ARK TMS
48+ Freight Industry Terms

Freight Industry Glossary

Your complete guide to freight broker, trucking, and logistics terminology. From BOL to TONU, we define the terms you need to know.

All Terms A-Z

Accessorial Charges
Additional fees charged for services beyond standard pickup and delivery, such as liftgate service, inside delivery, detention, or residential delivery.
Backhaul
The return trip of a truck after delivering a load. Finding backhaul loads improves efficiency and reduces deadhead miles.
Bill of Lading (BOL)
A legal document between shipper and carrier detailing the type, quantity, and destination of goods being transported. Serves as a receipt and contract.
Blind Shipment
A shipment where the shipper and/or receiver identities are hidden from each other, typically used by brokers to protect customer and carrier information.
Bobtail
A tractor operating without a trailer attached. Common when picking up a loaded trailer or returning from delivering one.
Broker Authority
Federal license (MC Number) issued by FMCSA allowing a company to arrange transportation of goods for compensation.
Cargo Insurance
Insurance covering the value of freight being transported. Carriers typically carry $100K minimum, brokers require $100K contingent cargo coverage.
Carrier Agreement
Contract between broker and carrier establishing payment terms, liability, insurance requirements, and operational procedures.
CDL (Commercial Driver's License)
Special license required to operate commercial vehicles over 26,000 lbs GVWR or transporting hazardous materials.
Cross-Docking
Practice of unloading freight from incoming truck and loading directly onto outbound truck with minimal warehouse storage.
DAT
Major load board platform (formerly Dial-A-Truck) with 1.6M+ loads and trucks posted daily. Provides rate benchmarking and carrier verification.
Deadhead
Operating a truck empty without freight. Deadhead miles reduce profitability and should be minimized with backhaul loads.
Demurrage
Fee charged for exceeding free time at port or rail terminal with containers or chassis. Similar to detention but at terminals.
Detention
Charge assessed when loading or unloading exceeds free time (typically 2 hours). Usually $50-75/hour after grace period.
Double Brokering
Illegal practice where carrier re-brokers load without authorization. Major fraud risk in freight industry.
Drayage
Short-distance transportation, typically moving containers from ports to warehouses or rail yards.
Drop and Hook
Driver drops loaded trailer and picks up pre-loaded trailer, eliminating wait time. More efficient than live loading.
Dry Van
Standard enclosed trailer (53ft x 8.5ft x 9ft) for non-temperature controlled freight. Most common trailer type.
ELD (Electronic Logging Device)
Device that automatically records driver hours of service (HOS). Mandatory for most commercial trucks since December 2017.
Flatbed
Open trailer without sides or roof, used for oversized freight, machinery, construction materials requiring crane loading.
FMCSA
Federal Motor Carrier Safety Administration - regulates commercial motor vehicles and issues MC/DOT numbers.
FTL (Full Truckload)
Shipment that fills an entire truck trailer (typically 20+ pallets or 10,000+ lbs). Faster and less handling than LTL.
Fuel Surcharge
Additional charge to compensate for fuel price fluctuations, typically calculated based on DOE national diesel average.
Hazmat
Hazardous materials requiring special handling, placards, and driver endorsements. Examples: chemicals, explosives, flammable liquids.
HOS (Hours of Service)
FMCSA regulations limiting driving hours: 11-hour driving limit, 14-hour on-duty limit, 10-hour rest break required.
Intermodal
Freight using multiple modes of transportation (truck, rail, ship) in same container without handling goods.
Invoice Factoring
Selling invoices to factoring company for immediate cash (1-2 days) at 3-5% discount. Improves cash flow for carriers and brokers.
Layover
Charge when driver must wait overnight for pickup or delivery. Typically $150-300/night to compensate driver.
Less Than Truckload (LTL)
Shipment too small for full truck (typically under 10 pallets). Multiple shipments combined on one truck, more handling and transit time.
Lift Gate
Hydraulic platform on truck for loading/unloading without dock. Required for residential and locations without loading dock.
Live Load/Unload
Driver waits while freight is loaded or unloaded. Less efficient than drop and hook, often incurs detention charges.
Load Board
Digital marketplace matching freight with available trucks. Major platforms: DAT, Truckstop.com, 123Loadboard.
Lumper Fee
Fee paid to third-party workers to load/unload freight, typically at grocery warehouses. Usually $100-400.
MC Number
Motor Carrier operating authority number issued by FMCSA. Required for freight brokers and interstate carriers.
NMFC
National Motor Freight Classification - standard for classifying freight for LTL pricing based on density, handling, liability.
OTR (Over The Road)
Long-haul trucking covering multiple states, typically with driver away from home for days or weeks.
Owner Operator
Independent truck driver who owns their own truck and operates as contractor rather than company employee.
Power Only
Carrier provides only tractor/driver, customer provides trailer. Common in drop yards and customer-owned trailer situations.
Proof of Delivery (POD)
Signed document proving freight was delivered. Required for billing customer and paying carrier.
Quick Pay
Paying carrier in 1-2 days instead of standard 30 days for 1-5% fee. Improves carrier relationships but expensive (15-40% APR).
Rate Confirmation
Contract between broker and carrier confirming rate, pickup/delivery details, and terms. Required before loading.
Reefer
Refrigerated trailer for temperature-controlled freight. Typically costs 15-25% more than dry van.
Spot Quote
One-time shipment rate quoted for immediate need, as opposed to contract rates. Prices fluctuate with market demand.
TONU (Truck Ordered Not Used)
Charge when shipment cancels after truck dispatched. Compensates carrier for lost opportunity, typically $100-300.
Transloading
Transferring freight from one mode of transportation to another, such as from container to truck.
Truckload (TL)
Full trailer shipment, synonym for FTL. Typically 24-26 pallets or 40,000-45,000 lbs.
USDOT Number
Unique identifier issued by FMCSA for commercial vehicles operating interstate. Required for safety monitoring and inspections.
Weight Ticket
Document from certified scale showing actual freight weight. Required for overweight loads and dispute resolution.

Operations Terms

Backhaul

The return trip of a truck after delivering a load. Finding backhaul loads improves efficiency and reduces deadhead miles.

Blind Shipment

A shipment where the shipper and/or receiver identities are hidden from each other, typically used by brokers to protect customer and carrier information.

Cross-Docking

Practice of unloading freight from incoming truck and loading directly onto outbound truck with minimal warehouse storage.

DAT

Major load board platform (formerly Dial-A-Truck) with 1.6M+ loads and trucks posted daily. Provides rate benchmarking and carrier verification.

Deadhead

Operating a truck empty without freight. Deadhead miles reduce profitability and should be minimized with backhaul loads.

Drayage

Short-distance transportation, typically moving containers from ports to warehouses or rail yards.

Drop and Hook

Driver drops loaded trailer and picks up pre-loaded trailer, eliminating wait time. More efficient than live loading.

FTL (Full Truckload)

Shipment that fills an entire truck trailer (typically 20+ pallets or 10,000+ lbs). Faster and less handling than LTL.

Intermodal

Freight using multiple modes of transportation (truck, rail, ship) in same container without handling goods.

Less Than Truckload (LTL)

Shipment too small for full truck (typically under 10 pallets). Multiple shipments combined on one truck, more handling and transit time.

Live Load/Unload

Driver waits while freight is loaded or unloaded. Less efficient than drop and hook, often incurs detention charges.

Load Board

Digital marketplace matching freight with available trucks. Major platforms: DAT, Truckstop.com, 123Loadboard.

NMFC

National Motor Freight Classification - standard for classifying freight for LTL pricing based on density, handling, liability.

OTR (Over The Road)

Long-haul trucking covering multiple states, typically with driver away from home for days or weeks.

Owner Operator

Independent truck driver who owns their own truck and operates as contractor rather than company employee.

Power Only

Carrier provides only tractor/driver, customer provides trailer. Common in drop yards and customer-owned trailer situations.

Transloading

Transferring freight from one mode of transportation to another, such as from container to truck.

Truckload (TL)

Full trailer shipment, synonym for FTL. Typically 24-26 pallets or 40,000-45,000 lbs.

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