Your Guide to Freight Industry Terms

Navigating the freight world means juggling clients, freight, routes, and deadlines. All of these factors move fast, so you need to be able to communicate effectively without losing time. If you’re managing a fleet or booking your next load, knowing the lingo can make all the difference in your success. We’ve put together a glossary of freight acronyms and trucking terminology to help you easily tackle the industry. 

A

• Accessorials: Fees added to a freight bill for extra services. Shippers and carriers might add fees for inside delivery or residential drop-offs. Make sure to track accessorials to avoid losing profits. 
• Agent: Shipping agents do business on behalf of your company. They can supervise shippers’ insurance, customs operations, or documentation.  
• Attempted pickup: Attempted pickups happen when carriers try to pick up freight, but the freight is not there. Carriers might charge for attempted pickups. 
• Audit: Transportation departments perform audits to ensure your operation is compliant with safety regulations. They will review driver hours, maintenance, and other critical records. If an operation fails an audit, it can face fines and penalties. 
• Authority: An operating authority or motor carrier authority has federal permission to operate as a motor carrier. Without authority status, you cannot haul freight for hire. 

B

• Backhaul: A return trip with a freight load. Instead of driving back from a delivery with an empty load, trucks pick up freight to increase profits. 
• Bill of lading (BOL):A key phrase in freight broker terminology, a BOL is a legal document issued by the shipper. It contains all the shipment details, including what’s being shipped, who’s involved, and where it’s going.It’s a receipt and record of ownership that protects everyone from delivery mixups. 
• Broker: A licensed role. Brokers connect shippers with carriers to move freight. Brokers don’t haul freight, but they help find and match demand for the industry. 

C

• Cargo insurance: Coverage that protects freight from theft, damage, or loss. Carriers are legally required to have liability coverage, but cargo insurance fills any remaining gaps. 
• Carrier: The company or individual who transports freight. Private carriers haul their own goods, while for-hire carriers move freight for others. 
• Consignee: The company or person receiving the shipment. The BOL names the consignee, and they’re responsible for unloading the freight at its final destination. 

D

• Deadhead: Driving with an empty trailer. Deadhead miles use fuel but don’t bring in any profit. It’s essential to minimize deadhead to boost profits. 
• Department of Transportation (DOT): The United States federal agency responsible for overseeing all transportation in the country. 
• Detention: When drivers are held up at a receiver or shipper longer than the agreed-upon time. Carriers can charge detention fees to make up for this lost time and money. 
• Dispatcher: Dispatchers coordinate freight movement between shippers, carriers, and drivers. They assign loads, plan routes, and make adjustments as needed. 
• Drayage: Short-distance freight movement. Drayage is commonly freight moved from rail yards or ports to close distribution centers or warehouses. 

E

• Electronic logging device (ELD): A device that automatically records a driver’s hours of service (HOS), vehicle movement, and engine data. ELDs keep carriers regulation-compliant. 
• Estimated time of arrival (ETA): The time when a vehicle is expected to arrive at a certain place.  

F

• Factoring: Financial services that let carriers and owner-operators get paid faster. Unpaid freight invoices are sold to the factoring company. Instead of waiting weeks to get paid, factoring speeds up the process. 
• Federal Motor Carrier Safety Administration (FMCSA): Regulates the U.S. trucking industry. All safety standards, compliance enforcement, and operating authority issuances are run through the FMCSA. 
• Freight class: A classification system that makes determining shipping costs easy. The system uses weight, handling, density, and liability to set fair prices. 
• Freight forwarder: A third party that organizes shipments for businesses. They handle paperwork, consolidate loads, and arrange intermodal transfers. 
• Fuel surcharge (FSC): A fee added to freight rates to reduce the impact of changing fuel costs for freight. FSCs will have a base rate plus adjustments based on national fuel averages. 

H

• Hazmat: Hazardous materials. These substances are toxic, flammable, or dangerous. Transporting hazmat means investing in special equipment, training, and support. Carriers must be compliant with regulations. 
• Hot shot: Hot shot trucking is a smaller freight industry used for quick loads. Medium-duty trucks with flatbed trailers will haul local or time-sensitive deliveries.  

I

• Intermodal: Shipping that combines multiple transportation modes. It’s common to use a combination of rail, trucks, planes, or ships to move freight. 
• Interstate: Shipments that travel between different states. 
• Intrastate: Shipments that travel within one state.  

J

• Just-in-time (JIT): A strategy designed to reduce over- or understocking. Freight is delivered just before it’s needed, reducing waste and controlling inventory levels. 

L

• Last-mile delivery: The last section of delivery. Goods are moved from the distribution center to the end customer. It’s one of the most expensive and challenging parts of the shipping process. 
• Less-than-truckload (LTL): Not all freight shipments fill a full trailer. When this happens, multiple shipments are combined into one load to reduce costs. 
• Load board: A digital platform that lets shippers and brokers post freight. Carriers can easily find loads, vet brokers, and analyze rates from one platform. 

M

• Motor carrier (MC) number: The identifier assigned to a carrier or broker by the FMCSA upon receiving operating authority.  

O

• Oversized load: Items that need extra space during transport. They might be heavy, large, or unusually shaped, which increases the cost of moving them. 
• Owner-operator: A truck driver who owns and operates their own truck. These self-employed groups control their schedules but take on more risk and responsibility than business employees. 

P

• Proof-of-delivery (POD): A document that proves freight was delivered. The receiver signs the POD. This helps with invoicing and resolving disputes. 

R

• Reefer: A refrigerated trailer. Reefers are used to transport temperature-sensitive goods. 

S

• Shipper: The business or person responsible for arranging the freight shipment. Shippers are manufacturers, retailers, and other companies that need their goods moved. 

T

• Transportation management system (TMS): A TMS is a platform that simplifies shipping operations. The system deals with load planning, invoicing, dispatching, and tracking. 
• Trucks ordered, not used (TONU): Carriers will charge a TONU fee if the shipper cancels on them late. 
• Truckload: A truck filled to capacity with freight. Truckload freight is one shipment that moves to the final drop-off location without transfers, like an LTL shipment might. 

W

• Weigh station: Checkpoints that weigh commercial vehicles and inspect them for safety concerns.  

Stay in the loop with Truckstop

Once you’ve got the freight industry terms down, it’s time to find loads. Whether you’re a shipper, broker, or carrier, the Truckstop Load Board has everything you need to get freight moving. Our solution connects you to industry professionals, provides accurate rate data, and even offers carrier safety information. Fit the loads to your business and stay profitable. Get started with an industry-leading load board and request a demo online!