Freight Shipping Glossary
A comprehensive reference of freight shipping, trucking, and logistics terminology. Whether you are a first-time shipper or an experienced logistics professional, this glossary covers the terms you need to know.
Accessorial Charges
Additional fees beyond the base linehaul rate for extra services required during pickup, transit, or delivery. Common accessorials include liftgate service, inside delivery, residential delivery, limited access locations, detention, redelivery, and hazmat handling. Accessorial charges can significantly increase the total cost of a shipment if not anticipated in advance.
API Integration
The use of Application Programming Interfaces to connect different software systems in the freight and logistics ecosystem, enabling real-time data exchange. API integrations allow a shipper's ERP to communicate with a broker's TMS, or a TMS to pull live tracking data from a carrier's system, without manual intervention. APIs are increasingly replacing older EDI connections because they are faster, more flexible, and easier to implement.
Backhaul
A load picked up for the return trip after a carrier delivers their primary load, turning otherwise empty (deadhead) miles into revenue. Backhauls are typically available at lower rates because the carrier would otherwise drive home empty. Shippers located in markets with strong inbound but weak outbound freight often benefit from backhaul pricing.
Bill of Lading (BOL)
The most important document in freight shipping, serving as a receipt for goods, a contract of carriage between the shipper and carrier, and a document of title. The BOL lists the shipper, consignee, commodity description, weight, piece count, freight class, and any special instructions. It must be signed by the driver at pickup and the receiver at delivery.
BOL
The standard abbreviation for Bill of Lading, the primary shipping document that accompanies every freight shipment. The BOL is created by the shipper, travels with the freight, and is signed at both origin and destination. It is the legal record of what was shipped, who shipped it, and where it is going.
Car Hauler (Auto Carrier)
A specialized multi-level trailer designed to transport passenger vehicles, trucks, and SUVs. Open car haulers can carry 7 to 10 vehicles on adjustable ramps, while enclosed car haulers protect high-value or classic vehicles from weather and road debris. Car haulers require special loading expertise to maximize capacity without damaging vehicles.
Carmack Amendment
A federal law (part of the Interstate Commerce Act) that governs carrier liability for loss or damage to freight during interstate transportation. Under the Carmack Amendment, a carrier is presumptively liable for freight damage that occurs while the goods are in their possession. To file a claim, the shipper must prove the freight was in good condition when tendered to the carrier, the freight was damaged or lost at delivery, and the amount of damages. The carrier can only escape liability by proving the damage was caused by an act of God, public enemy, shipper's own actions, public authority, or the inherent nature of the goods.
Carrier
A company or individual that physically transports freight using their own trucks and drivers. Carriers range from owner-operators with a single truck to large fleets with thousands of vehicles. To operate legally in interstate commerce, carriers must have an active DOT number, MC number (for-hire), adequate insurance, and compliant drivers and equipment. Carriers are the actual movers of freight in the supply chain.
Certificate of Insurance (COI)
A document issued by an insurance company proving that a carrier has active auto liability, cargo, and general liability insurance coverage. Shippers and brokers require COIs before tendering freight to verify that a carrier has adequate coverage to protect the shipment. The COI lists policy numbers, coverage amounts, effective dates, and the insurance company's contact information.
Chassis
A wheeled frame used to transport intermodal shipping containers over the road. A chassis has no cargo area of its own; instead, a container is locked onto its frame for the trucking portion of an intermodal shipment. Chassis are typically owned by ocean carriers, leasing companies, or intermodal equipment providers and are available at ports and rail yards.
Commercial Invoice
A document used in international shipping that declares the value, quantity, and description of goods being exported or imported. It is required by customs authorities to assess duties and taxes, and it serves as the primary document for clearing goods through customs. The commercial invoice must include the buyer, seller, country of origin, Harmonized System (HS) codes, and terms of sale.
Conestoga Trailer
A flatbed trailer equipped with a retractable, rolling tarp system that can cover and uncover the load by sliding along rails on the trailer deck. Conestogas combine the side and top loading flexibility of a flatbed with the weather protection of a dry van. They are ideal for freight that needs crane or forklift loading from the side but also requires protection from rain and debris.
Consignee
The party named on the bill of lading as the intended receiver of a freight shipment at the destination. The consignee is responsible for accepting delivery, inspecting the freight, signing the proof of delivery, and noting any damage or shortages. In many transactions, the consignee is the buyer or end customer, though it can also be a warehouse, distribution center, or any designated receiving location.
Contract Rate
A pre-negotiated freight rate established through a formal agreement between a shipper and carrier (or broker) for a specified period, typically one year. Contract rates provide price stability and guaranteed capacity for the shipper, while giving the carrier predictable revenue and volume. They are usually lower than spot rates but require volume commitments.
Cross-Docking
A logistics practice where incoming freight is unloaded from an inbound truck and loaded directly onto outbound trucks with minimal or no storage time in between. Cross-docking reduces warehousing costs and speeds up delivery by eliminating the need to store inventory. It is commonly used by LTL carriers at their terminals and by large retailers managing high-volume distribution.
CSA Scores (Compliance, Safety, Accountability)
A safety measurement system operated by FMCSA that evaluates motor carriers across seven Behavior Analysis and Safety Improvement Categories (BASICs): Unsafe Driving, Crash Indicator, Hours-of-Service Compliance, Vehicle Maintenance, Controlled Substances, Hazardous Materials, and Driver Fitness. Scores are percentile-based (0-100), with higher scores indicating worse safety performance. Carriers with high scores in certain BASICs may face intervention by FMCSA.
Customs Declaration
A formal document submitted to customs authorities declaring the contents, value, origin, and classification of goods being imported or exported across international borders. In the US, the customs declaration (CBP Form 7501 for imports) is used by Customs and Border Protection to assess duties, taxes, and compliance with trade regulations. Incorrect or fraudulent declarations can result in penalties, seizure of goods, or criminal charges.
CWT (Per Hundredweight)
A pricing unit used in LTL and partial truckload shipping where the rate is quoted per 100 pounds of freight. CWT rates are combined with freight class, origin, destination, and applicable discounts to calculate the total shipping cost. This pricing method allows carriers to charge proportionally based on weight.
Deadhead
Miles driven by a truck without a load, generating no revenue. Deadhead typically occurs when a carrier must reposition to pick up their next load or return to their home base. Deadhead miles increase the effective cost per loaded mile and are a key factor in rate negotiations. Shippers in imbalanced markets (more outbound than inbound freight) often pay higher rates because carriers factor in deadhead costs.
Dedicated Fleet
A transportation arrangement where a carrier assigns specific trucks and drivers exclusively to a single shipper's freight. Dedicated fleets provide consistent capacity, predictable costs, trained drivers familiar with the shipper's facilities, and branded trucks if desired. This model is ideal for shippers with steady, predictable freight volumes who need reliable daily or weekly service. Costs are typically structured as a fixed weekly or monthly charge plus a per-mile rate.
Demurrage
A penalty charge assessed when a shipping container, railcar, or trailer is not loaded or unloaded within the allotted free time at a port, rail terminal, or warehouse. In ocean freight, demurrage applies to containers sitting at the port terminal beyond the free days. It differs from detention, which applies to equipment held at the shipper's or receiver's location. Demurrage charges can escalate quickly, often increasing per day the longer the equipment is held.
Detention
A fee charged when a truck is held at a shipper's or receiver's facility beyond the allotted free time for loading or unloading. Most carriers allow 1 to 2 hours of free time before detention charges begin, typically at $50 to $100 per hour. Detention is one of the most common accessorial charges and is a significant concern for carriers because it reduces their available driving hours.
Distribution Center (DC)
A specialized warehouse facility designed for high-volume receiving, sorting, and rapid redistribution of goods to retail stores, customers, or other locations. Unlike traditional warehouses focused on long-term storage, distribution centers emphasize throughput — moving products in and out as quickly as possible. DCs typically use automated sorting systems, cross-docking, and sophisticated warehouse management systems (WMS) to maximize efficiency.
Door-to-Door Shipping
A complete shipping service where the carrier or logistics provider handles the entire transportation process from the shipper's location to the receiver's location, including pickup, linehaul, and delivery. Door-to-door service eliminates the need for the shipper or receiver to transport freight to or from a carrier terminal. Most FTL shipments are door-to-door by nature, while LTL and intermodal shipments may offer it as a premium service.
DOT Inspection
A roadside or facility inspection conducted by DOT-certified law enforcement officers to verify that commercial vehicles and drivers comply with federal safety regulations. Inspections are categorized into six levels, from Level I (most comprehensive: full vehicle and driver inspection) to Level VI (enhanced inspection for radioactive shipments). Inspection results are recorded in the FMCSA database and affect the carrier's CSA scores.
DOT Number
A unique identification number assigned by the US Department of Transportation to every commercial motor carrier, freight broker, and freight forwarder operating in interstate commerce. The DOT number is used to track a company's safety record, compliance reviews, crash data, and inspection results. It must be displayed on both sides of every commercial vehicle the carrier operates.
Double Drop Trailer
A trailer with a well (lowered center section) between two raised sections at the front and rear, creating a bathtub-like profile. The lowered center section provides maximum height clearance for tall freight while maintaining standard connection points. Double drops can handle loads that are too tall for step decks but do not require the drive-on ramp of an RGN.
Drayage
Short-distance trucking that moves freight between transportation hubs, such as from a port to a warehouse, or from a rail yard to a distribution center. Drayage is a critical link in the intermodal supply chain, connecting ocean, rail, and long-haul trucking. Despite being short in distance (typically under 100 miles), drayage can be expensive due to port congestion, chassis availability, and wait times.
Drop Trailer (Drop and Hook)
A service where the carrier drops an empty trailer at the shipper's facility to be loaded at the shipper's convenience, then returns later to pick up the loaded trailer and drop another empty. Drop-trailer programs eliminate detention charges because the driver does not wait during loading or unloading. They require the shipper to have yard space for staging trailers.
Dry Van
A fully enclosed, non-temperature-controlled trailer used for general freight. Dry vans are the most common trailer type in the US, accounting for roughly 70% of all truckload shipments. They protect cargo from weather and road debris while allowing standard dock-height loading.
EDI (Electronic Data Interchange)
A standardized electronic format for exchanging business documents between trading partners' computer systems without human intervention. In freight, common EDI transactions include the 204 (load tender), 214 (shipment status), 210 (freight invoice), and 990 (response to load tender). EDI eliminates manual data entry, reduces errors, and speeds up communication between shippers, carriers, and brokers.
ELD (Electronic Logging Device)
A federally mandated electronic device connected to a truck's engine that automatically records driving time and hours-of-service data, replacing paper logbooks. ELDs track engine hours, vehicle movement, miles driven, and location to ensure accurate and tamper-resistant records of driver duty status. The FMCSA ELD mandate requires nearly all interstate commercial drivers to use certified ELD devices.
Expedited Freight
A premium shipping service that guarantees faster-than-standard delivery through dedicated trucks, team drivers, air freight, or a combination of modes. Expedited freight bypasses standard routing and consolidation processes, moving directly from origin to destination with minimal stops. Rates are significantly higher than standard shipping (often 50-200% more) but are justified when downtime costs, production stoppages, or missed deadlines are more expensive than the premium freight charge.
First-Mile Pickup
The initial leg of a shipment's journey from the shipper's location (factory, warehouse, farm) to the first transportation hub or carrier terminal. First-mile logistics involves scheduling pickups, preparing freight for transport, loading trucks, and generating shipping documentation. Efficient first-mile operations set the tone for the entire shipment and can prevent downstream delays.
Flatbed
An open-deck trailer with no sides, roof, or enclosure, used for oversized, heavy, or irregularly shaped freight. Flatbeds allow loading from the top, sides, and rear using cranes or forklifts. Cargo is secured with chains, straps, or tarps depending on the commodity.
FMCSA (Federal Motor Carrier Safety Administration)
The federal agency within the US Department of Transportation responsible for regulating the trucking and bus industries. FMCSA sets and enforces safety standards, issues operating authority (MC numbers), maintains the SAFER database of registered carriers, conducts compliance reviews, and administers the CSA safety measurement system. Every carrier and broker operating in interstate commerce must register with FMCSA.
Fourth-Party Logistics (4PL)
A supply chain integrator that manages and coordinates a company's entire logistics operation, including oversight of multiple 3PLs, carriers, and technology providers. Unlike a 3PL that provides specific logistics services, a 4PL acts as a single point of accountability for the entire supply chain, designing and managing the logistics strategy on behalf of the client. 4PLs are typically used by large enterprises with complex, multi-modal, multi-geography supply chains.
Freight Audit
The process of reviewing and verifying freight invoices against rate agreements, bills of lading, and actual shipment data to identify billing errors, duplicate charges, and overcharges. Freight audits can be performed manually, through TMS software, or by specialized third-party audit firms. Studies show that 3-7% of freight invoices contain errors, making freight audit a significant cost-saving practice for shippers with substantial transportation spend.
Freight Bill (Invoice)
The invoice sent by a carrier or broker to the shipper for payment of freight charges. A freight bill itemizes the linehaul rate, fuel surcharge, and any accessorial charges, referencing the BOL number, PRO number, and shipment details. Freight bills are typically due within 15 to 30 days of delivery.
Freight Broker
A licensed intermediary that connects shippers who need to transport freight with carriers who have available trucks. Freight brokers do not own trucks or haul freight; instead, they negotiate rates, coordinate logistics, verify carrier credentials, and manage the shipment process. Brokers must hold an active MC number from FMCSA and maintain a $75,000 surety bond or trust fund. They earn revenue from the margin between what the shipper pays and what the carrier receives.
Freight Class
A standardized classification system (NMFC classes 50 through 500) used by LTL carriers to determine shipping rates based on a commodity's density, stowability, handling difficulty, and liability. Lower freight classes (e.g., class 50) represent dense, easy-to-handle freight and cost less to ship. Higher classes (e.g., class 500) represent light, bulky, or fragile freight and cost more.
Freight Forwarder
A company that arranges the transportation of goods on behalf of shippers, typically specializing in international and multi-modal shipments. Unlike freight brokers who focus on domestic trucking, freight forwarders handle ocean freight, air cargo, customs clearance, documentation, cargo insurance, and door-to-door logistics across borders. They consolidate shipments from multiple clients to negotiate better rates with ocean and air carriers.
FSMA (Food Safety Modernization Act)
Federal legislation administered by the FDA that establishes requirements for the safe transportation of food products. The FSMA Sanitary Transportation Rule requires shippers, carriers, and receivers of food to follow practices that prevent contamination during transportation, including temperature control, vehicle cleanliness, and proper loading procedures. It applies to all food transported by motor or rail vehicle.
FTL
The standard abbreviation for Full Truckload, a shipping mode where one shipper's freight occupies an entire trailer. FTL is the most common mode for shipments over 10,000 lbs, providing dedicated equipment, direct routing, and minimal handling. Most FTL shipments move on dry van, flatbed, or reefer trailers.
Fuel Surcharge (FSC)
An additional charge added to freight rates that fluctuates with diesel fuel prices. Fuel surcharges protect carriers from volatile fuel costs by passing the variable portion of fuel expense to the shipper. The surcharge is typically calculated as a percentage of the linehaul rate, based on the current DOE (Department of Energy) national diesel price index.
Fulfillment Center
A warehouse facility specifically designed for processing individual customer orders, typically for e-commerce and direct-to-consumer businesses. Fulfillment centers handle receiving inventory, storing products, picking individual items from orders, packing them for shipment, and handing them off to parcel or freight carriers. They differ from distribution centers, which primarily ship in bulk to retail locations rather than individual customers.
Full Truckload (FTL)
A shipping mode where a single shipper books an entire trailer for their freight, regardless of whether the trailer is completely full. FTL shipments move directly from origin to destination without stopping at intermediate terminals, resulting in faster transit times and less freight handling compared to LTL. FTL is typically the most economical option for shipments over 10,000 lbs or more than 6 pallets.
Hazmat (Hazardous Materials)
Any substance or material that poses a risk to health, safety, property, or the environment during transportation. Hazmat shipping in the US is regulated by the DOT Pipeline and Hazardous Materials Safety Administration (PHMSA) and requires special packaging, labeling, placarding, driver certification, and documentation. The nine hazmat classes include explosives, gases, flammable liquids, toxic substances, radioactive materials, and corrosives.
Headhaul
The primary, revenue-generating direction of a freight lane where demand for trucks exceeds supply. Headhaul lanes command higher rates because carriers actively seek loads going in this direction. The opposite direction (backhaul) typically has lower rates due to excess carrier capacity. Understanding headhaul versus backhaul dynamics is key to negotiating competitive freight rates.
Hopper Trailer
A trailer with a V-shaped or funnel-shaped bottom used to transport dry bulk commodities like grain, sand, gravel, fertilizer, and animal feed. Hoppers unload from the bottom via gravity through discharge gates, eliminating the need for mechanical unloading equipment. They come in open-top and covered (pneumatic) configurations.
Hot Shot
A trucking service that uses medium-duty trucks (typically Class 3-5 pickups or flatbeds with gooseneck trailers) to haul smaller, time-sensitive loads that do not require a full-size tractor-trailer. Hot shot loads are common in the oil and gas, construction, and agricultural industries where equipment parts need to reach remote locations quickly. Hot shot trucks can access roads and sites that standard 18-wheelers cannot.
Hours of Service (HOS)
Federal regulations that limit the number of hours a commercial truck driver can operate a vehicle before taking mandatory rest breaks. Under current rules, drivers can drive a maximum of 11 hours within a 14-hour on-duty window after 10 consecutive hours off duty. Drivers must also take a 30-minute break after 8 hours of driving. HOS rules are designed to prevent fatigue-related crashes.
Hundredweight
A unit of measurement equal to 100 pounds, commonly abbreviated as CWT (from the Latin centum for hundred and the English weight). Hundredweight is the standard pricing unit for LTL freight, where carriers publish rate tables showing the cost per 100 pounds by freight class and lane. It provides a standardized way to compare rates across different shipment sizes.
Last-Mile Delivery
The final leg of a shipment's journey from a local hub, warehouse, or distribution center to the end destination — often a residential address, retail store, or business location. Last-mile delivery is typically the most expensive and logistically challenging portion of the supply chain due to smaller vehicles, individual stops, traffic, access restrictions, and customer availability. It accounts for up to 53% of total shipping costs.
Less-Than-Truckload (LTL)
A shipping mode where multiple shippers share space on the same trailer, each paying only for the portion of the trailer their freight occupies. LTL is ideal for shipments between 150 and 10,000 lbs that do not require a full trailer. LTL freight moves through a network of terminals where it is consolidated, sorted, and redistributed, which means longer transit times but lower costs for smaller shipments.
Linehaul
The base transportation charge for moving freight from origin to destination, excluding fuel surcharges, accessorials, and other add-on fees. Linehaul is the core rate component that reflects distance, equipment type, market conditions, and lane balance. In FTL shipping, linehaul is typically quoted as a flat rate or per-mile rate. In LTL, it is calculated from CWT rates and freight class.
Live Load
A loading process where the truck driver waits at the shipper's facility while the trailer is loaded. Unlike drop-trailer arrangements, the driver stays with the truck during the entire loading process. Live loading is standard for most FTL and LTL pickups, but excessive loading times can result in detention charges to the shipper.
Live Unload
An unloading process where the truck driver waits at the receiver's facility while the trailer is unloaded. The driver remains with the truck until the freight is removed, the receiver checks the shipment against the BOL, and the proof of delivery is signed. Like live loading, excessive unloading times can trigger detention charges.
Load Board
An online marketplace where freight brokers and shippers post available loads and carriers search for freight to haul. Load boards are the primary tool for matching available trucks with available freight in the spot market. Major load boards include DAT, Truckstop.com (now Trucker Path), and 123Loadboard. They display load details including origin, destination, equipment type, weight, rate, and contact information.
Logistics
The planning, execution, and management of the movement and storage of goods, services, and information between the point of origin and the point of consumption. Logistics encompasses transportation, warehousing, inventory management, order fulfillment, and supply chain coordination. While supply chain refers to the entire network, logistics focuses specifically on the operational aspects of moving and storing goods.
Lowboy Trailer
An extremely low-profile trailer with a deck height of approximately 18 to 24 inches off the ground, designed to haul the tallest and heaviest equipment. Lowboys can typically carry 40,000 to 80,000 lbs and are used primarily for construction equipment, industrial machinery, and other oversize loads. The low deck height allows tall cargo to stay under bridge clearance limits.
LTL
The standard abbreviation for Less-Than-Truckload, a shipping mode where multiple shippers share trailer space. LTL carriers operate hub-and-spoke terminal networks, consolidating freight from multiple shippers onto line-haul trailers between cities. Pricing is based on freight class, weight, origin, destination, and applicable accessorial charges.
Lumper
A third-party laborer or crew hired to load or unload freight at a warehouse, distribution center, or dock facility. Lumpers are independent of both the carrier and shipper, and are most common at grocery and retail DCs. While lumper services add cost, they speed up loading and unloading and protect drivers from having to handle freight they are not equipped or insured to move.
Lumper Fee
A charge for third-party labor used to load or unload freight at a facility, most commonly at grocery and retail distribution centers. Lumper services are typically required by the receiver, but the cost is often passed back to the shipper or carrier. Lumper fees can range from $100 to $500 or more depending on the load size and commodity.
Manifest
A comprehensive document listing all shipments, cargo, or items carried on a single truck, trailer, vessel, or aircraft. In trucking, a manifest is used when a carrier is hauling multiple LTL shipments on one trailer, listing each BOL, shipper, consignee, and freight details. It helps with load planning, delivery sequencing, and compliance inspections.
MC Number (Motor Carrier Number)
An operating authority number issued by FMCSA that authorizes a company to transport regulated commodities for hire in interstate commerce. While the DOT number identifies the company, the MC number grants the legal authority to operate as a for-hire carrier or freight broker. Obtaining an MC number requires filing an application, meeting insurance requirements, and paying a filing fee. New authorities typically take 3 to 6 weeks to become active.
Multi-Stop
A truckload shipment with more than one pickup or delivery location on the same route. Multi-stop loads allow shippers to consolidate smaller shipments going in the same direction onto a single truck, reducing costs compared to booking separate shipments. Each additional stop typically incurs a stop-off charge of $50 to $200.
Operating Authority
The legal permission granted by FMCSA for a company to operate as a for-hire motor carrier, freight broker, or freight forwarder in interstate commerce. Operating authority is represented by an MC number and comes in different types: common carrier (property), contract carrier, broker, and freight forwarder. Without active operating authority, a company cannot legally haul freight for compensation across state lines.
Out of Service (OOS)
A status applied to a commercial vehicle or driver that has been found in violation of safety regulations during a DOT inspection, prohibiting them from operating until the violations are corrected. An OOS order on a vehicle means the truck cannot move until mechanical defects are repaired. An OOS order on a driver means they cannot operate a commercial vehicle until they come back into compliance (e.g., completing required rest hours or obtaining a valid medical certificate).
Oversize/Overweight Permit
A permit issued by state transportation departments that authorizes a carrier to transport loads exceeding standard legal dimensions or weight limits on specific routes. Oversize permits are required when a load exceeds 8.5 feet wide, 13.5 feet tall, 53 feet long, or 80,000 lbs gross weight. Each state has its own permit requirements, fees, and restricted travel times (many prohibit oversize moves at night or on weekends). Multi-state loads require separate permits from each state on the route.
Packing List
A detailed document listing the contents of a shipment, including item descriptions, quantities, weights, and dimensions for each package, pallet, or container. Unlike the BOL, which is a legal contract, the packing list is an inventory document used for loading verification, customs clearance, and receiving at the destination. It helps receivers check the actual freight against what was ordered.
Pallet
A flat wooden, plastic, or metal platform used to stack, store, and transport freight. The standard pallet in the US (GMA pallet) measures 48 inches by 40 inches. Palletized freight is handled by forklifts and pallet jacks, making loading and unloading faster and safer. A standard 53-foot dry van can fit 26 pallets loaded two-deep (13 rows of 2).
Partial Truckload (PTL)
A shipping mode that falls between FTL and LTL, typically for shipments of 6 to 18 pallets or 8,000 to 28,000 lbs. Partial truckload offers benefits of both: lower cost than booking a full truck, with less handling and faster transit than LTL because the freight does not move through terminals. Partials are often combined with one or two other shipments going in the same direction.
Placarding
The practice of displaying diamond-shaped warning signs on all four sides of a truck or trailer to identify the class of hazardous material being transported. Placards are color-coded and numbered according to the DOT hazmat classification system (e.g., red for flammables, yellow for oxidizers, white for poisons). Placarding is legally required when transporting hazmat quantities that exceed specified thresholds and helps emergency responders identify risks in the event of an accident.
POD
The standard abbreviation for Proof of Delivery, the signed document confirming a shipment was received at the destination. PODs are required by brokers and shippers before they release payment to the carrier. Electronic PODs (ePODs) captured via smartphone or in-cab scanning are increasingly replacing paper PODs.
Pool Distribution
A shipping strategy where a full truckload of freight is shipped to a regional hub, then broken down and distributed to multiple final destinations using smaller trucks. Pool distribution reduces long-haul transportation costs by consolidating freight for the linehaul portion and using local delivery for the last mile. It is commonly used by consumer goods companies delivering to multiple retail locations in a metro area.
Port Drayage
The trucking service that moves shipping containers between a seaport and nearby warehouses, distribution centers, or rail yards. Port drayage is a specialized form of drayage that deals with the unique challenges of port operations, including chassis availability, terminal appointment systems, container weight verification, and customs hold releases. Port drayage carriers must be registered with the port authority and comply with port-specific environmental regulations.
Proof of Delivery (POD)
A document signed by the receiver confirming that a shipment was delivered in acceptable condition. The POD typically includes the delivery date and time, the name and signature of the person who accepted the freight, and any notes about damage or shortages. It is essential for invoicing, payment release, and freight claims.
Rate Confirmation
A document that serves as the binding agreement between a carrier (or driver) and a broker or shipper for a specific load. It details the pickup and delivery locations, dates, freight description, rate, payment terms, and any special requirements. The rate confirmation must be signed by the carrier before the load is dispatched and serves as proof of the agreed-upon terms.
Real-Time Visibility
The ability to track and monitor the exact location, status, and condition of freight shipments at any moment during transit using GPS, ELD data, IoT sensors, and integrated software platforms. Real-time visibility goes beyond simple location tracking to include temperature monitoring, estimated time of arrival (ETA) predictions, exception alerts, and automated status notifications. It has become a baseline expectation for modern shippers.
Reefer (Refrigerated Trailer)
A temperature-controlled trailer equipped with a self-powered refrigeration unit that can maintain specific temperature ranges during transit. Reefers are essential for transporting perishable goods like produce, dairy, meat, pharmaceuticals, and chemicals that require cold chain integrity. They can typically maintain temperatures from -20°F to 70°F.
Relay
A method of long-haul freight movement where multiple drivers take turns hauling the same trailer in segments, with each driver covering a portion of the route. Relay points are strategically located where one driver drops the trailer and another picks it up to continue the journey. Relays allow carriers to move freight coast-to-coast without requiring team drivers or exceeding hours-of-service limits.
RGN (Removable Gooseneck)
A specialized lowboy-style trailer where the front gooseneck detaches, creating a ramp for drive-on loading of heavy equipment. RGN trailers can haul extremely heavy and tall loads that exceed standard flatbed or step-deck limits. They are commonly used for construction equipment, industrial machinery, and military vehicles.
Shipper
The party that originates a freight shipment — the person or company sending the goods. In logistics, the shipper is responsible for preparing the freight for transport, creating the bill of lading, and ensuring accurate weight, dimensions, and commodity descriptions. The shipper may be a manufacturer, distributor, retailer, or any business that needs to move goods from one location to another.
Shipper's Letter of Instruction (SLI)
A document provided by an exporter to a freight forwarder or carrier that authorizes and instructs them on how to handle an international shipment. The SLI contains detailed shipping instructions including the consignee, routing, insurance requirements, customs documentation, and any special handling needs. It serves as the freight forwarder's authorization to act on behalf of the shipper for export compliance and documentation purposes.
Shipping Container (Intermodal Container)
A standardized steel box (typically 20 or 40 feet long) designed to move seamlessly between ships, rail cars, and trucks without unloading the cargo inside. Containers are the backbone of international trade and domestic intermodal shipping. They are sealed, weatherproof, and stackable, making them efficient for long-distance multimodal transport.
Skid
A platform similar to a pallet but without a bottom deck, having only a single top deck supported by legs or runners. Skids sit directly on the floor and cannot be easily lifted from all four sides by a forklift. In practice, many people use the terms skid and pallet interchangeably, though technically they are different structures. Skids are sometimes used for very heavy items that will be moved by crane or heavy forklift.
Spot Rate
A one-time freight rate negotiated for a single shipment based on current market conditions, without a long-term contract commitment. Spot rates fluctuate daily based on supply and demand in specific lanes and are typically higher than contract rates during tight capacity periods and lower during soft markets. They are commonly used for overflow freight or loads in lanes without established volume.
Sprinter Van
A large cargo van used for small, time-sensitive shipments that do not require a full trailer or straight truck. Sprinter vans typically carry up to 3,500 lbs and are popular for expedited, hot-shot, and last-mile deliveries. They can navigate residential areas and tight loading docks that larger trucks cannot access.
Step Deck
A flatbed trailer with a lower deck section that drops down after the gooseneck, providing extra vertical clearance for taller freight. The upper deck connects to the tractor while the lower deck sits closer to the ground, allowing loads up to approximately 10 feet tall without requiring oversize permits. Step decks are also called drop-deck trailers.
Straight Truck
A single-unit truck where the cargo area is permanently attached to the cab and chassis, rather than using a detachable trailer. Straight trucks are smaller than tractor-trailers and are commonly used for local and regional deliveries, typically carrying 10,000 to 26,000 lbs. They are ideal for urban deliveries where maneuverability matters.
Supply Chain
The entire network of organizations, activities, resources, and processes involved in creating and delivering a product from raw materials to the end consumer. A supply chain includes suppliers, manufacturers, warehouses, distribution centers, transportation providers, and retailers. Effective supply chain management coordinates these elements to minimize costs, maximize speed, and ensure product availability.
Tanker Trailer
A cylindrical or oval-shaped trailer designed to transport liquid, gas, or dry bulk commodities. Tankers come in various configurations including food-grade, chemical, petroleum, and pneumatic (for dry powder) types. They require specialized loading and unloading equipment, and many tanker loads require hazmat certification.
Tariff
A published schedule of rates, rules, and charges that a carrier uses to calculate shipping costs. In LTL shipping, tariffs list CWT rates by freight class, origin/destination, and minimum charges. Tariffs also define accessorial charges, liability limits, and service rules. While the term can also refer to government-imposed duties on imports, in domestic freight it means the carrier's rate schedule.
Team Drivers
Two drivers assigned to the same truck who alternate driving and resting, allowing the truck to run virtually non-stop. While one driver operates the vehicle, the other sleeps in the sleeper berth. Team driving effectively doubles the daily distance a truck can cover (up to 1,000+ miles per day versus 500 for a solo driver) and is used for time-sensitive, long-distance freight.
Terminal-to-Terminal Shipping
A shipping arrangement where the shipper drops off freight at a carrier's origin terminal and the receiver picks it up from the destination terminal. Terminal-to-terminal service is less expensive than door-to-door because it eliminates the pickup and delivery portions of the trip. It is common in LTL shipping and for shippers located near carrier terminals who can handle their own local transportation.
Third-Party Logistics (3PL)
A company that provides outsourced logistics services to shippers, including transportation management, warehousing, freight brokerage, order fulfillment, and supply chain consulting. 3PLs allow businesses to focus on their core competencies while leveraging the logistics provider's expertise, technology, carrier relationships, and buying power. Services can range from basic freight brokerage to fully managed supply chain solutions.
TMS
The standard abbreviation for Transportation Management System, a software platform that centralizes freight management operations. A TMS helps logistics teams manage carrier relationships, compare rates, track shipments, audit invoices, and analyze transportation spend. Leading TMS platforms include Oracle TMS, Blue Yonder, MercuryGate, and Turvo, along with lighter solutions for smaller shippers.
TONU (Truck Ordered Not Used)
A fee charged when a carrier dispatches a truck to a shipper's location for pickup, but the load is cancelled, not ready, or refused after the truck has already been committed. TONU fees compensate the carrier for lost time, fuel, and the opportunity cost of turning down other loads. Typical TONU charges range from $150 to $500.
Transload
The process of transferring freight from one mode of transportation or container to another at an intermediate point. Transloading typically occurs at a warehouse or cross-dock where goods are moved from an ocean container into domestic trailers, or from rail to truck. It allows shippers to optimize transportation costs by using the most efficient mode for each segment of the journey.
Transportation Management System (TMS)
A software platform used by shippers, brokers, and 3PLs to plan, execute, and optimize the movement of freight. A TMS automates carrier selection, rate comparison, load tendering, shipment tracking, freight bill audit, and performance analytics. Modern TMS platforms integrate with ERPs, WMS systems, and carrier networks via EDI or API to create a seamless digital freight management workflow.
Warehouse
A facility used for receiving, storing, and distributing goods before they are shipped to their next destination. Warehouses provide short-term or long-term storage, inventory management, and may offer value-added services like kitting, labeling, and quality inspection. Public warehouses offer shared space to multiple clients, while private warehouses are operated by a single company for their own inventory.
Waybill
A transportation document that accompanies freight and provides carrier instructions for routing and delivery, without serving as a document of title. Unlike a bill of lading, a waybill cannot be used to transfer ownership of goods. Waybills are commonly used in air freight, LTL shipping (as a freight bill/pro bill), and when the shipper does not need a negotiable title document.
Weight Limits
Federal and state regulations that set maximum allowable weights for commercial vehicles on public roads. The federal gross vehicle weight limit is 80,000 lbs for a standard 5-axle tractor-trailer combination on interstate highways. Individual axle limits also apply: 12,000 lbs for a single axle, 34,000 lbs for a tandem axle. Some states allow higher weights on non-interstate roads or with special permits. Overweight fines can be severe, often thousands of dollars.
White Glove Delivery
A premium freight delivery service that includes extra care, handling, and setup beyond standard dock-to-dock shipping. White glove service may include inside delivery, room of choice placement, unpacking, assembly, debris removal, and installation. It is commonly used for high-value, fragile, or heavy items like medical equipment, electronics, furniture, and trade show displays.
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