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Over the Road Logistics Solutions
Knowledge Centre

Freight & Logistics Glossary

Plain-language definitions of 122+ shipping and logistics terms — from BOL and LTL to chain of custody and CUSMA. Built for Canadian shippers.

3

3PL (Third-Party Logistics)

General

A company that provides outsourced logistics and supply chain services — including freight brokerage, warehousing, distribution, and transportation management — on behalf of shippers.

OTR Logistics Solutions operates as a 3PL, providing freight brokerage and warehousing services for shippers across Canada and the US.

A

Accessorial Charges

Pricing & Fees

Fees added to a base freight rate for services beyond standard pickup and delivery, such as liftgate use, inside delivery, residential delivery, or appointment scheduling.

Always ask for a complete list of potential accessorials when requesting a quote — they can add 10–30% to a shipment cost if not accounted for in advance.

Accessory Equipment

General

Load-securing equipment beyond standard straps, such as edge protectors, dunnage bags, load bars, blocking, and bracing used to stabilize freight inside a trailer.

ACE (Automated Commercial Environment)

Cross-Border

The U.S. Customs and Border Protection's automated platform for processing import and export declarations for freight entering or leaving the United States.

ACI (Advance Commercial Information)

Cross-Border

Canada's pre-arrival electronic cargo reporting system, requiring carriers to submit shipment data to CBSA before the freight physically crosses the Canadian border.

Your carrier or customs broker handles ACI filing. Errors or late filings can hold your freight at the border.

Additional Handling

Pricing & Fees

An accessorial fee charged when a shipment requires extra care during loading or transport due to non-standard packaging, unusual dimensions, or characteristics that prevent normal automated handling.

Common triggers include oversized dimensions, cylindrical items, and packages exceeding standard belt-conveyor width. Check the carrier's tariff for specific additional handling thresholds.

Adult Signature Required

General

A delivery service requiring the carrier to verify the recipient's age before releasing a shipment, ensuring age-restricted goods are received only by a legally eligible adult.

Adult signature is a standard requirement for cannabis deliveries at licensed retail stores and provincial distribution centres. Confirm the requirement with the receiving facility before booking.

Air Ride Suspension

Equipment

A trailer suspension system that uses pressurized air bags instead of steel leaf springs to cushion freight during transit, reducing vibration and road shock for fragile or sensitive cargo.

Carriers serving pharmaceutical, electronics, or cannabis shippers often require air ride suspension to protect sensitive loads from road vibration.

All-In Rate

Pricing & Fees

A freight quote that bundles linehaul, fuel surcharge, and standard accessorials into a single price, giving shippers cost certainty without per-component billing surprises.

All-in rates simplify budgeting but may be priced conservatively — compare against a base-plus-FSC quote to confirm which offers better value on your lane.

Approved Carrier

Cannabis

A carrier vetted by a licensed cannabis producer to transport cannabis, based on the carrier's equipment, insurance, lane experience, and ability to follow the LP's handling, security and documentation requirements.

LPs are responsible for ensuring every carrier used has been reviewed and approved before a cannabis shipment departs.

B

Backhaul

General

A return load a carrier picks up in the destination city after completing a delivery, allowing the truck to haul revenue freight on the return trip rather than running empty.

Backhaul availability strongly affects freight rates — carriers discount heavily on lanes where return freight is plentiful, and charge a premium on one-way lanes.

Bill of Lading (BOL)

Documents

The primary shipping document that serves as a receipt for the freight, a contract of carriage between the shipper and carrier, and a document of title for the goods being transported.

A complete, accurate BOL is legally required for every shipment. Errors on the BOL — wrong weight, wrong commodity, wrong consignee — can cause delays, claims, or refused delivery.

Bobtail

Equipment

A tractor operating without a trailer attached, typically returning empty to a terminal or depot after delivering a load.

Bond (Customs Bond)

Cross-Border

A financial guarantee required by customs authorities that ensures import duties, taxes, and penalties will be paid if the importer fails to comply with customs regulations.

Most commercial imports into the U.S. require a customs bond. Your licensed customs broker arranges this.

Broker (Freight Broker)

General

A licensed intermediary who arranges transportation between shippers and carriers, managing booking, carrier vetting, documentation coordination, and shipment tracking — without taking physical possession of the freight.

A freight broker's value is carrier access, expertise, and accountability. In Canada, freight brokers are not required to hold a federal licence, but operate under provincial business law.

C

C-TPAT (Customs-Trade Partnership Against Terrorism)

Cross-Border

A voluntary U.S. Customs and Border Protection program in which importers, carriers, and logistics providers adopt supply chain security best practices in exchange for expedited processing and reduced border inspections.

Cannabis Act

Cannabis

Canada's federal legislation (S.C. 2018, c. 16) that legalized and regulates the production, distribution, sale, and possession of cannabis, including strict requirements for commercial transportation.

All cannabis transportation must comply with the Cannabis Act. Licensed producers are accountable for carrier selection and maintaining chain-of-custody records.

Cargo Insurance Certificate

Documents

A document issued by an insurer or freight broker confirming that a specific shipment is covered under a cargo insurance policy, detailing the coverage limit, commodity description, and any applicable exclusions.

Standard carrier liability is limited and often far below the actual value of the goods. A cargo insurance certificate confirms your shipment has additional protection beyond what the carrier's tariff provides.

Carrier

General

A company or individual that physically transports freight using their own equipment and drivers, operating under a commercial carrier licence.

Carriers are distinct from freight brokers — carriers own or lease the trucks; brokers arrange the transportation. OTR Logistics Solutions works as a broker, matching shippers with vetted carriers.

Carrier Liability

Pricing & Fees

The maximum amount a carrier is legally obligated to pay for lost or damaged freight under the terms of their tariff or contract, typically set at a dollar amount per pound — well below most freight's actual market value.

Carrier liability is not cargo insurance. A standard dry van tariff may cap liability at $2–5/lb — far below the replacement value of most commercial goods. Purchase separate cargo insurance to cover the gap.

CBP (U.S. Customs and Border Protection)

Cross-Border

The U.S. federal agency responsible for regulating and facilitating international trade, enforcing customs laws, and managing entry of goods into the United States.

CBSA (Canada Border Services Agency)

Cross-Border

The Canadian federal agency responsible for enforcing customs laws, border security, and immigration at all ports of entry into Canada.

Certificate of Origin (CO)

Cross-Border

A trade document that declares the country in which a product was manufactured or substantially produced, used by customs authorities to determine applicable duty rates and trade agreement eligibility.

For CUSMA-qualified shipments, a completed Certificate of Origin allows goods to enter the U.S. or Canada duty-free. Missing or incorrect COs result in unnecessary duty charges.

Chain of Custody

Cannabis

A documented, unbroken record of who had control of a shipment at every stage — from shipper pickup through carrier transit to consignee delivery — with no gaps or unauthorized transfers.

Chain of custody is legally mandatory for cannabis shipments in Canada. Any gap in the documentation chain creates regulatory exposure for the licensed producer.

COD (Collect on Delivery)

Pricing & Fees

A payment arrangement where the carrier collects freight charges, the declared value of the goods, or both from the consignee at the time of delivery before releasing the shipment.

COD service must be arranged with the carrier before pickup and typically carries a COD surcharge. If the consignee refuses or cannot pay, the freight is returned and the shipper remains liable for all charges.

Cold Chain

Equipment

An unbroken series of temperature-controlled steps — pre-cooling, loading, transit, and delivery — that maintains a specific temperature range for perishable or temperature-sensitive freight from origin to destination.

The 'chain' fails the moment any link breaks. A warm trailer at pickup, excessive door opening, or a border delay without monitoring can compromise the entire cold chain.

Commercial Invoice

Documents

A document issued by the seller/exporter to the buyer/importer that details the goods being sold, their value, and terms of the sale — required by customs authorities for valuing and clearing cross-border shipments.

Consignee

General

The person or company to whom the freight is addressed and who receives the shipment at its destination.

Consignor

General

The person or company sending the freight — the shipper named on the bill of lading as the party delivering goods to the carrier.

Contract Rate

Pricing & Fees

A pre-negotiated freight rate agreed upon between a shipper and carrier (or broker) for a defined volume of shipments over a specified time period, typically offering more price stability than spot rates.

Contract rates are ideal for predictable, recurring freight lanes. They trade flexibility for cost certainty.

Country of Origin

Cross-Border

The country where goods were substantially manufactured or produced, as determined by customs rules of origin — distinct from the country they were shipped from.

Country of origin determines which duty rates and trade agreements apply. Misrepresenting origin is considered customs fraud and carries serious penalties.

Cross-Docking

General

A logistics process where inbound freight is transferred directly from receiving to outbound shipping with minimal or no storage time — often used for LTL consolidation or distribution hub operations.

CTR (Cannabis Tracking Report)

Cannabis

A Health Canada reporting requirement under the Cannabis Tracking System (CTS) that licensed cannabis businesses use to report inventory movements, including shipments between licensed entities.

CTR entries must be accurate and complete before a cannabis shipment departs. Missing or incorrect entries create compliance gaps.

Cube Van

Equipment

A small, fully enclosed cargo vehicle with a box body on a light- or medium-duty chassis, used for local and last-mile deliveries where a full-size tractor-trailer is impractical.

Curtain-Side Trailer

Equipment

A trailer with retractable tarpaulin curtains on the sides instead of solid walls, allowing palletized freight to be loaded or unloaded from either side by forklift — eliminating the need for dock access.

Curtain-sides are common in Canadian general freight. They offer faster loading than dry vans but provide less weather protection for moisture-sensitive goods.

CUSMA / USMCA

Cross-Border

The Canada-United States-Mexico Agreement (called USMCA in the U.S.) is the trade agreement that replaced NAFTA in 2020, governing tariffs, rules of origin, and trade between the three countries. Goods that qualify under CUSMA rules of origin may enter duty-free.

Shipping cross-border without a valid CUSMA Certificate of Origin when the goods qualify means paying unnecessary duties. OTR Hub includes a CUSMA certificate generator.

CWT (Hundredweight)

Pricing & Fees

A pricing unit equal to 100 pounds (lbs), used in LTL freight pricing. LTL rates are typically quoted as a dollar amount per CWT — so a shipment rated at $25/CWT would cost $250 to move 1,000 lbs.

D

Dead Freight

Pricing & Fees

A fee charged to a shipper who books a full truckload but tenders less freight than agreed, compensating the carrier for the unused trailer capacity they reserved.

Deadhead

General

Miles driven by a truck without any freight — typically the empty return trip after delivering a load. Carriers factor deadhead miles into their pricing on lanes with limited backhaul freight.

Declared Value

Pricing & Fees

The value a shipper states for a shipment on the bill of lading or booking form, which sets the ceiling for carrier liability in the event of loss or damage — distinct from the goods' actual invoice value.

Declaring a higher value increases the carrier's liability limit but usually triggers a valuation surcharge. Declaring below actual value caps any claim recovery at the declared amount, not the real replacement cost.

Demurrage

Pricing & Fees

A fee charged when freight-carrying equipment (rail car, container, chassis) is held beyond the agreed free time at a terminal, port, or rail facility.

Demurrage is distinct from detention: demurrage applies to equipment at a terminal or port; detention applies to a truck at a shipper or consignee facility.

Detention

Pricing & Fees

A fee charged when a truck is held at a shipper's or consignee's facility beyond the agreed free time (typically 2 hours), compensating the driver for time lost waiting to load or unload.

Detention is one of the most common and avoidable extra charges. Have freight ready before the driver arrives, and communicate delays immediately.

Dimensional Weight (DIM Weight)

Pricing & Fees

A freight pricing method where charges are based on the volume a shipment occupies (length × width × height ÷ a carrier divisor) rather than actual weight, applied when the dimensional weight exceeds the actual weight.

Large, lightweight shipments — such as foam, clothing, or empty packaging — are nearly always billed at DIM weight by courier and parcel carriers. Compact packaging reduces DIM weight and lowers your bill.

Dispatcher

General

A person responsible for coordinating the assignment of carriers to loads, communicating pickup and delivery instructions, and tracking shipments in transit.

Drayage

General

Short-distance transportation of freight — typically the movement of a shipping container from a port or rail terminal to a nearby warehouse, distribution centre, or other facility.

Drop Trailer

General

A carrier arrangement where an empty trailer is left at a shipper's facility for loading at their own pace, then picked up by the carrier later — eliminating the need to coordinate a driver during the loading window.

Drop trailer programs suit high-volume shippers with flexible schedules. A daily or weekly trailer usage fee may apply if the trailer sits beyond the agreed free period.

Dry Van

Equipment

An enclosed, unrefrigerated trailer used for general freight that does not require temperature control. The most common trailer type in North American trucking.

Dry vans protect freight from precipitation and direct sun but track ambient temperatures. They are not appropriate for temperature-sensitive freight in Canadian winter or summer conditions.

Dunnage

General

Packaging material — including airbags, foam, wood, or cardboard — placed around freight inside a trailer to fill voids, prevent shifting, and protect the load during transit.

Duty

Cross-Border

A tax levied by a government on goods imported into or exported from a country, calculated as a percentage of the declared customs value and determined by the goods' HS code and country of origin.

CUSMA/USMCA qualification eliminates most duties on qualifying goods traded between Canada, the U.S., and Mexico. Always confirm eligibility before pricing a cross-border shipment.

E

EDI (Electronic Data Interchange)

Documents

The electronic exchange of standardized shipping documents — such as bills of lading, advance ship notices, and invoices — between trading partners using a standardized data format.

Excise Stamp

Cannabis

A federally issued, province-specific tax stamp that must be affixed to all cannabis products intended for retail sale in Canada before they leave the licensed producer's facility, evidencing that excise duty has been paid.

Shipping cannabis without the correct provincial excise stamp affixed is a serious regulatory offence. Verify stamp compliance on every outbound cannabis shipment.

Expedited Freight

General

Freight moved on an accelerated timeline using dedicated equipment, direct routing, and team drivers when necessary — used when standard transit times are insufficient for the delivery requirement.

Expedited freight typically costs 30–100% more than standard service. It is justified for time-critical product launches, production line outages, or missed shipment recovery.

F

FAST (Free and Secure Trade)

Cross-Border

A joint CBSA and CBP trusted trader program that pre-approves low-risk carriers, importers, and drivers for expedited clearance at major Canada-U.S. border crossings, significantly reducing inspection times and border delays.

FAST-approved shipments use dedicated FAST lanes at participating border crossings. Qualification requires background checks, security upgrades, and a clean compliance history.

Flatbed Trailer

Equipment

An open trailer with no sides or roof, used for oversized, heavy, or irregularly shaped freight that cannot fit inside a standard enclosed trailer — such as construction materials, machinery, and steel coil.

FOB (Free On Board)

General

A shipping term that defines where ownership and risk of the freight transfers from the seller to the buyer. 'FOB Origin' means the buyer owns the freight once it leaves the seller's dock; 'FOB Destination' means the seller retains ownership and risk until delivery.

FOB terms directly affect who files an insurance claim if freight is damaged in transit.

Free Time

Pricing & Fees

The period specified in a carrier's tariff during which a shipper or consignee may load, unload, or retain equipment without incurring additional detention, demurrage, or storage charges.

Truck free time is typically 2 hours; container and chassis free time at ports and terminals is often 24–72 hours before daily charges begin. Know your free time windows before scheduling freight movement.

Freight Broker

General

See Broker (Freight Broker).

Freight Class

Pricing & Fees

A standardized LTL pricing category (classes 50–500) assigned to freight based on density, stowability, handling, and liability. Lower classes (denser, easier to handle) earn lower rates; higher classes earn higher rates.

Misclassifying freight is one of the most common causes of unexpected carrier invoices. Use the OTR Hub Freight Class Calculator to verify your class before booking.

Freight Collect

Pricing & Fees

A payment arrangement where the consignee — not the shipper — is responsible for paying all freight charges upon delivery, the opposite of a prepaid shipment.

Freight collect must be confirmed with the carrier before pickup. If the consignee refuses or disputes the charges, the carrier may hold the freight and the shipper typically remains the party of last resort.

Freight Density

Pricing & Fees

The weight of freight per cubic foot (PCF — pounds per cubic foot), calculated by dividing the total weight of the shipment by its total cubic footage. Density directly determines freight class for LTL shipments.

FTL (Full Truckload)

General

A shipment that fills an entire trailer, moving as a dedicated load directly from origin to destination without stops or transfers. FTL is priced per mile or per load, not by weight or class.

FTL is typically more economical than LTL for shipments over 10,000–15,000 lbs or 10+ pallets. It also offers better transit times and fewer handling touchpoints.

Fuel Surcharge (FSC)

Pricing & Fees

A variable charge added to freight rates to offset fluctuations in diesel fuel costs. FSC is typically calculated as a percentage of the linehaul rate and adjusts weekly or monthly based on published fuel price indices.

FSC is quoted separately from base rates and changes regularly. Use the OTR Hub Fuel Surcharge Calculator to estimate current FSC on any lane.

G

Gross Weight

General

The total weight of a shipment including the freight, all packaging, and pallets. Carriers use gross weight to assess freight charges and confirm the load is within legal weight limits.

H

Hazmat (Hazardous Materials / Dangerous Goods)

Documents

Substances or materials that pose a risk to health, safety, property, or the environment during transportation, regulated under Canada's Transportation of Dangerous Goods Act (TDG) and the U.S. Hazardous Materials Regulations (HMR).

Hazmat shipments require special documentation, packaging, placarding, and carrier certification. Non-compliance carries significant legal penalties.

Health Canada

Cannabis

The federal department responsible for regulating cannabis in Canada under the Cannabis Act, including licensing of producers, processors, and distributors, and enforcement of transportation and tracking requirements.

HOS (Hours of Service)

General

Federal regulations governing how many hours a commercial truck driver may drive and work before mandatory rest periods. In Canada, regulated by Transport Canada; in the U.S., by FMCSA.

HOS limits directly affect transit times. A driver who reaches their legal limit mid-route must stop regardless of delivery urgency.

HS Code (Harmonized System Code)

Cross-Border

A standardized international numeric code (6–10 digits) used by customs authorities worldwide to classify traded goods, determine applicable duty rates, and compile trade statistics.

An incorrect HS code on a customs entry can result in wrong duty charges, customs holds, or penalties. Verify the correct code with a licensed customs broker before filing.

I

In-Bond Shipment

Cross-Border

A U.S. Customs designation that allows imported freight to move from one U.S. port to another — or through the U.S. to a foreign destination — under seal and customs supervision without paying duties at the port of entry.

In-bond movements are common for Canadian goods transiting U.S. territory. The shipment must arrive at the bonded destination within a specified time period.

Inside Delivery

General

An accessorial service where the driver brings freight beyond the dock door or threshold — into a building, retail floor, or a specific room — rather than leaving it at the nearest accessible point.

Inside delivery is a common requirement at cannabis retail stores and provincial distribution centres. Confirm whether it is included in the quoted rate or billed separately as an accessorial.

Inside Pickup

General

An accessorial service where the driver enters the origin premises to collect freight rather than having it staged at a dock or curbside — required when heavy or awkward items cannot be moved to the loading area by the shipper.

Inside pickup must be declared at booking. Failing to request it in advance may result in driver refusal or a surprise accessorial charge after the pickup is completed.

Intermodal

General

Freight transported using two or more modes of transport — typically truck plus rail — within a single shipping container, without handling the freight itself during mode changes.

Intermodal is generally cheaper than FTL on long hauls (1,000+ miles) but adds 1–3 days of transit time compared to direct truckload service.

ISF (Importer Security Filing)

Cross-Border

A U.S. Customs requirement (also called '10+2') that importers submit 10 data elements about ocean shipments at least 24 hours before loading at the foreign port.

L

Lane

General

A specific origin-to-destination shipping corridor, such as Toronto to Calgary or Mississauga to Chicago. Freight rates, carrier availability, and transit times vary significantly by lane.

Last Mile

General

The final segment of a delivery journey — from a carrier terminal, distribution hub, or cross-dock to the end customer or final destination — typically the most expensive and time-consuming leg per kilometre.

Last-mile costs can represent 40–50% of total shipping costs in urban markets. Choosing the right carrier or courier for this segment has an outsized impact on delivery performance.

Licensed Producer (LP)

Cannabis

A company licensed by Health Canada under the Cannabis Act to produce, process, or sell cannabis for medical or adult-use purposes in Canada.

LPs are legally responsible for ensuring all cannabis they ship is handled by carriers vetted for their cannabis documentation, security and handling requirements, with documented chain-of-custody throughout.

Liftgate

Equipment

A hydraulic platform on the rear of a truck that raises and lowers freight between ground level and the trailer floor, used when a loading dock is not available at pickup or delivery.

Liftgate service is an accessorial charge — not included in standard freight rates. Request it at booking, not at delivery.

Linear Footage

Pricing & Fees

The length of trailer floor space a shipment occupies, measured in feet. LTL carriers that price by linear footage (common in Canada) charge based on how much of the trailer floor the freight takes up, regardless of weight.

Long but light shipments often cost more under linear footage pricing than weight-based pricing. Use the OTR Hub Linear Footage Calculator to compare.

Linehaul

Pricing & Fees

The base transportation charge for moving freight from origin to destination, excluding accessorial fees, fuel surcharges, and other add-ons. Linehaul is typically the largest component of a freight invoice.

LTL (Less-Than-Truckload)

General

A shipment that occupies only part of a trailer, sharing space and cost with freight from other shippers. LTL is priced by weight, freight class, and lane.

LTL freight changes hands multiple times at carrier terminals, increasing the risk of damage compared to FTL. Proper packaging and correct freight class classification are essential.

M

Manifest

Documents

A detailed list of all freight aboard a vehicle or vessel, including descriptions, quantities, weights, and consignee information. For cannabis shipments, the manifest must include batch numbers and quantities.

Minimum Charge

Pricing & Fees

The lowest freight charge a carrier will accept for any shipment, regardless of actual weight, dimensions, or distance — applied when a shipment is too small to cover the carrier's handling costs at the standard rate.

Small, light LTL shipments frequently trigger minimum charges. Consolidating multiple small shipments into one can eliminate or significantly reduce minimum charge impact.

N

NMFC (National Motor Freight Classification)

Pricing & Fees

A standardized system published by the NMFTA that assigns freight class codes (50–500) to commodities based on density, stowability, handling, and liability. Used by LTL carriers to set rates.

O

OCS (Ontario Cannabis Store)

Cannabis

The Ontario government's sole cannabis wholesale distributor, responsible for purchasing cannabis from licensed producers and distributing it to authorized Ontario retailers.

Deliveries to OCS require advance booking appointments, specific documentation formats, and carrier familiarity with OCS receiving protocols.

Over, Short & Damaged (OS&D)

Documents

A notation on a delivery receipt indicating that the freight received was more than shipped (over), less than shipped (short), or arrived in damaged condition. OS&D claims must be documented at delivery.

Always inspect freight before signing the delivery receipt. Signing without noting visible damage can significantly weaken a subsequent freight claim.

P

Packing List

Documents

A document that details the contents of each package or carton in a shipment — item descriptions, quantities, weights, and dimensions — used by carriers, customs, and receivers to verify the shipment.

Pallet / Skid

General

A flat, portable platform (typically wooden, 40"×48" in North America) used to consolidate, store, and transport freight. 'Pallet' and 'skid' are used interchangeably in most freight contexts.

Pallet count and dimensions directly affect trailer space calculations, linear footage charges, and whether your shipment qualifies as LTL or FTL.

PAPS (Pre-Arrival Processing System)

Cross-Border

Canada's system for pre-clearing commercial truck shipments before they arrive at the Canadian border. Carriers submit shipment data electronically, and CBSA reviews it in advance to expedite border crossing.

Payload

General

The actual weight of the freight carried by a truck, excluding the weight of the vehicle (tare weight). Legal payload limits are set by provincial and federal axle weight regulations.

PDA (Provincial Distribution Authority)

Cannabis

A government-authorized cannabis distributor operating in a Canadian province — such as the OCS (Ontario), BCLDB (BC), AGLC (Alberta), or SQDC (Quebec) — responsible for wholesaling cannabis to authorized retailers.

Peak Season Surcharge

Pricing & Fees

A temporary additional charge applied by carriers during high-demand shipping periods — typically October through January — when capacity tightens and operational costs rise with increased freight volumes.

Peak surcharges can add $50–$200 or more per shipment. Plan Q4 freight early: book capacity in advance, consider locking in contract rates, and budget for peak fees before quoting your customers.

PIP (Partners in Protection)

Cross-Border

A Canada Border Services Agency voluntary program in which importers, carriers, and other trade chain partners adopt enhanced security procedures in exchange for expedited border processing.

POD (Proof of Delivery)

Documents

A signed document (or electronic record) confirming that a shipment was delivered to the consignee at the specified location and time. The signed POD is the carrier's evidence of successful delivery.

Retain all PODs — they are essential for resolving billing disputes, damage claims, and compliance audits. For cannabis, PODs are part of the required chain-of-custody documentation.

Pre-Cooling

Equipment

The process of bringing a refrigerated trailer to the required temperature set point before loading temperature-sensitive freight. Pre-cooling must be complete before the first item is loaded.

Loading product into a warm trailer and then starting the reefer unit cannot adequately cool the freight during transit — the unit maintains temperature, it doesn't rapidly chill a warm load.

Provincial Distributor

Cannabis

See PDA (Provincial Distribution Authority).

R

Rate Confirmation

Documents

A document issued by a freight broker to a carrier that confirms the agreed rate, pickup and delivery details, and terms for a specific load. Both parties must sign before the carrier picks up the freight.

Rate Shopping

Pricing & Fees

The practice of requesting and comparing freight quotes from multiple carriers or brokers before committing to a shipment, to find the best combination of price, transit time, and service level.

A freight broker like OTR Logistics Solutions does rate shopping across a vetted carrier network on your behalf, saving the time and effort of contacting carriers individually.

Redelivery

Pricing & Fees

A charge assessed when a carrier cannot complete delivery on the first attempt — because no one was present, the location was inaccessible, or the consignee refused the shipment — and must make a subsequent delivery attempt.

Redelivery charges are fully avoidable: ensure someone with authority to accept the shipment is available during the delivery window and that the consignee is expecting the freight.

Reefer (Refrigerated Trailer)

Equipment

A trailer equipped with an active diesel-powered refrigeration unit capable of maintaining any temperature from approximately -30°C to +30°C, used for temperature-sensitive freight.

Reefer freight costs 15–30% more than dry van freight. Specify your required set point, acceptable range, and pre-cooling requirements in writing at booking.

Remote Area Surcharge

Pricing & Fees

An additional fee for pickups or deliveries at locations outside a carrier's standard service network — typically rural, northern, or difficult-to-access areas requiring extra drive time or specialized routing.

Remote surcharges vary widely by carrier and can be significant on deliveries to northern or rural Canadian communities. Verify coverage and confirm the surcharge amount before quoting any shipment to a remote destination.

Residential Surcharge

Pricing & Fees

An additional fee applied when freight is picked up from or delivered to a residential address, reflecting the extra time and complexity of residential stops compared to commercial dock facilities.

Even a home-based business address may attract a residential surcharge. If the delivery point has a loading dock or is in a commercial zone, confirm with your carrier whether the charge applies before quoting.

S

Seal

Documents

A numbered, tamper-evident device affixed to a trailer or container door after loading that provides visible evidence of whether the cargo compartment has been accessed during transit.

Seal numbers must be recorded on the BOL and verified intact at delivery. A broken or missing seal is grounds for an OS&D notation and may affect damage claim outcomes.

Security Cleared Driver

Cannabis

A commercial driver who has completed background verification acceptable to a licensed cannabis producer, as required by the Cannabis Act regulations before transporting cannabis.

Each LP sets their own driver vetting standards, which may exceed the regulatory minimum. Confirm clearance requirements with the LP before assigning a driver to a cannabis load.

Seed-to-Sale Tracking

Cannabis

Health Canada's requirement that every unit of cannabis be tracked from cultivation through processing, packaging, sale, and destruction using the Cannabis Tracking System, with no gaps in the documentation chain.

Any unrecorded cannabis movement — including an internal transfer within a licensed site — is a regulatory violation. Transport events must be logged in the CTS promptly.

Shipper

General

The company or individual who tenders freight for transportation — the origin party who arranges for goods to be moved from their location to a destination.

Signature Required

Documents

A delivery instruction directing the carrier to obtain a written or electronic signature from the consignee before releasing the shipment, creating a documented record that the freight changed hands.

Signature required is standard practice for high-value, pharmaceutical, and cannabis shipments. The signed delivery receipt is essential for freight claim resolution and regulatory compliance audits.

Skid

General

See Pallet / Skid.

Spot Rate

Pricing & Fees

A one-time freight rate negotiated for a single shipment based on current market conditions — as opposed to a pre-negotiated contract rate. Spot rates fluctuate with supply and demand.

Spot rates can be significantly higher or lower than contract rates depending on the season and lane. Booking spot in a tight market can be expensive; in a loose market it can be a bargain.

Step-Deck Trailer

Equipment

A flatbed trailer with two deck levels — a higher front deck and a lower rear deck — allowing taller freight to be carried within legal height limits that a standard flatbed would not accommodate.

Straight Truck

Equipment

A single-unit vehicle where the cab and cargo box are on the same chassis — as opposed to a tractor-trailer combination. Straight trucks are typically 20–26 feet long and used for local, regional, and time-critical deliveries.

T

Tamper-Evident Packaging

Cannabis

Packaging that displays visible signs of interference if the seal or closure is broken before reaching the consumer, required under the Cannabis Act for all retail cannabis products.

Carriers transporting cannabis must ensure tamper-evident packaging remains fully intact throughout transit. Any damaged packaging must be reported immediately to the LP.

Tanker Trailer

Equipment

A specialized trailer designed to carry liquid or gaseous bulk commodities — such as petroleum, food-grade liquids, chemicals, or compressed gas — in a sealed cylindrical vessel.

Tare Weight

General

The weight of an empty vehicle or container, excluding its cargo. Gross weight minus tare weight equals payload.

Tariff

Cross-Border

A government-imposed schedule of taxes on imported or exported goods, used to protect domestic industries, raise revenue, or as a trade policy instrument — distinct from a specific duty charge on a single commodity.

Tariff changes between Canada and the U.S. directly affect the landed cost of cross-border goods. Monitor applicable tariff rates when pricing import or export shipments.

TDG (Transportation of Dangerous Goods)

Documents

Canada's federal act (Transportation of Dangerous Goods Act, S.C. 1992, c. 34) and associated regulations governing the safe transportation of hazardous materials by road, rail, air, and water.

Temperature Logger

Equipment

A device placed inside a refrigerated trailer that continuously records the internal temperature throughout a shipment, creating a timestamped log used for compliance documentation and insurance claims.

Temperature loggers are strongly recommended — and often required — for pharmaceutical, cannabis, and high-value produce shipments. Without a log, temperature damage claims are difficult to substantiate.

Tractor-Trailer

Equipment

A combination vehicle consisting of a powered tractor unit pulling a separate trailer. The standard 53-foot tractor-trailer is the most common FTL equipment type in North American trucking.

Transfer Document

Cannabis

The required documentation accompanying every movement of cannabis between licensed entities in Canada, detailing the origin LP, destination LP, product descriptions, quantities, batch numbers, and transport information.

Transfer documents must be completed and approved before a cannabis shipment departs, and the driver must carry them throughout transit — they may be requested at any point by inspectors.

Transit Time

General

The number of business days between when a carrier picks up freight and when it is delivered to the consignee. Transit times vary by lane, service level, and mode of transport.

LTL transit times are typically longer than FTL due to terminal transfers. Quote transit times are estimates, not guarantees, unless you book guaranteed service.

V

Volume Rate

Pricing & Fees

A discounted freight rate offered to shippers who commit to moving a defined volume of shipments with a carrier or broker over a contract period, rewarding consistent business with lower per-shipment costs.

Volume rate commitments require accurate forecasting — under-tendering against a volume commitment can result in penalties or rate renegotiation.

W

Waybill

Documents

A document issued by a carrier that serves as a receipt for goods and provides instructions for handling and delivery. In LTL shipping, the carrier's pro number (waybill number) is used to track the shipment.

Weight Certificate

Documents

A certified document from a certified scale confirming the actual gross weight of a loaded vehicle. Required for cross-border shipments and sometimes requested to resolve weight disputes on invoices.

White-Glove Service

General

A premium delivery service involving extra care in handling, placement to the consignee's room of choice, and often assembly or packaging removal — going well beyond standard dock-to-dock or threshold delivery.

White-glove service is common for high-value consumer goods, medical equipment, and large electronics. It typically costs 2–4× standard delivery rates and requires advance scheduling.

Term Categories

GeneralPricing & FeesDocumentsEquipmentCross-BorderCannabis

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