FAK, NMFC, BOL, EDI, FOB, huh? If you find yourself frequently lost in Acronym Land, you must work in the transportation industry. And while we all throw around these letters freely, their actual meaning may get lost in the juggling. Here’s a quick overview of some of the more common acronyms, what they stand for and what the definition is.
FAK stands for Freight of All Kinds. It simply means a pooling of different products into one load for simplification of rating and pricing.
NMFC stands for National Motor Freight Classification and it’s the category of your freight as defined by the National Motor Freight Traffic Association (NMFTA). A shipment’s freight class determines the shipping charges. There are 18 freight classes ranging from class 50 (the least expensive) to class 500 (the most expensive.) This number gives can be complicated to determine for many shippers, but it’s best to get it right the first time to avoid an adjustment.
BOL stands for Bill of Lading. It’s the mandatory and legally binding paperwork providing the driver and the trucking company with all the details they need to process the shipment.
EDI stands for Electronic Data Interchange. This is the business-to-business interconnection of computers for the rapid exchange of documents such as bills of lading, invoices and tracking information. This is one way Freightquote notifies carriers of pickup requests, as well as receives invoice and tracking information.
FOB stands for Free on Board. It’s a designation used to indicate when liability and ownership of goods is transferred from a seller to a buyer. When used with an identified physical location, the designation determines which party has responsibility for the payment of the freight charges and at what point title for the shipment passes from the seller to the buyer.
That’s just a sampling of the hundreds of commonly used acronyms in the transportation industry. Check in with us frequently for more informational blog articles such as this. And if you ever find yourself wondering just what exactly some freight terminology means, give us a call at 800.323.5441. We’d be happy to clarify.