignee’s dock with customs clearance and duties paid on their behalf. This is called Delivered, Duty Paid (DDP). Or the shipper can do none of the shipping. Instead the buyer picks up the freight from the shipper’s factory dock. This is called ex-works (EXW). In between these two extremes, there are a number of places where the shipping can pass from one party to another. The scope can end once loaded on the carrier (FOB) or at a named place (DAT) or at a port or terminal (CFR and CPT). There are about a dozen of these shipping terms.
Basically, Incoterms indicate three things. (1) Who arranges for transport and the carrier. (2) Who pays for transport. (3) Where/when does title (ownership) of goods transfer from seller to buyer. Consequently, shipping terms tell where costs are transferred and where the risk is transferred from the shipper to the consignee. Therefore, shipping terms are NOT optional. Even when they are not stipulated or mentioned, both parties have expectations about the shipping. Ignoring the shipping terms only invites confusion at best and legal trouble at worst. Every sale, every quote, and every international contract here goods are exchanged must have Incoterms.
If you are trying to figure out the shipping terms for a contract, then call us. If you are encountering Incoterms that you do not understand, then reach out to us. There are few things that are easier to understand than Incoterms in international shipping. But there are just as few things that can hurt a business deal than Incoterms, if ignored or underappreciated.
Shipper is the person or company who is usually the supplier or owner of commodities shipped. Also called Consignor. Carrier is a person or company that transports goods or people for any person or company and that is responsible for any possible loss of the goods during transport.
An individual or firm to whom freight is shipped. A freight receiver. Carrier. A firm that provides transportation services, typically owning and operating transportation equipment. Examples include: trucking company, railroad, airline, steamship line, parcel/express company.
An agency that receives freight from a shipper and then arranges for transportation with one or more carriers for transport to the consignee. Often used for international shipping. Will usually consolidate freight from many shippers to obtain low, large volume transportation rates from carriers (through a contract ). Often owns some pickup and delivery equipment; uses to transport freight to/from consolidation facilities. Also provide other shipping services: packaging, temporary freight storage, customs clearing.