Freight & Logistics Glossary

The company or person that physically transports freight from origin to destination using their own trucks.

The business or individual that owns the cargo and arranges for it to be transported to a buyer or destination.

Goods or cargo transported in bulk by truck, rail, ship, or air in exchange for payment.

The person or company named to receive a shipment at its final destination.

An official Mexican tax registration document (issued by the SAT) that confirms a company or individual's fiscal status, required for invoicing and freight transactions.

An electronic manifest that declares cargo, carrier, and crossing details to customs authorities before a shipment enters or exits a country.

Standard Carrier Alpha Code — a unique 2-4 letter code assigned to a carrier for identification in shipping documents and customs systems.

Motor Carrier Number — a federal authorization number that permits a carrier to legally transport freight for hire.

National Motor Freight Classification — a standardized system used to classify freight for LTL shipping and determine pricing.

A federal permit issued by Mexico's transport ministry (SCT, now SICT) authorizing a carrier to operate freight vehicles on federal highways.

Registro Federal de Contribuyentes — Mexico's federal taxpayer registration number, required for invoicing and for carriers and shippers to operate legally.

A Mexican government program that allows manufacturers to temporarily import materials duty-free for processing and re-export, common among maquiladoras.

Insurance coverage that protects shippers and carriers against loss or damage to freight while in transit.

A registration program requiring carriers operating across certain jurisdictions to register and pay annual fees based on fleet size.

A device installed in trucks that automatically records driving hours to enforce hours-of-service compliance.

The process (or the person) responsible for assigning loads to trucks and drivers, coordinating pickups, routes, and delivery schedules.

A logistics practice where goods are unloaded from an incoming truck and directly loaded onto outbound trucks with little or no storage in between.

Extra time a truck and driver spend waiting at a pickup or delivery location beyond the agreed free time, often resulting in additional fees.

Less-Than-Truckload / Partial load — shipments that don't require a full truck, allowing multiple shippers' freight to share space.

An online marketplace where shippers post available freight and carriers search for loads to haul.

A manufacturing plant in Mexico, often near the U.S. border, that imports materials duty-free for assembly and export.

The practice of relocating manufacturing or supply chain operations closer to the end market, a trend driving growth in Mexican freight demand.

A company that arranges and coordinates shipments on behalf of shippers, often managing multiple carriers and modes of transport.

Third-Party and Fourth-Party Logistics providers — companies that manage part or all of a shipper's supply chain and transportation needs.

A financial service where a carrier sells its unpaid freight invoices to a third party for immediate cash, instead of waiting for the shipper to pay.

A secure facility authorized by customs to store imported goods without immediate payment of duties, until the goods are released or re-exported.

A payment option where a carrier receives payment for a load faster than standard terms, usually in exchange for a small fee.