Industry Glossary

Additional fees beyond the base freight rate for extra services such as liftgate usage, inside delivery, residential delivery, reclassification, and redelivery.

A legally binding document between a shipper and carrier that details the type, quantity, and destination of goods being transported. It serves as a receipt of freight services, a contract of carriage, and a document of title.

A return load that a carrier picks up near their delivery destination to minimize empty miles on the return trip. Backhauls are often priced lower than headhaul rates due to reduced demand.

A pre-negotiated freight rate established between a shipper and carrier/broker for a specific lane over a defined period (typically annual or quarterly). Provides rate stability and capacity commitment.

An FMCSA-assigned rating (Satisfactory, Conditional, Unsatisfactory, or Not Rated) based on a carrier's compliance history, crash data, and inspection results. Shippers should verify ratings before tendering loads.

Compliance, Safety, Accountability score from FMCSA that measures carrier safety performance across seven Behavioral Analysis and Safety Improvement Categories (BASICs). Lower scores are better.

The total operating cost divided by total miles driven, including fuel, maintenance, insurance, driver pay, and overhead. Essential for pricing decisions and profitability analysis.

A logistics practice where incoming freight is unloaded from one vehicle and directly loaded onto outbound vehicles with minimal storage time. Reduces warehousing costs and speeds delivery.

A licensed professional who prepares and submits documentation to clear goods through customs on behalf of importers and exporters. Ensures compliance with trade regulations and tariff classifications.

The distance a truck travels without carrying any cargo, typically after delivering a load and before picking up the next one. Empty miles represent lost revenue and increased fuel costs.

Charges applied when a truck is held at a shipper or receiver facility beyond the agreed "free time" (typically 2 hours). Detention compensates the carrier for lost productivity.

The total time a truck spends at a facility from arrival to departure, including loading, unloading, and waiting. Excessive dwell time reduces asset utilization and driver satisfaction.

A method where a driver drops off a loaded trailer and immediately hooks to a pre-loaded trailer, eliminating wait time. Requires shipper facilities to maintain a pool of empty trailers.

Short-distance trucking that moves containers between ports, rail yards, and warehouses. Typically within a 50-100 mile radius of an intermodal facility.

A charge applied when a container or vessel is not moved within the allowed free time at a port or terminal. Compensates the terminal operator for extended use of their equipment or space.

A digital device that automatically records a driver's driving time and duty status. ELDs are federally mandated for most commercial motor vehicles to ensure HOS compliance.

An intermediary who connects shippers with carriers to arrange transportation of goods. Brokers do not take possession of the freight but earn a commission or margin on each load they broker.

An additional fee added to freight rates to account for fluctuations in fuel prices. The surcharge is typically calculated based on the DOE National Average Diesel Price and a base fuel price agreed in the contract.

A shipping mode where one shipper books the entire capacity of a truck trailer (typically 48' or 53'). The truck travels directly from origin to destination without intermediate stops.

A standardized classification system (NMFC) used for LTL shipments, ranging from Class 50 (dense, easy-to-handle freight) to Class 500 (light, bulky, fragile items). Higher classes mean higher rates.

A formal request for compensation when freight is damaged, lost, or delayed during transit. Claims must be filed within a specific timeframe and supported by documentation.

A higher-level logistics provider that manages and integrates the entire supply chain, including multiple 3PLs, carriers, and technology systems. Acts as a strategic supply chain partner.

An agent who organizes shipments for individuals or corporations to get goods from the manufacturer or producer to a market, customer, or final point of distribution. Specializes in international logistics.

Full Container Load — when a shipper books an entire shipping container (20', 40', or 45') for their exclusive use. More cost-effective than LCL for larger volumes and offers better cargo security.

FMCSA regulations that limit the number of hours a commercial driver can operate. Key rules include the 11-hour driving limit, 14-hour on-duty limit, and 70-hour/8-day cycle limit.

Harmonized Tariff Schedule code — a 10-digit classification number used to identify imported goods for customs purposes. Determines duty rates, trade statistics, and eligibility for free trade agreements.

Transportation using multiple modes (typically truck and rail) in a single shipment. Containers are transferred between modes without handling the freight itself, reducing cost for long distances.

International Commercial Terms — standardized trade terms published by the International Chamber of Commerce that define the responsibilities of buyers and sellers in international transactions.

An inventory management strategy where materials and goods arrive exactly when needed in the production or distribution process. Minimizes storage costs but requires precise scheduling.

A shipping mode where multiple shippers share space on a single truck. Each shipper pays only for the portion of the trailer their freight occupies. Ideal for shipments between 150 and 15,000 pounds.

An online marketplace where freight brokers post available loads and carriers search for freight to haul. Modern load boards include features like credit checks, rate analysis, and document management.

Less than Container Load — when a shipper's cargo does not fill an entire container and shares space with other shippers' goods. Priced by volume (CBM) or weight, whichever is greater.

Non-Vessel Operating Common Carrier — a company that provides ocean freight services without operating its own vessels. NVOCCs consolidate smaller shipments (LCL) into full container loads (FCL).

A financial metric calculated as operating expenses divided by operating revenue, expressed as a percentage. An OR below 100% indicates profitability; lower is better.

A document or electronic record confirming that a shipment was delivered to the correct recipient in acceptable condition. PODs typically include the recipient's signature, date, and time.

A daily charge for using a shipping container beyond the agreed free time, typically applied after the container leaves the port. Distinct from demurrage, which applies while the container is at the terminal.

A key performance indicator calculated by dividing total revenue by total miles driven. Used to assess pricing power, lane profitability, and overall business health.

The market for one-time, non-contract freight shipments where rates are negotiated on a per-load basis. Spot market rates fluctuate based on supply (available trucks) and demand (available loads).

The percentage of load tenders (offers) that a carrier accepts. A high acceptance rate indicates strong carrier relationships and competitive rates. Industry average is 70-80%.

A company that provides outsourced logistics services including transportation, warehousing, inventory management, and freight forwarding. 3PLs manage logistics on behalf of shippers.