Acronyms reign supreme in the transportation industry. Why? Simply put, there are just far too many terms to recall, therefore acronyms are a must! For those of you just entering the trucking field, or who need a little refresher, we’ve compiled a list of some of the must know shipping acronyms in the industry.
FAK: Freight of All Kinds
The process of combining different products into one load for simplification of rating and pricing.
NMFC: National Motor Freight Classification
Moreover, the NMFC is the class your freight is categorized in as defined by the National Motor Freight Traffic Association (NMFTA). This is especially important to shippers as the freight class determines the shipping charges. It should be noted that there are 18 freight classes ranging from class 50 (least expensive) to class 500 (most expensive).
BOL: Bill of Lading
Apart from this, the Bill of Lading is the legally required paperwork that provides the driver and the trucking company with all the necessary information they need to process the shipment. Additionally, the BOL includes the shipping address, packaging type, freight class, description of goods, and more. Essentially it functions as a billing receipt.
EDI: Electronic Data Interchange
Furthermore, EDI or Electronic Data Interchange is defined as the business-to-business interconnection of computers for the instant exchange of documents. As it pertains to the shipping industry, this includes the bills of lading, invoices, as well as tracking information.
FOB: Free on Board
FOB is a term used to specify when liability and ownership of goods is transferred from a seller to a buyer. Also, it establishes which party is responsible for the payment of the freight charges.
GVW: Gross Vehicle Weight
Lastly, GVW is the total weight of the carrier and its cargo. However, GVW is used more commonly when discussing Gross Vehicle Weight Rating (GVWR), which is the maximum operating weight of a vehicle as listed by the manufacturer.
In brief, these are just some of the many shipping acronyms commonly used in the transportation industry.
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