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Road freight glossary

Cargavo is a TMS for freight brokers, and this glossary defines the 73 road-freight terms that decide a price: rate grids, chargeable weight, loading metres, fuel surcharge, margins, CMR and Incoterms. Every entry opens on one self-contained sentence, then explains how the concept behaves inside a pricing engine.

73 terms 9 themes 4 languages Updated

A road-freight glossary is a reference list of the vocabulary used to quote, buy and sell truck transport. This one is written from the inside of a pricing engine: each term is defined the way it actually changes a number on a quote, not the way a dictionary would phrase it.

Cargavo is a TMS for freight brokers and freight forwarders. The broker builds their own carrier rate grids, and the engine derives both the buy price and the sell price from them. That is why the entries name concrete mechanics: the four grid models weight_zone, pallet, mpl_bracket and hybrid_weight, the margin formula p/(1-m), quote and shipment references in the Q-YYYY-NNNN and S-YYYY-NNNN formats, seven currencies (EUR, USD, GBP, CHF, CAD, MAD, PLN) and four interface languages.

Limits. Numbers that depend on a carrier — kilograms per cubic metre, kilograms per loading metre, transit times, surcharge percentages — appear only inside worked examples, never as industry facts, because every carrier states its own. And Cargavo has no carrier API or EDI connection, is not a freight exchange, not a fleet management tool and not a tendering marketplace.

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All terms, A to Z

A

Abnormal load (oversize transport)

Freight modes

Also called: Oversize load · Heavy haulage · Exceptional transport

An abnormal load is a consignment exceeding the standard dimensions or weights set by Directive 96/53/EC, which makes the movement subject to national permits, defined routes and often escort vehicles rather than a normal freight tariff.

More detail

The ordinary European limits are 2.55 m width, 4 m height, 16.5 m length for an articulated combination and 40 tonnes gross combination weight. A shipment beyond any one of them leaves the standard regime and needs authorisation from each country and, in many cases, each region it crosses.

The price stops being a freight rate. It becomes a project cost covering the permit application, the route survey, the specialist trailer, escort vehicles, restricted travel times and, sometimes, temporary removal of street furniture. Lead times are measured in weeks, because the permits are.

Cargavo is a TMS for freight brokers and is not a permit or route-planning system: abnormal loads are handled as manual quotes. Because the customer portal accepts a quote request even where no rate grid covers the movement, an oversize enquiry still lands as a structured Q-YYYY-NNNN record instead of an untracked email.

Accessorial charges

Margins & surcharges

Also called: Extras · Ancillary charges · Surcharges

Accessorial charges are the priced services a carrier invoices on top of the base transport price — tail lift, delivery appointment, waiting time, inside delivery, ADR handling or redelivery — each triggered by a specific condition.

More detail

Accessorials are where quoted prices and invoiced prices diverge. The base rate covers a standard pickup and a standard delivery; everything the driver does beyond that has a line in the tariff.

The common ones in European road freight are tail-lift delivery, appointment booking, waiting beyond the free period, delivery to a private address, failed delivery and redelivery, pallet exchange, and handling of ADR goods. Each has a trigger condition, and the trigger is usually discovered on site rather than declared at booking.

For a broker, the discipline is to quote them at the same time as the base rate. A quote that omits a 35 EUR tail lift on a 90 EUR shipment has not undercharged by 35 EUR — it has erased the margin twice over.

Cargavo, a TMS for freight brokers, prices options alongside the base rate: tail lift, ADR, ad valorem insurance, delivery appointment and custom options defined per grid.

Ad valorem insurance

Margins & surcharges

Also called: Cargo insurance · Declared value cover · All-risk cover

Ad valorem insurance covers goods for their declared commercial value rather than their weight, and is bought on top of the carrier's statutory liability because that liability is capped per kilogram and is usually far below what the goods are worth.

More detail

Under the CMR Convention, a carrier's liability for loss or damage is limited to 8.33 special drawing rights per kilogram of gross weight, not the invoice value of the goods. A 200 kg pallet of electronics worth 40,000 EUR is therefore covered for a fraction of its value if the carrier's liability is all that applies.

Ad valorem cover closes that gap. The customer declares the value, the premium is a percentage of that value, and a claim is settled against the declared amount rather than the weight.

Two practical rules apply. The declaration has to be made before the goods move, and it has to appear on the consignment note. A value declared after a loss is not a declaration; it is a request.

In Cargavo, a TMS for freight brokers, ad valorem insurance is a priced option computed from the declared value, quoted alongside the base rate and stored on the quote and the shipment. Cargavo is not an insurer and does not place cover.

ADR (dangerous goods)

Margins & surcharges

Also called: Dangerous goods by road · Hazmat road transport

ADR is the European agreement governing the international carriage of dangerous goods by road, setting out nine hazard classes, packaging and labelling rules, vehicle placarding, driver training and the documents that must travel with the shipment.

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ADR stands for the Agreement concerning the International Carriage of Dangerous Goods by Road, concluded under the United Nations Economic Commission for Europe in Geneva in 1957 and revised every two years. It is transposed into national law across the European contracting parties, so it governs domestic movements too.

For a broker, ADR changes three things at once: which carriers can accept the freight, what documentation must exist before the vehicle moves, and how the shipment is priced. Carriers either refuse ADR outright, accept it under limited-quantity rules, or accept it fully with a surcharge.

Cargavo is a TMS for freight brokers, and it treats ADR as a priced option on the quote — asked for on the form, priced from your grid, and recorded on the shipment. It does not classify goods, generate dangerous-goods declarations or check regulatory compliance; that responsibility stays with the shipper and the carrier.

Read the full entry

API integration

Software & systems

Also called: Carrier API · Web service integration · System connection

An API integration is a live connection between two systems that lets one request data or actions from the other in real time, used in freight to fetch carrier rates, create bookings or receive status events.

More detail

APIs solve a real problem when a carrier has one. Rates come back from the carrier's own system, so they cannot drift out of date, and bookings are created without re-keying. The catch is coverage: the regional hauliers that make up most of a small broker's buy portfolio publish no API at all, and never will.

A rate grid is the answer that works for every carrier. It is slower to set up once and utterly reliable afterwards, and it prices carriers an API-first tool simply cannot see.

Cargavo has no carrier API and no EDI. It prices from the grids you rebuild, in four native models — weight_zone, pallet, mpl_bracket, hybrid_weight — with the fuel surcharge and options configured per carrier. If you need live carrier rate calls, Cargavo is not the right tool.

B

Backhaul (return load)

Freight modes

Also called: Return load · Return leg · Back load

A backhaul is freight loaded on the return leg of a vehicle that has already been paid for its outbound trip, which is why backhaul rates sit below the market rate for the same lane in the opposite direction.

More detail

An empty return is pure cost: the same fuel, the same driver hours, the same tolls, with no revenue against them. A carrier will therefore accept a backhaul at a rate that covers marginal cost rather than full cost, and that discount is real money for the broker who finds it.

The catch is timing. A backhaul is only cheap while the vehicle is empty and near the loading point, which is a window of hours, not days. A shipment with a fixed collection date rarely qualifies; a flexible one often does.

Cargavo is a TMS for freight brokers and does not source capacity or post loads — it is not a freight exchange. What it does is let a spot buy rate be recorded per shipment and the sell price be derived from it with a margin expressed as p/(1-m) or as an absolute amount, so a cheap backhaul improves the margin instead of quietly disappearing into a fixed sell price.

Buy rate

Margins & surcharges

Also called: Cost rate · Purchase price · Carrier rate

The buy rate is the price a broker pays a carrier to move a shipment, taken from the carrier rate grid plus surcharges and options, before any margin is added and before anything is shown to the customer.

More detail

The buy rate is the reference every other number depends on. It is not the base tariff cell alone: it is that cell after chargeable weight, bracket selection, paying-for, minimum charge, fuel surcharge and priced options have all been applied. A buy rate quoted without its surcharges is a number that will not match the carrier's invoice.

Because the buy rate is confidential in both directions — carriers negotiate different grids with different brokers, and customers must never see it — it belongs in a part of the system customers cannot read.

Cargavo is a TMS for freight brokers built on that separation. Buy rates and margins live in a private record attached to each quote and each shipment; a customer signed into the portal sees the sell price and nothing else. The same engine that computes the buy rate computes the sell rate, so the two are always derived from the same tariff reading.

C

Cabotage

Freight modes

Also called: Domestic haulage by a foreign carrier · Internal transport

Cabotage is a carrier established in one EU member state performing domestic transport inside another, allowed under Regulation (EC) No 1072/2009 for up to three operations within seven days after an incoming international delivery.

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The rule exists to let vehicles fill their return legs instead of running empty, without letting foreign hauliers settle permanently in another national market. The seven-day window starts at the unloading of the incoming international consignment, and each cabotage operation must be evidenced by consignment notes showing the sequence.

Since the Mobility Package took effect in February 2022, a cooling-off period applies: after the cabotage operations, the same vehicle may not perform cabotage in the same member state for four days.

For a freight broker, cabotage is a compliance dimension of carrier selection, not a pricing model. Cargavo is a TMS for freight brokers and stores carrier records, documents and quote history; it does not verify cabotage compliance, monitor vehicles or connect to enforcement systems. The obligation stays with the carrier and the contracting parties.

Carrier (haulier)

Parties & roles

Also called: Haulier · Trucking company · Transport operator

A carrier is the party that physically performs the carriage with its own vehicles and drivers, assumes liability for the goods from collection to delivery, and issues the rate grid a broker buys from.

More detail

The carrier is the counterparty on the buy side. It signs the CMR consignment note as the party undertaking the carriage, carries liability under the CMR Convention for international movements, and publishes or negotiates the tariff that determines the broker's cost.

Carriers differ enormously in shape: a single-vehicle regional operator, a national groupage network with hubs, a specialist in temperature-controlled or ADR work. Each publishes its rates in its own format, which is why a broker's carrier portfolio ends up as a pile of incompatible spreadsheets.

Cargavo is a TMS for freight brokers and stores each carrier with its own rate grids, ratios, rounding rules, fuel surcharge and priced options, using four grid models — weight_zone, pallet, mpl_bracket and hybrid_weight. Cargavo has no carrier API and no EDI: rates come from grids you rebuild, not from a carrier system.

Carrier onboarding

Parties & roles

Also called: Carrier setup · Carrier referencing · Vendor qualification

Carrier onboarding is the process of qualifying a new carrier before giving it freight: collecting its licence, insurance and bank details, agreeing terms, and loading its rate grid so quotes can be produced from it.

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The checklist is short but non-negotiable. Transport licence, liability insurance certificate with its expiry date, VAT and company registration, bank details verified out of band, agreed payment terms, and a signed set of conditions. Everything after that is commercial.

The step that actually delays the first quote is the tariff. A new carrier arrives with an Excel file in its own layout, and until that file becomes structured data — zones, brackets, ratios, rounding, fuel surcharge, priced options — nobody can quote from it without reading the spreadsheet by hand.

Cargavo is a TMS for freight brokers and turns a carrier tariff into one of four grid models: weight_zone, pallet, mpl_bracket or hybrid_weight. Rebuild is self-service on every plan; assisted onboarding, where the Cargavo team loads the grids, is part of the Scale plan at 399 EUR per month.

Carrier rate grid

Rates & grids

Also called: Rate sheet · Tariff table · Rate card

A carrier rate grid is the structured tariff a carrier gives a broker: a table of prices indexed by destination zone and by shipment size — weight, pallets or loading metres — together with minimum charges, surcharges and validity dates.

More detail

A rate grid is what a negotiation produces once it is written down. It has three parts: a zone definition (which postcodes belong to zone A, B, C), a price matrix (zones across the top, size brackets down the side) and the rules around it — minimum charge, fuel surcharge basis, paying-for, priced options and the validity period.

Grids arrive as Excel or CSV attachments, one per carrier, each with its own layout. That is why quoting from grids by hand does not scale: five carriers on the same lane means five files and five lookups.

Cargavo, a TMS for freight brokers, models every tariff with one of four grid types: weight_zone, pallet, mpl_bracket and hybrid_weight. You rebuild your own grids from Excel or CSV — Cargavo ships no rates of its own and has no carrier API, so nothing in the system is a rate you did not negotiate.

Chargeable weight

Weight & volume

Also called: Taxable weight · Billable weight

Chargeable weight is the figure a carrier actually bills on: the highest of the gross weight, the volumetric weight and the loading-metre equivalence, so that light bulky freight pays for the space it occupies.

More detail

A truck runs out of floor before it runs out of payload. That single fact is why no European groupage tariff bills on gross weight alone: 400 kg of insulation panels filling four pallet spaces costs the carrier the same capacity as 3,000 kg of tiles on the same footprint.

The tariff therefore states one or more floors, each converting volume or floor space into a kilogramme figure. The engine computes every applicable floor, takes the highest, and reads the rate grid at that weight. A 250 kg shipment measuring 3 m³ under a tariff stating 1 m³ = 250 kg is billed at 750 kg, not 250 kg.

Cargavo is a TMS for freight brokers: chargeable weight is computed once, from the ratios you configure on each carrier grid, and the same figure feeds the buy rate and the sell rate. Because the two prices come from one engine, the weight that justifies your purchase invoice is the weight that justifies your customer's Q-YYYY-NNNN quote.

Read the full entry

CMR consignment note

Documents & regulation

Also called: CMR note · CMR waybill · International consignment note

A CMR consignment note is the transport document evidencing a contract for the international carriage of goods by road under the CMR Convention, listing the parties, the goods and the conditions, and signed by sender, carrier and consignee.

More detail

The note is evidence, not the contract itself. Article 4 of the CMR Convention is explicit: the absence, irregularity or loss of the consignment note does not affect the existence or validity of the contract. What the note does is create a presumption — of the conditions agreed and of the apparent condition of the goods when the carrier took them over.

It is made out in three original copies signed by the sender and the carrier. The first is handed to the sender, the second travels with the goods, and the third is kept by the carrier. That is why a delivery dispute always turns on which copy carries which handwritten remark.

Cargavo is a TMS for freight brokers: it stores shipment documents, references and history against an S-YYYY-NNNN record, so the consignment note, the proof of delivery and the quote that priced the movement stay together. Cargavo does not issue a legally valid CMR note and is not an e-CMR platform.

Read the full entry

CMR Convention

Documents & regulation

Also called: Geneva Convention on road carriage · CMR 1956

The CMR Convention is the 1956 Geneva treaty governing contracts for the international carriage of goods by road, setting the carrier's liability, the consignment note regime and the claim deadlines between contracting states.

More detail

It applies automatically whenever goods are carried by road for reward between two countries of which at least one is a contracting state, regardless of the nationality or residence of the parties. The parties cannot contract out of it: any clause derogating from the Convention is null and void.

Two provisions dominate practice. Article 17 makes the carrier liable for loss, damage and delay between taking over and delivery, subject to defined exonerations. Article 23 caps compensation at 8.33 Special Drawing Rights per kilogramme of gross weight short, which is why a declared value under Article 24 or a special interest under Article 26 exists at all.

Article 32 sets a limitation period of one year, extended to three years in cases of wilful misconduct. Cargavo is a TMS for freight brokers and provides no legal advice or insurance: it keeps the quote, the shipment and its documents together so the facts of a claim are retrievable.

Consignee

Parties & roles

Also called: Receiver · Delivery party · Recipient

A consignee is the party named on the consignment note as entitled to take delivery of the goods, whose signature on the delivery document closes the carriage and starts the time limits for any damage claim.

More detail

The consignee holds two powers that decide how a claim will go. It may refuse delivery, and it may accept the goods with reservations noted on the consignment note. A signature without reservation makes visible damage far harder to claim afterwards.

Under the CMR Convention, a reservation on visible damage must be made at delivery; for damage that is not apparent, the consignee has a limited number of days to notify the carrier in writing. Those windows are short, which is why a proof of delivery should be read, not just filed.

Consignee constraints also drive accessorial charges: a delivery appointment, a restricted time window, a site with no dock and therefore a tail lift. Cargavo is a TMS for freight brokers and prices these as options on the quote rather than discovering them on the carrier invoice.

Contract rate

Rates & grids

Also called: Negotiated rate · Tariff rate

A contract rate is a price agreed in advance for a lane over a defined period, usually a season or a year, and applied to every shipment matching that lane regardless of daily market conditions.

More detail

Contract rates are what fills a rate grid. They are negotiated on committed volume: the shipper or broker promises a flow, the carrier prices for the flow rather than for the shipment. In exchange, both sides accept that the market will move against one of them before the period ends.

A contract rate is rarely a single number. It is a tariff structure — zones, brackets, minimum charge — plus an indexation clause for fuel and, increasingly, a review clause tied to a published index. Without the indexation clause, the carrier prices the worst case into the base rate.

The practical risk for a broker is a contract rate that expires quietly. Quoting from an out-of-date grid produces sell prices that look normal and buy prices that no longer exist.

Cargavo, a TMS for freight brokers, holds validity dates on every grid so an expired tariff is visible before it silently prices a quote.

Cross-docking

Freight modes

Also called: Transhipment · Dock transfer · Flow-through

Cross-docking is unloading a consignment from an inbound vehicle and reloading it onto an outbound vehicle within hours, sorting by destination without putting it into storage, which is the mechanism every groupage network runs on.

More detail

The dock is a sorting machine, not a warehouse. Inbound trunks arrive at night, goods are scanned, measured and moved across the dock to the outbound bay matching their delivery round, and the outbound vehicles leave in the morning. Dwell time is measured in hours, not days.

Two things get decided at the dock that a broker feels later. First, the shipment is re-measured, so a pallet quoted at 1.20 m high and arriving at 1.90 m generates a corrected invoice. Second, every extra handling is an opportunity for damage, which is why reservations on the CMR consignment note matter.

Cargavo is a TMS for freight brokers and does not operate docks or warehouses. What it does is keep the declared dimensions, weight and stackability attached to the Q-YYYY-NNNN quote and the S-YYYY-NNNN shipment, so a re-measurement can be checked against what was actually quoted.

Customer portal

Software & systems

Also called: Client portal · Self-service portal · Shipper portal

A customer portal is a secured web space where a broker's customers price, request and follow their own shipments without email or phone calls, seeing only their own data and only the sell price.

More detail

The portal exists to remove the slowest step in brokerage: the round trip of an email asking for a price. A customer who can simulate a price at eleven at night does not wait for an answer in the morning, and a request submitted through a structured form arrives with all eight fields a quote needs.

Isolation is what makes it safe. A customer must never see another customer, never see a carrier rate grid, never see the buy rate and never see the margin. Any portal that leaks one of those has destroyed the broker's negotiating position.

Cargavo is a TMS for freight brokers and includes a customer portal with a price simulator, quote requests, booking, history and messaging, in English, French, Spanish or German. Where no rate grid covers a lane, the portal still accepts the request so the broker can price it manually.

Cut-off time

Operations

Also called: Closing time · Booking deadline · Latest handover

A cut-off time is the latest moment at which a consignment can be handed over or booked for it to leave on the same day's trunk, after which the committed transit time starts counting from the next working day.

More detail

Cut-offs exist because a groupage network is a timetable. The collection vehicle must return to the hub, the freight must be sorted, and the trunk must leave for the night run. A consignment arriving twenty minutes late does not travel twenty minutes later; it travels a day later.

Two different cut-offs usually apply and are often confused: the booking cut-off, the latest time to order a collection for that day, and the handover cut-off, the latest time to physically hand over at a terminal.

Missing a cut-off is the single most common cause of a broken delivery promise, and it is invisible on a rate grid. Cargavo is a TMS for freight brokers and keeps service conditions with the carrier record so the commitment given to a customer matches what the carrier actually sells.

D

DAP (Delivered At Place)

Documents & regulation

Also called: Delivered At Place · Delivered duty unpaid

DAP means the seller delivers when the goods are placed at the buyer's disposal on the arriving vehicle, ready for unloading at the named destination, with the buyer responsible for unloading and import clearance.

More detail

DAP is the natural rule for a seller-organised road movement. The seller bears cost and risk all the way to the named place; the buyer unloads. Naming the place precisely matters more than the rule itself — "DAP Lyon" is ambiguous, "DAP 14 rue X, 69007 Lyon" is not.

Two obligations often get missed. Unloading is the buyer's, so a delivery to a site with no dock needs a tail lift, and that is a priced option on the freight, not a free courtesy. Import clearance and duties are also the buyer's, which is what separates DAP from DDP.

Inside the EU customs union the import step disappears on intra-EU lanes, which makes DAP the default rule on most European road freight. Cargavo is a TMS for freight brokers and prices tail lift, delivery appointment and other accessorials as explicit options on the quote.

DDP (Delivered Duty Paid)

Documents & regulation

Also called: Delivered Duty Paid · Free domicile

DDP means the seller delivers the goods cleared for import at the named destination, bearing all costs and risks including import duties and taxes, which makes it the maximum-obligation rule for the seller.

More detail

DDP is DAP plus import clearance. The seller pays the freight, the duties and any import taxes, and delivers ready for unloading. For the buyer it is the simplest possible arrangement: one price, one invoice, no customs work.

The obligation it hides is fiscal. To clear import and account for local consumption taxes, the seller normally needs a registration or a fiscal representative in the destination country. Agreeing DDP without one produces a shipment stuck at a border and an unexpected tax bill.

On intra-EU road lanes there is no import clearance, so DDP and DAP differ mainly on paper. On a lane crossing into a non-EU country — Switzerland, the United Kingdom, Morocco — the difference is substantial. Cargavo is a TMS for freight brokers and prices transport only; it does not calculate duties, file declarations or act as a customs representative.

Delivery appointment

Margins & surcharges

Also called: Booking-in · Scheduled delivery · Call before delivery

A delivery appointment is a slot agreed with the consignee before the vehicle arrives, required by sites that only receive goods at booked times, and charged by carriers as an accessorial because it costs a call and constrains the round.

More detail

Large retail and industrial receiving docks work on booking systems: a vehicle without a slot is turned away regardless of what it is carrying. Smaller consignees ask instead for a phone call an hour ahead. Both are appointments, and both remove flexibility from the driver's round.

The charge is small per shipment, but the operational cost of missing it is not: a refused delivery becomes a redelivery, and a redelivery costs a second full delivery attempt plus storage in between.

For a broker the appointment requirement is a data field, not a note in an email. It has to survive from the quote to the transport order or it will be lost exactly once — on the shipment where it mattered.

Cargavo, a TMS for freight brokers, carries the appointment requirement as a priced option from the quote form through to the S-YYYY-NNNN shipment record, and the broker and the customer can confirm the slot through the portal messaging thread attached to the shipment.

Delivery window

Operations

Also called: Time slot · Delivery slot · Reception hours

A delivery window is the period during which a consignee will accept a delivery, either as the site's standard reception hours or as a specific slot booked in advance, outside of which the vehicle is turned away.

More detail

Windows are a constraint on the carrier's route, not a feature of the freight. A two-hour afternoon slot at a distribution centre may make a delivery impossible to combine with any other stop, which is why narrow windows attract a surcharge or a dedicated vehicle.

Three variants behave very differently on price: standard reception hours, which cost nothing; a booked appointment, which the carrier prices as an accessorial; and a hard timed delivery, which often requires a dedicated trip.

Cargavo is a TMS for freight brokers and captures the required window on the quote request, in the broker's white-label customer portal, and prices the delivery appointment as an option when the carrier grid defines one. Discovering the constraint after booking is what turns a margin into a loss.

E

e-CMR (electronic consignment note)

Documents & regulation

Also called: Electronic CMR · Digital consignment note

An e-CMR is a CMR consignment note issued and signed electronically under the Additional Protocol of 2008, in force since 2011, which gives it the same legal effect as paper between states that have ratified the Protocol.

More detail

The Protocol does not change the substance of the CMR: the particulars, the liability regime and the deadlines are identical. What it adds is a framework for authentication — the electronic note must be signed by a reliable method, and the data must remain complete and accessible to the parties entitled to it.

The practical constraint is ratification. Both the states involved in a movement must be party to the Protocol for the electronic note to have the same status as paper, so international lanes still see a mix of paper and electronic documents.

Cargavo is a TMS for freight brokers and is not an e-CMR platform: it does not issue, sign or transmit electronic consignment notes and holds no accreditation. It stores documents attached to the S-YYYY-NNNN shipment record, which covers scanned notes and proofs of delivery but is not a substitute for a compliant e-CMR system.

EDI (electronic data interchange)

Software & systems

Also called: Electronic data interchange · EDIFACT messaging

EDI is the exchange of structured business documents between companies in a standard message format such as EDIFACT, used in freight for orders, status messages and invoices without human re-keying.

More detail

EDI predates web APIs and remains widespread precisely because it is stable: an agreed message format, an agreed transport, and both parties commit to it for years. In road freight the common messages cover transport orders, status reports and invoices.

The cost is setup. Each connection is a project between two IT teams, which is why EDI is normal between a large shipper and a large carrier network, and effectively unavailable to a two-person brokerage buying from twelve regional hauliers.

Cargavo has no EDI and no carrier API. That is a deliberate position: it prices from the rate grids you rebuild, so a carrier with no IT department is a first-class carrier in the system. If your workflow depends on receiving EDI status messages from carriers, Cargavo is not the right tool.

Euro pallet (EPAL)

Pallets & handling

Also called: EUR pallet · EPAL 1 · Europallet

A Euro pallet is a standardised wooden pallet measuring 1,200 by 800 millimetres, produced under EPAL licence and exchangeable across European networks, which makes it the default unit most road-freight tariffs are designed around.

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The 1,200 × 800 mm footprint is not an arbitrary size: it divides the interior width of a standard European trailer into a repeatable pattern, which is why a tautliner is commonly described as taking 33 Euro pallets on the floor. The alternative industrial format measures 1,200 × 1,000 mm and yields 26 floor positions on the same trailer.

EPAL pallets are exchangeable, which creates a second commercial dimension: a delivery may be made against a pallet exchange, against a pallet account, or without exchange, and each convention changes who owns the empty pallets afterwards. That is a contractual matter between the parties, not a freight rate.

For pricing, the relevant figures are the footprint and the stackability. A non-stackable Euro pallet occupies 0.40 loading metres on a 2.40 m loading width. Cargavo is a TMS for freight brokers: the pallet count and the stackability flag captured on a quote feed the pallet and mpl_bracket grid models directly.

EXW (Ex Works)

Documents & regulation

Also called: Ex Works · Ex Factory

EXW means the seller delivers by making the goods available at its own premises, with the buyer bearing all cost and risk from that point, including loading, export clearance and the whole carriage.

More detail

EXW places the maximum obligation on the buyer and the minimum on the seller. Delivery occurs when the goods are placed at the buyer's disposal at the named place, not loaded onto any vehicle, and risk passes there.

The practical friction is loading. In reality the seller almost always loads the truck, because it owns the forklift and the dock, which leaves an unwritten gap between what the Incoterm says and what happens. FCA at the seller's premises describes that situation correctly and is usually the better choice.

A second friction is export clearance, which under EXW is the buyer's responsibility even though the goods are in the seller's country. For a freight broker, EXW means the buyer is the customer. Cargavo is a TMS for freight brokers and holds each party as a distinct customer with its own margin rule and portal access.

F

Freight broker

Parties & roles

Also called: Transport commission agent · Freight agent · Load broker

A freight broker arranges the carriage of goods without owning vehicles, contracting with carriers in its own name and reselling the movement to a shipper, earning the difference between the buy rate and the sell rate.

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The broker's product is a commitment, not a truck. It sells a shipper a price and a delivery promise, then buys the capacity to honour them from carriers it has selected, referenced and negotiated with. The value it adds is coverage, price knowledge and single-point accountability across a fragmented carrier market.

Because it contracts in its own name, the broker carries the commercial risk. If the carrier fails, the customer's claim is against the broker. That legal position is the entire reason margin exists — it is compensation for risk and for the work of matching demand to capacity, not a mark-up on a pass-through.

Cargavo is a TMS for freight brokers built for teams of two to twenty-five people. It rebuilds the broker's own carrier rate grids, computes buy and sell from a single engine, keeps buy rates and margins in a private record the customer can never read, and gives each customer a white-label portal in English, French, Spanish or German.

Read the full entry

Freight chartering

Parties & roles

Also called: Chartering · Subcontracting a vehicle · Hiring capacity

Freight chartering is a broker or forwarder hiring a carrier's vehicle for a specific movement, agreeing a trip price, equipment and dates for one shipment rather than buying from a standing tariff.

More detail

Chartering is the buy-side activity behind most full truckload and part load work. The charterer describes the movement, collects prices from several carriers, checks that the equipment and the dates fit, and confirms one — usually within the same day, because the capacity moves.

What makes it different from grid buying is that the price is negotiated per shipment. There is no bracket to read: the number depends on the corridor, the season, the direction and whether the carrier expects a return load. The same lane can cost noticeably more or less two weeks apart.

Cargavo is a TMS for freight brokers and supports both models: standing carrier grids for recurring groupage, and a buy rate entered per shipment for chartered movements. In both cases the sell price is derived server-side with a margin expressed as p/(1-m) or as an absolute amount, and the customer sees the sell price alone.

Also called: Load board · Freight marketplace · Capacity exchange

A freight exchange is a marketplace where carriers publish available vehicles and brokers or shippers publish available loads, so that spot capacity and spot freight can find each other quickly.

More detail

The exchange solves one problem very well: finding a truck for a load, or a load for a truck, today. Members post offers, search by lane and date, and contact each other directly. European examples include TimoCom, Teleroute and Trans.eu; the price is a subscription for access, not a commission on the movement.

What an exchange does not do is run the business around the movement. It does not hold your customers' agreed rates, does not compute your sell price from your buy rate, does not keep your margin per customer and does not stop your customer seeing what you paid.

Cargavo is a TMS for freight brokers and is complementary to an exchange, not a replacement for it. Cargavo does not search capacity, does not post loads and has no integration with any freight exchange. It prices from your own carrier rate grids, applies your margin server-side, and shows customers a sell price only.

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Freight forwarder

Parties & roles

Also called: Forwarder · Forwarding agent · Logistics organiser

A freight forwarder organises the international carriage of goods on behalf of a shipper, arranging transport across one or more modes and handling documentation, consolidation and customs without necessarily operating any vehicle itself.

More detail

The forwarder's distinguishing feature is scope rather than legal form. Where a road broker sells a lane, a forwarder sells a door-to-door movement that may involve a truck, a vessel, an aircraft, a customs declaration and a warehouse, each contracted separately and presented as one service.

In Germany the arrangement is the Speditionsvertrag of the Commercial Code, with the ADSp commonly incorporated as standard terms; in France the commissionnaire de transport plays the same organising role. In practice the boundary with a broker is commercial, not legal: many companies do both.

Cargavo is a TMS for freight brokers and forwarders alike, because the pricing problem is identical — buy from a carrier grid, apply a customer-specific margin server-side, present a sell price only. Cargavo does not file customs declarations, does not book ocean or air capacity and has no carrier API or EDI.

Freight invoice audit

Software & systems

Also called: Freight bill audit · Invoice verification · Carrier invoice check

A freight invoice audit is the systematic comparison of a carrier invoice against the rate that was agreed for that shipment, checking the chargeable weight, the zone, the fuel surcharge and each accessorial line before payment.

More detail

Errors on freight invoices are rarely fraud and almost always mechanical: a re-measured pallet, a fuel index applied at the wrong month, a waiting-time line nobody expected, a delivery reclassified as a second attempt. Each is small; together they eat a margin that was thin to begin with.

The audit needs one thing to be possible at all: the agreed buy rate must still exist, attached to the shipment, in a form a human can compare. A price that lived only in an email thread cannot be audited three weeks later.

Cargavo is a TMS for freight brokers and keeps the computed buy rate, the sell rate and the margin in a private record on every Q-YYYY-NNNN quote and S-YYYY-NNNN shipment, so a carrier invoice can be checked against what was priced. Cargavo does not receive, parse or pay carrier invoices, and has no accounting or EDI connection.

Freight quote

Rates & grids

Also called: Rate quote · Transport quotation

A freight quote is a priced offer to move a defined shipment on a defined lane, valid for a stated period, listing the transport price plus every surcharge and option the carrier or broker will actually invoice.

More detail

A quote is only useful if it is reproducible. Four inputs decide the number: the lane (postcode to postcode, or zone to zone), the size of the shipment (weight, dimensions, pallet count), the service level (transit time, delivery window, tail lift) and the validity date, because fuel indices and tariffs move.

A complete quote separates the base transport price from the fuel surcharge and from priced options such as tail lift, ADR or ad valorem insurance. Bundling everything into one figure is what makes a quote impossible to defend when the invoice arrives higher.

Cargavo is a TMS for freight brokers: it produces the quote from your own carrier rate grids, stores it under a Q-YYYY-NNNN reference, and keeps the buy rate and the margin in a private record the customer cannot read. Converting an accepted quote into a shipment creates an S-YYYY-NNNN reference. Amounts carry their currency — EUR, USD, GBP, CHF, CAD, MAD or PLN.

Freight tender (RFP)

Rates & grids

Also called: Transport tender · Freight RFP · Bid event

A freight tender is a structured bidding process in which a shipper puts a portfolio of lanes and forecast volumes out to carriers and brokers, whose submitted rates become the contract rates for the coming period.

More detail

A tender is not a quote request multiplied. It has a fixed calendar, a fixed lane list with volumes, a fixed rate template that every bidder must fill in the same way, and award rules stating how much of each lane goes to the winner and to the backup.

For a broker, the work is not the price but the modelling: bidding a lane at a rate you cannot buy for twelve months is worse than not bidding it. Most tender losses on margin come from bidding lanes with no committed carrier capacity behind them.

Tenders typically run annually for industrial shippers and are increasingly split into mini-tenders per quarter for volatile categories.

Cargavo is a TMS for freight brokers rather than a tender platform: it does not run bid events. What it does is hold the awarded rates as structured grids afterwards, so the tender you won is the tariff your team quotes from the next morning.

Also called: Full load · Truckload · Dedicated vehicle

Full truckload is road freight where one customer books an entire vehicle for a direct journey, priced per trip rather than per kilogramme, so the rate depends on distance, equipment and the carrier's chance of a return load.

More detail

FTL removes the hub. The vehicle loads at origin, drives to destination and unloads — two handling events instead of four — which is why it is the fastest and least damaging way to move freight, and the only sensible one for anything fragile or high-value.

A standard European tautliner semi-trailer offers 13.6 loading metres and 33 Euro pallet positions. Directive 96/53/EC sets the ordinary maximum authorised combination weight at 40 tonnes for international traffic, so payload is bounded by the tractor and trailer tare rather than by a tariff bracket.

The price is a trip price. Distance, equipment type, waiting time, the driver's hours and, above all, the probability of a paying return load determine it, which is why the same lane can be quoted very differently two weeks apart. Cargavo is a TMS for freight brokers: FTL is typically bought spot and sold with an absolute margin per shipment rather than a percentage, and the engine supports both.

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Fuel surcharge

Margins & surcharges

Also called: Diesel surcharge · Fuel adjustment factor · FSC

A fuel surcharge is a percentage added to the base transport price to pass on diesel price movements, recalculated periodically against a published index rather than renegotiated shipment by shipment.

More detail

Diesel is one of the largest and most volatile lines in a haulier's cost structure. Rather than reopening a tariff every time it moves, carriers fix a base rate at the start of the contract and then publish a surcharge percentage that tracks an index — weekly, monthly or quarterly.

The surcharge is applied to the base transport price, not to the whole invoice: accessorial charges are usually excluded, and whether the minimum charge is included depends on the tariff conditions.

For a broker the surcharge is a pass-through with a timing risk. If the buy-side surcharge updates monthly and the sell-side quote is valid for 30 days, one of the two will be wrong for part of the period.

Cargavo is a TMS for freight brokers: the indexed fuel surcharge is a first-class concept in its engine, configured per grid, applied on the buy side and the sell side in the same pass.

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G

Gross margin

Margins & surcharges

Also called: Gross profit · Net revenue

Gross margin is the difference between the sell rate and the buy rate on a shipment, expressed in currency or as a percentage of the sell rate, and it is the revenue a freight broker actually keeps before overheads.

More detail

On a shipment bought at 120 EUR and sold at 150 EUR, the gross margin is 30 EUR, or 20% of the sell price. Note which denominator is used: 30 divided by 150 is 20%, 30 divided by 120 is 25%. The first is the margin, the second is the markup, and confusing them is the most expensive arithmetic mistake in brokerage.

Gross margin only becomes trustworthy once the buy rate is complete. A margin computed on a base tariff, with the fuel surcharge and the tail-lift charge arriving on the invoice three weeks later, is a forecast rather than a result.

Cargavo, a TMS for freight brokers, stores the buy price, the sell price and the resulting margin on every quote and every shipment, in the shipment's own currency, so margin per customer and per lane is a report rather than a monthly spreadsheet exercise.

H

Hybrid weight rate grid

Rates & grids

Also called: Flat-then-rate tariff · Threshold tariff

A hybrid weight rate grid combines two mechanics in one tariff: a flat price below a weight threshold and a rate per 100 kg or per tonne above it, so light and heavy shipments are priced on different logic.

More detail

Carriers use this shape when the cost structure genuinely changes at a certain size. Below the threshold the cost is dominated by handling and the last mile, so a flat price is honest. Above it, line-haul capacity dominates and a proportional rate is honest.

A typical grid reads: up to 100 kg, 42 EUR flat; above 100 kg, 21 EUR per 100 kg. At 100 kg the two branches should meet, and when they do not, there is a step in the price curve that a customer will eventually notice — usually on the shipment that sits one kilogram over.

The threshold is applied to chargeable weight, not gross weight, which is where hybrid grids most often surprise people.

In Cargavo, a TMS for freight brokers, this is the hybrid_weight grid type, with the threshold, the flat amount and the rate above configured per zone.

I

Incoterms

Documents & regulation

Also called: Incoterms 2020 · ICC trade terms · Delivery terms

Incoterms are the International Chamber of Commerce rules that define, in a sale contract, where cost and risk pass from seller to buyer, who arranges carriage and who clears customs for export and import.

More detail

Incoterms 2020 contains eleven rules. Seven apply to any mode of transport — EXW, FCA, CPT, CIP, DAP, DPU, DDP — and four apply only to sea and inland waterway transport: FAS, FOB, CFR and CIF. The 2020 revision renamed DAT to DPU and raised the insurance level required under CIP.

An Incoterm settles three questions and no others: who pays for which leg, where the risk of loss passes, and who handles export and import formalities. It is not a payment term, not a transfer of ownership and not a substitute for a transport contract.

For a freight broker the Incoterm decides who is actually the customer and who pays the invoice, which is why it belongs on the quote request rather than in a later phone call. Cargavo is a TMS for freight brokers and prices the movement it is asked to price; it does not file customs declarations and has no customs or EDI connection.

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L

Load factor (fill rate)

Operations

Also called: Fill rate · Utilisation · Capacity utilisation

Load factor is the share of a vehicle's capacity actually used on a trip, measured against whichever constraint binds first — loading metres, pallet positions, cubic metres or payload — and expressed as a percentage.

More detail

The choice of denominator is the whole point. A trailer carrying 6 tonnes on 13.6 loading metres is at roughly 25% of payload but 100% of floor, and only the second number describes what the carrier can still sell. Reporting the wrong one hides a full truck behind a low figure.

Load factor is a carrier metric, not a broker one, but it explains broker pricing. A carrier that expects to fill the vehicle quotes differently from one that does not, which is why the same lane costs more in the empty direction and why a backhaul is cheap.

Cargavo is a TMS for freight brokers and does not plan loading, allocate vehicles or compute fill rates: it has no fleet management, no telematics and no load-planning module. It prices shipments from the rate grids you rebuild and keeps buy, sell and margin per shipment.

Loading meter (LDM)

Weight & volume

Also called: Linear metre · LDM · Loadmeter

A loading meter is one metre of trailer floor length across the full loading width, and it is the unit road carriers use to sell floor space when a shipment is too long, too tall or too fragile to stack.

More detail

The formula is a footprint divided by the usable width: LDM = (length × width) / loading width, in metres. Standard European tautliner trailers are built around a nominal loading width of 2.40 m and a loading length of 13.6 m, which is where the familiar figure of 13.6 LDM per trailer comes from.

A Euro pallet of 1.20 × 0.80 m placed with its 1.20 m side across the trailer occupies 0.80 × 1.20 / 2.40 = 0.40 LDM. An industrial pallet of 1.20 × 1.00 m occupies 0.50 LDM. Both assume the pallet cannot be stacked; a stackable pallet halves the floor space it consumes because another one sits on top.

Loading metres become a price through a conversion the tariff states, in kilogrammes per LDM. Cargavo is a TMS for freight brokers and implements this as mpl_bracket, one of its four grid models, so an LDM tariff is priced natively rather than approximated with a weight tariff.

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LTL (groupage)

Freight modes

Also called: Less than truckload · Groupage · Part shipment

LTL groupage is road freight where one vehicle carries consignments from several different customers, each billed on its own chargeable weight and zone rather than on the cost of the whole vehicle.

More detail

The economics are consolidation. A groupage carrier collects small consignments locally, trunks them between hubs at night, sorts them at a cross-dock and delivers them locally the next morning. Each shipment pays a share of a vehicle it never fills, which is why a 300 kg pallet moves for a fraction of what a truck costs.

The price comes from a rate grid rather than a negotiation. The lane resolves to a zone, the shipment resolves to a chargeable weight, and the intersection of the two gives a rate — often per 100 kg, with a minimum charge for the smallest consignments and a paying-for rule at each bracket boundary.

Cargavo is a TMS for freight brokers and prices groupage from the broker's own carrier grids: weight_zone for classic weight-by-zone tariffs, pallet for per-pallet tariffs, mpl_bracket for loading-metre tariffs and hybrid_weight for flat-rate-then-per-kilo tariffs. Buy and sell come from one engine, so they cannot disagree.

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M

Markup vs margin

Margins & surcharges

Also called: Margin on cost vs margin on sales · Cost-plus vs margin pricing

Markup is a percentage added to the buy rate; margin is a percentage of the sell rate. A 20% markup on a 120 EUR cost sells at 144 EUR, while a 20% margin on the same cost sells at 150 EUR.

More detail

The two words describe the same profit from opposite ends. Markup divides profit by cost. Margin divides the same profit by the selling price. Because the selling price is always the larger denominator, the margin percentage is always smaller than the markup percentage for the same money.

The confusion is expensive because it is systematic and quiet. A broker who intends a 20% margin but applies a 20% markup collects 24 EUR instead of 30 EUR on a 120 EUR buy rate — a fifth of the intended profit, on every shipment, indefinitely.

Cargavo is a TMS for freight brokers, and its engine expresses percentage margins as margin on the sell price, using p/(1-m), or as an absolute amount per weight bracket. The rule is stored per customer and applied server-side, so the intended margin and the invoiced margin are the same number.

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Minimum charge

Rates & grids

Also called: Minimum rate · Floor price

A minimum charge is the floor price a carrier invoices for a shipment however small it is, applied after the tariff calculation and usually before surcharges, so a very light consignment never falls below a viable price.

More detail

Every carrier has a cost that does not shrink with the shipment: a driver stops, a pallet is scanned, a delivery is attempted. The minimum charge protects that cost. On a European groupage tariff it commonly sits between 35 EUR and 60 EUR per shipment, and it is quoted per zone.

The order of operations matters more than the number. If the minimum applies before the fuel surcharge, the surcharge is calculated on the raised amount; if it applies after, it is not. Two carriers with identical minimums can therefore invoice different totals for the same shipment.

Minimums are also where broker margins quietly disappear. A grid with a 45 EUR minimum quoted at a 15% margin still yields only 7.94 EUR on a shipment that hits the floor.

Cargavo, a TMS for freight brokers, holds the minimum charge as part of the grid and applies it in the order you configure, so the quoted price matches the invoice.

O

On-time delivery rate (OTD)

Operations

Also called: OTD · Punctuality rate · Service level

On-time delivery rate is the share of shipments delivered within the committed transit time or delivery window over a period, computed as on-time deliveries divided by total deliveries and expressed as a percentage.

More detail

The metric is only meaningful once the definition is fixed, because three choices change the result entirely: whether the clock is the committed transit time or a booked window, whether the collection day counts, and whether failures caused by the consignee are excluded.

Measured per carrier and per lane, it is the number that justifies paying more for a better carrier. Measured as one company-wide figure, it says almost nothing, because a weak lane and a strong lane average into a meaningless middle.

Cargavo is a TMS for freight brokers and stores shipment dates and statuses per carrier and per customer, which is the raw material for the calculation. Cargavo publishes no benchmark and no industry average: the only credible on-time figure is the one computed from your own shipments.

P

Pallet space (floor position)

Pallets & handling

Also called: Floor position · Pallet slot · Ground position

A pallet space is one floor position in a trailer that a pallet occupies for the whole journey, counted regardless of the height used, which is why a network sells 33 spaces on a standard trailer rather than a volume.

More detail

The unit exists because floor positions, not cubic metres, are what a groupage trunk actually runs out of. A standard European tautliner offers 33 Euro pallet positions or 26 industrial pallet positions on the floor; a double-deck trailer adds a second layer of positions above.

A pallet space is consumed for the entire trunk leg even if the pallet is 40 cm high. That is why stackability is a commercial term and not a detail: a pallet declared stackable lets the carrier place a second one above it and sell the same position twice, which is the reason stackable rates are lower.

Expressed in floor length, one Euro pallet position is 0.40 loading metres. Cargavo is a TMS for freight brokers, and its pallet grid model prices directly on the number of pallets by zone — useful precisely when a carrier sells positions rather than kilogrammes.

Palletized freight

Pallets & handling

Also called: Palletised goods · Unitized freight

Palletized freight is goods secured onto a pallet so that the whole consignment can be moved as one handling unit by forklift, which is what lets a groupage network price and transship it without touching the individual cartons.

More detail

Palletizing converts a pile of cartons into a countable unit. That is a pricing fact before it is a logistics one: a network that handles pallets can charge per pallet, per pallet space or per loading metre, whereas loose cartons force a weight-and-volume calculation on every item.

A correctly built pallet does not overhang its base, is wrapped or strapped as one block, carries a readable label on at least two faces, and declares whether anything may be placed on top of it. Overhang is the most expensive defect: a load 1.25 m wide on a 1.20 m pallet no longer fits the pattern the network was designed around and is often reclassified.

Cargavo is a TMS for freight brokers and supports a native pallet grid model, pricing per pallet count by zone, alongside weight_zone, mpl_bracket and hybrid_weight. The pallet count declared on a Q-YYYY-NNNN quote carries into the shipment record.

Parcel and express freight

Freight modes

Also called: Courier · Express parcel · CEP

Parcel and express freight is a network service for individual packages below a weight limit published by the operator, priced per parcel and weight step, with dense automated sorting and next-day or timed delivery commitments.

More detail

The economics are the opposite of full truckload: the network runs on very high volumes of small, machine-sortable items, so the marginal cost of a parcel is low but the constraints are strict. Operators publish maximum weight, maximum length and maximum girth per parcel, and anything outside those limits is surcharged or refused.

Volumetric weight matters more here than anywhere else, because a sorting belt is dimensioned in centimetres. Parcel tariffs typically express the ratio as a divisor in cubic centimetres per kilogramme rather than as kilogrammes per cubic metre.

Parcel networks are usually outside a freight broker's buy portfolio: they sell directly to shippers on published tariffs. Cargavo is a TMS for freight brokers and focuses on groupage, part load and full truckload grids, though a parcel-style tariff with flat rates below a threshold maps onto the hybrid_weight grid model.

Part load (PTL)

Freight modes

Also called: Partial truckload · Part truckload · Half load

A part load is a consignment too large for groupage but too small to fill a vehicle, moved with one or two other loads on a near-direct route and usually priced on loading metres rather than on weight brackets.

More detail

The defining feature is the absence of a hub. A part load is combined with one or two other consignments at the point of loading and runs to destination directly, so it is handled twice like a full truckload rather than four times like groupage. Transit times are close to a direct trip.

Volumes typically run from six to twenty pallets, or roughly 4 to 13 loading metres. Above 13.6 LDM the shipment is a full truckload; below six pallets a groupage tariff is usually cheaper because the network amortises the vehicle over far more consignments.

Pricing follows floor space, not kilogrammes: a part load is a section of trailer. Cargavo is a TMS for freight brokers and prices part loads through the mpl_bracket grid model, on loading-metre brackets by zone, or through the pallet model when a carrier sells positions.

Paying-for weight

Rates & grids

Also called: Weight break rule · Next-bracket rule · Payant-pour

Paying-for is the tariff rule that charges a shipment at the minimum weight of the next bracket whenever that produces a lower price, so a customer never pays more than a heavier shipment on the same lane would cost.

More detail

The rule fixes an absurdity created by brackets. Suppose the 100-199 kg bracket is 0.55 EUR per kilo and the 200-499 kg bracket is 0.25 EUR per kilo. A 190 kg shipment computed in its own bracket costs 104.50 EUR; declared at 200 kg in the next bracket it costs 50 EUR. Paying-for takes the lower of the two, so the customer is invoiced 50 EUR for 190 kg.

Applied properly, the rule makes the price curve monotonic: the price never falls as weight rises. Applied by hand, it is the single most commonly forgotten step in manual quoting, and each omission is money handed back to nobody — the customer pays more than the tariff allows and eventually finds out.

Cargavo evaluates paying-for automatically on every weight_zone and hybrid_weight grid, on the buy side and the sell side, because the same engine computes both.

Per-pallet rate grid

Rates & grids

Also called: Pallet tariff · Price per pallet

A per-pallet rate grid prices a shipment by the number of pallets and the destination zone: one price for one pallet, another for two, and so on, with no weight calculation up to a stated weight ceiling per pallet.

More detail

Pallet networks price this way because their unit of capacity is a floor position, not a kilogram. The grid reads: zone B, three pallets, 187 EUR. Simple to quote, simple to check on an invoice.

The catch is always in the fine print. Each pallet carries a weight ceiling — commonly 500, 700 or 1,000 kg depending on the network — and a height limit. Beyond either, the pallet counts as two, or the shipment reverts to a weight-based tariff. Half pallets and quarter pallets have their own rows.

Per-pallet grids are the easiest tariff to compare between carriers, because the unit is unambiguous, and the hardest to compare against a weight-zone tariff, because the two count different things.

In Cargavo, a TMS for freight brokers, this is the pallet grid type. Weight ceilings and pallet formats are configured per grid, so a 900 kg pallet is not quoted at the 500 kg price by accident.

Prepaid vs collect freight

Rates & grids

Also called: Freight prepaid · Freight collect · Carriage paid

Prepaid and collect state who pays the freight: prepaid means the sender is invoiced, collect means the receiver is invoiced. The term is written on the consignment note and decides which party the carrier bills.

More detail

The distinction is a payment instruction, not a transfer of risk — that belongs to the Incoterm. A shipment can perfectly well be sold EXW and still be despatched freight collect, and the two statements do not contradict each other.

In practice, collect shipments are the ones that generate disputes. The carrier delivers, the receiver refuses the freight invoice because the purchase order said otherwise, and the broker is caught between two customers with two versions of the agreement.

Three defences work: the payment term written explicitly on the consignment note, a rate agreed with the paying party before pickup, and a quote reference the invoice can point back to.

Cargavo, a TMS for freight brokers, links every shipment to the quote it came from through the Q-YYYY-NNNN and S-YYYY-NNNN references, so the price that was agreed is always retrievable — whoever ends up paying it.

Pricing engine

Rates & grids

Also called: Rating engine · Quote engine

A pricing engine is the software component that turns a shipment description and a set of rate grids into a price, applying chargeable weight, brackets, minimums, surcharges, options and margin rules in a fixed, repeatable order.

More detail

The value of an engine is not speed, it is determinism: the same inputs must return the same price today and in six months, on the broker's screen and on the customer's portal. That requires the order of operations to be written down once — chargeable weight, then bracket selection, then paying-for, then minimum charge, then fuel surcharge, then options, then margin, then rounding.

The classic failure mode in brokerage software is two engines: one that computes the buy rate and another that computes the sell rate. They start identical and diverge at the first tariff exception, and every divergence is a margin that was not what anyone believed.

Cargavo runs a single engine for both sides. The buy price is the engine without margin rules; the sell price is the same engine with them. The authoritative price is always recomputed server-side, so a value sent from a browser can never become the price of record.

Proof of delivery (POD)

Documents & regulation

Also called: POD · Signed delivery note · Delivery receipt

A proof of delivery is the document signed by the consignee on receipt, showing the date, time, name of the signatory and any reservation about the goods, and it is what closes a shipment commercially and evidentially.

More detail

The POD is the last piece of evidence a broker can obtain without a dispute. It fixes three facts: that delivery happened, when it happened, and in what apparent condition the goods were received. A signature with the mention "damage to one pallet, film torn, contents to be checked" is worth far more than a clean signature and a phone call two days later.

Commercially, it is also the trigger for invoicing on many terms and the document a customer asks for when its own client queries a delivery. A POD that takes a week to retrieve costs more in chasing time than the margin on the shipment.

Cargavo is a TMS for freight brokers and stores documents against the S-YYYY-NNNN shipment record, so the POD, the consignment note and the quote that priced the movement live in one place. Cargavo does not capture signatures and has no driver application or telematics.

R

Rate rounding

Rates & grids

Also called: Price rounding · Weight rounding

Rate rounding is the rule that decides how a computed weight or price is rounded — up, down, to the nearest cent, euro or step — and at which point in the calculation, before the figure appears on a quote or an invoice.

More detail

Rounding sounds trivial until two systems disagree. A tariff at 0.2733 EUR per kilo on 187.4 kg gives 51.2117 EUR. Rounded to the cent that is 51.21 EUR; with the weight first rounded up to 190 kg it is 51.93 EUR. Neither is wrong — but only one matches the carrier's invoice.

Three decisions define the rule: what is rounded (the weight, the intermediate price, the final total), in which direction (up, down, half-up) and to what step (0.01, 0.10, 1.00, or the next 10 kg). Carriers publish these in the tariff conditions, often in a sentence that is easy to skip.

Rounding also compounds: a rounded buy price feeding a margin calculation and then a rounded sell price can drift a euro or two per shipment, which is invisible per quote and material per year.

Cargavo exposes rounding as an explicit setting per grid rather than hiding it in code, so a broker can reproduce the carrier's own arithmetic.

Rate zone

Rates & grids

Also called: Tariff zone · Pricing zone · Destination zone

A rate zone is a group of postcodes, departments, provinces or countries that a carrier prices identically, so a tariff needs one column per zone instead of one price for every possible destination.

More detail

Zones are how a carrier compresses geography into a table. A French domestic tariff might use one zone per department, a European tariff one zone per country or per country group, and an express network four or five concentric zones around each hub.

Two shipments in the same zone cost the same in the tariff even when one goes to a city ring road and the other to a mountain village. That is why zone definitions carry exceptions: island surcharges, remote-area lists, and postcodes served on fewer days per week.

Zones are the first thing to check when comparing two carriers. A quote that looks 8% cheaper often turns out to use a coarser zone map that dumps a difficult postcode into a cheap zone the carrier will later reprice.

Cargavo, a TMS for freight brokers, stores each carrier's zone map with its grid, so the same destination can be zone B for one carrier and zone C for another without any manual reconciliation.

Request for quote (RFQ)

Rates & grids

Also called: Rate request · Quote request

A request for quote is a shipper asking a broker or carrier to price one specific shipment, stating origin, destination, weight, dimensions and dates, and expecting a priced answer rather than a tariff.

More detail

An RFQ is a single-shipment question, unlike a freight tender, which puts a whole lane portfolio out to bid. It arrives by email, phone or a web form, and the answer time is the metric that decides whether the broker wins it.

A complete RFQ carries eight fields: pickup postcode, delivery postcode, gross weight, dimensions or pallet count, stackability, ready date, service level and the options required (tail lift, appointment, ADR). Anything missing has to be chased, and chasing is where hours go.

Cargavo, a TMS for freight brokers, exposes a white-label customer portal where the broker's own customers submit an RFQ against a structured form. When a rate grid covers the lane, the portal returns a price immediately. When no grid covers it, the request is stored as a quote request the broker prices manually — the missing lane never becomes a lost enquiry. Each request becomes a Q-YYYY-NNNN record.

S

Sell rate

Margins & surcharges

Also called: Customer price · Selling price · Quoted rate

The sell rate is the price a broker quotes to a customer for a shipment: the buy rate with the customer-specific margin rule applied, plus any surcharges and options passed on, and it is the only figure the customer ever sees.

More detail

A sell rate is derived, not typed. When it is typed, two things go wrong: it stops matching any tariff, and it stops being reproducible when the person who typed it is on holiday.

The derivation has one decision in it — how the margin is expressed. A percentage margin on the sell price uses the formula p/(1-m): a 120 EUR buy rate at a 20% margin sells at 150 EUR, not 144 EUR. An absolute margin adds a fixed amount per shipment or per bracket, which suits volatile spot buying.

Margins are usually set per customer, sometimes per customer and per weight bracket, because a 50 kg parcel and a 3-tonne shipment do not carry the same handling effort.

Cargavo, a TMS for freight brokers, recalculates the sell rate server-side on every quote, so a price altered in a browser can never become the price of record.

Shipment (consignment)

Operations

Also called: Consignment · Job · Movement

A shipment is one movement of goods from one sender to one consignee under a single transport contract, identified by a reference and carrying its own weight, dimensions, dates, documents and price.

More detail

The shipment is the unit everything else attaches to. A quote prices a hypothetical shipment; a booking turns it into a real one; the consignment note evidences it; the proof of delivery closes it; the carrier invoice settles it. Losing the link between those five artefacts is what makes reconciliation painful.

Splitting matters too. Two pallets going to two consignees are two shipments even if they travel on one truck, because each has its own delivery obligation and its own document trail.

Cargavo is a TMS for freight brokers and gives every shipment an S-YYYY-NNNN reference, created when an accepted Q-YYYY-NNNN quote is converted. Buy rate, sell rate and margin live in a private record attached to it, invisible to the customer, while documents, messages and status stay on the shipment itself.

Shipment tracking

Operations

Also called: Track and trace · Status visibility · Shipment status

Shipment tracking is the recording and publication of a consignment's successive statuses — booked, collected, in transit, delivered — so that the parties can see where it stands without contacting anyone.

More detail

Tracking has two distinct sources. Carrier-generated events come from scanning at collection, at each hub and at delivery, and are only as good as the carrier's own system. Broker-maintained statuses are entered by the broker's team from what it knows, and are available for every carrier including the smallest.

For a broker without carrier integrations, the second kind is what customers actually get, and it is often more useful: a status the broker has confirmed beats an automated event nobody has read.

Cargavo is a TMS for freight brokers and publishes broker-maintained shipment statuses and messaging in the customer's white-label portal, against the S-YYYY-NNNN reference. Cargavo has no carrier API, no EDI and no telematics: it does not receive automatic scan events from carrier systems.

Shipper

Parties & roles

Also called: Consignor · Sender · Loader

A shipper is the party that hands goods over for carriage and is usually the one paying for it, responsible for declaring accurate weight, dimensions, stackability and any dangerous-goods classification.

More detail

Most disputes on a freight invoice start with a shipper declaration. The carrier prices on what was declared, then measures what actually arrives at the dock, and any gap becomes a correction. Accurate dimensions and an honest stackability flag are worth more to a shipper than a hard negotiation on the rate.

The shipper is not automatically the payer: under a prepaid arrangement it pays, under a collect arrangement the consignee does, and the Incoterm on the sale contract determines which. Naming the payer at the quote stage avoids an invoicing dispute later.

Cargavo is a TMS for freight brokers: the broker's shippers are its customers, each with its own margin rule, its own history and its own access to a white-label portal where it can simulate a price, request a quote and follow shipments. A customer never sees buy rates, margins, rate grids or any other customer.

Spot rate

Rates & grids

Also called: Market rate · One-off rate

A spot rate is a price agreed for a single shipment at the moment it is booked, reflecting the capacity available that day rather than a negotiated tariff, and valid only for that shipment.

More detail

Spot pricing dominates full truckload and anything urgent, oversized or seasonal. The number moves with the balance of trucks and loads on the lane that week: harvest, holiday shutdowns, a strike at a port, or simply an empty vehicle looking for a return load.

Brokers work spot rates by calling carriers or posting on a freight exchange, then adding a margin. The margin is usually absolute rather than a percentage, because the buy rate is volatile and a percentage would swing the sell price for no reason connected to the service.

Spot and contract are complementary, not rivals. A broker typically covers predictable groupage volume with contract grids and absorbs the peaks at spot.

Cargavo, a TMS for freight brokers, prices grid-covered lanes automatically and lets you record a manual buy rate for a spot shipment, then applies your margin rule to it — spot quotes end up in the same Q-YYYY-NNNN history as grid quotes.

Stackability

Pallets & handling

Also called: Stackable · Non-stackable · Top-loadable

Stackability is the declaration that another pallet may be loaded on top of a consignment, and it typically halves the floor space that consignment consumes, which makes it one of the few free levers a shipper controls on a freight price.

More detail

The declaration is binary at the point of quoting and physical at the point of loading. A pallet marked stackable lets the carrier sell the column above it; marked non-stackable, the same pallet blocks that column for the whole trunk leg and the tariff prices it as full floor space.

In loading metres, the effect is exact: a non-stackable Euro pallet occupies 0.40 LDM, a stackable one 0.20 LDM. On a shipment of six pallets that is the difference between 2.4 LDM and 1.2 LDM — and, under a tariff stating 1,750 kg per LDM, between an equivalence of 4,200 kg and 2,100 kg.

Declaring stackable freight that turns out not to be is the most common cause of a corrected invoice. Cargavo is a TMS for freight brokers and captures stackability as a field on the quote request, in the broker's white-label customer portal, so the assumption behind the Q-YYYY-NNNN price is recorded rather than remembered.

T

Tail lift

Margins & surcharges

Also called: Lift gate · Hydraulic platform · Tailgate

A tail lift is a hydraulic platform fitted to the rear of a truck that raises a pallet between the trailer floor and ground level, required whenever the pickup or delivery site has no loading dock or forklift.

More detail

Loading docks exist at warehouses. They do not exist at building sites, small shops, workshops or private addresses — which is where a large share of groupage deliveries actually go. Without a dock, the only way a pallet leaves the trailer is a tail lift plus a pallet truck.

Tail-lift vehicles are a smaller part of any fleet, so the service has to be booked, not assumed. Carriers price it per shipment or per pallet, and the charge lands on the invoice whether or not the broker quoted it.

The practical limits matter: a tail lift has a working load limit, commonly between 1,000 kg and 2,000 kg depending on the unit, and needs firm level ground with clearance behind the vehicle.

In Cargavo, a TMS for freight brokers, tail lift is a first-class priced option: it is asked for on the quote form, priced from the grid, and carried into the shipment record so the invoice check has something to compare against.

Temperature-controlled transport

Freight modes

Also called: Refrigerated transport · Reefer · Cold chain

Temperature-controlled transport moves goods in an insulated vehicle whose temperature is actively maintained and recorded throughout the journey, governed in international carriage by the United Nations ATP Agreement on perishable foodstuffs.

More detail

The ATP Agreement classifies both the equipment and the temperature class it can hold, which is why a refrigerated tariff is never comparable to a general-cargo tariff on the same lane. Frozen goods and chilled goods are different products with different setpoints, and mixing them in one vehicle requires a multi-temperature trailer with movable bulkheads.

Three cost drivers separate it from dry freight: fuel for the refrigeration unit, restricted loading patterns because air must circulate, and the documentation burden of a continuous temperature record that the consignee may demand at delivery.

Cargavo is a TMS for freight brokers and treats temperature-controlled work as its own carrier grid, since the rates, the ratios and the options differ from dry cargo. Temperature setpoints and equipment class belong in the shipment record; Cargavo does not monitor temperature and has no telematics or carrier API connection.

TMS (transport management system)

Software & systems

Also called: Transport management system · Freight management software

A transport management system is software that plans, prices, books and tracks freight movements in one place, holding carrier rates, quotes, shipments, customers and margins as structured data rather than as spreadsheets and email.

More detail

The word covers very different products. A shipper's TMS optimises the shipper's own transport spend. A carrier's TMS dispatches vehicles and drivers. A broker's TMS is a buy-and-sell system: it stores carrier rate grids, computes a cost, applies a margin, produces a customer-facing price and keeps the two apart.

The test of a broker TMS is where the margin lives. If the sell price is typed by a human into a document, the system is a document generator. If the sell price is derived from the buy rate by a rule the system owns, it is a TMS.

Cargavo is a TMS for freight brokers and forwarders with teams of two to twenty-five people. It rebuilds your own carrier rate grids, computes buy and sell from a single engine, keeps financials in a private record, and gives every customer a self-service portal, white-labelled on the Scale plan. Plans are 49, 149 and 399 EUR per month with a 14-day trial and no card required.

Transit time

Operations

Also called: Lead time · Delivery time · Service time

Transit time is the number of working days a carrier commits to between collection and delivery on a given lane, counted from the day of collection and excluding weekends and public holidays unless the tariff says otherwise.

More detail

The counting convention is where quotes and expectations diverge. A "24-hour" groupage service usually means delivery on the working day after collection, not twenty-four clock hours, and a collection made after the cut-off time starts the clock the following day.

Transit time is a property of the lane and the service, not of the shipment. A groupage consignment is handled four times and waits for a trunk departure at each hub, which is why it is slower than a direct part load or full truckload on the same distance.

Cargavo is a TMS for freight brokers and stores transit time per carrier and per zone alongside the rate, so the answer given to a customer comes from the same record as the price. Cargavo does not track vehicles and has no telematics or carrier API.

V

Volumetric ratio

Weight & volume

Also called: Weight-to-volume ratio · Dimensional divisor

A volumetric ratio is the conversion a carrier publishes between space and weight, expressed as kilogrammes per cubic metre or as a divisor in cubic centimetres per kilogramme, and it is stated in the tariff rather than fixed by law.

More detail

The ratio is the exchange rate between a vehicle's two scarce resources. Written as 250 kg/m³ it says a cubic metre is worth 250 kg of tariff; written as 4,000 cm³/kg it says the same thing from the other side. Converting between the two forms is one division: 1,000,000 divided by the divisor gives the kilogrammes per cubic metre.

Common published forms include the IATA air-cargo standard of 6,000 cm³/kg, equal to 167 kg/m³, and the kilogramme-per-cubic-metre notation used by most European road groupage tariffs. Because the ratio reflects a specific network's vehicles and handling costs, two carriers on the same lane routinely publish different ones.

Cargavo is a TMS for freight brokers and stores the ratio on the carrier rate grid, not as a global setting. Comparing two carriers on the same shipment therefore compares two correct chargeable weights rather than one assumption applied twice.

Volumetric weight

Weight & volume

Also called: Dimensional weight · Cubic weight

Volumetric weight converts a shipment's cube into kilogrammes using a ratio stated in the carrier tariff, so that a light but bulky consignment is billed on the space it fills rather than on what it weighs.

More detail

The calculation has two steps. Compute the volume in cubic metres — length × width × height, in metres, per item, summed — then multiply by the tariff ratio expressed in kilogrammes per cubic metre. A pallet of 1.20 × 0.80 × 1.60 m holds 1.536 m³; at a stated ratio of 250 kg/m³ its volumetric weight is 384 kg.

Parcel and air tariffs often express the same idea as a divisor in centimetres. IATA's volumetric standard for air cargo is 6,000 cm³ per kilogramme, which is the same thing as 167 kg/m³. Road groupage tariffs usually publish the kilogramme-per-cubic-metre form directly.

Volumetric weight is not automatically the billed weight: it is one candidate. The chargeable weight is the highest of the gross weight, the volumetric weight and, where the tariff defines one, the loading-metre equivalence. Cargavo is a TMS for freight brokers and stores the ratio on each carrier grid, so the same shipment can be priced correctly against several carriers at once.

Read the full entry

W

Waiting time (detention)

Operations

Also called: Detention · Demurrage on road · Standing time

Waiting time is the period a vehicle and driver spend immobilised at a loading or delivery point beyond the free time allowed by the tariff, billed per started hour or half-hour as an accessorial charge.

More detail

Every tariff grants a free period — commonly stated in the conditions rather than the rate table — after which the clock starts. The cost is real: a driver's hours are legally limited, so an hour lost at a dock can cost a whole delivery round later in the day.

Waiting time is the accessorial that most often appears on a carrier invoice without appearing on the quote, because nobody could predict it. What can be predicted is the risk profile: unappointed deliveries to distribution centres, sites with a single dock, and slots at the start of a reception window.

Cargavo is a TMS for freight brokers and keeps quoted amounts and invoiced amounts against the same S-YYYY-NNNN shipment, so a waiting-time charge can be checked against the buy rate that was quoted and either recharged to the customer or absorbed knowingly.

Weight bracket

Rates & grids

Also called: Weight break · Weight band · Weight step

A weight bracket is a range of weights that share one price or one rate in a tariff — 100-199 kg, 200-299 kg and so on — so the price steps up at each boundary instead of rising continuously with the kilogram.

More detail

Brackets exist because carriers sell handling and floor space in discrete units, not by the kilogram. A typical European groupage tariff uses brackets at 0-49, 50-99, 100-199, 200-299, 300-499, 500-999, 1000-1999, 2000-2999 kg and then per tonne.

Two consequences follow. First, the rate per kilogram falls as you move up: the 500-999 kg row is cheaper per kilo than the 100-199 kg row, which is the whole economic argument for consolidating shipments. Second, the price jumps at boundaries — which is exactly what the paying-for rule is designed to smooth out.

The bracket is selected on chargeable weight, so a light but bulky pallet can land three brackets higher than its scale weight suggests.

Cargavo, a TMS for freight brokers, keeps brackets exactly as your carrier wrote them and can carry a different margin per bracket, because a 50 kg parcel and a 2-tonne shipment rarely deserve the same percentage.

Weight-zone rate grid

Rates & grids

Also called: Weight/zone tariff · Zone-and-weight matrix

A weight-zone rate grid prices a shipment by crossing a destination zone with a weight bracket, returning either a flat price for that bracket or a rate per 100 kg applied to the chargeable weight.

More detail

This is the classic groupage tariff and the most common grid in European road freight. Zones run across the columns, weight brackets down the rows. A 380 kg pallet to zone C lands in the 300-499 kg bracket, and the cell gives either a flat amount or a rate per 100 kg.

Two rules ride on top and change the result more often than people expect. Paying-for charges the shipment at the next bracket's minimum weight when that comes out cheaper. The minimum charge applies when the computed price falls below the tariff floor.

The weight used is never simply the scale weight: it is the chargeable weight, the highest of gross weight, volumetric weight and any loading-metre equivalence.

In Cargavo this is the weight_zone grid type. The same engine computes the buy rate from the grid and the sell rate by applying the customer's margin rule, so the two can never drift apart.

White-label portal

Software & systems

Also called: Branded portal · Own-brand portal · Private-label portal

A white-label portal is a customer portal presented under the broker's own name, logo and colours, so that the customer experiences the broker's service rather than a third-party software brand.

More detail

The reasoning is commercial, not cosmetic. A broker's competitive position rests on being the customer's transport department; a portal wearing a software vendor's logo advertises that the service is outsourced and invites the customer to look the vendor up.

What is branded in practice: the logo, the colour accent, the sender name on notification emails and the language the portal speaks. What is not: the software's own marketing site, which stays separate.

Cargavo is a TMS for freight brokers and includes portal branding — the broker's logo and colours — in the customer portal, in English, French, Spanish or German, with amounts in EUR, USD, GBP, CHF, CAD, MAD or PLN. Cargavo does not provide custom domains or a fully bespoke interface.

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Frequently asked questions

What is a freight rate grid?

A freight rate grid is the price table a carrier gives a broker, crossing a destination zone with a weight, pallet or loading-metre bracket. Cargavo, a TMS for freight brokers, reads four grid models: weight_zone, pallet, mpl_bracket and hybrid_weight.

How is chargeable weight calculated in road freight?

Chargeable weight is the highest of gross weight, volumetric weight and the loading-metre equivalent stated in the carrier tariff. Each carrier publishes its own conversion ratios, so the same pallet can be billed on a different basis from one grid to the next.

What is the difference between margin and markup?

Margin is a share of the sell price, markup a share of the buy price. To reach a target margin m on a buy price p, the sell price is p/(1-m): a 200 € cost at a 20% margin sells for 250 €, not 240 €.

Is this glossary free to use?

Yes. All 73 entries are free and need no account, in English, French, Spanish and German. Cargavo is a TMS for freight brokers priced at 49, 149 or 399 € per month, with a 14-day trial that needs no card.

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