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.
Accessorial Schedule
A published list of additional service charges that a carrier applies for services beyond standard pickup and delivery. The accessorial schedule itemizes fees for liftgate service, inside delivery, residential delivery, limited access locations, notification/appointment required, hazmat handling, excess length, sort and segregate, redelivery, storage, and other non-standard services. Shippers should review a carrier's accessorial schedule during rate negotiations to understand their total potential cost exposure and negotiate caps or waivers on frequently incurred accessorials.
All-In Rate
A freight rate that includes all charges in a single price — linehaul, fuel surcharge, and standard accessorial fees — rather than breaking each component out separately. All-in rates simplify billing and make it easier for shippers to compare quotes across carriers and brokers. They are common in the FTL spot market and truckload brokerage, where a single flat rate is quoted for a load. Shippers should clarify exactly which services are included in an all-in rate, as some carriers may still charge separately for non-standard accessorials like detention or lumper fees.
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.
Appointment Scheduling
The practice of assigning specific time windows for trucks to arrive at a facility for loading or unloading. Appointment scheduling prevents congestion at docks, reduces driver wait times, ensures adequate labor is available, and helps facilities manage throughput efficiently. Most large distribution centers and retail receivers require appointments, and missing an appointment can result in rescheduling delays or turn-away fees.
B-Train (B-Double)
A combination vehicle consisting of a tractor pulling two trailers connected by a fifth-wheel coupling mounted on the rear frame of the lead trailer, rather than using a converter dolly. B-trains are more stable than traditional double trailers because the rigid fifth-wheel connection eliminates the rearward amplification (trailer sway) associated with dolly-based doubles. They are widely used in Canada and some US states for high-volume bulk freight, offering payloads up to 60,000 lbs or more.
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.
Base Rate
The fundamental transportation charge for moving freight before any surcharges, discounts, or accessorial fees are applied. In LTL shipping, the base rate is calculated from the carrier's tariff using the freight class, weight, origin, and destination. In FTL shipping, the base rate is the core linehaul charge. Shippers negotiate discounts off the base rate (often 70-85% off tariff for high-volume LTL shippers) and then add fuel surcharges and accessorials to arrive at the total cost.
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.
Bonded Warehouse
A secured warehouse facility licensed by US Customs and Border Protection where imported goods can be stored, manipulated, or manufactured without paying import duties until the goods are released for domestic consumption. Bonded warehouses allow importers to defer duty payments for up to 5 years, re-export goods without ever paying US duties, and process goods (such as relabeling or repackaging) before entering US commerce. This provides significant cash flow benefits for companies importing large quantities of goods.
Break Bulk
The process of breaking down a large consolidated shipment into smaller individual shipments for delivery to multiple final destinations. Break bulk operations typically occur at distribution centers, cross-docks, or pool distribution points where a full truckload from a single shipper is divided into smaller LTL or parcel shipments headed to different receivers. The term also refers to cargo that is too large or heavy to fit in standard containers and must be loaded individually onto a vessel (break bulk cargo).
Capacity Crunch
A period of severely constrained truck availability where shipper demand for freight transportation significantly exceeds the available supply of trucks and drivers. Capacity crunches cause spot rates to spike, tender rejection rates to surge, and service levels to deteriorate as carriers prioritize their most profitable freight. They can be triggered by seasonal demand peaks, natural disasters, regulatory changes (like ELD mandate implementation), economic booms, or the aftermath of a freight recession that drove carriers out of business. Shippers who rely heavily on the spot market are most vulnerable during capacity crunches.
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.
Cargo Insurance
An insurance policy that covers the value of freight being transported in the event of loss, damage, or theft during transit. Motor carriers are required by FMCSA to carry cargo insurance, but standard carrier cargo coverage is often limited to $100,000, which may be insufficient for high-value shipments. Shippers can purchase additional cargo insurance (all-risk or named-peril policies) through their broker, freight forwarder, or insurance provider to cover the full value of their goods. Cargo insurance is separate from the carrier's auto liability insurance.
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.
Carrier Authority
The legal authorization granted by FMCSA that permits a motor carrier to transport goods for hire in interstate commerce. Carrier authority is obtained by filing an OP-1 application, publishing the authority in the FMCSA register, meeting insurance requirements ($750,000 minimum auto liability, plus cargo insurance), and designating a process agent in each state of operation. New carrier authority takes 3-6 weeks to become active after filing. Authority can be revoked for insurance lapses, safety violations, or failure to maintain required filings.
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.
Certificate of Origin
A document that certifies the country where the goods being shipped were manufactured or produced. Certificates of origin are required by customs authorities in many countries to determine the applicable tariff rates, eligibility for trade agreement benefits (such as USMCA or CAFTA-DR), and compliance with trade restrictions. They can be issued by the exporter, a chamber of commerce, or a government agency depending on the destination country's requirements.
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.
Class Rate
A freight rate determined by the NMFC freight classification of the commodity being shipped, combined with the shipment's weight and the origin-destination pair. Class rates are the standard pricing method for LTL carriers, where each freight class (50 through 500) has a corresponding rate per hundredweight published in the carrier's tariff. Higher freight classes result in higher rates because the commodity is lighter, bulkier, more fragile, or harder to handle relative to its weight.
Climate-Controlled Warehouse
A warehouse facility that maintains specific temperature and humidity ranges to protect sensitive products from environmental damage. Unlike cold storage which focuses on low temperatures, climate-controlled warehouses typically maintain temperatures between 55-80°F and humidity below 50%, protecting goods like electronics, pharmaceuticals, wine, artwork, leather goods, and wooden furniture from heat damage, moisture, mold, and condensation. Climate control is less expensive than cold storage but more costly than standard ambient warehousing.
Cold Storage
A warehouse facility or section specifically designed and equipped to store temperature-sensitive products at controlled temperatures, from slightly below room temperature down to deep-freeze conditions (-20°F or lower). Cold storage facilities use industrial refrigeration systems, insulated walls and floors, temperature monitoring systems, and USDA/FDA-compliant sanitation protocols. They are essential for storing perishable foods, pharmaceuticals, biologics, and certain chemicals. Cold storage space commands premium rates — typically 2-3 times the cost of ambient warehouse space.
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.
Commodity Rate
A special negotiated freight rate for a specific commodity that overrides the standard class-based pricing. Commodity rates are typically lower than class rates and are negotiated by shippers who move large volumes of a particular product on consistent lanes. The rate is tied to the specific commodity description rather than the generic freight class, giving the shipper a more favorable price in exchange for volume commitment. Commodity rates are common for products like beverages, paper goods, canned foods, and building materials.
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 Freight
Freight that moves under pre-negotiated rate agreements between shippers and carriers, typically established through annual bid processes (routing guides). Contract freight provides rate stability and capacity assurance for shippers, and predictable revenue for carriers. Most large shippers move 70-85% of their freight under contract and use the spot market for the remainder. Contract rates are typically lower than spot rates during tight markets but may be higher than spot rates during soft markets, creating a natural tension in routing guide compliance.
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.
Curtain-Side Trailer
A trailer with retractable fabric curtains on both sides instead of solid walls, allowing full side access for loading and unloading with forklifts or cranes. Curtain-side trailers combine the weather protection of an enclosed van with the loading flexibility of a flatbed. They are commonly used in Europe and increasingly popular in North America for freight that needs side-loading access, such as building materials, beverages, and oversized pallets.
Customs Bond
A financial guarantee required by US Customs and Border Protection (CBP) ensuring that all duties, taxes, and fees associated with importing goods will be paid. A customs bond is mandatory for any commercial import valued over $2,500. Single-entry bonds cover one shipment, while continuous bonds (typically set at 10% of the previous year's duties or a $50,000 minimum) cover all imports for a 12-month period. If an importer fails to pay duties, CBP collects from the surety company that issued the bond.
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.
Day Cab
A tractor (truck cab) without a sleeper berth compartment, designed for local and regional routes where the driver returns home at the end of each shift. Day cabs are shorter and lighter than sleeper cabs, providing better maneuverability in urban environments and a higher legal payload capacity since the truck weighs less. They are the standard choice for drayage, LTL pickup and delivery, and dedicated fleet operations within a 200-mile radius.
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.
Delivery Confirmation
A notification or record verifying that a freight shipment has been successfully delivered to the consignee at the destination. Delivery confirmation may include the date and time of delivery, the name of the person who signed for the freight, photographic evidence, and any exception notes about damage or shortages. Electronic delivery confirmation through mobile apps and scanning technology has largely replaced paper-based systems, enabling faster invoice processing and dispute resolution.
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.
Digital Freight Matching
Technology that uses algorithms, machine learning, and real-time data to automatically match available freight loads with available trucks based on factors like location, equipment type, lane history, carrier performance, and price. Digital freight matching goes beyond traditional load boards by proactively suggesting matches rather than requiring carriers to search, and by using predictive analytics to identify optimal pairings. This technology reduces empty miles, speeds up booking times, and can improve rate accuracy by incorporating real-time market data into pricing recommendations.
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.
Driver Shortage
The ongoing deficit between the number of qualified commercial truck drivers available and the number needed to meet freight demand in the US. The American Trucking Associations estimates the shortage at approximately 60,000-80,000 drivers, projected to exceed 160,000 by 2030. Contributing factors include an aging driver workforce (average age 55+), demanding lifestyle requirements, CDL training costs, insurance requirements for young drivers (under 25), and competition from other industries. The driver shortage is a structural constraint that keeps freight rates elevated and limits carrier capacity growth even during periods of strong economic growth.
Drop Shipping
A fulfillment model where the retailer or seller does not keep products in stock. Instead, when a customer places an order, the seller forwards the order to a manufacturer, wholesaler, or 3PL who ships the product directly to the end customer under the seller's brand. Drop shipping eliminates the need for the seller to invest in warehouse space, inventory, or fulfillment staff. However, the seller has less control over shipping speed, packaging quality, and inventory availability since they depend entirely on their drop-ship partners.
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.
Drug and Alcohol Testing
Federally mandated testing programs that require commercial motor vehicle drivers to undergo drug and alcohol screenings as a condition of employment. FMCSA regulations require pre-employment drug testing, random testing (at least 50% of drivers annually for drugs, 10% for alcohol), post-accident testing, reasonable suspicion testing, and return-to-duty testing. Drivers who test positive are immediately removed from safety-sensitive duties and must complete a substance abuse program before returning. Results are tracked in the FMCSA Drug and Alcohol Clearinghouse.
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.
ELD Mandate
The federal regulation (49 CFR Part 395) that requires most interstate commercial motor vehicle drivers to use certified Electronic Logging Devices to record their hours of service, replacing paper logbooks. The ELD mandate was phased in between December 2017 and December 2019 and applies to drivers who are required to maintain records of duty status. Exemptions exist for drivers operating under short-haul exemptions (within 150 air miles), those driving vehicles manufactured before 2000, and drivers of certain specialized equipment. The mandate aims to improve road safety by preventing drivers from falsifying their log records.
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.
Fifth Wheel
A horseshoe-shaped coupling device mounted on the rear frame of a tractor that locks onto a trailer's kingpin, creating the articulated connection between the truck and trailer. The fifth wheel allows the trailer to pivot during turns while securely bearing the trailer's weight. Fifth wheels are greased regularly to reduce friction and prevent wear. There are two main types: fixed-mount fifth wheels bolted in one position, and sliding fifth wheels that can be repositioned forward or backward to adjust weight distribution across axles.
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.
Foreign Trade Zone (FTZ)
A designated area within the United States that is legally considered outside US customs territory for the purpose of duty payment. Goods brought into an FTZ can be stored, assembled, manufactured, tested, sampled, relabeled, repackaged, or destroyed without triggering duty obligations. Duties are paid only when goods leave the FTZ and enter US commerce, and if goods are exported, no US duties are owed at all. FTZs offer more flexibility than bonded warehouses because manufacturing and assembly operations are permitted.
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 Bond (BMC-84 Surety Bond)
A surety bond required by FMCSA for freight brokers and freight forwarders, guaranteeing financial responsibility for payments owed to carriers and shippers. Since 2013, freight brokers must maintain a $75,000 surety bond (BMC-84) or trust fund (BMC-85). If a broker fails to pay a carrier for services rendered, the carrier can file a claim against the broker's bond to recover the unpaid amount. The bond protects carriers from broker insolvency or fraud and is a condition of maintaining active broker authority.
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 Collect
A payment term on the bill of lading indicating that the consignee (receiver) is responsible for paying the freight charges upon delivery. Under freight-collect terms, the carrier invoices the receiver rather than the shipper. This arrangement is common when the buyer has negotiated to pay for transportation as part of the purchase agreement, or when the receiver has better carrier rates and prefers to route shipments on their own account. The payment term must be clearly marked on the BOL to avoid billing disputes.
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.
Freight Marketplace
A digital platform that connects shippers directly with carriers for booking freight shipments, often providing instant quotes, automated booking, real-time tracking, and digital documentation. Freight marketplaces streamline the traditional broker model by using technology to match loads with trucks, reducing manual communication and accelerating the booking process. Some marketplaces operate as digital brokers (holding broker authority and managing payment), while others function as pure technology platforms connecting parties directly. Major players include Uber Freight, Convoy (acquired by Flexport), and Loadsmart.
Freight Prepaid
A payment term on the bill of lading indicating that the shipper (sender) is responsible for paying the freight charges at the time of shipment, before the goods are delivered. Freight-prepaid is the most common payment arrangement in domestic shipping and means the carrier invoices the shipper directly. This term is standard when the seller is responsible for transportation costs as part of the sale agreement (e.g., FOB Destination or delivered pricing). The shipper may build freight costs into their product pricing.
Freight Recession
A prolonged downturn in the freight transportation market characterized by falling rates, excess carrier capacity, declining freight volumes, and reduced carrier profitability. Freight recessions can occur independently of broader economic recessions, driven by factors like inventory destocking, overbuilding of carrier capacity during boom periods, and shifts in consumer spending patterns. During a freight recession, spot rates fall below operating costs for many carriers, leading to business closures, fleet downsizing, and reduced investment in new equipment. Freight recessions typically last 12-24 months before the market rebalances.
Freight Visibility Platform
A technology solution that aggregates real-time tracking data from multiple carriers, modes, and data sources into a single dashboard, providing shippers with unified visibility across their entire transportation network. Freight visibility platforms use GPS, ELD integrations, carrier API connections, and machine learning to provide accurate ETAs, exception alerts, and performance analytics regardless of which carrier or mode is used. They solve the problem of shippers having to check multiple carrier websites or call dispatchers for shipment updates.
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.
Fuel Surcharge Formula
The calculation method used by carriers to determine the fuel surcharge percentage applied to freight rates, based on the current price of diesel fuel. Most formulas use the US Department of Energy's weekly national average diesel price as a baseline, with the surcharge increasing or decreasing by a set percentage for each cent change in fuel price. For example, a common formula starts at $0 surcharge when diesel is at a base price (e.g., $1.20/gallon) and adds 1% for every $0.06 increase in the DOE price. Shippers should understand their carrier's FSC formula to predict cost impacts when fuel prices fluctuate.
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.
Import License
A government-issued document that grants permission to bring specific types of goods into a country. While most goods can be imported into the US without a specific license, certain categories — including firearms, alcohol, tobacco, agricultural products, pharmaceuticals, and goods from sanctioned countries — require licenses or permits from the appropriate federal agency (ATF, FDA, USDA, OFAC, etc.). Importing without required licenses can result in seizure of goods, fines, and criminal penalties.
Intermodal Shipping
A freight transportation method that uses two or more modes of transport (typically truck and rail, or truck, rail, and ocean) to move cargo in standardized containers without handling the freight itself when changing modes. The container is loaded once, then transferred between trucks, trains, and ships. Intermodal is typically 10-20% cheaper than over-the-road trucking for distances over 750 miles, though transit times are 1-2 days longer.
Inventory Turns (Inventory Turnover)
A metric that measures how many times a company's inventory is sold and replaced over a specific period, typically a year. Inventory turns are calculated by dividing the cost of goods sold by the average inventory value. Higher turns indicate efficient inventory management — goods are moving quickly through the supply chain rather than sitting idle in a warehouse. In the retail industry, turns of 8-12 are common, while fast-moving consumer goods may see turns of 12-24. Low inventory turns tie up capital and increase warehousing costs.
Just-In-Time (JIT)
An inventory and supply chain strategy where materials and components are delivered to a manufacturing or assembly facility exactly when they are needed in the production process, minimizing inventory holding costs and warehouse space requirements. JIT relies on precise scheduling, reliable transportation, and close coordination between suppliers and manufacturers. While JIT reduces costs, it makes the supply chain more vulnerable to disruptions.
Just-In-Time Delivery (JIT Delivery)
A transportation execution strategy where shipments are timed to arrive at the receiver's facility exactly when the goods are needed for production or fulfillment, rather than being held in inventory. JIT delivery requires precise scheduling, reliable carriers, real-time tracking, and contingency planning for delays. While closely related to just-in-time inventory management, JIT delivery specifically refers to the transportation timing component. Late deliveries in a JIT environment can shut down production lines, making carrier reliability and shipment visibility essential.
Kingpin
A heavy steel pin mounted on the underside of a semi-trailer's front that locks into the tractor's fifth wheel to create a secure pivot connection between the tractor and trailer. The kingpin is the single point of attachment that transfers the trailer's tongue weight to the tractor and allows the combination to articulate through turns. Kingpin condition is a critical safety item — a worn, cracked, or improperly positioned kingpin can cause a trailer separation, and it is inspected during every DOT Level I inspection.
Kitting
A warehouse operation where individual items are grouped together into a single package or kit before shipping. Kitting is used when a customer order requires multiple separate components to be assembled into one sellable unit, subscription box, or promotional bundle. By pre-assembling kits, warehouses reduce pick times for individual orders and ensure customers receive all necessary components together.
Landing Gear
The retractable support legs mounted on the front underside of a semi-trailer that hold the trailer upright when it is disconnected from the tractor. Landing gear consists of two telescoping legs with crank handles (or air-powered mechanisms on newer trailers) that the driver lowers before unhooking. Properly functioning landing gear is essential for safe drop-and-hook operations and is a common item checked during DOT inspections. Damaged or stuck landing gear can delay pickups and create safety hazards.
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.
Liftgate
A hydraulic platform attached to the rear of a truck or trailer that raises and lowers freight between ground level and the truck bed, enabling loading and unloading at locations without a raised dock. Liftgates are essential for residential deliveries, retail stores, construction sites, and any location where the receiver does not have a standard dock-height loading bay. Liftgate service is an accessorial charge that typically adds $75-$200 per delivery, and shippers must request it in advance because not all trucks are equipped with them.
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.
Load Planning
The process of determining how to optimally fill a truck or trailer considering weight distribution, cargo compatibility, delivery sequence, and equipment capacity. Effective load planning maximizes trailer utilization (cube and weight), ensures legal axle weight distribution, prevents freight damage by separating incompatible commodities, and sequences stops for efficient multi-stop deliveries. Poor load planning leads to wasted capacity, damage claims, and safety violations.
Load-to-Truck Ratio
A market indicator that measures the number of available loads posted on load boards relative to the number of available trucks searching for freight. A ratio of 5:1 means there are 5 loads posted for every truck available, indicating strong demand and upward rate pressure. A ratio of 2:1 suggests a more balanced market. Load-to-truck ratios are published weekly by load board providers like DAT and Truckstop.com and are broken down by equipment type (dry van, flatbed, reefer) and geography. They are one of the most closely watched indicators of trucking market conditions.
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.
Merge-In-Transit
A logistics strategy where shipments from multiple origins are coordinated to arrive at a consolidation point simultaneously, then merged into a single delivery to the end customer. This eliminates the need for a central warehouse to hold all components before shipping. Merge-in-transit is commonly used when products from different suppliers or manufacturing locations need to arrive together as a complete order.
Milk Run
A fixed-route delivery or pickup schedule where a single truck visits multiple locations in a predetermined sequence on a regular basis, similar to how milk trucks historically made daily rounds to farms. Milk runs maximize vehicle utilization by combining multiple small pickups or deliveries into one efficient loop. This approach is common in manufacturing supply chains where a truck picks up components from several suppliers on a daily route to feed a production line.
Minimum Charge
The lowest amount a carrier will charge for a shipment, regardless of how small or light it is. Every LTL carrier publishes a minimum charge in their tariff, typically ranging from $50 to $200 depending on the carrier and lane. If the calculated CWT rate multiplied by the shipment weight results in a charge below the minimum, the minimum charge applies instead. FTL carriers also have effective minimums based on the cost of dispatching a truck regardless of how few miles are involved.
Multi-Axle Trailer
A trailer equipped with additional axle sets beyond the standard tandem configuration, used to distribute the weight of extremely heavy loads across more tires and a greater length of road surface. Multi-axle trailers can have 3, 4, 5, or more axle groups and are essential for loads exceeding standard weight limits. Additional axles allow higher gross weights under state permit regulations because the weight per axle stays within legal limits. Common configurations include tridem (3-axle) and quad (4-axle) setups.
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.
Operating Ratio
A financial metric that measures a carrier's operating expenses as a percentage of its operating revenue. An operating ratio of 95% means the carrier spends $0.95 for every $1.00 of revenue earned, leaving $0.05 as operating profit. In the trucking industry, operating ratios typically range from 88% to 98%, with lower ratios indicating better profitability. Shippers and brokers use a carrier's operating ratio as an indicator of financial health — carriers with operating ratios consistently above 100% are losing money and may be at risk of going out of business.
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.
Pick and Pack
A warehouse fulfillment process where individual items are picked from storage locations and packed into shipping containers for outbound delivery. The pick-and-pack process includes receiving an order, locating items in the warehouse (picking), verifying the correct items and quantities, packing them securely with appropriate dunnage, labeling the package, and staging it for carrier pickup. Efficiency in pick-and-pack operations directly impacts order accuracy and shipping speed.
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.
Pup Trailer
A short trailer, typically 26 to 28 feet long, designed to be pulled in tandem with another pup trailer behind a single tractor, forming a doubles combination. Pup trailers are commonly used by LTL carriers because they allow flexible freight consolidation — each pup can be independently loaded at different terminals and combined onto one tractor for the linehaul segment. The standard doubles combination (tractor + two 28-foot pups) is legal on most US interstate highways.
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.
Rate Per Hundredweight
The standard pricing unit for LTL freight where the transportation charge is expressed as a dollar amount per 100 pounds (CWT) of cargo. Rate-per-hundredweight pricing accounts for the freight class, weight bracket, origin, destination, and any negotiated discounts. As shipment weight increases, the per-hundredweight rate typically decreases due to weight breaks in the carrier's tariff. This pricing model allows LTL carriers to charge proportionally based on how much trailer space and weight capacity a shipment consumes.
Rate Per Mile (RPM)
A common pricing metric in truckload freight where the transportation charge is expressed as a dollar amount per mile driven. Rate per mile is the standard way carriers, brokers, and shippers discuss and compare FTL pricing. National average rates fluctuate with market conditions, typically ranging from $2.00 to $4.00+ per mile for dry van loads depending on the lane, season, and capacity balance. Rate per mile includes the linehaul component and may or may not include fuel surcharge depending on how it is quoted.
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.
Reefer Unit (Refrigeration Unit)
The self-contained diesel-powered refrigeration system mounted on the front wall of a refrigerated trailer that maintains the cargo compartment at a specified temperature. Reefer units can heat or cool the trailer interior, typically maintaining temperatures from -20°F to 70°F. They run independently of the tractor's engine and carry their own fuel supply (usually 50-100 gallons of diesel). Major manufacturers include Carrier Transicold and Thermo King. Reefer units require regular maintenance and are subject to EPA emissions standards.
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.
Reverse Logistics
The process of moving goods from their final destination back through the supply chain for return, repair, recycling, remanufacturing, or disposal. Reverse logistics encompasses product returns, warranty repairs, recalls, recycling programs, and end-of-life product disposition. It is a growing segment of freight transportation driven by e-commerce return rates that can exceed 20-30% in categories like apparel and electronics.
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.
Route Optimization
The use of algorithms and software to determine the most efficient routes for freight deliveries, considering distance, traffic patterns, delivery windows, driver hours, fuel costs, toll roads, and vehicle restrictions. Route optimization reduces transportation costs by minimizing total miles driven, improving on-time delivery performance, and maximizing the number of stops a driver can complete within their hours-of-service window. Modern route optimization tools update dynamically based on real-time traffic and weather data.
Safety Rating
An official assessment of a motor carrier's safety fitness issued by FMCSA after a compliance review or investigation. Safety ratings are classified as Satisfactory (carrier has adequate safety management controls), Conditional Satisfactory (carrier has deficiencies that need correction), or Unsatisfactory (carrier does not have adequate safety management controls and may face an operations shutdown). Not all carriers have been rated, as FMCSA only reviews a fraction of registered carriers. An Unsatisfactory rating can lead to an out-of-service order prohibiting the carrier from operating.
Safety Stock
Extra inventory held in a warehouse as a buffer against unexpected demand spikes, supply delays, or transit disruptions. Safety stock ensures a company can continue fulfilling orders even when their supply chain experiences disruptions like late shipments, supplier quality issues, or sudden demand increases. The optimal safety stock level balances the cost of holding excess inventory against the cost of stockouts (lost sales, production shutdowns, or expedited freight charges). Companies calculate safety stock based on demand variability, lead time variability, and their target service level.
Shipment Visibility
The ability to track a freight shipment's location, status, and condition throughout its journey from origin to destination. Shipment visibility provides shippers and receivers with proactive updates on pickup confirmation, in-transit milestones, estimated arrival times, and delivery confirmation. Advanced visibility platforms aggregate data from GPS, ELD, carrier systems, and IoT sensors to provide a unified view of all shipments regardless of carrier or mode.
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.
Sleeper Cab
A tractor equipped with an enclosed sleeping compartment behind the driver's seat, allowing the driver to rest in the truck during multi-day over-the-road trips. Sleeper cabs range from basic 36-inch bunks to luxurious 80-inch studio-style compartments with beds, storage, climate control, refrigerators, and entertainment systems. They are essential for long-haul operations where drivers are away from home for days or weeks at a time and need a place to take their required 10-hour off-duty rest periods.
Spot Market Freight
Freight that is booked on an as-needed, one-time basis at current market rates rather than under a long-term contract. Spot market freight is typically posted on load boards and priced based on real-time supply and demand conditions in specific lanes. Shippers use the spot market for overflow freight that exceeds their contract capacity, irregular shipments, or when entering new lanes without established volumes. Spot rates can vary dramatically — sometimes doubling or halving within weeks depending on seasonal patterns, weather events, or economic shifts.
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.
Stretch Trailer
An extendable flatbed trailer that can be lengthened beyond the standard 48 or 53 feet to accommodate unusually long freight such as utility poles, bridge beams, wind turbine blades, and structural steel. Stretch trailers use a telescoping mechanism that allows the deck to extend from around 48 feet to 80 feet or more. Loads on stretch trailers often require oversize permits and escort vehicles due to their extended length.
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.
Tender Rejection
When a carrier declines to accept a freight load that has been offered (tendered) to them, usually through an automated routing guide. Tender rejection rates are a key indicator of truckload market conditions. Low rejection rates (2-5%) indicate a loose market with ample carrier capacity, while high rejection rates (15-25%+) indicate a tight market where carriers can be selective about which loads they accept. Carriers reject tenders when their trucks are fully committed, when the load is unprofitable relative to spot market alternatives, or when the pickup or delivery locations are undesirable.
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 Billing
A payment arrangement where a party other than the shipper or consignee is responsible for paying the freight charges. The third party is typically a freight broker, 3PL, corporate headquarters, or a buying group that has negotiated carrier rates on behalf of their clients. Third-party billing requires the carrier's agreement and is noted on the bill of lading with the third party's account information. This arrangement allows companies to centralize freight spend, leverage volume discounts, and maintain rate confidentiality between trading partners.
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.
Transload Facility
A warehouse or dock operation where freight is transferred from one transportation mode or container type to another for continued shipment. Transload facilities are commonly located near ports, rail yards, and border crossings where ocean containers are unloaded and their contents restacked into domestic 53-foot trailers for more efficient inland distribution. Transloading allows shippers to avoid the cost of returning ocean containers to the port and take advantage of the greater capacity of domestic trailers.
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.
Truckload Market
The overall marketplace for full-truckload freight transportation, encompassing both contract and spot segments. The truckload market is a major component of the US freight economy, generating over $400 billion annually. Market conditions are driven by the balance between freight demand (how many loads need to move) and carrier supply (how many trucks are available). When demand exceeds supply, rates rise and carriers gain pricing power. When supply exceeds demand, rates fall and shippers can negotiate more favorable terms. Key market indicators include spot rates, rejection rates, and the load-to-truck ratio.
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.
Warehouse Management System (WMS)
Software that controls and optimizes day-to-day warehouse operations including receiving, putaway, inventory tracking, order picking, packing, and shipping. A WMS uses barcode scanning, real-time location systems, and algorithmic optimization to direct workers through efficient workflows, maintain accurate inventory counts, and coordinate dock scheduling. It integrates with ERP systems, transportation management systems, and carrier platforms to create an end-to-end logistics technology stack.
Wave Planning
A warehouse management strategy that groups orders into batches (waves) for simultaneous processing, optimizing pick paths, labor allocation, and dock scheduling. Rather than processing orders one at a time as they arrive, wave planning releases groups of orders to the warehouse floor at scheduled intervals, ensuring workers and equipment are used efficiently. Waves are typically organized by carrier cutoff times, shipping priority, or warehouse zone.
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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