Parcel Shipping Dictionary

Accessorial charges are fees associated with services, package characteristics or conditions beyond the core transportation movement, such as liftgate service, residential delivery or special handling. In parcel shipping these are often described as surcharges. See Shipping Surcharges.

Actual weight is the scale weight of a packed shipment, including its contents and shipping materials. It differs from dimensional weight, which represents the space occupied. Carriers apply service-specific rounding and minimum billable weight rules before determining the weight used for pricing.

Additional Handling is a charge for packages with characteristics that require extra processing under a carrier’s rules. Weight, dimensions, cubic volume, packaging and shape may affect eligibility. Some categories also impose a minimum billable weight. Evaluate the handling fee, weight floor and related fuel or demand charges together when comparing packaging or contract options.

Address correction is a fee charged when a carrier must change or complete delivery information before delivering a shipment. Missing unit numbers, incorrect ZIP codes, outdated addresses and formatting errors can trigger the charge. Address validation at order entry and invoice review after shipment help prevent avoidable fees and identify corrections that may have been billed incorrectly.

Address validation checks address data against reference records before shipment. It can identify missing or inconsistent information but does not guarantee that a carrier will classify an address as commercial or avoid every correction fee. See Address Correction and Residential Surcharge.

Air freight is the movement of commercial cargo by aircraft. It is commonly used for urgent, high-value, perishable or time-sensitive goods that cannot tolerate slower ocean or surface transit. Air freight pricing depends on chargeable weight, route, capacity, fuel, handling and service requirements, so the lowest quoted rate may not represent the lowest total landed cost.

Airport-to-airport service covers transportation between the origin and destination airports. The shipper or its logistics providers arrange pickup, export processing, customs clearance and final delivery as applicable. This structure can lower the carrier's quoted transportation charge, but the full comparison should include both inland legs, brokerage, handling and the operational risk of coordinating multiple providers.

An air waybill, or AWB, is the principal transportation document for an air freight shipment. It identifies the shipper, consignee, origin, destination, goods, weight and handling instructions and serves as evidence of the contract of carriage. A master air waybill covers the airline's movement for a forwarder, while a house air waybill covers an individual customer's shipment within a consolidation. Unlike a negotiable ocean bill of lading, an air waybill is not a document of title.

A shipping audit checks charges, shipment records or operating performance against defined rules. In this dictionary, parcel invoice auditing means validating billed charges against account agreements and shipment evidence. An audit finding is a potential discrepancy until investigated; a requested refund becomes a recovery only when the credit or payment is received and reconciled. See Parcel Invoice Auditing.

An audit exception is a charge or shipment record flagged for review because it differs from an expected rule or lacks supporting data. It is a starting point for investigation, not proof that a refund is owed. Examples include an unexpected fee or an unmatched credit.

Automation in shipping uses software, data connections or equipment to perform tasks with less manual intervention. Examples include label generation, carrier selection, warehouse sortation, shipment tracking, exception management and invoice auditing. Automation can improve speed and consistency, but the underlying rules still require monitoring so that a system does not repeatedly choose a costly service, overlook a contract exception or scale an inaccurate process.

Average cost per package divides defined parcel costs by the number of packages in the same reporting period. State whether fuel, surcharges, credits and returns are included. Changes in service mix, zones or package size can move the average even if negotiated rates stay unchanged.

A base rate is the starting transportation price before separately assessed surcharges and optional service fees. It may be a published list rate or an account-specific starting rate. Confirm whether a quotation is before or after discounts, since the base rate alone does not show the amount that will appear on the invoice.

A carrier bid is a pricing and service proposal submitted in response to a shipper's request for business. It may include transportation discounts, minimum charges, surcharge concessions, volume commitments and other terms. A credible comparison rerates the same shipment history under each proposal so the shipper can see the net economic impact before selecting a carrier or changing its network.

Billable weight is the weight used to price a shipment. For many parcel services, it starts with the greater of rounded actual weight and dimensional weight, but a carrier may impose a higher minimum for certain package categories. A package can therefore be billed above both its physical weight and its calculated dimensional weight. See Minimum Billable Weight.

A billing discrepancy is a difference between an invoiced amount and the amount supported by the agreement, shipment data or applicable billing rule. Validate the underlying evidence before disputing it, then track any approved adjustment through credit reconciliation.

A bill of lading, often abbreviated BOL or B/L, is a transportation document that functions as a receipt for goods, evidence of the contract of carriage and, in some cases, a document of title. It records the parties, origin, destination, commodity, quantity, weight and handling requirements. Accurate BOL data supports correct rating, claims handling and dispute resolution, particularly for LTL and international freight.

A bonded warehouse is a customs-authorized facility where imported goods may be stored without immediate payment of duties and taxes. Duties generally become payable when the goods enter domestic commerce; goods that are re-exported may avoid those charges. Bonded storage can improve cash flow and inventory flexibility, but storage, handling, compliance and release costs should be included in the decision.

A box truck is a straight truck with an enclosed cargo body mounted on the same chassis as the cab. It is commonly used for local delivery, expedited freight, retail replenishment and shipments that are too large for parcel but do not require a full tractor-trailer. Capacity, liftgate requirements, dock access and route restrictions affect whether it is the most economical option.

Break-bulk shipping moves cargo as individual pieces, such as crates, drums, bundles or machinery, instead of loading it into a standard container. It is used for goods whose size, weight or shape makes containerization impractical. The shipper should account for specialized handling, port labor, equipment, storage and damage risk when comparing break-bulk service with container or project-cargo alternatives.

Break-bulk cargo is freight handled as individual pieces rather than in standard shipping containers, such as machinery, coils or bundled materials. See Break Bulk for the transportation method and related handling costs.

Bulk cargo is an unpackaged commodity transported in large quantities, typically in a vessel hold, railcar or tanker. Dry bulk includes products such as grain, ore and cement; liquid bulk includes oil, chemicals and similar fluids. Bulk transportation can achieve a low cost per unit, but it depends on specialized loading, storage and receiving infrastructure.

Cargo is the commercial property transported by air, ocean, road or rail. The term can include packaged goods, pallets, containers, machinery, commodities and temperature-controlled products. Cargo characteristics determine the required equipment, handling, documentation, insurance and service level, all of which affect total transportation cost and risk.

Cargo insurance protects against covered loss or physical damage to goods in transit. It is separate from carrier liability, which is limited by contract, tariff or law and may be far below the shipment's commercial value. Shippers should compare declared-value charges, standalone insurance and their actual loss profile before choosing coverage.

Carrier contract negotiation establishes or improves the pricing and operating terms governing a shipping account. It includes transportation discounts, minimum charges, dimensional-weight provisions, surcharge concessions, incentive structures, service conditions and contract protections. LJM analyzes a shipper’s actual package profile and total contract economics, supports implementation of negotiated terms and monitors performance as carrier pricing and business needs change.

A carrier contract is the agreement that governs a shipper's rates, discounts, surcharges, incentives, commitments, liability provisions and other transportation terms. The value of a contract depends on how those terms interact with the shipper's real service mix, package profile, zones and volume patterns. Rerating historical shipments and modeling expected changes provides a more dependable basis for negotiation than comparing headline discounts alone. See Carrier Contract Negotiation and Contract Compliance.

Carrier diversification allocates shipments across multiple providers to improve cost, coverage, capacity or resilience. The model must include integration and pickup costs, service performance and any effect on earned discounts or commitments with existing carriers. Adding a carrier does not automatically lower total spend.

A carrier invoice is the carrier’s billing record of transportation charges, surcharges, adjustments, credits and other applicable fees. Parcel invoice auditing compares these charges with shipment evidence and negotiated terms, while reconciliation confirms payment and recovery. See Parcel Invoice Auditing and Invoice Reconciliation.

A carrier performance scorecard tracks defined service, cost and operational measures by carrier, service or lane. Common metrics include on-time delivery, exceptions, damage, cost per package and billing accuracy. Reporting periods and exclusions should be consistent so comparisons are meaningful.

Cash in advance is a payment term requiring the buyer to pay before goods are shipped or released. It reduces the seller's credit risk but places more performance risk on the buyer. In international trade, the parties should document the payment trigger, currency, bank fees and the point at which transportation responsibility transfers.

Cash on delivery, or COD, requires payment when a shipment reaches the recipient. Depending on the service, the carrier may collect cash, a certified instrument or another approved form of payment. COD adds administrative work and risk, so the shipper should verify carrier availability, fees, remittance timing and liability before using it.

A certificate of insurance is a document showing that an insurance policy is in force and summarizing its coverage, limits and effective dates. It is evidence of coverage rather than the policy itself. Shippers should confirm that the certificate matches contractual requirements and review the underlying policy for exclusions that affect cargo, carriers or warehouse operations.

A certificate of origin states the country where goods were produced or substantially transformed. Customs authorities may use it to determine tariff treatment, eligibility under a trade agreement or compliance with import restrictions. Incorrect origin information can delay clearance and create duty or penalty exposure.

A chargeback is an amount billed back to another party because of a shipping-related cost, error or contractual responsibility. It may involve carrier adjustments, retailer compliance deductions, address corrections, returns or accessorial fees. Clear rules and supporting shipment data are necessary to determine whether the charge belongs to the shipper, customer, supplier or logistics provider.

A shipping claim is a formal request for reimbursement after a shipment is lost, damaged or, in some cases, delivered short. The claimant must meet the carrier's filing deadline and provide documentation such as the invoice, proof of value, tracking history, delivery record and damage evidence. Monitoring claim status and recovery rates helps a shipper understand the true financial effect of service failures.

Cold chain is the controlled movement and storage of temperature-sensitive products from origin through delivery. It combines qualified packaging, refrigeration, monitoring, handling procedures and contingency planning to keep products within an approved temperature range. Service cost should be evaluated alongside excursion risk, product value, regulatory requirements and the consequences of delay.

A collect shipment is billed to the consignee or recipient rather than the party tendering the goods. The carrier must accept the recipient's account and billing instructions. Shippers should verify who remains responsible if the carrier cannot collect payment or if additional charges arise after delivery.

A commercial invoice is the seller's statement of the goods in an international transaction. It normally lists the buyer and seller, product description, quantity, value, currency, country of origin, terms of sale and other customs information. Customs authorities use it to assess duties and taxes, so vague descriptions or inconsistent values can delay clearance and distort landed-cost estimates.

A common carrier offers transportation to the public subject to applicable law and terms of carriage. Legal duties and liability vary by mode and jurisdiction. The historical distinction between common and contract carriage does not, by itself, establish which rate or liability rule governs a modern shipment; review the applicable agreement and law.

To consign means to place goods in the care of a carrier or another party for transportation, sale or custody. The person or company sending the goods is the consignor, and the receiving party is the consignee. Consignment does not always transfer ownership, so shipping and commercial documents should state the parties' responsibilities clearly.

The consignee is the person or organization named to receive a shipment. Consignee information appears on transportation and customs documents and can affect delivery, billing and import responsibilities. Accurate names, addresses and account details reduce correction fees and clearance delays.

A container yard is a terminal area where loaded and empty shipping containers are received, stored and transferred. It supports movements between vessels, rail, trucks and warehouses. Dwell time, free-time rules and appointment requirements can create demurrage or detention costs if containers are not moved promptly.

Continuous optimization is the ongoing review and adjustment of shipping decisions as carrier rules, contracts and business needs change. It combines analytics with implementation and follow-through. Improvements can include packaging changes, better service selection, corrected billing or revised carrier allocation.

A contract carrier provides transportation under an agreement tailored to a customer’s requirements. Rates, service obligations, capacity and liability depend on that agreement and applicable law. Negotiated transportation is common today, and the label alone does not determine a provider’s legal status.

Contract compliance means meeting the obligations in a shipping agreement and applying its terms correctly. Invoice review can test whether rates and concessions were implemented; operational review can test whether the shipper is meeting commitments. Both affect whether negotiated value is realized.

Contract implementation is the process of putting negotiated carrier terms into effect across billing accounts, rate systems, shipping software and operating procedures. Confirming effective dates and testing early invoices helps identify pricing discrepancies before they affect large shipment volumes. See Contract Compliance.

Contract rerating recalculates a consistent set of shipments under an existing agreement, proposed terms or another pricing scenario. Apply rates, minimums, surcharges, fuel and incentive rules consistently and disclose assumptions. This separates modeled pricing effects from changes in shipment volume or mix.

Cost allocation assigns shipping expense to the business unit, location, customer, product or other reporting dimension responsible for it. Document how shared charges, adjustments and credits are assigned so that operational reports reconcile with finance records. See GL Coding.

Cost per order measures defined fulfillment and shipping costs divided by the number of orders in the same period. Unlike cost per package, it can capture multi-package orders and may include handling, packaging or returns depending on the reporting scope. State the cost components used.

Country of origin is the country where a product was manufactured, produced or substantially transformed under applicable customs rules. It may differ from the country from which the product was shipped. Origin affects duties, trade-agreement eligibility, labeling and import restrictions.

Cross docking transfers goods from inbound transportation to outbound transportation with little or no storage between the two movements. It can reduce inventory handling and speed replenishment, but it requires accurate scheduling, shipment visibility and coordination. A cost model should include labor, facility, linehaul and exception costs rather than assuming every cross-dock move is cheaper.

Cubic volume is the three-dimensional space occupied by a package. For a rectangular carton, multiply length by width by height using consistent units. Carriers may use volume for dimensional-weight calculations, package classifications or other pricing tests; those are separate rules.

Customs is the government function that regulates goods entering or leaving a country. Customs authorities enforce classification, valuation, origin, duty, security and admissibility rules. Complete data and documentation support predictable clearance and a more accurate landed-cost baseline.

A customs broker prepares and submits import documentation, classifies goods, calculates duties and helps an importer comply with customs requirements. The broker acts on the importer's behalf, but the importer generally remains responsible for the accuracy of the entry. Performance should be measured through clearance time, error rates, duty accuracy and exception handling.

Damage is physical harm to goods or packaging that occurs during handling, transportation or delivery. A complete damage record includes photographs, packaging evidence, inspection notes, tracking data and proof of value. Studying damage by product, package design, facility, carrier and lane can support packaging changes and more informed service decisions.

Dangerous goods are articles or substances regulated because they can endanger people, property or the environment during transportation. The rules govern classification, packaging, labels, documentation, quantity limits and trained personnel. Requirements differ by mode and jurisdiction, and failure to comply can lead to delays, penalties or refused shipments.

DAP, or Delivered at Place, is an Incoterms® rule under which the seller carries transport cost and risk to a named destination, with the goods ready for unloading. The buyer generally handles import clearance, duties and taxes. Specify the named place and rule edition in the sale agreement.

DDP, or Delivered Duty Paid, is an Incoterms® rule placing responsibility on the seller for transport to a named destination and for export and import clearance, including applicable duties and taxes. Delivery is ready for unloading. Confirm that the seller can legally perform the destination’s import obligations before agreeing to DDP.

Declared value is the amount a shipper states for a shipment to increase the carrier's potential liability above its standard limit, subject to the carrier's terms and exclusions. It is not necessarily the same as cargo insurance. Shippers should compare the fee, recovery limits and claims history with other coverage options before applying declared value broadly.

Dedicated contract carriage provides a shipper with contracted vehicles, drivers and operating resources for a defined network or period. It offers capacity and operating control without requiring the shipper to own the fleet. The economic comparison should include management fees, asset utilization, empty miles, service requirements and the flexibility to adjust as demand changes.

A delivery area surcharge is an additional fee for packages delivered to ZIP codes or postal areas that a carrier classifies as costly to serve. Carriers may maintain separate residential, commercial, extended and remote-area lists. Because ZIP classifications change, shippers should map their current delivery data to the latest carrier tables and model both contractual discounts and future exposure.

A delivery exception is a shipment event that disrupts or changes the expected delivery process, such as an address issue, weather disruption, failed delivery attempt or carrier handling problem. An exception does not always mean a late delivery, loss or refund eligibility. Monitoring exceptions supports customer communication and carrier performance analysis.

A demand surcharge is an additional carrier fee applied during periods or conditions of elevated network demand. It may vary by service, package characteristic, date, origin, destination or the shipper's volume relative to a baseline. The term is often used in place of peak surcharge, but current carrier rules should determine how it is calculated. Forecasting weekly volume and rerating historical shipments can show which operational changes would have the greatest effect.

De minimis refers to low-value import treatment that may simplify entry or provide duty or tax relief where permitted by a jurisdiction’s laws. In the United States, duty-free de minimis treatment for most low-value imports was suspended effective August 29, 2025, including shipments previously eligible under the $800 threshold, subject to limited statutory exceptions. Other countries maintain their own thresholds and rules. Verify current destination-country requirements when calculating landed cost.

Demurrage is a charge assessed when cargo or equipment remains at a port, rail terminal or facility beyond the allowed free time. In ocean shipping, it commonly applies when a container is not removed from the terminal on schedule. Tracking availability dates, appointments, customs holds and free-time deadlines gives the shipper greater control over this cost.

Density expresses weight in relation to volume. It influences LTL freight class, equipment utilization and the economics of parcel dimensional-weight pricing. Measuring density accurately helps determine whether a shipment is being rated appropriately and whether packaging changes could lower the billable weight or freight class.

Detention is a charge for holding transportation equipment or a vehicle beyond an allowed period. In container shipping it commonly concerns equipment outside the terminal; in trucking it often concerns excess waiting at a facility. Contracts and local rules determine the clock, free time and responsible party. See Demurrage.

The DIM divisor, also called a DIM factor, converts package volume into dimensional weight. Divide length multiplied by width multiplied by height by the applicable divisor, using consistent units and the carrier’s measurement and rounding rules. A larger divisor produces a lower calculated weight, although actual weight, minimum charges or weight floors may limit the resulting savings.

Dimensional weight is a rating weight based on the space a package occupies. For a rectangular package, multiply length by width by height and divide by the applicable DIM divisor, following the service’s unit and rounding rules. The result is compared with actual weight and any applicable minimum billable weight. Smaller packaging can reduce cost when these rules, rather than actual weight, determine the charge.

A dimensional weight adjustment is a post-shipment change to billable weight when a carrier’s recorded package dimensions produce a different dimensional weight than originally manifested. Confirm measurement rules, rounding, weight floors and shipment evidence before treating the adjustment as a billing error. See Shipping Charge Correction.

Dimensions are the measured length, width and height of a package or freight unit. Carriers use them to calculate dimensional weight, identify oversized shipments and determine equipment or handling requirements. Consistent measurement at the point of shipment helps prevent charge corrections and gives the shipper a dependable basis for packaging analysis.

A disbursement fee is a charge assessed when a carrier or broker advances certain import duties, taxes or government charges on behalf of the responsible party. The fee is separate from the underlying duties and taxes and may depend on value, minimums or account arrangements. Include it when forecasting landed cost.

A distribution center is a facility used to receive, store, process and dispatch inventory. Its location and operating rules affect zone, transit time, carrier choice, inventory placement and final-mile cost. Network modeling can compare whether a new facility or different allocation policy produces enough transportation and service benefit to justify the added fixed and inventory expense.

Domestic shipping is transportation that begins and ends within the same country. It generally avoids international customs entry, but carrier rules, taxes and geographic surcharges still apply. Shippers should distinguish domestic from cross-border movements when building cost and service baselines because the available products and fee structures differ.

Door-to-airport service includes pickup at the origin and air transportation to the destination airport. The consignee or its agent handles customs clearance, recovery and final delivery. Comparing it with airport-to-airport or door-to-door service requires including every handoff, local charge and operational responsibility.

Door-to-door service covers transportation from the shipper's location to the recipient's location. Depending on the terms, the provider may coordinate pickup, linehaul, customs clearance and final delivery. A single provider can simplify execution, but shippers should review which fees, duties and exception services remain outside the quoted rate.

Drop shipping is a fulfillment model in which a supplier or third party ships an order directly to the customer rather than sending inventory through the seller's facility. It can reduce inventory investment but may limit control over packaging, service selection, carrier data and the customer experience. Clear operating rules and shipment-level visibility are necessary to measure the true cost.

A duplicate charge bills the same chargeable event more than once without a valid reason. Repeated tracking numbers alone do not prove duplication, since a shipment may have legitimate adjustments or multiple fee types. Match account, invoice, event and credit data before requesting recovery.

A duty is a tax imposed by a government on imported or, less commonly, exported goods. The amount usually depends on classification, customs value, origin and applicable trade programs. Accurate product data and scenario modeling help importers estimate landed cost before committing to a sourcing or routing decision.

Early termination occurs when a party ends a carrier or logistics agreement before its scheduled expiration. The contract may impose notice requirements, repayment obligations, minimum-revenue true-ups or other penalties. Shippers should quantify these terms before changing providers so the expected savings are measured net of exit costs.

An earned discount is a pricing reduction that depends on reaching a defined spending, revenue or volume threshold during a measurement period. The discount may change as activity moves between tiers. Modeling expected volume by week or month helps a shipper understand the effective discount and avoid assuming a tier that its actual business will not earn. See Effective Discount and Revenue Band.

An effective discount measures the actual reduction from a defined reference price for the same shipment set. Calculate the reference charge minus the comparable net charge, divided by the reference charge. State whether the comparison covers transportation only or all included fees; minimums can make it differ materially from the headline discount.

Electronic data interchange, or EDI, is the structured computer-to-computer exchange of business documents such as purchase orders, shipment notices, invoices and status messages. In transportation, EDI can reduce manual entry and improve timeliness, but data standards and exception controls must be maintained so inaccurate information does not flow automatically into labels, invoices or reports.

Executive Shipping Advisory is LJM’s ongoing, expert-led support for shipping decisions that affect financial and operational performance. Carrier-side specialists combine shipment analytics with commercial judgment to guide contract execution, carrier strategy, packaging, service mix and distribution decisions. The work continues beyond recommendations to support implementation, monitoring and optimization as carrier rules and business needs evolve.

An export license is government authorization to export controlled goods, software, technology or services to a specified destination or end user. Whether one is required depends on classification, destination, end use and the parties involved. Exporters should complete the determination before tendering the shipment to avoid holds, penalties or seizure.

Exports are goods or services sent from one country to another. Export shipments may require classification, licensing, origin documentation, customs declarations and screening of parties and destinations. Accurate compliance data supports predictable transit and a realistic estimate of transportation and landed cost.

An extended area surcharge applies to locations included in a carrier’s extended-area classification. It may be a category within the carrier’s delivery-area schedule rather than a second charge added to a standard delivery-area fee. Use the applicable postal-code list, service and contract to determine which geographic fee applies.

FedEx Ground Economy, formerly SmartPost, is a contractual service for eligible nonurgent, lightweight residential shipments and returns. Evaluate the current agreement’s eligibility, transit expectations, fees and delivery arrangements rather than assuming they match standard ground service or historical SmartPost operations.

A flat rate is a fixed transportation price for shipments that meet defined packaging, weight, service and destination conditions. It can simplify rating, but it is not automatically the lowest-cost option. Shippers should compare the flat rate with negotiated weight-and-zone pricing across the actual shipment profile.

Fraud detection in shipping identifies activity that may indicate account misuse, unauthorized shipments or suspicious billing. LJM’s Fraud Detection capability helps surface potential issues for investigation. An alert requires validation and does not establish that fraud occurred or guarantee that every unauthorized transaction will be detected.

Freight-all-kinds, often abbreviated FAK, is a pricing arrangement that applies one agreed rate or freight class to a defined group of commodities. It can simplify LTL rating and reduce classification disputes. The shipper should confirm which commodities, lanes, weights and accessorials the agreement covers before using the rate.

Freight class is an LTL rating category assigned under the National Motor Freight Classification or another applicable tariff. It reflects characteristics such as density, stowability, handling and liability. An incorrect class can create reclassification charges, so the commodity description, dimensions and weight should support the classification used on the bill of lading.

Freight collect means the consignee is responsible for paying the transportation charge. The bill of lading and carrier instructions should identify the liable account. The parties should also determine who pays accessorials or charges that arise after the initial tender.

A freight forwarder arranges transportation on behalf of a shipper and may consolidate cargo, book capacity, prepare documents and coordinate customs or delivery services. The forwarder may use multiple underlying carriers. Shippers should evaluate the complete route, liability, fees, data visibility and performance rather than treating the forwarder's quote as a single undifferentiated rate.

A fuel surcharge is a variable fee linked to a carrier's fuel index and surcharge table. Carriers typically update the percentage regularly and may apply it to transportation charges and selected accessorials. Because the index lag, table and surcharge base can differ, shippers should model fuel separately from base rates and verify that invoices use the correct contract terms. See Shipping Surcharges.

A general rate increase, or GRI, is a carrier’s broad adjustment to published rates, often announced annually. The headline average does not state the increase for every weight, zone, service or account, and separate fee changes can add cost. Rerating a representative shipping profile with the new tables and applicable contract terms provides a more useful budget estimate.

Girth is the distance around the two shorter sides of a package. For a rectangular carton, carriers commonly calculate it as two times the width plus two times the height. Length plus girth is used in certain size limits and oversized-package rules, so accurate measurement helps prevent unexpected charges or service restrictions.

General ledger coding assigns shipping charges and credits to the appropriate accounting codes. Rules may use account, location, department, order or other shipment data. Exception handling and reconciliation are necessary when a carrier record lacks the information needed for a reliable assignment.

GL Coding & Bill Pay is an LJM capability supporting transportation-expense allocation, bill-payment workflows and reconciliation. Coding rules connect shipping charges and credits with accounting categories, while review controls support invoice and payment accuracy. Client-specific authorization, payment timing and responsibilities are defined in the applicable workflow.

A grace period is additional time allowed before a contractual obligation, fee or penalty takes effect. It may apply to payment, volume commitments, equipment use or other terms. The agreement should state when the period begins, how it is measured and what happens when it expires.

Gross weight is the combined weight of the goods and all packaging, pallets or containers included in the shipment. It differs from net weight, which excludes packaging. Accurate gross weight supports rating, equipment planning, customs documentation and safety compliance.

Ground service is a parcel product that primarily moves shipments through a carrier's surface network. It is generally less expensive than air service and is commonly used when the delivery commitment can be met without premium transportation. Zone, package profile, residential exposure and the accuracy of the promised transit time determine whether ground is the best economic choice for a given order.

A guaranteed service refund, or GSR, is a refund or credit available for an eligible failure to meet a carrier’s delivery commitment. Current service eligibility, exclusions, guarantee suspensions, contract waivers and filing deadlines determine whether recovery is available. This is separate from a claim for lost or damaged goods. See Money Back Guarantee.

A Harmonized System, or HS, code classifies goods under an internationally standardized structure. The shared six-digit framework is extended by individual jurisdictions for their tariff and statistical needs. Use the destination’s full applicable code and current rules when determining duty treatment. See Harmonized Tariff Schedule.

The Harmonized Tariff Schedule of the United States, or HTSUS, is the U.S. classification and tariff schedule for imported goods. Classification, customs value, origin and applicable additional provisions affect the duty calculation. A code used for exporting or for another country is not automatically the correct U.S. import code.

Hazardous materials are substances regulated for transportation because they can pose risks to health, safety, property or the environment. The term is often used in U.S. ground regulations, while dangerous goods is common in air and international rules. Proper classification, packaging, marking, documentation and employee training are required before the shipment is tendered.

Height is one of the three package dimensions used for rating and size rules. It is usually the shortest dimension when carriers apply length, width and height conventions, although measurement instructions vary. Even a small change can affect dimensional weight or an oversize threshold, so automated or manual measurement controls should be verified.

Hub and spoke is a network design in which shipments move from local origins to central sorting hubs and then outward to destination facilities. It creates scale and broad coverage but can add handling and distance compared with direct routes. Service analysis should consider where network design affects transit time, exceptions and exposure to disruption.

Hundredweight pricing, often shown as CWT, calculates charges in units of 100 pounds. Parcel carriers may offer CWT programs for qualifying multi-package shipments moving from one origin to one destination, while freight carriers also use weight-based CWT rates. Eligibility, minimums and included charges vary, so the shipper should compare the program's total cost with standard parcel, multiweight and LTL options.

An import is a good or service brought into a country from abroad. Import shipments may be subject to customs entry, duties, taxes, inspections and product-specific requirements. Importers should model transportation and landed cost together so that a lower purchase price is not offset by unexpected clearance, duty or delivery expense.

The importer of record is the party responsible for meeting the importing jurisdiction’s entry and compliance requirements. Responsibilities can include accurate classification, valuation, documentation and payment of duties and taxes. The recipient, seller, broker and importer of record are not necessarily the same party.

An incentive discount is a negotiated reduction from a carrier's published rate. It may vary by service, zone, weight, revenue tier or other shipment characteristic. The effective value depends on minimum charges and surcharges as well as the stated percentage, so shippers should test the discount against actual shipment data before relying on it. See Effective Discount and Minimum Charge.

Incoterms® rules are ICC trade rules that allocate defined delivery responsibilities, costs and risks between buyer and seller. They do not by themselves determine ownership transfer or payment terms. Specify the rule, named place or port and edition; match the selected rule to the transport mode and the parties’ ability to perform it.

Interline transportation occurs when two or more carriers handle different portions of the same shipment. It can expand geographic coverage, particularly in LTL and international networks, but adds handoffs that may affect visibility, claims and transit time. The governing documents should identify responsibility and liability across the route.

Intermodal transportation uses more than one mode, such as truck and rail, while the freight remains in the same container or trailer. It can lower long-haul cost and emissions compared with all-truck service, but transit, drayage, terminal handling and schedule reliability must fit the shipment's requirements.

Invoice reconciliation matches carrier invoices, shipment records, payments and credits to establish what was billed, paid and recovered. It prevents an approved refund from being treated as received before the credit posts and helps keep operational reporting aligned with accounting.

Kitting combines separate products or components into one packaged unit before fulfillment or production. It can simplify picking and create a consistent customer experience, but it also changes package dimensions, inventory requirements and labor. Shipping-cost analysis should compare the assembled kit with the cost and service impact of sending items separately.

A shipping label identifies the shipment and contains the barcode, tracking number, service, addresses and routing data a carrier needs to process it. Label accuracy affects sortation, billing and delivery. Controls should verify the account, service, address, package data and any special markings before the shipment enters the carrier network.

Lading refers to cargo placed aboard a vehicle, vessel or other mode of transportation. The term appears in bill of lading and related freight documentation. Accurate descriptions of the lading support proper handling, rating and liability decisions.

Landed cost is the defined total cost of acquiring goods and bringing them to a specified destination. It can include product cost, transportation, insurance, duties, taxes, brokerage and other fees. State the included components and treatment of recoverable taxes so comparisons use the same basis.

Large Package Surcharge is UPS terminology for an added charge on packages meeting its large-package criteria. The rules may involve dimensions, cubic volume or weight and may carry a minimum billable weight. Other carriers use different terms and tests. This classification is distinct from a package that exceeds the carrier’s maximum acceptance limits. See Oversize.

Last mile is the final movement from a carrier facility, store or local hub to the delivery address. It is often one of the most expensive and service-sensitive parts of the transportation network. Delivery density, residential concentration, geography, service commitments and failed delivery attempts all influence the cost.

Length is typically the longest side of a package. Carriers use it in dimensional-weight calculations, length-plus-girth rules and oversize thresholds. Accurate measurement matters because a small difference near a threshold can produce a large change in billable cost.

Less-than-truckload, or LTL, freight combines shipments from multiple customers in one trailer. Pricing commonly reflects weight, freight class, lane, density and accessorial services. LTL may be more economical than parcel for heavier or palletized shipments, but the comparison should include handling, transit, damage risk and all pickup and delivery requirements.

Linehaul is the long-distance transportation segment between terminals, hubs or distribution points, distinct from initial pickup and final delivery. It is an important cost and service component in parcel networks, regional-carrier arrangements and zone-skipping programs.

A loading dock is a facility area designed for transferring goods between a building and a truck or trailer. Dock height, appointment rules, equipment and labor affect how efficiently freight is loaded and unloaded. Locations without suitable access may incur liftgate, inside-delivery, detention or other service charges.

A manifest is the electronic or paper record of shipments tendered to a carrier. It normally includes tracking numbers, services, package details and billing information. Timely, accurate manifest data helps the carrier plan and bill correctly and gives the shipper a control total for reconciliation.

Minimum billable weight is a weight floor used to price certain shipments or package categories. It can override both actual and dimensional weight. This differs from a minimum charge, which is a monetary floor. The applicable category, service, effective date and agreement determine whether the floor applies.

A minimum charge, sometimes called a minimum net charge, is a contractual or published monetary floor on the eligible transportation charge. When the discounted rate falls below that floor, the applicable minimum governs. Fuel and other fees may still be added. This differs from minimum billable weight, which changes the rating weight. See Minimum Charge Reduction.

A minimum-charge reduction lowers the monetary floor used to rate eligible shipments, according to the agreement’s formula. It can improve the cost of packages already priced at the minimum, where a larger transportation discount alone would have no effect. Fuel and other fees may still apply.

A minimum commitment requires a shipper to provide a specified level of revenue, volume or business to a carrier. Failure to meet it may reduce discounts, trigger a shortfall payment or create another contractual consequence. Forecasting different demand and carrier-allocation scenarios helps quantify this risk before signing or changing a contract.

Minimum net charge is another term for the lowest eligible transportation charge after applicable discounts under a carrier’s rating rules. It is a monetary floor, not a minimum billable weight. See Minimum Charge.

A money-back guarantee is a carrier commitment to refund or credit eligible transportation charges when a qualifying shipment misses its promised delivery time. Guarantees may be suspended, limited or excluded by service, cause, date or contract. Shippers should rely on the current service guide and account terms and track whether valid credits are actually claimed. See Guaranteed Service Refund and Service Refund Waiver.

Multiweight, often abbreviated MWT, is a contractual pricing method for multiple packages moving from one origin to one destination. The carrier rates the shipment using aggregate weight under program-specific rules rather than rating every package independently. Shippers should compare MWT with standard parcel, hundredweight and LTL pricing for the same shipment set.

A negotiated rate is a transportation price established through a shipper's carrier agreement rather than the carrier's standard published table alone. It may include base discounts, minimum-charge adjustments, surcharge concessions and incentive tiers. The correct measure is the net cost produced by all applicable terms across the shipper's actual shipment profile.

Net customer benefit is the financial improvement retained by a customer after the agreed fees and implementation costs associated with an initiative. Define the baseline, included costs and measurement period. It differs from gross modeled savings and should be supported by realized results where available.

Net shipping cost is the transportation expense after applicable discounts, fees, adjustments and credits within a stated scope. Identify whether it includes fuel, returns, advisory fees, packaging or other costs. A quoted discounted transportation rate is not necessarily the final net cost.

Net weight is the weight of the goods excluding packaging, pallets, containers and other shipping materials. It is used in product, customs and trade documentation. Transportation rating usually relies on gross, actual or dimensional weight instead, so the correct measure must be used for each purpose.

On-time delivery measures whether shipments reach the defined destination by the applicable commitment or customer promise. State the denominator, excluded events and date source. Operational on-time performance and eligibility for a carrier guarantee refund are related but separate measures.

Overage, short and damaged, or O S and D, describes freight discrepancies found at receipt. An overage means more units arrived than expected, a shortage means fewer arrived and damage means the goods or packaging were harmed. Prompt notation on the delivery receipt and supporting evidence are important for inventory control and claims.

Oversize describes packages meeting a carrier’s oversized-package criteria; FedEx uses Oversize Charge for its related fee. The qualifying tests, weight floors and interaction with other charges are carrier-specific. An oversize charge does not automatically mean a package is prohibited, and a package beyond maximum limits can face different charges or rejection. See Large Package Surcharge.

Packaging protects goods and prepares them for handling and transportation. Its size, shape, material and strength affect damage, dimensional weight, additional handling and oversize exposure. The best packaging decision balances product protection, customer experience, material expense and the net transportation cost retained after the change. See Cubic Volume and Minimum Billable Weight.

A packing list itemizes the contents of a shipment, including quantities, package counts, weights and other identifying information. It supports receiving, customs inspection and discrepancy resolution but does not replace the commercial invoice. Consistent data across all documents reduces clearance and claims problems.

A pallet is a portable platform used to consolidate cartons or goods for mechanical handling. Pallet size, weight, construction and load stability affect freight class, equipment use, storage and damage risk. Shippers should include the pallet and wrapping materials when reporting gross weight and dimensions.

A parcel, or small package, is an individually handled shipment that falls within a carrier's package limits and moves through a parcel network. Parcel pricing commonly reflects service, zone, billable weight and accessorials. The term does not mean the shipment is inexpensive; nonstandard dimensions and surcharge exposure can make a relatively small package costly.

Parcel intelligence turns shipment, billing, contract and service data into information that supports shipping decisions. Useful analysis identifies cost drivers, tests alternatives and measures results. Data quality, consistent definitions and expert interpretation determine how reliably insights translate into action.

LJM’s Parcel Intelligence Platform™ is its client interface and advanced analytics engine for parcel shipping visibility, cost analysis and decision support. Capabilities include RateINTEL, TruCost, GL Coding & Bill Pay, Tracking Concierge, Fraud Detection and custom reporting. The platform supports LJM’s Contract Negotiation, Parcel Invoice Auditing and Executive Shipping Advisory services by connecting shipping data with expert-led analysis and action.

Parcel invoice auditing checks carrier invoices against negotiated rates, shipment records, applicable surcharges and billing rules. It can identify rate errors, unsupported fees, duplicate charges and eligible service refunds. LJM combines invoice review with validated refund recovery, credit reconciliation and analysis of recurring billing issues to help prevent avoidable costs from returning. See Audit Exception, Billing Discrepancy and Refund Recovery.

A parcel locker or access point is a designated location where eligible shipments can be delivered for customer pickup or dropped off for returns. Availability, parcel restrictions, notification practices and pricing vary. These alternatives may reduce failed delivery attempts or offer greater delivery flexibility.

Parcel spend management brings together carrier contract strategy, invoice controls, shipping analytics and operational decisions to manage total parcel cost. At LJM, Contract Negotiation, Parcel Invoice Auditing and Executive Shipping Advisory work together, supported by the Parcel Intelligence Platform™ and continuous optimization.

Parcel spend visibility is the ability to see shipping costs across carriers, accounts, locations and relevant business dimensions. Visibility should include adjustments and credits as well as initial charges. It provides the baseline for action; reporting alone does not establish that savings have been achieved.

Payment terms define when and how an invoice must be paid. They may address due dates, discounts for early payment, late fees, dispute procedures and currency. Transportation agreements should align payment terms with the time needed to receive shipment data, audit invoices and submit valid disputes.

Peak season is a period of unusually high shipping demand, commonly associated with the holiday shopping cycle but increasingly defined by carrier-specific calendars. Capacity, service and pricing rules may change during this period. Shippers can improve outcomes by forecasting weekly volume, reviewing package and lane exposure and preparing carrier-allocation and customer-promise options before the highest-cost weeks.

Peak surcharges are fees associated with a carrier’s designated high-demand periods. Many carriers now use Demand Surcharge terminology. A Surge Fee may have a separate trigger and schedule, so these labels should not be treated as interchangeable. See Demand Surcharge and Surge Fee.

A pickup fee is a charge for collecting shipments from a shipper's location. It may be assessed per stop, week, account or request and can vary by pickup type or volume. Contract comparisons should include pickup costs, especially when evaluating multiple carriers or low-volume locations.

A portfolio tier incentive is a carrier discount structure based on the combined eligible revenue or volume of a defined group of services or accounts. The tier achieved determines the discount applied. Shippers should confirm which spend counts toward the portfolio, how the period is measured and what happens if volume shifts among carriers or services.

Prepaid shipping means the shipper pays the transportation charge rather than billing it collect to the consignee. The seller may include that cost in the product price or charge it separately. Prepaid terms do not by themselves determine ownership, risk of loss or duty responsibility; those matters depend on the commercial agreement.

A pricing benchmark is a reference used to assess a shipper’s rates or contract terms against relevant comparison data. Comparability depends on package profile, service, geography, volume, timing and contract conditions. A headline discount benchmark alone cannot establish whether an agreement delivers competitive net cost.

Proof of delivery, or POD, is evidence that a shipment was delivered. It may include the date and time, recipient name, signature, photograph, location data or delivery scan. POD supports customer service, payment and claims decisions, but the available evidence and retention period vary by carrier and service.

A published rate is the carrier's standard list price for a transportation service before account-specific discounts and concessions. It provides the reference point for many negotiated agreements and annual rate changes. Because published rates exclude the effect of minimums, fuel and accessorials, they should not be used alone to forecast a shipper's cost.

A rate cap limits specified price increases under an agreement for a defined period. It may cover only eligible transportation rates and exclude fuel, surcharges, minimums or other changes. Read the scope and calculation method before treating a cap as a ceiling on total parcel spend.

RateINTEL is an LJM capability used to compare parcel shipping costs across eligible carriers and service levels based on available contract and shipment-pricing inputs. It helps evaluate how weight, zone, service and applicable charges affect comparative cost. Results depend on complete, current pricing data and should be evaluated alongside delivery requirements and operational constraints.

Rate shopping compares available carrier and service prices for a shipment. A useful comparison includes account rates, billable weight, relevant fees and delivery requirements. The lowest quoted transportation rate may not produce the lowest final cost or meet the customer’s promised delivery date.

Realized savings are reductions supported by actual results against an agreed baseline. Adjust for volume, service mix, fuel and other changes where appropriate so unrelated movements are not credited to an initiative. State whether reported savings are before or after fees, credits and implementation costs.

Refund recovery is the process of obtaining and reconciling credits or payments owed for validated billing errors or eligible service failures. Track the original charge, reason, filing date, decision and posted credit. Requested, approved and received amounts should be reported separately.

A regional carrier serves a defined geographic market rather than a full national network. It may offer useful delivery coverage or pricing for selected lanes. Evaluate address coverage, pickup requirements, tracking integration, capacity and claims processes alongside the impact on existing carrier incentives.

A remote area surcharge is a geographic fee for locations designated as remote under a carrier’s rules. Its postal-code list, service coverage and relationship to other area fees may differ from extended-area classifications. Use current carrier tables rather than assuming all carriers treat the same address alike.

Residential delivery means delivering to an address the carrier classifies as residential under its rules. That classification may differ from how the building is used and may affect service eligibility and pricing. See Residential Surcharge and Address Validation.

A residential surcharge is an added fee for delivery to an address the carrier classifies as a residence. It can apply even when a business operates from the location, depending on the carrier's address data. Address classification, contract discounts and service selection should be monitored because residential volume can materially change the cost of an e-commerce network.

Returns are goods sent back by the recipient to the seller, manufacturer or another designated location. Return cost includes transportation, labels, customer support, inspection, restocking, refurbishment and lost product value. A complete returns strategy balances customer convenience with routing rules and disposition decisions that protect retained margin.

Return to sender is a carrier disposition in which an undeliverable or refused shipment is sent back toward its origin. Causes may include address problems, repeated failed attempts or recipient refusal. Shippers should track related transportation, handling and restocking charges alongside the reasons for return.

A revenue band is a range of eligible shipping revenue used in a carrier’s incentive structure. The band reached can determine a discount tier. The agreement defines qualifying revenue, exclusions, aggregation and measurement periods, so total invoiced spend may differ from the revenue used to establish the band.

Reverse logistics manages products moving from the customer back through the supply chain for return, repair, reuse, recycling or disposal. It includes transportation as well as authorization, consolidation, inspection and disposition. Measuring each step helps identify whether a different return method, location or service would improve cost and customer outcomes.

Saturday delivery is a service that delivers eligible shipments on Saturday. Availability, commitment and fees vary by carrier, service and destination, and some ground products may include Saturday delivery where premium products treat it separately. Shippers should verify the current rules and compare the cost with the customer's actual delivery requirement.

A savings baseline is the agreed reference cost used to measure an initiative’s financial impact. Define the shipment set, rate period, fuel assumptions, service mix, fees and treatment of credits. Recalculate comparable shipments when needed to separate pricing improvements from unrelated changes in demand or operations.

A carrier service guide describes available products, package limits, guarantees, prohibited items, surcharge rules and other conditions of service. It usually works together with the carrier's tariff and the shipper's agreement. Because guides change, contract and invoice analysis should use the version effective on the shipment date.

A service level is the carrier product and delivery commitment selected for a shipment, such as ground, deferred air, two-day or next-day service. The fastest option is not always necessary to meet the customer's promise. Comparing required delivery dates with actual transit performance can identify safe opportunities to use a lower-cost service.

Service-level optimization selects services that meet delivery requirements at an appropriate total cost. It compares promised dates, lane-level transit performance, operating cutoffs and exception risk. Moving from air to ground creates value only where the delivery requirement and product needs can still be met.

A service refund waiver is an agreement limiting the right to request certain delivery-guarantee refunds. Its exact scope matters: a waiver of late-delivery refunds should not automatically be treated as a waiver of every billing-error dispute. Review the wording, covered services and applicable period.

Shipment type is a category based on mode, service, packaging, commodity or movement pattern. Examples include parcel, LTL, truckload, air freight, domestic and international shipments. Separating types in reporting helps shippers compare like with like and apply the correct rating and operational rules.

A shipper is the person or organization that tenders goods for transportation. The shipper may be the seller, manufacturer, distributor, fulfillment provider or another party acting under agreement. Its responsibilities can include packaging, labeling, documentation, payment and compliance, depending on the transaction.

Shipping analytics examines shipment, billing and performance data to explain costs and support decisions. Examples include cost per package, surcharge exposure, service mix and transit performance. Use consistent definitions and reconciled data so that finance and logistics teams evaluate the same results.

A shipping application programming interface (API) enables software systems to exchange shipping information, such as rates, labels, tracking events or shipment records, through defined technical connections. Accuracy, availability and integration scope depend on the data provider and system configuration.

A shipping charge correction is a post-shipment billing adjustment made when the carrier's measured weight, dimensions, address, packaging or service data differs from the original manifest. Corrections may be valid or erroneous. Comparing carrier adjustments with warehouse records and measurement data helps prevent repeat issues and support disputes. See Billing Discrepancy and Invoice Reconciliation.

A shipping charge correction audit fee is a separate carrier-assessed fee that may apply when package information provided at shipment creation differs from the carrier’s measured or validated information under its current rules. It is distinct from the corrected transportation charge itself. Eligibility, thresholds and calculation vary by carrier and effective date.

Shipping cost leakage is avoidable expense that persists because of billing errors, missed recoveries, poor service selection, unauthorized activity or weak operating controls. It is an analytical description, not a standard carrier fee. Quantify each source before treating it as an achievable savings opportunity.

A shipping profile describes a shipper’s volume, services, weights, dimensions, zones, delivery types, origins and seasonal patterns. It connects business requirements to carrier pricing. A representative profile is necessary for contract rerating, carrier comparisons and realistic savings estimates.

Shipping surcharges are charges added to transportation pricing for defined services, package characteristics, locations or operating conditions. They include fuel, residential delivery, delivery area, handling and other fees, often called accessorial charges. Some are flat amounts; others are percentages or tiers. Model each fee’s eligibility, discount and calculation base, including whether fuel applies to it.

Signature options require or record a recipient's signature at delivery. Carriers may offer indirect, direct, adult or other signature levels, each with different eligibility and fees. The shipper should match the option to product value, age restrictions, fraud risk and customer experience rather than applying the same rule to every order.

A skid is a low platform used to support and move freight, often with a deck resting on runners instead of the bottom boards found on many pallets. The terms skid and pallet are sometimes used interchangeably. Dimensions, construction and forklift access should be communicated accurately for handling and rating.

SmartPost is the former name of FedEx Ground Economy. Older contracts, labels and shipment records may still carry the name. Map the historical service label to the appropriate period and operating rules when comparing costs. See FedEx Ground Economy.

A supply chain is the connected system of suppliers, facilities, inventory, transportation, information and customers involved in producing and delivering a product. Shipping is one component of that system. Decisions about sourcing, inventory placement, packaging, promotions and customer promises can change parcel cost before a carrier ever receives the package.

See Shipping Surcharges.

A surcharge discount reduces an eligible fee under a negotiated agreement. It may be a percentage, fixed reduction, cap or other formula with its own expiration date. A transportation discount does not automatically reduce accessorials, and a discounted fee may still enter the fuel-surcharge calculation.

Surcharge exposure measures how much of a shipping profile is subject to particular additional fees and how those fees affect total cost. Analyze incidence and dollars by carrier, service, package characteristic, geography and period to identify where contracts or operational changes may create value.

SurePost is the former name of UPS Ground Saver. Use the current service name for new content and retain SurePost as a search alias for older agreements and reports. Delivery arrangements and pricing must be evaluated for the applicable shipment date. See UPS Ground Saver.

A Surge Fee is a carrier-defined additional charge triggered by conditions specified in its current pricing rules, such as origin, service, lane or account eligibility. It is not necessarily seasonal and should not automatically be treated as interchangeable with a Demand Surcharge. Model effective dates, qualifying shipments and any contract-specific treatment. See Demand Surcharge and Peak Surcharges.

A tariff is a published set of rates, classifications, rules and conditions governing transportation or international trade. In carrier relationships, the tariff may contain liability and service provisions incorporated into the agreement. In customs, tariff also refers to duties assigned to imported goods. The applicable context and effective version must be identified before using the term in a cost analysis.

To tender a shipment is to present it to a carrier for acceptance and transportation. Tender can also refer to the electronic transmission of shipment instructions before physical pickup. Accurate data and compliance with cutoff, packaging and documentation requirements help ensure the carrier accepts the shipment under the intended service and price.

In a carrier agreement, term can mean the agreement’s duration or an individual condition governing pricing, service, payment or liability. Review effective dates, renewal provisions and notice periods as well as individual pricing conditions, since a discount can expire before the broader agreement ends.

A terminal is a facility where freight is received, sorted, transferred or dispatched between transportation movements. LTL, rail, air, ocean and parcel networks use different types of terminals. Location, capacity and operating practices can affect transit time, handling and service reliability.

Termination is the formal ending of a contract or service relationship. Agreements may allow termination at expiration, for cause, for convenience or after a specified notice period. Before acting, shippers should calculate notice requirements, penalties, data-transition needs and the operational readiness of the replacement plan.

Third-party billing charges transportation to an account that belongs to neither the shipper nor the consignee. The account owner must authorize the charge and meet the carrier's billing requirements. Accurate account numbers and responsibility rules help avoid rebills, corrections and disputes.

A third-party billing surcharge is a carrier fee for billing a shipment to an approved third-party account. The fee may be calculated as a percentage of transportation and other charges. Shippers that use vendors, drop shippers or customer accounts should include it when comparing billing structures.

A third-party logistics provider, or 3PL, performs outsourced logistics functions such as warehousing, fulfillment, transportation management or freight brokerage. A 3PL can add scale and expertise, but the shipper still needs visibility into carrier rates, fees, data ownership and service performance to understand the net economic result.

Total Parcel Savings (TPS) is LJM’s term for measured savings across a client’s parcel shipping program. The result depends on the agreed baseline, included initiatives, measurement period and applicable reporting methodology. Modeled opportunities, realized savings and net customer benefit should be distinguished, including whether LJM fees and implementation expenses have been deducted. TPS is not a guaranteed outcome or a synonym for total parcel spend.

Total parcel spend is the sum of parcel shipping costs within a defined period and reporting scope. Specify included carriers, accounts, services, fuel, fees, credits and returns. Keep the definition consistent across budgets, contract comparisons and savings reporting. See Total Parcel Savings for the distinct savings measure.

Tracking Concierge is an LJM capability that brings shipment-status information and delivery exceptions into a more usable view for monitoring and customer-service decisions. It helps clients analyze tracking activity and service trends. Visibility does not itself guarantee delivery or replace carrier claim, refund or investigation procedures.

A tracking number is the unique identifier assigned to a shipment or package. It connects carrier scans, status events, delivery information and billing records. Preserving the tracking number across order, warehouse, carrier and finance systems supports customer service, invoice audit and claims analysis.

Transit time is the elapsed time between a shipment's pickup or carrier acceptance and delivery. It may be expressed in business or calendar days and may exclude weekends, holidays or the pickup date. Shippers should distinguish the carrier's stated commitment from actual lane-level performance when setting customer promises or choosing a service.

A transportation charge is the amount billed for the core movement of a shipment before or apart from additional fees. It is commonly based on service, zone, weight, distance or equipment. Comparing transportation charges without their related surcharges can understate the true cost of an option.

A transportation management system, or TMS, supports transportation planning and execution, such as carrier selection, rating, tendering and tracking. Scope varies by product. An analytics platform or client interface should not automatically be described as a TMS unless it provides the required execution functions.

Truckload transportation uses a trailer primarily or exclusively for one shipper's freight. It is commonly used for large loads, direct routes or goods that benefit from fewer handling events. Rates depend on lane, equipment, timing, capacity and market conditions, and comparisons should account for detention, stop-offs and other accessorials.

TruCost is LJM’s reporting capability for comparing what a business charges for shipping with what it pays. It helps identify shipment-level gaps and loss patterns that can inform pricing or operating decisions. Define the included costs and revenue consistently before using the result as a profitability measure.

UPS Ground Saver, formerly SurePost, is an economy service for eligible less urgent parcels. Final delivery can involve UPS or USPS depending on the destination and current arrangements. Review service eligibility, delivery expectations and all fees under the current agreement rather than assuming standard UPS Ground terms apply.

Value-added services are optional activities beyond standard transportation or storage. Examples include kitting, labeling, appointment delivery, inside delivery, installation and special handling. Their value should be measured against the cost, operational effort and customer requirement they address.

Value-added tax, or VAT, is a consumption tax applied at stages of production and distribution in many countries. For cross-border shipments, VAT responsibility depends on local law, registration status and the agreed terms of sale. It should be included in landed-cost and cash-flow planning even when the business may later recover it.

A warehouse management system (WMS) supports inventory and warehouse processes such as receiving, storage, picking, packing and shipping preparation. Its product dimensions, order and carton data can materially affect parcel rating accuracy and service selection. See Transportation Management System.

A waybill is a transportation document containing shipment instructions and identifying information for the carrier. Unlike a negotiable bill of lading, it generally does not transfer title to the goods. Parcel labels, air waybills and other modal documents serve related waybill functions.

Weight is a measure of how heavy a shipment is. Shipping may involve actual, gross, net, dimensional and billable weight, each serving a different purpose. Using the correct measure and unit is essential for rating, capacity, customs and compliance.

Width is one of the three dimensions used to describe a package and is commonly the second-longest side. It contributes to dimensional weight, girth and size-limit calculations. Consistent measurement reduces rating errors and helps identify packaging changes with a real economic benefit.

A zone is a carrier’s rating classification for an origin and destination pair. In domestic parcel shipping it commonly reflects distance, but postal-code assignments and international zone groupings are carrier-specific. Zone-table revisions can change cost even when the shipper’s addresses stay the same. Use the table effective for the shipment date.

Zone skipping consolidates parcels for linehaul movement closer to their destination before injecting them into a parcel carrier's network. By bypassing origin zones, it can reduce per-package zone and transportation cost. The model should include consolidation, linehaul, sortation, minimum volume, delivery commitments and the operational risk created by an additional handoff.