Transportation Broker Education and Training Key Terms

Understanding transportation broker terminology is key to proper career training and education
By Virginia Franco, Freelance Writer The transportation industry is filled with much industry-specific jargon. As a transportation broker, it will be necessary to have a command of lingo that exists within the world of air cargo, ocean transport, rail and truck transportation, as well as intermodal, which uses a variety of transportation methods to get products from point A to point B.  Understanding industry-specific key terms are an essential part of transportation broker education and training.
 

Automated Commercial Environment

More commonly known as A.C.E., the automated commercial environment is the system for processing commercial trade introduced by the CBP (Customs and Border Control). The purpose of A.C.E. is to tighten up security at our borders by requiring that every carrier submit an electronic manifest prior to entering or exiting the country.
Try: LoadedTruck has an FAQ document explaining all the nuances of A.C.E.

Bonded warehouse

A bonded warehouse is where products with unpaid duties get stored. Goods at bonded warehouses get stored under bond and are jointly owned by the importer, its agent and U.S. Customs officials. A Customs bonded warehouse can either be managed by a governmental agency or by a private third party and is run much like any other warehouse. Understanding the rules and regulations around bonded warehouses is essential to transportation broker training and education.
Try: The law firm Fuerst Humphrey Ittleman discusses bonded warehouse applications as well as the classes of bonded warehouses recognized by the U.S. government.

Bill of Lading

The term "bill of lading" often is written in transportation documents as B/L or BOL. It is an itemized list of goods or products that are contained in a shipment. A bill of lading serves as a contractual agreement and as a receipt to the carrier for shipment.
Try: Duhaime is the website of Attorney Lloyd Duhaime. Read his article explaining bill of lading and its legal ramifications.

Factoring

You will learn to understand the challenges of cash flow in this industry as part of your transportation broker education and training. Waiting to get paid is challenging when there are bills and salaries to pay. Freight factoring provides you with money up front at a low interest rate so you have cash on hand.
Try: Commercial Capital, a factoring company, includes an article about freight factoring on its website.

Freight bill auditing

Freight bill auditing can save you as a transportation broker as well as your client money when done correctly. Freight bill auditors are good to have on hand, as they are able to review all bills of lading and freight bills to make sure you are not overpaying.
Try: Software Solutions Unlimited features two articles in PDF format that deal directly with the subject of freight bill auditing.

International freight forwarder

An international freight forwarder helps the transportation broker and exporter move goods out of the country. Freight forwarders are familiar with import rules and regulations and often specialize in a particular global region.
Try: Informed Trade International does an excellent job of explaining the role of an international freight forwarder.