common shipping terms
Freight Forwarding Glossary for Shipping Industry Terms
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Freight Forwarding in Canada: What You Need to Know
Navigating the world of freight forwarding can be challenging, especially in a country like Canada with its unique logistical needs. Understanding key terms and services can help optimize your shipping processes, reduce costs, and ensure smooth customs clearance. Below, we’ll break down everything from freight rates to specialized services like transloading, warehousing, and customs brokerage.
1. Understanding Freight Rates
Freight rates can vary significantly based on the mode of transport, distance, and cargo size. For example, shipping a Full Container Load (FCL) can be more cost-effective for large shipments, while Less than Container Load (LCL) might be better for smaller quantities. Comparing rates across different providers helps find the most economical option. Don’t just look at the price; also consider transit times, service quality, and additional fees such as customs duties and handling charges.
2. The Importance of Customs Brokerage
Customs brokerage is an essential part of international freight forwarding, especially when importing goods into Canada. A customs broker ensures your shipment complies with all regulations, from tariffs to import permits. This service includes handling customs documentation and calculating customs duties, which can help avoid delays and penalties. When choosing a customs broker, look for experience in your specific industry and familiarity with Canadian import/export regulations.
3. Transloading and Warehousing Solutions
When it comes to managing freight logistics, transloading and warehousing are often overlooked but vital components. Transloading involves transferring cargo from one mode of transportation to another, such as from rail to truck, to optimize delivery routes. It can be especially useful in Canada due to the country’s large land area and varied terrain.
Warehousing offers storage solutions and can serve as a distribution hub, making it easier to manage inventory and meet customer demands quickly. Whether you need short-term storage or a long-term distribution center, selecting a warehouse with appropriate facilities for your goods is crucial. Some warehousing services offer temperature-controlled storage, ideal for products that require refrigeration.
4. How to Compare Freight Forwarding Companies
Choosing the right freight forwarder can make or break your logistics strategy. Start by researching companies that specialize in your industry or region. Reviews and company ratings can provide insights into customer satisfaction. Look for companies that offer comprehensive services, including customs brokerage, freight rate comparisons, and specialized handling for delicate or hazardous materials. Remember, not all freight forwarding companies are created equal, and selecting one that understands Canadian logistics can streamline your operations.
5. Freight Tracking and Delivery Times
One of the most common concerns in logistics is knowing where your shipment is and when it will arrive. Using shipment tracking tools can provide real-time updates on your cargo’s location, allowing for better planning and communication. Keep in mind that factors like customs clearance, weather, and transport mode (air, ocean, or road) can impact delivery times.
6. Specialized Services: Temperature-Controlled and Hazardous Freight
Not all freight is created equal. For shipments that require special handling, such as temperature-controlled or hazardous materials, it’s essential to choose a provider with expertise in these areas. Temperature-controlled shipping, also known as refrigerated shipping, is necessary for perishable goods, pharmaceuticals, and some chemicals. Hazardous materials, on the other hand, must comply with specific regulations for safe transport. Make sure the freight forwarder you choose is certified to handle these specialized needs.
7. Optimizing Freight Costs: FCL vs. LCL
Deciding between FCL (Full Container Load) and LCL (Less than Container Load) can significantly impact your freight costs. FCL is typically cheaper per unit when shipping large quantities, as you’re renting the entire container. LCL, while more expensive per unit, is suitable for smaller shipments where sharing container space with other cargo is more practical. Understanding these options helps you make informed decisions that balance cost and delivery time.
8. Warehousing Solutions for Efficient Inventory Management
Beyond storage, warehousing can enhance logistics efficiency. Whether for cross-docking (moving goods directly from receiving to shipping) or storing seasonal inventory, a well-located warehouse can reduce transportation costs and improve delivery times. Warehouses offering value-added services like packaging, labeling, or kitting (assembling products) can further streamline your supply chain.
9. The Role of Customs Documentation in Shipping
Proper customs documentation is critical to avoid shipment delays and fines. Every international shipment requires paperwork like commercial invoices, packing lists, and certificates of origin. Ensuring your documents are accurate and comply with Canadian customs regulations can save time and money.
10. Tracking Tools: Real-Time Visibility into Your Supply Chain
Advanced tracking tools provide real-time updates on shipment status, helping you react quickly to any delays. Many freight forwarders offer online portals where customers can view their cargo’s journey from origin to destination, giving them peace of mind and better control over their supply chain.
Conclusion
Freight forwarding in Canada involves more than just moving goods from point A to point B. It’s about managing a complex network of logistics services, from understanding freight rates and choosing the right shipment mode (FCL vs. LCL), to ensuring compliance with customs requirements and leveraging warehousing solutions. By focusing on these aspects, businesses can optimize their shipping processes, minimize costs, and deliver goods efficiently.
Make sure you’re working with freight forwarders who not only offer competitive freight rates but also excel in customs brokerage, warehousing, and handling specialized cargo. This will ensure your supply chain runs smoothly and keeps your business moving forward.Welcome to the world of shipping and logistics, where the language is a labyrinth and the jargon a secret handshake. For many, the maze of freight cargo terms is daunting, even for seasoned pros. But fear not; we’re here to illuminate the path.
In this comprehensive Freight Cargo Glossary, we’re not just listing words; we’re breaking down barriers. Whether you’re a budding entrepreneur, a logistics enthusiast, or a seasoned veteran, this glossary is your ultimate guide. It’s designed to clear the fog, offering straightforward explanations of the key terms that drive the global freight cargo scene.
Imagine you’re delving into the fine points of containerization, the types of cargo vessels, or the legal intricacies of international trade agreements. This glossary doesn’t just scratch the surface; it dives deep, exploring concepts like freight rates, customs clearance, warehousing, and supply chain management. These are the terms that keep goods flowing across borders and oceans.
Our mission? To empower you with knowledge. Armed with the right vocabulary, you can navigate the complexities of sea freight, air freight, road transport, or any combination thereof. This glossary simplifies the learning curve, ensuring you can engage confidently in discussions, negotiations, and transactions.
So, whether you’re a shipper, a carrier, a freight forwarder, or just someone fascinated by global trade mechanics, dive in. The Freight Cargo Glossary is your key to understanding the language that powers the movement of goods worldwide. Equip yourself with the knowledge to master the industry’s terminology and embark on your journey with confidence.
Author, Founder & Chief Executive Officer of Paige Logistics Ltd. → Experienced operations leader with a demonstrated history of working in the Freight Shipping, Trucking and the Railroad Industry.
- BILL OF LADING (BOL OR B/L)
A bill of lading is a binding contract that serves three main purposes: a receipt for the cargo delivered to the transportation provider for shipment; a definition or description of the goods; and evidence of title to the relative cargo goods, if “negotiable”. See our page Documents to Download and download an easy to edit Bill of Lading and save as in PDF.
- COMMODITY
Any goods that are to be shipped.
- CONSIGNEE
The party which receives the cargo goods in a freight shipment. Sometimes referred to as the receiver.
- DETENTION
The penalty fee for delaying the carrier’s equipment beyond the allotted time. Typical allotted time is 2 hours for loading and 2 hours for unloading a full truckload.
- FREIGHT
Any product being transported.
- FREIGHT BROKER, 3PL ( 3RD PARTY LOGISTICS COMPANY)
A logistics broker is an independent contractor paid to arrange freight transportation. Unlike asset-based carriers, freight brokers have much more available capacity since they are not restricted to a certain set of available assets.
- FREIGHT BROKER, 3PL ( 3RD PARTY LOGISTICS COMPANY)
A logistics broker is an independent contractor paid to arrange freight transportation. Unlike asset-based carriers, freight brokers have much more available capacity since they are not restricted to a certain set of available assets.
- LIFTGATE/ POWER TAILGATE (PTG)
A liftgate is a mechanical device attached to the back of a truck so that a heavy object can be lifted to or from the ground. PTG Transport, in the context of logistics and transportation, often refers to a service that specializes in providing Power Tailgate (PTG) solutions.
A Power Tailgate, also known as a lift gate, is a hydraulic or electric platform mounted at the rear of a truck or a van. PTG Transport, therefore, signifies a transportation service equipped with vehicles featuring this specialized hydraulic lifting mechanism. PTG Delivery, in this context, pertains to the process of unloading or loading goods using these power lift gates.
This technology is particularly useful when handling heavy or bulky items that cannot be easily lifted manually. PTG Transport and Delivery services are crucial in ensuring the safe and efficient handling of goods, especially in scenarios where there are no loading docks or for deliveries to locations without heavy lifting equipment.
These services streamline the logistics process, making it more accessible and secure for various types of cargo.
- PALLET JACK
A pallet jack is a tool used to lift and move pallets.
- SHIPPER
- TONU
An acronym standing for, “Truck Ordered, Not used.” This fee is a cancellation charge for ordering a truck and then canceling the order.
- LOW BOY / DOUBLE DROP/ RGN (Removable Goose Neck)
Unlike a standard flatbed trailer, this kind of trailer can carry taller cargo that would normally violate height restrictions on another trailer.
Thanks to the lowboy trailer, abnormally high cargo can still be transported without having to find special routes.
- STEP DECK