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A working glossary of the terms every new carrier needs to know — the vocabulary of the freight world, all in one place.
Accessorial ChargeCharges for supplementary services. Example: detention, driver loading, driver unloading, driver tarping, etc.
AdvanceAn 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 con's value at the pick and then pay the carrier the remaining value at the delivery when the job is done.
AuthorityOperating rights granted to a motor carrier by the Interstate Commerce Commission.
BackhaulA 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. The BOL is a required document to move a freight shipment, a legally binding document providing the driver and carrier all the details needed to process the shipment and invoice it correctly. It's given to the carrier at pickup, or emailed by the broker prior to arrival.
Bonded WarehouseA building or other secured area in which dutiable goods may be stored, manipulated, or undergo manufacturing operations without payment of duty.
CarrierA company in the business of transporting goods or passengers, in most cases for a fee.
Consignee, or ReceiverThe party shown on the Bill of Lading to whom the shipment is delivered — a person or a company.
ClaimDemand on transportation company for payment due to loss/damage of freight during transit.
Dead HeadThe distance the truck will be driving without cargo loaded before getting to a shipper to get loaded with freight.
DetentionA 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 to get loaded or unloaded.
Direct DeliverySame-day delivery — pickup and go straight to the receiver the same day, no stops.
DriverSolo 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 breaks.
Driver AssistThe driver will have to help unload or load the truck.
Driver Must TailgateThe driver will only have to pull the pallets, with a pallet jack, to the end of the trailer to help with the offloading.
ExpeditingMoving shipments through regular channels at an accelerated rate.
Freight BrokerageAsset-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 ForwarderAn agent who helps expedite shipments by preparing necessary documents and arranging to move freight.
First Come First Served (FCFS)When a load is scheduled for pickup or delivery with no appointment time — just a window (say 8am-5pm) that's wide open. Whoever gets there first is first in line, just like walking up to a counter.
IntrastateStaying within one state and not crossing the border into another state.
InterstateTraveling through multiple states.
LumperA for-hire service, aka a person, who is used to load and unload trucks.
Load TenderAn offer of goods for transportation by shipper.
Owner OperatorA driver who owns or operates their own truck.
PayloadsProfitable cargo.
Proof of Delivery (POD)Copy of waybill signed by consignee/receiver at the time of delivery as a receipt. Good to know: "VPOD" is short for the name of the person giving Verbal Proof of Delivery.
Per DiemLatin term for "by the day" — a daily charge for use of railcars or port storage.
RateThe established shipping charge for the movement of goods.
Rate ConfirmationA 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.
TruckloadsFull-Truckload (FTL): a shipment requiring a 53ft trailer for transport. Less-Than-Truckload (LTL): less than the quantity of freight required to apply a typical full truckload rate — applies to 26ft box trucks or smaller.
TWIC CardCan be issued to transportation workers (truck drivers) and used for security clearance, providing unescorted access to secure areas of port facilities for cargo pickups and deliveries. (Escorts can be used as a substitute for a TWIC card.)
TONUShort for Truck Order Not Used — if a broker books a truck on a load and that load gets canceled after the truck is already at the shipper, the customer needs to pay some form of compensation. TONU's typically vary from $150 to $250 depending on the customer.
WaybillA document issued by a carrier giving details and instructions relating to the shipment of a consignment of goods — consignor, consignee, origin, destination, and route.
Shotgun LoadWhen the coil is vertical on pallets — standing at the back of the trailer, you could look through the center of all the coils all the way down to the cab, almost like looking down the barrel of a shotgun.
Suicide LoadWhen the coil is horizontally chained down, so you would not be able to see through the coils. If not secured properly, the coil could roll forward and crush the cab of the truck — aka a "loaded suicide."
PillarizationSystem for shipping goods on lightweight, double-decked wooden platforms called pallets.
Step Deck (48ft or 53ft)Uses a two-tiered drop on the trailer to haul cargo — an upper deck and a lower deck, like a step on stairs. (Post on DAT as 48ft always.)
Flat Bed (48ft or 53ft)A piece of equipment with a flattened hauling surface that can be loaded from the top, from both sides, and the rear. (Post on DAT as 48ft always.)
Conestoga (48ft or 53ft)More specialized than a generic flatbed — has a retractable tarping system that covers the entire length of the flatbed or trailer deck. (Post on DAT as 48ft always.)
Dry Van (53ft)A box-design trailer, fully enclosed and cut off from outside elements. Two types: Food Grade Trailers (up to code for produce with no cross-contamination) and Non-Food Grade Trailers (freight that doesn't need that level of monitoring, like pine straw or car tires).
Reefer (53ft)Slang term for a refrigerated trailer, used to haul freight that needs to be stored at low temperatures.
Box TruckComes in several sizes: 16ft, 18ft, 20ft, 24ft, and 26ft. A box truck driver does not need a CDL. Used to haul LTL loads — a smaller version of the 53ft dry van, but fully connected with no separation point between the power unit and the load area.
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