Understanding EDI 204: Motor Carrier Load Tender - Transaction Set

🔗 Introduction

In the logistics and transportation industry, efficient communication between shippers and carriers is crucial. The EDI 204 transaction set, known as the Motor Carrier Load Tender, facilitates this by electronically transmitting shipment details from shippers or freight brokers to motor carriers.

🔍 What is EDI 204?

EDI 204 is an electronic document used to tender a shipment to a motor carrier. It replaces traditional methods like phone calls, faxes, or emails, offering a standardized and automated approach to load tendering.

📝 Key Information Included:

• hipment origin and destination
• Pickup and delivery dates and times
• Freight description, weight, and volume
• Special handling instructions
• Equipment requirements (e.g., dry van, reefer)
• Reference numbers and billing details

🔄 How EDI 204 Works

1. Load Planning: The shipper or broker plans the shipment details.
2. EDI 204 Transmission: The shipment information is sent electronically to the carrier.
3. Carrier Evaluation: The carrier assesses the load details.
4. Response: The carrier responds with an EDI 990, indicating acceptance or rejection.
5. Load Execution: Upon acceptance, the carrier proceeds with pickup and delivery.
6. Shipment Updates: Further EDI transactions, like EDI 214, provide shipment status updates.

🎯 Benefits of Using EDI 204

• Efficiency: Automates the load tendering process, reducing manual tasks.
• Accuracy: Standardized format minimizes errors.
• Visibility: Provides real-time shipment information to all parties.
• Improved Relationships: Fosters better communication between shippers and carriers.
• Cost Savings: Reduces administrative costs associated with manual processes.