The logistics and supply chain world is packed with industry-specific jargon. If you’ve ever heard terms like “deadhead miles,” “bill of lading,” or “3PL” and felt a little lost, you’re not alone. Whether you’re a business owner, a logistics manager, or just someone curious about how products move from point A to point B, understanding key logistics terms can make all the difference.
At Sure Shot Logistics, we believe that knowledge is power. That’s why we’ve put together this supply chain glossary to help break down some of the most important logistics terms in a way that’s easy to understand.
1. Bill of Lading (BOL)
A Bill of Lading is a legally binding document issued by a carrier that serves as a receipt for goods being shipped. It outlines what’s being transported, where it’s going, and the terms of delivery. Think of it as a shipping contract between the shipper and the carrier.
Why it matters: If there’s ever a dispute about a shipment, the BOL is the first document used to sort things out.
2. Third-Party Logistics (3PL)
A 3PL is a company that provides logistics services to businesses that need to move freight. These services can include transportation, warehousing, and even inventory management.
Why it matters: Many businesses outsource their logistics to 3PLs to improve efficiency and reduce costs. If you’ve ever worked with a company like Sure Shot Logistics, you’ve worked with a 3PL.
3. Deadhead Miles
Deadhead miles refer to the distance a truck drives without carrying cargo—usually on its way to pick up a new load.
Why it matters: Deadhead miles cost money because drivers are burning fuel and putting wear on the truck without making a profit. The goal is always to minimize empty miles and maximize efficiency.
4. Less-Than-Truckload (LTL) vs. Full Truckload (FTL)
- LTL (Less-Than-Truckload) – When multiple shippers share space in one truck because they don’t have enough freight to fill a full trailer.
- FTL (Full Truckload) – When a single shipment takes up an entire truck, making it more cost-effective for larger loads.
Why it matters: If you’re shipping smaller loads frequently, LTL might save you money. But if you’re moving large amounts of freight, FTL is often the better choice.
5. Freight Broker
A freight broker connects shippers with carriers. They don’t own trucks—instead, they negotiate rates and ensure that freight gets moved efficiently by tapping into their network of trusted carriers.
Why it matters: A good freight broker, like Sure Shot Logistics, can help you find cost-effective and reliable trucking solutions without the hassle of managing carriers yourself.
6. Freight Class
Freight class is a standardized rating assigned to shipments based on factors like weight, density, and how difficult they are to transport. It helps determine shipping rates for LTL freight.
Why it matters: Knowing your freight class helps you avoid overpaying on shipping. Misclassifying your freight can lead to unexpected fees.
7. Accessorial Charges
Accessorial charges are extra fees applied to a shipment for services beyond standard transportation. These might include:
- Inside delivery (bringing freight inside a facility instead of curbside drop-off)
- Liftgate service (used when there’s no loading dock)
- Detention fees (charged when a truck is kept waiting longer than expected)
Why it matters: If you’re budgeting for freight costs, be aware of possible accessorial fees that could increase the final bill.
8. Detention vs. Layover Fees
- Detention Fee – Charged when a truck is held up at pickup or delivery beyond the agreed timeframe.
- Layover Fee – Applied when a truck has to wait overnight due to delays.
Why it matters: Shippers and receivers should aim for efficient loading and unloading to avoid extra costs and keep deliveries on schedule.
9. Freight Audit
A freight audit is a review of shipping invoices to catch overcharges, incorrect classifications, or duplicate charges.
Why it matters: Freight invoices aren’t always accurate, and audit services can help businesses save thousands by identifying errors.
10. Cross-Docking
Cross-docking is a supply chain strategy where incoming shipments are immediately transferred to outbound trucks with little to no storage time in between.
Why it matters: It speeds up delivery times, reduces storage costs, and improves overall efficiency. Retailers with fast-moving inventory often use cross-docking to keep products flowing smoothly.
11. Dwell Time
Dwell time refers to the amount of time a truck spends waiting at a warehouse, dock, or yard before being loaded or unloaded.
Why it matters: Longer dwell times mean inefficiencies in the supply chain, increased costs, and possible detention fees.
12. Spot Rate vs. Contract Rate
- Spot Rate – A one-time shipping rate based on current market conditions.
- Contract Rate – A fixed rate agreed upon for regular freight moves over a longer period.
Why it matters: Spot rates can fluctuate due to fuel prices, demand, and seasonal trends, while contract rates provide cost stability.
13. Supply Chain Visibility
Supply chain visibility refers to the ability to track shipments in real time, monitor inventory, and get insights into the movement of goods.
Why it matters: Better visibility means fewer surprises, improved customer service, and better decision-making when things don’t go as planned.
Final Thoughts: Know the Language, Stay Ahead
Whether you’re moving freight, managing supply chains, or simply trying to make sense of logistics, knowing these key terms will help you navigate the industry with confidence.
At Sure Shot Logistics, we’re here to make logistics simple and stress-free for our clients. Have questions or need help moving your freight? Let’s talk.
Want to learn more? Contact us today and let’s get your shipments moving—efficiently, securely, and on time.