Freight Terminology

Accessorial Charge: Charges for supplementary services. Example: detention, driver loading, driver unloading, driver tarping, Etc...

Advance: An advance is getting paid on the face value of the invoice (the rate con) being purchased minus the Discount Rate. Some Factors will advance up to 50% of the Rate Cons value at the pick and then pay the Carrier the remaining value at the delivery when the job is done.

Authority: Operating rights granted to a motor carrier by the Interstate Commerce Commission.

Backhaul: A backhaul is hauling cargo back from point B to the originating point A. 

Bill Of Lading (BOL): A transportation document by which a Carrier acknowledges receipt of freight and sets forth a contract of Carriage. Moreover, the Bill of Lading is a required document to move a freight shipment. The Bill of Lading (BOL) works as a receipt of freight services, a contract between a Freight Carrier and the Shipper/Broker serving as a document of title. The Bill of Lading is a legally binding document providing the Driver and the Carrier all the details needed to process the freight shipment and invoice it correctly. The BOL will be given to the Carrier at the pickup location (aka the shipper). Or, the Broker will email the Carrier the BOL prior to arriving to the pickup location.

Bonded Warehouse: A bonded warehouse is a building or other secured area in which dutiable goods may be stored, manipulated, or undergo manufacturing operations without payment of duty.

Carrier: A company in the business of transporting goods or passengers in most cases for a fee.

Consignee, or Receiver: The receiver is who receives freight shipped from an owner. Or, a Consignee is the party shown on the Bill Of Lading (BOL) to whom the shipment is delivered to i.e., a person or a company.

Claim: Demand on transportation company for payment due to loss/damage or freight during transit.

Dead Head: The distance the Truck will be driving without cargo loaded before getting to a shipper to get loaded with freight.

Detention: Is a fee that a Trucking Company charges when a Shipper or Receiver holds a Truck or Trailer beyond the free time (2 hours) that it should take a Truck to get loaded or unloaded.

Direct Delivery: The same-day delivery... Pickup and go straight to the receiver the same day (no stops).

Driver: - Solo Driver: 1 Driver who can travel for 14 hours, then must take a 10-hour break. - Team Drivers: 2 Drivers who don’t need to stop for brakes.

Driver Assist: The Driver will have to help unload or load the truck.

Driver Must Tailgate: The Driver will only have to pull the pallets, with a pallet jack, to the end of the trailer to help with the offloading.

Expediting: Moving shipments through regular channels at an accelerated rate.

Freight Brokerage: - Asset-Based Brokerage: An agent who arranges the interstate movement of cargo with their own Trucks. - Non-Asset Based Broker: An agent who arranges the interstate movement of cargo with other Carriers.

Freight Forwarder: An Agent who helps expedite shipments by preparing necessary documents and arranging to move freight.

First Come First Served (FCFS): When you see FCFS this means when a load is scheduled for pickup or delivery there is no appointment time. It means there is a window from maybe 8am -to- 5pm that’s wide open to pick up or delivery. But, it’s first come first served so get there within that window and whoever gets their first is first in line just like if you walked up to the counter at the grocery store. The first one there is giving first priority and everyone else is just waiting their turn in line to pick up or offload.

Intrastate: Intrastate means staying within one state and not crossing the border into another state.

Interstate: Interstate essentially means traveling through multiple states.

Lumper: A for-hire service, aka a person, who is used to load and unload trucks.

Load Tender: An offer of goods for transportation by shipper.

Owner Operator: A driver who owns or operates their own truck.

Payloads: Profitable cargo.

Proof of Delivery (POD): Copy of waybill signed by consignee/receiver at the time of delivery as a receipt. Good to know... "VPOD" ~ Name of Person Verbal Proof of Delivery.

Per Diem: Latin term “by the day” Daily Charge for use of railcars or port storage.

Rate: The established shipping charge for the movement of goods.

Rate Confirmation: A Rate Con is a contract for work that has been negotiated between a freight broker and a Carrier for a fixed price for services moving a shipment from one location to another.

Truckloads: - Full-Truckload (FTL): A shipment requiring 53ft trailer for transport.- Less-Than-Truckload (LTL): Less than the quantity of freight required to apply a typical full truckload rate. LTL applies to 26ft Box Trucks or smaller.

TWIC Card: A TWIC card can be issued to transportation workers (truck drivers) and used for security clearance which provides unescorted access to secure areas of port facilities for cargo pickups and deliveries. (Escorts can be used as a substation for a TWIC card.)

TONU: A TONU is an aberration for Truck Order Not Used meaning if a Broker books a Truck on a load and that load gets canceled and the Truck is already at the shipper then the Customer needs to pay some form of compensation to the Truck for the load that was canceled. This compensation is called a Truck Order Not Used and that amount will be different from the original rate con total. TONU’s typically vary in price from $150 to $250 depending on the customer (Coca-Cola, Whole Foods, Etc..).

Waybill: A Waybill is a document issued by a carrier giving details and instructions relating to the shipment of a consignment of goods. Typically, it will show the names of the consignor and consignee, the point of origin of the consignment, its destination, and route.

Freight Load Description Guide:Shotgun Load: When the coil is vertical on pallets. Meaning if you were standing at the back of the trailer you could look through the center of all the coils all the way down the Truck to the Truck Cab almost like looking down the barrel of a shotgun.

Suicide Load: When the coil is horizontally chained down. So, per my description above, you would not be able to see through the coils if it’s loaded in the opposite direction. It should be on its side and it could roll straight off the back of the trailer if the truck drove forward. Or, if the truck hit the brakes and the coil wasn’t secured properly the coil would roll forward and crush the cab of the truck aka “loaded Suicide.”

Pillarization: System for shipping goods on lightweight, double-decked wooden platforms called pallets.

Equipment Guide:

Step Deck 48th or 53ft (Post on DAT as 48th always): A step deck truck is a type of truck that uses a two-tiered drop on the trailer to haul cargo. Meaning there is an upper deck, and a lower deck hence the term step like a step on stairs.

Flat Bead 48th or 53ft (Post on DAT as 48th always): A flatbed trailer is a piece of equipment with a flattened hauling surface that can be loaded from the top, from both sides, and the rear.

Conestoga 48th or 53ft (Post on DAT as 48th always): A Conestoga trailer is a piece of equipment that is more specialized than a generic flatbed. A Conestoga trailer has a retractable tarping system that covers the entire length of the flatbed or trailer deck.

Dry Van 53ft: A Dry Van Trailer is a piece of equipment that has a box design and is fully enclosed and cut off from the outside elements. There are two (2) different types of Dry Van Trailers: A.) Food Grade Trailers - Trailers that are up to code to be able to carrier produce with no possibility of cross-contamination B.) Non-Food Grade Trailers - Trailers that are not up to code and more so only carry freight that doesn't need to be monitored to that extent like pine straw or car tires, etc... 

Reefer 53ft: Slang term for a refrigerated trailer. This type of trailer is used to haul freight that needs to be stored at low temperatures. 

Box Truck: A Box truck comes in several different sizes 16ft, 18ft, 20ft, 24ft, and 26ft. A Box Truck Driver does not need to have a CDL. This type of equipment would be used to only haul LTL loads. A Box Truck is designed as the name implies as it has a box or cube-like shape and it is just a smaller version of the 53ft dry van trailer. Yet, there is no connection point like there would be between a Power Unit and the 53ft trailer... It's all connected and the loading area cannot be disconnected.

Check Out My Training Videos On YouTube ;)