87 terms
A
Accessorial charges are fees added to a freight invoice beyond the base rate for additional services or circumstances outside of standard pickup and delivery, including detention, fuel surcharge, liftgate, inside delivery, and residential delivery.
Axle weight is the total load transmitted to the road through a single axle or tandem axle group. Federal law limits single axles to 20,000 lbs and tandem axles to 34,000 lbs, and states may impose stricter limits.
B
A backhaul is a return load that a driver picks up after making a delivery, allowing them to earn revenue on what would otherwise be an empty repositioning run. Backhaul rates are typically lower than primary lane rates.
The break-even rate is the minimum rate per mile a carrier must charge to cover all operating costs without making a profit or loss. Any rate above break-even generates net income.
A Bill of Lading (BOL or B/L) is a legal document issued by a carrier to a shipper that serves as a receipt for cargo, a contract of carriage, and a document of title. The BOL must accompany every shipment.
A freight broker is a licensed intermediary that connects shippers who need to move freight with carriers who have available capacity. Brokers earn a commission (the spread between what shippers pay and what carriers receive).
A bobtail refers to a semi-truck tractor driving without a trailer attached. Drivers bobtail when repositioning to a pickup location, returning to their home terminal, or moving between facilities without a load.
A broker fee (or broker commission) is the margin a freight broker keeps between what a shipper pays to move freight and what the carrier receives for hauling it. The typical broker margin is 15–25% of the shipper's total rate.
Bobtail insurance (also called non-trucking liability) covers a semi-truck when it is being driven without a trailer and outside of active dispatch — such as driving home after a delivery or repositioning to a pickup. It fills the gap that primary insurance does not cover.
The Federal Bridge Formula (also called Bridge Formula B) is a federal regulation that limits the weight a commercial vehicle can carry based on the number of axles and the distance between them, to prevent damage to bridges and road infrastructure.
C
Cost per mile (CPM) is the total operating cost divided by total miles driven in a given period. It includes both fixed costs (insurance, truck payment) and variable costs (fuel, maintenance) per mile.
A Commercial Driver's License (CDL) is a specialized license required to operate large commercial vehicles including semi-trucks, buses, and tankers. CDL classes are A, B, and C depending on vehicle type and weight.
In trucking, a carrier is the licensed motor carrier (company or owner-operator) that physically transports freight using its own equipment under its own DOT/MC authority.
A contract rate is a pre-negotiated, fixed rate per mile agreed upon between a shipper and carrier for freight movement over a defined period, typically 6–12 months. Contract rates provide revenue predictability for carriers and capacity reliability for shippers.
A carrier packet is a set of documents that brokers and shippers require from carriers before they can book a load together. It typically includes the carrier's MC/DOT numbers, W-9, certificate of insurance, and signed broker-carrier agreement.
A CSA (Compliance, Safety, Accountability) score is an FMCSA safety measurement system that grades carriers and drivers across seven categories called BASICs based on roadside inspection data, violation history, and crash reports. Higher scores indicate more safety risk.
Cargo insurance (also called motor truck cargo insurance) covers the freight a carrier is transporting in the event of theft, damage, or loss during transit. FMCSA requires a minimum of $5,000–$10,000 cargo coverage, though brokers commonly require $100,000.
Cube out occurs when a trailer reaches its dimensional capacity — the available space is filled — before reaching its maximum weight limit. This is common with light, bulky freight like furniture, snack foods, or bedding.
D
Deadhead miles are miles driven without cargo — empty miles between a delivery drop-off and the next pickup. Deadhead reduces a driver's effective rate per mile and directly cuts into profit.
Detention pay is compensation for time spent waiting at a shipper or receiver beyond the agreed free time, typically 2 hours. Standard detention rates range from $50–$100/hour.
Drop and hook (D&H) is a freight arrangement where a driver drops an empty or loaded trailer at a facility and picks up a pre-loaded trailer, eliminating wait time at the dock.
A USDOT number is a unique identifier issued by the FMCSA to commercial motor vehicles operating in interstate commerce. It is used to track a carrier's safety information, inspections, crashes, and audits.
Drayage is the short-distance transport of freight, typically from a port, rail terminal, or intermodal facility to a nearby warehouse or distribution center. Drayage carriers specialize in short hauls within 50–150 miles of major freight hubs.
A truck dispatch service finds loads for owner-operators in exchange for a percentage of gross revenue, typically 5–10% per load. Dispatchers handle broker negotiations, documentation, and load planning so drivers can focus on driving.
A drop trailer program is an arrangement where a carrier leaves a trailer at a shipper's facility to be loaded at the shipper's convenience, then returns to pick it up loaded. It is similar to drop and hook but from the carrier's perspective of managing trailer assets.
Detention pay is compensation for time spent waiting at a shipper or receiver beyond the agreed free time, typically 2 hours after appointment time. Standard rates range from $50–$100/hour and must be negotiated into the rate confirmation.
A dispatch fee is the amount charged by a truck dispatch service for finding and booking loads on behalf of an owner-operator. Dispatch fees are typically calculated as 5–10% of gross load revenue per load dispatched.
A DVIR (Driver Vehicle Inspection Report) is a mandatory federal form that commercial drivers must complete after each driving day to document the condition of their vehicle, noting any defects found during pre-trip or post-trip inspections.
A DOT physical (Department of Transportation medical examination) is a mandatory health evaluation required for all commercial motor vehicle drivers. It must be performed by an FMCSA-certified medical examiner and renewed every 24 months (or annually for drivers with certain conditions).
A doubles/triples endorsement (T endorsement) on a CDL authorizes a driver to pull two or three trailers simultaneously. It is required to operate any combination vehicle with more than one trailer, including twin 28-foot pup trailers common in regional LTL operations.
A dock plate (or dock leveler) is a bridge that spans the gap between a truck trailer deck and a loading dock platform, allowing forklifts and pallet jacks to move freight smoothly between the two surfaces.
E
An Electronic Logging Device (ELD) is a device connected to a commercial vehicle's engine that automatically records driving time and Hours of Service data, replacing paper logbooks. ELDs became mandatory for most interstate commercial carriers in December 2017.
In trucking, an escrow account is a reserve fund held by a carrier on behalf of a leased owner-operator. It is funded by deductions from the driver's weekly settlements and is used to cover expenses like repairs, permits, or end-of-lease obligations.
F
Freight factoring is a financial service where a carrier sells its unpaid invoices to a factoring company at a discount (typically 2–5%) in exchange for immediate payment — usually within 24 hours rather than the standard 30–45 day broker payment cycle.
The Federal Motor Carrier Safety Administration (FMCSA) is the U.S. government agency that regulates commercial motor vehicles. It oversees driver licensing, vehicle safety standards, Hours of Service rules, and carrier authority.
FTL (Full Truckload) is a freight shipping method where a single shipper's goods fill an entire trailer. The shipper pays for exclusive use of the truck, and freight moves directly from origin to destination without intermediate stops.
Freight class is a standardized classification system defined by the NMFTA (National Motor Freight Traffic Association) that categorizes LTL freight into 18 classes (50–500) based primarily on density, handling, stowability, and liability.
A fuel surcharge (FSC) is a variable fee added to a freight rate to compensate carriers for fluctuations in diesel fuel prices above a baseline level. It is calculated as a percentage of the line haul revenue, based on the current DOE national diesel price.
G
Gross revenue in trucking is the total amount a carrier invoices for transportation services before deducting any expenses, including linehaul, fuel surcharge, detention, and other accessorials.
GVWR (Gross Vehicle Weight Rating) is the maximum safe operating weight of a single vehicle as specified by the manufacturer, including the vehicle itself and its maximum cargo load. For combination vehicles (truck + trailer), the combined GVWR is called the Gross Combination Weight Rating (GCWR).
H
Hours of Service (HOS) are FMCSA regulations that limit how long commercial drivers can drive and be on duty to prevent fatigued driving. Key limits: 11 hours driving, 14-hour on-duty window, 30-minute break after 8 hours, 60/70-hour cycle.
A HazMat endorsement (H endorsement) is an additional certification added to a CDL that allows a driver to transport hazardous materials as defined by DOT regulations. It requires a TSA background check and knowledge test, and must be renewed every 5 years.
I
IFTA is a multi-jurisdictional fuel tax agreement between US states and Canadian provinces that simplifies the reporting and payment of fuel taxes for carriers operating in multiple jurisdictions.
Intermodal freight is cargo transported in a standardized container that moves between two or more modes of transportation (truck, rail, ship) without being unloaded and reloaded between transfers.
L
A lumper is a third-party labor worker hired to unload freight at a distribution center or warehouse. Lumper fees are typically $50–$200 and are often paid by the carrier and then billed back to the shipper or broker.
LTL (Less Than Truckload) is a freight shipping method where multiple shippers share space on the same truck, each paying for only the portion of the trailer they use. LTL is used for shipments too large for parcel carriers but too small to fill a full trailer.
A load board is an online marketplace where freight brokers and shippers post available loads, and carriers search for freight that matches their equipment and preferred lanes. Major load boards include DAT and Truckstop.com.
A live load or live unload is a freight appointment where the driver must wait on-site while the freight is loaded or unloaded, as opposed to a drop and hook arrangement. Wait times of 1–4 hours are common at busy distribution centers.
Layover pay is compensation a carrier receives when a driver is forced to sit idle at a location overnight or for an extended period due to shipper or receiver delays, weekend holds, or scheduling gaps between loads. Rates typically range from $100–$300 per day.
Linehaul refers to the base transportation charge for moving freight from origin to destination, excluding accessorial charges. It is the core revenue component of any trucking invoice, calculated as rate per mile times total loaded miles.
A lease-purchase agreement is a contract where a driver leases a truck from a carrier with the option to purchase it at the end of the lease term. Weekly payments are made from the driver's earnings, and the balance can be applied toward ownership.
Liability insurance in trucking covers bodily injury and property damage caused by the carrier's vehicle to third parties. FMCSA requires a minimum of $750,000 in liability coverage for general freight carriers in interstate commerce.
A liftgate is a powered platform mounted on the rear of a trailer that can be raised and lowered to transfer freight between ground level and trailer deck height. Liftgate service is required for deliveries where no loading dock is available.
A load lock (or load bar, logistics bar, or cargo bar) is an extendable metal bar that wedges between the walls of a trailer to prevent freight from shifting forward, backward, or sideways during transport. They are essential cargo securement tools.
M
An MC (Motor Carrier) number is an operating authority number issued by FMCSA that allows a carrier to transport regulated commodities for hire in interstate commerce. Required in addition to a DOT number for for-hire carriers.
A multi-stop load is a freight shipment that requires the driver to make two or more delivery stops at different locations before completing the load. Each additional stop beyond the first typically earns a stop-off charge of $50–$150.
N
The NMFC is a product-classification system maintained by the NMFTA that assigns freight classes to thousands of commodities for use in LTL pricing. It is the industry standard for determining how freight is categorized and rated.
Net revenue (also called net income or take-home pay) in trucking is gross revenue minus all operating expenses, including fuel, insurance, truck payments, maintenance, taxes, and fees. It represents what the owner-operator actually earns.
O
Operating ratio is total operating expenses divided by gross revenue, expressed as a percentage. A ratio of 85% means $0.85 of every dollar earned goes to expenses, leaving a 15% profit margin.
An owner-operator is a truck driver who owns and operates their own commercial truck, running freight either independently (with their own authority) or leased onto a motor carrier.
Operating authority is the legal permission granted by FMCSA that allows a carrier to transport regulated freight for hire in interstate commerce. It is represented by the MC number and requires insurance, a BOC-3 filing, and a waiting period before it becomes active.
An oversize or overweight (OS/OW) permit is a state-issued authorization that allows a vehicle to operate above standard size or weight limits. Permits are required when loads exceed 8.5 feet wide, 13.5 feet tall, 53 feet long, or 80,000 lbs gross.
P
Power only hauling means a driver provides only the tractor (the power unit) to move a trailer that is owned by a shipper, carrier, or leasing company. The driver does not own or manage the trailer.
Pay per mile is a compensation model used by trucking companies where drivers are paid a set rate for every mile driven, typically ranging from $0.55–$0.75/mile for company drivers. Owner-operators earn gross revenue per mile and cover their own expenses.
Percentage pay is a driver compensation model where the driver earns a percentage of the gross revenue from each load, typically 25–30% for company drivers or 88–95% for leased owner-operators. It ties driver income directly to the load rate.
A pre-trip inspection is a mandatory walk-around inspection a commercial driver must complete before operating a vehicle. FMCSA requires drivers to inspect key components including brakes, lights, tires, steering, and mirrors and to certify the vehicle is in safe operating condition.
A post-trip inspection is a mandatory inspection completed at the end of each driving shift where the driver checks the vehicle for any defects or damage that occurred during the trip and documents findings on a Driver Vehicle Inspection Report (DVIR).
Primary liability insurance is the foundational commercial auto liability policy required by FMCSA for carriers operating in interstate commerce. It covers bodily injury and property damage when the truck is under dispatch and actively engaged in commerce.
Physical damage insurance covers the repair or replacement of a carrier's own truck and trailer in the event of a collision, rollover, fire, theft, or vandalism. It is not required by FMCSA but is typically required by lenders financing the truck.
A pilot car (also called an escort vehicle) is a vehicle that travels ahead of or behind an oversize load to warn other motorists, verify clearances, and comply with state permit requirements. Most states require pilot cars for loads exceeding 14 feet wide or specific length thresholds.
A pallet jack (also called a pallet truck) is a manual or powered tool used to move palletized freight on smooth surfaces. Manual pallet jacks are standard tools many drivers carry; electric powered pallet jacks are typically found in warehouse operations.
Palletization is the process of stacking and securing freight onto pallets for efficient handling, transport, and storage. Properly palletized freight protects cargo integrity, facilitates forklift handling, and can affect freight class determination in LTL shipping.
Q
R
Rate per mile (RPM) is the gross revenue a carrier earns per mile driven. It is calculated by dividing the total load rate by total miles (loaded + deadhead) and is the most common profitability metric in trucking.
A rate confirmation (rate con) is a document issued by a broker to a carrier that outlines the terms of a load: pickup and delivery locations, freight description, rate, accessorial rates (detention, TONU), and payment terms.
S
A shipper is a company or individual that has goods to be transported and contracts with a carrier or freight broker to move their freight. Shippers are the source of all freight in the supply chain.
A spot rate is a one-time market price for moving a specific load, negotiated at the current moment based on supply and demand. Spot rates fluctuate daily and represent the transactional freight market as opposed to long-term contract rates.
A scale ticket is a printed receipt from a certified commercial scale showing the date, time, truck identification, and recorded gross and axle weights. Scale tickets are used to document legal compliance with weight limits before entering a weigh station.
Shrink wrap (stretch wrap) is a thick plastic film wound around palletized freight to stabilize and secure it during transport. Properly applied shrink wrap prevents freight from shifting, protects against moisture and dust, and is a basic requirement for most LTL shipments.
Cargo straps (tie-down straps) and chains are securement devices used on flatbed, step-deck, and open-deck trailers to anchor freight directly to the trailer. FMCSA cargo securement standards specify the number, rating, and placement required based on freight weight and type.
T
TONU is a fee paid to a carrier when a shipper cancels or fails to tender freight after a truck has been dispatched and arrives at the pickup location. It compensates the driver for time and fuel wasted.
Truck payment refers to the monthly loan or lease payment on a commercial truck. For owner-operators, this is typically the second-largest fixed expense after fuel, ranging from $1,200–$4,000/month depending on truck value, down payment, and loan term.
A tanker endorsement (N endorsement) is added to a CDL and authorizes drivers to operate tank vehicles transporting liquids or gases. Any vehicle with a tank capacity over 119 gallons that is used to transport liquids or gases requires this endorsement.
A TWIC (Transportation Worker Identification Credential) card is a federal identification card issued by the TSA that grants workers unescorted access to secure areas of maritime facilities, ports, and outer continental shelf facilities. It is required for truck drivers making port deliveries.
Tarping refers to covering flatbed or open-deck freight with heavy canvas tarps to protect it from weather and road debris. A tarping fee is an accessorial charge of $50–$300 that compensates drivers for the labor of applying, securing, and removing tarps.
W
A weigh station is a roadside facility operated by state departments of transportation where commercial vehicles are required to stop for weight and safety inspection. They verify that trucks comply with federal and state axle weight limits and safety regulations.
Weight out occurs when a shipment reaches the maximum legal weight limit of the vehicle before filling the available trailer space. This is common with dense freight like steel, concrete products, or machinery.