| Freight Class Range | 50 to 500 (National Motor Freight Traffic Association (NMFTA)) |
| BOL Legal Status | Binding contract and receipt |
| FOB Variants (Domestic US) | FOB Origin, FOB Destination (Uniform Commercial Code (UCC)) |
| Common Accessorial Fees | Liftgate, detention, residential surcharge, fuel surcharge |
| LTL Weight Range (Typical) | 150–15,000 lbs (General industry practice; thresholds vary by carrier) |
Why Freight Terminology Matters
Freight contracts, carrier quotes, and shipping invoices are dense with industry-specific language. Misreading a single term—say, confusing FOB Origin with FOB Destination—can shift thousands of dollars in liability from one party to another. For operations and logistics managers, fluency in this vocabulary is not optional; it directly affects cost control, risk allocation, and vendor negotiations.
This reference covers the core terms you'll encounter across domestic US freight, from carrier agreements through to final delivery. For a broader orientation on how these terms fit into the overall shipping process, see our introduction to US freight shipping.
Bill of Lading (BOL)
A legally binding document issued by a carrier that serves as a shipment receipt and contract of carriage, detailing the goods being transported and the terms of delivery.
FOB (Free On Board)
A shipping term defining the point at which risk and ownership of goods transfers from seller to buyer. FOB Origin places risk on the buyer from the seller's dock; FOB Destination places it on the seller until delivery.
LTL (Less-than-Truckload)
A freight shipping mode where cargo from multiple shippers shares space in a single trailer, with each shipper paying only for the portion of trailer capacity used.
FTL (Full Truckload)
A freight mode in which a shipper reserves an entire trailer for their cargo, typically used for large volumes or sensitive goods requiring dedicated transport.
NMFC Class
A standardized freight classification number (50–500) assigned by the National Motor Freight Classification system that carriers use to determine LTL pricing based on density, handling, and liability factors.
Drayage
Short-haul freight movement, most commonly between a port, rail terminal, or intermodal facility and a nearby warehouse or distribution point.
Accessorial Charge
A fee added to a base freight rate for services outside standard pickup and delivery, such as liftgate use, residential delivery, or driver detention.
Detention
A carrier charge billed when a driver is held at a shipper's or consignee's location beyond the allotted free time for loading or unloading.
Core Shipment and Carrier Terms
The following concepts appear in nearly every domestic freight transaction. Understanding them gives you a reliable foundation for reading quotes, contracts, and bills of lading.
| Freight Class Range | 50 to 500 (National Motor Freight Traffic Association (NMFTA)) |
| BOL Legal Status | Binding contract and receipt |
| FOB Variants (Domestic US) | FOB Origin, FOB Destination (Uniform Commercial Code (UCC)) |
| Common Accessorial Fees | Liftgate, detention, residential surcharge, fuel surcharge |
| LTL Weight Range (Typical) | 150–15,000 lbs (General industry practice; thresholds vary by carrier) |
Bill of Lading (BOL)
A Bill of Lading is both a shipping contract and a receipt of goods. It identifies the shipper, consignee, origin, destination, and commodity details. The carrier signs it at pickup; the consignee signs it at delivery. Any discrepancies between the BOL and actual cargo condition should be noted at the time of receipt.
LTL and FTL
Less-than-Truckload (LTL) combines cargo from multiple shippers into one trailer. Full Truckload (FTL) dedicates an entire trailer to a single shipment. The right choice depends on freight volume, transit time requirements, and handling sensitivity. Our detailed LTL vs. FTL comparison walks through the decision framework.
NMFC Classification
The National Motor Freight Classification (NMFC) system assigns a freight class—ranging from 50 to 500—based on density, stowability, handling, and liability. Higher classes generally attract higher per-hundredweight rates. Accurate classification matters: misclassification triggers carrier invoice corrections called reclassifications. For a full breakdown, see our guide on NMFC codes and freight rates.
Ownership, Risk, and Cost Allocation
FOB Terms
Free On Board (FOB) terms define where title and risk transfer from seller to buyer. Under FOB Origin, the buyer assumes ownership—and therefore risk—once goods leave the seller's dock. Under FOB Destination, the seller retains risk until the shipment arrives at the buyer's location. These terms also determine who selects and pays the carrier.
Note that FOB is a domestic US term. International shipments use a separate framework called Incoterms. See our Incoterms reference guide for those definitions.
Freight Collect vs. Freight Prepaid
Freight Prepaid means the shipper pays carrier charges before dispatch. Freight Collect means the consignee pays upon delivery. A third option, Third-Party Billing, routes charges to a party other than shipper or receiver—common in managed logistics arrangements.
FOB Terms and Insurance Implications
Because FOB terms determine who holds risk during transit, they directly influence which party should carry cargo insurance. Under FOB Origin, the buyer bears transit risk and should ensure coverage is in place from the point of pickup. Under FOB Destination, the seller retains that exposure. For an overview of how cargo liability and carrier coverage interact, see our freight and trucking insurance primer. Always consult a licensed insurance professional for guidance specific to your situation.
Accessorial Charges
Accessorial fees are add-on charges for services beyond standard pickup and delivery. Common examples include liftgate service, inside delivery, residential delivery, detention (waiting time at a dock), and fuel surcharges. These line items can significantly increase a freight invoice total. For a complete walkthrough of how they appear on invoices, see The Freight Bill Explained.
Drayage
Drayage refers to short-distance freight movement—typically from a port or rail terminal to a nearby warehouse or distribution center. It is a critical link in intermodal supply chains and a frequent source of cost variability due to port congestion and chassis availability constraints.
This article provides general educational information about freight and logistics terminology. It is not legal, financial, or operational advice tailored to your specific business circumstances. Consult qualified logistics professionals, legal counsel, or licensed freight advisers for decisions specific to your operations.