Freight and Logistics Terminology Business Owners Should Know

Many business owners underestimate the expense and complexity of their shipping and delivery needs. Making mistakes on your freight shipping and logistics can be costly, so it pays to spend time learning the basics so that you can better manage your needs. As you begin to make arrangements for shipping and deliveries, here is a look at some of the terminology that you need to know.

Consolidation

Consolidation can be an important cost-saving measure for shipping. If your freight is less than a truckload, consolidation allows you to combine multiple shipments in order to save money on freight costs. Consolidated shipments go onto a single trailer, which can make multiple stops within the same vicinity to deliver goods. Since a freight trailer typically costs the same whether you use a quarter of it or the full space, consolidating shipments can represent significant savings. It also helps to reduce damage during shipping, though it is more logistically complex in the planning stage than individual shipments.

Bill of Lading

Bill of lading documents are extremely important in freight shipping. A bill of lading, or BOL, is a contract that specifies what is being shipped, who is receiving the shipment, and all of the other details of the shipping agreement. A BOL is made between the shipper and the carrier or an agent of the carrier. It is legally binding and must state if any items in the shipment are considered to be hazardous.

FTL and LTL

Full truckload, or FTL, and less-than truckload, or LTL, are terms used to describe how much room in a trailer that a shipment will take up. This is used to determine pricing and if your shipments can be consolidated to reduce costs.

 

Navigating the world of freight shipping and delivery can be challenging, but Xcel Delivery Services is here to simplify the process for you. Let us help you get your shipments where they need to go affordably and efficiently. Contact our delivery team in Phoenix today by calling (602) 368-1300.

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