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Guides  /  Glossary
Glossary

The parcel shipping glossary.

Every parcel and carrier term, in plain English.

From accessorials to zone skipping, here is the vocabulary of parcel shipping, defined clearly so you can read a carrier invoice or agreement with confidence.

Most-looked-up
Billed by sizeDimensional weight
Annual increaseGRI
Distance bandShipping zone
Late-delivery refundGSR
40 terms and counting.
Accessorial
An extra fee added to the base shipping rate for a specific service or condition, such as residential delivery or additional handling.
Additional handling
A surcharge for packages that are oversized, oddly shaped, heavy, or not fully boxed, requiring special handling.
Address correction
A fee charged when a carrier has to correct an incomplete or inaccurate delivery address.
Audit
Reviewing carrier invoices line by line to catch and dispute billing errors and recover refunds.
Base rate
The published or contracted price to move a standard package between two points, before surcharges.
Bid
A carrier's pricing proposal for your business, typically in response to a request for rates.
Billable weight
The weight used to price a shipment: the greater of actual weight and dimensional weight.
Carrier agreement
The contract between a shipper and a carrier defining rates, discounts, surcharges, and terms.
Chargeback
A billed adjustment or fee applied by a carrier, often for a service or correction.
Claim
A request to a carrier for reimbursement on a lost or damaged shipment.
Declared value
The stated value of a shipment's contents, used for liability and insurance, which can carry a fee.
Delivery area surcharge
A fee for delivering to ZIP codes the carrier considers remote or extended.
Demand surcharge
A fee applied to specific services or package types during peak periods, often tied to volume tiers.
DIM divisor
The number used to convert cubic size into dimensional weight; a lower divisor means a higher billed weight.
Dimensional weight
A billable weight derived from a package's size (length × width × height ÷ divisor).
Earned discount
A discount tier unlocked by hitting a volume or spend threshold over a period.
Fuel surcharge
A percentage fee tied to fuel prices, reset regularly and applied to the base rate and many accessorials.
General Rate Increase (GRI)
The annual increase carriers apply to published rates and surcharges, usually effective in late December or January.
Ground
A carrier's economy service moving packages by road, typically the lowest cost for non-urgent freight.
Guaranteed Service Refund (GSR)
A refund owed when a carrier misses a guaranteed delivery commitment.
Hundredweight (CWT)
A pricing method for multiple-package shipments billed per hundred pounds.
Incentive
A negotiated discount off published rates in a carrier agreement.
Last mile
The final leg of delivery from a local facility to the recipient's address.
Manifest
The electronic record of shipments tendered to a carrier.
Minimum charge
The floor price for a shipment regardless of how low the calculated rate would be.
Negotiated rate
A contracted rate that differs from the carrier's published list price.
Oversize / large package
A surcharge category for packages exceeding size or length thresholds.
Peak surcharge
A seasonal fee applied during high-demand periods, especially the holiday season.
Published rate
A carrier's standard list price before any negotiated discounts.
Rated weight
See billable weight: the weight a shipment is actually charged on.
Residential surcharge
A per-package fee for delivery to a home rather than a commercial address.
Reverse logistics
The processes and cost of handling returns back through the supply chain.
Saturday delivery
An accessorial for weekend delivery service.
Service level
The speed and commitment tier of a shipment, such as ground, 2-day, or overnight.
Shipping zone
A band of distance between origin and destination that determines rate; higher zones cost more.
Surcharge
Any fee added on top of the base rate for a specific condition or service.
Tender
To hand off a shipment to a carrier for transport.
Third-party billing
Charging shipping to an account other than the shipper or recipient.
Transit time
The time a shipment takes from pickup to delivery.
Zone skipping
Moving freight in bulk closer to its destination before injecting it into a carrier, to lower zones.

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