Glossary
Plain-English definitions of the logistics, trucking, and compliance terms that come up most — for carriers and owner-operators alike.
3
- 3PL (Third-Party Logistics)
- A company that handles outsourced logistics services such as warehousing, transportation management, fulfillment, or freight brokerage on behalf of a shipper.
A
- Accessorial Charges
- Extra fees beyond the line-haul rate for added services such as detention, liftgate, layover, lumper, or limited-access delivery.
- Authority (Operating Authority)
- FMCSA permission to operate as a for-hire motor carrier, identified by an MC number. Required for most interstate for-hire carriage of regulated commodities.
B
- Backhaul
- A load picked up for the return leg of a trip to avoid running empty (deadhead) back to a carrier's home base.
- BASIC
- Behavior Analysis and Safety Improvement Category — one of the seven categories FMCSA's Safety Measurement System uses to score carrier safety (e.g., Unsafe Driving, HOS, Vehicle Maintenance, Crash Indicator).
- Bill of Lading (BOL)
- The legal document between a shipper and carrier detailing the goods, quantities, and destination. It serves as a receipt, a contract of carriage, and a document of title.
- Bobtail
- Driving a semi-truck tractor without a trailer attached.
- BOC-3
- A federal filing that designates a process agent in each state where a carrier or broker operates. Required before the FMCSA grants operating authority.
- Broker (Freight Broker)
- A licensed intermediary that arranges transportation between shippers and carriers without taking possession of the freight.
C
- Cabotage
- Rules restricting a carrier domiciled in one country from hauling domestic freight within another country.
- CDL (Commercial Driver's License)
- The license required to operate commercial motor vehicles above defined weight thresholds, with classes A, B, and C and endorsements for specialized cargo.
- Clearinghouse
- FMCSA's Drug and Alcohol Clearinghouse — a database of CDL driver drug and alcohol program violations. Employers must run queries before hiring and annually.
- Cold Chain
- A temperature-controlled supply chain for perishable or sensitive goods (food, pharmaceuticals, specimens), governed in part by the FDA's FSMA Sanitary Transportation rule.
- Cost Per Mile (CPM)
- Total operating cost divided by miles driven. The fundamental profitability metric for owner-operators, combining fixed and variable costs.
- CSA
- Compliance, Safety, Accountability — FMCSA's safety program that scores carriers using roadside inspection and crash data through the Safety Measurement System.
D
- DataQs
- FMCSA's system for requesting review of incorrect roadside inspection or crash data that may be inflating a carrier's CSA scores.
- Deadhead
- Miles driven with an empty trailer, typically between a delivery and the next pickup. Deadhead miles cost money without generating revenue.
- Dedicated Freight
- A contracted, recurring lane or set of lanes a carrier runs for a specific shipper, offering more predictable volume and rates than the spot market.
- Demurrage
- A charge assessed when a container or trailer is held beyond the allotted free time at a port, rail yard, or facility.
- Detention
- Time a driver waits at a shipper or receiver beyond the agreed free window. Carriers may bill detention pay for the delay.
- Dispatcher
- The person who coordinates loads, routes, and communication between drivers, brokers, and shippers.
- DOT Number (USDOT Number)
- A unique identifier the U.S. Department of Transportation assigns to carriers for safety tracking, inspections, audits, and registration.
- DOT Physical
- The medical examination, performed by a certified examiner on FMCSA's National Registry, that a commercial driver must pass to receive a medical certificate.
- Drayage
- Short-distance trucking that moves containers between ports, rail yards, and nearby facilities.
- Driver Qualification (DQ) File
- The set of records (application, MVR, medical card, road test, annual review, Clearinghouse query) a carrier must keep for each driver under 49 CFR 391.
- Dunnage
- Material used to secure and protect freight in a trailer or container, such as airbags, straps, and bracing.
E
- ELD (Electronic Logging Device)
- Hardware that automatically records a driver's Hours of Service. It must be registered on FMCSA's approved list to be compliant.
- ELP (English Language Proficiency)
- The federal requirement that drivers read and speak English well enough to follow signs, respond to officials, and complete reports. Failure is an out-of-service violation.
F
- Factoring
- Selling unpaid freight invoices to a factoring company for immediate cash (minus a fee), a common cash-flow tool for owner-operators.
- Final Mile (Last Mile)
- The final leg of delivery from a local hub to the end customer's door — often non-CDL work using vans or box trucks.
- FMCSA
- Federal Motor Carrier Safety Administration — the agency that regulates commercial motor vehicle safety, authority, and compliance.
- Freight Class (NMFC)
- A standardized classification (1–18 classes) that rates LTL freight by density, handling, stowability, and liability to set pricing.
- FTL (Full Truckload)
- A shipment that fills, or is billed as, an entire trailer dedicated to one customer.
G
- GVWR (Gross Vehicle Weight Rating)
- The maximum operating weight of a vehicle, including the truck, fuel, and cargo, as specified by the manufacturer.
H
- HOS (Hours of Service)
- Federal limits on driving and on-duty time (e.g., 11-hour driving limit within a 14-hour window, 30-minute break, 60/70-hour weekly limits).
- Hotshot
- Expedited hauling of smaller, time-sensitive loads, usually with a medium-duty pickup and a gooseneck or flatbed trailer.
- HVUT (Form 2290)
- Heavy Vehicle Use Tax — an annual federal tax filed on IRS Form 2290 for vehicles weighing 55,000 pounds or more, due by August 31 for the July–June period.
I
- IFTA
- International Fuel Tax Agreement — a quarterly fuel-tax reporting system that distributes fuel taxes among the states and provinces a carrier travels through.
- Intermodal
- Freight moved using two or more modes (truck, rail, ship) in the same container without handling the goods themselves when changing modes.
L
- Layover
- Pay or a charge for the time a driver is delayed overnight or longer while waiting to load or unload.
- Logbook (RODS)
- The Record of Duty Status a driver must maintain to document Hours of Service, today kept electronically via an ELD.
- LTL (Less Than Truckload)
- Shipping that consolidates multiple smaller shipments from different customers into one trailer.
- Lumper
- A third-party worker hired to load or unload freight at a warehouse, often paid by the carrier or driver and reimbursed by the broker or shipper.
M
- MC Number
- Motor Carrier number — the FMCSA identifier tied to a carrier's interstate operating authority.
- MCS-150
- The form carriers file to obtain a USDOT number and to update their information through the required biennial update.
N
- New Entrant Safety Audit
- An FMCSA review of a new carrier's safety management systems, generally within the first 12 months of operation.
O
- Owner-Operator
- An independent driver who owns or leases their truck and operates as a small business, either under their own authority or leased to a carrier.
P
- Per Diem
- A daily allowance for meals and incidental expenses while away from home that drivers may deduct, subject to IRS rules.
- PSP (Pre-Employment Screening Program)
- An FMCSA report of a driver's roadside inspection and crash history that carriers use during hiring.
R
- Reefer
- A refrigerated trailer (or the freight that requires one) used to haul temperature-controlled goods.
S
- Sleeper Berth
- The bunk compartment of a truck where drivers rest. Sleeper-berth provisions allow splitting required off-duty time under HOS rules.
- Spot Rate vs. Contract Rate
- A spot rate is a one-time market price for an immediate load; a contract rate is a negotiated price locked in over a defined period or lane.
T
- Tandem Axle
- Two axles positioned close together to share a load and distribute weight, common on trailers and tractors.
- Tare Weight
- The weight of an empty vehicle or container before any cargo is loaded; gross weight minus tare equals net cargo weight.
- TMS (Transportation Management System)
- Software that plans, executes, and optimizes the movement of freight, including routing, carrier selection, and tracking.
- TONU (Truck Order Not Used)
- A fee paid to a carrier when a shipper cancels a load after the truck has already been dispatched.
- Transload
- Transferring freight from one mode or trailer to another (for example, rail to truck) during its journey.
- Triplicate / Proof of Delivery (POD)
- Signed documentation confirming a shipment was delivered, used to release payment and resolve claims.
U
- UCR (Unified Carrier Registration)
- An annual federal registration and fee, based on fleet size, required of carriers and brokers operating in interstate commerce.
W
- WMS (Warehouse Management System)
- Software that manages and optimizes warehouse operations such as inventory, receiving, picking, and shipping.
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