Transportation Industry Terminology

Any charge on a freight invoice that is not the base line haul rate. Accessorials cover services performed in addition to the standard point-to-point movement of freight, including detention, fuel surcharges, layover, liftgate, inside delivery, and notification charges. Controlling accessorials is critical to net revenue management.

A transportation provider that owns or leases the trucks and trailers used to move freight — as opposed to a non-asset-based broker or 3PL that arranges transportation using other carriers' equipment. Asset-based carriers have direct control over capacity but carry higher fixed costs.

High-value or theft-prone freight categories — including electronics, pharmaceuticals, alcohol, tobacco, and apparel — that require enhanced security measures such as GPS tracking, sealed trailers, and verified delivery protocols. At-risk cargo typically commands higher insurance premiums.

A load that fills the return leg of a trip after a primary delivery has been completed. Securing a backhaul eliminates deadhead miles on the return route and converts an otherwise empty move into revenue. Finding strong backhaul lanes is essential to carrier profitability.

A legally binding document issued at shipment origin that serves simultaneously as a receipt for goods, a contract of carriage, and in some cases a title document. The BOL must accompany every commercial shipment and is required to file cargo claims, dispute payment, or prove delivery.

A shipment where the identity of the shipper or consignee — or both — is concealed from the carrier by request of the broker or shipper. Used in competitive markets to protect shipper-customer relationships from carrier poaching. Blind shipments require specific BOL formatting.

A formal written demand submitted by a shipper, consignee, or broker to a carrier for compensation for freight that was lost, damaged, or delayed in transit. Cargo claims are governed by the Carmack Amendment. Carriers have nine months from delivery to submit a claim and 30 days to acknowledge receipt.

A licensed motor carrier with FMCSA authority that physically transports freight using its own or leased equipment. Carriers are responsible for the safe transport of freight, FMCSA compliance, driver qualification, and equipment maintenance from pickup to delivery.

The set of documents a carrier must provide to brokers or shippers before hauling freight, typically including operating authority, certificate of insurance, W-9, and a signed setup agreement. Incomplete or outdated carrier packets are the most common reason loads are delayed or reassigned.

A wheeled undercarriage used to transport intermodal shipping containers via truck. Chassis are distinct from standard dry van trailers and are required for drayage and port operations. Chassis are typically owned or leased from chassis pools at intermodal facilities.

The receiving party to whom freight is addressed and delivered. The consignee is listed on the BOL and is typically responsible for accepting the freight, noting any damage, and signing the proof of delivery. The consignee's signature on the POD is required for the carrier to invoice.

A standardized steel box used for intermodal cargo transport. ISO containers come in 20-foot (TEU) and 40-foot (FEU) sizes. Containers can be transported by ship, rail, or truck without reloading freight, making them the foundation of global supply chain logistics.

A motor carrier that transports freight under specific written contracts with individual shippers, as opposed to a common carrier that serves the general public. Contract carriers may limit the commodities they haul and the customers they serve. Most trucking companies operate as contract carriers.

A distribution strategy where inbound freight from a supplier is transferred directly to outbound trucks or trailers with minimal or no warehousing time. Cross-docking reduces storage costs and transit time and is common in grocery, retail, and time-sensitive distribution networks.

Miles driven with an empty trailer between a delivery and the next pickup. Every deadhead mile costs the carrier fuel, driver wages, and equipment wear with zero offsetting revenue. Minimizing deadhead is one of the most controllable factors in carrier and dispatcher profitability.

A time-based accessorial charge for driver delays at a shipper or receiver beyond the contracted free time — typically two hours. Detention must be documented with arrival and delay timestamps and communicated to the broker in real time to be collectible. Uncollected detention is a leading cause of carrier revenue leakage.

A large warehouse facility used to receive, store, and redistribute goods to retail outlets, e-commerce fulfillment points, or end customers. DCs are high-volume freight touchpoints and common origin/destination points for LTL and FTL loads. Operating at DCs often involves strict appointment scheduling.

The short-haul trucking of intermodal containers between ports, rail ramps, and local warehouses or distribution centers. Drayage drivers typically operate within a specific metro radius and require port credentials, chassis access, and knowledge of port gate procedures. Drayage is one of the fastest-growing trucking segments.

A freight operation where a driver drops one trailer (loaded or empty) at a facility and hooks another without waiting for loading or unloading. Drop and hook arrangements are common with high-volume shippers and eliminate most detention exposure. They require trailer pool management by the carrier.

The most common trailer type in over-the-road trucking — an enclosed, non-refrigerated trailer typically 53 feet long used to haul general freight. Dry van is the standard equipment type for most load board freight and is the entry point for most new carriers and owner-operators.

A carrier or driver's projected time for arriving at a pickup, delivery, or checkpoint. Accurate ETAs are a core dispatcher responsibility and directly affect shipper satisfaction, on-time delivery metrics, and detention management. ETAs should be updated proactively whenever delays occur.

A financial service where a carrier assigns freight invoices to a third-party factoring company in exchange for immediate payment at a discounted rate. Factoring companies collect from the broker and absorb the payment risk. Factoring is widely used by small carriers and owner-operators to manage cash flow against 30–60 day broker payment terms.

An open trailer with no sides or roof used to haul oversized, heavy, or awkwardly shaped freight such as steel, lumber, machinery, and construction materials. Flatbed loads require special securement equipment (straps, chains, tarps) and often command premium rates over dry van lanes.

A shipping term defining the point at which ownership of freight transfers from the seller to the buyer. FOB Origin means the buyer owns and risks the freight from the seller's dock. FOB Destination means the seller retains risk until delivery is complete. FOB terms affect cargo insurance requirements and liability exposure.

A federally licensed intermediary who arranges transportation of freight between shippers and carriers for compensation. Brokers must have FMCSA broker authority and a $75,000 bond. Brokers do not take possession of the freight — they arrange its movement and assume contractual responsibility between parties.

A shipment large enough to fill or justify dedicating an entire trailer, typically 24–44 pallets or 20,000–44,000 lbs of freight. FTL shipments move point-to-point without intermediate stops. Most load board freight and OTR carrier operations involve FTL shipments.

A variable per-mile or percentage add-on to the base freight rate designed to offset diesel fuel price fluctuations. Most carriers use a fuel surcharge matrix tied to the U.S. DOE national average diesel price. FSC is typically renegotiated alongside base rates in contract renewals.

The total weight of a commercial vehicle including the tractor, trailer, and cargo. Federal law limits GVW on interstate highways to 80,000 lbs without special permits. Overweight violations are a serious FMCSA compliance issue and carry significant per-axle penalties at weigh stations.

Hazardous materials — substances regulated by the DOT that pose risks to health, safety, or the environment during transportation. Carriers transporting hazmat must have FMCSA hazmat authority, proper placards, shipping papers, and driver hazmat endorsement. Hazmat violations carry elevated CSA score impact.

Cargo with replacement value exceeding standard cargo insurance thresholds — typically electronics, pharmaceuticals, jewelry, or luxury goods. High-value freight requires enhanced insurance coverage, stricter security protocols, and often carrier vetting before brokers will tender loads.

The movement of cargo in standardized containers using two or more transportation modes — typically ocean vessel, rail, and truck — without unloading the freight between modes. Intermodal transportation reduces per-unit freight costs over long distances and is a significant growth segment in domestic logistics.

A specific freight route defined by origin and destination geography — typically at the city, state, or region level. Lane performance (rate per mile, volume, and backhaul availability) is the fundamental unit of carrier network analysis. Strong lanes have consistent freight, competitive rates, and good backhaul options.

The final leg of freight delivery from a local distribution hub to the end consumer or business location. Last mile is typically the most expensive and time-consuming portion of the delivery chain per unit distance and is a major focus area for urban logistics and e-commerce fulfillment operations.

An accessorial charge for a driver who is required to remain at a location overnight or for an extended period due to shipper, receiver, or weather-related delays beyond the carrier's control. Layover rates must be negotiated and included in the rate confirmation before the driver is detained.

A freight shipping method where multiple shippers share space in a single trailer. LTL is used for shipments too large for parcel services but too small to fill a dedicated trailer. LTL shipments are handled at carrier terminals and may take 1–5 days longer to deliver than FTL due to multi-stop routing.

A third-party labor provider hired to load or unload freight at a warehouse or distribution center. Lumper fees are an accessorial charge that must be addressed in the rate confirmation. Drivers are not obligated to perform lumper work without a separate written agreement, and receipts should be obtained for all lumper payments.

A shipping document that lists all cargo aboard a vehicle, vessel, or aircraft — including shipment details, weights, origins, and destinations. Trucking manifests are used in multi-stop LTL operations and are required documentation for customs declarations in cross-border shipments.

A company or individual that provides commercial transportation of property or passengers by motor vehicle in interstate commerce. Motor carriers are regulated by FMCSA, must maintain operating authority, and are responsible for compliance with all applicable federal safety regulations.

The actual revenue a carrier or owner-operator retains after deducting dispatch fees, factoring fees, fuel surcharge splits, and any other deductions from the gross rate confirmation amount. Understanding net rate versus gross rate is essential for accurate load profitability analysis.

A transportation provider — typically a freight broker, 3PL, or digital freight platform — that arranges transportation using third-party carriers' equipment rather than owning trucks or trailers. Non-asset models offer flexibility and scalability but do not control physical capacity.

A key performance metric measuring the percentage of shipments delivered within the contracted delivery window. OTD is the primary performance metric tracked by shippers and brokers. Consistent OTD performance is required to maintain shipper relationships and secure contract freight.

A flat wooden or plastic platform used to support stacked freight for forklift or pallet jack handling. Standard pallet dimensions are 48" x 40" (GMA pallet). A standard 53-foot dry van trailer can hold 26 standard pallets in a single row. Pallet count is a key factor in LTL freight rating.

A signed document confirming that freight was delivered to the consignee at the delivery location. The POD typically includes the receiver's signature, name, date, time, and any noted exceptions (damage, shortages). A clean POD without exceptions is required to invoice brokers for the full load amount.

An accelerated payment option offered by some brokers allowing carriers to receive payment within 1–3 business days instead of standard 30+ day terms, in exchange for a fee deducted from the invoice (typically 1.5%–3%). Quick pay is an alternative to factoring for carriers with limited cash reserves.

A legally binding document issued by a freight broker confirming rate, load details, pickup and delivery requirements, and accessorial terms. The rate confirmation must be signed by the carrier or dispatcher before the driver loads the freight. It governs the financial and operational terms of each load movement.

A refrigerated trailer equipped with a mechanical refrigeration unit used to transport temperature-sensitive cargo — food, pharmaceuticals, flowers, and other perishables. Reefer operations require temperature monitoring logs, pre-cooling procedures, and specific FMCSA handling documentation.

The process of moving goods from the end consumer or delivery point back through the supply chain — including product returns, recycling, and waste disposal. Reverse logistics is a growing segment in e-commerce and retail transportation, requiring specific documentation and carrier capabilities.

The party responsible for tendering freight for transportation — typically a manufacturer, retailer, or distributor. The shipper prepares the BOL, packages the freight, and is responsible for accurate freight descriptions, weights, and hazmat declarations. Shippers may work directly with carriers or through freight brokers.

The real-time freight marketplace where loads are posted and covered based on current supply and demand — typically through load boards. Spot rates fluctuate with market conditions and are generally more volatile than contract rates. Carriers who depend heavily on spot freight face significant revenue instability.

The complete network of organizations, processes, and resources involved in producing and delivering a product from raw material sourcing to the end customer. Transportation is a critical component of every supply chain — disruptions in carrier capacity, compliance, or routing directly impact supply chain performance.

A published schedule of rates, rules, and charges for transportation services. Tariffs define base rates, fuel surcharge tables, accessorial charges, and liability limits. In regulated contexts, tariffs are legally binding. Most modern trucking operates under individual contract rates rather than published tariffs.

An external company that manages logistics operations — including transportation, warehousing, fulfillment, and supply chain management — on behalf of a shipper. 3PLs range from asset-based carriers with warehousing capabilities to non-asset technology platforms managing carrier networks and freight flows.

A compensation charge when a carrier is dispatched and the load is canceled after the driver is en route or positioned. TONU rates vary but typically cover driver time and fuel. TONU must be pre-negotiated and documented in the rate confirmation — verbal agreements are rarely honored.

The time elapsed from freight pickup to delivery. Transit time standards are established in the rate confirmation and broker load tender. Failure to meet transit time commitments can result in claim deductions, relationship damage, and negative load board carrier ratings.

Software used to optimize warehouse operations including inventory tracking, order fulfillment, receiving, and shipping. WMS data directly impacts carrier appointment scheduling, detention management, and load readiness. Understanding WMS constraints at shipper/receiver facilities improves dispatcher planning.