Varstar Alliance Resource
Freight Glossary
Every term you need to know in freight, logistics, and US-Canada cross-border shipping - explained simply by a Detroit-based freight brokerage.
53
Terms defined
US-CA
Cross-border coverage
A-Z
Linkable entries
A
- ACE e-Manifest#
- The electronic manifest carriers must submit to US Customs and Border Protection (CBP) through the Automated Commercial Environment before a truck arrives at a US port of entry, typically at least one hour ahead for most freight.
- ACI eManifest#
- Canada's Advance Commercial Information program. Highway carriers must electronically send cargo and conveyance data to the CBSA before arriving at the Canadian border, typically at least one hour ahead.
- Asset-Based Broker vs. Pure Brokerage#
- An asset-based broker has direct control over equipment and capacity - for example through an affiliated trucking company - while a pure (non-asset) brokerage owns no trucks and works entirely with third-party carriers. The difference shows up in accountability: an asset-based broker can commit its own capacity on key lanes and answer for the whole move, instead of only matching a load to whoever is available.
- Asset-Based Carrier#
- A transportation company that owns and operates its own trucks and equipment, as opposed to a non-asset broker that relies entirely on third-party carriers.
B
- Bill of Lading (BOL)#
- A legal document between the shipper and carrier detailing the type, quantity, and destination of the goods being carried. It serves as a receipt of freight services.
- Bonded Carrier#
- A carrier approved and bonded by customs to move goods that have not yet cleared customs (in-bond freight) between ports or to a bonded warehouse.
- Broker (Freight Broker)#
- A licensed intermediary that arranges transportation between shippers and carriers. Freight brokers do not own trucks but coordinate logistics.
C
- Capacity#
- The available supply of trucks and trailers to move freight. When capacity is tight, rates go up; when loose, rates drop.
- CBP (U.S. Customs and Border Protection)#
- The US federal agency that inspects and clears goods entering the United States, collects duties, and enforces import rules at the border.
- CBSA (Canada Border Services Agency)#
- The Canadian federal agency responsible for clearing goods entering Canada, collecting duties and taxes, and enforcing import regulations.
- Certificate of Origin#
- A document certifying the country where goods were produced. For US-Canada-Mexico trade, a valid origin certification lets qualifying goods enter duty-free under USMCA/CUSMA.
- Commercial Invoice#
- The key customs document for an international shipment. It lists the seller, buyer, description, quantity, value, country of origin, and HS codes of the goods, and customs uses it to assess duties and taxes.
- Commodity#
- The type of goods being shipped - auto parts, food products, raw materials, consumer goods, etc.
- Consignee#
- The party that receives the shipment at destination, as named on the bill of lading. In cross-border freight the consignee is often, but not always, the importer of record.
- Consignor#
- The party that sends the shipment - usually the shipper or seller. The consignor is named on the bill of lading alongside the consignee.
- Cross-Docking#
- A logistics practice where products from a supplier are distributed directly to a customer with minimal or no storage time at the dock.
- Customs Bond#
- A financial guarantee filed with customs ensuring that duties, taxes, and penalties owed on imported goods will be paid. Required for most commercial imports into the US.
- Customs Broker#
- A professional who handles customs clearance for goods crossing international borders, including documentation and duty payments.
- Customs Clearance#
- The process of getting goods approved by a country's customs authority so they can legally enter. It includes submitting documents like the commercial invoice, classifying goods, and paying any duties or taxes, usually handled by a customs broker.
D
- Deadhead#
- Miles a truck drives empty without a load, typically between delivery and the next pickup. Deadhead miles add cost.
- Dedicated Fleet#
- Trucks and drivers assigned exclusively to one shipper, providing consistent capacity and service levels.
- Detention#
- A charge assessed when a truck is held at a facility beyond the allowed free time for loading or unloading.
- Drayage#
- Short-distance transportation of freight, typically between a port or rail terminal and a warehouse or distribution center.
- Dry Van#
- A standard enclosed trailer used to transport non-perishable freight. The most common type of trailer in trucking.
- Duty#
- A tax charged by customs on imported goods, usually calculated as a percentage of their declared value based on the goods' HS code and country of origin.
F
- FAST (Free and Secure Trade)#
- A joint US-Canada program that offers expedited border processing for pre-approved, low-risk carriers, drivers, and importers using dedicated FAST lanes at major crossings.
- Flatbed#
- An open trailer without sides or a roof, used for oversized, heavy, or irregularly shaped freight like construction materials or machinery.
- FMCSA#
- Federal Motor Carrier Safety Administration - the US federal agency responsible for regulating and overseeing commercial motor vehicles.
- Freight Class#
- A standardized classification system (classes 50–500) used in LTL shipping based on density, handling, stowability, and liability.
- FSMA#
- Food Safety Modernization Act - US law requiring preventive controls for food safety, including sanitary transportation rules for food freight.
- FTL (Full Truckload)#
- A shipment that fills an entire trailer, typically 10,000–45,000 lbs. The shipper pays for exclusive use of the trailer.
H
- HS Code (Harmonized System Code)#
- An internationally standardized number used to classify traded products. Customs uses the HS code to determine duty rates and any import restrictions.
I
- Importer of Record (IOR)#
- The party legally responsible for making sure imported goods comply with all customs laws and that duties and taxes are paid.
- In-Bond#
- Freight that moves under customs control from the port of arrival to another location before formal customs clearance, carried by a bonded carrier.
- Incoterms#
- Standard trade terms published by the International Chamber of Commerce (such as EXW, FCA, DAP, and DDP) that define who pays for shipping, insurance, and duties, and where responsibility transfers from seller to buyer.
- Intermodal#
- Freight transportation using two or more modes (typically truck + rail) in a single journey, using standardized containers.
L
- Lane#
- A specific origin-destination pair for shipping freight, e.g., Detroit to Toronto or Chicago to Dallas.
- Linehaul#
- The movement of freight between two cities, excluding pickup and delivery charges.
- LTL (Less Than Truckload)#
- A shipment that doesn't require a full trailer - typically 150–10,000 lbs. Multiple shippers share truck space.
M
- MC Number#
- Motor Carrier number issued by the FMCSA. Required for carriers operating in interstate commerce.
P
- PAPS (Pre-Arrival Processing System)#
- The US CBP system for pre-clearing truck freight entering the United States. A barcoded PAPS number is attached to the shipment so the customs broker can submit entry before the truck reaches the border.
- PARS (Pre-Arrival Review System)#
- The CBSA system for pre-clearing truck freight entering Canada. A barcoded PARS number lets the customs broker submit release documents before the truck arrives at the border.
- POD (Proof of Delivery)#
- A document signed by the consignee confirming receipt of the shipment. Essential for billing and claims.
- Port of Entry#
- A designated border crossing or port where customs officers inspect and clear goods and travelers entering a country, such as the Ambassador Bridge in Detroit-Windsor.
Q
- Quick Pay#
- An expedited payment option for carriers, typically paying within 2–7 days instead of the standard 30–45 day terms.
R
- Reefer#
- A refrigerated trailer used to transport temperature-sensitive freight like food, pharmaceuticals, or chemicals.
S
T
- Tariff#
- A published schedule of rates, charges, and rules for freight transportation services.
- TMS (Transportation Management System)#
- Software used to plan, execute, and optimize the movement of goods. Includes quoting, booking, tracking, and reporting.
- Transit Time#
- The number of days it takes for freight to travel from origin to destination.
U
- USMCA / CUSMA#
- The United States-Mexico-Canada Agreement (called CUSMA in Canada), the trade agreement that replaced NAFTA in 2020 and allows qualifying goods to cross between the three countries duty-free.
W
- What Is a Freight Broker?#
- A freight broker is a licensed company that connects shippers who need freight moved with vetted carriers that have the trucks to move it. The broker negotiates rates, arranges pickup and delivery, tracks shipments, and handles paperwork - but does not own the trucks itself. Brokers must be licensed by the FMCSA and carry a surety bond.
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