Common Carriers Key Terms

Learn to speak the language of common carriers

If your bottom line takes into account shipping costs, it's worth learning as much as possible about common carriers. It might be more cost efficient to ship your goods by air rather than ground, or vice versa, but unless you understand the key terms often used by common carriers, it can be tricky finding the best price and the best service for your company.

By taking the time to learn the jargon of common carriers, you can implement the terms into your own shipping process. After reading through the frequently used common carriers key terms, you'll know how to save time by consulting a load board and whether to hire a freight broker to handle the legwork for you.

 

Logistics

In its broadest sense, logistics refers to the movement of materials, services, information or people. Often, shipping companies are described as logistics companies because they move goods from the supplier to the consumer.
Try: Read through logistics case studies at the Penske website. Learn about current issues in logistics at Logistics Management.

Freight carrier

Freight carrier is the general term for trucks, planes and ships used to transport materials. Unlike logistics, which can refer to the movement of people and information, freight carriers are used specifically for shipping.
Try: Browse through the various types of freight carriers at UPS. Additional information about air and truck freight carriers can be found at FreightBrokers.com.

Freight brokers

Freight brokers work as the middlemen between the business that needs to ship goods and the logistics company. Freight brokers shop around for the best quotes and find the logistics company that is best suited for the manufacturer's budget and shipping needs.
Try: Read an article by Entrepreneur about freight brokerage businesses. A1 Freight Broker Training offers a detailed job description of a freight broker.

Hazardous materials

Hazardous materials include explosives, radioactive material, flammable and nonflammable gas, oxidizers and corrosive materials. The shipping of hazardous materials is strictly regulated, and common carriers may impose their own guidelines in addition to governmental regulations.
Try: FedEx offers a guide for shipping hazardous materials that includes information on restrictions, packaging and documentation. To learn more about transporting hazardous materials, visit the Harvard College website.

Load boards

Load boards help companies find available common carriers for shipping, as well as help common carriers fill their loads to capacity. Common carriers post a listing when they have empty or unfilled equipment, allowing companies to search for available freight carriers in the area.
Try: Learn more about how a load board works at GetLoaded.com. Find explanations for how to use load board freight searches at Internet Truckstop.

Safety ratings

Safety ratings for common carriers take into account the number of crashes the company has been involved in as well as how the company performs in safety inspections. Safety ratings are available by state as well as by company.
Try: See the Motor Carrier Safety Status Measurement System to see how safety ratings are assigned by state. To learn more about safety ratings, as well as view common carrier company records, visit the Federal Motor Carrier Safety Administration.

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