Freight Dispatching Terminology Practice Test

Capacity reservation means planning ahead to secure transportation space before it’s actually needed. In dispatch, that means forecasting how much load will move and locking in carriers or equipment in advance so you can meet that demand without scrambling for capacity at the last minute. This helps you maintain service levels, avoid shortages, and stabilize pricing because you’re not waiting for scarce space to appear.

This concept is about guaranteeing available capacity, not about reducing detention fees, which deals with costs after the load is picked up; not about a distribution technique like cross-docking; and not about payment terms, which govern how you pay for services.